What This Bill Does
This bill establishes a savings account in the Treasury called the Federal Rainy Day Fund to set aside money for emergencies. The fund would be filled each year with money equal to 2 percent of the previous year's regular government spending. Congress would have to use money from this fund first before spending money from the general Treasury for emergencies.
Who It Affects
The Senate and Congress members are directly affected by the new rules on how they can spend emergency money. All federal agencies and programs that need emergency funding are indirectly affected.
Key Provisions
* A Federal Rainy Day Fund is created in the Treasury where emergency money is stored (Sec. 1(c)(1))
* Starting in fiscal year 2024, Congress must deposit money into the fund equal to 2 percent of the previous year's regular discretionary spending (Sec. 1(c)(2))
* A Senator can raise a point of order (a formal objection) to prevent the fund from being used for non-emergency programs, and if the objection succeeds, that spending provision is removed from the bill (Sec. 1(d)(1))
* A Senator can raise a point of order to prevent Congress from spending money from the general Treasury for emergencies if the Rainy Day Fund still has unspent money available (Sec. 1(d)(2))
* The Comptroller General must submit a report to Congress examining the relationship between emergency, disaster and wildfire spending and recommend changes if needed (Sec. 1(f))
What Changes
The Senate establishes a new procedure where emergency spending must come from the dedicated Federal Rainy Day Fund before other Treasury funds can be used. Senators gain the ability to block emergency spending that doesn't follow these new rules. The old system allowing Congress to automatically increase spending limits for emergencies is eliminated.
Important Definitions
* "Emergency" means any situation where federal help is needed to supplement state and local efforts to save lives, protect property and public health and safety, or prevent or reduce a catastrophe (Sec. 1(a)(2))
* "Discretionary spending limit" has the meaning given in another federal law from 1985 (Sec. 1(a)(1))
* "Previous year's nonemergency discretionary spending" means the regular spending limit from the most recent previous year, not counting any emergency money (Sec. 1(a)(4))
Effective Date
This bill takes effect on the date it becomes law and applies starting with fiscal year 2024 and all years after (Sec. 1(h))
II
118TH CONGRESS
1ST SESSION
S. 718
To establish the Federal Rainy Day Fund to control emergency spending.
IN THE SENATE OF THE UNITED STATES
MARCH 8, 2023
Mr. BRAUN introduced the following bill; which was read twice and referred
to the Committee on the Budget
A BILL
To establish the Federal Rainy Day Fund to control
emergency spending.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. LIMITATIONS ON EMERGENCY SPENDING.
3
(a) DEFINITIONS.—In this section—
4
(1) the term ‘‘discretionary spending limit’’ has
5
the meaning given that term in section 250(c) of the
6
Balanced Budget and Emergency Deficit Control
7
Act of 1985 (2 U.S.C. 900(c));
8
(2) the term ‘‘emergency’’ means any occasion
9
or instance for which Federal assistance is needed to
10
supplement State and local efforts and capabilities
11
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•S 718 IS
to save lives and to protect property and public
1
health and safety, or to lessen or avert the threat of
2
a catastrophe in any part of the United States;
3
(3) the term ‘‘Fund’’ means the Federal Rainy
4
Day Fund established under subsection (c)(1); and
5
(4) the term ‘‘previous year’s nonemergency
6
discretionary spending’’ means the amount of the
7
discretionary spending limit for all categories for the
8
most recent previous fiscal year for which there was
9
a discretionary spending limit, excluding any adjust-
10
ment for the fiscal year for amounts designated as
11
being for an emergency requirement under section
12
251(b)(2)(A)(i) of the Balanced Budget and Emer-
13
gency Deficit Control Act of 1985 (2 U.S.C.
14
901(b)(2)(A)(i)), as in effect on the day before the
15
date of enactment of this Act.
16
(b) SENSE OF THE SENATE.—It is the sense of the
17
Senate that saving for a rainy day should be accompanied
18
by offsets in other programs so that the Federal Govern-
19
ment does not live beyond its means.
20
(c) FEDERAL RAINY DAY FUND.—
21
(1) ESTABLISHMENT.—There is established in
22
the Treasury an account to be known as the ‘‘Fed-
23
eral Rainy Day Fund’’.
24
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•S 718 IS
(2) FUNDING.—For fiscal year 2024 and each
1
fiscal year thereafter, there is authorized to be ap-
2
propriated to the Fund an amount equal to 2 per-
3
cent of the amount of previous year’s nonemergency
4
discretionary spending.
5
(3) AVAILABILITY.—Amounts in the Fund shall
6
remain available until expended, in accordance with
7
subsection (d).
8
(d) USE OF FEDERAL RAINY DAY FUND.—
9
(1) PROHIBITION
ON
USING
FEDERAL
RAINY
10
DAY FUND FOR NONEMERGENCIES.—
11
(A) POINT OF ORDER AGAINST USE FOR
12
NONEMERGENCIES.—
13
(i) IN GENERAL.—In the Senate, it
14
shall not be in order to consider a provi-
15
sion in a bill, joint resolution, motion,
16
amendment,
amendment
between
the
17
Houses, or conference report that appro-
18
priates funds from the Federal Rainy Day
19
Fund for any program, project, or activity
20
that is not an emergency.
21
(ii) POINT OF ORDER SUSTAINED.—If
22
a point of order is made by a Senator
23
against a provision described in clause (i),
24
and the point of order is sustained by the
25
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•S 718 IS
Chair, that provision shall be stricken from
1
the measure and may not be offered as an
2
amendment from the floor.
3
(B) FORM OF THE POINT OF ORDER.—A
4
point of order under subparagraph (A)(i) may
5
be raised by a Senator as provided in section
6
313(e) of the Congressional Budget Act of
7
1974 (2 U.S.C. 644(e)).
8
(C) CONFERENCE
REPORTS.—When the
9
Senate is considering a conference report on, or
10
an amendment between the Houses in relation
11
to, a bill or joint resolution, upon a point of
12
order being made by any Senator pursuant to
13
subparagraph (A)(i), and such point of order
14
being sustained, such material contained in
15
such conference report or House amendment
16
shall be stricken, and the Senate shall proceed
17
to consider the question of whether the Senate
18
shall recede from its amendment and concur
19
with a further amendment, or concur in the
20
House amendment with a further amendment,
21
as the case may be, which further amendment
22
shall consist of only that portion of the con-
23
ference report or House amendment, as the
24
case may be, not so stricken. Any such motion
25
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•S 718 IS
in the Senate shall be debatable. In any case in
1
which such point of order is sustained against
2
a conference report (or Senate amendment de-
3
rived from such conference report by operation
4
of this subparagraph), no further amendment
5
shall be in order.
6
(D) NO WAIVER OR SUSPENSION.—In the
7
Senate, it shall not be in order to move to waive
8
or suspend subparagraph (A).
9
(2) USE
OF
FEDERAL
RAINY
DAY
FUND
10
FIRST.—
11
(A) POINT OF ORDER AGAINST REGULAR
12
APPROPRIATIONS FOR EMERGENCIES.—
13
(i) IN GENERAL.—In the Senate, it
14
shall not be in order to consider a provi-
15
sion in a bill, joint resolution, motion,
16
amendment,
amendment
between
the
17
Houses, or conference report that appro-
18
priates funds from the General Fund of
19
the Treasury for an emergency, unless
20
there are no unobligated funds in the Fed-
21
eral Rainy Day Fund.
22
(ii) POINT OF ORDER SUSTAINED.—If
23
a point of order is made by a Senator
24
against a provision described in clause (i),
25
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•S 718 IS
and the point of order is sustained by the
1
Chair, that provision shall be stricken from
2
the measure and may not be offered as an
3
amendment from the floor.
4
(B) FORM OF THE POINT OF ORDER.—A
5
point of order under subparagraph (A)(i) may
6
be raised by a Senator as provided in section
7
313(e) of the Congressional Budget Act of
8
1974 (2 U.S.C. 644(e)).
9
(C) CONFERENCE
REPORTS.—When the
10
Senate is considering a conference report on, or
11
an amendment between the Houses in relation
12
to, a bill or joint resolution, upon a point of
13
order being made by any Senator pursuant to
14
subparagraph (A)(i), and such point of order
15
being sustained, such material contained in
16
such conference report or House amendment
17
shall be stricken, and the Senate shall proceed
18
to consider the question of whether the Senate
19
shall recede from its amendment and concur
20
with a further amendment, or concur in the
21
House amendment with a further amendment,
22
as the case may be, which further amendment
23
shall consist of only that portion of the con-
24
ference report or House amendment, as the
25
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•S 718 IS
case may be, not so stricken. Any such motion
1
in the Senate shall be debatable. In any case in
2
which such point of order is sustained against
3
a conference report (or Senate amendment de-
4
rived from such conference report by operation
5
of this subparagraph), no further amendment
6
shall be in order.
7
(D) NO WAIVER OR SUSPENSION.—In the
8
Senate, it shall not be in order to move to waive
9
or suspend subparagraph (A).
10
(3) POINT
OF
ORDER
AGAINST
EMERGENCY
11
SPENDING.—Section 314 of the Congressional Budg-
12
et Act of 1974 (2 U.S.C. 645) is amended—
13
(A) in subsection (d)—
14
(i) in paragraph (1), by striking ‘‘con-
15
tains a provision providing new budget au-
16
thority and outlays or reducing revenue,
17
and a designation of such provision as an
18
emergency
requirement
pursuant
to
19
251(b)(2)(A) of the Balanced Budget and
20
Emergency Deficit Control Act of 1985’’
21
and inserting ‘‘contains an appropriation
22
from the Federal Rainy Day Fund for an
23
emergency (as defined in section ll of
24
the lll Act)’’; and
25
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•S 718 IS
(ii) in paragraph (2)(A), by striking
1
‘‘a designation’’ and inserting ‘‘an appro-
2
priation’’; and
3
(B) in subsection (e)—
4
(i) in the subsection heading, by strik-
5
ing ‘‘DESIGNATION’’ and inserting ‘‘AP-
6
PROPRIATION’’;
7
(ii) in paragraph (1), by striking ‘‘an
8
emergency designation in that measure,
9
that provision making such a designation’’
10
and inserting ‘‘a provision containing an
11
appropriation from the Federal Rainy Day
12
Fund for an emergency (as defined in sec-
13
tion ll of the lll Act, that provi-
14
sion’’;
15
(iii) in paragraph (2), by striking
16
‘‘three-fifths’’ each place it appears and in-
17
serting ‘‘two-thirds’’;
18
(iv) by striking paragraph (3); and
19
(v) by redesignating paragraphs (4)
20
and (5) as paragraphs (3) and (4), respec-
21
tively.
22
(e) INCREASED
THRESHOLD
FOR
ALLOCATION
23
POINTS OF ORDER.—Notwithstanding section 904 of the
24
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•S 718 IS
Congressional Budget Act of 1974 (2 U.S.C. 621 note),
1
in the Senate—
2
(1) section 302(f) of the Congressional Budget
3
Act of 1974 (2 U.S.C. 633(f)) may only be waived
4
or suspended upon the affirmative vote of two-thirds
5
of the Members, duly chosen and sworn; and
6
(2) an appeal of the ruling of the Chair on a
7
point of order raised under section 302(f) of the
8
Congressional Budget Act of 1974 (2 U.S.C. 633(f))
9
shall only be sustained upon the affirmative vote of
10
two-thirds of the Members, duly chosen and sworn.
11
(f) GAO STUDY.—The Comptroller General of the
12
United States shall submit to Congress a report assessing
13
the relationship between emergency, disaster, and wildfire
14
spending, which shall include recommendations, if any, to
15
modify the spending that qualifies as emergency spending.
16
(g) REPEAL
OF ADJUSTMENT
FOR EMERGENCY
17
SPENDING.—Section 251(b)(2)(A) of the Balanced Budg-
18
et and Emergency Deficit Control Act of 1985 (2 U.S.C.
19
901(b)(2)(A)) is amended—
20
(1) in the subparagraph heading, by striking
21
‘‘EMERGENCY APPROPRIATIONS; OVERSEAS’’ and in-
22
serting ‘‘OVERSEAS’’;
23
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•S 718 IS
(2) by striking ‘‘that—’’ and all that follows
1
through ‘‘(ii) the Congress’’ and inserting ‘‘that the
2
Congress’’;
3
(3) by striking ‘‘designates,’’ and all that fol-
4
lows through ‘‘the adjustment’’ and inserting ‘‘des-
5
ignates, the adjustment’’; and
6
(4) by striking ‘‘designated as emergency re-
7
quirements or for’’ and inserting ‘‘designated for’’.
8
(h) EFFECTIVE DATE.—This section and the amend-
9
ments made by this section shall—
10
(1) take effect on the date of enactment of this
11
Act; and
12
(2) apply with respect to fiscal year 2024 and
13
each fiscal year thereafter.
14
Æ
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