Sponsors (9)
Requires the OMB Director to issue multi-year sequestration orders that offset emergency spending by producing outlay savings equal to one-fifth of the emergency amount each year for five years. Sets rules for how those sequestrations are applied, exempts certain mandatory programs (like Social Security, Medicare, many defense and VA accounts), defines what counts as "emergency spending," and forces committees and the House to supply detailed justifications showing proposed emergency spending meets statutory emergency definitions.
The Director of the Office of Management and Budget must, on October 1 of the fiscal year following any fiscal year that includes emergency spending and on each of the 4 following fiscal years, issue a sequestration order reducing total budgetary resources so that outlay savings equal one-fifth of the total amount of that emergency spending.
The OMB Director must submit written notice to Congress on the date of any sequestration order and include a list of any accounts affected by the order.
If the emergency spending is discretionary, any sequestration for that spending may only be applied to discretionary accounts; if the emergency spending is direct (mandatory) spending, any sequestration may only be applied to direct spending accounts.
Except as provided in the exemptions subsection, and notwithstanding any other law, no account is exempt from reduction under a sequestration ordered under this section.
Sequestration reductions shall be applied at a uniform rate across all programs and activities that are subject to sequestration.
Who is affected and how:
Federal executive agencies and OMB: OMB must create and execute multi-year sequestration orders; agencies will face planned outlay reductions in non-exempt accounts when sequestration orders take effect. Agencies administering discretionary and some mandatory programs (not exempt) may see reduced available outlays spread over five years.
Recipients of federal programs and services (grantees, contractors, beneficiaries): Programs that are not exempt could experience lower funding or delayed payments because sequestration reduces outlays; grants, contracts, and service funding may be reduced to meet required savings.
Congress and congressional committees: Committees must prepare and transmit detailed justifications when labeling spending as an emergency. The House will receive and consider these justifications, adding procedural steps and documentation requirements to the emergency-appropriations process.
Non-exempt domestic programs and domestic discretionary spending: These are the likely pool to absorb required outlay reductions, which could mean fewer program resources, grant awards, or slower implementation of financed activities.
Protected groups and programs: Major mandatory programs explicitly exempted (Social Security, Medicare, many VA and defense accounts, some Railroad Retirement benefits) will not be subject to the sequestrations, preserving benefit flows for those populations.
Overall effect: The legislation constrains how emergency-designated spending affects the federal budget by imposing phased offsets, increases paperwork and justification requirements for emergency claims, and shifts the fiscal impact onto non-exempt accounts through planned multi-year outlay reductions.
Last progress June 5, 2025 (8 months ago)
Introduced on June 5, 2025 by Marlin A. Stutzman
Referred to the Committee on the Budget, and in addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.