I
117th CONGRESS
1st Session
H. R. 2879
IN THE HOUSE OF REPRESENTATIVES
April 28, 2021
Mr. Good of Virginia introduced the following bill; which was referred to the Committee on the Budget, and in addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
A BILL
To prevent a fiscal crisis by enacting legislation to balance the Federal budget through reductions of discretionary and mandatory spending, and for other purposes.
Short title
This Act may be cited as the Nickel Plan Act
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Establishment and enforcement of spending caps
Outlay caps
The Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 900 et seq.) is amended by inserting after section 253 the following:
Establishing outlay caps
Outlay caps
In this section, the term outlay cap means:
Fiscal year 2022
For fiscal year 2022, total outlays (less net interest payments) shall be not more than $4,298,244,000,000, less 5 percent.
Fiscal year 2023
For fiscal year 2023, total outlays (less net interest payments) shall be not more than the amount computed under paragraph (1), less 5 percent.
Fiscal year 2024
For fiscal year 2024, total outlays (less net interest payments) shall be not more than the amount computed under paragraph (2), less 5 percent.
Fiscal year 2025
For fiscal year 2025, total outlays (less net interest payments) shall be not more than the amount computed under paragraph (3), less 5 percent.
Fiscal year 2026
For fiscal year 2026, total outlays (less net interest payments) shall be not more than the amount computed under paragraph (4), less 5 percent.
Fiscal year 2027 and subsequent fiscal years
In general
For fiscal year 2027 and each fiscal year thereafter, total outlays shall be not more than 18 percent of the gross domestic product for that fiscal year, as estimated by the Office of Management and Budget prior to March of the previous fiscal year.
Limitation
Notwithstanding subparagraph (A), for any fiscal year beginning with fiscal year 2028, total projected outlays may not be less than total projected outlays for the preceding fiscal year.
Sequestration
In general
Excess spending
Not later than 45 calendar days after the beginning of a fiscal year, the Office of Management and Budget shall prepare and the President shall order a sequestration to eliminate any excess outlay amount.
Definitions
Fiscal years 2022 through 2026
For each of fiscal years 2022 through 2026 and for purposes of this subsection, the term excess outlay amount means the amount by which total projected Federal outlays (less net interest payments) for a fiscal year exceeds the outlay cap for that fiscal year.
Fiscal year 2027 and subsequent fiscal years
For fiscal year 2027 and each fiscal year thereafter and for purposes of this subsection, the term excess outlay amount means the amount by which total projected Federal outlays for a fiscal year exceeds the outlay cap for that fiscal year.
Sequestration
CBO preview report
On August 15 of each year, the Congressional Budget Office shall issue a sequestration preview report as described in section 254(c)(4).
OMB preview report
On August 20 of each year, the Office of Management and Budget shall issue a sequestration preview report as described in section 254(c)(4).
Final report
On October 31 of each year, the Office of Management and Budget shall issue a final sequestration report as described in section 254(f)(3), which shall be accompanied by a Presidential order detailing spending reductions equal to the excess outlay amount.
Process
The reductions shall generally follow the process set forth in sections 253 and 254, except as provided in this section.
Congressional action
If the August 20 report by the Office of Management and Budget projects a sequestration, the Committee on the Budget of the Senate and the Committee on the Budget of the House of Representatives may report a resolution directing committees of their House to change the existing law to achieve the spending reductions outlined in the August 20 report necessary to meet the outlay limits.
No exempt programs
Section 255 and section 256 shall not apply to this section or any sequestration order issued under this section.
Look back
If, after November 14, a bill resulting in outlays for the fiscal year in progress is enacted that causes excess outlays, the excess outlay amount for the next fiscal year shall be increased by the amount or amounts of that breach.
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Conforming amendments to BBEDCA
Sequestration preview reports
Section 254(c)(4) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 904(c)(4)) is amended to read as follows:
Outlay cap sequestration reports
The preview reports shall set forth for the budget year estimates for the following:
For each of budget years 2022 through 2026, total projected outlays (less net interest payments), less one percent.
For budget year 2027 and each subsequent budget year, the estimated gross domestic product for that budget year.
The amount of reductions required under section 253A.
The sequestration percentage necessary to achieve the required reduction under section 253A.
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Final sequestration reports
Section 254(f)(3) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 904(f)(3)) is amended to read as follows:
Outlay caps sequestration reports
The final reports shall contain all the information required in the outlay cap sequestration preview reports. In addition, these reports shall contain, for the budget year, for each account to be sequestered, estimates of the baseline level of sequestrable budgetary resources and resulting outlays and the amount of budgetary sources to be sequestered and result in outlay reductions. The reports shall also contain estimates of the effects on outlays on the sequestration of each outyear for direct spending programs.
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Enforcement
Title III of the Congressional Budget Act of 1974 (2 U.S.C. 631 et seq.) is amended by adding after section 315 the following:
Enforcement procedures
Outlay caps
It shall not be in order in the House of Representatives or the Senate to consider any bill, joint resolution, amendment, amendment between the Houses, or conference report that includes any provision that would cause the most recently reported, current outlay cap set forth in section 253A of the Balanced Budget and Emergency Deficit Control Act of 1985 to be breached or increased.
Waiver or suspension
In the Senate
The provisions of this section may be waived or suspended in the Senate only by the affirmative vote of two-thirds of the Members, duly chosen and sworn.
In the House
The provisions of this section may be waived or suspended in the House of Representatives only by a rule or order proposing only to waive such provisions by an affirmative vote of two-thirds of the Members, duly chosen and sworn.
Point of order protection
In the House, it shall not be in order to consider a rule or order that waives the application of paragraph (2) of subsection (b).
Motion To suspend
It shall not be in order for the Speaker to entertain a motion to suspend the application of this section under clause 1 of rule XV.
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Conforming amendments
The table of contents set forth in—
section 1(b) of the Congressional Budget and Impoundment Control Act of 1974 is amended by inserting after the item relating to section 315 the following new item:
Sec. 316. Enforcement procedures.
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section 250(a) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended by inserting after the item relating to section 253 the following new item:
Sec. 253A. Establishing outlay caps.
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Effective date
This Act and the amendments made by this Act shall apply to fiscal year 2022 and each fiscal year thereafter, including any reports and calculations required for implementation in fiscal year 2022.
