The Budget Resolution and the Budget Control Act’s Discretionary Spending Limits

The Budget Resolution and the Budget Control Act’s Discretionary Spending Limits

Updated June 7, 2017
The Budget Resolution and the Budget Control Act’s
Discretionary Spending Limits
Recently, questions have arisen about the relationship
se.) Due to the absence of the enactment of specific
between the congressional budget resolution and the
legislation to reduce the deficit by at least $1.2 trillion over
statutory discretionary spending limits created by the
the 10-year period, the BCA requires these reductions to the
Budget Control Act of 2011 (BCA; P.L. 112-25).
statutory limits on both defense and non-defense
Specifically, questions have been asked about whether
discretionary spending for each year through FY2021.
Congress may consider a budget resolution that provides for
These reductions are calculated annually by the Office of
spending levels above the statutory discretionary spending
Management and Budget.
limits and whether the budget resolution may change or
supersede the discretionary spending limits.
OMB’s FY2018 Sequestration Preview report stated the
limits to be $549 billion for defense and $516 billion for
The Congressional Budget Resolution
non-defense. (This reflects the required downward
The Congressional Budget Act of 1974 (Budget Act; Titles
adjustments.)
I-IX of P.L. 93-344, as amended) provides for the annual
adoption of a budget resolution. The budget resolution
The Budget Resolution and the Statutory
reflects an agreement between the House and Senate on a
Discretionary Spending Limits
budgetary plan for the upcoming fiscal year. This plan is
Some Members of Congress have expressed dissatisfaction
designed to establish spending and revenue levels within
with the statutory discretionary spending limits, and in fact
which Congress will consider subsequent budgetary
several pieces of legislation have been enacted that
legislation.
increased the spending limits in the past. (Statutory
increases were made to the limits for FY2014, FY2015,
The budget resolution does not become law. Therefore, no
FY2016 and FY2017. See CRS Report R42972,
money is spent or collected as a result of its adoption.
Sequestration as a Budget Enforcement Process:
Instead, it is meant to assist Congress in adhering to and
Frequently Asked Questions, by Megan S. Lynch.) The
implementing an overall budget plan. Once agreed to by
spending limits may be modified or eliminated only by
both chambers, the budget resolution creates spending and
statute. Because a budget resolution is in the form of a
revenue levels that may be enforced by points of order.
concurrent resolution—and therefore is not a lawmaking
measure—it cannot be the legislative vehicle to enact such
The Statutory Discretionary Spending
a change.
Limits
The BCA established statutory limits on discretionary
Nevertheless, when Congress desires spending in excess of
spending for FY2012-FY2021. (Discretionary spending is
the discretionary spending limits, it may wish to reflect
provided annually in appropriations legislation.) Currently,
those intentions in the budget resolution, since the budget
there are separate annual limits for defense discretionary
resolution acts as a plan for the upcoming budget year. For
and non-defense discretionary spending. The defense
example, the House passed a budget resolution in the past
category consists of discretionary spending in budget
that reflected defense discretionary spending levels above
function 050 (national defense) only. The non-defense
the amount stipulated by the BCA. (H.Con.Res. 25, 113th
category includes discretionary spending in all other budget
Congress).
functions.
In the Senate, however, section 312(b) of the Budget Act
If discretionary appropriations are enacted for a fiscal year
prohibits consideration of a budget resolution that includes
that exceed a statutory limit, across-the-board reductions
budgetary levels in excess of the BCA limits. If a budget
(i.e., sequestration) of non-exempt budgetary resources
resolution includes such levels—such as an amount for the
within the applicable category are required to eliminate the
defense function (050) that is higher than the spending limit
excess spending. The BCA further stipulates that the
for FY2018—its consideration would be subject to a point
enactment of certain discretionary spending—such as
of order in the Senate. If such a point of order were raised,
appropriations designated as emergency requirements or for
further consideration of the budget resolution would not be
overseas contingency operations—allows for an upward
in order unless the point of order were waived by a vote of
adjustment of the discretionary limits (meaning that such
three-fifths of all Senators. There may be other ways,
spending is essentially exempt from the limits).
however, that a budget resolution might express support for
spending above the discretionary spending levels stipulated
A second component of the BCA requires reductions to
by the BCA. For example, the budget resolution might
these limits annually. (These reductions are often referred
include provisions allowing for subsequent adjustment of
to as a “sequester,” although they are not a sequester per
the levels in the budget resolution, or it may include
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The Budget Resolution and the Budget Control Act’s Discretionary Spending Limits
information in the committee report reflecting a plan for
appropriations measure would not be in order unless the
spending in excess of the limits.
point of order was waived by a vote of three-fifths of all
Senators in the Senate or in the House by a simple majority
Even if a budget resolution reflected spending in excess of
of those Members voting (assuming a quorum).
the spending limits, any subsequent appropriations
legislation that would violate the spending limits would still
Second, any appropriations enacted into law in excess of
be subject to the double-pronged enforcement provided in
the levels stipulated by the BCA would trigger a sequester,
the BCA comprising (1) congressional rules enforced by
canceling previously enacted spending through automatic,
points of order at the time of consideration and (2) statutory
largely across-the-board reductions of non-exempt
sequestration after enactment.
budgetary resources within the category of the breach.
First, the appropriations measure(s) in violation of the
Megan S. Lynch, Specialist on Congress and the
spending limit would be subject to a 312(b) point of order
Legislative Process
in the Senate (as described above), as well as a 314(f) point
of order in either the House or the Senate. If either of those
IF10647
points of order were raised, further consideration of the

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The Budget Resolution and the Budget Control Act’s Discretionary Spending Limits

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