To reduce Federal spending in a responsible manner.
IN THE SENATE OF THE UNITED STATES
February 1, 2011
Mr. CORKER (for himself, Mrs. MCCASKILL, Mr. BURR, Mr. MCCAIN, Mr.
ALEXANDER, Mr. ISAKSON, Mr. CHAMBLISS, Mr. INHOFE, and Mr. KIRK) introduced
the following bill; which was read twice and referred to the Committee
on the Budget
To reduce Federal spending in a responsible manner.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Commitment to American Prosperity Act
of 2011' or the `CAP Act of 2011'.
SEC. 2. FINDINGS.
Congress finds the following:
(1) This Act is authorized by the United States Constitution under
clause 1 of section 8 of article I, relating to the power of the Congress
to tax and spend.
(2) Should an amendment to the United States Constitution be adopted
and ratified by the States setting a lower limitation on outlays than
provided in this Act, it is appropriate for Congress to consider legislation
immediately modifying maximum outlay amounts in this Act.
(3) Total Federal outlays have averaged 20.6 percent of gross domestic
product over the past 40 years.
(4) Total Federal outlays in fiscal year 2010 were 23.8 percent of
gross domestic product.
(5) Total Federal outlays in fiscal year 2020 are projected to be
25.9 percent of gross domestic product according to the Congressional
Budget Office's Alternative Fiscal Scenario.
(6) It is appropriate and necessary to put total Federal outlays under
a limitation, as a percent of gross domestic product, such that a
downward glide path ultimately brings spending in line with historical
SEC. 3. OUTLAYS EXCEEDING THE GDP OUTLAY LIMIT.
(a) Definitions- Section 250(c)(4) of the Balanced Budget and Emergency
Deficit Control Act of 1985 is amended by striking paragraph (4), redesignating
the succeeding paragraphs accordingly, and adding the following paragraphs:
`(19) The term `GDP', for any fiscal year, means the gross domestic
product during such fiscal year consistent with Department of Commerce
`(20)(A) The term `emergency requirement' means any provision that
provides new budget authority and resulting outlays for a situation
that poses a threat to life, property, or national security and is--
`(i) sudden, quickly coming into being, and not building up over
`(ii) an urgent, pressing, and compelling need requiring immediate
`(iii) unforeseen, unpredictable, and unanticipated; and
`(iv) not permanent, temporary in nature.
`(B) An emergency that is part of an aggregate level of anticipated
emergencies, particularly when normally estimated in advance, is not
`(21) The term `target fiscal year' means the fiscal year in which
a GDP outlay limit is in effect under section 253A.'.
(b) Caps- The Balanced Budget and Emergency Deficit Control Act of 1985
is amended by inserting after section 253 the following:
`SEC. 253A. ENFORCING GDP OUTLAY LIMITS.
`(a) Enforcing GDP Outlay Limits- In this section, the term `GDP outlay
limit' means an amount, as estimated by OMB, equal to--
`(1) the average GDP for the first 3 of the 4 fiscal years preceding
the target fiscal year (fiscal year 2009, fiscal year 2010 and fiscal
year 2011 for target year fiscal year 2013, and so on); multiplied
`(2)(A) 25 percent for fiscal year 2013; and
`(B) for fiscal years 2014 through 2022, 25 percent minus 0.1711 percent
accumulating for each fiscal year (25 percent minus .1711 percent
in fiscal year 2014, 25 percent minus .3422 percent in fiscal year
2015, and so on).
`(b) GDP Outlay Limit and Outlays-
`(1) DETERMINING THE GDP OUTLAY LIMIT- The Office of Management and
Budget shall estimate the GDP outlay limit for the target fiscal year
at the outset of the previous fiscal year, on April 30, on August
20, and 15 days after the conclusion of the fiscal year. CBO shall
provide advisory reports calculating the GDP outlay limit at identical
`(2) TOTAL FEDERAL OUTLAYS- In this section, total Federal outlays
shall include all on-budget and off-budget outlays.
`(A) EXCESS SPENDING- Not later than 45 calendar days after the
beginning of a fiscal year, OMB shall conduct a sequestration to
eliminate the excess outlay amount.
`(B) DEFINITION- For purposes of this subsection, the term `excess
outlay amount' means the amount by which total Federal outlays for
a fiscal year exceed the GDP outlay limit as adjusted pursuant to
`(2) PREVIEW REPORT- CBO shall submit an advisory sequestration preview
report as described in section 254(c)(4) on August 10 of each year.
OMB shall produce an sequestration preview report on August 20 as
described in section 254(c)(4). Fifteen days after the fiscal year
begins, OMB shall issue an updated sequestration report as described
in section 254(e). Thirty days later, the OMB should issue its final
sequestration report as described in section 254(f)(3). It shall be
accompanied by a Presidential order detailing the uniform spending
reductions. The reductions should generally follow the process set
forth in section 253 and 254, except as provided in this section.
`(3) CONGRESSIONAL ACTION- If the August 20 OMB report projects a
sequestration, the Senate and House Budget Committees may report a
resolution directing their committees to change the existing law to
achieve the goals outlined in the August 20 report.
`(4) REDUCING NONEXEMPT BUDGETARY RESOURCES BY A PROPORTIONAL PERCENTAGE-
`(A) CALCULATION- OMB shall calculate the increase in outlays attributable
to each of the 3 categories described in subparagraph (B) such that
the outlay savings resulting from sequestration, as calculated under
this subsection, eliminate excess outlays.
`(B) CATEGORIES- The 3 categories are as follows:
`(i) Direct spending (social security, medicare, and other such
`(ii) Discretionary security spending.
`(iii) Discretionary non-security spending.
`(C) REDUCTIONS PROPORTIONAL- The percentage reductions for each
category described in subparagraph (B) shall be in proportion to
the growth in outlays in such category from the previous fiscal
`(D) UNIFORM REDUCTION WITHIN CATEGORIES- To achieve the percent
reduction within a category under subparagraph (C), a uniform reduction
will occur across all programs within that category to achieve the
percent reduction required for that category.
`(E) PRO RATA BASIS- If legislation funding the Government does
not reflect funding amounts for the entire fiscal year, sequestration
required by this section shall be done on a pro rata basis. If legislation
funding the Government for the remainder of a fiscal year is enacted,
the total sequestration required in a fiscal year shall total the
necessary level which may be undertaken in a single step or in a
sequence of steps.
`(d) Exceptions- Total Federal outlays may exceed the GDP outlay limit
if during the fiscal year the excess amount is being paid to reduce
the public debt or the public debt is zero.
`(e) No Exempt Programs- Section 255 shall not apply to this section,
except that payments for net interest (budget function 900) shall be
`(f) Look Back- If, after November 15, a bill resulting in outlays for
the fiscal year in progress is enacted that causes excess outlays, the
excess outlays for the next fiscal year shall be increased by the amount
or amounts of that breach.'.
(c) BBEDCA- Notwithstanding section 275 of the Balanced Budget and Emergency
Deficit Control Act of 1985, the relevant provisions of such Act shall
apply to the extent necessary to enforce this Act, including amendments
made by this Act.
(d) Effective Date- This section shall apply beginning in fiscal year
2013 and beyond, including any reports and calculations required for
implementation in fiscal year 2013.
SEC. 4. ENFORCEMENT PROCEDURES UNDER THE CONGRESSIONAL BUDGET ACT
(a) Enforcement- Title III of the Congressional Budget Act of 1974 is
amended by adding after section 315 the following:
`SEC. 316. ENFORCEMENT PROCEDURES.
`(a) GDP Outlay Limits- It shall not be in order in the House of Representatives
or the Senate to consider any bill, joint resolution, amendment, or
conference report that includes any provision that would cause the most
recently reported, current GDP outlay limits set forth in section 253A
of the Balanced Budget and Emergency Deficit Control Act of 1985 to
`(b) Waiver or Suspension-
`(1) IN THE SENATE- The provisions of this section may be waived or
suspended in the Senate only by the affirmative vote of two-thirds
of the Members, present and voting.
`(2) IN THE HOUSE- The provisions of this section may be waived or
suspended in the House of Representatives only by a rule or order
proposing only to waive such provisions by an affirmative vote of
two-thirds of the Members, present and voting.
`(c) Point of Order Protection- In the House, it shall not be in order
to consider a rule or order that waives the application of paragraph
(2) of subsection (b).
`(d) Motion to Suspend- It shall not be in order for the Speaker to
entertain a motion to suspend the application of this section under
clause 1 of rule XV.'.
(b) Table of Contents- The table of contents in section 1(b) of the
Congressional Budget and Impoundment Control Act of 1974 is amended
by inserting after the item relating to section 315 the following:
`Sec. 316. Enforcement procedures.'.