RESCISSION OF BUDGET AUTHORITY 952 SEC. 1012. (a) TRANSMITTAL OF SPECIAL MESSAGE. Whenever the President determines that all or part of any budget authority" will not be required to carry out the full objective or scope of programs for which it is provided or that such budget authority should be rescinded for fiscal policy or other reasons (including the termination of authorized projects or activities for which budget authority has been provided), or whenever all or part of budget authority provided for only one fiscal year is to be reserved from obligation for such fiscal year, the President shall transmit to both Houses of Congress a special message specifying - (1) the amount of budget authority which he proposes to be rescinded or which is to be so reserved; (2) any account, department, or establishment of the Government to which such budget authority is available for obligation, and the specific project or governmental functions involved; (3) the reasons why the budget authority should be rescinded or is to be so reserved; (4) to the maximum extent practicable, the estimated fiscal, economic, and budgetary effect of the proposed rescission or of the reservation; and (5) all facts, circumstances, and considerations relating to or bearing upon the proposed rescission or the reservation and the decision to effect the proposed rescission or the reservation, and to the maximum extent practicable, the estimated effect of the proposed rescission or the reservation upon the objects, purposes, and programs for which the budget authority is provided. 953 (b) REQUIREMENT TO MAKE AVAILABLE FOR OBLIGATION. -- Any amount of budget authority" proposed to be rescinded or that is to be reserved as set forth in such special message shall be made available for obligation unless, within the prescribed 45day period," the Congress has completed action on a rescission bill955 rescinding all or part of the amount proposed to be rescinded or that is to be reserved.956 Funds made available for 954 953 Section 3(2) defines "budget authority." See supra pp. 11-13. 954 Section 1011(5) defines this 45-day period. See supra p. 310. 955 956 Section 1011(3) defines "rescission bill." See supra p. 310. Several bills introducing in the 101st Congress sought to change what would happen if the Congress failed to act. See S. 6, 101st Cong., 1st Sess., 135 CONG. REC. S206-08 (Jan. 25, 1989) (Sen. Dole, "To grant the power to the President to reduce appropriated funds within ten days after the date of enactment of a bill appropriating such funds"); S. Con. Res. 9, 101st Cong., 1st Sess., 135 CONG. REC. S770-72 (Jan. 25, 1989) (Sen. Humphrey, "Establishing procedures for expedited consideration by the Congress of certain bills and joint resolutions submitted by the President"); S. 21, 101st Cong., 1st Sess., 135 CONG. REC. S283-84 (Jan. 25, 1989) (Sen. Roth, "To provide the President with line-item veto authority); S. 155, 101st Cong., 1st Sess., 135 CONG. REC. $500-01 (Jan. 25, 1989) (Sen. Armstrong, "To amend the Impoundment Control Act of 1974 to provide for enhanced rescission procedures"); S. 207, 101st Cong., 1st Sess., 135 CONG. REC. S614-17 (Jan. 25, 1989) (Sen. Dixon, "To amend the Congressional Budget and Impoundment Control Act of 1974 to require expeditious consideration by the Congress of a proposal by the President to rescind all or part of any item of budget authority if the proposal is transmitted to the Congress on the same day on which the President approves the bill or joint resolution providing such budget authority"); S. 829, 101st Cong., 1st Sess., 135 CONG. REC. S4,18384 (Apr. 18, 1989) (Sen. Roth, "To provide the President with enhanced rescission authority at such time as the debt of the United States Government held by the public exceeds $2,378,000,000,000"); S. 1553, 101st Cong., 1st Sess., 135 CONG. REC. S10,293-96 (Aug. 4, 1989) (Sen. Coats, "To grant the power to the President to reduce budget authority"). The Senate has rejected attempts to change this law. See, e.g., 136 CONG. REC. $7,457-78 (June 6, 1990) (McCain motion to waive point of order under section 306 rejected 43-50 regarding his amendment no. 1995 regarding enhancing the President's obligation under this procedure may not be proposed for rescission again.957 956 (...continued) rescission authority); 135 CONG. REC. S15,336-58 (Nov. 9, 1989) (Coats motion to waive point of order under section 306 rejected 40-51 regarding his amendment no. 1092 regarding enhancing the President's rescission authority). 957 Section 207 of the Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987, entitled "Clarification of Congressional Intent Regarding Rescission Authority," added the sentence "Funds made available for obligation under this procedure may not be proposed for rescission again." Pub. L. No. 100-119, § 207, 101 Stat. 754, 786 (Sept. 29, 1987). The joint statement of mangers accompanying the conference report on that bill explained: Current Law 10. Clarification of Congressional Intent Section 1012(b) of the 1974 Impoundment Control Act empowers the President to withhold spending appropriated funds during a period of 45 days of continuous session while Congress considers a rescission proposal. Under General Accounting Office interpretations which allow preparation time for the submittal message, and because certain days are not counted as days of continuous session, rescission proposals sometimes result in appropriated funds being withheld for up to 75 or more calendar days. Seriatim proposals covering the same subject matter have the effect of extending indefinitely the period of unavailability. Senate Amendment The Senate amendment (Section 230) adds language to Section 1012(b) to prohibit the Executive practice of submitting seriatim rescission messages covering similar matter when Congress fails to act on such proposals within the statutory 45-day period. The Senate amendment limits the Executive to one rescission proposal in any year regarding substantially the same budget authority. Conference Agreement The conference agreement amends Section 1012(b) of the Impoundment Control Act of 1974 to prohibit proposals to rescind budget authority which were the object of a previous rescission proposal not accepted by Congress. The conferees intend that the President be allowed to propose one rescission for any given activity. If the rescission proposal for that activity is not agreed to by Congress, no further rescission proposal for that activity would be allowed during the availability of that appropriation. The conference agreement is not meant to diminish the restriction on the Executive from the Senate amendment. The conferees intend that the PROPOSED DEFERRALS OF BUDGET AUTHORITY958 SEC. 1013. (a) TRANSMITTAL OF Special Message. -- Whenever the President, the Director of the Office of Management and Budget, the head of any department or agency of the United States, or any officer or employee of the United States proposes to defer any budget authority"" provided for a specific purpose or project, the President shall transmit to the House of Representatives and the Senate a special message specifying - (1) the amount of the budget authority proposed to be deferred; (2) any account, department, or establishment of the Government to which such budget authority is available for obligation, and the specific projects or governmental functions involved; 957 (...continued) conference agreement will cover cases in which the Executive seeks to rescind The conferees intend that authority granted to the President under this Act regarding the sequestration process shall in no way augment the authority available to him, and the requirements imposed on him, under existing law regarding the deferral or rescission of funds. H.R. CONF. REP. No. 100-313, 100th Cong., 1st Sess. 67-68 (1987), reprinted in 1987 U.S. CODE CONG. & ADMIN. NEWS 739, 767-68. 958 Section 1011(1) defines "deferral of budget authority." See supra p. 309. Section 3(2) defines "budget authority." See supra pp. 11-13. 959 Section 1011(1) defines "deferral of budget authority." See supra p. 309. Section (3) the period of time during which the budget authority is proposed to be deferred; (4) the reasons for the proposed deferral, including any legal authority invoked to justify the proposed deferral; (5) to the maximum extent practicable, the estimated fiscal, economic, and budgetary effect of the proposed deferral; and (6) all facts, circumstances, and considerations relating to or bearing upon the proposed deferral and the decision to effect the proposed deferral, including an analysis of such facts, circumstances, and considerations in terms of their application to any legal authority, including specific elements of legal authority, invoked to justify such proposed deferral, and to the maximum extent practicable, the estimated effect of the proposed deferral upon the objects, purposes, and programs for which the budget authority is provided. A special message may include one or more proposed deferrals of budget authority. A deferral may not be proposed for any period of time extending beyond the end of the fiscal year in which the special message proposing the deferral is transmitted to the House and the Senate. (b) 960 CONSISTENCY WITH LEGISLATIVE POLICY. shall be permissible only (1) to provide for contingencies; (2) to achieve savings made possible by or through 960 Section 206 of the Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987, entitled "Codification of Law Regarding Deferral Authority," revised subsection (b) to read as it currently does. Pub. L. No. 100-119, § 206, 101 Stat. 754, 785-86 (Sept. 29, 1987). Compare the similar provisions of 31 U.S.C. § 1512(c)(1) (1988). For legislative history of the Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987, see infra note 963. |