Eliminating a deficit increase
The amount required to be sequestered in a fiscal year under subsection (b) shall be obtained from non-exempt direct spending accounts from actions taken in the following order:
All reductions in automatic spending increases specified in section 906(a)
See References in Text note below.
of this title shall be made.
If additional reductions in direct spending accounts are required to be made, the maximum reductions permissible under sections 906(b) of this title (guaranteed and direct student loans) and 906(c) 1 of this title (foster care and adoption assistance) shall be made.
If additional reductions in direct spending accounts are required to be made, each remaining non-exempt direct spending account shall be reduced by the uniform percentage necessary to make the reductions in direct spending required by subsection (b); except that the medicare programs specified in section 906(d) of this title
shall not be reduced by more than 4 percent and the uniform percentage applicable to all other direct spending programs under this paragraph shall be increased (if necessary) to a level sufficient to achieve the required reduction in direct spending.
For purposes of determining reductions under clause (i), outlay reductions (as a result of sequestration of Commodity Credit Corporation commodity price support contracts in the fiscal year of a sequestration) that would occur in the following fiscal year shall be credited as outlay reductions in the fiscal year of the sequestration.
For purposes of this subsection, accounts shall be assumed to be at the level in the baseline.
As soon as practicable after Congress completes action on any direct spending or receipts legislation, CBO shall provide an estimate to OMB of that legislation.
Not later than 7 calendar days (excluding Saturdays, Sundays, and legal holidays) after the date of enactment of any direct spending or receipts legislation, OMB shall transmit a report to the House of Representatives and to the Senate containing—
the CBO estimate of that legislation;
an OMB estimate of that legislation using current economic and technical assumptions; and
an explanation of any difference between the 2 estimates.
If during the preparation of the report under paragraph (2) OMB determines that there is a significant difference between the OMB and CBO estimates, OMB shall consult with the Committees on the Budget of the House of Representatives and the Senate regarding that difference and that consultation, to the extent practicable, shall include written communication to such committees that affords such committees the opportunity to comment before the issuance of that report.
Scope of estimates
The estimates under this section shall include the amount of change in outlays or receipts for the current year (if applicable), the budget year, and each outyear excluding any amounts resulting from—
full funding of, and continuation of, the deposit insurance guarantee commitment in effect under current estimates; and
emergency provisions as designated under subsection (e).
OMB and CBO, after consultation with each other and the Committees on the Budget of the House of Representatives and the Senate, shall—
determine common scorekeeping guidelines; and
in conformance with such guidelines, prepare estimates under this section.
[Pub. L. 99–177, title II, § 252], Dec. 12, 1985, [99 Stat. 1072]; [Pub. L. 100–119, title I, § 102(a)], Sept. 29, 1987, [101 Stat. 764]; [Pub. L. 100–203, title VIII, § 8003(e)], Dec. 22, 1987, [101 Stat. 1330–282]; [Pub. L. 101–508, title XIII, § 13101(a)], Nov. 5, 1990, [104 Stat. 1388–581]; [Pub. L. 103–66, title XIV, § 14003(a)], Aug. 10, 1993, [107 Stat. 684]; [Pub. L. 103–354, title I, § 119(d)(2)], Oct. 13, 1994, [108 Stat. 3208]; [Pub. L. 105–33, title X, § 10205], Aug. 5, 1997, [111 Stat. 702]; [Pub. L. 113–67, div. A, title I, § 121(1)], (2), Dec. 26, 2013, [127 Stat. 1174], 1175.)