((a)) ** Social security benefits and tier I railroad retirement benefits** Benefits payable under the old-age, survivors, and disability insurance program established under title II of the Social Security Act ( et seq.), and benefits payable under sections 231b and 231c  of title 45, shall be exempt from reduction under any order issued under this subchapter.42 U.S.C. 4011

((b)) ** Veterans programs** The following programs shall be exempt from reduction under any order issued under this subchapter:

All programs administered by the Department of Veterans Affairs.

Special benefits for certain World War II veterans (28–0401–0–1–701).

((c)) ** Net interest** No reduction of payments for net interest (all of major functional category 900) shall be made under any order issued under this subchapter.

((d)) ** Refundable income tax credits and certain elective payments**

((1)) ** Refundable income tax credits** Payments to individuals made pursuant to provisions of title 26 establishing refundable tax credits shall be exempt from reduction under any order issued under this subchapter.

((2)) ** Certain elective payments** Payments made to taxpayers pursuant to elections under subsection (d) of , or amounts treated as payments which are made by taxpayers under paragraph (1) of such subsection, shall be exempt from reduction under any order issued under this subchapter.section 48D of title 26

((e)) ** Non-defense unobligated balances** Unobligated balances of budget authority carried over from prior fiscal years, except balances in the defense category, shall be exempt from reduction under any order issued under this subchapter.

((f)) ** Optional exemption of military personnel**

((1)) ** In general** The President may, with respect to any military personnel account, exempt that account from sequestration or provide for a lower uniform percentage reduction than would otherwise apply.

((2)) ** Limitation** The President may not use the authority provided by paragraph (1) unless the President notifies the Congress of the manner in which such authority will be exercised on or before the date specified in for the budget year.section 904(a) of this title

((g)) ** Other programs and activities**

((1))

((A)) The following budget accounts and activities shall be exempt from reduction under any order issued under this subchapter:

((B)) The following Federal retirement and disability accounts and activities shall be exempt from reduction under any order issued under this subchapter:

((2)) Prior legal obligations of the Government in the following budget accounts and activities shall be exempt from any order issued under this subchapter:

((h)) ** Low-income programs** The following programs shall be exempt from reduction under any order issued under this subchapter:

Academic Competitiveness/Smart Grant Program (91–0205–0–1–502).

Child Care Entitlement to States (75–1550–0–1–609).

Child Enrollment Contingency Fund (75–5551–0–2–551).

Child Nutrition Programs (with the exception of special milk programs) (12–3539–0–1–605).

Children’s Health Insurance Fund (75–0515–0–1–551).

Commodity Supplemental Food Program (12–3507–0–1–605).

Contingency Fund (75–1522–0–1–609).

Family Support Programs (75–1501–0–1–609).

Federal Pell Grants under .section 1070a of title 20

Grants to States for Medicaid (75–0512–0–1–551).

Payments for Foster Care and Permanency (75–1545–0–1–609).

Supplemental Nutrition Assistance Program (12–3505–0–1–605).

Supplemental Security Income Program (28–0406–0–1–609).

Temporary Assistance for Needy Families (75–1552–0–1–609).

((i)) ** Economic recovery programs** The following programs shall be exempt from reduction under any order issued under this subchapter:

GSE Preferred Stock Purchase Agreements (20–0125–0–1–371).

Office of Financial Stability (20–0128–0–1–376).

Special Inspector General for the Troubled Asset Relief Program (20–0133–0–1–376).

((j)) ** Split treatment programs** Each of the following programs shall be exempt from any order under this subchapter to the extent that the budgetary resources of such programs are subject to obligation limitations in appropriations bills:

Federal-Aid Highways (69–8083–0–7–401).

Highway Traffic Safety Grants (69–8020–0–7–401).

Operations and Research NHTSA and National Driver Register (69–8016–0–7–401).

Motor Carrier Safety Operations and Programs (69–8159–0–7–401).

Motor Carrier Safety Grants (69–8158–0–7–401).

Formula and Bus Grants (69–8350–0–7–401).

Grants-In-Aid for Airports (69–8106–0–7–402).

((k)) ** Identification of programs** For purposes of subsections (b), (g), and (h), each account is identified by the designated budget account identification code number set forth in the Budget of the United States Government 2010–Appendix, and an activity within an account is designated by the name of the activity and the identification code number of the account.