§ 906. — General and special sequestration rules.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 2USC906]
TITLE 2--THE CONGRESS
CHAPTER 20--EMERGENCY POWERS TO ELIMINATE BUDGET DEFICITS
SUBCHAPTER I--ELIMINATION OF DEFICITS IN EXCESS OF MAXIMUM DEFICIT
AMOUNT
Sec. 906. General and special sequestration rules
(a) Automatic spending increases
Automatic spending increases are increases in outlays due to changes
in indexes in the following programs:
(1) Special milk program; and
(2) Vocational rehabilitation basic State grants.
In those programs all amounts other than the automatic spending
increases shall be exempt from reduction under any order issued under
this subchapter.
(b) Student loans
For all student loans under part B or D of title IV of the Higher
Education Act of 1965 [20 U.S.C. 1071 et seq., 1087a et seq.] made
during the period when a sequestration order under section 904 of this
title is in effect as required by section 902 or 903 of this title,
origination fees under sections 438(c)(2) and 455(c) of that Act [20
U.S.C. 1087-1(c)(2), 1087e(c)] shall each be increased by 0.50
percentage point.
(c) Treatment of foster care and adoption assistance programs
Any order issued by the President under section 904 of this title
shall make the reduction which is otherwise required under the foster
care and adoption assistance programs (established by part E of title IV
of the Social Security Act [42 U.S.C. 670 et seq.]) only with respect to
payments and expenditures made by States in which increases in foster
care maintenance payment rates or adoption assistance payment rates (or
both) are to take effect during the fiscal year involved, and only to
the extent that the required reduction can be accomplished by applying a
uniform percentage reduction to the Federal matching payments that each
such State would otherwise receive under section 474 of that Act [42
U.S.C. 674] (for such fiscal year) for that portion of the State's
payments which is attributable to the increases taking effect during
that year. No State's matching payments from the Federal Government for
foster care maintenance payments or for adoption assistance maintenance
payments may be reduced by a percentage exceeding the applicable
domestic sequestration percentage. No State may, after December 12,
1985, make any change in the timetable for making payments under a State
plan approved under part E of title IV of the Social Security Act which
has the effect of changing the fiscal year in which expenditures under
such part are made.
(d) Special rules for Medicare program
(1) Calculation of reduction in individual payment amounts
To achieve the total percentage reduction in those programs
required by sections 902 and 903 of this title, and notwithstanding
section 710 of the Social Security Act [42 U.S.C. 911], OMB shall
determine, and the applicable Presidential order under section 904
of this title shall implement, the percentage reduction that shall
apply to payments under the health insurance programs under title
XVIII of the Social Security Act [42 U.S.C. 1395 et seq.] for
services furnished after the order is issued, such that the
reduction made in payments under that order shall achieve the
required total percentage reduction in those payments for that
fiscal year as determined on a 12-month basis.
(2) Timing of application of reductions
(A) In general
Except as provided in subparagraph (B), if a reduction is
made under paragraph (1) in payment amounts pursuant to a
sequestration order, the reduction shall be applied to payment
for services furnished during the effective period of the order.
For purposes of the previous sentence, in the case of inpatient
services furnished for an individual, the services shall be
considered to be furnished on the date of the individual's
discharge from the inpatient facility.
(B) Payment on the basis of cost reporting periods
In the case in which payment for services of a provider of
services is made under title XVIII of the Social Security Act
[42 U.S.C. 1395 et seq.] on a basis relating to the reasonable
cost incurred for the services during a cost reporting period of
the provider, if a reduction is made under paragraph (1) in
payment amounts pursuant to a sequestration order, the reduction
shall be applied to payment for costs for such services incurred
at any time during each cost reporting period of the provider
any part of which occurs during the effective period of the
order, but only (for each such cost reporting period) in the
same proportion as the fraction of the cost reporting period
that occurs during the effective period of the order.
(3) No increase in beneficiary charges in assignment-related
cases
If a reduction in payment amounts is made under paragraph (1)
for services for which payment under part B of title XVIII of the
Social Security Act [42 U.S.C. 1395j et seq.] is made on the basis
of an assignment described in section 1842(b)(3)(B)(ii) [42 U.S.C.
1395u(b)(3)(B)(ii)], in accordance with section 1842(b)(6)(B) [42
U.S.C. 1395u(b)(6)(B)], or under the procedure described in section
1870(f)(1) [42 U.S.C. 1395gg(f)(1)], of such Act, the person
furnishing the services shall be considered to have accepted payment
of the reasonable charge for the services, less any reduction in
payment amount made pursuant to a sequestration order, as payment in
full.
(4) No effect on computation of AAPCC
In computing the adjusted average per capita cost for purposes
of section 1876(a)(4) of the Social Security Act [42 U.S.C.
1395mm(a)(4)], the Secretary of Health and Human Services shall not
take into account any reductions in payment amounts which have been
or may be effected under this subchapter.
(e) Community and migrant health centers, Indian health services and
facilities, and veterans' medical care
(1) The maximum permissible reduction in budget authority for any
account listed in paragraph (2) for any fiscal year, pursuant to an
order issued under section 904 of this title, shall be 2 percent.
(2) The accounts referred to in paragraph (1) are as follows:
(A) Community health centers (75-0350-0-1-550).
(B) Migrant health centers (75-0350-0-1-550).
(C) Indian health facilities (75-0391-0-1-551).
(D) Indian health services (75-0390-0-1-551).
(E) Veterans' medical care (36-0160-0-1-703).
For purposes of the preceding provisions of this paragraph, programs are
identified by the designated budget account identification code numbers
set forth in the Budget of the United States Government--Appendix.
(f) Treatment of child support enforcement program
Notwithstanding any change in the display of budget accounts, any
order issued by the President under section 904 of this title shall
accomplish the full amount of any required reduction in expenditures
under sections 455 and 458 of the Social Security Act [42 U.S.C. 655,
658a] by reducing the Federal matching rate for State administrative
costs under such program, as specified (for the fiscal year involved) in
section 455(a) of such Act, to the extent necessary to reduce such
expenditures by that amount.
(g) Federal pay
(1) In general
For purposes of any order issued under section 904 of this
title--
(A) Federal pay under a statutory pay system, and
(B) elements of military pay,
shall be subject to reduction under an order in the same manner as
other administrative expense components of the Federal budget;
except that no such order may reduce or have the effect of reducing
the rate of pay to which any individual is entitled under any such
statutory pay system (as increased by any amount payable under
section 5304 of title 5 or section 302 of the Federal Employees Pay
Comparability Act of 1990) or the rate of any element of military
pay to which any individual is entitled under title 37, or any
increase in rates of pay which is scheduled to take effect under
section 5303 of title 5, section 1009 of title 37, or any other
provision of law.
(2) Definitions
For purposes of this subsection:
(A) The term ``statutory pay system'' shall have the meaning
given that term in section 5302(1) of title 5.
(B) The term ``elements of military pay'' means--
(i) the elements of compensation of members of the
uniformed services specified in section 1009 of title 37,
(ii) allowances provided members of the uniformed
services under sections 403a and 405 of such title, and
(iii) cadet pay and midshipman pay under section 203(c)
of such title.
(C) The term ``uniformed services'' shall have the meaning
given that term in section 101(3) of title 37.
(h) Treatment of Federal administrative expenses
(1) Notwithstanding any other provision of this title,\1\
administrative expenses incurred by the departments and agencies,
including independent agencies, of the Federal Government in connection
with any program, project, activity, or account shall be subject to
reduction pursuant to an order issued under section 904 of this title,
without regard to any exemption, exception, limitation, or special rule
which is otherwise applicable with respect to such program, project,
activity, or account under this subchapter.
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(2) Notwithstanding any other provision of law, administrative
expenses of any program, project, activity, or account which is self-
supporting and does not receive appropriations shall be subject to
reduction under a sequester order, unless specifically exempted in this
subchapter.
(3) Payments made by the Federal Government to reimburse or match
administrative costs incurred by a State or political subdivision under
or in connection with any program, project, activity, or account shall
not be considered administrative expenses of the Federal Government for
purposes of this section, and shall be subject to reduction or
sequestration under this subchapter to the extent (and only to the
extent) that other payments made by the Federal Government under or in
connection with that program, project, activity, or account are subject
to such reduction or sequestration; except that Federal payments made to
a State as reimbursement of administrative costs incurred by such State
under or in connection with the unemployment compensation programs
specified in subsection (h)(1) \1\ of this section shall be subject to
reduction or sequestration under this subchapter notwithstanding the
exemption otherwise granted to such programs under that subsection.
(4) Notwithstanding any other provision of law, this subsection
shall not apply with respect to the following:
(A) Comptroller of the Currency.
(B) Federal Deposit Insurance Corporation.
(C) Office of Thrift Supervision.
(D) National Credit Union Administration.
(E) National Credit Union Administration, central liquidity
facility.
(F) Federal Retirement Thrift Investment Board.
(G) Resolution Trust Corporation.
(H) Farm Credit Administration.
(i) Treatment of payments and advances made with respect to unemployment
compensation programs
(1) For purposes of section 904 of this title--
(A) any amount paid as regular unemployment compensation by a
State from its account in the Unemployment Trust Fund (established
by section 904(a) of the Social Security Act [42 U.S.C. 1104(a)]),
(B) any advance made to a State from the Federal unemployment
account (established by section 904(g) of such Act [42 U.S.C.
1104(g)]) under title XII of such Act [42 U.S.C. 1321 et seq.] and
any advance appropriated to the Federal unemployment account
pursuant to section 1203 of such Act [42 U.S.C. 1323], and
(C) any payment made from the Federal Employees Compensation
Account (as established under section 909 of such Act [42 U.S.C.
1109]) for the purpose of carrying out chapter 85 of title 5 and
funds appropriated or transferred to or otherwise deposited in such
Account,
shall not be subject to reduction.
(2)(A) A State may reduce each weekly benefit payment made under the
Federal-State Extended Unemployment Compensation Act of 1970 for any
week of unemployment occurring during any period with respect to which
payments are reduced under an order issued under section 904 of this
title by a percentage not to exceed the percentage by which the Federal
payment to the State under section 204 of such Act is to be reduced for
such week as a result of such order.
(B) A reduction by a State in accordance with subparagraph (A) shall
not be considered as a failure to fulfill the requirements of section
3304(a)(11) of title 26.
(j) Commodity Credit Corporation
(1) Powers and authorities of the Commodity Credit
Corporation
This title \2\ shall not restrict the Commodity Credit
Corporation in the discharge of its authority and responsibility as
a corporation to buy and sell commodities in world trade, to use the
proceeds as a revolving fund to meet other obligations and otherwise
operate as a corporation, the purpose for which it was created.
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(2) Reduction in payments made under contracts
(A) Loan eligibility under any contract entered into with a
person by the Commodity Credit Corporation prior to the time an
order has been issued under section 904 of this title shall not be
reduced by an order subsequently issued. Subject to subparagraph
(B), after an order is issued under such section for a fiscal year,
any cash payments for loans or loan deficiencies made by the
Commodity Credit Corporation shall be subject to reduction under the
order.
(B) Each loan contract entered into with producers or producer
cooperatives with respect to a particular crop of a commodity and
subject to reduction under subparagraph (A) shall be reduced in
accordance with the same terms and conditions. If some, but not all,
contracts applicable to a crop of a commodity have been entered into
prior to the issuance of an order under section 904 of this title,
the order shall provide that the necessary reduction in payments
under contracts applicable to the commodity be uniformly applied to
all contracts for the next succeeding crop of the commodity, under
the authority provided in paragraph (3).
(3) Delayed reduction in outlays permissible
Notwithstanding any other provision of this title,\2\ if an
order under section 904 of this title is issued with respect to a
fiscal year, any reduction under the order applicable to contracts
described in paragraph (1) may provide for reductions in outlays for
the account involved to occur in the fiscal year following the
fiscal year to which the order applies.
(4) Uniform percentage rate of reduction and other
limitations
All reductions described in paragraph (2) which are required to
be made in connection with an order issued under section 904 of this
title with respect to a fiscal year shall be made so as to ensure
that outlays for each program, project, activity, or account
involved are reduced by a percentage rate that is uniform for all
such programs, projects, activities, and accounts, and may not be
made so as to achieve a percentage rate of reduction in any such
item exceeding the rate specified in the order.
(5) Dairy program
Notwithstanding any other provision of this subsection, as the
sole means of achieving any reduction in outlays under the milk
price support program, the Secretary of Agriculture shall provide
for a reduction to be made in the price received by producers for
all milk produced in the United States and marketed by producers for
commercial use. That price reduction (measured in cents per hundred
weight of milk marketed) shall occur under section 1446(d)(2)(A) of
title 7, shall begin on the day any sequestration order is issued
under section 904 of this title, and shall not exceed the aggregate
amount of the reduction in outlays under the milk price support
program that otherwise would have been achieved by reducing payments
for the purchase of milk or the products of milk under this
subsection during the applicable fiscal year.
(6) Certain authority not to be limited
Nothing in this joint resolution shall limit or reduce, in any
way, any appropriation that provides the Commodity Credit
Corporation with budget authority to cover the Corporation's net
realized losses.
(k) Effects of sequestration
The effects of sequestration shall be as follows:
(1) Budgetary resources sequestered from any account shall be
permanently cancelled, except as provided in paragraph (5).
(2) Except as otherwise provided, the same percentage
sequestration shall apply to all programs, projects, and activities
within a budget account (with programs, projects, and activities as
delineated in the appropriation Act or accompanying report for the
relevant fiscal year covering that account, or for accounts not
included in appropriation Acts, as delineated in the most recently
submitted President's budget).
(3) Administrative regulations or similar actions implementing a
sequestration shall be made within 120 days of the sequestration
order. To the extent that formula allocations differ at different
levels of budgetary resources within an account, program, project,
or activity, the sequestration shall be interpreted as producing a
lower total appropriation, with the remaining amount of the
appropriation being obligated in a manner consistent with program
allocation formulas in substantive law.
(4) Except as otherwise provided, obligations in sequestered
accounts shall be reduced only in the fiscal year in which a
sequester occurs.
(5) If an automatic spending increase is sequestered, the
increase (in the applicable index) that was disregarded as a result
of that sequestration shall not be taken into account in any
subsequent fiscal year.
(6) Budgetary resources sequestered in revolving, trust, and
special fund accounts and offsetting collections sequestered in
appropriation accounts shall not be available for obligation during
the fiscal year in which the sequestration occurs, but shall be
available in subsequent years to the extent otherwise provided in
law.
(Pub. L. 99-177, title II, Sec. 256, Dec. 12, 1985, 99 Stat. 1086; Pub.
L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 100-86, title
V, Sec. 506(b), Aug. 10, 1987, 101 Stat. 634; Pub. L. 100-119, title I,
Secs. 102(b)(2), (3), (11), 104(a)(3), (4), Sept. 29, 1987, 101 Stat.
773, 775, 776; Pub. L. 101-73, title VII, Sec. 743(b), Aug. 9, 1989, 103
Stat. 437; Pub. L. 101-508, title XIII, Sec. 13101(d), Nov. 5, 1990, 104
Stat. 1388-589; Pub. L. 101-509, title V, Sec. 529 [title I,
Sec. 101(b)(2)(A), (4)(H)], Nov. 5, 1990, 104 Stat. 1427, 1439, 1440;
Pub. L. 104-193, title I, Sec. 110(r)(2), Aug. 22, 1996, 110 Stat. 2175;
Pub. L. 105-33, title X, Sec. 10208(a)(1), (b)-(g), Aug. 5, 1997, 111
Stat. 708-710.)
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.
References in Text
The Higher Education Act of 1965, referred to in subsec. (b), is
Pub. L. 89-329, Nov. 8, 1965, 79 Stat. 1219, as amended. Parts B and D
of title IV of the Act are classified generally to parts B (Sec. 1071 et
seq.) and C (Sec. 1087a et seq.) of subchapter IV of chapter 28 of Title
20, Education. For complete classification of this Act to the Code, see
Short Title note set out under section 1001 of Title 20 and Tables.
The Social Security Act, referred to in subsecs. (c), (d)(1),
(2)(B), (3), and (i)(1)(B), is act Aug. 14, 1935, ch. 531, 49 Stat. 620,
as amended. Part E of title IV of the Social Security Act is classified
generally to part E (Sec. 670 et seq.) of subchapter IV of chapter 7 of
Title 42, The Public Health and Welfare. Titles XII and XVIII of the
Social Security Act are classified generally to subchapters XII
(Sec. 1321 et seq.) and XVIII (Sec. 1395 et seq.), respectively, of
chapter 7 of Title 42. Part B of title XVIII of the Social Security Act
is classified generally to part B (Sec. 1395j et seq.) of subchapter
XVIII of chapter 7 of Title 42. For complete classification of this Act
to the Code, see section 1305 of Title 42 and Tables.
Section 302 of the Federal Employees Pay Comparability Act of 1990,
referred to in subsec. (g)(1), is section 529 [title III, Sec. 302] of
Pub. L. 101-509, which is set out as a note under section 5304 of Title
5, Government Organization and Employees.
This title, referred to in subsecs. (h)(1) and (j)(1), (3), means
title II (Sec. 200 et seq.) of Pub. L. 99-177, Dec. 12, 1985, 99 Stat.
1038, known as the Balanced Budget and Emergency Deficit Control Act of
1985. For complete classification of this Act to the Code, see Short
Title note set out under section 900 of this title and Tables.
This joint resolution, referred to in subsec. (j)(6), means Pub. L.
99-177, Dec. 12, 1985, 99 Stat. 1037, as amended, which enacted this
chapter and sections 654 to 656 of this title, amended sections 602,
622, 631 to 642, and 651 to 653 of this title, sections 1104 to 1106,
1109, and 3101 of Title 31, Money and Finance, and section 911 of Title
42, The Public Health and Welfare, repealed section 661 of this title,
enacted provisions set out as notes under section 900 of this title and
section 911 of Title 42, and amended provisions set out as a note under
section 621 of this title. For complete classification of this Act to
the Code, see Tables.
Subsec. (h)(1) of this section, referred to in subsec. (h)(3), was
redesignated subsec. (i)(1) of this section by Pub. L. 101-508, title
XIII, Sec. 13101(d)(2), Nov. 5, 1990, 104 Stat. 1388-589.
The Federal-State Extended Unemployment Compensation Act of 1970,
referred to in subsec. (i)(2)(A), is title II of Pub. L. 91-373, Aug.
10, 1970, 84 Stat. 708, as amended, which is classified generally as a
note under section 3304 of Title 26, Internal Revenue Code. Section 204
of such Act is set out in the note under section 3304 of Title 26. For
complete classification of this Act to the Code, see Tables.
Amendments
1997--Pub. L. 105-33, Sec. 10208(a)(1), substituted ``General and
special sequestration rules'' for ``Exceptions, limitations, and special
rules'' as section catchline.
Subsec. (a). Pub. L. 105-33, Sec. 10208(b), redesignated pars. (2)
and (3) as (1) and (2), respectively, and struck out former par. (1)
which read as follows: ``National Wool Act;''.
Subsec. (b). Pub. L. 105-33, Sec. 10208[(c)], amended subsec. (b)
generally, substituting new heading and text for former text consisting
of pars. (1) to (3) relating to reductions required to be achieved from
student loan programs operated under part B of title IV of the Higher
Education Act of 1965 as a consequence of a sequestration order.
Amendment was executed to reflect the probable intent of Congress based
on language directing the general amendment of subsec. (b), appearing in
the conference report for H.R. 2015, H. Rept. No. 105-217, 105th
Congress, as adopted by the House of Representatives and Senate.
Subsec. (e)(1). Pub. L. 105-33, Sec. 10208(d), substituted ``shall
be 2 percent.'' for ``shall be--'' and struck out subpars. (A) and (B)
which read as follows:
``(A) 1 percent in the case of the fiscal year 1986, and
``(B) 2 percent in the case of any subsequent fiscal year.''
Subsec. (h)(2). Pub. L. 105-33, Sec. 10208(e)(1), substituted ``this
subchapter'' for ``this joint resolution''.
Subsec. (h)(4)(D). Pub. L. 105-33, Sec. 10208(e)(2), redesignated
subpar. (E) as (D) and struck out former subpar. (D) which read as
follows: ``Office of Thrift Supervision.''
Subsec. (h)(4)(E) to (G). Pub. L. 105-33, Sec. 10208(e)(2),
redesignated subpars. (F), (G), and (I) as (E), (F), and (G),
respectively. Former subpar. (E) redesignated (D).
Subsec. (h)(4)(H). Pub. L. 105-33, Sec. 10208(e)(2), added subpar.
(H) and struck out former subpar. (H) which read as follows:
``Resolution Funding Corporation.''
Subsec. (h)(4)(I). Pub. L. 105-33, Sec. 10208(e)(2), redesignated
subpar. (I) as (G).
Subsec. (j)(2) to (5). Pub. L. 105-33, Sec. 10208(f), added pars.
(2) to (5) and struck out former pars. (2) to (5) which related to
reduction in payments made under contracts, delayed reduction in outlays
permissible, uniform percentage rate of reduction and other limitations,
and no double reduction for agricultural price support and income
protection programs.
Subsec. (k)(1). Pub. L. 105-33, Sec. 10208(g)(1), struck out ``other
than a trust or special fund account'' after ``from any account'' and
inserted ``, except as provided in paragraph (5)'' before period.
Subsec. (k)(6). Pub. L. 105-33, Sec. 10208(g)(2), amended par. (6)
generally. Prior to amendment, par. (6) read as follows: ``Except as
otherwise provided, sequestration in trust and special fund accounts for
which obligations are indefinite shall be taken in a manner to ensure
that obligations in the fiscal year of a sequestration are reduced, from
the level that would actually have occurred, by the applicable
sequestration percentage.''
1996--Subsecs. (k), (l). Pub. L. 104-193 redesignated subsec. (l) as
(k) and struck out former subsec. (k) which related to special rules for
JOBS portion of AFDC, providing that any order under section 904
accomplish full amount of any required sequestration of job
opportunities and basic skills training program, and setting forth new
allotment formula.
1990--Subsec. (a). Pub. L. 101-508, Sec. 13101(d)(1), amended
subsec. (a) generally, substituting provisions relating to automatic
spending increases for provisions relating to effect of reductions and
sequestrations.
Subsec. (b). Pub. L. 101-508, Sec. 13101(d)(3), substituted
``section 904 of this title'' for ``section 902 of this title'' in pars.
(1) to (3).
Pub. L. 101-508, Sec. 13101(d)(2), redesignated subsec. (c) as (b).
Former subsec. (b) redesignated (h).
Subsec. (c). Pub. L. 101-508, Sec. 13101(d)(4), inserted after first
sentence ``No State's matching payments from the Federal Government for
foster care maintenance payments or for adoption assistance maintenance
payments may be reduced by a percentage exceeding the applicable
domestic sequestration percentage.''
Pub. L. 101-508, Sec. 13101(d)(3), substituted ``section 904 of this
title'' for ``section 902 of this title''.
Pub. L. 101-508, Sec. 13101(d)(2), redesignated subsec. (f) as (c).
Former subsec. (c) redesignated (b).
Subsec. (d)(1). Pub. L. 101-508, Sec. 13101(d)(5), amended par. (1)
generally. Prior to amendment, par. (1) read as follows: ``The maximum
permissible reduction for the health insurance programs under title
XVIII of the Social Security Act for any fiscal year, pursuant to an
order issued under section 902 of this title, consists only of a
reduction of--
``(A) 1 percent in the case of fiscal year 1986, and
``(B) 2 percent (or such higher percentage as may apply as
determined in accordance with section 902(a)(4)(B)(ii) of this
title) in the case of any subsequent fiscal year,
in each separate payment amount otherwise made for a covered service
under those programs without regard to this subchapter.''
Subsec. (d)(2)(C). Pub. L. 101-508, Sec. 13101(d)(6), struck out
subpar. (C) which read as follows: ``For purposes of this paragraph, the
effective period of a sequestration order for fiscal year 1986 is the
period beginning on March 1, 1986, and ending on September 30, 1986.''
Subsec. (e). Pub. L. 101-508, Sec. 13101(d)(2), redesignated subsec.
(k) as (e). Former subsec. (e) redesignated (f).
Subsec. (e)(1). Pub. L. 101-508, Sec. 13101(d)(3), substituted
``section 904 of this title'' for ``section 902 of this title''.
Subsec. (f). Pub. L. 101-508, Sec. 13101(d)(3), substituted
``section 904 of this title'' for ``section 902 of this title''.
Pub. L. 101-508, Sec. 13101(d)(2), redesignated subsec. (e) as (f).
Former subsec. (f) redesignated (c).
Subsec. (g)(1). Pub. L. 101-509, Sec. 529 [title I,
Sec. 101(b)(4)(H)], in closing provisions, inserted ``(as increased by
any amount payable under section 5304 of title 5 or section 302 of the
Federal Employees Pay Comparability Act of 1990)'' after ``pay system''
and substituted ``5303'' for ``5305''.
Pub. L. 101-508, Sec. 13101(d)(3), substituted ``section 904 of this
title'' for ``section 902 of this title''.
Subsec. (g)(2)(A). Pub. L. 101-509, Sec. 529 [title I,
Sec. 101(b)(2)(A)], substituted ``5302(1)'' for ``5301(c)''.
Subsec. (h). Pub. L. 101-508, Sec. 13101(d)(2), redesignated subsec.
(b) as (h). Former subsec. (h) redesignated (i).
Subsec. (h)(1). Pub. L. 101-508, Sec. 13101(d)(3), substituted
``section 904 of this title'' for ``section 902 of this title''.
Subsec. (i). Pub. L. 101-508, Sec. 13101(d)(2), redesignated subsec.
(h) as (i) and struck out former subsec. (i) which related to treatment
of mine worker disability compensation increases as automatic spending
increases.
Subsec. (i)(1), (2)(A). Pub. L. 101-508, Sec. 13101(d)(3),
substituted ``section 904 of this title'' for ``section 902 of this
title''.
Subsec. (j). Pub. L. 101-508, Sec. 13101(d)(3), substituted
``section 904 of this title'' for ``section 902 of this title'' wherever
appearing in pars. (2) to (5).
Subsec. (k). Pub. L. 101-508, Sec. 13101(d)(2), added subsec. (k).
Former subsec. (k) redesignated (e).
Subsec. (l). Pub. L. 101-508, Sec. 13101(d)(2), added subsec. (l)
and struck out former subsec. (l) which related to treatment of
obligated balances.
1989--Subsec. (b)(4)(C). Pub. L. 101-73, Sec. 743(b)(1), substituted
``Office of Thrift Supervision'' for ``Federal Home Loan Bank Board''.
Subsec. (b)(4)(D). Pub. L. 101-73, Sec. 743(b)(2), substituted
``Office of Thrift Supervision'' for ``Federal Savings and Loan
Insurance Corporation''.
Subsec. (b)(4)(H), (I). Pub. L. 101-73, Sec. 743(b)(3), added
subpars. (H) and (I).
1987--Subsec. (a)(2). Pub. L. 100-119, Sec. 102(b)(2), amended par.
(2) generally. Prior to amendment, par. (2) read as follows: ``Any
amount of new budget authority, unobligated balances, obligated
balances, new loan guarantee commitments, new direct loan obligations,
spending authority (as defined in section 651(c)(2) of this title), or
obligation limitations which is sequestered or reduced pursuant to an
order issued under section 902 of this title is permanently cancelled,
with the exception of amounts sequestered in special or trust funds,
which shall remain in such funds and be available in accordance with and
to the extent permitted by law, including the provisions of this Act.''
Subsec. (b)(4). Pub. L. 100-86 added par. (4).
Subsec. (b)(4)(G). Pub. L. 100-119, Sec. 104(a)(3), added subpar.
(G).
Subsec. (d)(1)(B). Pub. L. 100-119, Sec. 102(b)(11), inserted ``(or
such higher percentage as may apply as determined in accordance with
section 902(a)(4)(B)(ii) of this title)''.
Subsec. (e). Pub. L. 100-119, Sec. 104(a)(4), substituted
``Notwithstanding any change in the display of budget accounts, any
order'' for ``Any order''.
Subsec. (l). Pub. L. 100-119, Sec. 102(b)(3), amended subsec. (l)
generally, striking out provisions which had created an ``existing
contract'' exception to the rule of obligated balances not being subject
to reduction under an order issued under section 902 of this title,
under which existing contracts in major functional category 050 (other
than (A) those contracts which included a specified penalty for
cancellation or modification by the Government and which if so cancelled
or modified would have resulted (due to such penalty) in a net loss to
the Government for the fiscal year, and (B) those contracts the
reduction of which would have violated the legal obligations of the
Government) were subject to reduction, in accordance with section
901(d)(3) of this title, under an order issued under section 902 of this
title.
1986--Subsec. (h)(2)(B). Pub. L. 99-514 substituted ``Internal
Revenue Code of 1986'' for ``Internal Revenue Code of 1954'', which for
purposes of codification was translated as ``title 26'' thus requiring
no change in text.
Effective Date of 1996 Amendment
Amendment by Pub. L. 104-193 effective July 1, 1997, with transition
rules relating to State options to accelerate such date, rules relating
to claims, actions, and proceedings commenced before such date, rules
relating to closing out of accounts for terminated or substantially
modified programs and continuance in office of Assistant Secretary for
Family Support, and provisions relating to termination of entitlement
under AFDC program, see section 116 of Pub. L. 104-193, set out as a
note under section 601 of Title 42, The Public Health and Welfare.
Effective Date of 1990 Amendment
Amendment by Pub. L. 101-509 effective on such date as the President
shall determine, but not earlier than 90 days, and not later than 180
days, after Nov. 5, 1990, see section 529 [title III, Sec. 305] of Pub.
L. 101-509, set out as a note under section 5301 of Title 5, Government
Organization and Employees.
Section Referred to in Other Sections
This section is referred to in sections 901, 902, 903, 922 of this
title; title 12 section 1772c.
