US Code
SUBCHAPTER I— ELIMINATION OF DEFICITS IN EXCESS OF MAXIMUM DEFICIT AMOUNT
§ 904. Reports and orders

(a) TimetableThe timetable with respect to this subchapter for any budget year is as follows:
Date:Action to be completed:
January 21Notification regarding optional adjustment of maximum deficit amount.
5 days before the President’s budget submissionCBO sequestration preview report.
The President’s budget submissionOMB sequestration preview report.
August 10Notification regarding military personnel.
August 15CBO sequestration update report.
August 20OMB sequestration update report.
10 days after end of sessionCBO final sequestration report.
15 days after end of sessionOMB final sequestration report; Presidential order.
(b) Submission and availability of reportsEach report required by this section shall be submitted, in the case of CBO, to the House of Representatives, the Senate and OMB and, in the case of OMB, to the House of Representatives, the Senate, and the President on the day it is issued. On the following day a notice of the report shall be printed in the Federal Register.
(c) Sequestration preview reports(1) Reporting requirementOn the dates specified in subsection (a), OMB and CBO shall issue a preview report regarding discretionary, pay-as-you-go, and deficit sequestration based on laws enacted through those dates.
(2) Discretionary sequestration reportThe preview reports shall set forth estimates for the current year and each subsequent year through 2025 of the applicable discretionary spending limits for each category and an explanation of any adjustments in such limits under section 901 of this title.
(3) Pay-as-you-go sequestration reportsThe preview reports shall set forth, for the current year and the budget year, estimates for each of the following:(A) The amount of net deficit increase or decrease, if any, calculated under section 902(b) of this title.
(B) A list identifying each law enacted and sequestration implemented after November 5, 1990, included in the calculation of the amount of deficit increase or decrease and specifying the budgetary effect of each such law.
(C) The sequestration percentage or (if the required sequestration percentage is greater than the maximum allowable percentage for medicare) percentages necessary to eliminate a deficit increase under section 902(c) of this title.
(4) Deficit sequestration reportsThe preview reports shall set forth for the budget year estimates for each of the following:(A) The maximum deficit amount, the estimated deficit calculated under section 903(b) of this title, the excess deficit, and the margin.
(B) The amount of reductions required under section 902 of this title, the excess deficit remaining after those reductions have been made, and the amount of reductions required from defense accounts and the reductions required from non-defense accounts.
(C) The sequestration percentage necessary to achieve the required reduction in defense accounts under section 903(d) of this title.
(D) The reductions required under sections 903(e)(1) and 903(e)(2) of this title.
(E) The sequestration percentage necessary to achieve the required reduction in non-defense accounts under section 903(e)(3) of this title.
The CBO report need not set forth the items other than the maximum deficit amount for fiscal year 1992, 1993, or any fiscal year for which the President notifies the House of Representatives and the Senate that he will adjust the maximum deficit amount under the option under section 903(g)(1)(B) of this title.
(5) Explanation of differencesThe OMB reports shall explain the differences between OMB and CBO estimates for each item set forth in this subsection.
(d) Notification regarding military personnelOn or before the date specified in subsection (a), the President shall notify the Congress of the manner in which he intends to exercise flexibility with respect to military personnel accounts under section 905(f) of this title.
(e) Sequestration update reportsOn the dates specified in subsection (a), OMB and CBO shall issue a sequestration update report, reflecting laws enacted through those dates, containing all of the information required in the sequestration preview reports. This report shall also contain a preview estimate of the adjustment for disaster funding for the upcoming fiscal year.
(f) Final sequestration reports(1) Reporting requirementOn the dates specified in subsection (a), OMB and CBO shall issue a final sequestration report, updated to reflect laws enacted through those dates.
(2) Discretionary sequestration reportsThe final reports shall set forth estimates for each of the following:(A) For the current year and each subsequent year through 2025 the applicable discretionary spending limits for each category and an explanation of any adjustments in such limits under section 901 of this title, including a final estimate of the adjustment for disaster funding.
(B) For the current year and the budget year the estimated new budget authority and outlays for each category and the breach, if any, in each category.
(C) For each category for which a sequestration is required, the sequestration percentages necessary to achieve the required reduction.
(D) For the budget year, for each account to be sequestered, estimates of the baseline level of sequestrable budgetary resources and resulting outlays and the amount of budgetary resources to be sequestered and resulting outlay reductions.
(3) Pay-as-you-go and deficit sequestration reportsThe final reports shall contain all the information required in the pay-as-you-go and deficit sequestration preview reports. In addition, these reports shall contain, for the budget year, for each account to be sequestered, estimates of the baseline level of sequestrable budgetary resources and resulting outlays and the amount of budgetary resources to be sequestered and resulting outlay reductions. The reports shall also contain estimates of the effects on outlays of the sequestration in each outyear for direct spending programs.
(4) Explanation of differencesThe OMB report shall explain any differences between OMB and CBO estimates of the amount of any net deficit change calculated under section 902(b) of this title, any excess deficit, any breach, and any required sequestration percentage. The OMB report shall also explain differences in the amount of sequesterable 11 So in original. Probably should be “sequestrable”. resources for any budget account to be reduced if such difference is greater than $5,000,000.
(5) Presidential orderOn the date specified in subsection (a), if in its final sequestration report OMB estimates that any sequestration is required, the President shall issue an order fully implementing without change all sequestrations required by the OMB calculations set forth in that report. This order shall be effective on issuance.
(g) Within-session sequestration reports and orderIf an appropriation for a fiscal year in progress is enacted (after Congress adjourns to end the session for that budget year and before July 1 of that fiscal year) that causes a breach, 10 days later CBO shall issue a report containing the information required in paragraph (f)(2). Fifteen days after enactment, OMB shall issue a report containing the information required in paragraphs (f)(2) and (f)(4). On the same day as the OMB report, the President shall issue an order fully implementing without change all sequestrations required by the OMB calculations set forth in that report. This order shall be effective on issuance.
(h) GAO compliance reportUpon request of the Committee on the Budget of the House of Representatives or the Senate, the Comptroller General shall submit to the Congress and the President a report on—(1) the extent to which each order issued by the President under this section complies with all of the requirements contained in this subchapter, either certifying that the order fully and accurately complies with such requirements or indicating the respects in which it does not; and
(2) the extent to which each report issued by OMB or CBO under this section complies with all of the requirements contained in this subchapter, either certifying that the report fully and accurately complies with such requirements or indicating the respects in which it does not.
(i) Low-growth reportAt any time, CBO shall notify the Congress if—(1) during the period consisting of the quarter during which such notification is given, the quarter preceding such notification, and the 4 quarters following such notification, CBO or OMB has determined that real economic growth is projected or estimated to be less than zero with respect to each of any 2 consecutive quarters within such period; or
(2) the most recent of the Department of Commerce’s advance preliminary or final reports of actual real economic growth indicate that the rate of real economic growth for each of the most recently reported quarter and the immediately preceding quarter is less than one percent.
(j) Economic and technical assumptionsIn all reports required by this section, OMB shall use the same economic and technical assumptions as used in the most recent budget submitted by the President under section 1105(a) of title 31.