Skip Navigation

The Budget Enforcement Act of 1990 amended the Balanced Budget and Emergency Deficit Control Act of 1985 and the Congressional Budget Act of 1974 to add new enforcement procedures for direct (mandatory) spending, receipts, and discretionary spending for fiscal years 1991 through 1995. The Omnibus Budget Reconciliation Act of 1993 extended the application of the new procedures through 1998. The law requires the Congressional Budget Office (CBO) to issue a sequestration preview report five days before the President's budget submission in January or February, a sequestration update report on August 15, and a final sequestration report 10 days after the end of a session of Congress. Those reports must contain estimates of the following items:

• The discretionary spending limits and any adjustments to them;
  
  
• The amount by which direct spending or receipt legislation enacted after the Budget Enforcement Act has increased or decreased the deficit; and
  
  
• The amount of any required pay-as-you-go sequestration.

This report to the Congress and the Office of Management and Budget (OMB) provides the information required for the August 15 update of CBO's Sequestration Preview Report for Fiscal Year 1996. In addition to updating the information required in this report, the final report that CBO will issue 10 days after the current session of Congress ends must also assess whether a sequestration is required.

A sequestration will be triggered if enacted appropriations have exceeded the spending limits for 1996 or direct spending or receipt legislation has increased the total deficit for 1995 and 1996. Based on the levels of spending allowed under the budget resolution adopted earlier this year and on legislative action to date, CBO does not anticipate that any discretionary spending or pay-as-you-go sequestration will be required in 1996.

This document is available in its entirety in PDF.