2 U.S.C. § 900 — Statement of budget enforcement through sequestration; definitions

**(a) Omitted** **(b) General statement of budget enforcement through sequestration** This subchapter provides for budget enforcement as called for in House Concurrent Resolution 84 (105th Congress, 1st session). **(c) Definitions** As used in this subchapter: (1) The terms “budget authority”, “new budget authority”, “outlays”, and “deficit” have the meanings given to such terms in section 3 of the Congressional Budget and Impoundment Control Act of 1974 [[2 U.S.C. 622](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title2-section622&num=0&edition=prelim)] and “discretionary spending limit” shall mean the amounts specified in [section 901 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title2-section901&num=0&edition=prelim). (2) The terms “sequester” and “sequestration” refer to or mean the cancellation of budgetary resources provided by discretionary appropriations or direct spending law. (3) The term “breach” means, for any fiscal year, the amount (if any) by which new budget authority or outlays for that year (within a category of discretionary appropriations) is above that category’s discretionary spending limit for new budget authority or outlays for that year, as the case may be. (4) (A) The term “nonsecurity category” means all discretionary appropriations not included in the security category defined in subparagraph (B). (B) The term “security category” includes discretionary appropriations associated with agency budgets for the Department of Defense, the Department of Homeland Security, the Department of Veterans Affairs, the National Nuclear Security Administration, the intelligence community management account (95–0401–0–1–054), and all budget accounts in budget function 150 (international affairs). (C) The term “discretionary category” includes all discretionary appropriations. (D) The term “revised security category” means discretionary appropriations in budget function 050. (E) The term “revised nonsecurity category” means discretionary appropriations other than in budget function 050. (F) The term “category” means the subsets of discretionary appropriations in [section 901(c) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title2-section901/c&num=0&edition=prelim). Discretionary appropriations in each of the categories shall be those designated in the joint explanatory statement accompanying the conference report on the Balanced Budget Act of 1997. New accounts or activities shall be categorized only after consultation with the Committees on Appropriations and the Budget of the House of Representatives and the Senate and that consultation shall, to the extent practicable, include written communication to such committees that affords such committees the opportunity to comment before official action is taken with respect to new accounts or activities. (5) The term “baseline” means the projection (described in [section 907 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title2-section907&num=0&edition=prelim)) of current-year levels of new budget authority, outlays, receipts, and the surplus or deficit into the budget year and the outyears. (6) The term “budgetary resources” means new budget authority, unobligated balances, direct spending authority, and obligation limitations. (7) The term “discretionary appropriations” means budgetary resources (except to fund direct-spending programs) provided in appropriation Acts. (8) The term “direct spending” means— (A) budget authority provided by law other than appropriation Acts; (B) entitlement authority; and (C) the Supplemental Nutrition Assistance Program. (9) The term “current” means, with respect to OMB estimates included with a budget submission under [section 1105(a) of title 31](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section1105/a&num=0&edition=prelim), the estimates consistent with the economic and technical assumptions underlying that budget and with respect to estimates made after that budget submission that are not included with it, estimates consistent with the economic and technical assumptions underlying the most recently submitted President’s budget. (10) The term “real economic growth”, with respect to any fiscal year, means the growth in the gross national product during such fiscal year, adjusted for inflation, consistent with Department of Commerce definitions. (11) The term “account” means an item for which appropriations are made in any appropriation Act and, for items not provided for in appropriation Acts, such term means an item for which there is a designated budget account identification code number in the President’s budget. (12) The term “budget year” means, with respect to a session of Congress, the fiscal year of the Government that starts on October 1 of the calendar year in which that session begins. (13) The term “current year” means, with respect to a budget year, the fiscal year that immediately precedes that budget year. (14) The term “outyear” means a fiscal year one or more years after the budget year. (15) The term “OMB” means the Director of the Office of Management and Budget. (16) The term “CBO” means the Director of the Congressional Budget Office. (17) As used in this subchapter, all references to entitlement authority shall include the list of mandatory appropriations included in the joint explanatory statement of managers accompanying the conference report on the Balanced Budget Act of 1997. (18) The term “deposit insurance” refers to the expenses of the Federal deposit insurance agencies, and other Federal agencies supervising insured depository institutions, resulting from full funding of, and continuation of, the deposit insurance guarantee commitment in effect under current estimates. (19) The term “asset sale” means the sale to the public of any asset (except for those assets covered by title V of the Congressional Budget Act of 1974 [[2 U.S.C. 661](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title2-section661&num=0&edition=prelim) et seq.]), whether physical or financial, owned in whole or in part by the United States. (20) The term “emergency” means a situation that— (A) requires new budget authority and outlays (or new budget authority and the outlays flowing therefrom) for the prevention or mitigation of, or response to, loss of life or property, or a threat to national security; and (B) is unanticipated. (21) The term “unanticipated” means that the underlying situation is— (A) sudden, which means quickly coming into being or not building up over time; (B) urgent, which means a pressing and compelling need requiring immediate action; (C) unforeseen, which means not predicted or anticipated as an emerging need; and (D) temporary, which means not of a permanent duration.