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This section revises the baseline calculation under the Balanced Budget and Emergency Deficit Control Act of 1985 (BBEDCA) (2 U.S.C. 907), which projects future new budget authority, outlays, revenues, surpluses, or deficits assuming continuation of current policies and is used for discretionary spending caps, sequestration, and PAYGO enforcement. Specifically, it (1) redefines the baseline to project current-year levels of discretionary appropriations (excluding emergency-designated and supplemental resources) with no inflation or other adjustments; (2) assumes direct spending and receipts operate as specified in current law; and (3) makes conforming amendments to the Congressional Budget Act of 1974 and Social Security Act to remove superseded BBEDCA baseline references. (Thus, the revised baseline freezes discretionary spending projections at current-year nominal levels.)
This section requires the Congressional Budget Office (CBO) semiannual report to the House and Senate Budget Committees under Section 202(e)(1) of the Congressional Budget and Impoundment Control Act of 1974 to include alternative fiscal scenarios, as deemed appropriate and prepared in consultation with those committees.