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    TEXT OF BUDGET CONTROLACTAMENDMENT

    SECTION 1. SHORT TITLE; TABLE OF CONTENTS.1

    (a) SHORT TITLE.This Act may be cited as the2

    Budget Control Act of 2011.3

    (b) T ABLE OF CONTENTS.The table of contents for4

    this Act is as follows:5Sec. 1. Short title; table of contents.

    Sec. 2. Severability.

    TITLE ITEN-YEAR DISCRETIONARY CAPS WITH SEQUESTER

    Sec. 101. Enforcing discretionary spending limits.

    Sec. 102. Definitions.

    Sec. 103. Reports and orders.

    Sec. 104. Expiration.

    Sec. 105. Amendments to the Congressional Budget and Impoundment Control

    Act of 1974.

    Sec. 106. Senate budget enforcement.

    TITLE IIVOTE ON THE BALANCED BUDGET AMENDMENT

    Sec. 201. Vote on the balanced budget amendment.

    Sec. 202. Consideration by the other House.

    TITLE IIIDEBT CEILING DISAPPROVAL PROCESS

    Sec. 301. Debt ceiling disapproval process.

    Sec. 302. Enforcement of budget goal.

    TITLE IVJOINT SELECT COMMITTEE ON DEFICIT REDUCTION

    Sec. 401. Establishment of Joint Select Committee.

    Sec. 402. Expedited consideration of joint committee recommendations.

    Sec. 403. Funding.

    Sec. 404. Rulemaking.

    TITLE VPELL GRANT AND STUDENT LOAN PROGRAM CHANGES

    Sec. 501. Federal Pell grants.

    Sec. 502. Termination of authority to make interest subsidized loans to grad-

    uate and professional students.

    Sec. 503. Termination of direct loan repayment incentives.

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    Sec. 504. Inapplicability of title IV negotiated rulemaking and master calendar

    exception.

    SEC. 2. SEVERABILITY.1

    If any provision of this Act, or any application of such2

    provision to any person or circumstance, is held to be un-3

    constitutional, the remainder of this Act and the applica-4

    tion of this Act to any other person or circumstance shall5

    not be affected.6

    TITLE ITEN-YEAR DISCRE-7

    TIONARY CAPS WITH SEQUES-8

    TER9

    SEC. 101. ENFORCING DISCRETIONARY SPENDING LIMITS.10

    Section 251 of the Balanced Budget and Emergency11

    Deficit Control Act of 1985 is amended to read as follows:12

    SEC. 251. ENFORCING DISCRETIONARY SPENDING LIMITS.13

    (a) ENFORCEMENT.14(1) SEQUESTRATION.Within 15 calendar15

    days after Congress adjourns to end a session there16

    shall be a sequestration to eliminate a budget-year17

    breach, if any, within any category.18

    (2) ELIMINATING A BREACH.Each non-ex-19

    empt account within a category shall be reduced by20

    a dollar amount calculated by multiplying the en-21

    acted level of sequestrable budgetary resources in22

    that account at that time by the uniform percentage23

    necessary to eliminate a breach within that category.24

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    (3) MILITARY PERSONNEL.If the President1

    uses the authority to exempt any personnel account2

    from sequestration under section 255(f), each ac-3

    count within subfunctional category 051 (other than4

    those military personnel accounts for which the au-5

    thority provided under section 255(f) has been exer-6

    cised) shall be further reduced by a dollar amount7

    calculated by multiplying the enacted level of non-ex-8

    empt budgetary resources in that account at that9

    time by the uniform percentage necessary to offset10

    the total dollar amount by which outlays are not re-11

    duced in military personnel accounts by reason of12

    the use of such authority.13

    (4) PART- YEAR APPROPRIATIONS.If, on the14

    date specified in paragraph (1), there is in effect an15

    Act making or continuing appropriations for part of16

    a fiscal year for any budget account, then the dollar17

    sequestration calculated for that account under18

    paragraphs (2) and (3) shall be subtracted from19

    (A) the annualized amount otherwise20

    available by law in that account under that or21

    a subsequent part-year appropriation; and22

    (B) when a full-year appropriation for23

    that account is enacted, from the amount other-24

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    wise provided by the full-year appropriation for1

    that account.2

    (5) LOOK-BACK.If, after June 30, an appro-3

    priation for the fiscal year in progress is enacted4

    that causes a breach within a category for that year5

    (after taking into account any sequestration of6

    amounts within that category), the discretionary7

    spending limits for that category for the next fiscal8

    year shall be reduced by the amount or amounts of9

    that breach.10

    (6) WITHIN-SESSION SEQUESTRATION.If an11

    appropriation for a fiscal year in progress is enacted12

    (after Congress adjourns to end the session for that13

    budget year and before July 1 of that fiscal year)14

    that causes a breach within a category for that year15

    (after taking into account any prior sequestration of16

    amounts within that category), 15 days later there17

    shall be a sequestration to eliminate that breach18

    within that category following the procedures set19

    forth in paragraphs (2) through (4).20

    (7) ESTIMATES.21

    (A) CBO ESTIMATES.As soon as prac-22

    ticable after Congress completes action on any23

    discretionary appropriation, CBO, after con-24

    sultation with the Committees on the Budget of25

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    the House of Representatives and the Senate,1

    shall provide OMB with an estimate of the2

    amount of discretionary new budget authority3

    and outlays for the current year, if any, and the4

    budget year provided by that legislation.5

    (B) OMB ESTIMATES AND EXPLANATION6

    OF DIFFERENCES.Not later than 7 calendar7

    days (excluding Saturdays, Sundays, and legal8

    holidays) after the date of enactment of any9

    discretionary appropriation, OMB shall trans-10

    mit a report to the House of Representatives11

    and to the Senate containing the CBO estimate12

    of that legislation, an OMB estimate of the13

    amount of discretionary new budget authority14

    and outlays for the current year, if any, and the15

    budget year provided by that legislation, and an16

    explanation of any difference between the 2 es-17

    timates. If during the preparation of the report18

    OMB determines that there is a significant dif-19

    ference between OMB and CBO, OMB shall20

    consult with the Committees on the Budget of21

    the House of Representatives and the Senate22

    regarding that difference and that consultation23

    shall include, to the extent practicable, written24

    communication to those committees that affords25

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    such committees the opportunity to comment1

    before the issuance of the report.2

    (C) ASSUMPTIONS AND GUIDELINES.3

    OMB estimates under this paragraph shall be4

    made using current economic and technical as-5

    sumptions. OMB shall use the OMB estimates6

    transmitted to the Congress under this para-7

    graph. OMB and CBO shall prepare estimates8

    under this paragraph in conformance with9

    scorekeeping guidelines determined after con-10

    sultation among the Committees on the Budget11

    of the House of Representatives and the Sen-12

    ate, CBO, and OMB.13

    (D) ANNUAL APPROPRIATIONS.For14

    purposes of this paragraph, amounts provided15

    by annual appropriations shall include any dis-16

    cretionary appropriations for the current year,17

    if any, and the budget year in accounts for18

    which funding is provided in that legislation19

    that result from previously enacted legislation.20

    (b) ADJUSTMENTS TO DISCRETIONARY SPENDING21

    LIMITS.22

    (1) CONCEPTS AND DEFINITIONS.When the23

    President submits the budget under section 1105 of24

    title 31, United States Code, OMB shall calculate25

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    and the budget shall include adjustments to discre-1

    tionary spending limits (and those limits as cumula-2

    tively adjusted) for the budget year and each out-3

    year to reflect changes in concepts and definitions.4

    Such changes shall equal the baseline levels of new5

    budget authority and outlays using up-to-date con-6

    cepts and definitions, minus those levels using the7

    concepts and definitions in effect before such8

    changes. Such changes may only be made after con-9

    sultation with the Committees on Appropriations10

    and the Budget of the House of Representatives and11

    the Senate, and that consultation shall include writ-12

    ten communication to such committees that affords13

    such committees the opportunity to comment before14

    official action is taken with respect to such changes.15

    (2) SEQUESTRATION REPORTS.When OMB16

    submits a sequestration report under section 254(e),17

    (f), or (g) for a fiscal year, OMB shall calculate, and18

    the sequestration report and subsequent budgets19

    submitted by the President under section 1105(a) of20

    title 31, United States Code, shall include adjust-21

    ments to discretionary spending limits (and those22

    limits as adjusted) for the fiscal year and each suc-23

    ceeding year, as follows:24

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    (A) EMERGENCY APPROPRIATIONS; OVER-1

    SEAS CONTINGENCY OPERATIONS/GLOBAL WAR2

    ON TERRORISM.If, for any fiscal year, appro-3

    priations for discretionary accounts are enacted4

    that5

    (i) the Congress designates as emer-6

    gency requirements in statute on an ac-7

    count by account basis and the President8

    subsequently so designates, or9

    (ii) the Congress designates for10

    Overseas Contingency Operations/Global11

    War on Terrorism in statute on an account12

    by account basis and the President subse-13

    quently so designates,14

    the adjustment shall be the total of such appro-15

    priations in discretionary accounts designated16

    as emergency requirements or for Overseas17

    Contingency Operations/Global War on Ter-18

    rorism, as applicable.19

    (B) CONTINUING DISABILITY REVIEWS20

    AND REDETERMINATIONS.(i) If a bill or joint21

    resolution making appropriations for a fiscal22

    year is enacted that specifies an amount for23

    continuing disability reviews under titles II and24

    XVI of the Social Security Act and for the cost25

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    associated with conducting redeterminations of1

    eligibility under title XVI of the Social Security2

    Act, then the adjustments for that fiscal year3

    shall be the additional new budget authority4

    provided in that Act for such expenses for that5

    fiscal year, but shall not exceed6

    (I) for fiscal year 2012,7

    $623,000,000 in additional new budget au-8

    thority;9

    (II) for fiscal year 2013,10

    $751,000,000 in additional new budget au-11

    thority;12

    (III) for fiscal year 2014,13

    $924,000,000 in additional new budget au-14

    thority;15

    (IV) for fiscal year 2015,16

    $1,123,000,000 in additional new budget17

    authority;18

    (V) for fiscal year 2016,19

    $1,166,000,000 in additional new budget20

    authority;21

    (VI) for fiscal year 2017,22

    $1,309,000,000 in additional new budget23

    authority;24

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    (VII) for fiscal year 2018,1

    $1,309,000,000 in additional new budget2

    authority;3

    (VIII) for fiscal year 2019,4

    $1,309,000,000 in additional new budget5

    authority;6

    (IX) for fiscal year 2020,7

    $1,309,000,000 in additional new budget8

    authority; and9

    (X) for fiscal year 2021,10

    $1,309,000,000 in additional new budget11

    authority.12

    (ii) As used in this subparagraph13

    (I) the term continuing disability re-14

    views means continuing disability reviews15

    under sections 221(i) and 1614(a)(4) of16

    the Social Security Act;17

    (II) the term redetermination18

    means redetermination of eligibility under19

    sections 1611(c)(1) and 1614(a)(3)(H) of20

    the Social Security Act; and21

    (III) the term additional new budget22

    authority means the amount provided for23

    a fiscal year, in excess of $273,000,000, in24

    an appropriation Act and specified to pay25

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    for the costs of continuing disability re-1

    views and redeterminations under the2

    heading Limitation on Administrative Ex-3

    penses for the Social Security Administra-4

    tion.5

    (C) HEALTH CARE FRAUD AND ABUSE6

    CONTROL.(i) If a bill or joint resolution mak-7

    ing appropriations for a fiscal year is enacted8

    that specifies an amount for the health care9

    fraud abuse control program at the Department10

    of Health and Human Services (7583930711

    571), then the adjustments for that fiscal year12

    shall be the amount of additional new budget13

    authority provided in that Act for such program14

    for that fiscal year, but shall not exceed15

    (I) for fiscal year 2012,16

    $270,000,000 in additional new budget au-17

    thority;18

    (II) for fiscal year 2013,19

    $299,000,000 in additional new budget au-20

    thority;21

    (III) for fiscal year 2014,22

    $329,000,000 in additional new budget au-23

    thority;24

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    (IV) for fiscal year 2015,1

    $361,000,000 in additional new budget au-2

    thority;3

    (V) for fiscal year 2016,4

    $395,000,000 in additional new budget au-5

    thority;6

    (VI) for fiscal year 2017,7

    $414,000,000 in additional new budget au-8

    thority;9

    (VII) for fiscal year 2018,10

    $434,000,000 in additional new budget au-11

    thority;12

    (VIII) for fiscal year 2019,13

    $454,000,000 in additional new budget au-14

    thority;15

    (IX) for fiscal year 2020,16

    $475,000,000 in additional new budget au-17

    thority; and18

    (X) for fiscal year 2021,19

    $496,000,000 in additional new budget au-20

    thority.21

    (ii) As used in this subparagraph, the22

    term additional new budget authority means23

    the amount provided for a fiscal year, in excess24

    of $311,000,000, in an appropriation Act and25

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    specified to pay for the costs of the health care1

    fraud and abuse control program.2

    (D) DISASTER FUNDING.3

    (i) If, for fiscal years 2012 through4

    2021, appropriations for discretionary ac-5

    counts are enacted that Congress des-6

    ignates as being for disaster relief in stat-7

    ute, the adjustment for a fiscal year shall8

    be the total of such appropriations for the9

    fiscal year in discretionary accounts des-10

    ignated as being for disaster relief, but not11

    to exceed the total of12

    (I) the average funding provided13

    for disaster relief over the previous 1014

    years, excluding the highest and low-15

    est years; and16

    (II) the amount, for years when17

    the enacted new discretionary budget18

    authority designated as being for dis-19

    aster relief for the preceding fiscal20

    year was less than the average as cal-21

    culated in subclause (I) for that fiscal22

    year, that is the difference between23

    the enacted amount and the allowable24

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    adjustment as calculated in such sub-1

    clause for that fiscal year.2

    (ii) OMB shall report to the Com-3

    mittees on Appropriations and Budget in4

    each House the average calculated pursu-5

    ant to clause (i)(II), not later than 30 days6

    after the date of the enactment of the7

    Budget Control Act of 2011.8

    (iii) For the purposes of this sub-9

    paragraph, the term disaster relief means10

    activities carried out pursuant to a deter-11

    mination under section 102(2) of the Rob-12

    ert T. Stafford Disaster Relief and Emer-13

    gency Assistance Act (42 U.S.C. 5122(2)).14

    (iv) Appropriations considered dis-15

    aster relief under this subparagraph in a16

    fiscal year shall not be eligible for adjust-17

    ments under subparagraph (A) for the fis-18

    cal year.19

    (c) DISCRETIONARY SPENDING LIMIT.As used in20

    this part, the term discretionary spending limit means21

    (1) with respect to fiscal year 201222

    (A) for the security category,23

    $684,000,000,000 in new budget authority; and24

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    (B) for the nonsecurity category,1

    $359,000,000,000 in new budget authority;2

    (2) with respect to fiscal year 20133

    (A) for the security category,4

    $686,000,000,000 in new budget authority; and5

    (B) for the nonsecurity category,6

    $361,000,000,000 in new budget authority;7

    (3) with respect to fiscal year 2014, for the8

    discretionary category, $1,066,000,000,000 in new9

    budget authority;10

    (4) with respect to fiscal year 2015, for the11

    discretionary category, $1,086,000,000,000 in new12

    budget authority;13

    (5) with respect to fiscal year 2016, for the14

    discretionary category, $1,107,000,000,000 in new15

    budget authority;16

    (6) with respect to fiscal year 2017, for the17

    discretionary category, $1,131,000,000,000 in new18

    budget authority;19

    (7) with respect to fiscal year 2018, for the20

    discretionary category, $1,156,000,000,000 in new21

    budget authority;22

    (8) with respect to fiscal year 2019, for the23

    discretionary category, $1,182,000,000,000 in new24

    budget authority;25

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    (9) with respect to fiscal year 2020, for the1

    discretionary category, $1,208,000,000,000 in new2

    budget authority; and3

    (10) with respect to fiscal year 2021, for the4

    discretionary category, $1,234,000,000,000 in new5

    budget authority;6

    as adjusted in strict conformance with subsection (b)..7

    SEC. 102. DEFINITIONS.8

    Section 250(c) of the Balanced Budget and Emer-9

    gency Deficit Control Act of 1985 is amended as follows:10

    (1) Strike paragraph (4) and insert the fol-11

    lowing new paragraph:12

    (4)(A) The term nonsecurity category means13

    all discretionary appropriations not included in the14

    security category defined in subparagraph (B).15

    (B) The term security category includes dis-16

    cretionary appropriations associated with agency17

    budgets for the Department of Defense, the Depart-18

    ment of Homeland Security, the Department of Vet-19

    erans Affairs, the National Nuclear Security Admin-20

    istration, the intelligence community management21

    account (95040101054), and all budget ac-22

    counts in budget function 150 (international af-23

    fairs).24

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    (C) The term discretionary category includes1

    all discretionary appropriations..2

    (2) In paragraph (8)(C), strike the food stamp3

    program and insert the Supplemental Nutrition4

    Assistance Program.5

    (3) Strike paragraph (14) and insert the fol-6

    lowing new paragraph:7

    (14) The term outyear means a fiscal year8

    one or more years after the budget year..9

    (4) At the end, add the following new para-10

    graphs:11

    (20) The term emergency means a situation12

    that13

    (A) requires new budget authority and14

    outlays (or new budget authority and the out-15

    lays flowing therefrom) for the prevention or16

    mitigation of, or response to, loss of life or17

    property, or a threat to national security; and18

    (B) is unanticipated.19

    (21) The term unanticipated means that the20

    underlying situation is21

    (A) sudden, which means quickly coming22

    into being or not building up over time;23

    (B) urgent, which means a pressing and24

    compelling need requiring immediate action;25

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    (C) unforeseen, which means not pre-1

    dicted or anticipated as an emerging need; and2

    (D) temporary, which means not of a per-3

    manent duration..4

    SEC. 103. REPORTS AND ORDERS.5

    Section 254 of the Balanced Budget and Emergency6

    Deficit Control Act of 1985 is amended as follows:7

    (1) In subsection (c)(2), strike 2002 and in-8

    sert 2021.9

    (2) At the end of subsection (e), insert This10

    report shall also contain a preview estimate of the11

    adjustment for disaster funding for the upcoming12

    fiscal year..13

    (3) In subsection (f)(2)(A), strike 2002 and14

    insert 2021; before the concluding period insert ,15

    including a final estimate of the adjustment for dis-16

    aster funding.17

    SEC. 104. EXPIRATION.18

    (a) REPEALER.Section 275 of the Balanced Budget19

    and Emergency Deficit Control Act of 1985 is repealed.20

    (b) CONFORMING CHANGE.Sections 252(d)(1),21

    254(c), 254(f)(3), and 254(i) of the Balanced Budget and22

    Emergency Deficit Control Act of 1985 shall not apply23

    to the Congressional Budget Office.24

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    SEC. 105. AMENDMENTS TO THE CONGRESSIONAL BUDGET1

    AND IMPOUNDMENT CONTROL ACT OF 1974.2

    (a) ADJUSTMENTS.Section 314 of the Congres-3

    sional Budget Act of 1974 is amended as follows:4

    (1) Strike subsection (a) and insert the fol-5

    lowing:6

    (a) ADJUSTMENTS.After the reporting of a bill or7

    joint resolution or the offering of an amendment thereto8

    or the submission of a conference report thereon, the9

    chairman of the Committee on the Budget of the House10

    of Representatives or the Senate may make appropriate11

    budgetary adjustments of new budget authority and the12

    outlays flowing therefrom in the same amount as required13

    by section 251(b) of the Balanced Budget and Emergency14

    Deficit Control Act of 1985..15

    (2) Strike subsections (b) and (e) and redesig-16

    nate subsections (c) and (d) as subsections (b) and17

    (c), respectively.18

    (3) At the end, add the following new sub-19

    sections:20

    (d) EMERGENCIES IN THE HOUSE OF REPRESENTA-21

    TIVES. (1) In the House of Representatives, if a re-22

    ported bill or joint resolution, or amendment thereto or23

    conference report thereon, contains a provision providing24

    new budget authority and outlays or reducing revenue,25

    and a designation of such provision as an emergency re-26

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    able shall be in order at any point in the reading of the1

    pending measure.2

    (e) ENFORCEMENT OF DISCRETIONARY SPENDING3

    CAPS.It shall not be in order in the House of Represent-4

    atives or the Senate to consider any bill, joint resolution,5

    amendment, motion, or conference report that would cause6

    the discretionary spending limits as set forth in section7

    251 of the Balanced Budget and Emergency Deficit Con-8

    trol Act to be exceeded..9

    (b) DEFINITIONS.Section 3 of the Congressional10

    Budget and Impoundment Control Act of 1974 is amend-11

    ed by adding at the end the following new paragraph:12

    (11) The terms emergency and unantici-13

    pated have the meanings given to such terms in sec-14

    tion 250(c) of the Balanced Budget and Emergency15

    Deficit Control Act of 1985..16

    (c) APPEALS FOR DISCRETIONARY CAPS.Section17

    904(c)(2) of the Congressional Budget Act of 1974 is18

    amended by striking and 312(c) and inserting 312(c),19

    and 314(e).20

    SEC. 106. SENATE BUDGET ENFORCEMENT.21

    (a) IN GENERAL.22

    (1) For the purpose of enforcing the Congres-23

    sional Budget Act of 1974 through April 15, 2012,24

    including section 300 of that Act, and enforcing25

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    budgetary points of order in prior concurrent resolu-1

    tions on the budget, the allocations, aggregates, and2

    levels set in subsection (b)(1) shall apply in the Sen-3

    ate in the same manner as for a concurrent resolu-4

    tion on the budget for fiscal year 2012 with appro-5

    priate budgetary levels for fiscal years 2011 and6

    2013 through 2021.7

    (2) For the purpose of enforcing the Congres-8

    sional Budget Act of 1974 after April 15, 2012, in-9

    cluding section 300 of that Act, and enforcing budg-10

    etary points of order in prior concurrent resolutions11

    on the budget, the allocations, aggregates, and levels12

    set in subsection (b)(2) shall apply in the Senate in13

    the same manner as for a concurrent resolution on14

    the budget for fiscal year 2013 with appropriate15

    budgetary levels for fiscal years 2012 and 201416

    through 2022.17

    (b) COMMITTEE ALLOCATIONS, AGGREGATES, AND18

    LEVELS.19

    (1) As soon as practicable after the date of en-20

    actment of this section, the Chairman of the Com-21

    mittee on the Budget shall file22

    (A) for the Committee on Appropriations,23

    committee allocations for fiscal years 2011 and24

    2012 consistent with the discretionary spending25

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    the Congressional Budget Offices March 20121

    baseline for the purpose of enforcing section2

    302 of the Congressional Budget Act of 1974;3

    (C) aggregate spending levels for fiscal4

    years 2012 and 2013 and aggregate revenue5

    levels for fiscal years 2012, 2013, 20132017,6

    and 20132022 consistent with the Congres-7

    sional Budget Offices March 2012 baseline and8

    the discretionary spending limits set forth in9

    this Act for the purpose of enforcing section10

    311 of the Congressional Budget Act of 1974;11

    and12

    (D) levels of Social Security revenues and13

    outlays for fiscal years 2012 and 2013, 201314

    2017, and 20132022 consistent with the Con-15

    gressional Budget Offices March 2012 baseline16

    budget for the purpose of enforcing sections17

    302 and 311 of the Congressional Budget Act18

    of 1974.19

    (c) SENATE PAY-AS-YOU-GO SCORECARD.20

    (1) Effective on the date of enactment of this21

    section, for the purpose of enforcing section 201 of22

    S. Con. Res. 21 (110th Congress), the Chairman of23

    the Senate Committee on the Budget shall reduce24

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    any balances of direct spending and revenues for any1

    fiscal year to 0 (zero).2

    (2) Not later than April 15, 2012, for the pur-3

    pose of enforcing section 201 of S. Con. Res. 214

    (110th Congress), the Chairman of the Senate Com-5

    mittee on the Budget shall reduce any balances of6

    direct spending and revenues for any fiscal year to7

    0 (zero).8

    (3) Upon resetting the Senate paygo scorecard9

    pursuant to paragraph (2), the Chairman shall pub-10

    lish a notification of such action in the Congres-11

    sional Record.12

    (d) FURTHERADJUSTMENTS.13

    (1) The Chairman of the Committee on the14

    Budget of the Senate may revise any allocations, ag-15

    gregates, or levels set pursuant to this section to ac-16

    count for any subsequent adjustments to discre-17

    tionary spending limits made pursuant to this Act.18

    (2) With respect to any allocations, aggregates,19

    or levels set or adjustments made pursuant to this20

    section, sections 412 through 414 of S. Con. Res. 1321

    (111th Congress) shall remain in effect.22

    (e) EXPIRATION.23

    (1) Subections (a)(1), (b)(1), and (c)(1) shall24

    expire if a concurrent resolution on the budget for25

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    is in order and not debatable. An amendment to, or a mo-1

    tion to postpone, or a motion to proceed to the consider-2

    ation of other business, or a motion to recommit the joint3

    resolution is not in order. Any debatable motion or appeal4

    is debatable for not to exceed 1 hour, to be divided equally5

    between those favoring and those opposing the motion or6

    appeal. All time used for consideration of the joint resolu-7

    tion, including time used for quorum calls and voting,8

    shall be counted against the total 20 hours of consider-9

    ation.10

    (3) If the Senate has voted to proceed to a joint reso-11

    lution, the vote on passage of the joint resolution shall12

    be taken on or before the close of the seventh session day13

    after such joint resolution has been reported or discharged14

    or immediately following the conclusion of consideration15

    of the joint resolution, and a single quorum call at the16

    conclusion of the debate if requested in accordance with17

    the rules of the Senate.18

    TITLE IIIDEBT CEILING19

    DISAPPROVAL PROCESS20

    SEC. 301. DEBT CEILING DISAPPROVAL PROCESS.21

    (a) IN GENERAL.Subchapter I of chapter 31 of22

    subtitle III of title 31, United States Code, is amended23

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    guage provided in subsection (b)(2). If the time1

    for disapproval has lapsed without enactment of2

    a joint resolution of disapproval under this sec-3

    tion, the debt limit is increased by the amount4

    authorized under subparagraph (A).5

    (b) JOINT RESOLUTION OF DISAPPROVAL.6

    (1) IN GENERAL.Except for the7

    $400,000,000,000 increase in the debt limit pro-8

    vided by subsection (a)(1)(A), the debt limit may not9

    be raised under this section if, within 50 calendar10

    days after the date on which Congress receives a11

    certification described in subsection (a)(1) or within12

    15 calendar days after Congress receives the certifi-13

    cation described in subsection (a)(2) (regardless of14

    whether Congress is in session), there is enacted into15

    law a joint resolution disapproving the Presidents16

    exercise of authority with respect to such additional17

    amount.18

    (2) CONTENTS OF JOINT RESOLUTION.For19

    the purpose of this section, the term joint resolu-20

    tion means only a joint resolution21

    (A)(i) for the certification described in22

    subsection (a)(1), that is introduced on Sep-23

    tember 6, 7, 8, or 9, 2011 (or, if the Senate24

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    was not in session, the next calendar day on1

    which the Senate is in session); and2

    (ii) for the certification described in3

    subsection (a)(2), that is introduced be-4

    tween the date the certification is received5

    and 3 calendar days after that date;6

    (B) which does not have a preamble;7

    (C) the title of which is only as follows:8

    Joint resolution relating to the disapproval of9

    the Presidents exercise of authority to increase10

    the debt limit, as submitted under section11

    3101A of title 31, United States Code, on12

    llllll (with the blank containing the13

    date of such submission); and14

    (D) the matter after the resolving clause15

    of which is only as follows: That Congress dis-16

    approves of the Presidents exercise of authority17

    to increase the debt limit, as exercised pursuant18

    to the certification under section 3101A(a) of19

    title 31, United States Code..20

    (c) EXPEDITED CONSIDERATION IN HOUSE OF21

    REPRESENTATIVES.22

    (1) RECONVENING.Upon receipt of a certifi-23

    cation described in subsection (a)(2), the Speaker, if24

    the House would otherwise be adjourned, shall notify25

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    the Members of the House that, pursuant to this1

    section, the House shall convene not later than the2

    second calendar day after receipt of such certifi-3

    cation.4

    (2) REPORTING AND DISCHARGE.Any com-5

    mittee of the House of Representatives to which a6

    joint resolution is referred shall report it to the7

    House without amendment not later than 5 calendar8

    days after the date of introduction of a joint resolu-9

    tion described in subsection (a). If a committee fails10

    to report the joint resolution within that period, the11

    committee shall be discharged from further consider-12

    ation of the joint resolution and the joint resolution13

    shall be referred to the appropriate calendar.14

    (3) PROCEEDING TO CONSIDERATION.After15

    each committee authorized to consider a joint resolu-16

    tion reports it to the House or has been discharged17

    from its consideration, it shall be in order, not later18

    than the sixth day after introduction of a joint reso-19

    lution under subsection (a), to move to proceed to20

    consider the joint resolution in the House. All points21

    of order against the motion are waived. Such a mo-22

    tion shall not be in order after the House has dis-23

    posed of a motion to proceed on a joint resolution24

    addressing a particular submission. The previous25

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    question shall be considered as ordered on the mo-1

    tion to its adoption without intervening motion. The2

    motion shall not be debatable. A motion to recon-3

    sider the vote by which the motion is disposed of4

    shall not be in order.5

    (4) CONSIDERATION.The joint resolution6

    shall be considered as read. All points of order7

    against the joint resolution and against its consider-8

    ation are waived. The previous question shall be con-9

    sidered as ordered on the joint resolution to its pas-10

    sage without intervening motion except two hours of11

    debate equally divided and controlled by the pro-12

    ponent and an opponent. A motion to reconsider the13

    vote on passage of the joint resolution shall not be14

    in order.15

    (d) EXPEDITED PROCEDURE IN SENATE.16

    (1) RECONVENING.Upon receipt of a certifi-17

    cation under subsection (a)(2), if the Senate has ad-18

    journed or recessed for more than 2 days, the major-19

    ity leader of the Senate, after consultation with the20

    minority leader of the Senate, shall notify the Mem-21

    bers of the Senate that, pursuant to this section, the22

    Senate shall convene not later than the second cal-23

    endar day after receipt of such message.24

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    (2) PLACEMENT ON CALENDAR.Upon intro-1

    duction in the Senate, the joint resolution shall be2

    immediately placed on the calendar.3

    (3) FLOOR CONSIDERATION.4

    (A) IN GENERAL.Notwithstanding Rule5

    XXII of the Standing Rules of the Senate, it is6

    in order at any time during the period begin-7

    ning on the day after the date on which Con-8

    gress receives a certification under subsection9

    (a) and, for the certification described in sub-10

    section (a)(1), ending on September 14, 2011,11

    and for the certification described in subsection12

    (a)(2), on the 6th day after the date on which13

    Congress receives a certification under sub-14

    section (a) (even though a previous motion to15

    the same effect has been disagreed to) to move16

    to proceed to the consideration of the joint reso-17

    lution, and all points of order against the joint18

    resolution (and against consideration of the19

    joint resolution) are waived. The motion to pro-20

    ceed is not debatable. The motion is not subject21

    to a motion to postpone. A motion to reconsider22

    the vote by which the motion is agreed to or23

    disagreed to shall not be in order. If a motion24

    to proceed to the consideration of the resolution25

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    is agreed to, the joint resolution shall remain1

    the unfinished business until disposed of.2

    (B) CONSIDERATION.Consideration of3

    the joint resolution, and on all debatable mo-4

    tions and appeals in connection therewith, shall5

    be limited to not more than 10 hours, which6

    shall be divided equally between the majority7

    and minority leaders or their designees. A mo-8

    tion further to limit debate is in order and not9

    debatable. An amendment to, or a motion to10

    postpone, or a motion to proceed to the consid-11

    eration of other business, or a motion to recom-12

    mit the joint resolution is not in order.13

    (C) VOTE ON PASSAGE.If the Senate14

    has voted to proceed to a joint resolution, the15

    vote on passage of the joint resolution shall16

    occur immediately following the conclusion of17

    consideration of the joint resolution, and a sin-18

    gle quorum call at the conclusion of the debate19

    if requested in accordance with the rules of the20

    Senate.21

    (D) RULINGS OF THE CHAIR ON PROCE-22

    DURE.Appeals from the decisions of the Chair23

    relating to the application of the rules of the24

    Senate, as the case may be, to the procedure re-25

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    lating to a joint resolution shall be decided1

    without debate.2

    (e) AMENDMENT NOT IN ORDER.A joint resolu-3

    tion of disapproval considered pursuant to this section4

    shall not be subject to amendment in either the House5

    of Representatives or the Senate.6

    (f) COORDINATION WITH ACTION BY OTHER7

    HOUSE.8

    (1) IN GENERAL.If, before passing the joint9

    resolution, one House receives from the other a joint10

    resolution11

    (A) the joint resolution of the other12

    House shall not be referred to a committee; and13

    (B) the procedure in the receiving House14

    shall be the same as if no joint resolution had15

    been received from the other House until the16

    vote on passage, when the joint resolution re-17

    ceived from the other House shall supplant the18

    joint resolution of the receiving House.19

    (2) TREATMENT OF JOINT RESOLUTION OF20

    OTHER HOUSE.If the Senate fails to introduce or21

    consider a joint resolution under this section, the22

    joint resolution of the House shall be entitled to ex-23

    pedited floor procedures under this section.24

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    (3) TREATMENT OF COMPANION MEASURES.1

    If, following passage of the joint resolution in the2

    Senate, the Senate then receives the companion3

    measure from the House of Representatives, the4

    companion measure shall not be debatable.5

    (4) CONSIDERATION AFTER PASSAGE.(A) If6

    Congress passes a joint resolution, the period begin-7

    ning on the date the President is presented with the8

    joint resolution and ending on the date the President9

    signs, allows to become law without his signature, or10

    vetoes and returns the joint resolution (but exclud-11

    ing days when either House is not in session) shall12

    be disregarded in computing the appropriate cal-13

    endar day period described in subsection (b)(1).14

    (B) Debate on a veto message in the Senate15

    under this section shall be 1 hour equally divided be-16

    tween the majority and minority leaders or their des-17

    ignees.18

    (5) VETO OVERRIDE.If within the appro-19

    priate calendar day period described in subsection20

    (b)(1), Congress overrides a veto of the joint resolu-21

    tion with respect to authority exercised pursuant to22

    paragraph (1) or (2) of subsection (a), the limit on23

    debt provided in section 3101(b) shall not be raised,24

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    except for the $400,000,000,000 increase in the1

    limit provided by subsection (a)(1)(A).2

    (6) SEQUESTRATION.(A) If within the 50-3

    calendar day period described in subsection (b)(1),4

    the President signs the joint resolution, the Presi-5

    dent allows the joint resolution to become law with-6

    out his signature, or Congress overrides a veto of the7

    joint resolution with respect to authority exercised8

    pursuant to paragraph (1) of subsection (a), there9

    shall be a sequestration to reduce spending by10

    $400,000,000,000. OMB shall implement the se-11

    questration forthwith.12

    (B) OMB shall implement each half of such13

    sequestration in accordance with section 255, section14

    256, and subsections (c), (d), (e), and (f) of section15

    253 of the Balanced Budget and Emergency Deficit16

    Control Act of 1985, and for the purpose of such17

    implementation the term excess deficit means the18

    amount specified in subparagraph (A).19

    (g) RULES OF HOUSE OF REPRESENTATIVES AND20

    SENATE.This subsection and subsections (b), (c), (d),21

    (e), and (f) (other than paragraph (6)) are enacted by22

    Congress23

    (1) as an exercise of the rulemaking power of24

    the Senate and House of Representatives, respec-25

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    tively, and as such it is deemed a part of the rules1

    of each House, respectively, but applicable only with2

    respect to the procedure to be followed in that3

    House in the case of a joint resolution, and it super-4

    sedes other rules only to the extent that it is incon-5

    sistent with such rules; and6

    (2) with full recognition of the constitutional7

    right of either House to change the rules (so far as8

    relating to the procedure of that House) at any time,9

    in the same manner, and to the same extent as in10

    the case of any other rule of that House..11

    (b) CONFORMING AMENDMENT.The table of sec-12

    tions for chapter 31 of title 31, United States Code, is13

    amended by inserting after the item relating to section14

    3101 the following new item:15

    3101A. Presidential modification of the debt ceiling..

    SEC. 302. ENFORCEMENT OF BUDGET GOAL.16

    (a) IN GENERAL.The Balanced Budget and Emer-17

    gency Deficit Control Act of 1985 is amended by inserting18

    after section 251 the following new section:19

    SEC. 251A. ENFORCEMENT OF BUDGET GOAL.20

    Unless a joint committee bill achieving an amount21

    greater than $1,200,000,000,000 in deficit reduction as22

    provided in section 401(b)(3)(B)(i)(II) of the Budget Con-23

    trol Act of 2011 is enacted by January 15, 2012, the dis-24

    cretionary spending limits listed in section 251(c) shall be25

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    2021 pursuant to section 254(c), OMB shall allocate1

    half of the total reduction calculated pursuant to2

    paragraph (3) for that year to discretionary appro-3

    priations and direct spending accounts within func-4

    tion 050 (defense function) and half to accounts in5

    all other functions (nondefense functions).6

    (5) DEFENSE FUNCTION REDUCTION.OMB7

    shall calculate the reductions to discretionary appro-8

    priations and direct spending for each of fiscal years9

    2013 through 2021 for defense function spending as10

    follows:11

    (A) DISCRETIONARY.OMB shall cal-12

    culate the reduction to discretionary appropria-13

    tions by14

    (i) taking the total reduction for the15

    defense function allocated for that year16

    under paragraph (4);17

    (ii) multiplying by the discretionary18

    spending limit for the revised security cat-19

    egory for that year; and20

    (iii) dividing by the sum of the dis-21

    cretionary spending limit for the security22

    category and OMBs baseline estimate of23

    nonexempt outlays for direct spending pro-24

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    grams within the defense function for that1

    year.2

    (B) DIRECT SPENDING.OMB shall cal-3

    culate the reduction to direct spending by tak-4

    ing the total reduction for the defense function5

    required for that year under paragraph (4) and6

    subtracting the discretionary reduction cal-7

    culated pursuant to subparagraph (A).8

    (6) NONDEFENSE FUNCTION REDUCTION.9

    OMB shall calculate the reduction to discretionary10

    appropriations and to direct spending for each of fis-11

    cal years 2013 through 2021 for programs in non-12

    defense functions as follows:13

    (A) DISCRETIONARY.OMB shall cal-14

    culate the reduction to discretionary appropria-15

    tions by16

    (i) taking the total reduction for17

    nondefense functions allocated for that18

    year under paragraph (4);19

    (ii) multiplying by the discretionary20

    spending limit for the revised nonsecurity21

    category for that year; and22

    (iii) dividing by the sum of the dis-23

    cretionary spending limit for the revised24

    nonsecurity category and OMBs baseline25

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    estimate of nonexempt outlays for direct1

    spending programs in nondefense functions2

    for that year.3

    (B) DIRECT SPENDING.OMB shall cal-4

    culate the reduction to direct spending pro-5

    grams by taking the total reduction for non-6

    defense functions required for that year under7

    paragraph (4) and subtracting the discretionary8

    reduction calculated pursuant to subparagraph9

    (A).10

    (7) IMPLEMENTING DISCRETIONARY REDUC-11

    TIONS.12

    (A) FISCAL YEAR 2013.On January 2,13

    2013, for fiscal year 2013, OMB shall calculate14

    and the President shall order a sequestration,15

    effective upon issuance and under the proce-16

    dures set forth in section 253(f), to reduce each17

    account within the security category or non-18

    security category by a dollar amount calculated19

    by multiplying the baseline level of budgetary20

    resources in that account at that time by a uni-21

    form percentage necessary to achieve22

    (i) for the revised security category,23

    an amount equal to the defense function24

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    discretionary reduction calculated pursuant1

    to paragraph (5); and2

    (ii) for the revised nonsecurity cat-3

    egory, an amount equal to the nondefense4

    function discretionary reduction calculated5

    pursuant to paragraph (6).6

    (B) FISCAL YEARS 2014-2021.On the7

    date of the submission of its sequestration pre-8

    view report for fiscal years 2014 through 20219

    pursuant to section 254(c) for each of fiscal10

    years 2014 through 2021, OMB shall reduce11

    the discretionary spending limit12

    (i) for the revised security category13

    by the amount of the defense function dis-14

    cretionary reduction calculated pursuant to15

    paragraph (5); and16

    (ii) for the revised nonsecurity cat-17

    egory by the amount of the nondefense18

    function discretionary reduction calculated19

    pursuant to paragraph (6).20

    (8) IMPLEMENTING DIRECT SPENDING REDUC-21

    TIONS.On the date specified in paragraph (4) dur-22

    ing each applicable year, OMB shall prepare and the23

    President shall order a sequestration, effective upon24

    issuance, of nonexempt direct spending to achieve25

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    tionary spending limits, a listing of the reductions1

    required for each nonexempt direct spending ac-2

    count, and any other data and explanations that en-3

    hance public understanding of this title and actions4

    taken under it..5

    (b) CONFORMING AMENDMENT.The table of con-6

    tents set forth in section 250(a) of the Balanced Budget7

    and Emergency Deficit Control Act of 1985 is amended8

    by inserting after the item relating to section 251 the fol-9

    lowing:10

    Sec. 251A. Enforcement of budget goal..

    TITLE IVJOINT SELECT COM-11

    MITTEE ON DEFICIT REDUC-12

    TION13

    SEC. 401. ESTABLISHMENT OF JOINT SELECT COMMITTEE.14

    (a) DEFINITIONS.In this title:15

    (1) JOINT COMMITTEE.The term joint com-16

    mittee means the Joint Select Committee on Def-17

    icit Reduction established under subsection (b)(1).18

    (2) JOINT COMMITTEE BILL.The term joint19

    committee bill means a bill consisting of the pro-20

    posed legislative language of the joint committee rec-21

    ommended under subsection (b)(3)(B) and intro-22

    duced under section 402(a).23

    (b) ESTABLISHMENT OF JOINT SELECT COM-24

    MITTEE.25

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    (1) ESTABLISHMENT.There is established a1

    joint select committee of Congress to be known as2

    the Joint Select Committee on Deficit Reduction.3

    (2) GOAL.The goal of the joint committee4

    shall be to reduce the deficit by at least5

    $1,500,000,000,000 over the period of fiscal years6

    2012 to 2021.7

    (3) DUTIES.8

    (A) IN GENERAL.9

    (i) IMPROVING THE SHORT-TERM AND10

    LONG-TERM FISCAL IMBALANCE.The11

    joint committee shall provide recommenda-12

    tions and legislative language that will sig-13

    nificantly improve the short-term and long-14

    term fiscal imbalance of the Federal Gov-15

    ernment.16

    (ii) RECOMMENDATIONS OF COMMIT-17

    TEES.Not later than October 14, 2011,18

    each committee of the House of Represent-19

    atives and the Senate may transmit to the20

    joint committee its recommendations for21

    changes in law to reduce the deficit con-22

    sistent with the goal described in para-23

    graph (2) for the joint committees consid-24

    eration.25

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    joint committee and the proposed legisla-1

    tive language described in clause (i) shall2

    require the approval of a majority of the3

    members of the joint committee.4

    (iii) ADDITIONAL VIEWS.A member5

    of the joint committee who gives notice of6

    an intention to file supplemental, minority,7

    or additional views at the time of final8

    joint committee vote on the approval of the9

    report and legislative language under10

    clause (ii) shall be entitled to 3 calendar11

    days in which to file such views in writing12

    with the staff director of the joint com-13

    mittee. Such views shall then be included14

    in the joint committee report and printed15

    in the same volume, or part thereof, and16

    their inclusion shall be noted on the cover17

    of the report. In the absence of timely no-18

    tice, the joint committee report may be19

    printed and transmitted immediately with-20

    out such views.21

    (iv) TRANSMISSION OF REPORT AND22

    LEGISLATIVE LANGUAGE.If the report23

    and legislative language are approved by24

    the joint committee pursuant to clause (ii),25

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    subject to the rules and regulations of the Sen-1

    ate.2

    (B) EXPENSES.In carrying out its func-3

    tions, the joint committee is authorized to incur4

    expenses in the same manner and under the5

    same conditions as the Joint Economic Com-6

    mittee is authorized by section 11 of Public7

    Law 79304 (15 U.S.C. 1024 (d)).8

    (C) QUORUM.Seven members of the joint9

    committee shall constitute a quorum for pur-10

    poses of voting, meeting, and holding hearings.11

    (D) VOTING.12

    (i) PROXY VOTING.No proxy voting13

    shall be allowed on behalf of the members14

    of the joint committee.15

    (ii) CONGRESSIONAL BUDGET OFFICE16

    ESTIMATES.The Congressional Budget17

    Office shall provide estimates of the legis-18

    lation (as described in paragraph (3)(B))19

    in accordance with sections 308(a) and20

    201(f) of the Congressional Budget Act of21

    1974 (2 U.S.C. 639(a) and22

    601(f))(including estimates of the effect of23

    interest payment on the debt). In addition,24

    the Congressional Budget Office shall pro-25

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    testimony, receive such evidence, and ad-1

    minister such oaths as the joint committee2

    considers advisable.3

    (ii) HEARING PROCEDURES AND RE-4

    SPONSIBILITIES OF CO-CHAIRS.5

    (I) ANNOUNCEMENT.The Co-6

    Chairs of the joint committee shall7

    make a public announcement of the8

    date, place, time, and subject matter9

    of any hearing to be conducted, not10

    less than 7 days in advance of such11

    hearing, unless the Co-Chairs deter-12

    mine that there is good cause to begin13

    such hearing at an earlier date.14

    (II) WRITTEN STATEMENT.A15

    witness appearing before the joint16

    committee shall file a written state-17

    ment of proposed testimony at least 218

    calendar days before the appearance19

    of the witness, unless the requirement20

    is waived by the Co-Chairs, following21

    their determination that there is good22

    cause for failure to comply with such23

    requirement.24

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    ferred, for the majority leader of the Senate or the1

    majority leaders designee to move to proceed to the2

    consideration of the joint committee bill. It shall also3

    be in order for any Member of the Senate to move4

    to proceed to the consideration of the joint com-5

    mittee bill at any time after the conclusion of such6

    2-day period. A motion to proceed is in order even7

    though a previous motion to the same effect has8

    been disagreed to. All points of order against the9

    motion to proceed to the joint committee bill are10

    waived. The motion to proceed is not debatable. The11

    motion is not subject to a motion to postpone. A mo-12

    tion to reconsider the vote by which the motion is13

    agreed to or disagreed to shall not be in order. If14

    a motion to proceed to the consideration of the joint15

    committee bill is agreed to, the joint committee bill16

    shall remain the unfinished business until disposed17

    of.18

    (3) CONSIDERATION.All points of order19

    against the joint committee bill and against consid-20

    eration of the joint committee bill are waived. Con-21

    sideration of the joint committee bill and of all de-22

    batable motions and appeals in connection therewith23

    shall not exceed a total of 30 hours which shall be24

    divided equally between the Majority and Minority25

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    Leaders or their designees. A motion further to limit1

    debate on the joint committee bill is in order, shall2

    require an affirmative vote of three-fifths of the3

    Members duly chosen and sworn, and is not debat-4

    able. Any debatable motion or appeal is debatable5

    for not to exceed 1 hour, to be divided equally be-6

    tween those favoring and those opposing the motion7

    or appeal. All time used for consideration of the8

    joint committee bill, including time used for quorum9

    calls and voting, shall be counted against the total10

    30 hours of consideration.11

    (4) NO AMENDMENTS.An amendment to the12

    joint committee bill, or a motion to postpone, or a13

    motion to proceed to the consideration of other busi-14

    ness, or a motion to recommit the joint committee15

    bill, is not in order.16

    (5) VOTE ON PASSAGE.If the Senate has17

    voted to proceed to the joint committee bill, the vote18

    on passage of the joint committee bill shall occur im-19

    mediately following the conclusion of the debate on20

    a joint committee bill, and a single quorum call at21

    the conclusion of the debate if requested. The vote22

    on passage of the joint committee bill shall occur not23

    later than December 23, 2011.24

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    (6) RULINGS OF THE CHAIR ON PROCEDURE.1

    Appeals from the decisions of the Chair relating to2

    the application of the rules of the Senate, as the3

    case may be, to the procedure relating to a joint4

    committee bill shall be decided without debate.5

    (d) AMENDMENT.The joint committee bill shall not6

    be subject to amendment in either the House of Rep-7

    resentatives or the Senate.8

    (e) CONSIDERATION BY THE OTHER HOUSE.9

    (1) IN GENERAL.If, before passing the joint10

    committee bill, one House receives from the other a11

    joint committee bill12

    (A) the joint committee bill of the other13

    House shall not be referred to a committee; and14

    (B) the procedure in the receiving House15

    shall be the same as if no joint committee bill16

    had been received from the other House until17

    the vote on passage, when the joint committee18

    bill received from the other House shall sup-19

    plant the joint committee bill of the receiving20

    House.21

    (2) REVENUE MEASURE.This subsection shall22

    not apply to the House of Representatives if the23

    joint committee bill received from the Senate is a24

    revenue measure.25

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    manner, and to the same extent as in the case of1

    any other rule of such House.2

    TITLE VPELL GRANT AND STU-3

    DENT LOAN PROGRAM4

    CHANGES5

    SEC. 501. FEDERAL PELL GRANTS.6

    Section 401(b)(7)(A)(iv) of the Higher Education Act7

    of 1965 (20 U.S.C. 1070a(b)(7)(A)(iv)) is amended8

    (1) in subclause (II), by striking9

    $3,183,000,000 and inserting $13,183,000,000;10

    and11

    (2) in subclause (III), by striking $0 and in-12

    serting $7,000,000,000.13

    SEC. 502. TERMINATION OF AUTHORITY TO MAKE INTER-14

    EST SUBSIDIZED LOANS TO GRADUATE AND15

    PROFESSIONAL STUDENTS.16

    Section 455(a) of the Higher Education Act of 196517

    (20 U.S.C. 1087e(a)) is amended by adding at the end18

    the following new paragraph:19

    (3) TERMINATION OF AUTHORITY TO MAKE20

    INTEREST SUBSIDIZED LOANS TO GRADUATE AND21

    PROFESSIONAL STUDENTS.22

    (A) IN GENERAL.Subject to subpara-23

    graph (B) and notwithstanding any provision of24

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    this part or part B, for any period of instruc-1

    tion beginning on or after July 1, 20122

    (i) a graduate or professional stu-3

    dent shall not be eligible to receive a Fed-4

    eral Direct Stafford loan under this part;5

    and6

    (ii) the maximum annual amount of7

    Federal Direct Unsubsidized Stafford8

    loans such a student may borrow in any9

    academic year (as defined in section10

    481(a)(2)) or its equivalent shall be the11

    maximum annual amount for such student12

    determined under section 428H, plus an13

    amount equal to the amount of Federal14

    Direct Stafford loans the student would15

    have received in the absence of this sub-16

    paragraph.17

    (B) EXCEPTION.Subparagraph (A)18

    shall not apply to an individual enrolled in19

    course work specified in paragraph (3)(B) or20

    (4)(B) of section 484(b)..21

    SEC. 503. TERMINATION OF DIRECT LOAN REPAYMENT IN-22

    CENTIVES.23

    Section 455(b)(8) of the Higher Education Act of24

    1965 (20 U.S.C. 1087e(b)(8)) is amended25

    VerDate 0ct 09 2002 01:15 Aug 01, 2011 Jkt 000000 PO 00000 Frm 00072 Fmt 6652 Sfmt 6201 C:\DOCUME~1\EMVOLB~1\APPLIC~1\SOFTQUAD\XMETAL\5.5\GEN\C\DEBTAugust 1, 2011 (1:15 a.m.)

    F:\P12\DEBT\DEBT_016.XML

    f:\VHLC\080111\080111.005.xml (506476|4)

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