[DOCID: f:hr153.110]
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110th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 110-153
======================================================================
CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2008
_______
May 16, 2007.--Ordered to be printed
_______
Mr. Spratt, from the Committee of Conference, submitted the following
CONFERENCE REPORT
[To accompany S. Con. Res. 21]
The committee of conference on the disagreeing votes of the
two Houses on the amendment of the House to the concurrent
resolution (S. Con. Res. 21), revising the congressional budget
for the United States Government for fiscal year 2007,
establishing the congressional budget for the United States
Government for fiscal year 2008, and setting forth appropriate
budgetary levels for fiscal years 2009 through 2012, having
met, after full and free conference, have agreed to recommend
and do recommend to their respective Houses as follows:
That the Senate recede from its disagreement to the
amendment of the House and agree to the same with an amendment
as follows:
In lieu of the matter proposed to be inserted by the House
amendment, insert the following:
SECTION 1. CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2008.
(a) Declaration.--Congress declares that this resolution is
the concurrent resolution on the budget for fiscal year 2008
and that this resolution sets forth the appropriate budgetary
levels for fiscal years 2007 and 2009 through 2012.
(b) Table of Contents.--The table of contents for this
concurrent resolution is as follows:
Section 1. Concurrent resolution on the budget for fiscal year 2008.
TITLE I--RECOMMENDED LEVELS AND AMOUNTS
Sec. 101. Recommended levels and amounts.
Sec. 102. Social Security.
Sec. 103. Major functional categories.
TITLE II--BUDGET PROCESS
Sec. 201. Pay-as-you-go point of order in the Senate.
Sec. 202. Senate point of order against reconciliation legislation that
would increase the deficit or reduce a surplus.
Sec. 203. Senate point of order against legislation increasing long-term
deficits.
Sec. 204. Emergency legislation.
Sec. 205. Extension of enforcement of budgetary points of order in the
Senate.
Sec. 206. Point of order against advance appropriations.
Sec. 207. Discretionary spending limits, program integrity initiatives,
and other adjustments.
Sec. 208. Application of previous allocations in the Senate.
Sec. 209. Senate point of order against provisions of appropriations
legislation that constitute changes in mandatory programs with
net costs.
Sec. 210. Compliance with section 13301 of the Budget Enforcement Act of
1990.
Sec. 211. Application and effect of changes in allocations and
aggregates.
Sec. 212. Adjustments to reflect changes in concepts and definitions.
Sec. 213. Exercise of rulemaking powers.
TITLE III--RESERVE FUNDS
Sec. 301. Deficit-neutral reserve fund for SCHIP legislation.
Sec. 302. Deficit-neutral reserve fund for veterans and wounded
servicemembers.
Sec. 303. Deficit-neutral reserve fund for tax relief.
Sec. 304. Deficit-neutral reserve fund for Medicare improvements.
Sec. 305. Deficit neutral reserve funds for health care quality,
effectiveness, efficiency, and transparency.
Sec. 306. Deficit-neutral reserve fund for higher education.
Sec. 307. Deficit-neutral reserve fund for the Farm Bill.
Sec. 308. Deficit-neutral reserve fund for energy legislation.
Sec. 309. Deficit-neutral reserve fund for county payments legislation.
Sec. 310. Deficit-neutral reserve fund for terrorism risk insurance
reauthorization.
Sec. 311. Deficit-neutral reserve fund for affordable housing.
Sec. 312. Deficit-neutral reserve fund for receipts from Bonneville
Power Administration.
Sec. 313. Deficit-neutral reserve fund for Indian claims settlement.
Sec. 314. Deficit-neutral reserve fund for improvements in health.
Sec. 315. Deficit-neutral reserve fund for child care.
Sec. 316. Deficit-neutral reserve fund for immigration reform in the
Senate.
Sec. 317. Deficit-reduction reserve fund.
Sec. 318. Deficit-neutral reserve fund for manufacturing initiatives in
the Senate.
Sec. 319. Deficit-neutral reserve fund for the Food and Drug
Administration in the Senate.
Sec. 320. Deficit-neutral reserve fund for Medicaid.
Sec. 321. Reserve fund adjustment for revenue measures in the House.
Sec. 322. Deficit-neutral reserve fund for San Joaquin River restoration
and Navajo Nation water rights settlements.
Sec. 323. Deficit-neutral reserve fund for selected tax relief policies
in the Senate.
TITLE IV--POLICY
Sec. 401. Policy on middle-income tax relief.
Sec. 402. Policy on defense priorities.
Sec. 403. Policy on college affordability.
TITLE V--SENSE OF THE HOUSE AND SENSE OF CONGRESS
Sec. 501. Sense of Congress on servicemembers' and veterans' health care
and other priorities.
Sec. 502. Sense of Congress on the Innovation Agenda: A commitment to
competitiveness to keep America #1.
Sec. 503. Sense of Congress on homeland security.
Sec. 504. Sense of Congress regarding the ongoing need to respond to
Hurricanes Katrina and Rita.
Sec. 505. Sense of Congress regarding long-term sustainability of
entitlements.
Sec. 506. Sense of Congress regarding the need to maintain and build
upon efforts to fight hunger.
Sec. 507. Sense of Congress regarding affordable health coverage.
Sec. 508. Sense of Congress regarding extension of the statutory pay-as-
you-go rule.
Sec. 509. Sense of Congress on long-term budgeting.
Sec. 510. Sense of Congress regarding pay parity.
Sec. 511. Sense of Congress regarding waste, fraud, and abuse.
Sec. 512. Sense of Congress regarding the importance of child support
enforcement.
Sec. 513. Sense of the House on State veterans cemeteries.
Sec. 514. Sense of Congress on the State Criminal Alien Assistance
Program.
TITLE VI--RECONCILIATION
Sec. 601. Reconciliation in the House.
Sec. 602. Deficit reduction reconciliation instruction in the Senate.
TITLE I--RECOMMENDED LEVELS AND AMOUNTS
SEC. 101. RECOMMENDED LEVELS AND AMOUNTS.
The following budgetary levels are appropriate for each of
fiscal years 2007 through 2012:
(1) Federal revenues.--For purposes of the
enforcement of this resolution:
(A) The recommended levels of Federal
revenues are as follows:
Fiscal year 2007: $1,900,340,000,000.
Fiscal year 2008: $2,015,858,000,000.
Fiscal year 2009: $2,113,828,000,000.
Fiscal year 2010: $2,169,484,000,000.
Fiscal year 2011: $2,350,254,000,000.
Fiscal year 2012: $2,488,301,000,000.
(B) The amounts by which the aggregate
levels of Federal revenues should be changed
are as follows:
Fiscal year 2007: -$4,366,000,000.
Fiscal year 2008: -$34,938,000,000.
Fiscal year 2009: $6,902,000,000.
Fiscal year 2010: $5,763,000,000.
Fiscal year 2011: -$44,296,000,000.
Fiscal year 2012: -$108,795,000,000.
(2) New budget authority.--For purposes of the
enforcement of this resolution, the appropriate levels
of total new budget authority are as follows:
Fiscal year 2007: $2,380,535,000,000.
Fiscal year 2008: $2,496,028,000,000.
Fiscal year 2009: $2,517,132,000,000.
Fiscal year 2010: $2,569,696,000,000.
Fiscal year 2011: $2,684,889,000,000.
Fiscal year 2012: $2,719,268,000,000.
(3) Budget outlays.--For purposes of the
enforcement of this resolution, the appropriate levels
of total budget outlays are as follows:
Fiscal year 2007: $2,300,572,000,000.
Fiscal year 2008: $2,469,636,000,000.
Fiscal year 2009: $2,566,481,000,000.
Fiscal year 2010: $2,600,036,000,000.
Fiscal year 2011: $2,692,104,000,000.
Fiscal year 2012: $2,703,556,000,000.
(4) Deficits.--For purposes of the enforcement of
this resolution, the amounts of the deficits are as
follows:
Fiscal year 2007: $400,232,000,000.
Fiscal year 2008: $453,778,000,000.
Fiscal year 2009: $452,653,000,000.
Fiscal year 2010: $430,552,000,000.
Fiscal year 2011: $341,850,000,000.
Fiscal year 2012: $215,255,000,000.
(5) Debt subject to limit.--Pursuant to section
301(a)(5) of the Congressional Budget Act of 1974, the
appropriate levels of the public debt are as follows:
Fiscal year 2007: $8,932,264,000,000.
Fiscal year 2008: $9,504,150,000,000.
Fiscal year 2009: $10,073,725,000,000.
Fiscal year 2010: $10,622,023,000,000.
Fiscal year 2011: $11,077,407,000,000.
Fiscal year 2012: $11,419,028,000,000.
(6) Debt held by the public.--The appropriate
levels of debt held by the public are as follows:
Fiscal year 2007: $5,047,318,000,000.
Fiscal year 2008: $5,312,560,000,000.
Fiscal year 2009: $5,561,383,000,000.
Fiscal year 2010: $5,774,487,000,000.
Fiscal year 2011: $5,881,776,000,000.
Fiscal year 2012: $5,850,852,000,000.
SEC. 102. SOCIAL SECURITY.
(a) Social Security Revenues.--For purposes of Senate
enforcement under sections 302 and 311 of the Congressional
Budget Act of 1974, the amounts of revenues of the Federal Old-
Age and Survivors Insurance Trust Fund and the Federal
Disability Insurance Trust Fund are as follows:
Fiscal year 2007: $637,586,000,000.
Fiscal year 2008: $668,998,000,000.
Fiscal year 2009: $702,851,000,000.
Fiscal year 2010: $737,589,000,000.
Fiscal year 2011: $772,605,000,000.
Fiscal year 2012: $807,928,000,000.
(b) Social Security Outlays.--For purposes of Senate
enforcement under sections 302 and 311 of the Congressional
Budget Act of 1974, the amounts of outlays of the Federal Old-
Age and Survivors Insurance Trust Fund and the Federal
Disability Insurance Trust Fund are as follows:
Fiscal year 2007: $441,676,000,000.
Fiscal year 2008: $460,224,000,000.
Fiscal year 2009: $478,578,000,000.
Fiscal year 2010: $499,655,000,000.
Fiscal year 2011: $520,743,000,000.
Fiscal year 2012: $546,082,000,000.
(c) Social Security Administrative Expenses.--In the
Senate, the amounts of new budget authority and budget outlays
of the Federal Old-Age and Survivors Insurance Trust Fund and
the Federal Disability Insurance Trust Fund for administrative
expenses are as follows:
Fiscal year 2007:
(A) New budget authority, $4,692,000,000.
(B) Outlays, $4,727,000,000.
Fiscal year 2008:
(A) New budget authority, $4,850,000,000.
(B) Outlays, $4,859,000,000.
Fiscal year 2009:
(A) New budget authority, $4,996,000,000.
(B) Outlays, $4,970,000,000.
Fiscal year 2010:
(A) New budget authority, $5,147,000,000.
(B) Outlays, $5,121,000,000.
Fiscal year 2011:
(A) New budget authority, $5,306,000,000.
(B) Outlays, $5,278,000,000.
Fiscal year 2012:
(A) New budget authority, $5,467,000,000.
(B) Outlays, $5,439,000,000.
SEC. 103. MAJOR FUNCTIONAL CATEGORIES.
Congress determines and declares that the appropriate
levels of new budget authority and outlays for fiscal years
2007 through 2012 for each major functional category are:
(1) National Defense (050):
Fiscal year 2007:
(A) New budget authority,
$525,797,000,000.
(B) Outlays, $534,270,000,000.
Fiscal year 2008:
(A) New budget authority,
$506,955,000,000.
(B) Outlays, $514,401,000,000.
Fiscal year 2009:
(A) New budget authority,
$534,705,000,000.
(B) Outlays, $524,384,000,000.
Fiscal year 2010:
(A) New budget authority,
$545,171,000,000.
(B) Outlays, $536,433,000,000.
Fiscal year 2011:
(A) New budget authority,
$550,944,000,000.
(B) Outlays, $547,624,000,000.
Fiscal year 2012:
(A) New budget authority,
$559,799,000,000.
(B) Outlays, $548,169,000,000.
(2) International Affairs (150):
Fiscal year 2007:
(A) New budget authority,
$28,795,000,000.
(B) Outlays, $31,308,000,000.
Fiscal year 2008:
(A) New budget authority,
$34,678,000,000.
(B) Outlays, $33,070,000,000.
Fiscal year 2009:
(A) New budget authority,
$35,602,000,000.
(B) Outlays, $32,664,000,000.
Fiscal year 2010:
(A) New budget authority,
$35,980,000,000.
(B) Outlays, $33,070,000,000.
Fiscal year 2011:
(A) New budget authority,
$36,630,000,000.
(B) Outlays, $33,528,000,000.
Fiscal year 2012:
(A) New budget authority,
$37,257,000,000.
(B) Outlays, $34,150,000,000.
(3) General Science, Space, and Technology (250):
Fiscal year 2007:
(A) New budget authority,
$25,079,000,000.
(B) Outlays, $24,516,000,000.
Fiscal year 2008:
(A) New budget authority,
$27,615,000,000.
(B) Outlays, $26,472,000,000.
Fiscal year 2009:
(A) New budget authority,
$28,641,000,000.
(B) Outlays, $28,411,000,000.
Fiscal year 2010:
(A) New budget authority,
$29,844,000,000.
(B) Outlays, $29,485,000,000.
Fiscal year 2011:
(A) New budget authority,
$31,103,000,000.
(B) Outlays, $30,089,000,000.
Fiscal year 2012:
(A) New budget authority,
$32,438,000,000.
(B) Outlays, $31,367,000,000.
(4) Energy (270):
Fiscal year 2007:
(A) New budget authority,
$2,943,000,000.
(B) Outlays, $1,369,000,000.
Fiscal year 2008:
(A) New budget authority,
$3,408,000,000.
(B) Outlays, $1,162,000,000.
Fiscal year 2009:
(A) New budget authority,
$3,209,000,000.
(B) Outlays, $1,590,000,000.
Fiscal year 2010:
(A) New budget authority,
$3,275,000,000.
(B) Outlays, $1,782,000,000.
Fiscal year 2011:
(A) New budget authority,
$3,346,000,000.
(B) Outlays, $1,829,000,000.
Fiscal year 2012:
(A) New budget authority,
$3,404,000,000.
(B) Outlays, $2,111,000,000.
(5) Natural Resources and Environment (300):
Fiscal year 2007:
(A) New budget authority,
$31,332,000,000.
(B) Outlays, $32,919,000,000.
Fiscal year 2008:
(A) New budget authority,
$33,384,000,000.
(B) Outlays, $35,219,000,000.
Fiscal year 2009:
(A) New budget authority,
$33,910,000,000.
(B) Outlays, $35,704,000,000.
Fiscal year 2010:
(A) New budget authority,
$34,660,000,000.
(B) Outlays, $35,834,000,000.
Fiscal year 2011:
(A) New budget authority,
$35,113,000,000.
(B) Outlays, $36,035,000,000.
Fiscal year 2012:
(A) New budget authority,
$36,094,000,000.
(B) Outlays, $36,507,000,000.
(6) Agriculture (350):
Fiscal year 2007:
(A) New budget authority,
$21,471,000,000.
(B) Outlays, $19,738,000,000.
Fiscal year 2008:
(A) New budget authority,
$20,481,000,000.
(B) Outlays, $19,603,000,000.
Fiscal year 2009:
(A) New budget authority,
$21,033,000,000.
(B) Outlays, $20,146,000,000.
Fiscal year 2010:
(A) New budget authority,
$21,238,000,000.
(B) Outlays, $20,207,000,000.
Fiscal year 2011:
(A) New budget authority,
$21,256,000,000.
(B) Outlays, $20,534,000,000.
Fiscal year 2012:
(A) New budget authority,
$21,502,000,000.
(B) Outlays, $20,963,000,000.
(7) Commerce and Housing Credit (370):
Fiscal year 2007:
(A) New budget authority,
$5,515,000,000.
(B) Outlays, -$3,522,000,000.
Fiscal year 2008:
(A) New budget authority,
$9,279,000,000.
(B) Outlays, $2,034,000,000.
Fiscal year 2009:
(A) New budget authority,
$9,973,000,000.
(B) Outlays, $1,048,000,000.
Fiscal year 2010:
(A) New budget authority,
$13,775,000,000.
(B) Outlays, $3,431,000,000.
Fiscal year 2011:
(A) New budget authority,
$8,822,000,000.
(B) Outlays, $2,439,000,000.
Fiscal year 2012:
(A) New budget authority,
$8,822,000,000.
(B) Outlays, $756,000,000.
(8) Transportation (400):
Fiscal year 2007:
(A) New budget authority,
$81,282,000,000.
(B) Outlays, $74,739,000,000.
Fiscal year 2008:
(A) New budget authority,
$82,799,000,000.
(B) Outlays, $81,093,000,000.
Fiscal year 2009:
(A) New budget authority,
$76,306,000,000.
(B) Outlays, $84,025,000,000.
Fiscal year 2010:
(A) New budget authority,
$77,061,000,000.
(B) Outlays, $85,959,000,000.
Fiscal year 2011:
(A) New budget authority,
$78,089,000,000.
(B) Outlays, $86,672,000,000.
Fiscal year 2012:
(A) New budget authority,
$78,969,000,000.
(B) Outlays, $88,352,000,000.
(9) Community and Regional Development (450):
Fiscal year 2007:
(A) New budget authority,
$15,717,000,000.
(B) Outlays, $28,281,000,000.
Fiscal year 2008:
(A) New budget authority,
$15,814,000,000.
(B) Outlays, $22,292,000,000.
Fiscal year 2009:
(A) New budget authority,
$14,725,000,000.
(B) Outlays, $21,008,000,000.
Fiscal year 2010:
(A) New budget authority,
$14,942,000,000.
(B) Outlays, $19,892,000,000.
Fiscal year 2011:
(A) New budget authority,
$15,157,000,000.
(B) Outlays, $18,440,000,000.
Fiscal year 2012:
(A) New budget authority,
$15,371,000,000.
(B) Outlays, $15,938,000,000.
(10) Education, Training, Employment, and Social
Services (500):
Fiscal year 2007:
(A) New budget authority,
$92,780,000,000.
(B) Outlays, $92,224,000,000.
Fiscal year 2008:
(A) New budget authority,
$93,880,000,000.
(B) Outlays, $91,022,000,000.
Fiscal year 2009:
(A) New budget authority,
$97,809,000,000.
(B) Outlays, $94,513,000,000.
Fiscal year 2010:
(A) New budget authority,
$99,726,000,000.
(B) Outlays, $97,075,000,000.
Fiscal year 2011:
(A) New budget authority,
$100,151,000,000.
(B) Outlays, $98,745,000,000.
Fiscal year 2012:
(A) New budget authority,
$100,748,000,000.
(B) Outlays, $98,728,000,000.
(11) Health (550):
Fiscal year 2007:
(A) New budget authority,
$267,892,000,000.
(B) Outlays, $268,197,000,000.
Fiscal year 2008:
(A) New budget authority,
$287,486,000,000.
(B) Outlays, $286,442,000,000.
Fiscal year 2009:
(A) New budget authority,
$308,326,000,000.
(B) Outlays, $306,410,000,000.
Fiscal year 2010:
(A) New budget authority,
$326,118,000,000.
(B) Outlays, $326,100,000,000.
Fiscal year 2011:
(A) New budget authority,
$347,561,000,000.
(B) Outlays, $346,748,000,000.
Fiscal year 2012:
(A) New budget authority,
$370,422,000,000.
(B) Outlays, $369,653,000,000.
(12) Medicare (570):
Fiscal year 2007:
(A) New budget authority,
$365,152,000,000.
(B) Outlays, $370,180,000,000.
Fiscal year 2008:
(A) New budget authority,
$389,587,000,000.
(B) Outlays, $389,703,000,000.
Fiscal year 2009:
(A) New budget authority,
$416,710,000,000.
(B) Outlays, $416,367,000,000.
Fiscal year 2010:
(A) New budget authority,
$442,347,000,000.
(B) Outlays, $442,569,000,000.
Fiscal year 2011:
(A) New budget authority,
$489,077,000,000.
(B) Outlays, $489,087,000,000.
Fiscal year 2012:
(A) New budget authority,
$486,804,000,000.
(B) Outlays, $486,417,000,000.
(13) Income Security (600):
Fiscal year 2007:
(A) New budget authority,
$360,365,000,000.
(B) Outlays, $364,204,000,000.
Fiscal year 2008:
(A) New budget authority,
$380,763,000,000.
(B) Outlays, $384,301,000,000.
Fiscal year 2009:
(A) New budget authority,
$391,707,000,000.
(B) Outlays, $393,962,000,000.
Fiscal year 2010:
(A) New budget authority,
$401,747,000,000.
(B) Outlays, $402,784,000,000.
Fiscal year 2011:
(A) New budget authority,
$417,020,000,000.
(B) Outlays, $417,013,000,000.
Fiscal year 2012:
(A) New budget authority,
$402,674,000,000.
(B) Outlays, $402,008,000,000.
(14) Social Security (650):
Fiscal year 2007:
(A) New budget authority,
$19,089,000,000.
(B) Outlays, $19,089,000,000.
Fiscal year 2008:
(A) New budget authority,
$19,644,000,000.
(B) Outlays, $19,644,000,000.
Fiscal year 2009:
(A) New budget authority,
$21,518,000,000.
(B) Outlays, $21,518,000,000.
Fiscal year 2010:
(A) New budget authority,
$23,701,000,000.
(B) Outlays, $23,701,000,000.
Fiscal year 2011:
(A) New budget authority,
$27,009,000,000.
(B) Outlays, $27,009,000,000.
Fiscal year 2012:
(A) New budget authority,
$29,898,000,000.
(B) Outlays, $29,898,000,000.
(15) Veterans Benefits and Services (700):
Fiscal year 2007:
(A) New budget authority,
$73,896,000,000.
(B) Outlays, $72,342,000,000.
Fiscal year 2008:
(A) New budget authority,
$85,262,000,000.
(B) Outlays, $84,421,000,000.
Fiscal year 2009:
(A) New budget authority,
$87,787,000,000.
(B) Outlays, $88,290,000,000.
Fiscal year 2010:
(A) New budget authority,
$90,414,000,000.
(B) Outlays, $89,981,000,000.
Fiscal year 2011:
(A) New budget authority,
$96,033,000,000.
(B) Outlays, $95,543,000,000.
Fiscal year 2012:
(A) New budget authority,
$93,325,000,000.
(B) Outlays, $92,666,000,000.
(16) Administration of Justice (750):
Fiscal year 2007:
(A) New budget authority,
$45,504,000,000.
(B) Outlays, $44,659,000,000.
Fiscal year 2008:
(A) New budget authority,
$47,998,000,000.
(B) Outlays, $47,131,000,000.
Fiscal year 2009:
(A) New budget authority,
$48,315,000,000.
(B) Outlays, $49,120,000,000.
Fiscal year 2010:
(A) New budget authority,
$49,220,000,000.
(B) Outlays, $49,449,000,000.
Fiscal year 2011:
(A) New budget authority,
$50,146,000,000.
(B) Outlays, $49,969,000,000.
Fiscal year 2012:
(A) New budget authority,
$51,079,000,000.
(B) Outlays, $50,759,000,000.
(17) General Government (800):
Fiscal year 2007:
(A) New budget authority,
$18,193,000,000.
(B) Outlays, $18,574,000,000.
Fiscal year 2008:
(A) New budget authority,
$18,628,000,000.
(B) Outlays, $19,012,000,000.
Fiscal year 2009:
(A) New budget authority,
$19,254,000,000.
(B) Outlays, $19,323,000,000.
Fiscal year 2010:
(A) New budget authority,
$19,876,000,000.
(B) Outlays, $19,755,000,000.
Fiscal year 2011:
(A) New budget authority,
$20,637,000,000.
(B) Outlays, $20,360,000,000.
Fiscal year 2012:
(A) New budget authority,
$21,349,000,000.
(B) Outlays, $21,183,000,000.
(18) Net Interest (900):
Fiscal year 2007:
(A) New budget authority,
$344,509,000,000.
(B) Outlays, $344,509,000,000.
Fiscal year 2008:
(A) New budget authority,
$370,578,000,000.
(B) Outlays, $370,578,000,000.
Fiscal year 2009:
(A) New budget authority,
$391,056,000,000.
(B) Outlays, $391,056,000,000.
Fiscal year 2010:
(A) New budget authority,
$414,724,000,000.
(B) Outlays, $414,724,000,000.
Fiscal year 2011:
(A) New budget authority,
$433,665,000,000.
(B) Outlays, $433,665,000,000.
Fiscal year 2012:
(A) New budget authority,
$448,597,000,000.
(B) Outlays, $448,597,000,000.
(19) Allowances (920):
Fiscal year 2007:
(A) New budget authority,
$785,000,000.
(B) Outlays, $755,000,000.
Fiscal year 2008:
(A) New budget authority,
-$6,394,000,000.
(B) Outlays, -$2,164,000,000.
Fiscal year 2009:
(A) New budget authority,
-$6,894,000,000.
(B) Outlays, -$6,319,000,000.
Fiscal year 2010:
(A) New budget authority,
-$7,190,000,000.
(B) Outlays, -$6,984,000,000.
Fiscal year 2011:
(A) New budget authority,
-$7,295,000,000.
(B) Outlays, -$7,181,000,000.
Fiscal year 2012:
(A) New budget authority,
-$7,427,000,000.
(B) Outlays, -$7,311,000,000.
(20) Undistributed Offsetting Receipts (950):
Fiscal year 2007:
(A) New budget authority,
-$69,714,000,000.
(B) Outlays, -$69,714,000,000.
Fiscal year 2008:
(A) New budget authority,
-$70,979,000,000.
(B) Outlays, -$70,979,000,000.
Fiscal year 2009:
(A) New budget authority,
-$66,560,000,000.
(B) Outlays, -$66,569,000,000.
Fiscal year 2010:
(A) New budget authority,
-$66,933,000,000.
(B) Outlays, -$66,933,000,000.
Fiscal year 2011:
(A) New budget authority,
-$69,575,000,000.
(B) Outlays, -$69,595,000,000.
Fiscal year 2012:
(A) New budget authority,
-$71,857,000,000.
(B) Outlays, -$71,860,000,000.
(21) Overseas Deployments and Other Activities
(970):
Fiscal year 2007:
(A) New budget authority,
$124,153,000,000.
(B) Outlays, $31,935,000,000.
Fiscal year 2008:
(A) New budget authority,
$145,162,000,000.
(B) Outlays, $115,179,000,000.
Fiscal year 2009:
(A) New budget authority,
$50,000,000,000.
(B) Outlays, $109,830,000,000.
Fiscal year 2010:
(A) New budget authority, $0.
(B) Outlays, $41,722,000,000.
Fiscal year 2011:
(A) New budget authority, $0.
(B) Outlays, $13,551,000,000.
Fiscal year 2012:
(A) New budget authority, $0.
(B) Outlays, $4,505,000,000.
TITLE II--BUDGET PROCESS
SEC. 201. PAY-AS-YOU-GO POINT OF ORDER IN THE SENATE.
(a) Point of Order.--
(1) In general.--It shall not be in order in the
Senate to consider any direct spending or revenue
legislation that would increase the on-budget deficit
or cause an on-budget deficit for either of the
applicable time periods as measured in paragraphs (5)
and (6).
(2) Applicable time periods.--For purposes of this
subsection, the term ``applicable time period'' means
either--
(A) the period of the current fiscal year,
the budget year, and the ensuing 4 fiscal years
following the budget year; or
(B) the period of the current fiscal year,
the budget year, and the ensuing 9 fiscal years
following the budget year.
(3) Direct spending legislation.--For purposes of
this subsection and except as provided in paragraph
(4), the term ``direct spending legislation'' means any
bill, joint resolution, amendment, motion, or
conference report that affects direct spending as that
term is defined by, and interpreted for purposes of,
the Balanced Budget and Emergency Deficit Control Act
of 1985.
(4) Exclusion.--For purposes of this subsection,
the terms ``direct spending legislation'' and ``revenue
legislation'' do not include--
(A) any concurrent resolution on the
budget; or
(B) any provision of legislation that
affects the full funding of, and continuation
of, the deposit insurance guarantee commitment
in effect on the date of enactment of the
Budget Enforcement Act of 1990.
(5) Baseline.--Estimates prepared pursuant to this
subsection shall--
(A) use the baseline surplus or deficit
used for the most recently adopted concurrent
resolution on the budget; and
(B) be calculated under the requirements of
subsections (b) through (d) of section 257 of
the Balanced Budget and Emergency Deficit
Control Act of 1985 (as in effect prior to
September 30, 2002) for fiscal years beyond
those covered by that concurrent resolution on
the budget.
(6) Prior surplus.--If direct spending or revenue
legislation increases the on-budget deficit or causes
an on-budget deficit when taken individually, it must
also increase the on-budget deficit or cause an on-
budget deficit when taken together with all direct
spending and revenue legislation enacted since the
beginning of the calendar year not accounted for in the
baseline under paragraph (5)(A), except that direct
spending or revenue effects resulting in net deficit
reduction enacted in any bill pursuant to a
reconciliation instruction since the beginning of that
same calendar year shall never be made available on the
pay-as-you-go ledger and shall be dedicated only for
deficit reduction.
(b) Supermajority Waiver and Appeals.--
(1) Waiver.--This section may be waived or
suspended in the Senate only by the affirmative vote of
three-fifths of the Members, duly chosen and sworn.
(2) Appeals.--Appeals in the Senate from the
decisions of the Chair relating to any provision of
this section shall be limited to 1 hour, to be equally
divided between, and controlled by, the appellant and
the manager of the bill or joint resolution, as the
case may be. An affirmative vote of three-fifths of the
Members of the Senate, duly chosen and sworn, shall be
required to sustain an appeal of the ruling of the
Chair on a point of order raised under this section.
(c) Determination of Budget Levels.--For purposes of this
section, the levels of new budget authority, outlays, and
revenues for a fiscal year shall be determined on the basis of
estimates made by the Senate Committee on the Budget.
(d) Sunset.--This section shall expire on September 30,
2017.
(e) Repeal.--In the Senate, section 505 of H. Con. Res. 95
(108th Congress), the fiscal year 2004 concurrent resolution on
the budget, shall no longer apply.
SEC. 202. SENATE POINT OF ORDER AGAINST RECONCILIATION LEGISLATION THAT
WOULD INCREASE THE DEFICIT OR REDUCE A SURPLUS.
(a) In General.--It shall not be in order in the Senate to
consider any reconciliation bill, resolution, amendment,
amendment between Houses, motion, or conference report pursuant
to section 310 of the Congressional Budget Act of 1974 that
would cause or increase a deficit or reduce a surplus in either
of the following periods:
(1) The current fiscal year, the budget year, and
the ensuing 4 fiscal years following the budget year.
(2) The current fiscal year, the budget year, and
the ensuing 9 fiscal years following the budget year.
(b) Supermajority Waiver and Appeal in the Senate.--
(1) Waiver.--This section may be waived or
suspended in the Senate only by an affirmative vote of
three-fifths of the Members, duly chosen and sworn.
(2) Appeal.--An affirmative vote of three-fifths of
the Members of the Senate, duly chosen and sworn, shall
be required in the Senate to sustain an appeal of the
ruling of the Chair on a point of order raised under
this section.
(c) Determination of Budget Levels.--For purposes of this
section, the levels of net deficit increases shall be
determined on the basis of estimates provided by the Senate
Committee on the Budget.
SEC. 203. SENATE POINT OF ORDER AGAINST LEGISLATION INCREASING LONG-
TERM DEFICITS.
(a) Congressional Budget Office Analysis of Proposals.--The
Director of the Congressional Budget Office shall, to the
extent practicable, prepare for each bill and joint resolution
reported from committee (except measures within the
jurisdiction of the Committee on Appropriations), and
amendments thereto and conference reports thereon, an estimate
of whether the measure would cause, relative to current law, a
net increase in deficits in excess of $5,000,000,000 in any of
the four 10-year periods beginning in fiscal year 2018 through
fiscal year 2057.
(b) Point of Order.--It shall not be in order in the Senate
to consider any bill, joint resolution, amendment, motion, or
conference report that would cause a net increase in deficits
in excess of $5,000,000,000 in any of the 4 10-year periods
beginning in 2018 through 2057.
(c) Supermajority Waiver and Appeal in the Senate.--
(1) Waiver.--This section may be waived or
suspended only by the affirmative vote of three-fifths
of the Members, duly chosen and sworn.
(2) Appeal.--An affirmative vote of three-fifths of
the Members, duly chosen and sworn, shall be required
to sustain an appeal of the ruling of the Chair on a
point of order raised under this section.
(d) Determinations of Budget Levels.--For purposes of this
section, the levels of net deficit increases shall be
determined on the basis of estimates provided by the Senate
Committee on the Budget.
(e) Repeal.--In the Senate, section 407 of H. Con. Res. 95
(109th Congress), the concurrent resolution on the budget for
fiscal year 2006, shall no longer apply.
(f) Sunset.--This section shall expire on September 30,
2017.
SEC. 204. EMERGENCY LEGISLATION.
(a) Senate.--
(1) Authority to designate.--In the Senate, with
respect to a provision of direct spending or receipts
legislation or appropriations for discretionary
accounts that Congress designates as an emergency
requirement in such measure, the amounts of new budget
authority, outlays, and receipts in all fiscal years
resulting from that provision shall be treated as an
emergency requirement for the purpose of this
subsection.
(2) Exemption of emergency provisions.--Any new
budget authority, outlays, and receipts resulting from
any provision designated as an emergency requirement,
pursuant to this subsection, in any bill, joint
resolution, amendment, or conference report shall not
count for purposes of sections 302 and 311 of the
Congressional Budget Act of 1974 and sections 201, 203,
and 207 of this resolution (relating to pay-as-you-go
in the Senate, long-term deficits, and discretionary
spending limits).
(3) Designations.--If a provision of legislation is
designated as an emergency requirement under this
subsection, the committee report and any statement of
managers accompanying that legislation shall include an
explanation of the manner in which the provision meets
the criteria in paragraph (6).
(4) Definitions.--In this subsection, the terms
``direct spending'', ``receipts'', and ``appropriations
for discretionary accounts'' mean any provision of a
bill, joint resolution, amendment, motion, or
conference report that affects direct spending,
receipts, or appropriations as those terms have been
defined and interpreted for purposes of the Balanced
Budget and Emergency Deficit Control Act of 1985.
(5) Point of order.--
(A) In general.--When the Senate is
considering a bill, resolution, amendment,
motion, or conference report, if a point of
order is made by a Senator against an emergency
designation in that measure, that provision
making such a designation shall be stricken
from the measure and may not be offered as an
amendment from the floor.
(B) Supermajority waiver and appeals.--
(i) Waiver.--Subparagraph (A) may
be waived or suspended in the Senate
only by an affirmative vote of three-
fifths of the Members, duly chosen and
sworn.
(ii) Appeals.--Appeals in the
Senate from the decisions of the Chair
relating to any provision of this
paragraph shall be limited to 1 hour,
to be equally divided between, and
controlled by, the appellant and the
manager of the bill or joint
resolution, as the case may be. An
affirmative vote of three-fifths of the
Members of the Senate, duly chosen and
sworn, shall be required to sustain an
appeal of the ruling of the Chair on a
point of order raised under this
paragraph.
(C) Definition of an emergency
designation.--For purposes of subparagraph (A),
a provision shall be considered an emergency
designation if it designates any item as an
emergency requirement pursuant to this
subsection.
(D) Form of the point of order.--A point of
order under subparagraph (A) may be raised by a
Senator as provided in section 313(e) of the
Congressional Budget Act of 1974.
(E) Conference reports.--When the Senate is
considering a conference report on, or an
amendment between the Houses in relation to, a
bill, upon a point of order being made by any
Senator pursuant to this subsection, and such
point of order being sustained, such material
contained in such conference report shall be
deemed stricken, and the Senate shall proceed
to consider the question of whether the Senate
shall recede from its amendment and concur with
a further amendment, or concur in the House
amendment with a further amendment, as the case
may be, which further amendment shall consist
of only that portion of the conference report
or House amendment, as the case may be, not so
stricken. Any such motion in the Senate shall
be debatable. In any case in which such point
of order is sustained against a conference
report (or Senate amendment derived from such
conference report by operation of this
paragraph), no further amendment shall be in
order.
(6) Criteria.--
(A) In general.--For purposes of this
subsection, any provision is an emergency
requirement if the situation addressed by such
provision is--
(i) necessary, essential, or vital
(not merely useful or beneficial);
(ii) sudden, quickly coming into
being, and not building up over time;
(iii) an urgent, pressing, and
compelling need requiring immediate
action;
(iv) subject to subparagraph (B),
unforeseen, unpredictable, and
unanticipated; and
(v) not permanent, temporary in
nature.
(B) Unforeseen.--An emergency that is part
of an aggregate level of anticipated
emergencies, particularly when normally
estimated in advance, is not unforeseen.
(7) Repeal.--In the Senate, section 402 of H. Con.
Res. 95 (109th Congress), the concurrent resolution on
the budget for fiscal year 2006, shall no longer apply.
(b) House.--In the House, if any bill or joint resolution,
or amendment offered or considered as adopted or conference
report thereon, that makes appropriations for discretionary
amounts, and such amounts are designated as necessary to meet
emergency needs, then the new budget authority and outlays
resulting therefrom shall not be counted for the purposes of
titles III and IV of the Congressional Budget Act of 1974.
SEC. 205. EXTENSION OF ENFORCEMENT OF BUDGETARY POINTS OF ORDER IN THE
SENATE.
Notwithstanding any provision of the Congressional Budget
Act of 1974, subsections (c)(2) and (d)(3) of section 904 of
the Congressional Budget Act of 1974 shall remain in effect for
purposes of Senate enforcement through September 30, 2017, and
Section 403 of H. Con. Res. 95 (109th Congress) shall no longer
apply in the Senate.
SEC. 206. POINT OF ORDER AGAINST ADVANCE APPROPRIATIONS.
(a) Senate.--
(1) In general.--
(A) Point of order.--Except as provided in
paragraph (2), it shall not be in order in the
Senate to consider any bill, joint resolution,
motion, amendment, or conference report that
would provide an advance appropriation.
(B) Definition.--In this subsection, the
term ``advance appropriation'' means any new
budget authority provided in a bill or joint
resolution making appropriations for fiscal
year 2008 that first becomes available for any
fiscal year after 2008, or any new budget
authority provided in a bill or joint
resolution making general appropriations or
continuing appropriations for fiscal year 2009,
that first becomes available for any fiscal
year after 2009.
(2) Exceptions.--Advance appropriations may be
provided--
(A) for fiscal years 2009 and 2010 for
programs, projects, activities, or accounts
identified in the joint explanatory statement
of managers accompanying this resolution under
the heading ``Accounts Identified for Advance
Appropriations'' in an aggregate amount not to
exceed $25,158,000,000 in new budget authority
in each year; and
(B) for the Corporation for Public
Broadcasting.
(3) Supermajority waiver and appeal.--
(A) Waiver.--In the Senate, paragraph (1)
may be waived or suspended only by an
affirmative vote of three-fifths of the
Members, duly chosen and sworn.
(B) Appeal.--An affirmative vote of three-
fifths of the Members of the Senate, duly
chosen and sworn, shall be required to sustain
an appeal of the ruling of the Chair on a point
of order raised under paragraph (1).
(4) Form of point of order.--A point of order under
paragraph (1) may be raised by a Senator as provided in
section 313(e) of the Congressional Budget Act of 1974.
(5) Conference reports.--When the Senate is
considering a conference report on, or an amendment
between the Houses in relation to, a bill, upon a point
of order being made by any Senator pursuant to this
subsection, and such point of order being sustained,
such material contained in such conference report shall
be deemed stricken, and the Senate shall proceed to
consider the question of whether the Senate shall
recede from its amendment and concur with a further
amendment, or concur in the House amendment with a
further amendment, as the case may be, which further
amendment shall consist of only that portion of the
conference report or House amendment, as the case may
be, not so stricken. Any such motion in the Senate
shall be debatable. In any case in which such point of
order is sustained against a conference report (or
Senate amendment derived from such conference report by
operation of this subsection), no further amendment
shall be in order.
(6) Repeal.--In the Senate, section 401 of H. Con.
Res. 95 (109th Congress), the concurrent resolution on
the budget for fiscal year 2006, shall no longer apply.
(b) House.--
(1) In general.--In the House, except as provided
in paragraph (2), a bill or joint resolution making a
general appropriation or continuing appropriation, or
an amendment thereto may not provide for advance
appropriations.
(2) Advance appropriation.--In the House, an
advance appropriation may be provided for fiscal year
2009 or 2010 for programs, projects, activities, or
accounts identified in the joint explanatory statement
of managers accompanying this resolution under the
heading ``Accounts Identified for Advance
Appropriations'' in an aggregate amount not to exceed
$25,558,000,000 in new budget authority.
(3) Definition.--In this subsection, the term
``advance appropriation'' means any new discretionary
budget authority provided in a bill or joint resolution
making general appropriations or any new discretionary
budget authority provided in a bill or joint resolution
continuing appropriations for fiscal year 2008 that
first becomes available for any fiscal year after 2008.
SEC. 207. DISCRETIONARY SPENDING LIMITS, PROGRAM INTEGRITY INITIATIVES,
AND OTHER ADJUSTMENTS.
(a) Senate Point of Order.--
(1) In general.--Except as otherwise provided in
this section, it shall not be in order in the Senate to
consider any bill or joint resolution (or amendment,
motion, or conference report on that bill or joint
resolution) that would cause the discretionary spending
limits in this section to be exceeded.
(2) Supermajority waiver and appeals.--
(A) Waiver.--This subsection may be waived
or suspended in the Senate only by the
affirmative vote of three-fifths of the
Members, duly chosen and sworn.
(B) Appeals.--Appeals in the Senate from
the decisions of the Chair relating to any
provision of this subsection shall be limited
to 1 hour, to be equally divided between, and
controlled by, the appellant and the manager of
the bill or joint resolution. An affirmative
vote of three-fifths of the Members of the
Senate, duly chosen and sworn, shall be
required to sustain an appeal of the ruling of
the Chair on a point of order raised under this
subsection.
(b) Senate Discretionary Spending Limits.--In the Senate
and as used in this section, the term ``discretionary spending
limit'' means--
(1) for fiscal year 2007, $950,504,000,000 in new
budget authority and $1,029,465,000,000 in outlays; and
(2) for fiscal year 2008, $953,052,000,000 in new
budget authority and $1,028,397,000,000 in outlays;
as adjusted in conformance with the adjustment procedures in
subsection (c).
(c) Adjustments in the Senate.--
(1) In general.--After the reporting of a bill or
joint resolution relating to any matter described in
paragraph (2), or the offering of an amendment thereto
or the submission of a conference report thereon--
(A) the Chairman of the Senate Committee on
the Budget may adjust the discretionary
spending limits, budgetary aggregates, and
allocations pursuant to section 302(a) of the
Congressional Budget Act of 1974, by the amount
of new budget authority in that measure for
that purpose and the outlays flowing therefrom;
and
(B) following any adjustment under
subparagraph (A), the Senate Committee on
Appropriations may report appropriately revised
suballocations pursuant to section 302(b) of
the Congressional Budget Act of 1974 to carry
out this subsection.
(2) Matters described.--Matters referred to in
paragraph (1) are as follows:
(A) Continuing disability reviews and ssi
redeterminations.--If a bill or joint
resolution is reported making appropriations
for fiscal year 2008 that appropriates
$264,000,000 for continuing disability reviews
and Supplemental Security Income
redeterminations for the Social Security
Administration, and provides an additional
appropriation of up to $213,000,000 for
continuing disability reviews and Supplemental
Security Income redeterminations for the Social
Security Administration, then the discretionary
spending limits, allocation to the Senate
Committee on Appropriations, and aggregates may
be adjusted by the amounts provided in such
legislation for that purpose, but not to exceed
$213,000,000 in budget authority and outlays
flowing therefrom for fiscal year 2008.
(B) Internal revenue service tax
enforcement.--If a bill or joint resolution is
reported making appropriations for fiscal year
2008 that appropriates $6,822,000,000 for the
Internal Revenue Service for enhanced tax
enforcement to address the Federal tax gap
(taxes owed but not paid) and provides an
additional appropriation of up to $406,000,000
for the Internal Revenue Service for enhanced
tax enforcement to address the Federal tax gap,
then the discretionary spending limits,
allocation to the Senate Committee on
Appropriations, and aggregates may be adjusted
by the amounts provided in such legislation for
that purpose, but not to exceed $406,000,000 in
budget authority and outlays flowing therefrom
for fiscal year 2008.
(C) Health care fraud and abuse control.--
If a bill or joint resolution is reported
making appropriations for fiscal year 2008 that
appropriates up to $383,000,000 to the Health
Care Fraud and Abuse Control program at the
Department of Health and Human Services, then
the discretionary spending limits, allocation
to the Senate Committee on Appropriations, and
aggregates may be adjusted by the amounts
provided in such legislation for that purpose,
but not to exceed $383,000,000 in budget
authority and outlays flowing therefrom for
fiscal year 2008.
(D) Unemployment insurance improper payment
reviews.--If a bill or joint resolution is
reported making appropriations for fiscal year
2008 that appropriates $10,000,000 for in-
person reemployment and eligibility assessments
and unemployment insurance improper payment
reviews, and provides an additional
appropriation of up to $40,000,000 for in-
person reemployment and eligibility assessments
and unemployment insurance improper payment
reviews, then the discretionary spending
limits, allocation to the Senate Committee on
Appropriations, and aggregates may be adjusted
by the amounts provided in such legislation for
that purpose, but not to exceed $40,000,000 in
budget authority and outlays flowing therefrom
for fiscal year 2008.
(E) Costs of overseas deployments and
related activities.--The Chairman of the Senate
Committee on the Budget may adjust the
discretionary spending limits, allocation to
the Senate Committee on Appropriations, and
aggregates for one or more bills, joint
resolutions, motions, amendments, or conference
reports making appropriations for fiscal year
2008 for overseas deployments and related
activities, by the amounts provided in such
legislation for that purpose (and so designated
pursuant to this subparagraph) up to the
amounts of budget authority specified in
Section 103(21) for fiscal year 2008 and the
new outlays flowing therefrom.
(d) House.--
(1) Program integrity initiatives and other
adjustments.--
(A) Continuing disability reviews and
supplemental security income
redeterminations.--If a bill or joint
resolution is reported making appropriations
for fiscal year 2008 that appropriates
$264,000,000 for continuing disability reviews
and Supplemental Security Income
redeterminations for the Social Security
Administration, and provides an additional
appropriation of up to $213,000,000 and the
amount is designated for continuing disability
reviews and Supplemental Security Income
redeterminations for the Social Security
Administration, then the allocation to the
Committee on Appropriations of the House of
Representatives shall be increased by the
amount of the additional budget authority and
outlays flowing from that budget authority for
fiscal year 2008.
(B) Internal revenue service tax
compliance.--If a bill or joint resolution is
reported making appropriations for fiscal year
2008 that appropriates $6,822,000,000 to the
Internal Revenue Service and the amount is
designated to improve compliance with the
provisions of the Internal Revenue Code of 1986
and provides an additional appropriation of up
to $406,000,000, and the amount is designated
to improve compliance with the provisions of
the Internal Revenue Code of 1986, then the
allocation to the Committee on Appropriations
of the House of Representatives shall be
increased by the amount of the additional
budget authority and outlays flowing from that
budget authority for fiscal year 2008.
(C) Health care fraud and abuse control
program.--If a bill or joint resolution is
reported making appropriations for fiscal year
2008 that appropriates up to $383,000,000 and
the amount is designated to the Health Care
Fraud and Abuse Control program at the
Department of Health and Human Services, then
the allocation to the Committee on
Appropriations of the House of Representatives
shall be increased by the amount of additional
budget authority and outlays flowing from that
budget authority for fiscal year 2008.
(D) Unemployment insurance improper payment
reviews.--If a bill or joint resolution is
reported making appropriations for fiscal year
2008 that appropriates $10,000,000 for in-
person reemployment and eligibility assessments
and unemployment insurance improper payment
reviews, and provides an additional
appropriation of up to $40,000,000 for in-
person reemployment and eligibility assessments
and unemployment insurance improper payment
reviews, then the allocation to the Committee
on Appropriations and aggregates may be
adjusted by the amounts provided in such
legislation for that purpose, but not to exceed
$40,000,000 in budget authority and outlays
flowing therefrom for fiscal year 2008.
(E) Costs of overseas deployments and
related activities.--
(i) In the House, if one or more
bills or joint resolutions are reported
making appropriations for fiscal year
2008 for overseas deployments and
related activities (and such amounts
are so designated pursuant to this
clause), then the allocation to the
House Committee on Appropriations and
aggregates may be adjusted by the
amounts provided in such legislation
for that purpose up to the amounts of
budget authority specified in section
103(21) for fiscal year 2008 and the
new outlays flowing therefrom.
(ii) In the House, if one or more
bills or joint resolutions are reported
making appropriations for fiscal year
2008 for overseas deployments and
related activities (and such amounts
are so designated pursuant to this
clause) above the amounts of budget
authority and new outlays specified in
clause (i), then new budget authority,
outlays, or receipts resulting
therefrom shall not count for the
purposes of titles III and IV of the
Congressional Budget Act of 1974.
(2) Procedure for adjustments.--
(A) In general.--After the reporting of a
bill or joint resolution, or an amendment
offered or considered as adopted thereto, or
the submission of a conference report thereon,
the Chairman of the Committee on the Budget
shall make adjustments set forth in paragraph
(1) for the incremental new budget authority in
that measure and the outlays flowing from that
budget authority, if that measure meets the
requirements set forth in paragraph (1), except
that no adjustment shall be made for provisions
exempted for the purposes of titles III and IV
of the Congressional Budget Act of 1974 under
paragraph (1)(E)(ii).
(B) Matters to be adjusted.--The
adjustments referred to in subparagraph (A) are
to be made to--
(i) the allocations made pursuant
to the appropriate concurrent
resolution on the budget pursuant to
section 302(a) of the Congressional
Budget Act of 1974; and
(ii) the budgetary aggregates as
set forth in this resolution.
(e) Oversight of Government Performance.--In the House and
the Senate, all committees are directed to review programs
within their jurisdictions to root out waste, fraud, and abuse
in program spending, giving particular scrutiny to issues
raised by Government Accountability Office reports. Based on
these oversight efforts and committee performance reviews of
programs within their jurisdictions, committees are directed to
include recommendations for improved governmental performance
in their annual views and estimates reports required under
section 301(d) of the Congressional Budget Act of 1974 to the
Committees on the Budget.
(f) Supplemental Appropriations for Fiscal Year 2007.--If
legislation making supplemental appropriations for fiscal year
2007 is enacted, the Chairman of the appropriate Committee on
the Budget shall make the appropriate adjustments in
allocations, aggregates, discretionary spending limits, and
other levels of new budget authority and outlays to reflect the
difference between such measure and the corresponding levels
assumed in this resolution.
SEC. 208. APPLICATION OF PREVIOUS ALLOCATIONS IN THE SENATE.
Section 7035 of Public Law 109-234 shall no longer apply in
the Senate.
SEC. 209. SENATE POINT OF ORDER AGAINST PROVISIONS OF APPROPRIATIONS
LEGISLATION THAT CONSTITUTE CHANGES IN MANDATORY
PROGRAMS WITH NET COSTS.
(a) In General.--In the Senate, it shall not be in order to
consider any appropriations legislation, including any
amendment thereto, motion in relation thereto, or conference
report thereon, that includes any provision which constitutes a
change in a mandatory program producing net costs, as defined
in subsection (b), that would have been estimated as affecting
direct spending or receipts under section 252 of the Balanced
Budget and Emergency Deficit Control Act of 1985 (as in effect
prior to September 30, 2002) were they included in legislation
other than appropriations legislation. A point of order
pursuant to this section shall be raised against such provision
or provisions as described in subsections (e) and (f).
(b) Changes in Mandatory Programs Producing Net Costs.--A
provision or provisions shall be subject to a point of order
pursuant to this section if--
(1) the provision would increase budget authority
in at least 1 of the 9 fiscal years that follow the
budget year and over the period of the total of the
budget year and the 9 fiscal years following the budget
year;
(2) the provision would increase net outlays over
the period of the total of the 9 fiscal years following
the budget year; and
(3) the sum total of all changes in mandatory
programs in the legislation would increase net outlays
as measured over the period of the total of the 9
fiscal years following the budget year.
(c) Determination.--The determination of whether a
provision is subject to a point of order pursuant to this
section shall be made by the Committee on the Budget of the
Senate.
(d) Supermajority Waiver and Appeal.--This section may be
waived or suspended in the Senate only by an affirmative vote
of three-fifths of the Members, duly chosen and sworn. An
affirmative vote of three-fifths of the Members of the Senate,
duly chosen and sworn, shall be required to sustain an appeal
of the ruling of the Chair on a point of order raised under
this section.
(e) General Point of Order.--It shall be in order for a
Senator to raise a single point of order that several
provisions of a bill, resolution, amendment, motion, or
conference report violate this section. The Presiding Officer
may sustain the point of order as to some or all of the
provisions against which the Senator raised the point of order.
If the Presiding Officer so sustains the point of order as to
some of the provisions (including provisions of an amendment,
motion, or conference report) against which the Senator raised
the point of order, then only those provisions (including
provision of an amendment, motion, or conference report)
against which the Presiding Officer sustains the point of order
shall be deemed stricken pursuant to this section. Before the
Presiding Officer rules on such a point of order, any Senator
may move to waive such a point of order as it applies to some
or all of the provisions against which the point of order was
raised. Such a motion to waive is amendable in accordance with
rules and precedents of the Senate. After the Presiding Officer
rules on such a point of order, any Senator may appeal the
ruling of the Presiding Officer on such a point of order as it
applies to some or all of the provisions on which the Presiding
Officer ruled.
(f) Form of the Point of Order.--When the Senate is
considering a conference report on, or an amendment between the
Houses in relation to, a bill, upon a point of order being made
by any Senator pursuant to this section, and such point of
order being sustained, such material contained in such
conference report or amendment shall be deemed stricken, and
the Senate shall proceed to consider the question of whether
the Senate shall recede from its amendment and concur with a
further amendment, or concur in the House amendment with a
further amendment, as the case may be, which further amendment
shall consist of only that portion of the conference report or
House amendment, as the case may be, not so stricken. Any such
motion shall be debatable. In any case in which such point of
order is sustained against a conference report (or Senate
amendment derived from such conference report by operation of
this subsection), no further amendment shall be in order.
(g) Effectiveness.--This section shall not apply to--
(1) legislation making supplemental appropriations
for fiscal year 2007; and
(2) any provision constituting a change in a
mandatory program in appropriations legislation if such
provision has been enacted in each of the 3 fiscal
years prior to the budget year.
SEC. 210. COMPLIANCE WITH SECTION 13301 OF THE BUDGET ENFORCEMENT ACT
OF 1990.
(a) In General.--In the House and the Senate,
notwithstanding section 302(a)(1) of the Congressional Budget
Act of 1974 and section 13301 of the Budget Enforcement Act of
1990, the joint explanatory statement accompanying the
conference report on any concurrent resolution on the budget
shall include in its allocation under section 302(a) of the
Congressional Budget Act of 1974 to the Committee on
Appropriations amounts for the discretionary administrative
expenses of the Social Security Administration.
(b) Special Rule.--In the House, for purposes of applying
section 302(f) of the Congressional Budget Act of 1974,
estimates of the level of total new budget authority and total
outlays provided by a measure shall include any discretionary
amounts provided for the Social Security Administration.
SEC. 211. APPLICATION AND EFFECT OF CHANGES IN ALLOCATIONS AND
AGGREGATES.
(a) Application.--Any adjustments of allocations and
aggregates made pursuant to this resolution shall--
(1) apply while that measure is under
consideration;
(2) take effect upon the enactment of that measure;
and
(3) be published in the Congressional Record as
soon as practicable.
(b) Effect of Changed Allocations and Aggregates.--Revised
allocations and aggregates resulting from these adjustments
shall be considered for the purposes of the Congressional
Budget Act of 1974 as allocations and aggregates contained in
this resolution.
(c) Budget Committee Determinations.--For purposes of this
resolution the levels of new budget authority, outlays, direct
spending, new entitlement authority, revenues, deficits, and
surpluses for a fiscal year or period of fiscal years shall be
determined on the basis of estimates made by the appropriate
Committee on the Budget.
SEC. 212. ADJUSTMENTS TO REFLECT CHANGES IN CONCEPTS AND DEFINITIONS.
Upon the enactment of a bill or joint resolution providing
for a change in concepts or definitions, the Chairman of the
appropriate Committee on the Budget may make adjustments to the
levels and allocations in this resolution in accordance with
section 251(b) of the Balanced Budget and Emergency Deficit
Control Act of 1985 (as in effect prior to September 30, 2002).
SEC. 213. EXERCISE OF RULEMAKING POWERS.
Congress adopts the provisions of this title--
(1) as an exercise of the rulemaking power of the
Senate and House of Representatives, respectively, and
as such they shall be considered as part of the rules
of each House or of that House to which they
specifically apply, and such rules shall supersede
other rules only to the extent that they are
inconsistent with such other rules; and
(2) with full recognition of the constitutional
right of either the Senate or House of Representatives
to change those rules (insofar as they relate to that
House) at any time, in the same manner, and to the same
extent as is the case of any other rule of the Senate
or House of Representatives.
TITLE III--RESERVE FUNDS
SEC. 301. DEFICIT-NEUTRAL RESERVE FUND FOR SCHIP LEGISLATION.
(a) Senate.--
(1) Priority.--The Senate establishes the following
priorities and makes the following findings:
(A) The Senate shall make the enactment of
legislation to reauthorize the State Children's
Health Insurance Program (SCHIP) a top priority
for the remainder of fiscal year 2007, during
the first session of the 110th Congress.
(B) Extending health care coverage to the
Nation's vulnerable uninsured children is an
urgent priority for the Senate.
(C) SCHIP has proven itself a successful
program for covering previously uninsured
children.
(D) More than 6 million children are
enrolled in this landmark program, which has
enjoyed broad bipartisan support in Congress,
among our Nation's governors, and within state
and local governments.
(E) SCHIP reduces the percentage of
children with unmet health care needs.
(F) Since SCHIP was created, enormous
progress has been made in reducing disparities
in children's coverage rates.
(G) Uninsured children who gain coverage
through SCHIP receive more preventive care and
their parents report better access to providers
and improved communications with their
children's doctors.
(H) Congress has a responsibility to
reauthorize SCHIP before the expiration of its
current authorization.
(2) Reserve fund.--In the Senate, the Chairman of
the Senate Committee on the Budget may revise the
allocations, aggregates, and other appropriate levels
in this resolution for a bill, joint resolution,
amendment, motion, or conference report that provides
up to $50,000,000,000 in outlays over the period of the
total of fiscal years 2007 through 2012 for
reauthorization of the State Children's Health
Insurance Program (SCHIP), if such legislation
maintains coverage for those currently enrolled in
SCHIP, continues efforts to enroll uninsured children
who are already eligible for SCHIP or Medicaid but are
not enrolled, or supports States in their efforts to
move forward in covering more children, by the amounts
provided in that legislation for those purposes,
provided that the outlay adjustment shall not exceed
$50,000,000,000 in outlays over the period of the total
of fiscal years 2007 through 2012, and provided that
such legislation would not increase the deficit over
either the period of the total of fiscal years 2007
through 2012 or the period of the total of fiscal years
2007 through 2017.
(b) House Reserve Fund for the State Children's Health
Insurance Program.--The Chairman of the House Committee on the
Budget may revise the allocations of a committee or committees,
aggregates, and other appropriate levels for bills, joint
resolutions, amendments, or conference reports, which contains
matter within the jurisdiction of the Committee on Energy and
Commerce that expands coverage and improves children's health
through the State Children's Health Insurance Program (SCHIP)
under title XXI of the Social Security Act and the program
under title XIX of such Act (commonly known as Medicaid) and
that increases new budget authority that will result in not
more than $50,000,000,000 in outlays in fiscal years 2007
through 2012, and others which contain offsets so designated
for the purpose of this section within the jurisdiction of
another committee or committees, if the combined changes would
not increase the deficit or decrease the surplus for the total
over the period of fiscal years 2007 through 2012 or the period
of fiscal years 2007 through 2017.
SEC. 302. DEFICIT-NEUTRAL RESERVE FUND FOR VETERANS AND WOUNDED
SERVICEMEMBERS.
The Chairman of the appropriate Committee on the Budget may
revise the allocations of a committee or committees,
aggregates, and other appropriate levels in this resolution for
one or more bills, joint resolutions, amendments, motions, or
conference reports which--
(1) enhance medical care and disability benefits
for wounded or disabled military personnel or veterans,
which may include low-vision and blinded veterans;
(2) expand eligibility for Combat-Related Special
Compensation to permit additional disabled retirees to
receive both disability compensation and retired pay;
(3) eliminate the offset between Survivor Benefit
Plan annuities and veterans' dependency and indemnity
compensation;
(4) improve disability evaluations of military
personnel or veterans to expedite the claims process;
(5) enhance educational benefits of veterans; or
(6) provide for or increase benefits to Filipino
veterans of World War II, their survivors and
dependents;
by the amounts provided in such legislation for those purposes
(or, in the House, that contain offsets so designated for those
purposes), provided in the Senate that such legislation would
not increase the deficit over either the period of the total of
fiscal years 2007 through 2012 or the period of the total of
fiscal years 2007 through 2017, and provided further in the
House that such legislation would not increase the deficit or
decrease the surplus for the total over the period of fiscal
years 2007 through 2012 or the period of fiscal years 2007
through 2017.
SEC. 303. DEFICIT-NEUTRAL RESERVE FUND FOR TAX RELIEF.
(a) Senate.--In the Senate, the Chairman of the Senate
Committee on the Budget may revise the aggregates, allocations,
and other appropriate levels in this resolution for one or more
bills, joint resolutions, amendments, motions, or conference
reports that would provide tax relief, including extensions of
expiring tax relief and refundable tax relief, by the amounts
provided in that legislation for those purposes, provided that
such legislation would not increase the deficit over either the
period of the total of fiscal years 2007 through 2012 or the
period of the total of fiscal years 2007 through 2017.
(b) House.--
(1) Reserve fund for reform of the alternative
minimum tax.--The Chairman of the House Committee on
the Budget may revise the allocations of a committee or
committees, aggregates, and other appropriate levels in
this resolution for one or more bills, joint
resolutions, amendments, motions, or conference reports
that provide for reform of the Internal Revenue Code of
1986 by reducing the tax burden of the alternative
minimum tax on middle-income families by the amounts
provided in such legislation for that purpose or that
contain offsets so designated for that purpose,
provided that such legislation would not increase the
deficit or decrease the surplus for the total over the
period of fiscal years 2007 through 2012 or the period
of fiscal years 2007 through 2017.
(2) Reserve fund to provide for middle-income tax
relief and economic equity.--The Chairman of the House
Committee on the Budget may revise the allocations of a
committee or committees, aggregates, and other
appropriate levels in this resolution for one or more
bills, joint resolutions, amendments, motions, or
conference reports that provide for tax relief for
middle-income families and taxpayers and enhanced
economic equity, such as extension of the child tax
credit, extension of marriage penalty relief, extension
of the 10 percent individual income tax bracket,
modification of the Alternative Minimum Tax,
elimination of estate taxes on all but a minute
fraction of estates by reforming and substantially
increasing the unified credit, extension of the
research and experimentation tax credit, extension of
the deduction for State and local sales taxes, and a
tax credit for school construction bonds, by the
amounts provided in such legislation for those purposes
or that contain offsets so designated for those
purposes, provided that such legislation would not
increase the deficit or decrease the surplus for the
total over the period of fiscal years 2007 through 2012
or the period of fiscal years 2007 through 2017.
SEC. 304. DEFICIT-NEUTRAL RESERVE FUND FOR MEDICARE IMPROVEMENTS.
(a) House.--The Chairman of the House Committee on the
Budget may revise the allocations of a committee or committees,
aggregates, and other appropriate levels in this resolution for
one or more bills, joint resolutions, amendments, motions, or
conference reports that improve the Medicare program for
beneficiaries and protect access to care, through measures such
as increasing the reimbursement rate for physicians while
protecting beneficiaries from associated premium increases and
making improvements to the prescription drug program under part
D by the amounts provided in such legislation for those
purposes or that contain offsets so designated for those
purposes, provided that such legislation would not increase the
deficit or decrease the surplus for the total over the period
of fiscal years 2007 through 2012 or the period of fiscal years
2007 through 2017.
(b) Senate.--
(1) Prescription drugs.--In the Senate, the
Chairman of the Senate Committee on the Budget may
revise the aggregates, allocations, and other
appropriate levels in this resolution for a bill, joint
resolution, amendment, motion, or conference report
that repeals the prohibition in section 1860D-11(i)(1)
of the Social Security Act (42 U.S.C. 1395w-111(i)(1))
while preserving access to prescription drugs and price
competition without requiring a particular formulary or
instituting a price structure for reimbursement of
covered Part D drugs, provided that such legislation
would not increase the deficit over either the period
of the total of fiscal years 2007 through 2012 or the
period of the total of fiscal years 2007 through 2017,
and provided further that any savings from the measure
are to be used either to improve the Medicare Part D
benefit or for deficit reduction.
(2) Physician payments.--In the Senate, the
Chairman of the Senate Committee on the Budget may
revise the aggregates, allocations, and other
appropriate levels in this resolution for a bill, joint
resolution, amendment, motion, or conference report
that increases the reimbursement rate for physician
services under section 1848(d) of the Social Security
Act and that includes financial incentives for
physicians to improve the quality and efficiency of
items and services furnished to Medicare beneficiaries
through the use of consensus-based quality measures, by
the amounts provided in such legislation for that
purpose, provided that such legislation would not
increase the deficit over either the period of the
total of fiscal years 2007 through 2012 or the period
of the total of fiscal years 2007 through 2017.
(3) Improvements to medicare part d.--In the
Senate, the Chairman of the Senate Committee on the
Budget may revise the aggregates, allocations, and
other appropriate levels in this resolution for a bill,
joint resolution, amendment, motion, or conference
report that makes improvements to the prescription drug
benefit under Medicare Part D, by the amounts provided
in such legislation for that purpose up to
$5,000,000,000, provided that such legislation would
not increase the deficit over either the period of the
total of fiscal years 2007 through 2012 or the period
of the total of fiscal years 2007 through 2017.
(4) Improving medicare hospital payments.--In the
Senate, the Chairman of the Senate Committee on the
Budget may revise the allocations, aggregates, and
other appropriate levels in this resolution for a bill,
joint resolution, amendment, motion, or conference
report that--
(A) includes provisions to reform the area
wage index used to adjust payments to hospitals
under the Medicare hospital inpatient
prospective payment system under section
1886(d) of the Social Security Act (42 U.S.C.
1395ww(d)); and
(B) includes a transition to the reform
described in subparagraph (A);
provided that such legislation would not increase the
deficit over either the period of the total of fiscal
years 2007 through 2012 or the period of the total of
fiscal years 2007 through 2017.
(c) Senate and House Deficit-Neutral Reserve Fund To
Address Physician and Other Health Care Provider Shortages.--
The Chairman of the appropriate Committee on the Budget may
revise the allocations of a committee or committees,
aggregates, and other appropriate levels in this resolution for
one or more bills, joint resolutions, amendments, motions, or
conference reports that encourage physicians to train in
primary care residencies and attract more physicians and other
health care providers to States that face a shortage of health
care providers by the amounts provided in such legislation for
those purposes (or, in the House, that contain offsets so
designated for those purposes), provided in the Senate that
such legislation would not increase the deficit over either the
period of the total of fiscal years 2007 through 2012 or the
period of the total of fiscal years 2007 through 2017, and
provided further in the House that such legislation would not
increase the deficit or decrease the surplus for the total over
the period of fiscal years 2007 through 2012 or the period of
fiscal years 2007 through 2017.
SEC. 305. DEFICIT NEUTRAL RESERVE FUNDS FOR HEALTH CARE QUALITY,
EFFECTIVENESS, EFFICIENCY, AND TRANSPARENCY.
(a) Health Information Technology.--
(1) The Chairman of the appropriate Committee on
the Budget may revise the allocations of a committee or
committees, aggregates, and other appropriate levels in
this resolution for one or more bills, joint
resolutions, amendments, motions, or conference reports
that provide incentives or other support for adoption
of modern information technology to improve quality and
protect privacy in health care, by the amounts provided
in such legislation for that purpose (or, in the House,
that contain offsets so designated for that purpose),
provided in the Senate that such legislation would not
increase the deficit over either the period of the
total of fiscal years 2007 through 2012 or the period
of the total of fiscal years 2007 through 2017, and
provided further in the House that such legislation
would not increase the deficit or decrease the surplus
for the total over the period of fiscal years 2007
through 2012 or the period of fiscal years 2007 through
2017.
(2) The Chairman of the appropriate Committee on
the Budget may revise the allocations of a committee or
committees, aggregates, and other appropriate levels in
this resolution for one or more bills, joint
resolutions, amendments, motions, or conference reports
that provide incentives for Medicare providers or
suppliers to comply with, where available and medically
appropriate, clinical protocols identified as best
practices, by the amounts provided in such legislation
for that purpose (or, in the House, that contain
offsets so designated for that purpose), provided in
the Senate that such legislation would not increase the
deficit over either the period of the total of fiscal
years 2007 through 2012 or the period of the total of
fiscal years 2007 through 2017, and provided further in
the House that such legislation would not increase the
deficit or decrease the surplus for the total over the
period of fiscal years 2007 through 2012 or the period
of fiscal years 2007 through 2017.
(b) Comparative Effectiveness Research.--The Chairman of
the appropriate Committee on the Budget may revise the
allocations of a committee or committees, aggregates, and other
appropriate levels in this resolution for one or more bills,
joint resolutions, amendments, motions, or conference reports
that establish a new Federal or public-private initiative for
comparative effectiveness research, by the amounts provided in
such legislation for that purpose (or, in the House, that
contain offsets so designated for that purpose), provided in
the Senate that such legislation would not increase the deficit
over either the period of the total of fiscal years 2007
through 2012 or the period of the total of fiscal years 2007
through 2017, and provided further in the House that such
legislation would not increase the deficit or decrease the
surplus for the total over the period of fiscal years 2007
through 2012 or the period of fiscal years 2007 through 2017.
(c) Improving the Health Care System.--In the Senate, the
Chairman of the Senate Committee on the Budget may revise the
allocations, aggregates, and other levels in this resolution
for a bill, joint resolution, motion, amendment, or conference
report that--
(1) creates a framework and parameters for the use
of Medicare data for the purpose of conducting
research, public reporting, and other activities to
evaluate health care safety, effectiveness, efficiency,
quality, and resource utilization in Federal programs
and the private health care system; and
(2) includes provisions to protect beneficiary
privacy and to prevent disclosure of proprietary or
trade secret information with respect to the transfer
and use of such data;
provided that such legislation would not increase the deficit
over either the period of the total of fiscal years 2007
through 2012 or the period of the total of fiscal years 2007
through 2017.
SEC. 306. DEFICIT-NEUTRAL RESERVE FUND FOR HIGHER EDUCATION.
(a) Senate.--In the Senate, the Chairman of the Senate
Committee on the Budget may revise the aggregates, allocations,
and other appropriate levels in this resolution for one or more
bills, joint resolutions, amendments, motions, or conference
reports that would make higher education more accessible and
more affordable, which may include tax benefits, by the amounts
provided in such legislation for that purpose, provided that
such legislation would not increase the deficit over either the
period of the total of fiscal years 2007 through 2012 or the
period of the total of fiscal years 2007 through 2017.
(b) House.--The Chairman of the House Committee on the
Budget may revise the allocations of a committee or committees,
aggregates, and other appropriate levels in this resolution for
one or more bills, joint resolutions, amendments, motions, or
conference reports that make college more affordable through
reforms to the Higher Education Act of 1965 or other
legislation by the amounts provided in such legislation for
that purpose or that contain offsets so designated for that
purpose, provided that such legislation would not increase the
deficit or decrease the surplus for the total over the period
of fiscal years 2007 through 2012 or the period of fiscal years
2007 through 2017.
SEC. 307. DEFICIT-NEUTRAL RESERVE FUND FOR THE FARM BILL.
(a) Senate.--The Chairman of the Senate Committee on the
Budget may revise the allocations, aggregates, and other
appropriate levels in this resolution for one or more bills,
joint resolutions, amendments, motions, or conference reports
that provide for the reauthorization of the programs of the
Food Security and Rural Investment Act of 2002 or prior Acts,
authorize similar or related programs, provide for revenue
changes, or any combination of the preceding purposes, by the
amounts provided in such legislation for those purposes up to
$20,000,000,000 over the period of the total of fiscal years
2007 through 2012, provided that such legislation would not
increase the deficit over either the period of the total of
fiscal years 2007 through 2012 or the period of the total of
fiscal years 2007 through 2017.
(b) House.--The Chairman of the House Committee on the
Budget may revise the allocations of a committee or committees,
aggregates, and other appropriate levels in this resolution for
one or more bills, joint resolutions, amendments, motions, or
conference reports that provide for the reauthorization of the
programs of the Food Security and Rural Investment Act of 2002
or prior Acts, authorize similar or related programs, or both,
by the amounts provided in such legislation for those purposes
or that contain offsets so designated for those purposes up to
$20,000,000,000 for the total over the period of fiscal years
2007 through 2012, provided that such legislation would not
increase the deficit or decrease the surplus for the total over
the period of fiscal years 2007 through 2012 or the period of
fiscal years 2007 through 2017.
SEC. 308. DEFICIT-NEUTRAL RESERVE FUND FOR ENERGY LEGISLATION.
(a) Senate.--In the Senate, the Chairman of the Senate
Committee on the Budget may revise the allocations, aggregates,
and other appropriate levels and limits in this resolution for
one or more bills, joint resolutions, amendments, motions, or
conference reports that would reduce our Nation's dependence on
foreign sources of energy, expand production and use of clean
alternative fuels and alternative fuel vehicles, promote
renewable energy development, improve electricity transmission,
encourage responsible development of domestic oil and natural
gas resources, or reward conservation and efficiency, by the
amounts provided in that legislation for those purposes,
provided that such legislation would not increase the deficit
over either the period of the total of fiscal years 2007
through 2012 or the period of the total of fiscal years 2007
through 2017. The legislation may include tax legislation such
as a proposal to extend energy tax incentives like the
production tax credit for electricity produced from renewable
resources, the Clean Renewable Energy Bond program, or
provisions to encourage energy efficient buildings, products,
and power plants.
(b) House.--
(1) The Chairman of the House Committee on the
Budget shall revise the allocations of a committee or
committees, aggregates, and other appropriate levels in
this resolution for one or more bills, joint
resolutions, amendments, motions, or conference reports
that fulfill the purposes of section 301(a) of H.R. 6,
the Clean Energy Act of 2007 by the amounts provided in
such legislation for those purposes or that contain
offsets so designated for those purposes, provided that
such legislation would not increase the deficit or
decrease the surplus for the total over the period of
fiscal years 2007 through 2012 or the period of fiscal
years 2007 through 2017.
(2) The Chairman of the House Committee on the
Budget shall revise the allocations provided for under
section 302(a) of the Congressional Budget Act of 1974
to the Committee on Appropriations to the extent that
any bills, joint resolutions, amendments, motions, or
conference reports provide budget authority for
purposes set forth in section 301(a) of H.R. 6 in
excess of the amounts provided for those purposes in
fiscal year 2007. Any adjustments made under this
paragraph shall not include revenues attributable to
changes in the Internal Revenue Code of 1986 and shall
not exceed the receipts estimated by the Congressional
Budget Office that are attributable to H.R. 6 for the
year in which the adjustments are made.
SEC. 309. DEFICIT-NEUTRAL RESERVE FUND FOR COUNTY PAYMENTS LEGISLATION.
The Chairman of the appropriate Committee on the Budget may
revise the allocations of a committee or committees,
aggregates, and other appropriate levels and limits in this
resolution for one or more bills, joint resolutions,
amendments, motions, or conference reports that provide for the
reauthorization of the Secure Rural Schools and Community Self-
Determination Act of 2000 (Public Law 106-393), make changes to
the Payments in Lieu of Taxes Act of 1976 (Public Law 94-565),
or both, by the amounts provided by that legislation for those
purposes (or, in the House, that contain offsets so designated
for those purposes), provided in the Senate that such
legislation would not increase the deficit over either the
period of the total of fiscal years 2007 through 2012 or the
period of the total of fiscal years 2007 through 2017, and
provided further in the House that such legislation would not
increase the deficit or decrease the surplus for the total over
the period of fiscal years 2007 through 2012 or the period of
fiscal years 2007 through 2017.
SEC. 310. DEFICIT-NEUTRAL RESERVE FUND FOR TERRORISM RISK INSURANCE
REAUTHORIZATION.
The Chairman of the appropriate Committee on the Budget may
revise the allocations of a committee or committees,
aggregates, and other levels in this resolution for one or more
bills, joint resolutions, amendments, motions, or conference
reports that provide for a continued Federal role in ensuring
the availability of terrorism insurance after the expiration of
the Terrorism Risk Insurance Extension Act, by the amounts
provided in such legislation for that purpose (or, in the
House, that contain offsets so designated for that purpose),
provided in the Senate that such legislation would not increase
the deficit over either the period of the total of fiscal years
2007 through 2012 or the period of the total of fiscal years
2007 through 2017, and provided further in the House that such
legislation would not increase the deficit or decrease the
surplus for the total over the period of fiscal years 2007
through 2012 or the period of fiscal years 2007 through 2017.
SEC. 311. DEFICIT-NEUTRAL RESERVE FUND FOR AFFORDABLE HOUSING.
The Chairman of the appropriate Committee on the Budget may
revise the allocations of a committee or committees,
aggregates, and other levels in this resolution for one or more
bills, joint resolutions, amendments, motions, or conference
reports that would establish an affordable housing fund
financed by the housing government sponsored enterprises, by
the amounts provided in such legislation for that purpose (or,
in the House, that contain offsets so designated for that
purpose), provided in the Senate that such legislation would
not increase the deficit over either the period of the total of
fiscal years 2007 through 2012 or the period of the total of
fiscal years 2007 through 2017, and provided further in the
House that such legislation would not increase the deficit or
decrease the surplus for the total over the period of fiscal
years 2007 through 2012 or the period of fiscal years 2007
through 2017.
SEC. 312. DEFICIT-NEUTRAL RESERVE FUND FOR RECEIPTS FROM BONNEVILLE
POWER ADMINISTRATION.
The Chairman of the appropriate Committee on the Budget may
adjust the allocations of a committee or committees,
aggregates, and other appropriate levels and limits in this
resolution for one or more bills, joint resolutions,
amendments, motions, or conference reports that prohibit the
Bonneville Power Administration from making early payments on
its Federal Bond Debt to the United States Treasury, by the
amounts provided by that legislation for that purpose (or, in
the House, that contain offsets so designated for that
purpose), provided in the Senate that such legislation would
not increase the deficit over either the period of the total of
fiscal years 2007 through 2012 or the period of the total of
fiscal years 2007 through 2017, and provided further in the
House that such legislation would not increase the deficit or
decrease the surplus for the total over the period of fiscal
years 2007 through 2012 or the period of fiscal years 2007
through 2017.
SEC. 313. DEFICIT-NEUTRAL RESERVE FUND FOR INDIAN CLAIMS SETTLEMENT.
The Chairman of the appropriate Committee on the Budget may
revise the allocations of a committee or committees,
aggregates, and other appropriate levels in this resolution for
one or more bills, joint resolutions, amendments, motions, or
conference reports that--
(1) create an Indian claims settlement fund for
trust accounting and management deficiencies related to
Individual Indian Moneys and assets; and
(2) extinguish all claims arising before the date
of enactment for losses resulting from accounting
errors, mismanagement of assets, or interest owed in
connection with Individual Indian Moneys accounts;
by the amounts provided in such legislation for those purposes
up to $8,000,000,000 (or, in the House, that contain offsets so
designated for those purposes), provided in the Senate that
such legislation would not increase the deficit over either the
period of the total of fiscal years 2007 through 2012 or the
period of the total of fiscal years 2007 through 2017, and
provided further in the House that such legislation would not
increase the deficit or decrease the surplus for the total over
the period of fiscal years 2007 through 2012 or the period of
fiscal years 2007 through 2017.
SEC. 314. DEFICIT-NEUTRAL RESERVE FUND FOR IMPROVEMENTS IN HEALTH.
(a) Health Insurance Coverage.--The Chairman of the
appropriate Committee on the Budget may revise the allocations
of a committee or committees, aggregates, and other appropriate
levels in this resolution for one or more bills, joint
resolutions, amendments, motions, or conference reports that
make health insurance coverage more affordable or available to
small businesses and their employees, through pooling
arrangements that provide appropriate consumer protections, by
the amounts provided in such legislation for that purpose (or,
in the House, that contain offsets so designated for that
purpose), provided in the Senate that such legislation would
not increase the deficit over either the period of the total of
fiscal years 2007 through 2012 or the period of the total of
fiscal years 2007 through 2017, and provided further in the
House that such legislation would not increase the deficit or
decrease the surplus for the total over the period of fiscal
years 2007 through 2012 or the period of fiscal years 2007
through 2017.
(b) Health Coverage.--If a SCHIP reauthorization bill is
enacted, then the Chairman of the appropriate Committee on the
Budget may revise the allocations of a committee or committees,
aggregates, and other appropriate levels in this resolution for
one or more bills, joint resolutions, amendments, motions, or
conference reports to improve health care, and provide quality
health insurance for the uninsured and underinsured, and
protect individuals with current health coverage, by the
amounts provided in that legislation for that purpose (or, in
the House, that contain offsets so designated for that
purpose), provided in the Senate that such legislation would
not increase the deficit over either the period of the total of
fiscal years 2007 through 2012 or the period of the total of
fiscal years 2007 through 2017, and provided further in the
House that such legislation would not increase the deficit or
decrease the surplus for the total over the period of fiscal
years 2007 through 2012 or the period of fiscal years 2007
through 2017.
(c) Long-Term Care.--The Chairman of the appropriate
Committee on the Budget may revise the allocations of a
committee or committees, aggregates, and other levels in this
resolution for one or more bills, joint resolutions,
amendments, motions, or conference reports that would improve
long-term care, enhance the safety and dignity of patients,
encourage appropriate use of institutional and community-based
care, promote quality care, or provide for the cost-effective
use of public resources, by the amounts provided in such
legislation for that purpose (or, in the House, that contain
offsets so designated for that purpose), provided in the Senate
that such legislation would not increase the deficit over
either the period of the total of fiscal years 2007 through
2012 or the period of the total of fiscal years 2007 through
2017, and provided further in the House that such legislation
would not increase the deficit or decrease the surplus for the
total over the period of fiscal years 2007 through 2012 or the
period of fiscal years 2007 through 2017.
(d) Mental Health Parity.--The Chairman of the appropriate
Committee on the Budget may revise the allocations of a
committee or committees, aggregates, and other appropriate
levels in this resolution for one or more bills, joint
resolutions, amendments, motions, or conference reports that
would provide parity between health insurance coverage of
mental health benefits and benefits for medical and surgical
services, including parity in public programs, by the amounts
provided in such legislation for that purpose (or, in the
House, that contain offsets so designated for that purpose),
provided in the Senate that such legislation would not increase
the deficit over either the period of the total of fiscal years
2007 through 2012 or the period of the total of fiscal years
2007 through 2017, and provided further in the House that such
legislation would not increase the deficit or decrease the
surplus for the total over the period of fiscal years 2007
through 2012 or the period of fiscal years 2007 through 2017.
SEC. 315. DEFICIT-NEUTRAL RESERVE FUND FOR CHILD CARE.
The Chairman of the appropriate Committee on the Budget may
revise the allocations of a committee or committees,
aggregates, and other appropriate levels in this resolution for
one or more bills, joint resolutions, amendments, motions, or
conference reports that provide up to $5,000,000,000 for the
child care entitlement to States, by the amounts provided by
such legislation for that purpose (or, in the House, that
contain offsets so designated for that purpose), provided in
the Senate that such legislation would not increase the deficit
over either the period of the total of fiscal years 2007
through 2012 or the period of the total of fiscal years 2007
through 2017, and provided further in the House that such
legislation would not increase the deficit or decrease the
surplus for the total over the period of fiscal years 2007
through 2012 or the period of fiscal years 2007 through 2017.
SEC. 316. DEFICIT-NEUTRAL RESERVE FUND FOR IMMIGRATION REFORM IN THE
SENATE.
The Chairman of the Senate Committee on the Budget may
revise the allocations of a committee or committees,
aggregates, and other levels in this resolution for one or more
bills, joint resolutions, amendments, motions, or conference
reports that provide for immigration reform by the amounts
provided in such legislation for those purposes, provided that
such legislation would not increase the deficit over either the
period of the total of fiscal years 2007 through 2012 or the
period of the total of fiscal years 2007 through 2017.
SEC. 317. DEFICIT-REDUCTION RESERVE FUND.
(a) Reduction of Improper Payments.--The Chairman of the
appropriate Committee on the Budget may revise the allocations
of a committee or committees, aggregates, and other appropriate
levels and limits in this resolution upon enactment of
legislation that achieves savings by eliminating or reducing
improper payments made by agencies reporting improper payments
estimates under the Improper Payments Information Act of 2002
and uses such savings to reduce the deficit (or, in the House,
that contain offsets so designated for that purpose), provided
in the Senate that such legislation would not increase the
deficit over either the period of the total of fiscal years
2007 through 2012 or the period of the total of fiscal years
2007 through 2017, and provided further in the House that such
legislation would not increase the deficit or decrease the
surplus for the total over the period of fiscal years 2007
through 2012 or the period of fiscal years 2007 through 2017.
(b) Increased Use of Recovery Audits.--The Chairman of the
appropriate Committee on the Budget may revise the allocations
of a committee or committees, aggregates, and other appropriate
levels and limits in this resolution upon enactment of
legislation that achieves savings by requiring that agencies
increase their use of the recovery audits authorized by the
Erroneous Payments Recovery Act of 2001 (section 831 of the
National Defense Authorization Act for fiscal year 2002) and
uses such savings to reduce the deficit (or, in the House, that
contain offsets so designated for that purpose), provided in
the Senate that such legislation would not increase the deficit
over either the period of the total of fiscal years 2007
through 2012 or the period of the total of fiscal years 2007
through 2017, and provided further in the House that such
legislation would not increase the deficit or decrease the
surplus for the total over the period of fiscal years 2007
through 2012 or the period of fiscal years 2007 through 2017.
SEC. 318. DEFICIT-NEUTRAL RESERVE FUND FOR MANUFACTURING INITIATIVES IN
THE SENATE.
In the Senate, the Chairman of the Senate Committee on the
Budget may revise the allocations, aggregates, and other
appropriate levels in this resolution for one or more bills,
joint resolutions, amendments, motions, or conference reports,
including tax legislation, that would revitalize the United
States domestic manufacturing sector by increasing Federal
research and development, by expanding the scope and
effectiveness of manufacturing programs across the Federal
government, by increasing support for development of
alternative fuels and leap-ahead automotive and energy
technologies, and by establishing tax incentives to encourage
the continued production in the United States of advanced
technologies and the infrastructure to support such
technologies, by the amounts provided in that legislation for
those purposes, provided that such legislation would not
increase the deficit over either the period of the total of
fiscal years 2007 through 2012 or the period of the total of
fiscal years 2007 through 2017.
SEC. 319. DEFICIT-NEUTRAL RESERVE FUND FOR THE FOOD AND DRUG
ADMINISTRATION IN THE SENATE.
(a) Regulation.--In the Senate, the Chairman of the Senate
Committee on the Budget may revise the allocations, aggregates,
and other appropriate levels in this resolution for a bill,
joint resolution, motion, amendment, or conference report that
authorizes the Food and Drug Administration to regulate
products and assess user fees on manufacturers and importers of
those products to cover the cost of the Food and Drug
Administration's regulatory activities, by the amounts provided
in that legislation for those purposes, provided that such
legislation would not increase the deficit over either the
period of the total of fiscal years 2007 through 2012 or the
period of the total of fiscal years 2007 through 2017.
(b) Drug Importation.--In the Senate, the Chairman of the
Senate Committee on the Budget may revise the aggregates,
allocations, and other levels in this resolution for a bill,
joint resolution, motion, amendment, or conference report that
permits the safe importation of prescription drugs approved by
the Food and Drug Administration from a specified list of
countries, by the amounts provided in such legislation for that
purpose, provided that such legislation would not increase the
deficit over either the period of the total of fiscal years
2007 through 2012 or the period of the total of fiscal years
2007 through 2017.
SEC. 320. DEFICIT-NEUTRAL RESERVE FUND FOR MEDICAID.
(a) Delay of Rule.--The Chairman of the appropriate
Committee on the Budget may revise the allocations, aggregates,
and other appropriate levels in this resolution for a bill,
joint resolution, amendment, motion, or conference report that
provides for a delay in the implementation of the proposed rule
published on January 18, 2007, on pages 2236 through 2248 of
volume 72, Federal Register (relating to parts 433, 447, and
457 of title 42, Code of Federal Regulations) or any other rule
that would affect the Medicaid program or SCHIP in a similar
manner, or place restrictions on coverage of or payment for
graduate medical education, rehabilitation services, or school-
based administration, transportation, or medical services under
title XIX of the Social Security Act by the amounts provided in
that legislation for that purpose (or, in the House, that
contain offsets so designated for that purpose), provided in
the Senate that such legislation would not increase the deficit
over either the total of the period of fiscal years 2007
through 2012 or the total of the period of fiscal years 2007
through 2017, and provided further in the House that such
legislation would not increase the deficit or decrease the
surplus for the total over the period of fiscal years 2007
through 2012 or the period of fiscal years 2007 through 2017.
(b) Demonstration Project Regarding Medicaid Coverage of
Low-Income HIV-Infected Individuals.--The Chairman of the
appropriate Committee on the Budget may revise the allocations,
aggregates, and other appropriate levels in this resolution for
a bill, joint resolution, amendment, motion, or conference
report that provides for a demonstration project under which a
State may apply under section 1115 of the Social Security Act
(42 U.S.C. 1315) to provide medical assistance under a State
Medicaid program to HIV-infected individuals who are not
eligible for medical assistance under such program under
section 1902(a)(10)(A)(I) of the Social Security Act (42 U.S.C.
1396a(a)(10)(A)(I)), by the amounts provided in that
legislation for those purposes up to $500,000,000 (or, in the
House, that contain offsets so designated for those purposes),
provided in the Senate that such legislation would not increase
the deficit over either the total of the period of fiscal years
2007 through 2012 or the total of the period of fiscal years
2007 through 2017, and provided further in the House that such
legislation would not increase the deficit or decrease the
surplus for the total over the period of fiscal years 2007
through 2012 or the period of fiscal years 2007 through 2017.
(c) Transitional Medical Assistance.--The Chairman of the
appropriate Committee on the Budget may revise the allocations
of a committee or committees, aggregates, and other appropriate
levels in this resolution for one or more bills, joint
resolutions, amendments, motions or conference reports that
extend the Transitional Medical Assistance program, included in
title XIX of the Social Security Act, by the amounts provided
in such legislation for that purpose (or, in the House, that
contain offsets so designated for that purpose), provided in
the Senate that such legislation would not increase the deficit
over either the total of the period of fiscal years 2007
through 2012 or the total of the period of fiscal years 2007
through 2017, and provided further in the House that such
legislation would not increase the deficit or decrease the
surplus for the total over the period of fiscal years 2007
through 2012 or the period of fiscal years 2007 through 2017.
SEC. 321. RESERVE FUND ADJUSTMENT FOR REVENUE MEASURES IN THE HOUSE.
In the House, for the duration of the 110th Congress with
respect to consideration of any bill, joint resolution,
amendment, motion, or conference report that would decrease
total revenues for the single period comprising the budget year
and the following 4 fiscal years below the Congressional Budget
Office baseline for the most recent concurrent resolution on
the budget, the Chairman of the House Committee on the Budget
shall increase the revenue aggregates by $179,816,000,000 for
the total over the period of fiscal years 2008 through 2012, if
the Chairman determines that such legislation does not contain
a provision consistent with the provision set forth in the
joint explanatory statement of managers accompanying this
concurrent resolution. The Chairman may readjust such levels
upon disposition of any measure in violation of this section.
SEC. 322. DEFICIT-NEUTRAL RESERVE FUND FOR SAN JOAQUIN RIVER
RESTORATION AND NAVAJO NATION WATER RIGHTS
SETTLEMENTS.
The Chairman of the appropriate Committee on the Budget may
revise the allocations of a committee or committees,
aggregates, and other appropriate levels in this resolution for
one or more bills, joint resolutions, amendments, motions, or
conference reports that would fulfill the purposes of the San
Joaquin River Restoration Settlement Act, implement a Navajo
Nation water rights settlement as authorized by the
Northwestern New Mexico Rural Water Projects Act, or both, by
the amounts provided by that legislation for those purposes
(or, in the House, that contain offsets so designated for those
purposes), provided in the Senate that such legislation would
not increase the deficit over either the period of the total of
fiscal years 2007 through 2012 or the period of the total of
fiscal years 2007 through 2017, and provided further in the
House that such legislation would not increase the deficit or
decrease the surplus for the total over the period of fiscal
years 2007 through 2012 or the period of fiscal years 2007
through 2017.
SEC. 323. DEFICIT-NEUTRAL RESERVE FUND FOR SELECTED TAX RELIEF POLICIES
IN THE SENATE.
The Chairman of the Senate Committee on the Budget may
revise the aggregates, allocations, and other appropriate
levels in this resolution for one or more bills, joint
resolutions, amendments, motions, or conference reports that
would provide tax relief by extending the State and local sales
tax deduction, extending enhanced charitable giving from
individual retirement accounts, reauthorizing the new markets
tax credit under section 45D of the Internal Revenue Code of
1986, or extending and increasing the above-the-line deduction
for teacher classroom supplies and expanding it to include
qualified professional development expenses, by the amounts
provided in that legislation for those purposes, provided that
such legislation would not increase the deficit over either the
period of the total of fiscal years 2007 through 2012 or the
period of the total of fiscal years 2007 through 2017.
TITLE IV--POLICY
SEC. 401. POLICY ON MIDDLE-INCOME TAX RELIEF.
(a) In the House.--
(1) In general.--It is the policy of the House to
minimize fiscal burdens on middle-income families and
their children and grandchildren. It is the policy of
the House to provide immediate relief for the tens of
millions of middle-income households who would
otherwise be subject to the Alternative Minimum Tax
under current law. Furthermore, it is the policy of the
House to support extension of middle-income tax relief
and enhanced economic equity through policies such as--
(A) extension of the child tax credit;
(B) extension of marriage penalty relief;
(C) extension of the 10 percent individual
income tax bracket;
(D) elimination of estate taxes on all but
a minute fraction of estates by reforming and
substantially increasing the unified tax
credit;
(E) extension of the research and
experimentation tax credit;
(F) extension of the deduction for State
and local sales taxes;
(G) extension of the deduction for small
business expensing; and
(H) enactment of a tax credit for school
construction bonds.
(2) Other matters.--The House assumes the cost of
enacting such policies is offset by reforms within the
Internal Revenue Code of 1986 that promote economic
efficiency, higher rates of tax compliance to close the
``tax gap'', and reduced taxpayer burdens through tax
simplification.
(b) In the Senate.--
(1) In general.--The Senate adopted by a vote of 97
to 1 an amendment to S. Con. Res. 21 as reported by the
Senate Committee on the Budget which, with regard to
tax relief, reduced the revenue aggregates by
$179,816,000,000 to provide for--
(A) extension of the child tax credit;
(B) extension of marriage penalty relief;
(C) extension of the 10 percent individual
income tax bracket;
(D) reform of the estate tax to protect
small businesses and family farms;
(E) extension of the adoption tax credit;
(F) extension of the dependent care tax
credit;
(G) extension of the treatment of combat
pay for purposes of determining the Earned
Income Tax Credit; and
(H) other, unspecified tax relief.
(2) Policy.--It is the policy of the Senate that
this resolution supports both the enactment of the
policies listed in paragraph (1) and the Senate pay-as-
you-go rule in section 201, and that any additional
revenues needed to meet the Senate's tax policy goals
can be achieved by closing the tax gap, shutting down
abusive tax shelters, addressing offshore tax havens,
and without raising taxes.
SEC. 402. POLICY ON DEFENSE PRIORITIES.
It is the policy of this resolution that--
(1) implementing the recommendation of the National
Commission on Terrorist Attacks Upon the United States
(commonly referred to as the 9/11 Commission) to
adequately fund cooperative threat reduction and
nuclear nonproliferation programs should receive higher
priority than the President's budget provides;
(2) TRICARE fees for military retirees under the
age of 65 should remain at current levels;
(3) military pay and benefits should be enhanced to
improve retention of experienced personnel;
(4) the recommendations of the bipartisan ``Walter
Reed Commission'' (the President's Commission on Care
for America's Returning Wounded Warriors) and other
United States Government investigations into military
healthcare facilities and services should be funded;
(5) higher priority defense needs could be
addressed by funding missile defense at an adequate but
lower level, not providing funding for development of
space-based missile defense interceptors, and by
restraining excessive cost and schedule growth in
defense research, development and procurement programs;
(6) sufficient resources should be provided for the
Department of Defense to do a more careful job of
addressing as many as possible of the 1,378
unimplemented recommendations made by the Government
Accountability Office over the last 6 years to improve
practices at the Department of Defense, including
investigation of the billions of dollars of
obligations, disbursements and overcharges for which
the Department of Defense cannot account; and
(7) savings from the actions recommended in
paragraphs (5) and (6) of this section should be used
to fund the priorities identified in paragraphs (1)
through (4) in this section.
SEC. 403. POLICY ON COLLEGE AFFORDABILITY.
It is the policy of this resolution that nothing in this
resolution should be construed to reduce any assistance that
makes college more affordable for students, including but not
limited to assistance to student aid programs run by nonprofit
state agencies.
TITLE V--SENSE OF THE HOUSE AND SENSE OF CONGRESS
SEC. 501. SENSE OF CONGRESS ON SERVICEMEMBERS' AND VETERANS' HEALTH
CARE AND OTHER PRIORITIES.
It is the sense of Congress that--
(1) Congress supports excellent health care for
current and former members of the United States Armed
Services, who have served well and honorably and have
made significant sacrifices for this Nation;
(2) this resolution provides $43,125,000,000 in
discretionary budget authority for 2008 for Function
700 (Veterans Benefits and Services), including
veterans' health care, which is $6,668,000,000 more
than the 2007 level, $5,474,000,000 more than the
Congressional Budget Office's baseline level for 2008,
and $3,576,000,000 more than the President's budget for
2008;
(3) this resolution provides funding to implement,
in part, recommendations of the bi-partisan ``Walter
Reed Commission'' (the President's Commission on Care
for America's Returning Wounded Warriors) and other
United States Government investigations into military
and veterans health care facilities and services;
(4) this resolution assumes the rejection of the
enrollment fees and co-payment increases in the
President's budget;
(5) this resolution provides additional funding
above the President's inadequate budget levels for the
Department of Veterans Affairs to research and treat
veterans' mental health, post-traumatic stress
disorder, and traumatic brain and spinal cord injuries;
and
(6) this resolution provides additional funding
above the President's inadequate budget levels for the
Department of Veterans Affairs to improve the speed and
accuracy of its processing of disability compensation
claims, including funding to hire additional personnel
above the President's requested level.
SEC. 502. SENSE OF CONGRESS ON THE INNOVATION AGENDA: A COMMITMENT TO
COMPETITIVENESS TO KEEP AMERICA #1.
(a) It is the sense of Congress to provide sufficient
funding that our Nation may continue to be the world leader in
education, innovation and economic growth. This resolution
provides substantial increased funding above the President's
requested level for 2008, and additional amounts in subsequent
years in Function 250 (General Science, Space and Technology)
and Function 270 (Energy). Additional increases for scientific
research and education are included in Function 500 (Education,
Employment, Training, and Social Services), Function 550
(Health), Function 300 (Environment and Natural Resources),
Function 350 (Agriculture), Function 400 (Transportation), and
Function 370 (Commerce and Housing Credit), all of which
receive more funding than the President requested.
(b) America's greatest resource for innovation resides
within classrooms across the country. The increased funding
provided in this resolution will support important initiatives
to educate 100,000 new scientists, engineers, and
mathematicians, and place highly qualified teachers in math and
science K-12 classrooms.
(c) Independent scientific research provides the foundation
for innovation and future technologies. This resolution will
put us on the path toward doubling funding for the National
Science Foundation, basic research in the physical sciences,
and collaborative research partnerships; and toward achieving
energy independence through the development of clean and
sustainable alternative energy technologies.
SEC. 503. SENSE OF CONGRESS ON HOMELAND SECURITY.
It is the sense of Congress that--
(1) this resolution assumes additional homeland
security funding above the President's requested level
for 2008 and every subsequent year;
(2) this resolution assumes funding above the
President's requested level for 2008, and additional
amounts in subsequent years, in the four budget
functions: Function 400 (Transportation), Function 450
(Community and Regional Development), Function 550
(Health), and Function 750 (Administration of Justice)
that fund most nondefense homeland security activities;
and
(3) the homeland security funding provided in this
resolution will help to strengthen the security of our
Nation's transportation system, particularly our ports
where significant security shortfalls still exist and
foreign ports, by expanding efforts to identify and
scan all high-risk United States-bound cargo, equip,
train and support first responders (including enhancing
interoperable communications and emergency management),
strengthen border patrol, and increase the preparedness
of the public health system.
SEC. 504. SENSE OF CONGRESS REGARDING THE ONGOING NEED TO RESPOND TO
HURRICANES KATRINA AND RITA.
The sense of Congress is as follows:
(1) Critical needs in the Gulf Coast region should
be addressed without further delay. The budget
resolution creates a reserve fund that would allow for
affordable housing that may be used to focus on areas
devastated by Hurricanes Katrina and Rita, as well as
new funding for additional recovery priorities.
(2) Additional oversight and investigation is
needed to ensure that recovery efforts are on track,
develop legislation to reform the contracting process,
and better prepare for future disasters. Those efforts
should be made in close consultation with residents of
affected areas. For example, the budget resolution
provides additional 2007 funding for the Federal
Emergency Management Agency, some of which may be used
for this purpose.
SEC. 505. SENSE OF CONGRESS REGARDING LONG-TERM SUSTAINABILITY OF
ENTITLEMENTS.
(a) Findings.--Congress finds the following:
(1) The aging of the United States population is
going to put unprecedented pressure on the Nation's
retirement and health care systems.
(2) The long-term strength of Social Security would
be improved through a fiscally responsible policy of
reducing the deficit and paying down the debt that has
accumulated since 2001, thus reducing debt service
payments and freeing up billions of dollars that can be
dedicated to meeting social security's obligations.
(3) A policy of reducing and eventually eliminating
the deficit and paying down the debt is a key factor in
improving the long-term strength of the economy as a
whole, because a lower debt burden frees up resources
for productive investments that will result in higher
economic growth, provide a higher standard of living
for future generations, and enhance the Nation's
ability to meet its commitments to its senior citizens.
(4) The most significant factor affecting the
Nation's entitlement programs is the rapid increase in
health care costs. The projected increasing costs of
Medicare and Medicaid are not unique to these programs
but rather are part of a pattern of rising costs for
the health sector as a whole.
(b) Sense of Congress.--It is the sense of Congress that
the growing cost of entitlements should be addressed in a way
that is fiscally responsible and promotes economic growth, that
addresses the causes of cost growth in the broader health care
system, and that protects beneficiaries without leaving a
legacy of debt to future generations.
SEC. 506. SENSE OF CONGRESS REGARDING THE NEED TO MAINTAIN AND BUILD
UPON EFFORTS TO FIGHT HUNGER.
(a) Findings.--Congress finds the following:
(1) More than 35 million individuals (12.4 million
of them children) are food insecure, uncertain of
having, or unable to acquire enough food. 10.8 million
Americans are hungry because of lack of food.
(2) Despite the critical contributions of the
Department of Agriculture nutrition programs and
particularly the food stamp program that significantly
reduced payment error rates while increasing enrollment
to partially mitigate the impact of recent increases in
the poverty rate, significant need remains.
(3) Nearly 25 million people, including nine
million children and three million seniors, sought
emergency food assistance from food pantries, soup
kitchens, shelters, and local charities last year.
(b) Sense of Congress.--It is the sense of Congress that
the Department of Agriculture programs that help fight hunger
should be maintained and that Congress should seize
opportunities to enhance those programs to reach people in need
and to fight hunger.
SEC. 507. SENSE OF CONGRESS REGARDING AFFORDABLE HEALTH COVERAGE.
(a) Findings.--Congress finds the following:
(1) More than 46 million Americans, including nine
million children, lack health insurance. People without
health insurance are more likely to experience problems
getting medical care and to be hospitalized for
avoidable health problems.
(2) Most Americans receive health coverage through
their employers. A major issue facing all employers is
the rising cost of health insurance. Small businesses,
which have generated most of the new jobs annually over
the last decade, have an especially difficult time
affording health coverage, due to higher administrative
costs and fewer people over whom to spread the risk of
catastrophic costs. Because it is especially costly for
small businesses to provide health coverage, their
employees make up a large proportion of the nation's
uninsured individuals.
(b) Sense of Congress.--It is the sense of Congress that
legislation consistent with the pay-as-you-go principle should
be adopted that makes health insurance more affordable and
accessible, with attention to the special needs of small
businesses, and that lowers costs and improves the quality of
health care by encouraging integration of health information
technology tools into the practice of medicine, and promoting
improvements in disease management and disease prevention.
SEC. 508. SENSE OF CONGRESS REGARDING EXTENSION OF THE STATUTORY PAY-
AS-YOU-GO RULE.
It is the sense of Congress that in order to reduce the
deficit Congress should extend PAYGO consistent with provisions
of the Budget Enforcement Act of 1990.
SEC. 509. SENSE OF CONGRESS ON LONG-TERM BUDGETING.
It is the sense of Congress that the determination of the
congressional budget for the United States Government and the
President's budget request should include consideration of the
Financial Report of the United States Government, especially
its information regarding the Government's net operating cost,
financial position, and long-term liabilities.
SEC. 510. SENSE OF CONGRESS REGARDING PAY PARITY.
It is the sense of Congress that rates of compensation for
civilian employees of the United States should be adjusted at
the same time, and in the same proportion, as are rates of
compensation for members of the uniformed services.
SEC. 511. SENSE OF CONGRESS REGARDING WASTE, FRAUD, AND ABUSE.
It is the sense of Congress that all committees should
examine programs within their jurisdiction to identify wasteful
and fraudulent spending. To this end, section 207 of this
resolution includes cap adjustments to provide appropriations
for 3 programs that accounted for a significant share of
improper payments reported by Federal agencies in 2006: Social
Security Administration Continuing Disability Reviews, the
Medicare/Medicaid Health Care Fraud and Abuse Control Program,
and Unemployment Insurance. Section 207 also includes a cap
adjustment for the Internal Revenue Service for tax compliance
efforts to close the tax gap. In addition, the resolution's
deficit-neutral reserve funds require authorizing committees to
cut lower-priority and wasteful spending to accommodate higher-
priority programs. Finally, section 207 of the resolution
directs all committees to review the performance of programs
within their jurisdiction and report recommendations annually
to the Committees on the Budget as part of the views and
estimates process required by section 301(d) of the
Congressional Budget Act of 1974.
SEC. 512. SENSE OF CONGRESS REGARDING THE IMPORTANCE OF CHILD SUPPORT
ENFORCEMENT.
It is the sense of Congress that--
(1) additional legislative action is needed to
ensure that States have the necessary resources to
collect all child support that is owed to families and
to allow them to pass 100 percent of support on to
families without financial penalty; and
(2) when 100 percent of child support payments are
passed to the child, rather than administrative
expenses, program integrity is improved and child
support participation increases.
SEC. 513. SENSE OF THE HOUSE ON STATE VETERANS CEMETERIES.
It is the sense of the House that the Federal Government
should pay the plot allowance for the interment in a State
veterans cemetery of any spouse or eligible child of a veteran,
consistent with the pay-as-you-go principle.
SEC. 514. SENSE OF CONGRESS ON THE STATE CRIMINAL ALIEN ASSISTANCE
PROGRAM.
(a) Findings.--Congress makes the following findings:
(1) Control of illegal immigration is a Federal
responsibility.
(2) The State Criminal Alien Assistance Program
(referred to in this section as ``SCAAP'') carried out
pursuant to section 241(i) of the Immigration and
Nationality Act (8 U.S.C. 1231(i)) provides critical
funding to States and localities for reimbursement of
costs incurred as a result of housing undocumented
criminal aliens.
(3) Congress appropriated $300,000,000 for SCAAP to
reimburse State and local governments for those costs
in fiscal year 2004.
(4) Congress appropriated $305,000,000 for SCAAP to
reimburse State and local governments for those costs
in fiscal year 2005.
(5) Congress appropriated $405,000,000 for SCAAP to
reimburse State and local governments for those costs
in fiscal year 2006.
(6) Congress appropriated $399,000,000 for SCAAP to
reimburse State and local governments for those costs
in fiscal year 2007.
(7) Congress has authorized to be appropriated
$950,000,000 to carry out SCAAP for each of the fiscal
years 2008 through 2011.
(b) Sense of Congress.--It is the sense of Congress that
SCAAP funding for fiscal year 2008 should be consistent with
the goal of achieving the program's fully authorized level.
TITLE VI--RECONCILIATION
SEC. 601. RECONCILIATION IN THE HOUSE.
Not later than September 10, 2007, the House Committee on
Education and Labor shall report to the House of
Representatives changes in laws to reduce the deficit by
$750,000,000 for the period of fiscal years 2007 through 2012.
SEC. 602. DEFICIT REDUCTION RECONCILIATION INSTRUCTION IN THE SENATE.
Not later than September 10, 2007, the Senate Committee on
Health, Education, Labor, and Pensions shall report changes in
laws within its jurisdiction to reduce the deficit by
$750,000,000 for the period of fiscal years 2007 through 2012.
And the House agree to the same.
John M. Spratt, Jr.,
Rosa DeLauro,
Chet Edwards,
Managers on the Part of the House.
Kent Conrad,
Patty Murray,
Ron Wyden,
Managers on the Part of the Senate.
Joint Explanatory Statement of the Committee of Conference
The managers on the part of the House and the Senate at
the conference on the disagreeing votes of the two Houses on
the amendment of the House to the concurrent resolution (S.
Con. Res. 21) revising the congressional budget for the United
States Government for fiscal year 2007, establishing the
congressional budget for the United States Government for
fiscal year 2008, and setting forth appropriate budgetary
levels for fiscal years 2009 through 2012, submit the following
joint statement to the House and the Senate in explanation of
the effect of the action agreed upon by the managers and
recommended in the accompanying conference report:
The House amendment struck all of the Senate concurrent
resolution after the enacting clause and inserted a substitute
text.
The Senate recedes from its disagreement to the amendment
of the House with an amendment that is a substitute for the
Senate concurrent resolution and the House amendment. The
differences between the Senate concurrent resolution, the House
amendment, and the substitute agreed to in conference are noted
below, except for clerical corrections, conforming changes made
necessary by agreements reached by the conferees, and minor
drafting and clarifying changes.
Displays and Amounts
The required contents of concurrent budget resolutions
are set forth in section 301(a) of the Congressional Budget Act
of 1974. The years in this document are fiscal years unless
otherwise noted.
The treatment of budget function levels in the Senate-
passed and House-passed budget resolutions and the conference
report is as follows:
Senate Concurrent Resolution
The Senate concurrent resolution includes all of the
items required under Section 301(a) of the Congressional Budget
Act.
House Amendment
The House amendment includes all of the items required as
part of a concurrent budget resolution under section 301(a) of
the Congressional Budget Act other than the spending and
revenue levels for Social Security (which are used to enforce a
point of order applicable only in the Senate). It also includes
a new separate function category, Function 970 (Overseas
Deployments and Other Activities).
Conference Agreement
The conference agreement includes all of the items
required by Section 301(a) of the Budget Act.
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>
Aggregate and Function Levels
Pursuant to section 301(a)(3) of the Budget Act, the
budget resolution must set appropriate levels for each major
functional category based on the 302(a) allocations and the
budgetary totals.
The respective levels of the Senate concurrent
resolution, the House amendment, and conference agreement for
each major budget function, as well as revenue totals, are
discussed in the following section. A summary of the overall
budget policy is as follows:
Total spending is $2.965 trillion in budget authority
(BA) and $2.937 trillion in outlays in 2008, and $15.538
trillion in BA and $15.567 trillion in outlays over 2008-2012.
Discretionary spending for 2008 totals $1.100 trillion in
BA and $1.145 trillion in outlays in 2008, and $5.246 trillion
in BA and $5.615 trillion in outlays over 2008-2012. Excluding
funding for overseas deployments and other activities,
discretionary spending for 2008 totals $954.1 billion in BA and
$1.029 trillion in outlays. These aggregate amounts (minus cap
adjustments for program integrity initiatives) are allocated to
the Appropriations Committees to be suballocated among their
respective appropriations subcommittees.
Mandatory spending totals $1.866 trillion in BA and
$1.792 trillion in outlays in 2008, and $10.293 trillion in BA
and $9.952 trillion in outlays over 2008-2012. This includes
$750 million in reconciled savings over 2007-2012. These
savings are reflected in Function 500. Specific policies to
achieve those savings will be determined by the committees of
jurisdiction.
Revenue totals $2.685 trillion in 2008, and $14.828
trillion over five years. Specific policies will be determined
by the Committee on Finance in the Senate and the Committee on
Ways and Means in the House.
The conference report reduces the budget deficit from
$251.7 billion in 2008, to a surplus of $41.5 billion in 2012.
The following section describes the conference report's
revenue levels and spending according to the budget's
functional categories.
Revenues
Summary
The revenue component of the budget resolution reflects
all of the federal government's tax receipts that are
classified as ``on budget.'' This includes individual income
taxes; corporate income taxes; excise taxes, such as the
gasoline tax; and other taxes, such as estate and gift taxes.
Taxes collected for the Social Security system--the Old Age and
Survivors and Disability Insurance (OASDI) payroll tax--are
``off budget.'' The Hospital Insurance payroll tax portion of
Medicare, the Federal Unemployment Tax Act payroll tax,
railroad retirement and other retirement systems are all ``on
budget.'' Customs duties, tariffs, and other miscellaneous
receipts are also included in the revenue component. Pursuant
to the Congressional Budget Act of 1974 and the Budget
Enforcement Act of 1990, Social Security payroll taxes are not
included in the budget resolution.
Senate Resolution
The Senate budget resolution includes $2.0 trillion in
on-budget revenues for 2008, and $11.1 trillion over 2008-2012.
(The corresponding revenue figures on a unified basis are $2.7
trillion for 2008 and $14.8 trillion over five years.) The
resolution provides two years of relief from the Alternative
Minimum Tax (AMT), protecting some 20 million middle-class
taxpayers from being subject to the AMT in 2007 and 2008. The
cost of providing this relief is fully offset. The resolution
also assumes the extension of the college tuition deduction,
with the costs offset.
The revenue level in the Senate resolution is $179.8
billion below the levels in the CBO baseline over 2007-2012.
This provides for the extension after 2010 of middle-class tax
relief--child tax credit, the 10 percent bracket, and marriage
penalty relief--as well as continuation of the estate tax at
2009 levels adjusted for inflation. In addition, this revenue
reduction accommodates extension of other tax provisions
expiring in 2010, such as the adoption tax credit, the
dependent care tax credit, and the treatment of combat pay for
purposes of the earned income tax credit.
The Senate resolution includes several reserve funds that
provide for tax relief, including refundable tax relief and the
extension of expiring tax relief, as long as the costs of these
provisions are offset. These deficit-neutral reserve funds
would accommodate, for instance, tax relief related to
agriculture, energy, higher education, and manufacturing as
well as the extension of enhanced charitable giving from
individual retirement accounts, the State and local sales tax
deduction, the new markets tax credit, and the above-the-line
deduction for teacher classroom supplies.
The Senate resolution assumes that any additional
revenues needed under the resolution can be achieved by closing
the tax gap, shutting down abusive tax shelters, addressing
offshore tax havens, and without raising taxes. To help close
the tax gap and bolster Internal Revenue Service (IRS)
enforcement, the resolution fully funds the President's budget
request for the IRS, including additional resources available
through a discretionary cap adjustment that directs $406
million to IRS enforcement activities.
House Amendment
The House amendment matches the level of revenues under
the CBO baseline in each year over the 2007-2012 period. This
includes $2.1 trillion in on-budget revenues for 2008, and
$11.3 trillion over 2008-2012. (The corresponding revenue
figures on a unified basis are $2.7 trillion for 2008 and $15.0
trillion over five years.)
By following CBO's baseline path of revenues, the House
amendment achieves current-law total revenue levels, but does
not assume maintaining current tax law. Thus, the House
amendment accommodates reform of the AMT and extension of tax
cuts benefitting middle-income households (including the child
tax credit, marriage penalty relief, the 10 percent bracket,
and the deduction for State and local sales taxes), as long as
such changes to tax law are accomplished in a deficit-neutral
manner over the 2007-2012 and 2007-2017 periods.
The House amendment also accommodates deficit-neutral
extension of other expiring tax provisions, such as the
research and experimentation tax credit and the deduction for
small business expensing. In addition, the House amendment
accommodates deficit-neutral elimination of estate taxes on all
but a minute fraction of estates by reforming and substantially
increasing the unified tax credit. It also accommodates other
high priority deficit-neutral revenue adjustments, such as
providing a tax credit for local bonds to support the repair or
construction of public schools.
Conference Agreement
The conference agreement includes $2.0 trillion in on-
budget revenues for 2008, and $11.1 trillion over 2008-2012.
(The corresponding revenue figures on a unified basis are $2.7
trillion for 2008 and $14.8 trillion over five years.) The
resolution provides immediate relief from the Alternative
Minimum Tax (AMT), with its cost fully offset. The resolution
also reflects extension of the college tuition deduction, with
the costs offset. The agreement supports tax relief that would
benefit the middle class--including extension of the child tax
credit, 10 percent bracket, and marriage penalty relief--and
provide for estate tax reform. Additionally, the agreement
includes several deficit-neutral reserve funds that provide for
a wide range of tax policies.
The revenue level in the conference agreement is $180
billion below the levels in the CBO baseline over 2007-2012.
Revenue legislation is subject to House and Senate pay-as-you-
go (paygo) rules. Additionally, the House reserve fund
adjustment for revenue measures (Section 321)--the House
``trigger'' mechanism--creates a second procedural hurdle in
the House only, in addition to the paygo rule, to ensure fiscal
responsibility.
National Defense: Function 050
Function Summary
The National Defense function includes the military
activities of the Department of Defense (DoD), the nuclear-
weapons related activities of the Department of Energy (DoE)
and the National Nuclear Security Administration, and the
national security activities of several other agencies such as
the Selective Service, Coast Guard and Federal Bureau of
Investigation. The programs in this function include: the pay
and benefits of active, Guard, and reserve military personnel;
DoD operations including training, maintenance of equipment,
and facilities; health care for military personnel and
dependents; procurement of weapons; research and development;
construction of military facilities, including housing;
research on nuclear weapons; and the cleanup of nuclear weapons
production facilities.
Senate Resolution
The Senate resolution calls for a total of $648.8 billion
in BA and $617.8 billion in outlays for 2008, and $2.9 trillion
in BA and outlays over five years. This includes full funding
for the President's request for war costs for 2007 through
2009.
Excluding requested war funds, the Senate resolution
provides $503.8 billion in BA and $511.1 billion in outlays for
defense in 2008. This funding for defense was equal to the
level requested by the President for 2008 (as re-estimated by
CBO), for a total increase of $39.6 billion in BA over the 2007
level adjusted for inflation.
The Senate resolution rejects the President's proposals
for new TRICARE enrollment fees and deductibles for military
retirees under the age of 65.
Additionally, the Senate resolution assumes full funding
of the President's request for $690 million to support the
baseline cost to completion for the waste treatment plant and
associated facilities at the Hanford Nuclear Reservation. The
resolution additionally assumes increases totaling $22.9
million for the Hanford tank farm and other Hanford cleanup-
related programs.
The Senate resolution recognizes that many communities
will experience significant population growth or declines
resulting from the Base Realignment and Closure (BRAC) 2005
process, and it supports additional funding to accommodate the
needs of these communities.
The National Guard has a long history of outstanding
service to our nation. Since September 11, 2001, our reliance
on the National Guard has only increased with many thousands of
troops serving the nation both at home and abroad. The
President has now announced that National Guard units will face
re-activation for additional tours of duty in Iraq and
Afghanistan despite the fact that they have not had the amount
of time at home station between deployments that is expected
under Department of Defense standards. Congress has provided
the National Guard with significant resources in recognition of
the important role the Guard plays in our national security and
to ensure that it has the tools to continue to perform its
missions. The Senate resolution assumed continued funding of
the National Guard at levels at least as high as those assumed
in the President's Budget. The Senate resolution encourages the
Appropriations Committee to provide for critical needs for
National Guard equipment left unfunded in the President's
Budget.
The Senate resolution includes a cap adjustment provision
allowing the Chairman of the Budget Committee to revise the
discretionary spending cap for appropriations related to
operations in Iraq, Afghanistan, and other war-related costs.
The cap adjustment allowed under the Senate resolution is
$145.2 billion in budget authority for 2008 and $50.0 billion
for 2009 (a portion of these costs are expected to fall under
budget functions other than National Defense). The Senate
resolution's levels of deficits and debt assumes that this cap
adjustment is fully utilized.
An additional defense-related cap adjustment provision
allows the Chairman of the Budget Committee to increase the
discretionary cap by up to $5.0 billion to address deficiencies
in training, equipment, force protection, logistics, or other
matters necessary for the protection of United States military
forces, or to address deficiencies at Walter Reed and other
military medical facilities.
The existence of these cap adjustments would not prevent
the Appropriations Committee from reporting emergency
supplemental appropriations legislation if war costs exceed the
allotted level. Emergency funding falls outside the
discretionary spending caps included in the resolution, and
hence does not require an adjustment.
For 2007, the Senate resolution assumes the enactment of
the President's full emergency request for war costs,
consisting of $99.6 billion in BA and $27.0 billion in outlays.
Each of these levels is equal to CBO's reestimate of the
President's war funding request.
House Amendment
The House amendment reflects a total of $507.0 billion in
BA and $514.4 billion in outlays in 2008, and $2.7 trillion in
BA and outlays over five years. The defense of our nation ranks
first among our priorities, and the House amendment accordingly
provides robust funding for Function 050 (National Defense).
The amendment calls, however, for a reallocation of resources
to address threats facing the nation and to guarantee first-
rate health care for members of our armed forces. It includes
assumptions on specific defense policy in Title IV, Section
402.
The National Commission on Terrorist Attacks Upon the
United States (commonly referred to as the 9/11 Commission)
identified terrorists with weapons of mass destruction as one
of the nation's gravest threats. It recommended that Congress
supply more resources to secure nuclear weapons and the fissile
materials used in making these weapons. It is the policy of the
House amendment that non-proliferation programs, such as the
Cooperative Threat Reduction program, be given greater priority
and higher funding.
High among our priorities is the health care guaranteed
our armed forces, not only while they are in harm's way, but
when they return from combat with injuries. For that reason,
the House amendment opposes Tricare fee increases and calls for
a substantial increase in the veterans' health care system. The
amendment notes the upcoming recommendations of the President's
Commission on Care for America's Returning Wounded Warriors and
other government investigations in connection with the
substandard care at Walter Reed Army Medical Center, and allows
funds for action when those recommendations are received.
It is the policy of the House amendment that acquisition
programs such as missile defense and satellite procurement be
funded at lower, but still robust levels. Development of space-
based interceptors as part of the missile defense program
should be de-emphasized and satellite development and
procurement should proceed along a more measured schedule.
DoD's satellite programs have experienced significant cost
growth and the President's request for satellite acquisition
reflects a 26 percent increase above the 2007 enacted level.
The House amendment recognizes the need for DoD to root
out wasteful spending with far more diligence. Seventeen years
after passage of the Chief Financial Officers Act of 1990, DoD
still cannot pass a standard audit. The Department cannot
adequately track what it owns or the spending in its annual
budgets. DoD has allowed the cost of its major acquisition
programs to grow at an unsustainable rate. The Department's
major acquisition programs grew by $317.0 billion above their
initial projections from 2002 to 2006. DoD has awarded
contracts for its foreign deployments that have been grossly
more wasteful than domestic contracts, especially in Iraq.
Furthermore, DoD continues to fund weapons systems that were
developed years ago to counter Cold War-era threats, which may
not be as effective in protecting the nation from today's
threats.
Over the last six years, the Government Accountability
Office (GAO) has performed numerous audits of DoD's financial
management, contracting, and business practices. GAO made 2,544
recommendations, of which 1,378 have yet to be implemented. The
House amendment assumes that enhancing accounting practices at
DoD and implementing many GAO recommendations would yield
substantial savings that could be applied to meet critical
defense priorities. The amendment also directs the committees
with jurisdiction over defense and armed services to conduct
more oversight with the objective of ferreting out wasteful
practices, fraud, and abuse.
For mandatory programs, the House amendment matches the
President's assumptions regarding offsetting receipts.
Conference Agreement
The conference agreement for Function 050 includes a
total of $507.0 billion in BA and $514.4 billion in outlays in
2008, and $2.7 trillion in BA and outlays over five years. The
conference agreement does not assume enactment of the
President's proposals for new TRICARE enrollment fees and
deductibles for military retirees under the age of 65. In
keeping with the Senate resolution, the conference agreement
assumes that total National Defense funding includes no less
than $5.0 billion to address deficiencies in training,
equipment, force protection, logistics, and military medical
care. The conference agreement reaffirms the Senate
resolution's position on the importance of robust funding for
atomic energy defense environmental cleanup activities.
For mandatory programs, the conference agreement matches
the President's assumptions regarding offsetting receipts.
The conference agreement reflects war costs in Function
970, as in the House amendment.
The conference agreement also includes a deficit-neutral
reserve fund (Section 302) to provide increased flexibility to
the relevant House and Senate committees on various issues
related to meeting our commitments to wounded and disabled
military personnel and veterans, as well as their survivors.
The conference agreement includes a statement of policy
on defense issues (Section 402). The House Budget Committee
report (H. Rept. 110-69) discussed key priorities to be funded
within the defense allocation and the need for the Department
of Defense to root out wasteful spending (such as the continued
funding of some Cold War-era weapons systems, which may not be
as effective in protecting the nation from today's threats).
The conference agreement reaffirms these priorities.
International Affairs: Function 150
Function Summary
The International Affairs function includes funding for
operations of U.S. embassies and other diplomatic missions
abroad; development aid and technical assistance to developing
countries; security assistance to foreign governments; refugee
assistance; Foreign Military Sales Trust Fund; contributions to
international organizations, including financial institutions;
and the Export-Import Bank and other trade promotion programs.
The major agencies in this function include the Departments of
Agriculture, State, and the Treasury; the United States Agency
for International Development; and the Millennium Challenge
Corporation.
Senate Resolution
The Senate resolution calls for a total of $39.2 billion
in BA and $36.9 billion in outlays, including the 2008
emergency request, and $180.0 billion in BA and $172.3 billion
in outlays over five years. Excluding assumed war costs
provided under a cap adjustment, discretionary spending for
2008 totals $36.5 billion in BA and $35.9 billion in outlays.
The discretionary level is $6.5 billion above the 2007 level
adjusted for inflation. The Senate resolution includes an
increase in funding for international programs and additional
funds for trade enforcement.
Overall, the Senate resolution increases funding for the
President's Emergency Plan for AIDS Relief above the requested
level and provides a U.S. contribution to the Global Fund for
HIV/AIDS, Tuberculosis and Malaria of $940 million.
House Amendment
The House amendment reflects a total of $34.7 billion in
non-emergency BA and $33.1 billion in non-emergency outlays in
2008, and $178.3 billion in BA and $165.0 billion in outlays
over five years. The House amendment's discretionary budget
authority for 2008 is $2.0 billion (5.9 percent) more than the
amount needed to maintain purchasing power at the 2007 level.
The amendment matches the President's Function 150 request for
activities related to the United States' overseas military
deployments and the Emergency Plan for AIDS Relief, which
includes the Global HIV/AIDS Initiative. The House also notes
the importance of adequate funding for core U.S. development
assistance and other high priority programs.
Consistent with the President's budget, the House
amendment also provides full funding to continue agreements
that the United States reached in 1998 with Israel and Egypt
regarding levels of military financing and economic support.
The House amendment provides additional funding for 2008
for the McGovern-Dole International Food for Education and
Child Nutrition Program. This program has been demonstrated to
help reduce child hunger and malnutrition, and increase
enrollment and attendance in schools in beneficiary countries.
The House notes the large amount of unobligated funding
that is still available for the Millennium Challenge
Corporation, which has received almost $6.0 billion in total
appropriations from fiscal years 2004 through 2007.
The House also notes the strong support enjoyed by H.R.
1595, a measure designed to provide compensation to the
Guamanian victims of the Imperial Japanese military occupation
during World War II.
Conference Agreement
The conference agreement includes $34.7 billion in BA and
$33.1 billion in outlays in 2008, and $180.1 billion in BA and
$166.5 billion in outlays over five years. The conference
agreement reflects international affairs funding associated
with overseas deployments and related activities in Function
970, as in the House amendment.
General Science, Space, and Technology: Function 250
Function Summary
The General Science, Space, and Technology function
includes funding for the National Aeronautics and Space
Administration (NASA), except aviation programs, the National
Science Foundation (NSF), as well as programs in the Department
of Energy (DoE) Office of Science.
Senate Resolution
The Senate resolution calls for a total of $27.6 billion
in BA and $26.4 billion in outlays for 2008, and $137.5 billion
in BA and $136.4 billion in outlays over five years.
The Senate resolution assumes the President's request of
$17.3 billion for NASA. The United States' goals for space
exploration were defined in the President's ``Vision for Space
Exploration'' and included in the National Aeronautics and
Space Administration Authorization Act of 2005. The resolution
recognizes the importance of our nation's space program and
endorsed the Act's balanced goals of exploration, science and
aeronautics. The Act calls for retirement of the Space Shuttle
by 2010 and first flight of its replacement by 2014. The Senate
resolution recognizes the strategic importance of uninterrupted
access to space and supported efforts to reduce this four-year
gap in U.S. human space flight.
In addition, the Senate resolution notes the importance
of incentives to promote innovation and competitiveness through
research as essential to our nation's efforts to advance the
scientific and technological developments necessary to maintain
our quality of life and economic security. The resolution also
reflects the Senate's concern about the geographic imbalance of
federal research funding and believes that it is incumbent upon
departments and agencies to ensure a more equitable
distribution of funding and research infrastructure development
throughout the nation.
The Senate resolution provides a $1.0 billion increase
for additional investments in innovation and education, and $40
million for NSF nanotechnology programs.
House Amendment
The House amendment reflects a total of $27.6 billion in
BA and $26.5 billion in outlays in 2008, and $149.6 billion in
BA and $145.8 billion in outlays over five years. Funding in
Function 250 exceeds the funding levels in the President's
budget and the current services level for all five years in the
budget window. Additional increases for scientific research and
education are included in Function 270 (Energy), Function 300
(Environment and Natural Resources), Function 350
(Agriculture), Function 370 (Commerce and Housing Credit),
Function 400 (Transportation), Function 500 (Education,
Training, Employment, and Social Services), and Function 550
(Health), all of which receive more funding than the President
requested. These increases will support the goals of the House
Leadership's Innovation Agenda: to put NSF funding on a path
toward doubling, to train more qualified science and math
teachers, and to invest in basic research on energy
technologies.
Conference Agreement
The conference agreement includes $27.6 billion in BA and
$26.5 billion in outlays in 2008 and $149.6 billion in BA and
$145.8 billion in outlays over five years. The conference
agreement provides significant increases for NSF and the DoE
Office of Science, and fully funds the President's 2008 request
for NASA at $17.3 billion. For NASA, this represents an
increase of $696 million, or 4 percent, above the 2007 level
adjusted for inflation.
Energy: Function 270
Function Summary
The Energy function includes funding for most civilian
energy and environmental programs in the Department of Energy
(DoE). This function also includes the Rural Utilities Service
of the Department of Agriculture, the Tennessee Valley
Authority, the Federal Energy Regulatory Commission, and the
Nuclear Regulatory Commission. This function does not include
DoE's national security activities, which are in the National
Defense function, or its basic research and science activities,
which are in the General Science, Space and Technology
function.
Senate Resolution
The Senate resolution calls for a total of $3.7 billion
in BA and $1.3 billion in outlays for 2008, and $16.6 billion
in BA and $8.5 billion in outlays over five years. The Senate
resolution assumes $1.6 billion for the DoE's Energy Efficiency
and Renewable Energy program. This funding level is $385
million above the President's request. In addition, the Senate
resolution rejects the President's proposed cuts to the fossil
energy research and development program.
The Senate resolution includes a deficit-neutral reserve
fund for energy legislation that would reduce our nation's
dependence on foreign sources of energy, expand production and
use of alternative fuels and alternative fuel vehicles, promote
renewable energy development, improve electricity transmission,
encourage responsible development of domestic oil and natural
gas resources, or reward conservation and efficiency. The
reserve fund will provide committees increased flexibility in
finding offsets for legislation that addresses the energy
challenges facing our nation. The Senate resolution also
includes a deficit-neutral reserve fund which accommodates the
extension of various energy tax incentives.
The Senate resolution rejects the President's proposal to
increase the interest rates Power Marketing Administrations pay
when they borrow funds from the Treasury. The resolution also
rejects the proposal to accelerate the Bonneville Power
Administration's (BPA's) debt repayment. The BPA proposal could
lead to higher electricity rates for power customers in the
Northwest and circumvent the regional decision making process.
It is unfortunate that the President's budget proposed this
again after it was explicitly rejected by Congress last year.
The resolution does not assume any savings from the proposal
and includes a deficit-neutral reserve fund for legislation
blocking the proposal. The levels for the energy function
assume funding to accommodate legislation blocking the BPA
proposal.
The Senate resolution adds funding for carbon
sequestration and capture technology and funding for
geothermal, ocean, and hydroelectric energy assistance.
House Amendment
The House amendment reflects a total of $3.2 billion in
BA and $1.1 billion in outlays for 2008, and $16.0 billion in
BA and $7.9 billion in outlays over five years. The amendment
provides funding above the President's request and the level
needed to maintain current services for Function 270. This
increased funding could be used for research, development, and
deployment of renewable and alternative energy technology and
resources.
The House amendment also establishes a reserve fund to
facilitate the development of conservation and efficiency
technologies, clean domestic renewable energy resources, and
alternative fuels that will reduce our reliance on foreign oil.
The federal government, and particularly the DoE, should take
the lead in research and development, and to that end, the
House amendment includes an increase in Function 270 above
baseline, while emphasizing that this is a first step toward
increases that need to come soon and be substantial.
In the meantime, the DoE should husband its resources and
program work at the national laboratories to advance the
technologies of energy conservation and efficiency and of
clean, renewable energy. Other agencies and departments of the
government should join this effort. The House amendment
recognizes, for example, the role that the Department of
Agriculture could take in developing new energy sources such as
cellulosic ethanol, and approves this mission among those cited
in Function 350.
Funding sources for research and development are
scattered throughout the budget. These sources need to be
inventoried, and where possible, refocused on research and
development of clean and renewable energies.
Conference Agreement
The conference agreement includes $3.4 billion in BA and
$1.2 billion in outlays for 2008, and $16.6 billion in BA and
$8.5 billion in outlays over five years. The conference
agreement rejects the proposal to accelerate the Bonneville
Power Administration's (BPA's) debt repayment. The BPA proposal
could lead to higher electricity rates for power customers in
the Northwest and circumvent the regional decision making
process. It is unfortunate that the President's budget proposed
this again after it was explicitly rejected by Congress last
year. The conference agreement does not assume any savings from
the proposal and includes a deficit-neutral reserve fund for
legislation rejecting the proposal. The levels for the energy
function assume funding to accommodate legislation rejecting
the BPA proposal.
The conference agreement also rejects the President's
proposal to increase the interest rates Power Marketing
Administrations pay when they borrow funds from the Treasury.
The conference agreement includes a deficit-neutral
reserve fund to accommodate energy legislation in both the
House and the Senate.
Natural Resources and Environment: Function 300
Function Summary
The Natural Resources and Environment function consists
of funding for water resources, conservation, land management,
pollution control and abatement, and recreational resources.
Major departments and agencies in this function are the
Department of the Interior (including the National Park
Service, the Bureau of Land Management, the Bureau of
Reclamation, the Fish and Wildlife Service, and the Minerals
Management Service), conservation-oriented and land management
agencies within the Department of Agriculture (including the
Forest Service), the National Oceanic and Atmospheric
Administration at the Department of Commerce, the Army Corps of
Engineers, and the Environmental Protection Agency (EPA).
Senate Resolution
The Senate resolution calls for a total of $32.9 billion
in BA and $34.9 billion in outlays for 2008, and $169.7 billion
in BA and $176.4 billion in outlays over five years. The Senate
resolution includes $8.1 billion for the EPA. This is $877
million above the President's request and $170 million above
the 2007 level adjusted for inflation. In nominal dollars, the
President's proposed 2008 funding level of $7.2 billion would
be the lowest budget for EPA since 1997. The Senate resolution
assumes $1.5 billion for Superfund, an increase of $211 million
above the President's request. The Senate resolution also
assumes full funding for EPA's programs to support clean and
safe drinking water. It rejects the President's proposal to cut
a variety of environmental protection programs.
The Senate resolution rejects the President's proposal to
permit oil and gas leasing in the Arctic National Wildlife
Refuge (ANWR) and does not assume savings from the proposal.
The Senate resolution also does not assume any savings from the
President's proposal to sell Federal lands.
It rejects the proposal in the President's budget to
reallocate the repayment of the capital costs of the Pick-Sloan
Missouri Basin irrigation program to power customers. The
resolution recognizes the importance of the Bureau of
Reclamation rural water program to support ongoing Municipal,
Rural, and Industrial (MR&I) systems for the Great Plains
Region. The Bureau of Reclamation supplies drinking water to
2.6 million people in the Great Plains region and is encouraged
to prioritize the completion of the Pick Sloan-Missouri Basin
Program--Garrison Diversion Unit, the Mni Wiconi Project, Dry
Prairie, Perkins County, and the Lewis and Clark projects.
Together, these projects have a capability of $200 million. The
resolution supports funding these projects at a level that is
as close as possible to the full capability for these vital
rural water development projects. The Senate resolution adds
funding for the Forest Service.
House Amendment
The House amendment reflects a total of $32.8 billion in
BA and $34.9 billion in outlays for 2008 and $172.2 billion in
BA and $178.3 billion in outlays over five years. The House
amendment rejects the President's proposed cuts to priority
programs, such as the Land and Water Conservation Fund, the
Fish and Wildlife Service's wildlife refuge system, the EPA's
grants to States and Tribes to address water and air quality,
and other EPA programs. It also includes funding to address
high-priority brownfield redevelopment concerns. In addition,
the amendment accommodates the President's recommendation to
increase funding for the operation and maintenance of the
national park system. The House amendment includes a deficit-
neutral reserve fund to facilitate the reauthorization of the
Farm Bill, providing resources for such objectives as to secure
an economic safety net for agricultural producers, conserve our
natural resources, and address nutrition needs.
Conference Agreement
The conference agreement includes $33.4 billion in BA and
$35.2 billion in outlays for 2008, and $173.2 billion in BA and
$179.3 billion in outlays over five years. The funding levels
in the conference agreement assume that if the severity of the
fire season requires additional funding, wildland fire
suppression activities will be funded for 2008 at no less than
$400 million above the ten-year average at the Forest Service
and $100 million above the ten-year average at the Department
of the Interior.
Agriculture: Function 350
Function Summary
The Agriculture function includes farm income
stabilization, agricultural research, and other services
administered by the U.S. Department of Agriculture. The
discretionary programs include research and education programs,
economics and statistics services, administration of the farm
support programs, farm loan programs, meat and poultry
inspection, and a portion of the Public Law 480 international
food aid program. The mandatory programs include commodity
programs, crop insurance, and certain farm loans.
Senate Resolution
The Senate resolution reflects a total of $20.5 billion
in BA and $21.5 billion in outlays for 2008 and $105.0 billion
in BA and $102.9 billion in outlays over five years. With the
2002 Farm Bill expiring this year, the Senate resolution
provides a deficit-neutral reserve fund for the reauthorization
of agricultural programs. To address the needs of rural America
and promote new sources of renewable energy from U.S. farm
products, it would provide a $15.0 billion deficit-neutral
reserve fund for the 2007 through 2012 period to reauthorize
the Farm Bill. The reauthorization of the Farm Bill will
provide an economic safety net for agricultural producers,
enhance the stewardship of our natural resources, address
domestic nutrition needs, increase agricultural research, and
improve our export competitiveness.
House Amendment
The House amendment reflects a total of $20.4 billion in
BA and $19.5 billion in outlays for 2008 and $105.0 billion in
BA and $101.0 billion in outlays over five years. The amendment
provides sufficient funding to bolster commodity support,
agricultural research, and animal and plant inspection
programs. The amendment includes a deficit-neutral reserve fund
to facilitate the reauthorization of the Farm Bill, providing
resources for such objectives as to secure an economic safety
net for agricultural producers, conserve our natural resources,
and address nutrition needs.
Conference Agreement
The conference agreement includes a total of $20.5
billion in BA and $19.6 billion in outlays for 2008, and $105.5
billion in BA and $101.5 billion in outlays over five years.
The conference agreement includes a deficit-neutral reserve
fund (Section 307) to provide up to an additional $20.0 billion
for the 2007 Farm Bill to improve the economic safety net for
farmers, address domestic nutrition needs, enhance conservation
programs, and encourage the production of renewable energy
resources and other purposes.
Commerce and Housing Credit: Function 370
Function Summary
The Commerce and Housing Credit function includes
mortgage credit, the Postal Service, deposit insurance, and
other advancement of commerce (the majority of the
discretionary and mandatory spending in this function). The
mortgage credit component of this function includes housing
assistance through the Federal Housing Administration, the
Federal National Mortgage Association (Fannie Mae), the Federal
Home Loan Mortgage Corporation (Freddie Mac), the Government
National Mortgage Association (Ginnie Mae), and rural housing
programs of the Department of Agriculture. The function also
includes net Postal Service spending and spending for deposit
insurance activities of banks, thrifts, and credit unions. Most
of the Commerce Department is provided for in this function,
including the International Trade Administration, the Bureau of
Economic Analysis, the Patent and Trademark Office, the
National Institute of Standards and Technology, the National
Telecommunications and Information Administration, and the
Bureau of the Census. Finally, the function also includes
funding for independent agencies such as the Securities and
Exchange Commission, the Commodity Futures Trading Commission,
the Federal Trade Commission, the Federal Communications
Commission, and the majority of the Small Business
Administration.
Senate Resolution
The Senate resolution calls for a total of $10.7 billion
in unified BA and $3.7 billion in unified outlays for 2008, and
$47.8 billion in unified BA and $7.1 billion in unified outlays
over five years. The Senate resolution rejects the President's
proposal to cut assistance to America's small businesses. The
President has tried repeatedly to reduce the Manufacturing
Extension Program (MEP), which helps small businesses adopt
advanced manufacturing technologies, but Congress has
consistently restored the funding. The Senate resolution
restores cuts to this vital program. The Senate resolution also
provides robust resources for the Small Business
Administration.
House Amendment
The House amendment reflects a total of $11.0 billion in
unified BA and $3.8 billion in unified outlays for 2008 and
$55.0 billion in unified BA and $13.9 billion in unified
outlays over five years. The House amendment's discretionary
function total includes significantly increased funding for the
Bureau of Census, reflecting continued preparation for the 2010
census. For 2008, and over the following four years, funding in
Function 370 is above the level in the President's budget.
Conference Agreement
The conference agreement calls for a total of $11.1
billion in unified BA and $3.8 billion in unified outlays for
2008, and $55.1 billion in unified BA and $14.1 billion in
unified outlays over five years.
Transportation: Function 400
Function Summary
The Transportation function consists mostly of the
programs administered by the Department of Transportation,
including programs for highways, mass transit, aviation, and
maritime activities. This function also includes two components
of the Department of Homeland Security: the Coast Guard and the
Transportation Security Administration. In addition, this
function includes several small transportation-related agencies
and the research program for civilian aviation at NASA.
Senate Resolution
The Senate resolution calls for a total of $83.9 billion
in BA and $81.4 billion in outlays for 2008, and $390.2 billion
in BA and $425.3 billion in outlays over five years. The Senate
resolution provides $1.8 billion in BA for Amtrak, a funding
level that is $880 million above the President's request and
$480 million above the 2007 level adjusted for inflation.
Amtrak is a vital link to many small communities, and the
Senate resolution will help Amtrak pay off debt and continue to
improve its operations. The Senate resolution also provides
full funding for highway, safety, and transit programs.
House Amendment
The House amendment reflects a total of $82.7 billion in
BA and $80.8 billion in outlays for 2008 and $393.7 billion in
BA and $426.7 billion in outlays over five years. It fully
funds the highway, safety, and transit programs authorized in
the Safe, Accountable, Flexible, Efficient Transportation
Equity Act: A Legacy for Users (SAFETEA-LU). Specifically, the
House amendment includes both the revenue aligned budget
authority (RABA) and the funding for transit capital projects
that the President's 2008 budget cuts. In addition, the House
amendment maintains Amtrak, provides additional funding for
grants to airports, and rejects the President's cuts to
aviation programs within NASA.
Conference Agreement
The conference agreement provides a total of $82.8
billion in BA and $81.1 billion in outlays for 2008 and $393.2
billion in BA and $426.1 billion in outlays over five years.
The conference agreement fully funds the highway, safety, and
transit programs authorized in the Safe, Accountable, Flexible,
Efficient Transportation Equity Act: A Legacy for Users
(SAFETEA-LU). Specifically, the conference agreement includes
the revenue aligned budget authority (RABA) that the
President's 2008 budget cuts. Among other transportation
programs, the conference agreement provides $1.8 billion in BA
for Amtrak.
Community and Regional Development: Function 450
Function Summary
The Community and Regional Development function includes
federal programs to improve community economic conditions,
promote rural development, and assist in federal preparations
for and response to disasters. This function provides
appropriated funding for the Community Development Block Grant
(CDBG), Department of Agriculture rural development programs,
the Bureau of Indian Affairs, the Federal Emergency Management
Agency (including homeland security grants), and other disaster
mitigation and community development-related programs. It also
provides mandatory funding for the federal flood insurance
program.
Senate Resolution
The Senate resolution calls for a total of $15.4 billion
in BA and $22.5 billion in outlays for 2008, and $70.7 billion
in BA and $96.9 billion in outlays over five years. This level
restores cuts proposed in the President's budget for community
development programs and several Department of Homeland
Security (DHS) grant programs, including first responder
grants. In addition, the Senate resolution includes increases
in funding for security grant programs relating to port
security, rail and transit security, interoperable
communications equipment, and emergency management performance
grants.
House Amendment
The House amendment reflects a total of $15.0 billion in
BA and $22.0 billion in outlays in 2008, and $71.9 billion in
BA and $94.5 billion in outlays over five years. The House
amendment provides more than the President's 2008 discretionary
funding level for Function 450, rejecting the President's cuts
to the Community Development Block Grant (CDBG) program and
providing additional funds for this and other key priorities
like rural development and disaster preparedness.
Conference Agreement
The conference agreement includes a total of $15.8
billion in BA and $22.3 billion in outlays for 2008, and $76.0
billion in BA and $97.6 billion in outlays over five years. The
conference agreement provides funding for continued investments
in and additional resources for community development and
homeland security, including community development block
grants, interoperable communications equipment grants, and
emergency management performance grant programs.
Education, Training, Employment, and Social Services: Function 500
Function Summary
The Education, Training, Employment and Social Services
function includes funding for the Department of Education, as
well as programs in the Department of Health and Human Services
(HHS) and the Department of Labor. This function provides
funding for elementary and secondary, career and technical, and
post-secondary educational programs; job training and
employment services; children and family services; and
statistical analysis and research related to these areas. It
also contains funding for the Library of Congress and
independent research and art agencies such as the Corporation
for Public Broadcasting, the Smithsonian Institution, the
National Gallery of Art, the John F. Kennedy Center for the
Performing Arts, the National Endowment for the Arts, and the
National Endowment for the Humanities.
Senate Resolution
The Senate resolution calls for a total of $93.9 billion
in BA and $90.4 billion in outlays in 2008 and $490.6 billion
in BA and $478.0 billion in outlays over five years. The Senate
resolution provides $2.0 billion in 2009 advance funding for
Function 500 programs.
The Senate resolution recognizes that investments in
education and training programs are critical to our nation's
long-term economic outlook and provides $9.3 billion above the
President's 2008 discretionary request for this function,
including $2.0 billion in advance 2009 funding. Specifically,
the Senate resolution rejects the President's proposed cuts and
provides the largest increase since 2002 for elementary and
secondary programs, particularly for Title I, the Individuals
with Disabilities Education Act (IDEA), and Impact Aid. The
Senate resolution provides an increase for Head Start and fully
accommodates the President's proposed increases in the maximum
Pell grant.
The Senate resolution provides a deficit-neutral reserve
fund to facilitate enactment of legislation to improve college
access and affordability. The Senate resolution provides $100
million for summer education programs, and a deficit-neutral
reserve fund to facilitate enactment of legislation to provide
assistance to States for offering or expanding preschool for
children from low-income families. The Senate resolution allows
the Chairman of the Budget Committee to revise the levels in
the resolution for legislation appropriating up to $17 million
for 2008 if the Comptroller General makes certain
certifications to Congress regarding the Smithsonian
Institution.
House Amendment
The House amendment calls for a total of $92.5 billion in
BA and $91.1 billion in outlays for 2008 and $484.7 billion in
BA and $475.3 billion in outlays over five years. The House
amendment specifically rejects the President's cuts to
education, including his plan to eliminate many education
programs. The amendment also rejects the President's steep cuts
to job training and social services programs, including the
Community Services Block Grant and the Social Services Block
Grant.
In contrast to the President's funding cuts, the House
amendment makes a down payment toward addressing long-standing
needs in education, training, and social services. To that end,
the amendment provides an appropriated program level for
Function 500 that is $7.9 billion above the 2008 level in the
President's budget. Those additional resources include $5.9
billion in 2008 funding and an increase of $2.0 billion in
advance 2009 funding.
The House amendment's increased funding could be used for
vital programs that help children and adults who most need
assistance, including Head Start, Title I and other elementary
and secondary education programs authorized under the No Child
Left Behind Act, and employment training and national service
programs such as VISTA. The additional funding also could
bolster the federal government's commitment to cover a growing
share of the cost of special education under the Individuals
with Disabilities Education Act. Finally, the increased funds
could help secure college access, equity, and success for every
American by raising the maximum Pell Grant to at least $4,600,
maintaining Supplemental Opportunity Educational Grants and the
Leveraging Educational Assistance Partnerships, and broadening
access to Hispanic-serving institutions, Historically Black
Colleges and Universities, and other high-quality educational
opportunities.
The House amendment also contains a reserve fund to
accommodate legislation that makes college more affordable.
Conference Agreement
The conference agreement includes $93.9 billion in BA and
$91.0 billion in outlays in 2008 as well as $2.0 billion in
advance 2009 funding, and $492.3 billion in BA and $480.1
billion in outlays over five years. For 2008, the conference
agreement provides $7.5 billion above the President in
discretionary BA, plus the additional $2.0 billion in advance
BA for 2009. The conference report rejects the President's
program eliminations and cuts. Additional funding is provided
for investments in educational opportunities, social services,
and job training.
The conference agreement recognizes that funding for
education programs has been insufficient to meet the mandates
created by federal laws, and, even more important, to ensure
that every child receives a world-class education. The
agreement envisions significant investments in this area.
The conference agreement recognizes that early childhood
education programs provide a sound return on investment.
Despite efforts to increase preschool programs at the state
level, the conference agreement acknowledges that many
preschool children do not have access to early childhood
education programs and further investments should be considered
at the federal level. The conference agreement also contains a
reserve fund to accommodate legislation that makes college more
affordable.
Health: Function 550
Function Summary
The Health function includes most direct health care
service programs as well as funding for anti-bioterrorism
activities, national biomedical research, protecting the health
of the general population and workers in their places of
employment, providing health services for under-served
populations, and promoting training for the health care
workforce. The major programs in this function include
Medicaid, the State Children's Health Insurance Program
(SCHIP), health benefits for federal workers and retirees, the
National Institutes of Health (NIH), the Food and Drug
Administration (FDA), the Health Resources and Services
Administration (HRSA), the Centers for Disease Control and
Prevention (CDC), the Substance Abuse and Mental Health
Services Administration (SAMHSA), the Indian Health Service
(IHS), and the Agency for Healthcare Research and Quality.
Senate Resolution
The Senate resolution calls for a total of $291.3 billion
in BA and $290.2 billion in outlays for 2008, and $1.7 trillion
in BA and $1.7 trillion in outlays over five years. The Senate
resolution includes increases above the 2007 enacted level
adjusted for inflation for NIH, HRSA, CDC, FDA, and IHS.
Significant increases for Community Health Centers and health
professions within HRSA are also included. The Senate
resolution assumes funding for the last phase of HHS' National
Strategy for Pandemic Influenza. The resolution rejects the
President's proposed $146 million cut for Rural Health
Activities in HRSA. The resolution also supports funding
demonstration programs to provide patient navigator services as
authorized in the Patient Navigator, Outreach, and Chronic
Disease Prevention Act under HRSA. In addition, the Senate
resolution contains various health care related deficit-neutral
reserve funds, including a reserve fund for SCHIP legislation.
House Amendment
The House amendment calls for a total of $286.8 billion
in BA and $286.3 billion in outlays for 2008 and $1.6 trillion
in BA and outlays over five years. The discretionary resources
for Function 550 for 2008 represent an increase over both the
2007 level and the President's request. The House amendment
increases resources for public health programs to provide for
advances in science, improvements in health, access to quality
health care for underserved populations, and other critical
programs.
Programs in Function 550 are also addressed in the House
amendment's deficit-neutral reserve funds for SCHIP and for
Transitional Medical Assistance.
Conference Agreement
The conference agreement includes a total of $287.5
billion in BA and $286.4 billion in outlays for 2008, and $1.6
trillion in BA and $1.6 trillion in outlays over five years. In
addition to increases for other health agencies, the conference
agreement includes significant increases for Community Health
Centers and the National Health Service Corps within HRSA as
well as funding for patient navigator services. The conference
agreement also contains several health care related deficit-
neutral reserve funds, including a reserve fund for SCHIP
legislation.
Medicare: Function 570
Function Summary
The Medicare function includes funding to administer and
to provide benefits under the Medicare program. Medicare is a
federal health insurance program that currently covers 43
million Americans aged 65 and older, as well as younger adults
who are disabled or suffer from end-stage renal disease.
Congress provides an annual appropriation for the costs
of administering Medicare, including resources to conduct
program integrity activities to guard against improper
payments, fraud, and abuse. The remainder of spending in this
function is mandatory and reflects payments to health care
providers and private insurance plans, as well as beneficiary
premiums and other receipts and payments to the Medicare trust
funds, under the Part A Hospital Insurance (HI) program, the
Part B Supplementary Medical Insurance (SMI) program, the Part
C Medicare Advantage program, and the Part D Prescription Drug
program.
Senate Resolution
The Senate resolution calls for a total of $390.0 billion
in BA and $390.0 billion in outlays for 2008, and $2.2 trillion
in BA and $2.2 trillion in outlays over five years. For 2008,
the discretionary funding levels in this function include a
discretionary cap adjustment of up to $383 million for program
integrity activities of the Health Care Fraud and Abuse Control
(HCFAC program) to address improper payments, fraud, and abuse
in the Medicare program. In addition, the mandatory funding
levels in this function assume Medicare savings of $15.0
billion over five years from reducing certain overpayments to
health care providers. Specific policies to enact these savings
will be determined by the Senate Finance Committee. The
function also assumes an additional savings of $400 million
over five years to offset SCHIP shortfall legislation.
House Amendment
The House amendment reflects a total of $389.6 billion in
BA and $389.7 billion in outlays in 2008, and $2.2 trillion in
BA and $2.2 trillion in outlays over five years. It assumes the
extension of Medicare premium assistance for qualified
individuals with incomes between 120 and 135 percent of the
federal poverty level and limited financial resources. The
amendment assumes that savings from Medicare program efficiency
improvements will offset the costs of extending the premium
assistance program as well as other initiatives to improve the
Medicare program for beneficiaries.
The House amendment assumes targeted assistance to
hospitals with 100 beds or more that have faced a reduction in
Medicare disproportionate share hospital payments due to
assignment to a Micropolitan area.
The amendment accommodates a discretionary cap adjustment
of $183 million for additional activities aimed at detecting
and preventing Medicare fraud. The Health Care Fraud and Abuse
Control program--a joint effort of the Department of Health and
Human Services, the HHS Office of Inspector General, and the
Department of Justice--generated roughly $4 in program savings
for every dollar spent in 2004 and 2005.
The House amendment also contains a reserve fund to
accommodate legislation for Medicare program improvements.
Conference Agreement
The conference agreement reflects a total of $389.6
billion in BA and $389.7 billion in outlays in 2008, and $2.2
trillion in BA and $2.2 trillion in outlays over five years.
Discretionary and mandatory spending levels in this function
are consistent with the CBO baseline funding levels.
For fiscal year 2008, the discretionary funding levels in
Function 920 include a discretionary cap adjustment of up to
$383 million for program integrity activities of the Health
Care Fraud and Abuse Control (HCFAC) program, to address
improper payments, fraud and abuse in the Medicare program.
Income Security: Function 600
Function Summary
The Income Security function contains a range of income
security programs including: (1) major cash and in-kind means-
tested entitlements; (2) general retirement, disability, and
pension programs excluding Social Security and veterans'
compensation programs; (3) federal and military retirement
programs; (4) unemployment compensation; (5) low-income housing
programs; and (6) other low-income support programs. Major
federal entitlement programs in this function include
unemployment insurance, food stamps, child nutrition, Temporary
Assistance to Needy Families (TANF), foster care, child support
enforcement, child care, Supplemental Security Income, and
spending for the refundable portion of the Earned Income
Credit.
Senate Resolution
The Senate resolution calls for a total of $379.8 billion
in BA and $383.6 billion in outlays for 2008, and $2.0 trillion
in BA and $2.0 trillion in outlays over five years. The Senate
resolution includes increases for the Low-Income Home Energy
Assistance Program to continue providing heating and cooling
assistance to over five million low income households,
including the working poor, disabled persons, elderly, and
families with young children. The Senate resolution also
includes a deficit-neutral reserve fund to provide up to an
additional $5.0 billion in mandatory child care funding.
House Amendment
The House amendment calls for a total of $379.9 billion
in BA and $383.5 billion in outlays for 2008 and $2.0 trillion
in BA and outlays over five years. The House amendment provides
increased funding that could be used to meet urgent needs
related to Hurricane Katrina recovery and to begin addressing
long-ignored challenges facing children and families, including
large backlogs in the Social Security disability system. The
amendment also includes a deficit-neutral reserve fund to
facilitate the reauthorization of the Farm Bill, providing
resources for such objectives as to secure an economic safety
net for agricultural producers, conserve our natural resources,
and address nutrition needs.
Conference Agreement
The conference agreement includes a total of $380.8
billion in BA and $384.3 billion in outlays for 2008, and $2.0
trillion in BA and $2.0 trillion in outlays over five years.
The total includes increased funding for the Low-Income Home
Energy Assistance Program, critical Hurricane Katrina recovery
efforts, and other challenges, including a reduction of Social
Security disability backlogs. The total Income Security funding
level in the conference report (including Function 920) also
assumes the President's full request for a cap adjustment for
program integrity efforts, including additional funding for in-
person reemployment and eligibility assessments and
unemployment insurance improper payment reviews, but does not
assume enactment of proposals which would adversely affect
workers who have received unemployment benefits. The conference
agreement also includes a deficit-neutral reserve fund to
provide up to an additional $5.0 billion in mandatory child
care funding and a farm bill reserve fund which accommodates
nutrition needs.
Social Security: Function 650
Function Summary
The Social Security function includes funding for the
Old-Age, Survivors, and Disability Insurance (OASDI) programs,
which provide earned Social Security benefits to nearly 50
million eligible retired workers, disabled persons, and their
spouses and survivors. In addition, this function provides
funding to the Social Security Administration (SSA) and the
Office of the Inspector General (OIG) to administer the Social
Security program and ensure program integrity.
Under provisions of the Congressional Budget Act and the
Budget Enforcement Act, the Old-Age and Survivors Insurance
(OASI) trust fund and the Disability Insurance (DI) trust fund
are off-budget and do not appear in the budget resolution
totals. A small portion of spending in Function 650, the
general fund transfer of income taxes on Social Security
benefits to the trust funds, is considered on-budget and
appears in the budget resolution totals.
Senate Resolution
The Senate resolution calls for $19.6 billion in on-
budget BA and outlays for 2008, and $121.8 billion in on-budget
BA and outlays over five years. (The corresponding figures on a
unified basis are $615.3 billion in BA and $612.8 billion in
outlays for 2008 and $3.4 trillion in BA and outlays over five
years.) This spending reflects the general fund transfer of
income taxes on Social Security benefits to the trust funds.
For 2008, the Senate resolution provides $5.1 billion in
BA and $5.1 billion in outlays for SSA administrative expenses,
as outlined in section 102(c) of the resolution, which
represents a $297 million increase over the President's
request. The additional funding is intended to help address the
serious and growing backlog of Social Security disability
claims and hearings.
House Amendment
The House amendment reflects $19.6 billion in on-budget
BA and outlays for 2008, and $121.8 billion in on-budget BA and
outlays over five years. (The corresponding figures on a
unified basis are $615.0 billion in BA and $612.6 billion in
outlays for 2008 and $3.4 trillion in BA and outlays over five
years.) It rejects the President's private account proposal for
Social Security.
The administrative budget for the Social Security
Administration (SSA) includes resources in Function 570
(Medicare) and Function 600 (Income Security) as well as
Function 650. The House amendment assumes a $9.9 billion
discretionary funding level for SSA. The additional resources
will prevent increases in the backlogs of disability decisions
and hearings that would occur under the President's budget. The
House amendment will enable SSA to address the significant
number of individuals waiting for disability and hearing
decisions.
The House amendment also accommodates an additional $213
million through a discretionary cap adjustment for program
integrity initiatives. The cap adjustment allows the agency to
conduct an increasing number of Continuing Disability Reviews
(CDRs) and Supplemental Security Income redeterminations.
Conference Agreement
The conference agreement includes $19.6 billion in on-
budget BA and outlays for 2008, and $121.8 billion in on-budget
BA and outlays over five years. (The corresponding figures on a
unified basis are $615.0 billion in BA and $612.6 billion in
outlays for 2008 and $3.4 trillion in BA and outlays over five
years.) The discretionary and mandatory funding levels in this
function are consistent with the CBO baseline.
For 2008, the conference agreement provides total net
resources for the administrative expenses of SSA and the OIG
(across all relevant functions) of $10.1 billion, $430 million
above the President's requested level. The total SSA funding
level in the conference agreement assumes both the President's
full request for a cap adjustment in Function 920 for program
integrity efforts (including continuing disability reviews
(CDRs) and SSI redeterminations) as well as additional
resources in Function 600 to address the disability hearings
and claims backlog.
Veterans Benefits and Services: Function 700
Function Summary
The Veterans Benefits and Services function covers the
programs of the Department of Veterans Affairs (VA), including
veterans' medical care, compensation and pensions, education
and rehabilitation benefits, and housing programs. It also
includes the Department of Labor's Veterans' Employment and
Training Service, the United States Court of Appeals for
Veterans Claims, and the American Battle Monuments Commission.
Senate Resolution
The Senate resolution calls for a total of $85.3 billion
in BA and $84.4 billion in outlays for 2008, and $448.4 billion
in BA and $446.8 billion in outlays over five years. The Senate
resolution provides $43.1 billion in BA in 2008 for
discretionary veterans' programs, including medical care. This
amount is $3.6 billion more than the President's proposed
funding level and represents 98 percent of the level requested
in The Independent Budget, a plan developed by four leading
veterans' groups. The funding in the Senate resolution will
ensure that the Veterans Health Administration within VA can
provide the highest quality health care for all veterans.
In 2005, the President's budget underfunded the Veterans
Health Administration, and VA was forced to ask Congress for
two supplemental funding requests. The Senate resolution
provides full funding to ensure that VA can meet its
obligations to veterans.
The Senate supports the determination that robust
resources are needed by VA to address the backlog and delay in
the disability evaluation and claims process, and that funding
should be dedicated to address and improve this process.
House Amendment
The House amendment reflects a total of $85.2 billion in
BA and $82.8 billion in outlays for 2008, and $452.8 billion in
BA and $448.2 billion in outlays over five years. For 2008, the
House amendment provides $6.6 billion of discretionary BA over
the 2007 level, for a level that is $3.5 billion above the 2008
funding in the President's budget. The amendment reflects the
high priority of adequately funding veterans programs. It
rejects the veterans' health care enrollment fees and co-
payment increases that were imposed by the President's budget.
The House amendment provides full funding to support
excellent health care for veterans and current service members.
In particular, the House amendment provides funding to begin
implementing future recommendations of the President's
Commission on Care for America's Returning Wounded Warriors
(the bi-partisan ``Walter Reed Commission'') and other United
States Government investigations into military and veterans'
health care facilities and services.
The House amendment provides additional funding in
Function 700 above the President's requested levels for 2008 to
address important priorities including veterans' mental health,
post-traumatic stress disorder, traumatic brain injury, and
spinal cord injury. The amendment also has additional funding
for disability compensation claims processing so that VA can
significantly reduce the inventory of pending claims.
Conference Agreement
The conference agreement provides a total of $85.3
billion in BA and $84.4 billion in outlays for 2008 and $452.8
billion in BA and $450.9 billion in outlays over five years.
The conference agreement provides $43.1 billion in 2008 for
discretionary veterans' programs, including medical care. This
amount is $6.7 billion more than the 2007 enacted level and
$3.6 billion more than the President's proposed funding level
for 2008. This level is consistent with the Independent Budget,
a plan developed by four leading veterans' groups, and
recommendations of the American Legion.
Administration of Justice: Function 750
Function Summary
The Administration of Justice function includes funding
for federal law enforcement activities at the Department of
Justice (DOJ) including criminal investigations by the Federal
Bureau of Investigation (FBI) and the Drug Enforcement Agency
(DEA). The function also includes funding for border
enforcement by the Department of Homeland Security (DHS).
Additionally, the function includes funding for civil rights
enforcement and prosecution; federal block, categorical, and
formula law enforcement grant programs to state and local
governments; prison construction and operation; the United
States Attorneys; and the federal judiciary.
Senate Resolution
The Senate resolution calls for a total of $48.8 billion
in BA and $47.1 billion in outlays for 2008, and $242.8 billion
in BA and $242.9 billion in outlays over five years. This level
restores cuts proposed in the President's budget and provides
additional resources for several law enforcement grant programs
such as COPS, including meth hotspot grants, and the Edward
Byrne Memorial Justice Assistance Grant program. In addition,
the Senate resolution restores cuts and provides additional
resources to the State Criminal Alien Assistance Program. The
Senate resolution also includes increases in funding proposed
in the President's budget for border security.
House Amendment
The House amendment reflects a total of $46.9 billion in
BA and $46.2 billion in outlays in 2008, and $238.2 billion in
BA and $238.3 billion outlays over five years. The House
amendment rejects the cuts to local law enforcement and first
responders in the President's budget, including cuts to the
Edward Byrne Memorial Justice Assistance Grant program. The
amendment provides funding above the President's budget level
for 2008 for that purpose and for purposes such as protecting
the borders and funding the
9/11 Commission recommendations.
Conference Agreement
The conference agreement includes a total of $48.0
billion in BA and $47.1 billion in outlays for 2008, and $246.8
billion in BA and $246.4 billion in outlays over five years.
The agreement continues funding for local law enforcement,
including Edward Byrne Memorial Justice Assistance Grants and
COPS grants. In addition, the agreement also provides resources
to help meet the 9/11 Commission recommendations and to protect
the borders.
General Government: Function 800
Function Summary
The General Government function consists of the
activities of the Legislative Branch, the Executive Office of
the President, general tax collection and fiscal operations of
the Department of the Treasury (including the IRS), the Office
of Personnel Management, the property and personnel costs of
the General Services Administration, and general purpose fiscal
assistance to states, localities, the District of Columbia, and
U.S. territories.
Senate Resolution
The Senate resolution calls for $18.8 billion in BA and
$19.1 billion in outlays for 2008 and $98.6 billion in BA and
$98.6 billion in outlays over five years. The Senate resolution
fully funds the President's budget request for the IRS,
including additional resources available through a
discretionary cap adjustment that directs $406 million to IRS
enforcement activities. The Senate resolution includes reserve
funds to accommodate legislation to reduce the deficit by
reducing improper payments and requiring recovery audits. It
also includes a deficit-neutral reserve fund to accommodate
legislation that reauthorizes the Secure Rural Schools and
Community Self-Determination Act of 2000. The expiration of
this law would have a significant impact on rural communities.
The Senate resolution also includes funding for a Commission on
Budgetary Accountability and Review of Federal Agencies.
House Amendment
The House amendment reflects a total of $18.6 billion in
BA and $19.0 billion in outlays for 2008 and $99.8 billion in
BA and $99.7 billion in outlays over five years. The House
amendment includes a program integrity initiative to increase
Internal Revenue Service tax compliance efforts to collect
unpaid taxes from those who are not paying what they owe. The
funding in this function is adequate to provide for the
reestablishment of the Office of Technology Assessment. The
amendment also includes a deficit-neutral reserve fund to
accommodate legislation that reauthorizes the Secure Rural
Schools and Community Self-Determination Act of 2000.
Conference Agreement
The conference agreement includes $18.6 billion in BA and
$19.0 billion in outlays for 2008, and $99.7 billion in BA and
$99.6 billion in outlays over five years. It fully funds the
President's budget request for the IRS, including additional
resources available through a discretionary cap adjustment
(included in Function 920) that directs $406 million to IRS
enforcement activities. The conference agreement includes a
deficit-neutral reserve fund to accommodate legislation that
provides for the reauthorization of the Secure Rural Schools
and Community Self-Determination Act of 2000, or makes changes
to the Payments in Lieu of Taxes Act of 1976, or both.
Net Interest: Function 900
Function Summary
The Net Interest function is entirely mandatory with no
discretionary components. It consists primarily of the interest
paid by the federal government to private and foreign
government holders of U.S. Treasury securities. It includes the
interest on the public debt after deducting the interest income
received by the federal government from trust fund investments,
loans and cash balances, and earnings of the National Railroad
Retirement Investment Trust.
The Federal government's net interest payments on its
debt increased by 48 percent between 2003 and 2006 and is now
one of the largest components of the federal budget.
Senate Resolution
The Senate resolution calls for BA and outlays of $255.5
billion in unified net interest payments in 2008 and a total of
$1.4 trillion over five years.
House Amendment
The House amendment calls for BA and outlays of $254.6
billion in unified net interest payments in 2008 and a total of
$1.4 trillion over five years.
Conference Agreement
The conference agreement includes BA and outlays of
$255.7 billion in unified net interest payments in 2008 and a
total of $1.4 trillion over five years.
Allowances: Function 920
Function Summary
The Allowances function is used for planning purposes to
address the budgetary effects of proposals or assumptions that
cross several budget functions. Once such changes are enacted,
the budgetary effects are distributed to the appropriate budget
function.
Senate Resolution
The Senate resolution calls for a total of -$16.7 billion
in BA and -$7.5 billion in outlays for 2008, and -$46.5 billion
in BA and -$38.1 billion in outlays over five years.
House Amendment
The House amendment did not include any spending or cuts
in Function 920.
Conference Agreement
The conference agreement includes a total of -$6.4
billion in BA and -$2.2 billion in outlays for 2008, and -$35.2
billion in BA and -$30.0 billion in outlays over five years.
These funding levels reflect adjustments for program integrity
and other non-security adjustments.
Undistributed Offsetting Receipts: Function 950
Function Summary
The Undistributed Offsetting Receipts function includes
major offsetting receipt items that would distort the funding
levels of other functional categories if they were distributed
to them. Examples of such items include the employer share of
federal employee retirement benefits, outer continental shelf
rents and royalties, and the sale of major assets.
Senate Resolution
The Senate resolution calls for unified undistributed
offsetting receipts of -$84.7 billion in BA and outlays for
2008 and -$422.1 billion over five years. That amount generally
matches CBO's baseline estimate of undistributed offsetting
receipts, with the exception that it assumes -$775 million in
2008 and -$3.1 billion over the 2008-2012 period in additional
offsetting receipts from legislation to provide a remedy for
errors in certain oil and gas leases.
House Amendment
The House amendment represents CBO's baseline estimate of
unified undistributed offsetting receipts of -$83.9 billion in
BA and outlays for 2008 and -$419.0 billion over five years.
Conference Agreement
The conference agreement includes a total of unified
undistributed offsetting receipts of -$83.9 billion in BA and
outlays for 2008 and -$419.0 billion over five years.
Overseas Deployments and Other Activities: Function 970
Function Summary
This is a new function included in the House amendment,
consisting of funding for overseas deployments and other
activities.
Senate Resolution
The Senate resolution did not include Function 970.
House Amendment
The House amendment includes the House-passed
supplemental for 2007 (H.R. 1591) in Function 970 and, as a
placeholder, accommodates up to the President's funding levels
for overseas deployments and related activities in 2008 and
2009.
Conference Agreement
The Senate recedes to the House amendment to include
Function 970. As a placeholder, the conference agreement's
levels accommodate the President's requests for overseas
deployments and other activities for 2008 and 2009, as well as
the conference agreement for H.R. 1591, the supplemental
appropriations bill for 2007 (excluding outyear changes in
mandatory programs).
Budget Enforcement
Senate Resolution
Sec. 201. Paygo
Section 201 of the Senate-passed resolution would restore
the strong paygo, or pay-as-you-go, rule in the Senate. The
paygo rule requires that new mandatory spending and tax cuts be
offset or get 60 votes. Reinstating a strong paygo rule
represents a crucial first step in restoring fiscal discipline.
Paygo was instrumental in our turning deficits into surpluses
in the 1990s.
Paygo does not prohibit new mandatory spending or new tax
cuts. It simply says that they should be paid for so that the
deficit isn't worsened. Paygo ensures that if something is not
paid for, it can only pass if it has broad bipartisan support.
The current paygo rule, which expires on September 30,
2008, includes a loophole that exempts all legislation assumed
in any budget resolution. The Senate resolution would eliminate
this loophole and apply paygo to all new mandatory spending and
revenue legislation. It would extend the stronger paygo rule
through 2017 and effectively repeal the current, weaker version
of the paygo rule. Consistent with ending this loophole, the
Senate resolution assumes that all existing balances on the
Congressional pay-as-you-go ledger would be eliminated, and the
scorecard reset to zero for all time periods.
The Senate resolution also clarifies language in the
paygo rule which prohibits any net savings enacted in any bill
pursuant to a reconciliation instruction from being made
available on the paygo ledger. In 1993, the Senate originally
created the paygo rule as a provision in the FY1994 budget
resolution (H. Con. Res. 64), specifically for the purpose of
preventing the deficit reduction expected to be achieved in a
subsequent reconciliation bill from being used to offset the
costs of any new mandatory spending or revenue legislation. The
Senate resolution restores this original intent, by clarifying
that savings enacted in any reconciliation bill shall never be
placed on the paygo ledger and used as offsets for another
reconciliation bill (even if enacted pursuant to reconciliation
instructions in the same budget resolution) or as offsets for
any other legislation. For paygo purposes, all net savings
enacted pursuant to reconciliation are to be dedicated solely
to deficit reduction.
Sec. 202. Point of Order Against Reconciliation Legislation
That Would Increase the Deficit or Reduce a Surplus
Section 202 of the Senate resolution creates a new 60-
vote point of order against reconciliation measures that would
cause or increase an on-budget deficit or decrease an on-budget
surplus. Reconciliation is a fast-track process that was
intended to be used for deficit reduction. Unfortunately, in
recent years the reconciliation process has been abused as a
fast-track means of enacting legislation that has dramatically
worsened deficits and increased our debt.
Sec. 203. Point of Order Against Long-Term Deficit
Increases
Section 203 of the Senate resolution establishes a 60-
vote point of order against legislation that would cause a net
deficit increase in excess of $5.0 billion (including changes
in revenues and mandatory spending, but excluding debt service)
in any of the four ten-year periods 2018-2027, 2028-2037, 2038-
2047, or 2048-2057. The provision sunsets at the end of 2017,
and effectively repeals the long-term spending point of order
in Section 407 of H. Con. Res. 95, the fiscal year 2006 budget
resolution conference report.
Sec. 204. Point of Order Against Emergency Designations
Under Section 204 of the Senate resolution, all emergency
designations would be subject to an emergency designation point
of order, which can only be waived with 60 votes.
Sec. 205. Extension of 60-Vote Enforcement
Section 205 of the Senate resolution extends the current
60-vote enforcement of existing budgetary points of order
through 2017.
Sec. 206. Advance Appropriations
Section 206 of the Senate resolution would provide a
supermajority point of order against appropriations in fiscal
year 2008 bills that would first become effective in any year
after fiscal year 2008, and against appropriations in fiscal
year 2009 bills that would first become effective in any year
after 2009. It does not apply against appropriations for the
Corporation for Public Broadcasting, nor does it apply against
changes in mandatory programs or deferrals of mandatory budget
authority from one year to the next. There is an exemption for
each of fiscal years 2008 and 2009 of up to $25.2 billion for
the following:
Labor, HHS:
Employment and Training Administration
Education for the Disadvantaged
School Improvement
Children and Family Services (Head Start)
Special Education
Vocational and Adult Education
Financial Services and General Government: Payment to Postal
Service
Transportation, Housing and Urban Development: Section 8
Renewals
Sec. 207. Discretionary Spending Caps
Currently, there are no discretionary spending limits for
any fiscal year. Section 207 of the Senate resolution would
strengthen fiscal responsibility by establishing discretionary
spending limits for 2007 and 2008, and enforce them with a
point of order in the Senate that could only be waived with 60
votes.
Section 207 of the Senate resolution permits adjustments
to the discretionary spending limits in 2008 for program
integrity initiatives, including Social Security Administration
continuing disability reviews and Supplemental Security Income
redeterminations, enhanced Internal Revenue Service tax
enforcement to address the tax gap, appropriations for Health
Care Fraud and Abuse Control (HCFAC) program at the Department
of Health and Human Services, and unemployment insurance
improper payment reviews. It also provides for adjustments in
2008 and 2009 for war-related expenses.
Sec. 208. Inapplicability of Previous Allocations
Because the Senate resolution establishes new
discretionary spending limits for 2007 and 2008 and new
committee spending allocations pursuant to section 302(a) of
the Congressional Budget Act of 1974, Section 208 of the Senate
resolution clarifies that the ``deeming'' provisions of last
year's emergency supplemental in Section 7035 of Public Law
109-234 shall no longer apply in the Senate.
Sec. 209. Point of Order To Save Social Security First
Section 209 of the Senate resolution creates a 60-vote
point of order requiring the President to submit a legislative
proposal to Congress and requiring Congress to enact
legislation that would ensure the long-term solvency of Social
Security, before Congress considers any legislation that would
worsen budget deficits and weaken the solvency of Social
Security.
Sec. 210. Point of Order Against Legislation That Raises
Income Tax Rates
Section 210 of the Senate resolution would create a 60-
vote point of order against any legislation that includes a
Federal income tax rate increase.
Sec. 211. Circuit Breaker To Protect Social Security
Section 211 of the Senate resolution would create a 60-
vote point of order, in any year in which CBO projects an on-
budget deficit for the budget year or any subsequent fiscal
year, against a budget resolution for that year (and amendments
thereto) which would fail to reduce on-budget deficits relative
to CBO's projections and put the budget on a path to achieve
on-budget balance within five years. There is an exception
during times of war and low economic growth.
Sec. 212. Point of Order--20% Limit on New Direct Spending
in Reconciliation Legislation
Section 212 of the Senate resolution would create a 60-
vote point of order against provisions of any reconciliation
legislation (and provisions of any amendment thereto) that
would increase outlays if the effect of all the provisions in
any committee's jurisdiction would create gross new direct
spending exceeding 20% of the total savings instruction to that
committee.
Sec. 213. Point of Order Against Legislation That Raises
Income Tax Rates for Small Businesses, Family
Farms, or Family Ranches
Section 213 of the Senate resolution would create a 60-
vote point of order against legislation that includes a Federal
income tax rate increase on incomes generated by small
businesses, family farms, or family ranches.
Sec. 214. Point of Order Against Provisions of
Appropriations Legislation That Constitute Changes
in Mandatory Programs With Net Costs
Section 214 of the Senate resolution would create a 60-
vote point of order against provisions of appropriations
legislation that would have been estimated as affecting direct
spending or receipts were they included in legislation other
than appropriations legislation, if such provision has a net
cost over the total of the period of the current year, the
budget year, and all fiscal years covered under the most
recently-adopted concurrent resolution on the budget.
Sec. 215. Disclosure of Interest Costs
Section 215 of the Senate resolution is a 60-vote point
of order against direct spending and revenue legislation that
fails to include a CBO estimate of the cost of the debt
servicing that would be caused by such legislation.
Sec. 325. Application and Effect of Changes in Allocations
and Aggregates
Section 325 of the Senate resolution details the
adjustment procedures required to accommodate legislation
provided for in this resolution. This section provides that the
adjustments shall apply while the legislation is under
consideration and take effect upon enactment of the
legislation. In addition, the section requires the adjustments
to be printed in the Congressional Record.
The section also notes that, for purposes of enforcement,
aggregate and allocation levels resulting from adjustments made
pursuant to this resolution will have the same effect as if
adopted in the original levels of Title I of this resolution.
This section also provides that the Committee on the Budget
shall determine the budgetary levels and estimates which are
required to enforce points of order under the Congressional
Budget Act.
Sec. 326. Adjustments To Reflect Changes in Concepts and
Definitions
Section 326 of the Senate resolution requires the
chairman of the Committee on the Budget to adjust levels and
allocations in this resolution upon enactment of legislation
that changes concepts or definitions.
Sec. 327. Exercise of Rulemaking Powers
Section 327 of the Senate resolution provides that, once
adopted, the provisions of the resolution are incorporated into
the rules of the Senate and shall supersede inconsistent rules.
The section recognizes the constitutional right of the Senate
to change those rules at any time.
House Amendment
Sec. 301. Program Integrity Initiatives
Section 301 of the House amendment provides for specific
allocation adjustments for the Committee on Appropriations when
the Committee reports legislation that includes increased
appropriations for the following four program integrity
initiatives: (1) continuing disability reviews and Supplemental
Security Income redeterminations for the Social Security
Administration; (2) improved compliance with the provisions of
the Internal Revenue Code; (3) the Health Care Fraud and Abuse
Control program at the Department of Health and Human Services;
and (4) unemployment insurance improper payment reviews.
The adjustments under this section are intended to do no
more than provide additional administrative funding for current
program integrity activities to eliminate errors or fraud in
the operation of a number of Federal programs and compliance
with Federal tax laws. For example, the adjustment for
unemployment compensation programs is provided to increase
limited administrative funding for current program integrity
activities, and not to finance other proposals that would
adversely affect workers who have received unemployment
benefits.
The section outlines procedures for these allocation
adjustments. In addition, the section directs committees of the
House of Representatives to include recommendations for
improved governmental performance in views and estimates
submitted to the Committee on the Budget pursuant to section
301(d) of the Congressional Budget Act.
Sec. 302. Advance Appropriations
Section 302 of the House amendment limits the amount and
type of advance appropriations for 2009 and 2010. Under this
section, advance appropriations for 2009 or 2010 are restricted
to $25.6 billion for programs, projects, activities, or
accounts identified in the joint explanatory statement of
managers that will accompany this resolution. This total
reflects an increase of $2.0 billion over the previous limit.
The section defines advance appropriations as any new
discretionary budget authority provided in a bill or joint
resolution making general or continuing appropriations for 2008
that first becomes available for any fiscal year after 2008.
Sec. 303. Overseas Deployments and Emergency Needs
Section 303 of the House amendment establishes a
procedure whereby provisions or measures reported by the
Committee on Appropriations will be exempt from the
restrictions under titles III and IV of the Congressional
Budget Act of 1974. The exemption will apply if: (1) the
Committee determines and designates that amounts appropriated
are necessary for overseas deployments and related activities;
or, (2) the Committee provides nondefense discretionary
appropriations and designates those amounts as necessary to
meet emergency needs.
Sec. 304. Application and Effect of Changes in Allocations
and Aggregates
Section 304 of the House amendment details the allocation
and aggregate adjustment procedures that are required to
accommodate legislation for the reserve funds and program
integrity initiatives in this resolution. This section provides
that the adjustments shall apply while the legislation is under
consideration and take effect upon enactment of the
legislation. In addition, the section requires the adjustments
to be printed in the Congressional Record.
The section also notes that, for purposes of enforcement,
aggregate and allocation levels resulting from adjustments made
pursuant to this resolution will have the same effect as if
adopted in the original levels of Title I of this budget
resolution. This section also provides that the Committee on
the Budget shall determine the budgetary levels and estimates
which are required to enforce points of order under the
Congressional Budget Act.
Sec. 305. Adjustments To Reflect Changes in Concepts and
Definitions
Section 305 of the House amendment requires the chairman
of the Committee on the Budget to adjust levels and allocations
in this budget resolution upon enactment of legislation that
changes concepts or definitions.
Sec. 306. Compliance With Section 13301 of the Budgetary
Enforcement Act of 1990
Section 306 of the House amendment provides that
administrative expenses of the Social Security Administration
shall be part of the annual appropriations process by including
those expenses in the Committee on Appropriations' allocation
pursuant to Section 302 of the Congressional Budget Act.
Sec. 307. Exercise of Rulemaking Powers
Section 307 of the House amendment provides that, once
adopted, the provisions of the budget resolution are
incorporated into the rules of the House of Representatives and
shall supersede inconsistent rules. The section recognizes the
constitutional right of the House of Representatives to change
those rules at any time.
Conference Agreement
In January, the House of Representatives adopted the
first-ever House of Representatives pay-as-you-go (paygo)
rule--specifying that any legislative changes to mandatory
spending or revenues would have to be done in a deficit-neutral
way. Given the serious long-term fiscal challenges including a
growing burden of national debt facing our nation, a rigorous
enforcement of paygo is especially critical. The House has
aggressively enforced the paygo requirement since its passage,
and in this resolution the House and Senate reaffirm a
commitment to a strict enforcement of the pay-as-you-go rules.
The House's commitment to paygo is also reinforced by the tough
trigger mechanism contained in Section 321 of the conference
agreement and further described in Section 321 of this
Statement of Managers.
The following are the concrete steps the conference
report takes to reinforce and extend this commitment to fiscal
responsibility:
First, Section 201 of the conference report toughens the
Senate paygo rule, restoring it to the form that existed in the
1990s. This session of Congress will mark the first time ever
that both the House and the Senate will be governed by internal
rules implementing the pay-as-you-go principle. To ensure that
these rules are more effectively enforced, the Senate paygo
rule included in this resolution matches the enforcement
windows established in the House rule.
Second, Section 508 of the conference report expresses
Congress's commitment to an additional paygo enforcement
mechanism: reinstating the statutory paygo rule that was in
place in the 1990s and that is widely credited with helping
bring the budget from then-record deficits in the early 1990s
to the budget surpluses achieved by the end of that decade.
Because the conference agreement is a concurrent resolution,
separate legislation will be required to implement this policy,
but the conference report gives this policy a strong and clear
endorsement.
Third, Section 203 of the conference report contains a
Senate point of order that would be imposed against legislation
that has a significant deficit impact in any of the four
decades (2018-2057) following the ten-year period covered by
the House and Senate paygo rules.
Fourth, Section 321 of the conference report includes a
House trigger mechanism to ensure that legislation is fiscally
responsible or faces a second procedural hurdle in the House in
addition to the paygo rule.
In all, this conference report implements policies and
rules consistent with fiscal responsibility and the pay-as-you-
go principle, ensuring that they apply to the actions of the
entire Congress. The goal is to bring the budget back to
balance, something that this conference report achieves in
2012.
Sec. 201. Pay-As-You-Go Point of Order in the Senate
In Section 201 of the conference agreement, which applies
only in the Senate, the Senate insists on, and the House
recedes from its disagreement with, Section 201 of the Senate
resolution, the paygo point of order in the Senate, with a
technical amendment to enforce points of order over two time
periods: (1) the period of the current fiscal year, the budget
year, and the total of the ensuing four fiscal years following
the budget year, and (2) the period of the current fiscal year,
the budget year, and the total of the ensuing nine fiscal years
following the budget year. These are the time periods for which
paygo is enforced in the House.
As in the past, the paygo rule embodied in Section 201 of
the conference agreement requires that new mandatory spending
and tax cuts be offset or get 60 votes to waive the point of
order. Section 201 strengthens paygo enforcement by eliminating
a loophole that previously exempted from the point of order all
deficit increases assumed in any budget resolution. Under
Section 201, paygo will be applied to all new mandatory
spending and revenue legislation that would worsen the deficit
in either of the two relevant time periods. It would extend
this stronger paygo rule through 2017 and effectively repeal
the current, weaker version of the paygo rule.
Consistent with ending this loophole, the Senate
resolution assumes that all existing balances on the
Congressional pay-as-you-go ledger would be eliminated, and the
scorecard reset to zero for all time periods.
Section 201 of the conference agreement also clarifies
language in the paygo rule which prohibits any net savings
enacted in any bill pursuant to a reconciliation instruction
from being made available on the paygo ledger. In 1993, the
Senate originally created the paygo rule as a provision in the
FY1994 budget resolution (H. Con. Res. 64), specifically for
the purpose of preventing the deficit reduction expected to be
achieved in a subsequent reconciliation bill from being used to
offset the costs of any new mandatory spending or revenue
legislation. Section 201 of the conference agreement restores
this original intent, by clarifying that savings enacted in any
reconciliation bill shall never be placed on the paygo ledger
and used as offsets for another reconciliation bill (even if
enacted pursuant to reconciliation instructions in the same
budget resolution) or as offsets for any other legislation. For
paygo purposes, all net savings enacted pursuant to
reconciliation are to be dedicated solely to deficit reduction.
Sec. 202. Senate Point of Order Against Reconciliation
Legislation That Would Increase the Deficit or
Reduce a Surplus
The Senate insists on, and the House recedes from its
disagreement with, Section 202 of the Senate resolution, with a
technical amendment to enforce the point of order over two time
periods: (1) the period of the current fiscal year, the budget
year, and the total of the ensuing four fiscal years following
the budget year, and (2) the period of the current fiscal year,
the budget year, and the total of the ensuing nine fiscal years
following the budget year. Section 202 creates a new point of
order against reconciliation measures that would cause or
increase an on-budget deficit or decrease an on-budget surplus.
It can be waived with 60 votes.
Sec. 203. Senate Point of Order Against Legislation
Increasing Long-Term Deficits
The Senate insists on, and the House recedes from its
disagreement with, Section 203 of the Senate resolution. It
establishes a point of order in the Senate against legislation
that would cause a net deficit increase in excess of $5.0
billion (including changes in revenues and mandatory spending,
but excluding debt service) in any of the four ten-year periods
2018-2027, 2028-2037, 2038-2047, or 2048-2057. The point of
order can be waived with 60 votes. The provision sunsets at the
end of fiscal year 2017, and effectively repeals the long-term
spending point of order in Section 407 of H. Con. Res. 95, the
fiscal year 2006 budget resolution conference report.
Sec. 204. Emergency Legislation
In subsection (a) of Section 204 of the conference
agreement, which applies only in the Senate, the Senate insists
on Section 204 of the Senate resolution with an amendment.
Under Section 204(a), emergency designations will be subject to
an emergency designation point of order in the Senate, which
can be waived with 60 votes. The amendment deleted an exception
adopted to the Senate resolution in Amendment 534 offered by
Senator DeMint.
In subsection (b) of Section 204 of the conference
agreement, which applies only in the House, the House recedes
from its position in Section 303 of the House amendment and
concurs with a further amendment, and the Senate agrees to the
same. In the House, discretionary appropriations that are
designated as emergencies shall not count for the purposes of
Titles III and IV of the Congressional Budget Act of 1974. In
the House, any provisions designated as emergencies under rules
in effect for 2007 will be accommodated under Section 204 in
this resolution.
Sec. 205. Extension of Enforcement of Budgetary Points of
Order in the Senate
In Section 205 of the conference agreement, which applies
only in the Senate, the Senate insists on Section 205 of the
Senate resolution with an amendment, and the House agrees to
the same. Section 205 extends 60-vote enforcement of budgetary
points of order in the Senate, other than those pursuant to
Sections 425 and 303 of the Budget Act, through 2017.
Sec. 206. Point of Order Against Advance Appropriations
In subsection (a) of Section 206 of the conference
agreement, which applies only in the Senate, the Senate insists
on, and the House recedes from its disagreement with, Section
206 of the Senate resolution. It provides a supermajority point
of order in the Senate against appropriations in fiscal year
2008 bills that would first become effective in any year after
fiscal year 2008, and against appropriations in fiscal year
2009 bills that would first become effective in any year after
fiscal year 2009. It does not apply against appropriations for
the Corporation for Public Broadcasting, nor does it apply
against changes in mandatory programs or deferrals of mandatory
budget authority from one year to the next. There is an
exemption for each of fiscal years 2008 and 2009 of up to $25.2
billion for the following:
Accounts identified for Advance Appropriations in the Senate
Labor, HHS:
Employment and Training Administration
Education for the Disadvantaged
School Improvement
Children and Family Services (Head Start)
Special Education
Vocational and Adult Education
Financial Services and General Government: Payment to Postal
Service Transportation, Housing and Urban Development: Section
8 Renewals
In subsection (b) of Section 206 of the conference
agreement, which applies only in the House, the House insists
on Section 302 of the House amendment. It defines advance
appropriations, and restricts advance appropriations for fiscal
years 2009 or 2010 to a total of $25.6 billion for the
following accounts:
Accounts Identified for Advance Appropriations in the House
Advance Appropriations for Fiscal Year 2009
Employment and Training Administration
Education for the Disadvantaged
School Improvement
Children and Family Services (Head Start)
Special Education
Vocational and Adult Education
Payment to Postal Service
Section 8 Renewals
Advance Appropriations for Fiscal Year 2010
Corporation for Public Broadcasting
Sec. 207. Discretionary Spending Limits, Program Integrity
Initiatives, and Other Adjustments
In subsection (a), (b), and ( c) of Section 207 of the
conference agreement, which apply only in the Senate, the
Senate insists on Section 207 of the Senate resolution with an
amendment in the nature of a substitute. Currently, there are
no discretionary spending limits for any fiscal year. Section
207 will strengthen fiscal responsibility by establishing
discretionary spending limits in the Senate for fiscal years
2007 and 2008, and enforce them with a Senate point of order
that can only be waived with 60 votes. It permits adjustments
to the discretionary spending limits in the Senate for fiscal
year 2008 for program integrity initiatives, including Social
Security Administration continuing disability reviews and
Supplemental Security Income redeterminations, enhanced
Internal Revenue Service tax enforcement to address the tax
gap, appropriations for Health Care Fraud and Abuse Control
(HCFAC) program at the Department of Health and Human Services,
and in-person reemployment and eligibility assessments and
unemployment insurance improper payment reviews.
In subsection (d) of Section 207 of the conference
agreement, which applies only in the House, the House insists
on Section 301 of the House amendment with an amendment. The
House amendment provides for several program integrity
adjustments for 2008 in the same areas as in the Senate
resolution, including for Social Security Administration
continuing disability reviews and Supplemental Security Income
redeterminations, enhanced Internal Revenue Service tax
enforcement to address the tax gap, appropriations for the
Health Care Fraud and Abuse Control (HCFAC) program at the
Department of Health and Human Services, and in-person
reemployment and eligibility assessments and unemployment
insurance improper payment reviews.
The conference agreement allows for adjustments to be
made to the discretionary spending limits in the Senate,
aggregates, and 302(a) allocations of the House and Senate
Appropriations Committees up to the total budget authority
shown in Section 103 (21) for overseas deployments and related
activities (and the new outlays flowing therefrom). In the
Senate, if additional funding is required beyond the level
specified in Section 103 (21), such funding would be provided
pursuant to Section 204. In the House, if additional
appropriations are required beyond this level, and such
additional amounts are specifically designated as necessary for
overseas deployments and related activities, then new budget
authority, outlays or receipts resulting therefrom shall not
count for the purposes of titles III and IV of the
Congressional Budget Act of 1974.
Subsection (e) of Section 207 of the conference
agreement, which applies in the House and Senate, directs all
House and Senate Committees to include recommendations for
improved governmental performance in the views and estimates
that they submit to the respective Committees on the Budget
under section 301(d) of the Congressional Budget Act.
Subsection (f) of Section 207 of the conference
agreement, which applies in both the House and Senate, allows
adjustments to the levels and limits in this resolution to
reflect differences between the levels assumed in this
resolution and the levels that may ultimately be enacted in
2007 supplemental appropriations legislation currently under
consideration in Congress. Similar language was included in the
conference report on the fiscal year 2004 budget resolution (H.
Con. Res. 95, 108th Congress) regarding 2003 supplemental
appropriations.
Sec. 208. Inapplicability of Previous Allocations in the
Senate
In Section 208 of the conference agreement, which applies
only in the Senate, the Senate insists on, and the House
recedes from its disagreement with, Section 208 of the Senate
resolution. Because this concurrent resolution on the budget
for fiscal year 2008 establishes new discretionary spending
limits for fiscal years 2007 and 2008 and new committee
spending allocations pursuant to section 302(a) of the
Congressional Budget Act of 1974, Section 208 of the Senate
resolution clarifies that the ``deeming'' provisions of last
year's emergency supplemental in Section 7035 of Public Law
109-234 shall no longer apply in the Senate.
Sec. 209. Senate Point of Order Against Provisions of
Appropriations Legislation That Constitute Changes
in Mandatory Programs With Net Costs
In Section 209 of the conference agreement, which applies
only in the Senate, the Senate insists on Section 214 of the
Senate resolution with a substitute, and the House agrees to
the same. Section 209 would create a 60-vote point of order
against provisions of appropriations legislation constituting
Changes in Mandatory Programs (ChIMPs) that would have been
estimated as affecting direct spending or receipts were they
included in legislation other than appropriations legislation,
if all three of the following conditions are met:
(1) the provision would increase BA in--
(a) at least one of the nine fiscal years that follow the
budget year, and
(b) over the period of the total of the budget year and
the nine fiscal years following the budget year;
(2) the provision would increase net outlays over the
period of the total of the nine fiscal years following the
budget year; and
(3) the sum total of all changes in mandatory programs in
the legislation would increase net outlays as measured over the
period of the total of the nine fiscal years following the
budget year.
The point of order does not apply against legislation
making supplemental appropriations for fiscal year 2007. Nor
does it apply against any ChIMPs that were enacted in each of
the three fiscal years prior to the budget year (including
those done as a result of the year-long funding resolution
enacted for 2007). The point of order works like the Byrd rule
in that it applies against individual provisions of legislation
rather than against an entire bill, amendment, or conference
report. If the point of order is not waived then the offending
provision is stricken.
Sec. 210. Compliance With Section 13301 of the Budget
Enforcement Act of 1990
In Section 210 of the conference agreement, the House
recedes from its position in Section 306 of the House amendment
and concurs with a further amendment, and the Senate agrees to
the same. Subsection (a) of Section 210 applies in both the
House and Senate. Subsection (b) of Section 210 applies only in
the House.
Sec. 211. Application and Effect of Changes in Allocations
and Aggregates
In Section 211 of the conference agreement, the House
insists on, and the Senate recedes from its disagreement with,
Section 304 of the House amendment.
Sec. 212. Adjustments to Reflect Changes in Concepts and
Definitions
In Section 212 of the conference agreement, the House
insists on, and the Senate recedes from its disagreement with,
Section 305 of the House amendment.
Sec. 213. Exercise of Rulemaking Powers
In Section 213 of the conference agreement, the House
recedes from its position in Section 307 of the House amendment
and concurs with a further amendment, and the Senate agrees to
the same.
Reserve Funds
Senate Resolution
Sec. 301. Deficit-Neutral Reserve Fund for SCHIP
Legislation
Section 301 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
by up to $20.0 billion for SCHIP reauthorization legislation of
up to $50.0 billion, so long as the legislation is deficit-
neutral over the total of 2007-2012.
Sec. 302. Deficit-Neutral Reserve Fund for Care of Wounded
Service Members
Section 302 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for legislation that improves the medical care of or disability
benefits for wounded or disabled military personnel or veterans
(including the elimination of the offset between Survivor
Benefit Plan annuities and veterans' dependency and indemnity
compensation), including improvements to the physical
disability evaluation system of the Department of Defense to
expedite the claims process, provided the legislation is
deficit-neutral over the total of 2007-2012.
Sec. 303. Deficit-Neutral Reserve Fund for Tax Relief
Section 303 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for one or more pieces of tax relief legislation, including
refundable tax relief and extensions of expiring tax relief,
such as enhanced charitable giving from IRAs and the
reauthorization of the new markets tax credit under section 45D
of the Internal Revenue Code of 1986 for an additional five
years, provided the legislation is deficit-neutral over the
total of 2007-2012.
Sec. 304. Deficit-Neutral Reserve Fund for Comparative
Effectiveness Research
Section 304 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for legislation to establish a new Federal or public-private
initiative for comparative effectiveness research, provided the
legislation is deficit-neutral over the total of 2007-2012.
Sec. 305. Deficit-Neutral Reserve Fund for Higher Education
Section 305 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for legislation--including tax legislation--that would make
higher education more accessible and affordable, provided the
legislation is deficit-neutral over the total of 2007-2012.
Sec. 306. Deficit-Neutral Reserve Fund for the Farm Bill
Section 306 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
by up to $15.0 billion for legislation which is deficit-neutral
over the total of 2007-2012 that would do one or more of the
following: reauthorize the Food Security and Rural Investment
Act of 2002; strengthen agriculture and rural economies and
critical nutrition programs; provide agriculture-related tax
relief and rural development investment incentives for counties
impacted by high rates of out-migration; or improve the
environment by reducing dependence on foreign sources of energy
through expanded production and use of alternative fuels. This
section anticipates that the Farm Bill will ultimately be
comprised of titles from more than one committee, and would
therefore allow the Chairman to revise multiple committee
allocations, and revenue and spending aggregates, to
accommodate the legislation.
Sec. 307. Deficit-Neutral Reserve Fund for Energy
Legislation
Section 307 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for one or more pieces of legislation--including tax
legislation--that would reduce our nation's dependence on
foreign sources of energy, expand production and use of
alternative fuels and alternative fuel vehicles, promote
renewable energy development, improve electricity transmission,
encourage responsible development of domestic oil and natural
gas resources, or reward conservation and efficiency; provided
the legislation is deficit-neutral over the total of 2007-2012.
Sec. 308. Deficit-Neutral Reserve Fund for Medicare
Section 308 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for:
Prescription drug price negotiation legislation under
Medicare Part D, to repeal the non-interference clause in
Section 1860D-11(i)(1) of the Social Security Act, while
preserving access to prescription drugs and price competition
without requiring a particular formulary or instituting a price
structure for reimbursement of covered Part D drugs, provided
that the legislation is deficit-neutral over 2007-2012 and that
all savings from the measure must be used either to improve the
Part D benefit or to reduce the deficit;
Legislation to increase the reimbursement rate for
physician services under Medicare Part B and that includes
financial incentives for physicians to improve the quality and
efficiency of items and services furnished to Medicare
beneficiaries through the use of consensus-based quality
measures, provided that it is deficit-neutral over 2007-2012;
and
Legislation making improvements of up to $5.0 billion to
the prescription drug benefit under Medicare Part D, so long as
the legislation is deficit-neutral over 2007-2012.
Sec. 309. Deficit-Neutral Reserve Fund for Small Business
Health Insurance
Section 309 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for legislation that makes health insurance coverage more
affordable or available to small businesses and their
employees, without weakening rating rules or reducing covered
benefits, provided the legislation is deficit-neutral over the
total of 2007-2012.
Sec. 310. Deficit-Neutral Reserve Fund for County Payments
Section 310 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
by up to $440 million in 2008 and up to $2.2 billion over the
total of 2008-2012 for county payments legislation that
reauthorizes the Secure Rural Schools and Community Self-
Determination Act of 2000, provided the legislation is deficit-
neutral over the total of 2007-2012. The expiration of this law
would have a significant impact on rural communities.
Sec. 311. Deficit-Neutral Reserve Fund for Terrorism Risk
Insurance Reauthorization
Section 311 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for legislation that provides for a continuing federal role in
ensuring that terrorism risk insurance remains available after
the expiration of the Terrorism Risk Insurance Extension Act,
provided the legislation is deficit-neutral over the total of
2007-2012.
Sec. 312. Deficit-Neutral Reserve Fund for Affordable
Housing
Section 312 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for legislation that would establish an affordable housing fund
financed by the housing government-sponsored enterprises,
provided the legislation is deficit-neutral over the total of
2007-2012.
Sec. 313. Deficit-Neutral Reserve Fund for Receipts From
Bonneville Power Administration
Section 313 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for legislation that prohibits the Bonneville Power
Administration from making early payments on its federal bond
debt, provided the legislation is deficit-neutral over the
total of 2007-2012. The proposal in the President's budget
would have a detrimental impact on electricity rates in the
Northwest.
Sec. 314. Deficit-Neutral Reserve Fund for Indian Claims
Settlement
Section 314 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for legislation to provide a statutory settlement for Indian
trust fund litigation involving the accounting and management
of individual Indian trust monies and assets, including the
Cobell v. Kempthorne litigation, as well as provisions to
offset the cost of the settlement, provided that the
legislation is deficit-neutral over the total of 2007-2012.
Sec. 315. Deficit-Neutral Reserve Fund for Food and Drug
Administration
Section 315 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for certain legislation affecting the regulatory authority of
the Food and Drug Administration (FDA) and authorizing the
assessment of user fees, provided that the legislation is
deficit-neutral over the total of 2007-2012.
Sec. 316. Deficit-Neutral Reserve Fund for Health Care
Reform
Section 316 of the Senate resolution provides that if an
SCHIP bill is enacted, the Chairman of the Budget Committee may
revise the levels in the resolution for legislation to improve
health care, provide quality health insurance for the uninsured
and underinsured, and protect individuals with current health
coverage, provided the legislation is deficit-neutral over the
total of 2007-2012.
Sec. 317. Deficit-Neutral Reserve Fund for Enhancement of
Veterans' Benefits
Section 317 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for legislation to enhance benefits for veterans, including GI
educational benefits and services for low-vision and blinded
veterans, provided the legislation is deficit-neutral over the
total of 2007-2012.
Sec. 318. Deficit-Neutral Reserve Fund for Long-Term Care
Section 318 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for legislation to improve long-term care, provided the
legislation is deficit-neutral over the total of 2007-2012.
Sec. 319. Deficit-Neutral Reserve Fund for Health
Information Technology
Section 319 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for legislation providing incentives or other support for
adoption of modern information technology to improve quality
and protect privacy in health care, and for legislation
providing for payments based on adherence to accepted clinical
protocols identified as best practices, provided the
legislation is deficit-neutral over the total of 2007-2012.
Sec. 320. Deficit-Neutral Reserve Fund for Child Care
Section. 320 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for legislation to provide up to $5.0 billion to States for
child care, provided the legislation is deficit-neutral over
the total of 2007-2012.
Sec. 321. Deficit-Neutral Reserve Fund for Comprehensive
Immigration Reform
Section 321 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for comprehensive immigration reform legislation, provided the
legislation is deficit-neutral in 2008 and over the total of
2008-2012.
Sec. 322. Deficit-Neutral Reserve Fund for Mental Health
Parity
Section 322 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for legislation that provides parity between health insurance
coverage of mental health benefits and benefits for medical and
surgical services, provided the legislation is deficit-neutral
in 2008 and over the total of 2008-2012.
Sec. 323. Deficit-Neutral Reserve Fund for Preschool
Opportunities
Section 323 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for legislation to provide assistance to States for offering or
expanding preschool to children of low-income families,
provided the legislation is deficit-neutral over the total of
2007-2012.
Sec. 324. Deficit-neutral Reserve Fund for the Safe
Importation of FDA-Approved Prescription Drugs
Section 324 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for legislation to permit the safe importation of prescription
drugs approved by the FDA from a specified list of countries,
provided the legislation is deficit-neutral over the total of
2007-2012.
Sec. 328. Deficit-Neutral Reserve Fund for Expansion of
Above-the-Line Deduction for Teacher Classroom
Supplies
Section 328 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for legislation to permanently extend and increase to $400 the
above-the-line deduction for teacher classroom supplies and
expand the deduction to include qualified professional
development expenses, provided the legislation is deficit-
neutral over the total of 2007-2012.
Sec. 329. Adjustment for Smithsonian Institution Salaries
and Expenses
Section 329 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for legislation appropriating up to $17 million for 2008 if the
Comptroller General makes certain certifications to Congress
regarding the Smithsonian Institution.
Sec. 330. Deficit-Reduction Reserve Fund for Reduction of
Improper Payments
Section 330 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for legislation that achieves savings by eliminating or
reducing improper payments by agencies and uses such savings to
reduce the deficit, provided the legislation would not increase
the deficit over the total of 2007-2012.
Sec. 331. Deficit-Neutral Reserve Fund for Extension of the
Deduction for State and Local Sales Taxes
Section 331 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for legislation that would extend the deduction for State and
local sales taxes, provided the legislation would not increase
the deficit over the total of 2007-2012.
Sec. 332. Deficit-Neutral Reserve Fund for Extension of
Certain Energy Tax Incentives
Section 332 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for legislation that would extend energy tax incentives through
2015, provided the legislation would not increase the deficit
over the total of 2007-2012.
Sec. 333. Reserve Fund To Provide Additional Training for
Physicians and Attract More Physicians in States
That Face a Shortage of Physicians in Training
Section 333 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for legislation that would provide additional training for
physicians and attract more physicians in States with a
shortage of physicians in training, provided the legislation
would not increase the deficit over the total of 2007-2012.
Sec. 334. Deficit-Neutral Reserve Fund for Repeal of the
1993 Increase in the Income Tax on Social Security
Benefits
Section 334 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for legislation that would repeal the 1993 increase in the
income tax on Social Security benefits, provided the
legislation would not increase the deficit over the total of
2007-2012.
Sec. 336. Deficit-Neutral Reserve Fund for Eliminating
Military Retirement and Disability Offset
Section 336 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for legislation that would expand eligibility for Combat-
Related Special Compensation to permit additional disabled
retirees to receive both disability compensation and retired
pay, provided the legislation would not increase the deficit
over the total of 2007-2012.
Sec. 337. Deficit-Neutral Reserve for Asbestos Reform
Legislation
Section 337 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for asbestos reform legislation, provided the legislation would
not increase the deficit over the total of 2007-2057.
Sec. 338. Deficit-Neutral Reserve Fund for Manufacturing
Initiatives
Section 338 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for legislation, including tax legislation, that would
revitalize the United States manufacturing sector, provided the
legislation would not increase the deficit over the total of
2007-2012.
Sec. 339. Deficit-Reduction Reserve Fund for Increased Use
of Recovery Audits
Section 339 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for legislation that achieves savings by requiring that
agencies increase their use of recovery audits and use such
savings to reduce the deficit, provided the legislation would
not increase the deficit over the total of 2007-2012.
Sec. 340. Deficit-Neutral Reserve Fund for a Delay in the
Implementation of a Proposed Rule Relating to the
Federal-State Financial Partnerships Under Medicaid
and SCHIP
Section 340 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for legislation that provides for a delay in the implementation
of a proposed rule relating to the Federal-State financial
partnerships under Medicaid and SCHIP, provided the legislation
would not increase the deficit over the total of 2007-2012.
Sec. 341. Reserve Fund To Improve the Health Care System
If the Finance Committee is within its 302(a) allocation,
Section 341 of the Senate resolution allows the Chairman of the
Budget Committee to revise the levels in the resolution for
legislation reported by the Finance Committee that creates a
framework for using Medicare data to evaluate health care, if
it protects privacy and prevents disclosure of proprietary or
trade secret information, provided the legislation would not
increase the deficit in 2008 or over the total of 2008-2012.
Sec. 342. Reserve Fund to Improve Medicare Hospital Payment
Accuracy
If the Finance Committee is within its 302(a) allocation,
Section 342 of the Senate resolution allows the Chairman of the
Budget Committee to revise the levels in the resolution for
legislation reported by the Finance Committee to improve
Medicare hospital payment accuracy, provided the legislation
would not increase the deficit over the total of 2008-2012.
Sec. 343. Deficit-Neutral Reserve Fund to Improve Health
Insurance
Section 343 of the Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for legislation to improve health insurance, provided the
legislation would not increase the deficit over the total of
2007-2012.
House Amendment
Sec. 201. Reserve Fund for the State Children's Health
Insurance Program
The reserve fund accommodates the Committee on Energy and
Commerce reporting legislation of up to $50.0 billion in
additional outlays to improve children's health through
reauthorization of the State Children's Health Program (SCHIP)
as long as the authorizing legislation placed before the House
complies with the pay-as-you-go principle. These additional
resources will sustain current caseloads, expand coverage, and
reduce the number of uninsured children. Of the over nine
million uninsured children in this nation, around six million
are eligible for SCHIP or Medicaid but do not receive coverage.
Sec. 202. Reserve Fund for Reform of the Alternative
Minimum Tax
The reserve fund for Alternative Minimum Tax (AMT) relief
accommodates legislation that reforms the tax code to shield
middle-income families from the AMT as long as it adheres to
the pay-as-you-go principle. Without reform, the number of
taxpayers subject to the AMT will rise from 4.2 million in 2006
to 23.2 million in 2007 and to 25.7 million in 2008, according
to the Joint Committee on Taxation.
Sec. 203. Reserve Fund to Provide for Middle-Income Tax
Relief and Economic Equity
The reserve fund for middle-income tax relief supports
legislation to reduce tax burdens on middle-income families and
taxpayers that complies with the pay-as-you-go principle. This
includes legislation such as the extension of the 10 percent
individual income tax rate, marriage penalty relief, the child
tax credit, the research and experimentation tax credit, the
deduction for small business expensing, and the deduction for
State and local sales taxes. It also accommodates elimination
of estate taxes on all but a minute fraction of estates, and a
tax credit for school construction.
Sec. 204. Reserve Fund for Agriculture
The reserve fund accommodates legislation that
reauthorizes the Farm Security and Rural Investment Act of 2002
(Public Law 107-171) or prior farm support acts, or authorizes
similar programs, or both, to the extent that such legislation
complies with the pay-as-you-go principle. The section also
provides for an increase in budget authority up to $20.0
billion over six years (2007-2012) above the Congressional
Budget Office's current estimate of spending for these programs
if the funding increases are appropriately offset. The
resolution allows for the House to continue to address a number
of priorities, such as maintaining a strong farm safety net for
our nation's agricultural producers; delivering natural
resource conservation measures on private lands; investing in
energy research; and rural development projects that strengthen
our rural economies; and enhancing food nutrition assistance to
help fight hunger. The reserve fund could also facilitate a new
Farm Bill that provides enhanced conservation, research, and
marketing assistance to crops that have not received
traditional commodity support.
Sec. 205. Reserve Fund for Higher Education
The reserve fund accommodates reforms to the student loan
programs that increase benefits to students, consistent with
the pay-as-you-go principle adopted by the House. The Higher
Education Act is scheduled to be reauthorized this year, and
this reserve fund will provide committees maximum flexibility
in finding offsets to make college more affordable for
students.
Sec. 206. Reserve Fund for Improvements in Medicare
The reserve fund accommodates additional mandatory
spending for Medicare program improvements such as increasing
the Medicare reimbursement rate for physicians while holding
beneficiaries harmless from associated premium increases, as
long as the legislation is consistent with the House pay-as-
you-go principle. Current law calls for Medicare payment rates
to physicians to be cut by nearly 40 percent over the next
eight years. The House supports Federal investments in health
information technology that will improve the quality and
efficiency of not only Medicare, but also the health sector as
a whole. Another possible area for program improvement is the
Part D prescription drug benefit.
Sec. 207. Reserve Fund for Creating Long-Term Energy
Alternatives
The reserve fund accommodates legislation consistent with
H.R. 6 that invests in renewable or alternative energy
resources, promotes new emerging energy technologies, or
develops greater energy efficiency, to the extent that such
legislation complies with the pay-as-you-go principle.
Sec. 208. Reserve Fund for Affordable Housing
The reserve fund accommodates legislation that creates an
affordable housing fund, offset by savings from reforming the
regulation of certain government-sponsored entities, such as
Fannie Mae and Freddie Mac, to the extent that such legislation
complies with the pay-as-you-go principle.
Sec. 209. Reserve Fund for Equitable Benefits for Filipino
Veterans of World War II
The reserve fund accommodates additional mandatory
spending to provide equitable benefits for all Filipino
veterans of World War II and their survivors and dependents,
consistent with the pay-as-you-go principle. Most Filipino
veterans who fought alongside American troops, and their
families, are currently not eligible for equitable federal
benefits.
Sec. 210. Reserve Fund for Secure Rural Schools and
Community Self-Determination Act Reauthorization
The reserve fund accommodates any legislation that
reauthorizes the Secure Rural Schools and Community Self-
Determination Act (Public Law 106-393), to the extent that such
legislation complies with the pay-as-you-go principle. That law
provides economic assistance for roads and schools in rural
communities affected by the loss of receipts from sales on
federal lands in their communities. The assistance is intended
to compensate local governments for the tax-exempt status of
the national forests and other federal lands.
Sec. 211. Reserve Fund for Receipts from the Bonneville
Power Administration
The resolution includes a reserve fund to accommodate
legislation to reject the Administration's acceleration of
Bonneville Power Administration's (BPA) debt repayment and to
prohibit BPA from applying secondary sales revenue in excess of
$500 million towards additional federal debt repayment, to the
extent that such legislation complies with the pay-as-you-go
principle.
Sec. 212. Reserve Fund for Transitional Medical Assistance
The reserve fund accommodates extension of Transitional
Medical Assistance (TMA) through 2008, as long as it complies
with the pay-as-you-go principle. TMA provides temporary
Medicaid assistance for families transitioning to the
workforce.
Conference Agreement
Sec. 301. Deficit-Neutral Reserve Fund for SCHIP
Legislation
The House recedes to the Senate with a substitute.
Subsection (a) retains the language of Section 301 of the
Senate resolution with an amendment. This subsection applies
only in the Senate. Subsection (b) retains the language of
Section 201 of the House amendment with an amendment. This
subsection applies only in the House.
Sec. 302. Deficit-Neutral Reserve Fund for Veterans and
Wounded Servicemembers
The House recedes to the Senate with an amendment which
incorporates Sections 302, 317, and 336 of the Senate
resolution as well as Section 209 of the House amendment. The
combined reserve fund would accommodate legislation consistent
with the pay-as-you-go principle that improves services and
benefits to wounded or disabled military personnel and
retirees, veterans, and their survivors and dependents, which
may include enhancing medical care and disability benefits,
expanding eligibility to receive both disability compensation
and retired pay (for combat-disabled retirees), eliminating the
offset between survivor benefit annuities and dependency and
indemnity compensation, improving disability evaluations,
enhancing educational benefits, or increasing benefits to
Filipino veterans of World War II and their survivors and
dependents.
Sec. 303. Deficit-Neutral Reserve Fund for Tax Relief
In subsection (a) of Section 303 of the conference
agreement, which applies only in the Senate, the Senate insists
on Section 303 of the Senate resolution with an amendment. In
subsection (b) of Section 303 of the conference agreement,
which applies only in the House, the House insists on Sections
202 and 203 of the House amendment with an amendment.
Sec. 304. Deficit-Neutral Reserve Fund for Medicare
Improvements
The House recedes to the Senate with a substitute.
Subsection (a) retains the language of Section 206 of the House
amendment. This subsection applies only in the House of
Representatives. Subsection (b) retains the language of Section
308 and Section 342 of the Senate resolution. This subsection
applies only in the Senate. Subsection (c) retains the language
of Section 333 of the Senate resolution with an amendment. This
subsection applies in the Senate and in the House of
Representatives.
Sec. 305. Deficit-Neutral Reserve Fund for Health Care
Quality, Effectiveness, Efficiency, and
Transparency
The House recedes to the Senate with an amendment.
Subsection (a) retains the language of Section 319 of the
Senate resolution with an amendment. This subsection applies in
the Senate and in the House of Representatives. Subsection (b)
retains the language of Section 304 of the Senate resolution.
This subsection applies in the Senate and in the House of
Representatives. Subsection (c) retains the language in Section
341 of the Senate resolution. This subsection applies in the
Senate only.
Sec. 306. Deficit-Neutral Reserve Fund for Higher Education
The House recedes to the Senate with a substitute. The
reserve funds for higher education in the House and Senate have
identical goals and the identical effect of accommodating
deficit-neutral legislation to make higher education more
accessible and more affordable. The conference agreement could
facilitate legislation that would enhance benefits for post-
secondary students, including, but not limited to, reductions
in interest rates on student loans, significant increases in
grant aid for students, or tax benefits.
Sec. 307. Deficit-Neutral Reserve Fund for the Farm Bill
The Senate recedes to the House with a substitute.
Section 307 provides for an increase in budget authority of up
to $20.0 billion over six years (2007-2012) if the funding
increases are appropriately offset. Subsection (a) retains the
language of Section 306 in the Senate resolution with an
amendment. This subsection applies only in the Senate.
Subsection (b) retains the language of Section 204 in the House
resolution. This subsection applies only in the House.
Sec. 308. Deficit-Neutral Reserve Fund for Energy
Legislation
The House recedes to the Senate with a substitute.
Section 308 of the conference agreement is a deficit-neutral
energy reserve fund with two parts. Subsection (a) combines
language similar to the reserve funds included in Section 307
and Section 332 of the Senate resolution and would apply only
to the Senate. This subsection allows the Senate's
discretionary spending limits to be adjusted in addition to the
aggregates and allocations. Subsection (b) is similar to
Section 207 of the House amendment and would apply only to the
House.
Sec. 309. Deficit-Neutral Reserve Fund for County Payments
Legislation
The Senate recedes to the House with an amendment. The
amendment clarifies that the reserve fund could accommodate
legislation that provides for the reauthorization of the Secure
Rural Schools and Community Self-Determination Act of 2000
(Public Law 106-393), or makes changes to the Payments in Lieu
of Taxes Act of 1976 (Public Law 94-565), or both. The reserve
fund would accommodate deficit-neutral legislation in the House
and the Senate, and allows the Senate's discretionary spending
limits to be adjusted in addition to the aggregates and
allocations.
Sec. 310. Deficit-Neutral Reserve Fund for Terrorism Risk
Insurance Reauthorization
The House recedes to Section 311 of the Senate resolution
with a technical amendment to accommodate legislation in the
House and Senate consistent with House and Senate pay-as-you-go
rules. The reserve fund accommodates legislation in both bodies
for a continuing federal role in ensuring that terrorism risk
insurance remains available after the expiration of the
Terrorism Risk Insurance Act.
Sec. 311. Deficit-Neutral Reserve Fund for Affordable
Housing
The House recedes to Section 312 of the Senate resolution
with a technical amendment to accommodate legislation in the
House and Senate consistent with House and Senate pay-as-you-go
rules. The reserve fund accommodates legislation in both bodies
to establish an affordable housing fund financed by housing
government-sponsored enterprises.
Sec. 312. Deficit-Neutral Reserve Fund for Receipts from
Bonneville Power Administration
The House recedes to Section 313 of the Senate resolution
with a substitute. The reserve fund included in Section 312 of
the conference agreement is similar to the language included in
both the House and Senate budget resolutions. The reserve fund
would accommodate deficit-neutral legislation in the House and
the Senate, and allows the Senate's discretionary spending
limits to be adjusted in addition to the aggregates and
allocations.
Sec. 313. Deficit-Neutral Reserve Fund for Indian Claims
Settlement
The House recedes to Section 314 of the Senate resolution
with an amendment to accommodate similar House legislation and,
as in the Senate, provisions to ensure its cost is offset.
Sec. 314. Deficit-Neutral Reserve Fund for Improvements in
Health
The House recedes to the Senate with an amendment which
incorporates Sections 318 and 322 of the Senate resolution. The
conference agreement consolidates Sections 309, 316, and 343 of
the Senate resolution into two subsections, 314(a) and 314(b),
with amendments. This reserve fund applies in the Senate and in
the House of Representatives.
Sec. 315. Deficit-Neutral Reserve Fund for Child Care
The House recedes to Section 320 of the Senate resolution
with an amendment to accommodate similar legislation in the
House.
Sec. 316. Deficit-Neutral Reserve Fund for Immigration
Reform
The House recedes to Section 321 of the Senate resolution
with an amendment. This reserve fund applies only in the
Senate.
Sec. 317. Deficit-Reduction Reserve Fund
The House recedes to the Senate with an amendment. The
amendment combines reserve funds included in Section 330 and
Section 339 of the Senate resolution. Section 317 applies to
both the House and the Senate, and allows the Senate's
discretionary spending limits to be adjusted in addition to the
aggregates and allocations.
Sec. 318. Deficit-Neutral Reserve Fund for Manufacturing
Initiatives in the Senate
The Senate insists on Section 338 of the Senate
resolution, which applies only in the Senate, with an
amendment.
Sec. 319. Deficit-Neutral Reserve Fund for the Food and
Drug Administration in the Senate
Section 319 of the conference agreement consists of two
subsections, 319(a) and 319(b). Subsection (a) allows the
Chairman of the Senate Budget Committee to revise the levels in
the resolution for legislation authorizing the Food and Drug
Administration to regulate products and assess user fees on
manufacturers and importers of these products to cover the cost
of the Food and Drug Administration's regulatory activities.
Subsection (b) retains the language of Section 324 of the
Senate resolution. The reserve fund applies only to the Senate.
Sec. 320. Deficit-Neutral Reserve Fund for Medicaid
The House recedes to the Senate with a substitute.
Subsection (a) retains the language of Section 340 of the
Senate resolution with an amendment. Subsection (b)
accommodates legislation for a demonstration project regarding
Medicaid coverage of low-income HIV-infected individuals.
Subsection (c) retains the language of Section 212 of the House
amendment with an amendment. This reserve fund applies in the
Senate and in the House of Representatives.
Sec. 321. House Reserve Fund Adjustment for Revenue
Measures
Section 321 of the conference agreement creates a reserve
fund to consider any revenue measure (including a conference
report) in the House. It applies to bills that would reduce
revenues below the sum of aggregate revenue levels for a five-
year period as measured against the Congressional Budget Office
baseline for the most recent concurrent resolution of the
budget. The revenue measure can only become effective upon
certification by the Secretary of the Treasury and the Director
of the Office of Management and Budget that the reduction in
revenues due to the measure for the period comprising fiscal
years through 2012 will not exceed the lesser of $179.8 billion
or 80 percent of the fiscal year 2012 unified budget surplus,
as estimated by them within six months prior to the first day
of the first taxable year affected, said taxable year in no
case earlier than 2010. If this provision is not included, the
Chairman of the House Budget Committee will adjust aggregate
revenue levels in the resolution to create a point of order in
the House against the measure under Section 311 of the Budget
Act. The Chairman would readjust the levels upon disposition of
any measure considered in violation of this section. This point
of order would be in addition to a House paygo point of order,
which lies against any bill that is not deficit-neutral,
notwithstanding any other provisions of this conference
agreement.
Any measure, including a conference report, decreasing
total revenues, would have the point of order against it in the
House, unless it contains a provision consistent with the
following:
``None of the provisions of this Act or amendments made
by it, shall have legal force or effect unless within six
months prior to the first day of the first taxable year
affected, said taxable year in no case earlier than 2010, the
Secretary of the Treasury and the Director of the Office of
Management and Budget project a unified budget surplus for the
fiscal year 2012, estimate the budgetary impact of this Act,
and certify by issuance of a joint communication, to be
published in the Federal Register, that the estimated reduction
in revenues for the period comprising fiscal years through 2012
resulting from this Act (including amendments made by this Act)
will not exceed the lesser of $179.8 billion or 80 percent of
the projected fiscal year 2012 unified budget surplus.''
Section 321 is a reserve fund that applies in the House
only. It does not apply in the Senate. Its inclusion in this
conference report, and the inclusion of the above language by
the House of Representatives in this joint statement regarding
the operation of this section in the House, is not to be
construed as setting any procedural precedent in the Senate and
does not reflect the Senate's agreement to any provisions in
any conference agreement on revenue measures that are affected
in the House by the requirements of this reserve fund.
Sec. 322. Deficit-Neutral Reserve Fund for San Joaquin
River Restoration and Navajo Nation Water Rights
Settlements
Section 322 is a deficit-neutral reserve fund for
legislation that would fulfill the purposes of the San Joaquin
River Restoration Settlement Act, implement a Navajo Nation
water rights settlement as authorized by the Northwestern New
Mexico Rural Water Projects Act, or both. The reserve fund
would accommodate deficit-neutral legislation in both the House
and the Senate.
Sec. 323. Deficit-Neutral Reserve Fund for Selected Tax
Relief Policies in the Senate
The Senate insists on Sections 303, 328, and 331 of the
Senate resolution with an amendment. This section applies only
in the Senate.
Policy
Senate Resolution
Unlike Title IV of the House amendment, the Senate
resolution did not contain a policy statement title.
House Amendment
Title IV of the House amendment contains the following
policy sections.
Sec. 401. Policy on middle-income tax relief.
Sec. 402. Policy on defense priorities.
Sec. 403. Policy on college affordability.
Conference Agreement
Sec. 401. Policy on Middle-Income Tax Relief
The Senate recedes to Section 401 of the House amendment
with a substitute. Subsection (a) retains the language of
Section 401 of the House amendment, with amendments. This
subsection applies only in the House. Subsection (b) applies
only in the Senate.
Sec. 402. Policy on Defense Priorities
In Section 402 of the conference agreement, the Senate
recedes to Section 402 of the House amendment with an
amendment. The House Budget Committee report (H. Rept. 110-69)
discussed key priorities to be funded within the defense
allocation and the need for the Department of Defense to root
out wasteful spending (such as the continued funding of some
Cold War-era weapons systems, which may not be as effective in
protecting the nation from today's threats). The conference
agreement reaffirms these priorities.
Sec. 403. Policy on College Affordability
The Senate recedes to the House with a substitute. The
conferees intend that nothing in the budget resolution should
be construed as indicating support for cuts in college aid to
students, including but not limited to assistance provided by
non-profit state agencies.
Senses of the House and Congress
Senate Resolution
Section 335 of the Senate resolution expresses the sense
of Congress on the State Criminal Alien Assistance Program.
House Amendment
Title V of the House amendment contains the following
Sense of the House sections:
Sec. 501. Sense of the House on servicemembers' and
veterans' health care and other priorities.
Sec. 502. Sense of the House on the Innovation Agenda: A
commitment to competitiveness to keep America #1.
Sec. 503. Sense of the House on homeland security.
Sec. 504. Sense of the House regarding the ongoing need
to respond to Hurricanes Katrina and Rita.
Sec. 505. Sense of the House regarding long-term
sustainability of entitlements.
Sec. 506. Sense of the House regarding the need to
maintain and build upon efforts to fight hunger.
Sec. 507. Sense of the House regarding affordable health
coverage.
Sec. 508. Sense of the House regarding extension of the
statutory pay-as-you-go rule.
Sec. 509. Sense of the House on long-term budgeting.
Sec. 510. Sense of the House regarding pay parity.
Sec. 511. Sense of the House regarding waste, fraud, and
abuse.
Sec. 512. Sense of the House regarding the importance of
child support enforcement.
Sec. 513. Sense of the House on state veterans
cemeteries.
Conference Agreement
In Title V of the conference agreement, the Senate
recedes to Sections 501 through 513 of the House amendment, and
the House recedes to Section 335 of the Senate resolution, with
minor technical, clarifying, and conforming amendments. Title V
includes the following sense of the House and sense of Congress
provisions:
Sec. 501. Sense of Congress on Servicemembers' and
Veterans' Health Care and Other Priorities.
Sec. 502. Sense of Congress on the Innovation Agenda: A
Commitment To Competitiveness to Keep America #1.
Sec. 503. Sense of Congress on Homeland Security.
Sec. 504. Sense of Congress Regarding the Ongoing Need to
Respond To Hurricanes Katrina and Rita.
Sec. 505. Sense of Congress Regarding Long-Term
Sustainability of Entitlements.
Sec. 506. Sense of Congress Regarding the Need to
Maintain and Build Upon Efforts To Fight Hunger.
Sec. 507. Sense of Congress Regarding Affordable Health
Coverage.
Sec. 508. Sense of Congress Regarding Extension of the
Statutory Pay-As-You-Go Rule.
Sec. 509. Sense of the Congress on Long-Term Budgeting.
Sec. 510. Sense of Congress Regarding Pay Parity.
Sec. 511. Sense of Congress Regarding Waste, Fraud, and
Abuse.
Sec. 512. Sense of Congress Regarding the Importance of
Child Support Enforcement.
Sec. 513. Sense of the House on State Veterans
Cemeteries.
Sec. 514. Sense of the Congress on the State Criminal
Alien Assistance Program.
Reconciliation
Senate Resolution
The Senate resolution did not include any reconciliation
instructions.
House Amendment
Section 601 of the House amendment, which was included at
the request of the Committee on Education and Labor, instructs
that committee to report changes in law to the House to reduce
the deficit by $75 million over six years, no later than
September 10, 2007. Section 403 of the House amendment includes
policy language stating that the provision shall not be
construed to require reductions in assistance that makes
college more affordable for students.
Conference Agreement
The Senate recedes to the House with a substitute. The
conference agreement provides instructions to the Education and
Labor Committee in the House and to the Health, Education,
Labor and Pensions Committee in the Senate to report
legislation by September 10, 2007, to reduce the deficit by
$750 million over six years.
Economic Assumptions
Section 301(g)(2) of the Congressional Budget Act
requires that the joint explanatory statement accompanying a
conference report on a budget resolution set forth the common
economic assumptions upon which the joint statement and
conference report are based. The conference agreement is built
upon the economic forecasts developed by the Congressional
Budget Office and presented in CBO's ``The Budget and Economic
Outlook: Fiscal Years 2008-2017'' (January 2007).
Senate Resolution
CBO's economic assumptions were used.
House Amendment
CBO's economic assumptions were used.
Conference Agreement
CBO's economic assumptions were used.
ECONOMIC ASSUMPTIONS OF THE BUDGET RESOLUTION
[Calendar years]
----------------------------------------------------------------------------------------------------------------
2007 2008 2009 2010 2011 2012
----------------------------------------------------------------------------------------------------------------
Real GDP, Percent Change, Year Over Year.................. 2.3 3.0 3.1 3.0 2.7 2.7
GDP Price Index, Percent Change, Year Over Year........... 1.9 1.8 1.8 1.8 1.8 1.8
Consumer Prices, Percent Change, Year Over Year........... 1.9 2.3 2.2 2.2 2.2 2.2
Unemployment Rate, Percent, Yearly Average................ 4.7 4.9 5.0 5.0 5.0 5.0
3-Month Treasury Bill Rate, Percent, Yearly Average....... 4.8 4.5 4.4 4.4 4.4 4.4
10-Year Treasury Bond Rate, Percent, Yearly Average....... 4.8 5.0 5.1 5.2 5.2 5.2
----------------------------------------------------------------------------------------------------------------
Allocations
As required in Section 302 of the Congressional Budget
Act, the joint statement of managers includes an allocation,
based on the conference agreement, of total budget authority
and total budget outlays among each of the appropriate
committees. The allocations are as follows:
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>
Pay-As-You-Go Scorecard for the Senate Reflecting Levels for the
Conference Agreement
Period of the current fiscal year, the budget year, and
the four fiscal years following the budget year: $0.
Period of the current fiscal year, the budget year, and
the nine fiscal years following the budget year: $0.
House Rule XXVII
The adoption of this conference agreement by the two
houses would result in the engrossment of a House Joint
Resolution changing the statutory limit on the public debt
pursuant to House Rule XXVII, clause 3. The rule requires a
joint resolution in the following form:
Resolved, by the Senate and the House of Representatives
of the United States in Congress assembled, that subsection (b)
of section 3101 of title 31, United States Code, is amended by
striking out the dollar limitation contained in such subsection
and inserting in lieu thereof $9,815,000,000,000.
Legislative jurisdiction over the public debt remains
with the Finance Committee in the Senate and the Committee on
Ways and Means in the House.
Kent Conrad,
Patty Murray,
Ron Wyden,
Managers on the Part of the Senate.
John M. Spratt, Jr.,
Rosa DeLauro,
Chet Edwards,
Managers on the Part of the House.
<all>