US Code

Public Law 119-73 (01/23/2026)

2 U.S.C. § 906

General and special sequestration rules

(a)

Pub. L. 111–139, title I, § 10(a)124 Stat. 21 Repealed. , ,

(b)

Student loans

20 U.S.C. 1071section 904 of this title20 U.S.C. 1087–1(c)(2)20 U.S.C. 1078(f)(1)(A)(ii)20 U.S.C. 1087–1(b)For all student loans under part B or D of title IV of the Higher Education Act of 1965 [ et seq., 1087a et seq.] made during the period when a sequestration order under is in effect as required by section 902 or 903 of this title, origination fees under sections 438(c)(2) and (6) and 455(c) [, (6), 1087e(c)] and loan processing and issuance fees under section 428(f)(1)(A)(ii) of that Act [] shall each be increased by the uniform percentage specified in that sequestration order, and, for student loans originated during the period of the sequestration, special allowance payments under section 438(b) of that Act [] accruing during the period of the sequestration shall be reduced by the uniform percentage specified in that sequestration order.

(c)

Pub. L. 111–139, title I, § 10(c)124 Stat. 22 Repealed. , ,

(d)

Special rules for Medicare program

(1)

Calculation of reduction in payment amounts

42 U.S.C. 911section 904 of this title42 U.S.C. 1395To achieve the total percentage reduction in those programs required by section 902 or 903 of this title, subject to paragraph (2), and notwithstanding section 710 of the Social Security Act [], OMB shall determine, and the applicable Presidential order under shall implement, the percentage reduction that shall apply, with respect to the health insurance programs under title XVIII of the Social Security Act [ et seq.]—
(A)
42 U.S.C. 1395c in the case of parts A and B of such title [ et seq., 1395j et seq.], to individual payments for services furnished during the one-year period beginning on the first day of the first month beginning after the date the order is issued (or, if later, the date specified in paragraph (4)); and
(B)
42 U.S.C. 1395w–21 in the case of parts C and D [ et seq., 1395w–101 et seq.], to monthly payments under contracts under such parts for the same one-year period;
such that the reduction made in payments under that order shall achieve the required total percentage reduction in those payments for that period.
(2)

Uniform reduction rate; maximum permissible reduction

42 U.S.C. 1395section 904 of this titleReductions in payments for programs and activities under such title XVIII [ et seq.] pursuant to a sequestration order under shall be at a uniform rate, which shall not exceed 4 percent, across all such programs and activities subject to such order.

(3)

Timing of application of reductions

(A)

In general

Except as provided in subparagraph (B), if a reduction is made under paragraph (1) in payment amounts pursuant to a sequestration order, the reduction shall be applied to payment for services furnished during the effective period of the order. For purposes of the previous sentence, in the case of inpatient services furnished for an individual, the services shall be considered to be furnished on the date of the individual’s discharge from the inpatient facility.

(B)

Payment on the basis of cost reporting periods

42 U.S.C. 1395In the case in which payment for services of a provider of services is made under title XVIII of the Social Security Act [ et seq.] on a basis relating to the reasonable cost incurred for the services during a cost reporting period of the provider, if a reduction is made under paragraph (1) in payment amounts pursuant to a sequestration order, the reduction shall be applied to payment for costs for such services incurred at any time during each cost reporting period of the provider any part of which occurs during the effective period of the order, but only (for each such cost reporting period) in the same proportion as the fraction of the cost reporting period that occurs during the effective period of the order.

(4)

Timing of subsequent sequestration order

42 U.S.C. 1395A sequestration order required by section 902 or 903 of this title with respect to programs under such title XVIII [ et seq.] shall not take effect until the first month beginning after the end of the effective period of any prior sequestration order with respect to such programs, as determined in accordance with paragraph (1).

(5)

No increase in beneficiary charges in assignment-related cases

42 U.S.C. 1395j42 U.S.C. 1395u(b)(3)(B)(ii)42 U.S.C. 1395u(b)(6)(B)42 U.S.C. 1395gg(f)(1)If a reduction in payment amounts is made under paragraph (1) for services for which payment under part B of title XVIII of the Social Security Act [ et seq.] is made on the basis of an assignment described in section 1842(b)(3)(B)(ii) [], in accordance with section 1842(b)(6)(B) [], or under the procedure described in section 1870(f)(1) [], of such Act, the person furnishing the services shall be considered to have accepted payment of the reasonable charge for the services, less any reduction in payment amount made pursuant to a sequestration order, as payment in full.

(6)

Sequestration disregarded in computing payment amounts

42 U.S.C. 1395The Secretary of Health and Human Services shall not take into account any reductions in payment amounts which have been or may be effected under this subchapter, for purposes of computing any adjustments to payment rates under such title XVIII [ et seq.], specifically including—
(A)
42 U.S.C. 1395w–23(c)(6) the part C growth percentage under section 1853(c)(6) [];
(B)
42 U.S.C. 1395w–102(b)(6) the part D annual growth rate under section 1860D–2(b)(6) []; and
(C)
42 U.S.C. 1395w–115(e) application of risk corridors to part D payment rates under section 1860D–15(e) [].
(7)

Exemptions from sequestration

section 905 of this titleIn addition to the programs and activities specified in , the following shall be exempt from sequestration under this subchapter:
(A)

Part D low-income subsidies

42 U.S.C. 1395w–114Premium and cost-sharing subsidies under section 1860D–14 of the Social Security Act [].

(B)

Part D catastrophic subsidy

42 U.S.C. 1395w–115(b)Payments under section 1860D–15(b) and (e)(2)(B) of the Social Security Act [, (e)(2)(B)].

(C)

Qualified individual (QI) premiums

42 U.S.C. 1396u–3Payments to States for coverage of Medicare cost-sharing for certain low-income Medicare beneficiaries under section 1933 of the Social Security Act [].

(e)

Community and migrant health centers, Indian health services and facilities, and veterans’ medical care

(1)
section 904 of this title The maximum permissible reduction in budget authority for any account listed in paragraph (2) for any fiscal year, pursuant to an order issued under , shall be 2 percent.
(2)
The accounts referred to in paragraph (1) are as follows:
(A)
Community health centers (75-0350-0-1-550).
(B)
Migrant health centers (75-0350-0-1-550).
(C)
Indian health facilities (75-0391-0-1-551).
(D)
Indian health services (75-0390-0-1-551).
(E)
Veterans’ medical care (36-0160-0-1-703).
For purposes of the preceding provisions of this paragraph, programs are identified by the designated budget account identification code numbers set forth in the Budget of the United States Government—Appendix.
(f)

Treatment of child support enforcement program

section 904 of this title42 U.S.C. 655Notwithstanding any change in the display of budget accounts, any order issued by the President under shall accomplish the full amount of any required reduction in expenditures under sections 455 and 458 of the Social Security Act [, 658a] by reducing the Federal matching rate for State administrative costs under such program, as specified (for the fiscal year involved) in section 455(a) of such Act, to the extent necessary to reduce such expenditures by that amount.

(g)

Federal pay

(1)

In general

section 904 of this titleFor purposes of any order issued under —
(A)
Federal pay under a statutory pay system, and
(B)
elements of military pay,
section 5304 of title 5section 5303 of title 5section 1009 of title 37shall be subject to reduction under an order in the same manner as other administrative expense components of the Federal budget; except that no such order may reduce or have the effect of reducing the rate of pay to which any individual is entitled under any such statutory pay system (as increased by any amount payable under or section 302 of the Federal Employees Pay Comparability Act of 1990) or the rate of any element of military pay to which any individual is entitled under title 37, or any increase in rates of pay which is scheduled to take effect under , , or any other provision of law.
(2)

Definitions

For purposes of this subsection:
(A)
section 5302(1) of title 5 The term “statutory pay system” shall have the meaning given that term in .
(B)
The term “elements of military pay” means—
(i)
section 1009 of title 37 the elements of compensation of members of the uniformed services specified in ,
(ii)
allowances provided members of the uniformed services under sections 403b and 405 of such title, and
(iii)
cadet pay and midshipman pay under section 203(c) of such title.
(C)
section 101(3) of title 37 The term “uniformed services” shall have the meaning given that term in .
(h)

Treatment of Federal administrative expenses

(1)
1
1 See References in Text note below.
section 904 of this title Notwithstanding any other provision of this title, administrative expenses incurred by the departments and agencies, including independent agencies, of the Federal Government in connection with any program, project, activity, or account shall be subject to reduction pursuant to an order issued under , without regard to any exemption, exception, limitation, or special rule which is otherwise applicable with respect to such program, project, activity, or account under this subchapter.
(2)
Notwithstanding any other provision of law, administrative expenses of any program, project, activity, or account which is self-supporting and does not receive appropriations shall be subject to reduction under a sequester order, unless specifically exempted in this subchapter.
(3)
1 Payments made by the Federal Government to reimburse or match administrative costs incurred by a State or political subdivision under or in connection with any program, project, activity, or account shall not be considered administrative expenses of the Federal Government for purposes of this section, and shall be subject to reduction or sequestration under this subchapter to the extent (and only to the extent) that other payments made by the Federal Government under or in connection with that program, project, activity, or account are subject to such reduction or sequestration; except that Federal payments made to a State as reimbursement of administrative costs incurred by such State under or in connection with the unemployment compensation programs specified in subsection (h)(1)  shall be subject to reduction or sequestration under this subchapter notwithstanding the exemption otherwise granted to such programs under that subsection.
(4)
Notwithstanding any other provision of law, this subsection shall not apply with respect to the following:
(A)
Comptroller of the Currency.
(B)
Federal Deposit Insurance Corporation.
(C)
National Credit Union Administration.
(D)
National Credit Union Administration, central liquidity facility.
(E)
Federal Retirement Thrift Investment Board.
(F)
Farm Credit Administration.
(G)
Cost of War Toxic Exposures Fund.
(i)

Treatment of payments and advances made with respect to unemployment compensation programs

(1)
section 904 of this title For purposes of —
(A)
42 U.S.C. 1104(a) any amount paid as regular unemployment compensation by a State from its account in the Unemployment Trust Fund (established by section 904(a) of the Social Security Act []),
(B)
42 U.S.C. 1104(g)42 U.S.C. 132142 U.S.C. 1323 any advance made to a State from the Federal unemployment account (established by section 904(g) of such Act []) under title XII of such Act [ et seq.] and any advance appropriated to the Federal unemployment account pursuant to section 1203 of such Act [],
(C)
42 U.S.C. 1109 any payment made from the Federal Employees Compensation Account (as established under section 909 of such Act []) for the purpose of carrying out chapter 85 of title 5 and funds appropriated or transferred to or otherwise deposited in such Account, and
(D)
45 U.S.C. 36045 U.S.C. 351 any payment made from the Railroad Unemployment Insurance Account (established by section 10 of the Railroad Unemployment Insurance Act []) for the purpose of carrying out the Railroad Unemployment Insurance Act [ et seq.], and funds appropriated or transferred to or otherwise deposited in such Account,
shall not be subject to reduction.
(2)
(A)
section 904 of this title A State may reduce each weekly bene­fit payment made under the Federal-State Extended Unemployment Compensation Act of 1970 for any week of unemployment occurring during any period with respect to which payments are reduced under an order issued under by a percentage not to exceed the percentage by which the Federal payment to the State under section 204 of such Act is to be reduced for such week as a result of such order.
(B)
section 3304(a)(11) of title 26 A reduction by a State in accordance with subparagraph (A) shall not be considered as a failure to fulfill the requirements of .
(j)

Commodity Credit Corporation

(1)

Powers and authorities of the Commodity Credit Corporation

1This title  shall not restrict the Commodity Credit Corporation in the discharge of its authority and responsibility as a corporation to buy and sell commodities in world trade, to use the proceeds as a revolving fund to meet other obligations and otherwise operate as a corporation, the purpose for which it was created.

(2)

Reduction in payments made under contracts

(A)
section 904 of this title Loan eligibility under any contract entered into with a person by the Commodity Credit Corporation prior to the time an order has been issued under shall not be reduced by an order subsequently issued. Subject to subparagraph (B), after an order is issued under such section for a fiscal year, any cash payments for loans or loan deficiencies made by the Commodity Credit Corporation shall be subject to reduction under the order.
(B)
section 904 of this title Each loan contract entered into with producers or producer cooperatives with respect to a particular crop of a commodity and subject to reduction under subparagraph (A) shall be reduced in accordance with the same terms and conditions. If some, but not all, contracts applicable to a crop of a commodity have been entered into prior to the issuance of an order under , the order shall provide that the necessary reduction in payments under contracts applicable to the commodity be uniformly applied to all contracts for the next succeeding crop of the commodity, under the authority provided in paragraph (3).
(3)

Delayed reduction in outlays permissible

1section 904 of this titleNotwithstanding any other provision of this title, if an order under is issued with respect to a fiscal year, any reduction under the order applicable to contracts described in paragraph (1) may provide for reductions in outlays for the account involved to occur in the fiscal year following the fiscal year to which the order applies.

(4)

Uniform percentage rate of reduction and other limitations

section 904 of this titleAll reductions described in paragraph (2) which are required to be made in connection with an order issued under with respect to a fiscal year shall be made so as to ensure that outlays for each program, project, activity, or account involved are reduced by a percentage rate that is uniform for all such programs, projects, activities, and accounts, and may not be made so as to achieve a percentage rate of reduction in any such item exceeding the rate specified in the order.

(5)

Dairy program

section 1446(d)(2)(A) of title 7section 904 of this titleNotwithstanding any other provision of this subsection, as the sole means of achieving any reduction in outlays under the milk price support program, the Secretary of Agriculture shall provide for a reduction to be made in the price received by producers for all milk produced in the United States and marketed by producers for commercial use. That price reduction (measured in cents per hundred weight of milk marketed) shall occur under , shall begin on the day any sequestration order is issued under , and shall not exceed the aggregate amount of the reduction in outlays under the milk price support program that otherwise would have been achieved by reducing payments for the purchase of milk or the products of milk under this subsection during the applicable fiscal year.

(6)

Certain authority not to be limited

Nothing in this joint resolution shall limit or reduce, in any way, any appropriation that provides the Commodity Credit Corporation with budget authority to cover the Corporation’s net realized losses.

(k)

Effects of sequestration

The effects of sequestration shall be as follows:
(1)
Budgetary resources sequestered from any account shall be permanently cancelled, except as provided in paragraph (6).
(2)
Except as otherwise provided, the same percentage sequestration shall apply to all programs, projects, and activities within a budget account (with programs, projects, and activities as delineated in the appropriation Act or accompanying report for the relevant fiscal year covering that account, or for accounts not included in appropriation Acts, as delineated in the most recently submitted President’s budget).
(3)
Administrative regulations or similar actions implementing a sequestration shall be made within 120 days of the sequestration order. To the extent that formula allocations differ at different levels of budgetary resources within an account, program, project, or activity, the sequestration shall be interpreted as producing a lower total appropriation, with the remaining amount of the appropriation being obligated in a manner consistent with program allocation formulas in substantive law.
(4)
Except as otherwise provided, obligations in sequestered accounts shall be reduced only in the fiscal year in which a sequester occurs.
(5)
If an automatic spending increase is sequestered, the increase (in the applicable index) that was disregarded as a result of that sequestration shall not be taken into account in any subsequent fiscal year.
(6)
Budgetary resources sequestered in revolving, trust, and special fund accounts and offsetting collections sequestered in appropriation accounts shall not be available for obligation during the fiscal year in which the sequestration occurs, but shall be available in subsequent years to the extent otherwise provided in law.

Pub. L. 99–177, title II, § 25699 Stat. 1086Pub. L. 99–514, § 2100 Stat. 2095Pub. L. 100–86, title V, § 506(b)101 Stat. 634Pub. L. 100–119, title I101 Stat. 773Pub. L. 101–73, title VII, § 743(b)103 Stat. 437Pub. L. 101–508, title XIII, § 13101(d)104 Stat. 1388–589Pub. L. 101–509, title V, § 529 [title I, § 101(b)(2)(A), (4)(H)]104 Stat. 1427Pub. L. 104–193, title I, § 110(r)(2)110 Stat. 2175Pub. L. 105–33, title X, § 10208(a)(1)111 Stat. 708–710Pub. L. 111–139, title I124 Stat. 21Pub. L. 111–203, title III, § 352124 Stat. 1546Pub. L. 112–81, div. A, title VI, § 631(f)(4)(B)125 Stat. 1465Pub. L. 112–239, div. A, title X, § 1076(a)(9)126 Stat. 1948Pub. L. 116–260, div. N, title II, § 235(a)134 Stat. 1959Pub. L. 117–168, title VIII, § 805(b)136 Stat. 1805Pub. L. 117–263, div. A, title VI, § 626(a)136 Stat. 2628(, , ; , , ; , , ; , §§ 102(b)(2), (3), (11), 104(a)(3), (4), , , 775, 776; , , ; , , ; , , , 1439, 1440; , , ; , (b)–(g), , ; , §§ 9(b), 10, , ; , , ; , , ; , , ; , (c), , ; , , ; , , .)

Editorial Notes

References in Text

Pub. L. 89–32979 Stat. 1219section 1001 of Title 20The Higher Education Act of 1965, referred to in subsec. (b), is , , . Parts B and D of title IV of the Act are classified generally to parts B (§ 1071 et seq.) and D (§ 1087a et seq.), respectively, of subchapter IV of chapter 28 of Title 20, Education. For complete classification of this Act to the Code, see Short Title note set out under and Tables.

act Aug. 14, 1935, ch. 53149 Stat. 620section 1305 of Title 42The Social Security Act, referred to in subsecs. (d) and (i)(1)(B), is , . Titles XII and XVIII of the Social Security Act are classified generally to subchapters XII (§ 1321 et seq.) and XVIII (§ 1395 et seq.), respectively, of chapter 7 of Title 42, The Public Health and Welfare. Parts A to D of title XVIII of the Act are classified generally to parts A (§ 1395c et seq.), B (§ 1395j et seq.), C (§ 1395w–21 et seq.), and D (§ 1395w–101 et seq.), respectively, of subchapter XVIII of chapter 7 of Title 42. For complete classification of this Act to the Code, see and Tables.

Pub. L. 101–509section 5304 of Title 5Section 302 of the Federal Employees Pay Comparability Act of 1990, referred to in subsec. (g)(1), is section 529 [title III, § 302] of , which is set out as a note under , Government Organization and Employees.

Pub. L. 99–17799 Stat. 1038section 900 of this titleThis title, referred to in subsecs. (h)(1) and (j)(1), (3), means title II (§ 200 et seq.) of , , , known as the Balanced Budget and Emergency Deficit Control Act of 1985. For complete classification of this Act to the Code, see Short Title note set out under and Tables.

Pub. L. 101–508, title XIII, § 13101(d)(2)104 Stat. 1388–589Subsec. (h)(1), referred to in subsec. (h)(3), was redesignated subsec. (i)(1) by , , .

act June 25, 1938, ch. 68052 Stat. 1094section 367 of Title 45The Railroad Unemployment Insurance Act, referred to in subsec. (i)(1)(D), is , , which is classified principally to chapter 11 (§ 351 et seq.) of Title 45, Railroads. For complete classification of this Act to the Code, see and Tables.

Pub. L. 91–37384 Stat. 708section 3304 of Title 26section 3304 of Title 26The Federal-State Extended Unemployment Compensation Act of 1970, referred to in subsec. (i)(2)(A), is title II of , , , which is classified generally as a note under , Internal Revenue Code. Section 204 of such Act is set out in the note under . For complete classification of this Act to the Code, see Tables.

Pub. L. 99–17799 Stat. 1037section 911 of Title 42section 661 of this titlesection 900 of this titlesection 911 of Title 42section 621 of this titleThis joint resolution, referred to in subsec. (j)(6), means , , , which enacted this chapter and sections 654 to 656 of this title, amended sections 602, 622, 631 to 642, and 651 to 653 of this title, sections 1104 to 1106, 1109, and 3101 of Title 31, Money and Finance, and , The Public Health and Welfare, repealed , enacted provisions set out as notes under and , and amended provisions set out as a note under . For complete classification of this Act to the Code, see Tables.

Amendments

Pub. L. 118–159, § 5701(a)(2)Pub. L. 116–260, § 235(c)2024—Subsec. (i)(1)(D). , repealed . See 2020 Amendment note below.

Pub. L. 117–2632022—Subsec. (g)(2)(B)(ii). substituted “sections 403b and 405” for “sections 403a and 475”.

Pub. L. 117–168Subsec. (h)(4)(G). added subpar. (G).

Pub. L. 116–260, § 235(c)section 235(a) of Pub. L. 116–260Pub. L. 118–159, § 5701(a)(2)2020—Subsec. (i)(1)(D). , which directed the repeal of the amendment made by , was repealed by .

Pub. L. 116–260, § 235(a), added subpar. (D).

Pub. L. 112–239, § 1076(a)(9)Pub. L. 112–81, § 631(f)(4)(B)2013—Subsec. (g)(2)(B)(ii). , made technical amendment to directory language of . See 2011 Amendment note below.

Pub. L. 112–81, § 631(f)(4)(B)Pub. L. 112–239, § 1076(a)(9)2011—Subsec. (g)(2)(B)(ii). , as amended by , substituted “475” for “405”.

Pub. L. 111–139, § 10(a)2010—Subsec. (a). , struck out subsec. (a). Text read as follows: “Automatic spending increases are increases in outlays due to changes in indexes in the following programs:

“(1) Special milk program; and

“(2) Vocational rehabilitation basic State grants.

In those programs all amounts other than the automatic spending increases shall be exempt from reduction under any order issued under this subchapter.”

Pub. L. 111–139, § 10(b)Subsec. (b). , substituted “origination fees under sections 438(c)(2) and (6) and 455(c) and loan processing and issuance fees under section 428(f)(1)(A)(ii) of that Act shall each be increased by the uniform percentage specified in that sequestration order, and, for student loans originated during the period of the sequestration, special allowance payments under section 438(b) of that Act accruing during the period of the sequestration shall be reduced by the uniform percentage specified in that sequestration order.” for “origination fees under sections 438(c)(2) and 455(c) of that Act shall each be increased by 0.50 percentage point.”

Pub. L. 111–139, § 10(c)section 904 of this titleSubsec. (c). , struck out subsec. (c). Text read as follows: “Any order issued by the President under shall make the reduction which is otherwise required under the foster care and adoption assistance programs (established by part E of title IV of the Social Security Act) only with respect to payments and expenditures made by States in which increases in foster care maintenance payment rates or adoption assistance payment rates (or both) are to take effect during the fiscal year involved, and only to the extent that the required reduction can be accomplished by applying a uniform percentage reduction to the Federal matching payments that each such State would otherwise receive under section 474 of that Act (for such fiscal year) for that portion of the State’s payments which is attributable to the increases taking effect during that year. No State’s matching payments from the Federal Government for foster care maintenance payments or for adoption assistance maintenance payments may be reduced by a percentage exceeding the applicable domestic sequestration percentage. No State may, after , make any change in the timetable for making payments under a State plan approved under part E of title IV of the Social Security Act which has the effect of changing the fiscal year in which expenditures under such part are made.”

Pub. L. 111–139, § 10(d)(2)section 904 of this titleSubsec. (d)(1). , amended par. (1) generally. Prior to amendment, text read as follows: “To achieve the total percentage reduction in those programs required by sections 902 and 903 of this title, and notwithstanding section 710 of the Social Security Act, OMB shall determine, and the applicable Presidential order under shall implement, the percentage reduction that shall apply to payments under the health insurance programs under title XVIII of the Social Security Act for services furnished after the order is issued, such that the reduction made in payments under that order shall achieve the required total percentage reduction in those payments for that fiscal year as determined on a 12-month basis.”

Pub. L. 111–139, § 10(d)(1)Subsec. (d)(2) to (6). , (3)–(5), added pars. (2) and (4), redesignated former pars. (2), (3), and (4) as (3), (5), and (6), respectively, and amended par. (6) generally. Prior to amendment, text of par. (6) read as follows: “In computing the adjusted average per capita cost for purposes of section 1876(a)(4) of the Social Security Act, the Secretary of Health and Human Services shall not take into account any reductions in payment amounts which have been or may be effected under this subchapter.”

Pub. L. 111–139, § 10(d)(6)Subsec. (d)(7). , added par. (7).

Pub. L. 111–203Subsec. (h)(4)(C) to (H). redesignated subpars. (D), (E), (F), and (H) as (C), (D), (E), and (F), respectively, and struck out former subpars. (C) and (G) which read as follows:

“(C) Office of Thrift Supervision.”

“(G) Resolution Trust Corporation.”

Pub. L. 111–139, § 9(b)Subsec. (k)(1). , substituted “in paragraph (6)” for “in paragraph (5)”.

Pub. L. 105–33, § 10208(a)(1)1997—, substituted “General and special sequestration rules” for “Exceptions, limitations, and special rules” as section catchline.

Pub. L. 105–33, § 10208(b)Subsec. (a). , redesignated pars. (2) and (3) as (1) and (2), respectively, and struck out former par. (1) which read as follows: “National Wool Act;”.

Pub. L. 105–33, § 10208[(c)]Subsec. (b). , amended subsec. (b) generally, substituting new heading and text for former text consisting of pars. (1) to (3) relating to reductions required to be achieved from student loan programs operated under part B of title IV of the Higher Education Act of 1965 as a consequence of a sequestration order. Amendment was executed to reflect the probable intent of Congress based on language directing the general amendment of subsec. (b), appearing in the conference report for H.R. 2015, H. Rept. No. 105–217, 105th Congress, as adopted by the House of Representatives and Senate.

Pub. L. 105–33, § 10208(d)Subsec. (e)(1). , substituted “shall be 2 percent.” for “shall be—” and struck out subpars. (A) and (B) which read as follows:

“(A) 1 percent in the case of the fiscal year 1986, and

“(B) 2 percent in the case of any subsequent fiscal year.”

Pub. L. 105–33, § 10208(e)(1)Subsec. (h)(2). , substituted “this subchapter” for “this joint resolution”.

Pub. L. 105–33, § 10208(e)(2)Subsec. (h)(4)(D). , redesignated subpar. (E) as (D) and struck out former subpar. (D) which read as follows: “Office of Thrift Supervision.”

Pub. L. 105–33, § 10208(e)(2)Subsec. (h)(4)(E) to (G). , redesignated subpars. (F), (G), and (I) as (E), (F), and (G), respectively. Former subpar. (E) redesignated (D).

Pub. L. 105–33, § 10208(e)(2)Subsec. (h)(4)(H). , added subpar. (H) and struck out former subpar. (H) which read as follows: “Resolution Funding Corporation.”

Pub. L. 105–33, § 10208(e)(2)Subsec. (h)(4)(I). , redesignated subpar. (I) as (G).

Pub. L. 105–33, § 10208(f)Subsec. (j)(2) to (5). , added pars. (2) to (5) and struck out former pars. (2) to (5) which related to reduction in payments made under contracts, delayed reduction in outlays permissible, uniform percentage rate of reduction and other limitations, and no double reduction for agricultural price support and income protection programs.

Pub. L. 105–33, § 10208(g)(1)Subsec. (k)(1). , struck out “other than a trust or special fund account” after “from any account” and inserted “, except as provided in paragraph (5)” before period.

Pub. L. 105–33, § 10208(g)(2)Subsec. (k)(6). , amended par. (6) generally. Prior to amendment, par. (6) read as follows: “Except as otherwise provided, sequestration in trust and special fund accounts for which obligations are indefinite shall be taken in a manner to ensure that obligations in the fiscal year of a sequestration are reduced, from the level that would actually have occurred, by the applicable sequestration percentage.”

lPub. L. 104–193l1996—Subsecs. (k), (). redesignated subsec. () as (k) and struck out former subsec. (k) which related to special rules for JOBS portion of AFDC, providing that any order under section 904 accomplish full amount of any required sequestration of job opportunities and basic skills training program, and setting forth new allotment formula.

Pub. L. 101–508, § 13101(d)(1)1990—Subsec. (a). , amended subsec. (a) generally, substituting provisions relating to automatic spending increases for provisions relating to effect of reductions and sequestrations.

Pub. L. 101–508, § 13101(d)(3)section 904 of this titlesection 902 of this titleSubsec. (b). , substituted “” for “” in pars. (1) to (3).

Pub. L. 101–508, § 13101(d)(2), redesignated subsec. (c) as (b). Former subsec. (b) redesignated (h).

Pub. L. 101–508, § 13101(d)(4)Subsec. (c). , inserted after first sentence “No State’s matching payments from the Federal Government for foster care maintenance payments or for adoption assistance maintenance payments may be reduced by a percentage exceeding the applicable domestic sequestration percentage.”

Pub. L. 101–508, § 13101(d)(3)section 904 of this titlesection 902 of this title, substituted “” for “”.

Pub. L. 101–508, § 13101(d)(2), redesignated subsec. (f) as (c). Former subsec. (c) redesignated (b).

Pub. L. 101–508, § 13101(d)(5)section 902 of this titleSubsec. (d)(1). , amended par. (1) generally. Prior to amendment, par. (1) read as follows: “The maximum permissible reduction for the health insurance programs under title XVIII of the Social Security Act for any fiscal year, pursuant to an order issued under , consists only of a reduction of—

“(A) 1 percent in the case of fiscal year 1986, and

section 902(a)(4)(B)(ii) of this title“(B) 2 percent (or such higher percentage as may apply as determined in accordance with ) in the case of any subsequent fiscal year,

in each separate payment amount otherwise made for a covered service under those programs without regard to this subchapter.”

Pub. L. 101–508, § 13101(d)(6)Subsec. (d)(2)(C). , struck out subpar. (C) which read as follows: “For purposes of this paragraph, the effective period of a sequestration order for fiscal year 1986 is the period beginning on , and ending on .”

Pub. L. 101–508, § 13101(d)(2)Subsec. (e). , redesignated subsec. (k) as (e). Former subsec. (e) redesignated (f).

Pub. L. 101–508, § 13101(d)(3)section 904 of this titlesection 902 of this titleSubsec. (e)(1). , substituted “” for “”.

Pub. L. 101–508, § 13101(d)(3)section 904 of this titlesection 902 of this titleSubsec. (f). , substituted “” for “”.

Pub. L. 101–508, § 13101(d)(2), redesignated subsec. (e) as (f). Former subsec. (f) redesignated (c).

Pub. L. 101–509, § 529 [title I, § 101(b)(4)(H)]section 5304 of title 5Subsec. (g)(1). , in closing provisions, inserted “(as increased by any amount payable under or section 302 of the Federal Employees Pay Comparability Act of 1990)” after “pay system” and substituted “5303” for “5305”.

Pub. L. 101–508, § 13101(d)(3)section 904 of this titlesection 902 of this title, substituted “” for “”.

Pub. L. 101–509, § 529 [title I, § 101(b)(2)(A)]Subsec. (g)(2)(A). , substituted “5302(1)” for “5301(c)”.

Pub. L. 101–508, § 13101(d)(2)Subsec. (h). , redesignated subsec. (b) as (h). Former subsec. (h) redesignated (i).

Pub. L. 101–508, § 13101(d)(3)section 904 of this titlesection 902 of this titleSubsec. (h)(1). , substituted “” for “”.

Pub. L. 101–508, § 13101(d)(2)Subsec. (i). , redesignated subsec. (h) as (i) and struck out former subsec. (i) which related to treatment of mine worker disability compensation increases as automatic spending increases.

Pub. L. 101–508, § 13101(d)(3)section 904 of this titlesection 902 of this titleSubsec. (i)(1), (2)(A). , substituted “” for “”.

Pub. L. 101–508, § 13101(d)(3)section 904 of this titlesection 902 of this titleSubsec. (j). , substituted “” for “” wherever appearing in pars. (2) to (5).

Pub. L. 101–508, § 13101(d)(2)Subsec. (k). , added subsec. (k). Former subsec. (k) redesignated (e).

lPub. L. 101–508, § 13101(d)(2)llSubsec. (). , added subsec. () and struck out former subsec. () which related to treatment of obligated balances.

Pub. L. 101–73, § 743(b)(1)1989—Subsec. (b)(4)(C). , substituted “Office of Thrift Supervision” for “Federal Home Loan Bank Board”.

Pub. L. 101–73, § 743(b)(2)Subsec. (b)(4)(D). , substituted “Office of Thrift Supervision” for “Federal Savings and Loan Insurance Corporation”.

Pub. L. 101–73, § 743(b)(3)Subsec. (b)(4)(H), (I). , added subpars. (H) and (I).

Pub. L. 100–119, § 102(b)(2)section 651(c)(2) of this titlesection 902 of this title1987—Subsec. (a)(2). , amended par. (2) generally. Prior to amendment, par. (2) read as follows: “Any amount of new budget authority, unobligated balances, obligated balances, new loan guarantee commitments, new direct loan obligations, spending authority (as defined in ), or obligation limitations which is sequestered or reduced pursuant to an order issued under is permanently cancelled, with the exception of amounts sequestered in special or trust funds, which shall remain in such funds and be available in accordance with and to the extent permitted by law, including the provisions of this Act.”

Pub. L. 100–86Subsec. (b)(4). added par. (4).

Pub. L. 100–119, § 104(a)(3)Subsec. (b)(4)(G). , added subpar. (G).

Pub. L. 100–119, § 102(b)(11)section 902(a)(4)(B)(ii) of this titleSubsec. (d)(1)(B). , inserted “(or such higher percentage as may apply as determined in accordance with )”.

Pub. L. 100–119, § 104(a)(4)Subsec. (e). , substituted “Notwithstanding any change in the display of budget accounts, any order” for “Any order”.

lPub. L. 100–119, § 102(b)(3)lsection 902 of this titlesection 901(d)(3) of this titlesection 902 of this titleSubsec. (). , amended subsec. () generally, striking out provisions which had created an “existing contract” exception to the rule of obligated balances not being subject to reduction under an order issued under , under which existing contracts in major functional category 050 (other than (A) those contracts which included a specified penalty for cancellation or modification by the Government and which if so cancelled or modified would have resulted (due to such penalty) in a net loss to the Government for the fiscal year, and (B) those contracts the reduction of which would have violated the legal obligations of the Government) were subject to reduction, in accordance with , under an order issued under .

Pub. L. 99–5141986—Subsec. (h)(2)(B). substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”, which for purposes of codification was translated as “title 26” thus requiring no change in text.

Statutory Notes and Related Subsidiaries

Effective Date of 2024 Amendment

Pub. L. 118–159, div. E, title LVII, § 5701(b)138 Stat. 2461

50 U.S.C. 1601“The amendments made by subsection (a) [amending and repealing provisions set out as notes below] shall apply as if enacted on the day before the date on which the national emergency concerning the novel coronavirus disease (COVID–19) outbreak declared by the President on , under the National Emergencies Act ( et seq.) terminates.”
, , , provided that:

Pub. L. 118–3section 1621 of Title 50[The national emergency concerning the COVID–19 outbreak terminated on , see , set out as a note under , War and National Defense.]

Effective and Termination Dates of 2020 Amendment

Pub. L. 116–260, div. N, title II, § 235(b)134 Stat. 1959Pub. L. 118–159, div. E, title LVII, § 5701(a)(1)138 Stat. 2461

“The treatment of payments made from the Railroad Unemployment Insurance Account pursuant to the amendment made by subsection (a) [amending this section] shall take effect 7 days after the date of enactment of the Continued Assistance to Rail Workers Act of 2020 [].”
, , , as amended by , , , provided that:

Pub. L. 116–260, div. N, title II, § 235(c)134 Stat. 1959section 235(a) of Pub. L. 116–260Pub. L. 118–159, div. E, title LVII, § 5701(a)(2)138 Stat. 2461, , , which provided that the amendments made by to this section would be repealed 30 days after the date on which the national emergency concerning the novel coronavirus disease (COVID–19) outbreak declared by the President on , under the National Emergencies Act terminated, was repealed by , , . See Effective Date of 2024 Amendment note above.

Effective Date of 2013 Amendment

Pub. L. 112–239, div. A, title X, § 1076(a)126 Stat. 1947Pub. L. 112–81, , , provided that the amendment made by section 1076(a)(9) is effective , and as if included in as enacted.

Effective Date of 2010 Amendment

Pub. L. 111–203, title III, § 351124 Stat. 1546

section 1438 of Title 12section 1438 of Title 12Pub. L. 111–203“Except as provided in section 364(a) [amending , Banks and Banking, and enacting provisions set out as a note under ], the amendments made by this subtitle [subtitle E (§§ 351–378) of title III of , see Tables for classification] shall take effect on the transfer date.”
, , , provided that:

section 351 of Pub. L. 111–203section 5301 of Title 12[For definition of “transfer date” as used in , set out above, see , Banks and Banking.]

Effective Date of 1996 Amendment

Pub. L. 104–193section 116 of Pub. L. 104–193section 601 of Title 42Amendment by effective , with transition rules relating to State options to accelerate such date, rules relating to claims, actions, and proceedings commenced before such date, rules relating to closing out of accounts for terminated or substantially modified programs and continuance in office of Assistant Secretary for Family Support, and provisions relating to termination of entitlement under AFDC program, see , set out as a note under , The Public Health and Welfare.

Effective Date of 1990 Amendment

Pub. L. 101–509Pub. L. 101–509section 5301 of Title 5Amendment by effective on such date as the President shall determine, but not earlier than 90 days, and not later than 180 days, after , see section 529 [title III, § 305] of , set out as a note under , Government Organization and Employees.