Spending Safeguard Act

I 116TH CONGRESS 1ST SESSION H. R. 2516 To establish a direct spending safeguard limitation on any direct spending program without a specific level of authorized spending, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MAY 3, 2019 Ms. FOXX of North Carolina (for herself and Mr. WOODALL) introduced the following bill; which was referred to the Committee on the Budget A BILL To establish a direct spending safeguard limitation on any direct spending program without a specific level of au- thorized spending, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Spending Safeguard 4 Act’’. 5 SEC. 2. SPENDING LIMITATION ON DIRECT SPENDING PRO- 6 GRAMS. 7 (a) ESTABLISHMENT OF SPENDING SAFEGUARD 8 LIMITATION.— 9 VerDate Sep 11 2014 02:44 May 09, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2516.IH H2516 pamtmann on DSKBFK8HB2PROD with BILLS 2 •HR 2516 IH (1) IN GENERAL.—The Director of the Office of 1 Management and Budget shall establish a spending 2 limitation (in this Act referred to as a ‘‘spending 3 safeguard limitation’’) with respect to any direct 4 spending program not later than 90 days after any 5 such program is enacted or reauthorized (as the case 6 may be). 7 (2) DETERMINATION OF SPENDING SAFEGUARD 8 LIMITATION.—The spending safeguard limitation es- 9 tablished under paragraph (1) for a direct spending 10 program shall be equal to— 11 (A) with respect to any such program 12 within budget function 050 (Defense), 550 13 (Health), 570 (Medicare), 600 (Income Secu- 14 rity), 650 (Social Security), or 700 (Veterans 15 Benefits and Services), 120 percent of the cost 16 of the program; and 17 (B) with respect to any such program 18 within any other budget function, 110 percent 19 of the cost of the program. 20 (3) DETERMINATION OF COST OF PROGRAM.— 21 For purposes of paragraphs (2)(A) and (B), the cost 22 of the program shall be the estimated six-year cost 23 of the program, as determined by the Director using 24 the scorecards or estimate (as the case may be) ap- 25 VerDate Sep 11 2014 02:44 May 09, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2516.IH H2516 pamtmann on DSKBFK8HB2PROD with BILLS 3 •HR 2516 IH plicable to the program under section 4 of the Statu- 1 tory Pay-As-You-Go Act of 2010 (2 U.S.C. 933). 2 (b) SPENDING SAFEGUARD LIMITATION SCORE- 3 CARDS.— 4 (1) IN GENERAL.—The Director shall maintain 5 and make publicly available a spending safeguard 6 limitation scorecard displaying the spending level for 7 any direct spending program that is subject to a 8 spending safeguard limitation pursuant to this Act. 9 (2) MONTHLY COSTS.—Not later than 7 days 10 after the end of each month beginning after the first 11 full month in which such a direct spending program 12 is operational, the Secretary of the Treasury shall 13 transmit to the Director a report listing the total 14 amount of spending for any direct spending program 15 listed on the scorecard. 16 (3) OMB BIANNUAL REPORT.—After the end of 17 any six-month period, the Director shall submit a re- 18 port to the Committees on the Budget of the House 19 of Representatives and the Senate containing the 20 total level of spending for any such direct spending 21 program and the relation between such level and the 22 spending safeguard limitation applicable to such pro- 23 gram. 24 (c) PRESIDENT BUDGET SUBMISSIONS.— 25 VerDate Sep 11 2014 02:44 May 09, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2516.IH H2516 pamtmann on DSKBFK8HB2PROD with BILLS 4 •HR 2516 IH (1) ANNUAL.—Section 1105(a) of title 31, 1 United States Code, is amended by adding at the 2 end the following: 3 ‘‘(40) a report on the total level of spending for 4 any direct spending program subject to a spending 5 safeguard limitation pursuant to the Spending Safe- 6 guard Act, and the relation between such level and 7 the spending safeguard limitation applicable to such 8 program.’’. 9 (2) MID-SESSION.—Section 1106(a)(1)(C) of 10 such title is amended by striking ‘‘section 11 1105(a)(8) and (9)(B) and (C)’’ and inserting ‘‘sec- 12 tion 1105(a)(8), (9) (B) and (C), and (40)’’. 13 (d) PROCEDURES IN CASE OF BREACH.— 14 (1) SPENDING LIMITATION BREACH REPORT.— 15 If, during any of the six years used to determine the 16 cost of a direct spending program pursuant to sub- 17 section (a)(3), the Director determines, using the re- 18 ports submitted under subsection (b)(2), that a di- 19 rect spending program listed on the scorecard estab- 20 lished under subsection (b) will reach the applicable 21 spending safeguard limitation within six months, the 22 Director shall transmit, not later than 15 days after 23 the date of such determination, a report to the Com- 24 mittees on the Budget of the House of Representa- 25 VerDate Sep 11 2014 02:44 May 09, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2516.IH H2516 pamtmann on DSKBFK8HB2PROD with BILLS 5 •HR 2516 IH tives and the Senate and the committees that have 1 jurisdiction over the program. 2 (2) OBLIGATION LIMITATION.—If, during any 3 of such six years, the Director determines using the 4 reports submitted under subsection (b)(2) that such 5 a direct spending program has reached the applica- 6 ble spending safeguard limitation— 7 (A) effective 30 days after such determina- 8 tion, no funds may be obligated to carry out 9 such program; and 10 (B) on the date of such determination, the 11 Director shall submit a report to the Commit- 12 tees on the Budget of the House of Representa- 13 tives and the Senate and the committees that 14 have jurisdiction over the program that such an 15 obligation limitation has been imposed. 16 (e) AGENCY PROCEDURES.—Any Federal agency im- 17 plementing a direct spending program listed on the score- 18 card established under subsection (b) shall ensure that any 19 contract, offer of benefits, or other material provided to 20 the program participants includes information specifying 21 that the program is subject to a spending safeguard limi- 22 tation that may impact future availability of funds to pay 23 benefits. 24 (f) DEFINITIONS.—In this Act— 25 VerDate Sep 11 2014 02:44 May 09, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2516.IH H2516 pamtmann on DSKBFK8HB2PROD with BILLS 6 •HR 2516 IH (1) the term ‘‘Director’’ means the Director of 1 the Office of Management and Budget; 2 (2) the term ‘‘direct spending’’ has the meaning 3 given such term in section 250(c)(8) of the Balanced 4 Budget and Emergency Deficit Control Act of 1985 5 (2 U.S.C. 900(c)(8)); and 6 (3) the term ‘‘direct spending program’’ means 7 any Federal program funded by direct spending 8 that— 9 (A) is enacted or reauthorized after the 10 date of enactment of this Act; and 11 (B) does not have, in statute, a specific 12 level (expressed as a dollar amount) of author- 13 ization of appropriations. 14 (g) PROHIBITION ON NEW AUTHORIZATION OF 15 FUNDING.—No additional funds are authorized to be ap- 16 propriated to carry out this Act. 17 Æ VerDate Sep 11 2014 02:44 May 09, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\H2516.IH H2516 pamtmann on DSKBFK8HB2PROD with BILLS