§935 — Title 2 The Congress | U.S. Code

Summary

OMB must work out one single percentage cut to apply to the budget resources of nonexempt direct spending programs so that the savings match any budget-year debit on the applicable PAYGO scorecard. If that single cut would be more than 4 percent, Medicare programs listed in section 906(d) must be cut by 4 percent and the cut rate for all other nonexempt direct spending programs must be raised as needed so the combined savings meet the target. OMB only counts programs in the unified budget, subject to the exemptions in section 11. When measuring how much the cuts save, OMB counts three kinds of reductions that lower outlays in the budget year and the next fiscal year: cuts in crop support payments made in a crop year; cuts in Medicare payments during the 12-month period after the sequestration order; and cuts to other nonexempt mandatory programs’ budget resources in the budget year.

Title 2, §935

The Congress — Source: USLM XML via OLRC

(a)(1)OMB shall calculate the uniform percentage by which the budgetary resources of nonexempt direct spending programs are to be sequestered such that the outlay savings resulting from that sequestration, as calculated under subsection (b), shall offset the budget-year debit, if any, on the applicable PAYGO scorecard. If the uniform percentage calculated under the prior sentence exceeds 4 percent, the Medicare programs described in section 906(d) of this title shall be reduced by 4 percent and the uniform percentage by which the budgetary resources of all other nonexempt direct spending programs are to be sequestered shall be increased, as necessary, so that the sequestration of Medicare and of all other nonexempt direct spending programs together produce the required outlay savings.

(2)Subject to the exemptions set forth in section 11,11 See References in Text note below. OMB shall determine the uniform percentage required under paragraph (1) with respect to programs and activities contained in the unified budget only.

(b)In determining the amount by which a sequestration offsets a budget-year debit, OMB shall count—

(1)the amount by which the sequestration in a crop year of crop support payments, pursuant to section 906(j) of this title, reduces outlays in the budget year and the subsequent fiscal year;

(2)the amount by which the sequestration of Medicare payments in the 12-month period following the sequestration order, pursuant to section 906(d) of this title, reduces outlays in the budget year and the subsequent fiscal year; and

(3)the amount by which the sequestration in the budget year of the budgetary resources of other nonexempt mandatory programs reduces outlays in the budget year and in the subsequent fiscal year.

Editorial Notes

References in Text

section 11, referred to in subsec. (a)(2), means section 11 of Pub. L. 111–139, which amended section 905 of this title.

§935 Calculating a Sequestration

Summary

Title 2, §935

Notes & Related Subsidiaries

Editorial Notes

References in Text

Citations & Metadata