420:
434:
153:. The White House acknowledged that the new Medicare prescription drug benefit plan would not meet the PAYGO requirements. The PAYGO system was reestablished as a standing rule of the House of Representatives (which does not have the force of law) on January 4, 2007 by the Democratic-controlled 110th Congress, but less than one year later, facing widespread demand to ease looming tax burdens caused by the
239:
The BCA column shows the discretionary caps in the original Budget
Control Act, as estimated in 2012. (Some of the automatic spending reductions target mandatory spending, leading to some fluctuation in estimates of the discretionary funding.) The actual caps, as modified by subsequent legislation,
195:
in exchange for $ 2.4 trillion in deficit reduction over the following ten years. This total included $ 1.2 trillion in spending cuts identified specifically in the legislation, with an additional $ 1.2 trillion in cuts that were to be determined by a bipartisan group of
Senators and Representatives
235:
would produce a plan to reduce deficits by $ 1.2 trillion over 10 years, and
Congress would enact it by January 15, 2012; if this did not happen, "automatic enforcement procedures" would impose a lower set of caps. Because the Joint Select Committee on Deficit Reduction did not come to agreement on
141:
Beginning in 1998, in response to the first federal budget surplus since 1969, Congress started enacting, and the
President signing, increases in discretionary spending above the statutory limit using creative means such as advance appropriations, delays in making obligations and payments, emergency
32:
that exceeds these caps, an across-the-board spending cut is automatically imposed on these categories, affecting all departments and programs by an equal percentage. The amount exceeding the budget limit is held back by the
Treasury and not transferred to the agencies specified in the appropriation
87:
Budget sequestration was first authorized by the
Balanced Budget and Emergency Deficit Control Act of 1985 (BBEDCA, Title II of Pub. L. 99-177). This is colloquially referred to as the Deficit Control. They provided for automatic spending cuts (called "sequesters") if the deficit exceeded a set of
203:
The
Sequestration Transparency Act of 2012 (Pub. L. 112-155) requires the president to submit a report to Congress on a potential sequestration which may be triggered by the failure of the "Super Committee" to propose and for Congress to enact, a plan to reduce the U.S. Federal Budget by $ 1.2
64:
and included the sequestration as a disincentive to be activated only if
Congress did not pass deficit reduction legislation. However, the committee did not come to agreement on any plan, activating the sequestration plan. The sequestration was to come into force on January 1, 2013 and was
204:
trillion as required by the Budget
Control Act. The report – which was issued September 14, 2012, and was close to 400 pages long – provided the warning that "sequestration would be deeply destructive to national security... and core government functions".
130:(OBRA '90), by statutory requirement, if legislation enacted during a session of Congress had the effect of increasing the projected deficit for the following year, a sequestration would be triggered. These rules were in effect from FY1991-FY2002. Enacted in 1990, it was extended in the
215:. The bill also lowered the sequestration cap for 2014 to offset the two-month delay in 2013. Also, for 2013 only, certain "security" funding such as homeland security and international affairs were included in the sequestration cut in order to lessen the cuts to defense.
161:
passed during the Bush administration, which included revenue reducing provisions and increases in spending that increased the deficit. At the beginning of the 111th
Congress, PAYGO was modified by including an "emergency" exemption, which was provided for the
222:
increased the sequestration caps for fiscal years 2014 and 2015 by $ 45 billion and $ 18 billion, respectively, in return for extending the imposition of the cuts to mandatory spending into 2022 and 2023, and miscellaneous savings elsewhere in the budget.
142:
designations, and specific directives. While staying within the technical definition of the law, this allowed spending that otherwise would not be allowed. The result was emergency spending of $ 34 billion in 1999 and $ 44 billion in 2000.
200:. The Super Committee failed to reach an agreement. In that event, a trigger mechanism in the bill was activated to implement across-the-board reductions in the rate of increase in spending known as "sequestration".
123:
From 1990 until 2002, and again since 2010, Congress has operated under a system called PAYGO, under which any new government spending needs to be offset by savings from (or cuts to) current programs.
231:
The Budget Control Act of 2011 set limits on discretionary spending, with separate pools for defense and non-defense spending. The act specified one set of caps to be enforced if the
197:
61:
328:
150:
746:
191:
In 2011, sequestration was used in the Budget Control Act of 2011 (Pub. L. 112-25) as a tool in federal budget control. This 2011 act authorized an increase in the
41:
585:
868:
146:
95:
37:
referring to the seizing of property by an agent of the court, to prevent destruction or harm, while any dispute over said property is resolved in court.
1073:
82:
163:
28:. Sequestration involves setting a hard cap on the amount of government spending within broadly defined categories; if Congress enacts annual
496:
145:
The PAYGO statute expired at the end of 2002. After this, Congress enacted President George W. Bush's proposed 2003 tax cuts (enacted as the
105: (1986) and Congress enacted a reworked version of the law in 1987. Gramm-Rudman failed, however, to prevent large budget deficits. The
232:
551:
The Budget and Economic Outlook: Fiscal Years 2004-2013, Appendix A, The Expiration of Budget Enforcement Procedures: Issues and Options
719:
518:
131:
127:
57:
923:
647:
1027:
1078:
88:
fixed deficit targets. The process for determining the amount of the automatic cuts was found unconstitutional in the case of
281:
208:
70:
24:
is a provision of United States law that causes an across-the-board reduction in certain kinds of spending included in the
796:
44:(BBEDCA) designed to keep Federal deficits below a maximum level limit. The hard caps were abandoned and replaced with a
602:
582:
483:
Spar, K. (October 2, 2012). Budget "sequestration" and selected program exemptions and special rules. Retrieved from
391:
379:
366:
349:
336:
319:
306:
289:
272:
259:
876:
824:
846:"Clearing Up Misunderstandings: Sequestration Would Not Be Tougher on Defense Than Non-Defense Programs in 2014"
766:
106:
49:
358:
298:
219:
158:
186:
25:
674:
170:
135:
212:
182:
66:
53:
548:
773:
236:
any plan, the lower caps went into effect. The values in the table below reflect these lower caps.
801:
154:
562:"H.R. 1 [108th]: Medicare Prescription Drug, Improvement, and Modernization Act of 2003"
211:, which was passed by both houses of Congress on January 1, 2013 as a partial resolution to the
99:
696:
425:
40:
The term "budget sequestration" was first used to describe an enforcement procedure of the
525:
8:
583:
H.R. 4954 - Medicare Modernization and Prescription Drug Act of 2002 sent on 27 June 2002
34:
651:
561:
207:
The start of the sequestration was delayed from January 2, 2013 to March 1, 2013 by the
829:
102:
29:
774:"OMB Report Pursuant to the Sequestration Transparency Act of 2012 (Pub. L. 112-155)"
459:
157:, Congress abandoned its pay-go pledge. The point of order was also waived for the
90:
52:, which was in effect until 2002. Sequestration was later included as part of the
589:
439:
845:
747:"The $ 995 billion Sequester Cut Is Actually a $ 110 Billion Spending Increase"
1058:
1067:
626:"The New Pay-As-You-Go Rule In The House Of Representatives By Richard Kogan"
484:
776:. Executive Office of the President of the United States. September 14, 2012
192:
720:"Dewonkify – Offset: A Funding Source Used to Pay for Government Spending"
998:
973:
948:
433:
898:
844:
Friedman, Joel; Kogan, Richard; Parrott, Sharon (September 18, 2013).
16:
U.S. legislative procedure reducing spending by the Federal Government
843:
625:
410:
549:
http://www.cbo.gov/ftpdoc.cfm?index=4032&type=0&sequence=7
198:
United States Congress Joint Select Committee on Deficit Reduction
751:
825:"Senate Passes Legislation to Allow Taxes on Affluent to Rise"
151:
Medicare Prescription Drug, Improvement, and Modernization Act
603:"House Approves Democratic 'Pay-Go' Spending-Control Measure"
118:
45:
462:. Department of Political Science, Auburn University. 2005
42:
Balanced Budget and Emergency Deficit Control Act of 1985
797:"Breaking – White House Releases Sequestration Report"
744:
924:"CBO Final Sequestration Report for Fiscal Year 2012"
147:
Jobs and Growth Tax Relief Reconciliation Act of 2003
1059:
Congressional Budget Office reports on sequestration
415:
196:
known as the "Super Committee" or officially as the
675:"Pay Go, Pay Gone: AMT Drives Senate Dems to Blink"
999:"Final Sequestration Report for Fiscal Year 2016"
974:"Final Sequestration Report for Fiscal Year 2014"
949:"Final Sequestration Report for Fiscal Year 2013"
452:
1065:
901:. Congressional Budget Office. December 11, 2013
33:bills. The word sequestration was derived from
929:. Congressional Budget Office. January 12, 2012
860:
672:
226:
164:American Recovery and Reinvestment Act of 2009
542:
126:In the initial PAYGO regimen, enacted in the
745:Gregory, Paul Roderick (February 19, 2013).
76:
976:. Congressional Budget Office. January 2014
233:Joint Select Committee on Deficit Reduction
968:
966:
918:
916:
866:
1074:Terminology of the United States Congress
951:. Congressional Budget Office. March 2013
176:
132:Omnibus Budget Reconciliation Act of 1993
128:Omnibus Budget Reconciliation Act of 1990
83:Gramm–Rudman–Hollings Balanced Budget Act
848:. Center on Budget and Policy Priorities
816:
374:$ 1,244 (Bipartisan Budget Act of 2018)
344:$ 1,070 (Bipartisan Budget Act of 2015)
314:$ 1,014 (Bipartisan Budget Act of 2013)
173:into law, making PAYGO again mandatory.
62:a Congressional debt-reduction committee
963:
941:
913:
822:
497:"H.J.RES.324 All Congressional Actions"
460:"A Glossary of Political Economy Terms"
73:delayed it until March 1 of that year.
1066:
867:Desjardins, Lisa (December 10, 2013).
794:
718:Morton, Erin Will (December 8, 2012).
717:
479:
477:
109:supplanted the fixed deficit targets.
1022:
1020:
993:
991:
823:Weisman, Jonathan (January 1, 2013).
795:Bowman, Andrew (September 14, 2012).
623:
600:
1035:U.S. Senate Appropriations Committee
837:
282:American Taxpayer Relief Act of 2012
209:American Taxpayer Relief Act of 2012
71:American Taxpayer Relief Act of 2012
673:Anonymous says (December 7, 2007).
624:Kogan, Richard (January 12, 2007).
474:
169:In 2010 President Obama signed the
13:
1017:
988:
869:"The budget deal in plain English"
14:
1090:
1052:
650:. Rules.house.gov. Archived from
166:during the Obama administration.
726:. Drinker Biddle & Reath LLP
601:Faler, Brian (January 5, 2007).
432:
418:
1028:"Bipartisan Budget Act of 2018"
899:"Bipartisan Budget Act of 2013"
891:
788:
738:
711:
689:
666:
640:
617:
594:
576:
554:
511:
489:
107:Budget Enforcement Act of 1990
50:Budget Enforcement Act of 1990
1:
1079:United States federal budgets
519:"Background on Pay-As-You-Go"
446:
359:Bipartisan Budget Act of 2018
329:Bipartisan Budget Act of 2015
299:Bipartisan Budget Act of 2013
220:Bipartisan Budget Act of 2013
159:Economic Stimulus Act of 2008
677:. Taxvox.taxpolicycenter.org
187:Budget sequestration in 2013
112:
7:
1003:Congressional Budget Office
404:
227:Discretionary spending caps
171:Statutory Pay-As-You-Go Act
136:Balanced Budget Act of 1997
10:
1097:
183:Budget Control Act of 2011
180:
116:
80:
54:Budget Control Act of 2011
30:appropriations legislation
588:December 1, 2020, at the
77:Gramm–Rudman–Hollings Act
802:The National Law Review
724:The National Law Review
697:"Read The Bill: H.R. 1"
155:Alternative Minimum Tax
65:considered part of the
218:In December 2013, the
177:Budget Control Act era
499:. Library of Congress
56:, which resolved the
879:on December 11, 2013
654:on December 12, 2010
648:"Committee on Rules"
426:United States portal
22:Budget sequestration
1005:. December 28, 2015
213:fiscal cliff crisis
58:debt-ceiling crisis
830:The New York Times
254:Actual (billions)
60:; the bill set up
531:on March 26, 2009
402:
401:
1086:
1047:
1046:
1044:
1042:
1037:. pp. 40–41
1032:
1024:
1015:
1014:
1012:
1010:
995:
986:
985:
983:
981:
970:
961:
960:
958:
956:
945:
939:
938:
936:
934:
928:
920:
911:
910:
908:
906:
895:
889:
888:
886:
884:
875:. Archived from
864:
858:
857:
855:
853:
841:
835:
834:
820:
814:
813:
811:
809:
792:
786:
785:
783:
781:
770:
764:
763:
761:
759:
742:
736:
735:
733:
731:
715:
709:
708:
706:
704:
693:
687:
686:
684:
682:
670:
664:
663:
661:
659:
644:
638:
637:
635:
633:
621:
615:
614:
612:
610:
598:
592:
580:
574:
573:
571:
569:
558:
552:
546:
540:
539:
537:
536:
530:
524:. Archived from
523:
515:
509:
508:
506:
504:
493:
487:
481:
472:
471:
469:
467:
456:
442:
437:
436:
428:
423:
422:
421:
243:
242:
240:are also shown.
91:Bowsher v. Synar
1096:
1095:
1089:
1088:
1087:
1085:
1084:
1083:
1064:
1063:
1055:
1050:
1040:
1038:
1030:
1026:
1025:
1018:
1008:
1006:
997:
996:
989:
979:
977:
972:
971:
964:
954:
952:
947:
946:
942:
932:
930:
926:
922:
921:
914:
904:
902:
897:
896:
892:
882:
880:
865:
861:
851:
849:
842:
838:
821:
817:
807:
805:
793:
789:
779:
777:
772:
771:
767:
757:
755:
743:
739:
729:
727:
716:
712:
702:
700:
695:
694:
690:
680:
678:
671:
667:
657:
655:
646:
645:
641:
631:
629:
622:
618:
608:
606:
605:. Bloomberg.com
599:
595:
590:Wayback Machine
581:
577:
567:
565:
560:
559:
555:
547:
543:
534:
532:
528:
521:
517:
516:
512:
502:
500:
495:
494:
490:
482:
475:
465:
463:
458:
457:
453:
449:
440:Politics portal
438:
431:
424:
419:
417:
407:
251:BCA (billions)
247:
229:
189:
181:Main articles:
179:
121:
115:
85:
79:
17:
12:
11:
5:
1094:
1093:
1082:
1081:
1076:
1062:
1061:
1054:
1053:External links
1051:
1049:
1048:
1016:
987:
962:
940:
912:
890:
859:
836:
815:
787:
765:
737:
710:
688:
665:
639:
616:
593:
575:
553:
541:
510:
488:
473:
450:
448:
445:
444:
443:
429:
414:
413:
406:
403:
400:
399:
397:
394:
388:
387:
385:
382:
376:
375:
372:
369:
363:
362:
355:
352:
346:
345:
342:
339:
333:
332:
325:
322:
316:
315:
312:
309:
303:
302:
295:
292:
286:
285:
278:
275:
269:
268:
265:
262:
256:
255:
252:
249:
228:
225:
178:
175:
117:Main article:
114:
111:
81:Main article:
78:
75:
48:system by the
26:federal budget
15:
9:
6:
4:
3:
2:
1092:
1091:
1080:
1077:
1075:
1072:
1071:
1069:
1060:
1057:
1056:
1036:
1029:
1023:
1021:
1004:
1000:
994:
992:
975:
969:
967:
950:
944:
925:
919:
917:
900:
894:
878:
874:
870:
863:
847:
840:
832:
831:
826:
819:
804:
803:
798:
791:
775:
769:
754:
753:
748:
741:
725:
721:
714:
699:. GovTrack.us
698:
692:
676:
669:
653:
649:
643:
627:
620:
604:
597:
591:
587:
584:
579:
564:. GovTrack.us
563:
557:
550:
545:
527:
520:
514:
498:
492:
485:
480:
478:
461:
455:
451:
441:
435:
430:
427:
416:
412:
409:
408:
398:
395:
393:
390:
389:
386:
383:
381:
378:
377:
373:
370:
368:
365:
364:
360:
356:
353:
351:
348:
347:
343:
340:
338:
335:
334:
330:
326:
323:
321:
318:
317:
313:
310:
308:
305:
304:
300:
296:
293:
291:
288:
287:
283:
279:
276:
274:
271:
270:
266:
263:
261:
258:
257:
253:
250:
245:
244:
241:
237:
234:
224:
221:
216:
214:
210:
205:
201:
199:
194:
188:
184:
174:
172:
167:
165:
160:
156:
152:
148:
143:
139:
137:
133:
129:
124:
120:
110:
108:
104:
101:
97:
94:
92:
84:
74:
72:
68:
63:
59:
55:
51:
47:
43:
38:
36:
31:
27:
23:
19:
1039:. Retrieved
1034:
1007:. Retrieved
1002:
978:. Retrieved
953:. Retrieved
943:
931:. Retrieved
905:December 19,
903:. Retrieved
893:
883:December 11,
881:. Retrieved
877:the original
872:
862:
850:. Retrieved
839:
828:
818:
806:. Retrieved
800:
790:
780:November 12,
778:. Retrieved
768:
756:. Retrieved
750:
740:
730:February 26,
728:. Retrieved
723:
713:
703:December 31,
701:. Retrieved
691:
681:December 31,
679:. Retrieved
668:
658:December 31,
656:. Retrieved
652:the original
642:
632:December 31,
630:. Retrieved
619:
609:December 31,
607:. Retrieved
596:
578:
568:December 31,
566:. Retrieved
556:
544:
533:. Retrieved
526:the original
513:
503:December 17,
501:. Retrieved
491:
464:. Retrieved
454:
238:
230:
217:
206:
202:
193:debt ceiling
190:
168:
144:
140:
125:
122:
89:
86:
67:fiscal cliff
39:
35:a legal term
21:
20:
18:
1041:February 9,
1009:February 8,
852:October 15,
808:December 1,
758:December 2,
466:November 6,
149:), and the
1068:Categories
980:August 25,
955:August 25,
933:August 25,
628:. Cbpp.org
535:2010-12-31
447:References
69:, but the
411:Austerity
357:$ 1,208 (
327:$ 1,067 (
297:$ 1,012 (
280:$ 1,043 (
113:PAYGO era
586:Archived
405:See also
396:$ 1,146
384:$ 1,120
371:$ 1,093
354:$ 1,066
341:$ 1,040
324:$ 1,016
277:$ 1,047
267:$ 1,043
264:$ 1,043
134:and the
752:Forbes
311:$ 994
294:$ 973
246:Fiscal
1031:(PDF)
927:(PDF)
529:(PDF)
522:(PDF)
248:year
119:PAYGO
98:
46:PAYGO
1043:2018
1011:2016
982:2015
957:2015
935:2015
907:2013
885:2013
854:2013
810:2012
782:2012
760:2012
732:2013
705:2010
683:2010
660:2010
634:2010
611:2010
570:2010
505:2010
468:2012
392:2021
380:2020
367:2019
350:2018
337:2017
320:2016
307:2015
290:2014
273:2013
260:2012
185:and
100:U.S.
873:CNN
103:714
96:478
1070::
1033:.
1019:^
1001:.
990:^
965:^
915:^
871:.
827:.
799:.
749:.
722:.
476:^
361:)
331:)
301:)
284:)
138:.
1045:.
1013:.
984:.
959:.
937:.
909:.
887:.
856:.
833:.
812:.
784:.
762:.
734:.
707:.
685:.
662:.
636:.
613:.
572:.
538:.
507:.
486:.
470:.
93:,
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.