2 U.S.C. § 935 — Calculating a sequestration

Page 289 TITLE 2—THE CONGRESS § 936 1 See References in Text note below. amended provisions set out as a note under section 1396p of Title 42, prior to repeal by Pub. L. 112–240, title VI, § 642(b)(1), Jan. 2, 2013, 126 Stat. 2358. CODIFICATION Section is comprised of section 4 of Pub. L. 111–139. Subsec. (b) of section 4 of Pub. L. 111–139 amended sec- tion 639 of this title. § 934. Annual report and sequestration order (a) Annual report Not later than 14 days (excluding weekends and holidays) after Congress adjourns to end a session, OMB shall make publicly available and cause to be printed in the Federal Register an annual PAYGO report. The report shall include an up-to-date document containing the PAYGO scorecards, a description of any current policy adjustments made under section 933(c) of this title, information about emergency legislation (if any) designated under section 933(g) of this title, information about any sequestration if re- quired by subsection (b), and other data and ex- planations that enhance public understanding of this chapter and actions taken under it. (b) Sequestration order If the annual report issued at the end of a ses- sion of Congress under subsection (a) shows a debit on either PAYGO scorecard for the budget year, OMB shall prepare and the President shall issue and include in that report a sequestration order that, upon issuance, shall reduce budg- etary resources of direct spending programs by enough to offset that debit as prescribed in sec- tion 935 of this title. If there is a debit on both scorecards, the order shall fully offset the larger of the two debits. OMB shall transmit the order and the report to the House of Representatives and the Senate. If the President issues a seques- tration order, the annual report shall contain, for each budget account to be sequestered, esti- mates of the baseline level of budgetary re- sources subject to sequestration, the amount of budgetary resources to be sequestered, and the outlay reductions that will occur in the budget year and the subsequent fiscal year because of that sequestration. (Pub. L. 111–139, title I, § 5, Feb. 12, 2010, 124 Stat. 15.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsec. (a), was in the original ‘‘this title’’, meaning title I of Pub. L. 111–139, Feb. 12, 2010, 124 Stat. 8, which is classified principally to this chapter. For complete classification of title I to the Code, see Short Title note set out under section 931 of this title and Tables. § 935. Calculating a sequestration (a) Reducing nonexempt budgetary resources by a uniform percentage (1) In general OMB shall calculate the uniform percentage by which the budgetary resources of non- exempt direct spending programs are to be se- questered such that the outlay savings result- ing 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 cal- culated under the prior sentence exceeds 4 per- cent, the Medicare programs described in sec- tion 906(d) of this title shall be reduced by 4 percent and the uniform percentage by which the budgetary resources of all other non- exempt direct spending programs are to be se- questered shall be increased, as necessary, so that the sequestration of Medicare and of all other nonexempt direct spending programs to- gether produce the required outlay savings. (2) Programs and activities in unified budget only Subject to the exemptions set forth in sec- tion 11,1 OMB shall determine the uniform per- centage required under paragraph (1) with re- spect to programs and activities contained in the unified budget only. (b) Outlay savings In determining the amount by which a seques- tration offsets a budget-year debit, OMB shall count— (1) the amount by which the sequestration in a crop year of crop support payments, pursu- ant to section 906(j) of this title, reduces out- lays in the budget year and the subsequent fis- cal year; (2) the amount by which the sequestration of Medicare payments in the 12-month period fol- lowing 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 subse- quent fiscal year. (Pub. L. 111–139, title I, § 6, Feb. 12, 2010, 124 Stat. 16.) 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. § 936. Adjustment for current policies (a) Purpose The purpose of this section is to provide for adjustments of estimates of budgetary effects of PAYGO legislation for legislation affecting 4 areas of the budget— (1) payments made under section 1395w–4 of title 42 (referred to in this section as ‘‘Pay- ment for Physicians’ Services’’); (2) the Estate and Gift Tax under subtitle B of title 26; (3) the AMT; and (4) provisions of EGTRRA or JGTRRA that amended title 26 (or provisions in later stat- utes further amending the amendments made by EGTRRA or JGTRRA), other than— (A) the provisions of those 2 Acts that were made permanent by the Pension Pro- tection Act of 2006 (Public Law 109–280);