Sec. 2. Total spending limits
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Section 251 of the Balanced Budget and Emergency Deficit Control Act of 1985 ( 2 U.S.C. 901 ) is amended to read as follows: OMB shall prepare a report comparing projected total spending under section 257 and the total spending limits in subsection (c), and include such report in the budget as submitted by the President annually under section 1105(a) of title 31, United States Code. CBO shall prepare a report comparing projected total spending under section 257 and the total spending limits in subsection (c), and include such report in the CBO annual baseline and reestimate of the President’s budget.
Reports prepared pursuant to this subsection shall be included in a spending reduction order issued under subsection (b). Within 15 calendar days after Congress adjourns to end a session, if in its final sequestration report OMB estimates that any sequestration is required, there shall be a spending reduction order under section 254(f)(4). Subject to paragraph (3), each non-exempt budget account shall be reduced by a dollar amount calculated by multiplying the enacted level of sequestrable budgetary resources in that account at that time by the uniform percentage necessary to achieve the required automatic spending reduction.
No budget account shall be subject to a spending reduction of more than 5 percent of the budgetary resources of the budget account. The total spending limit for each fiscal year shall be as follows: Fiscal year 2024: 20.7 percent of potential GDP. Fiscal year 2025: 20.3 percent of potential GDP. Fiscal year 2026: 19.8 percent of potential GDP. Fiscal year 2027: 19.4 percent of potential GDP. Fiscal year 2028: 19.1 percent of potential GDP. Fiscal year 2029: 18.8 percent of potential GDP.
Fiscal year 2030: 18.4 percent of potential GDP. Fiscal year 2031: 18.1 percent of potential GDP. Fiscal year 2032: 17.8 percent of potential GDP. Fiscal year 2033 and subsequent fiscal years: 17.5 percent of potential GDP. The amount determined under subsection
(c)with respect to each fiscal year shall be reduced by an amount equal to the amount of the unfunded direct costs with respect to such fiscal year of Federal mandates (as such terms are defined in section 421 of the Congressional Budget Act of 1974 ( 2 U.S.C. 658 )) enacted after the date of the enactment of the Maximizing America’s Prosperity Act of 2023 . Such amount shall not be treated as being less than zero with respect to any fiscal year. . Section 250(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 ( 2 U.S.C. 900(c) ) is amended— in paragraph (1), by striking and ; discretionary spending limit shall mean the amounts specified in section 251 of this Act in paragraph (4), by striking subparagraph (F); and by adding at the end the following: The term total spending means all budget authority and outlays of the Government excluding net interest. The term total spending limit means the maximum permissible total spending of the Government set forth as a percentage of estimated potential GDP specified in section 251(c). The term potential GDP means the gross domestic product that would occur if the economy were at full employment, not exceeding the employment level at which inflation would accelerate. . Part C of the Balanced Budget and Emergency Deficit Control Act of 1985 ( 2 U.S.C. 900 et seq. ) is amended— in section 254 ( 2 U.S.C. 904 )— in subsection (a), in the table, by inserting and spending reduction after sequestration each place it appears; in subsection (c)— in the subsection heading, by inserting after and spending reduction ; Sequestration in paragraph (1), by striking discretionary, pay-as-you-go, and deficit sequestration and inserting pay-as-you-go and deficit sequestration and regarding spending reduction ; and by striking paragraph
(2)and inserting the following: The preview reports shall set forth for the budget year estimates for each of the following: Estimated total spending. Estimate of potential GDP. The spending reduction necessary to comply with the total spending limit under section 251(c). ; in subsection (e)— in the subsection heading, by inserting after and spending reduction ; and Sequestration by inserting and spending reduction after sequestration each place it appears; in subsection (f)— in the subsection heading, by inserting after and spending reduction ; Sequestration in paragraph (1), by inserting and spending reduction after sequestration ; by striking paragraph (2); by redesignating paragraphs (3), (4), and
(5)as paragraphs (2), (3), and (4), respectively; and in paragraph (2), as so redesignated— in the heading, by inserting before and spending reduction ; reports in the first sentence, by inserting spending reduction report after preview reports ; and by striking the second sentence and inserting the following: In addition, these reports shall contain, for the budget year, for each account to be sequestered or subject to a spending reduction, as the case may be, estimates of the baseline level of sequestrable or reducible budgetary resources and resulting outlays and the amount of budgetary resources to be sequestered or reduced and resulting outlay reductions. ; in paragraph (3), as so redesignated— in the first sentence, by inserting estimated total spending, estimate of potential GDP, after any breach, ; and in the second sentence, by striking sequesterable and inserting sequestrable or reducible ; and in paragraph (4), as so redesignated— by inserting or spending reduction after final sequestration ; by inserting or spending reduction before is required ; and by inserting or spending reductions, as the case may be, after sequestrations ; and in subsection (g), in the first sentence, by inserting or requires a spending reduction after causes a breach ; in section 257(a) ( 2 U.S.C. 907(a) ), by inserting total spending, after outlays, ; and in section 258C(a)(1) ( 2 U.S.C. 907d(a)(1) )— by inserting or spending reduction after sequestration each place the term appears; and by striking 252 or 253 and inserting 251, 252, or 253 . The table of contents in section 250(a) of the Balanced Budget and Emergency Deficit Control Act of 1985 ( 2 U.S.C. 900(a) ) is amended by striking the item relating to section 251 and inserting the following: Sec. 251. Total spending limits. .
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