Budget Enforcement Procedures: Senate's Pay-As-You-Go (PAYGO) Rule

^Pr^ep^ar^{ed f}^o^r^M^e^m^b^ers^an^d^Com^mⁱ^t^t^ees^of^C^ong^r^e^ss

Introduc tion ..................................................................................................................................... 1
Current Features of the Senate PAYGO Rule..................................................................................2
Legislative History of the Senate PAYGO Rule..............................................................................3
Key Changes to the Senate PAYGO Rule.................................................................................4
Consideration of Proposed Changes to the Senate PAYGO Rule.............................................6 ^th
Action in the 107 Congress...............................................................................................6 ^th
Action in the 108 Congress...............................................................................................7 ^th
Action in the 109 Congress...............................................................................................9 ^th
Action in the 110 Congress...............................................................................................9
Procedural Actions Under the Senate PAYGO Rule.....................................................................10
Table 1. Key Changes to the Senate PAYGO Rule..........................................................................6
Table 2. Procedural Actions Under the Senate PAYGO Rule, Calendar Years 1993-2007...........12
Appendix. Text of the Senate Pay-As-You-Go (PAYGO) Rule.....................................................15
Author Contact Information..........................................................................................................16

The Senate pay-as-you-go, or PAYGO, rule generally requires that any legislation projected to
increase direct spending or reduce revenues must also include equivalent amounts of direct
spending cuts, revenue increases, or a combination of the two, so that the legislation does not ¹
increase the on-budget deficit over a six-year period and an 11-year period. Without such
offsetting provisions, the legislation would require the approval of at least 60 Senators to waive
the rule and be considered on the Senate floor.
Direct spending, also referred to as mandatory spending, is provided or controlled by laws other
than appropriations acts, generally continues without any annual legislative action, and provides
spending authority for such programs as Medicare, unemployment compensation, and federal ²
retirement programs. It is distinguished from discretionary spending, which is controlled through
the annual appropriations process. Furthermore, direct spending is under the jurisdiction of the
respective authorizing committees, while discretionary spending is under the jurisdiction of the
Senate Committee on Appropriations. Revenues, which are under the jurisdiction of the Senate
Committee on Finance, are the funds collected from the public primarily as a result of the federal ³
government’s exercise of its sovereign powers. They consist of receipts from individual income
taxes, social insurance taxes (or payroll taxes, such as Social Security and Medicare taxes),
corporate income taxes, excise taxes, duties, gifts, and miscellaneous receipts.
The Senate PAYGO rule does not apply to direct spending or revenues generated under existing
law; it applies only to legislation considered by the Senate. Consequently, direct spending may
increase and revenues may decline in any fiscal year due to factors beyond the control of the
PAYGO rule.
A similar statutory PAYGO requirement, as well as limits on discretionary spending, was
established by the Budget Enforcement Act of 1990 (BEA, Title XIII of P.L. 101-508, the
Omnibus Budget Reconciliation Act of 1990, 104 Stat. 1388-573-1388-630) and was extended ⁴
twice, in 1993 and 1997. Under the statutory PAYGO requirement, the projected net effect of
new direct spending and revenue legislation enacted during each session of Congress could not
cause a positive balance (reflecting an increase in the deficit or a reduction in the surplus) on a
multiyear PAYGO “scorecard.” For each fiscal year, covering a rolling six-year period through
FY2006, this scorecard maintained the balances of the accumulated budgetary effects of laws
enacted during the session and prior years. The statutory PAYGO requirement was enforced by
sequestration, which involved automatic, largely across-the-board spending cuts in non-exempt

¹^T^h^e^on-^b^udg^e^t^de^fⁱ^c^{it e}^x^c^l^ude^s^the^Socⁱ^a^l^Se^c^u^r^ity^tr^us^{t f}^{und s}^u^r^p^l^u^s^e^s^a^{nd t}^h^e^ne^{t c}^a^s^{h f}^l^ow^of^the^U^.^S.^Pos^t^a^l
^S^e^rvi^ce.
²^T^h^e^r^u^le^r^e^f^e^r^s^{to dir}^e^c^t^s^p^eⁿ^dⁱ^ng^“^a^s^tha^t^te^r^m^is^de^fⁱ^ne^{d by}^{, a}^{nd inte}^r^p^r^e^te^{d f}^o^r^pur^pos^e^s^of^,”^the^B^a^la^nc^e^d^B^udg^e^t
^a^{nd Em}^e^r^g^e^nc^y^D^e^fⁱ^c^{it Control}^A^c^{t of}¹⁹⁸^{5 (T}^itle^II^of^P^.^L^.^99-¹⁷⁷^,^{2 U.}^S.C.⁹⁰^{0 e}^t^se^q.)^,^c^o^m^m^only^k^now^{n a}^s^the
^G^r^a^m^m^-^Rudm^aⁿ^-Holling^s^A^c^{t, a}^s^a^m^e^nde^{d. Se}^c^tⁱ^on²⁵^0(c⁾⁽⁸⁾^of^th^e^a^c^t^sta^t^e^s^tha^t^“^‘^dire^c^t^speⁿ^dⁱ^ng^’^m^e^aⁿ^s—(^A⁾
^budg^e^t^a^u^t^hor^ity^prov^ide^d^by^law^othe^{r t}^h^aⁿ^a^p^pro^p^ria^tⁱ^ons^a^c^t^s^;^(B^{) e}ⁿ^title^m^e^{nt a}^u^thor^ity^{; a}^{nd (C) t}^h^e^f^{ood s}^t^a^m^p
^pr^og^r^a^m^.^”
³^Othe^{r le}^gⁱ^sla^tiv^e^c^o^m^m^itte^e^s^m^a^y^ha^v^e^jurisdic^tio^{n ov}^e^r^le^gⁱ^sla^tio^{n a}^f^f^e^c^ting^a^s^m^a^{ll portio}^{n of}^re^v^e^nue^s.
⁴^T^h^e^BEA^a^m^e^nde^{d the}^Ba^la^nc^e^d^Budg^e^t^aⁿ^d^Em^e^r^ge^nc^y^De^fⁱ^c^{it C}^ontr^o^{l A}^c^{t (T}^itle^{II of}^P^.^L^.⁹⁹^-1⁷⁷^{, 99}^Sta^t^.¹⁰³⁸^-
¹¹⁰^1),^c^o^m^m^only^k^now^{n a}^s^the^Gra^m^m^-^Rudm^aⁿ^-Holling^s^A^c^{t. T}^h^e¹⁹^{93 a}^nd¹⁹⁹⁷^e^x^te^{nsions w}^e^re^inc^l^ude^{d in}^T^itle
^X^I^V^of^the^Om^nibus^Budg^e^t^Re^c^onc^ilia^ti^{on A}^c^{t of}¹⁹^{93 (}^P^.L^.¹^03-^66,¹⁰⁷^Sta^t^.⁶⁸^3-6^{85) a}^{nd t}^h^e^Bu^dg^e^t^Enf^o^rc^e^m^eⁿ^t
^A^c^{t o}^f¹⁹⁹^{7 (T}^itle^{X of}^P^.^L^.¹^05-^33,¹¹¹^Sta^t^.⁶⁷^7-7^12),^re^spe^c^tiv^e^l^y^.

programs.⁵ This statutory PAYGO requirement, however, effectively expired at the end of ⁶
FY2002 (i.e., September 30, 2002).
The Senate PAYGO rule differs from the statutory PAYGO requirement in that it is enforced by a
point of order during consideration of legislation instead of by sequestration after legislation is
enacted into law. In addition, the Senate PAYGO rule requires deficit neutrality in a six-year
period and an 11-year period whereas the statutory PAYGO rule required deficit neutrality in each
year covering a six-year period, through FY2006.
This report explains the current features of the Senate PAYGO rule, describes its legislative
history, including key changes to the rule since it was established in 1993, and reviews Senate ⁷
procedural actions under the rule.

The current Senate PAYGO rule prohibits the consideration of direct spending or revenue
legislation that is projected to increase or cause an on-budget deficit in either of two time periods:
(1) the six-year period consisting of the current fiscal year, the budget year, and the four ensuing
fiscal years; and (2) the 11-year period consisting of the current year, the budget year, and the ⁸
ensuing nine fiscal years. The rule generally requires that each measure (including amendments)
affecting direct spending and revenues not increase the on-budget deficit in either of the two time ⁹
periods specified. That is, to comply with the rule, each measure projected to increase direct
spending or reduce revenues must also include changes to existing law that would result in a
reduction in direct spending, an increase in revenues, or both, by equivalent amounts. The full
text of the Senate PAYGO rule in its current form is provided in Appendix.

⁵^F^o^{r f}^u^rt^h^e^{r in}^f^o^rm^atioⁿ^on^t^h^{e statu}^t^o^r^y^P^A^{YGO req}^uⁱ^rem^eⁿ^t^,^see^CRS^Rep^o^r^t⁹⁸^-72¹^,^Intr^od^uc^tioⁿ^{to t}^h^e^Fe^de^ral
^B^u^dg^et^P^r^o^cess^{, by}^R^obe^r^t^K^e^it^h;^a^{nd C}^R^S^R^e^por^{t R}^L³¹¹⁹⁴^,^P^a^y^-^As^-^Y^ou-^G^o^Re^q^u^ir^e^m^eⁿ^{t f}^o^r^FY²⁰^02:^A^Pr^oc^e^d^ur^al
^Assessmen^t^{, by}^Robe^{rt K}^e^ith.
⁶^A^t^the^e^nd^of^the¹⁰⁷^th^C^ong^r^e^s^s^,^the^H^o^us^e^a^nd^Se^na^te^pa^s^s^e^{d a}ⁿ^d^P^r^e^s^ideⁿ^{t G}^e^or^g^e^W^.^B^u^s^h^sⁱ^gⁿ^e^d^le^gⁱ^s^l^a^tion⁽^P^.L^.
¹⁰⁷^-3¹²^,¹¹⁶^Stat.²⁴⁵⁶⁾^t^h^{at remo}^v^e^d^th^e^p^o^s^itiv^{e b}^a^lan^{ces o}ⁿ^t^h^e^P^A^YG^{O s}^c^o^r^ecard^th^ro^u^g^h^FY2⁰⁰⁶^,^th^ere^b^y
^p^r^even^tⁱⁿ^{g an}^y^f^u^t^u^re^P^A^Y^G^{O se}^q^u^e^st^ratⁱ^oⁿ^un^l^e^{ss t}^h^e^b^u^d^g^et^en^f^o^rcemen^t^m^e^ch^anⁱ^s^mⁱ^s^rest^o^r^ed^.^F^o^{r f}^u^rt^h^e^r
^inf^o^r^m^a^{tion, s}^e^e^C^R^S^R^e^por^{t R}^S²¹³⁷^8,^Te^r^m^inat^io^{n o}^f^the^“Pay^-^A^s^-^You-^G^o^{” (}^PAYG^O⁾^Re^q^u^ir^e^m^eⁿ^t^for^FY²⁰⁰³^a^nd
^Late^r^Ye^ar^s^,^by^Robe^{rt K}^e^ith.
⁷^For^a^dis^c^us^sⁱ^oⁿ^of^ot^he^r^is^s^u^e^s^r^e^la^te^{d to}^P^A^Y^G^O^r^u^le^s^,^s^e^e^C^R^S^R^e^por^{t R}^L³²⁸³^5,^P^A^Y^{GO Rules f}^o^{r Bud}^g^e^t
^Enfor^c^e^m^eⁿ^{t i}ⁿ^t^h^e^H^ous^e^an^{d Se}^nate^,^by^R^obe^r^t^K^e^{ith a}^{nd B}ⁱ^{ll H}^e^nif^f^J^r^.
⁸^T^h^e^“^budg^e^t^y^e^a^r^”^r^e^f^e^r^s^{to the}^fⁱ^s^c^a^l^y^e^a^r^tha^t^be^gⁱ^ns^{on O}^c^to^be^r¹^of^the^c^a^l^e^nda^r^y^e^a^r^{in w}^h^ic^{h the}^s^e^s^sⁱ^{on of}
^Coⁿ^g^{ress b}^e^gⁱⁿ^s^{. T}^h^{e “cu}^rren^t^fⁱ^scal^y^ear^{” is th}^{e f}ⁱ^scal^y^e^{ar i}^m^m^e^dⁱ^atel^y^p^r^ecedⁱⁿ^g^th^{e “b}^u^d^g^{et y}^ear.^”^T^a^k^eⁿ^literally^,
^b^e^t^w^een^Oct^o^b^e^{r an}^d^Decem^b^e^{r o}^f^an^y^gi^ven^y^ear,^t^h^{e req}^uⁱ^rem^eⁿ^t^w^o^u^l^d^co^{ver f}ⁱ^ve-an^d¹⁰^-^y^{ear p}^e^rⁱ^o^d^s^,ⁱⁿ^st^ead^o^f
^the^sⁱ^x^-^a^nd^11-^y^e^a^r^pe^rⁱ^ods^.
⁹^T^h^e^rule^de^fⁱ^ne^{s “}^d^ire^c^t^speⁿ^dⁱ^ng^le^gⁱ^sla^tion”^a^s^“^aⁿ^y^{bill, joi}ⁿ^{t re}^s^o^luti^on^{, a}^m^e^ndm^eⁿ^{t, m}^o^tion^[^s^uc^{h a}^s^a^m^o^{tion t}^o
^c^onc^{ur w}^{ith a}^H^o^us^e^a^m^eⁿ^d^m^eⁿ^{t], or c}^o^nf^e^r^eⁿ^c^e^re^{port tha}^t^a^f^f^e^c^t^s^dire^c^t^s^p^eⁿ^ding^a^s^tha^t^te^rm^is^de^fine^d^by^{... the}
^B^a^la^nc^e^d^B^udg^e^t^aⁿ^d^Em^e^r^g^e^ncy^D^e^fⁱ^c^{it C}^ontr^o^{l A}^c^{t of}¹⁹⁸^5.”^Se^c^tion²⁵⁰⁽^c⁾⁽⁸⁾^of^the^D^e^fⁱ^c^{it C}^ont^r^o^{l A}^c^{t s}^t^a^t^e^s^tha^t
^“^‘^dire^c^t^s^p^e^ndi^ng^{’ m}^e^aⁿ^s^—⁽^A^{) budg}^e^t^a^u^th^ority^prov^ide^d^by^la^w^o^t^he^{r tha}ⁿ^a^ppr^opr^ia^tio^ns^a^c^t^s^;^(B)^eⁿ^title^m^e^nt
^a^u^thor^ity^{; a}^{nd (}^C⁾^the^f^o^o^d^s^t^a^m^{p pr}^og^r^a^m^.^”^W^h^ile^{no s}^p^e^cⁱ^fⁱ^c^pr^ov^is^ion^of^the^r^u^le^de^fⁱ^ne^s^r^e^v^e^nue^le^gⁱ^s^l^a^{tion, t}^h^e^r^u^le
^pre^s^um^a^b^l^y^w^{ould a}^p^ply^{to a}ⁿ^y^{bill, jo}^int^re^solutⁱ^oⁿ^{, a}^m^e^ndm^eⁿ^{t, m}^o^tioⁿ^{or c}^o^nf^e^r^eⁿ^c^e^re^{port tha}^t^a^f^fe^c^t^{s re}^v^e^nue^{s, a}^s
^de^fⁱ^ne^{d in t}^h^e^te^x^t^a^bov^e^.^T^h^e^rul^e^e^x^plic^itly^e^x^c^l^ude^{s a}ⁿ^y^dire^c^t^sp^e^nding^aⁿ^{d re}^v^e^nue^pr^ov^isio^{n in}^a^c^onc^urreⁿ^t
^r^e^s^o^luti^on^on^the^bu^dg^e^t^or^t^h^a^t^a^f^f^e^c^t^s^“^t^he^f^u^{ll f}^unding^of^{, a}ⁿ^{d c}^oⁿ^tinua^ti^on^of^{, the}^de^posⁱ^t^ins^u^r^a^nc^e^g^u^a^r^aⁿ^te^e
^c^o^m^m^it^m^e^{nt in e}^f^f^e^c^t^on”^N^o^v^e^m^b^e^r^5,¹⁹⁹⁰^.

The Senate PAYGO rule provides for a “pay-as-you-go ledger” to record any projected deficit
reduction resulting from legislation (except reconciliation legislation) enacted since the beginning
of the calendar year and not accounted for in the baseline, as defined by the rule. This is
presumably intended to provide some flexibility to the bill-by-bill application of the requirement.
A measure projected to increase the on-budget deficit may use any deficit reduction balance on
this ledger as an offset to comply with the PAYGO rule.
The rule specifies that the levels of new direct spending and revenues for a fiscal year must be ¹⁰
determined on the basis of estimates made by the Senate Committee on the Budget (SBC).
Generally, the estimates used by the SBC would be based on the cost estimates prepared by the
Congressional Budget Office (CBO) and, for revenue legislation, the Joint Committee on
Taxation (JCT), but the SBC has the authority to make its own estimates, which may vary from
the CBO and JCT estimates. The rule also specifies that the estimates used in determining
whether or not a measure increases the on-budget deficit, and thus violates the PAYGO
requirement, must use the baseline surplus or deficit used for the most recently adopted budget
resolution. Congress usually uses the baseline provided by CBO. In producing its baseline
estimates, CBO projects revenues, spending, and deficit or surplus levels under existing law (i.e., ¹¹
assuming no legislative changes). For fiscal years not covered by the current budget resolution,
the estimates must be calculated using the rules set forth in Sections 257(b)-(d) of the Balanced
Budget and Emergency Deficit Control Act of 1985 (Title II of P.L. 99-177, as amended; 2 U.S.C. ¹²

900 et seq.).

The Senate PAYGO rule may be waived or set aside by unanimous consent. A motion to waive
the rule, or to sustain an appeal of the ruling of the presiding officer on the point of order, requires
an affirmative vote of three-fifths of the membership, duly chosen and sworn (i.e., 60 Senators if
no seats are vacant).
Finally, the current Senate PAYGO rule is set to expire on September 30, 2017.

The Senate PAYGO rule originated in a budget resolution in 1993; it has been modified and ¹³
extended five times in subsequent budget resolutions and once in a Senate simple resolution.
Moreover, other proposed modifications to the Senate PAYGO rule have been considered,

¹⁰^T^h^is^r^e^quir^e^m^e^{nt is}^c^ons^is^te^nt^w^{ith o}^t^he^r^bu^dg^e^t^-^r^e^la^te^{d rule}^{s. S}^p^e^cⁱ^fⁱ^c^a^ll^y^,^e^s^ti^m^a^te^{s b}^y^the^Se^na^te^Com^m^itte^e^on
^t^h^{e Bud}^g^et^al^so^m^u^st^b^e^u^s^ed^t^o^det^e^r^mⁱⁿ^{e an}^y^vi^o^l^atⁱ^oⁿ^s^o^f^t^h^{e ru}^l^e^{s asso}^ci^at^ed^wⁱ^t^h^t^h^{e an}^nu^al^bu^dget^reso^l^u^tⁱ^oⁿ^(see
^Se^c^tion³¹²^of^the^B^udg^e^t^A^c^t)^.
¹¹^Uⁿ^{til t}^h^e^e^x^pira^tioⁿ^of^the^prov^is^ions^of^the^Ba^la^nc^e^d^Bu^dg^e^t^a^nd^Em^e^r^g^e^ncy^D^e^fⁱ^c^{it Contro}^{l A}^c^{t of}¹⁹⁸⁵^{, a}^s
^am^e^nde^{d (}²^U^.^S.C^.⁹⁰^{0 e}^t^s^e^q.⁾^,^a^t^the^eⁿ^{d of}^FY²⁰⁰⁶^{, C}^B^O^w^a^s^r^e^quir^e^d^to^f^o^llow^the^pr^ov^is^ions^of^Se^c^tion²⁵⁷^of^the
^a^c^t^{in pr}^od^uc^ing^its^ba^se^line^pr^oje^c^tions^(se^e^ne^x^t^f^ootn^o^te^{). A}^t^the^be^gⁱⁿⁿⁱ^ng^of²⁰^07,^{CBO in}^dic^a^t^e^d^tha^t^{it w}^{ill f}^o^llow
^t^h^{ese p}^r^actⁱ^{ces u}ⁿ^tⁱ^l^dⁱ^rect^ed^o^t^h^e^rwⁱ^s^{e b}^y^Coⁿ^g^ress.^S^{ee CBO,}^The^Bud^g^e^t^an^{d Ec}^o^nom^ic^O^u^tlo^ok^:^Fis^c^{al Ye}^ar^s²⁰⁰⁸
^t^o²⁰¹⁷^,^{p. x}ⁱ^,^fⁿ^{. 1.}
¹²^Se^c^tion²⁵⁷^of^the^De^fⁱ^c^{it Contro}^{l A}^c^{t se}^ts^f^o^{rth c}^e^r^taⁱⁿ^a^s^s^u^m^p^tio^ns^r^e^g^a^r^d^ing^dir^e^c^t^s^p^eⁿ^di^ng^a^{nd r}^e^v^e^nue^s⁽^a^s^w^e^ll
^a^s^dis^c^r^e^tiona^r^y^s^p^e^nding⁾ⁱⁿ^c^a^l^c^u^la^ting^ba^s^e^line^pr^oje^c^tio^ns^.
¹³^Suc^h^pr^oc^e^dur^a^l^pr^ov^is^io^ns^m^a^y^be^inc^l^u^d^e^d^{in a}^bu^dg^e^t^r^e^s^o^luti^on^un^de^r^the^a^u^th^or^ity^pr^ov^ide^d^by^Se^c^.³⁰¹⁽^b)⁽⁴⁾^,
^t^h^{e so}^-cal^l^e^d^“el^astⁱ^c^cl^au^se,^”^o^f^t^h^{e Bu}^d^g^et^A^c^t^.^T^hⁱ^s^sectⁱ^oⁿ^gi^{ves Co}ⁿ^g^{ress t}^h^{e op}^tⁱ^oⁿ^t^oⁱⁿ^cl^ud^{e i}ⁿ^{a b}^u^d^g^et
^r^e^s^o^luti^on^othe^r^m^a^tte^r^s^a^{nd pr}^oc^e^dur^e^s^c^ons^is^teⁿ^t^w^{ith the}^pur^pos^e^s^of^the^B^udg^e^t^A^c^t.

especially during the consideration of the annual budget resolution, over the past several
Congresses.
In 1993, the Senate established the PAYGO rule as a provision in the FY1994 budget resolution ^rd
(H.Con.Res. 64, 103 Congress) for the purpose of preventing the deficit reduction expected to
be achieved in a subsequent reconciliation bill from being used to offset the costs of any new ¹⁴
direct spending or revenue legislation. Section 12(c) of H.Con.Res. 64 prohibited the
consideration of any direct spending and revenue legislation that would increase the deficit in the
FY1994 budget resolution for any fiscal year through FY1998 or would increase the deficit for
any other fiscal year through FY2003. In this initial form, the Senate PAYGO rule had no
expiration date.
Following the establishment of the PAYGO rule in 1993, the Senate has modified it several times.
The changes in the rule have occurred for several reasons, including to establish and extend an
expiration date, to allow on-budget surpluses to offset revenue reductions and direct spending
increases, and to exempt increases in the deficit assumed by the annual budget resolution. The
key changes are summarized in Table 1 at the end of this section.
In 1994, a year after establishing the PAYGO rule, the Senate modified the rule to require direct
spending and revenue legislation to be deficit neutral for any one of three time periods: (1) the
first fiscal year covered by the most recently adopted budget resolution; (2) the first five fiscal ¹⁵
years covered by the budget resolution; and (3) the next five fiscal years after that. In addition,
the modification provided that direct spending and revenue legislation would violate the rule only
if it increased the deficit individually and also increased the deficit when combined with any
legislation enacted since the enactment of the previous year’s reconciliation legislation (i.e., the
Omnibus Budget Reconciliation Act of 1993). This modification to the rule basically permitted
the use of any deficit reduction provided in other legislation to be used as an offset for any
subsequent deficit increasing legislation. The 1994 modification also added an expiration date of
September 30, 1998.
In 1995, the Senate modified the PAYGO rule to allow only deficit reduction resulting from
legislation enacted since the beginning of the calendar year to be used as an offset for subsequent ¹⁶
legislation in order to comply with the rule. The rule, however, expressly prohibited the use of

¹⁴^S^{ee U.}^S^.^C^oⁿ^g^ress,^Co^mmⁱ^t^t^{ee o}^f^Coⁿ^f^eren^ce,^C^onc^ur^r^e^{nt Re}^s^o^lu^tⁱ^on^Se^tti^ng^For^t^h^the^C^oⁿ^g^r^e^s^sⁱ^on^{al B}^u^d^g^e^t^for^the
^Uⁿ^ite^d^State^s^G^o^v^e^r^nm^eⁿ^{t for}^the^Fis^c^{al Ye}^ar^s¹⁹⁹⁴^{, 1}⁹⁹⁵^,¹⁹⁹⁶^{, 1}⁹⁹⁷^{, a}ⁿ^d¹⁹⁹⁸^,^con^f^eren^{ce rep}^o^r^t^t^o^acco^m^p^an^y^rd^st
^H^.^C^on.R^e^s^.⁶⁴^,¹⁰³^Co^ng^.,¹^se^{ss., (W}^a^s^hing^{ton: G}^P^O^,¹⁹⁹³^),^p.^{47. T}^h^e^re^c^o^nc^ilia^tioⁿ^{bill e}ⁿ^a^c^t^e^d^la^te^{r tha}^t
^se^ssion,^P^.^L^.¹⁰³^-6^{6 (the}^Om^nib^u^s^Budg^e^t^Re^c^onc^ilia^ti^{on A}^c^{t of}¹⁹^93),^w^a^{s e}^s^ti^m^a^te^{d a}^t^the^tim^e^a^s^r^e^duc^ing^the
^de^fⁱ^c^{it by}^a^{bout $}⁵⁰⁰^bi^llioⁿ^ov^e^r^FY¹⁹^94-^FY¹⁹⁹⁸^.
¹⁵^S^ectⁱ^o^{n 23}^o^f^H.^C^oⁿ^.^R^e^s.²¹^{8 (}¹⁰³^rd^Con^g^ress).^S^{ee U.}^S^.^Con^g^ress,^Co^mmⁱ^t^t^{ee o}^f^Coⁿ^f^er^en^ce,^Co^ncu^rren^t
^Re^s^o^luti^on^on^the^B^u^d^g^e^t^f^o^r^Fis^c^{al Ye}^ar¹⁹⁹⁵^,^con^f^eren^{ce rep}^o^r^t^t^o^acco^m^p^an^y^H.^Coⁿ^.^Res.²¹⁸^,¹⁰³^rd^C^ong^.,²^nd^sess.^,
⁽^W^a^s^hing^{ton: G}^P^O^,¹⁹⁹⁴⁾^{, p}^p^.¹⁸^-^{19 (}^l^e^g^is^la^tiv^e^te^x^t⁾^a^nd^pp.⁵⁴^-⁵^{6 (}^j^oⁱ^{nt e}^x^plaⁿ^a^t^or^y^s^t^a^t^em^eⁿ^t)^.
¹⁶^Se^c^tion²⁰²^of^H^.^C^on.R^e^s^.⁶⁷⁽¹⁰⁴^th^Coⁿ^g^ress).^S^{ee U.}^S^.^C^oⁿ^g^res^s^,^Co^mmⁱ^t^t^{ee o}^f^Coⁿ^f^er^en^ce,^Co^ncu^rren^t
^Re^s^o^luti^on^on^the^B^u^d^g^e^t^f^o^r^Fis^c^{al Ye}^ar¹⁹⁹⁶^,^con^f^eren^{ce rep}^o^r^t^t^o^acco^m^p^an^y^H.^Coⁿ^.^Res.⁶⁷^,¹⁰⁴^th^Cong^{., 1}^st^sess.^,
⁽^W^a^s^hing^{ton: G}^P^O^,¹⁹⁹⁵⁾^{, p}^p^.²⁶^-^{27 (}^l^e^g^is^la^tiv^e^te^x^t⁾^a^nd^p.^{91 (}^j^oⁱ^{nt e}^x^plaⁿ^a^t^or^y^s^t^a^t^em^eⁿ^t)^{. L}ⁱ^k^e^t^h^e^or^ig^ina^l^r^u^le
^e^s^ta^blis^he^{d i}ⁿ¹⁹⁹³^,^the¹⁹⁹⁵^r^u^le^a^l^s^o^c^oⁿ^t^aⁱ^ne^{d a}^pr^ov^is^ioⁿ^pr^e^v^eⁿ^ting^t^h^e^de^fⁱ^c^{it r}^e^duc^ti^{on e}^x^pe^c^t^e^d^to^be^a^c^h^ie^v^e^d
^f^r^o^m^eⁿ^a^c^t^m^e^{nt of}^a^subse^que^{nt r}^e^c^onc^ilia^tio^{n b}^{ill f}^r^om^be^ing^use^d^to^of^f^s^e^t^the^c^o^{sts of}^aⁿ^y^ne^w^dire^c^t^spe^nding^or
^r^e^v^e^nue^le^gⁱ^s^l^a^{tion. T}^h^e^s^ubs^e^q^ue^{nt r}^e^c^onc^il^ia^tio^{n le}^gⁱ^s^l^a^tion⁽^H^.R^.²⁴⁹¹⁾^{, h}^o^w^e^ve^r^,^w^a^s^{not e}ⁿ^a^c^t^e^d^{; it w}^a^s^v^e^toe^d^by
^t^h^{e P}^r^esi^d^en^t^.

the deficit reduction resulting from reconciliation legislation as an offset. The Senate also
extended the rule’s expiration date to September 30, 2002.
After decades of on-budget deficits, the federal government recorded a small on-budget surplus
for FY1999. Moreover, at the time, baseline budget projections showed on-budget surpluses ¹⁷
increasing each year well into the future. Subsequently, in 1999, the Senate modified the
PAYGO rule to reflect this change in the federal government’s budget outlook by allowing on-¹⁸
budget surpluses to be used to offset tax reductions or spending increases. That is, the rule was
modified to prohibit only direct spending and revenue legislation that was projected to cause an
on-budget deficit (or increase the on-budget deficit), instead of such legislation that was projected
to increase the unified budget deficit. The Senate retained the existing expiration date of
September 30, 2002.
In 2002, the rule was allowed to expire on September 30.¹⁹ Two weeks later, however, on October ^th
16, 2002, the Senate adopted S.Res. 304 (107 Congress), restoring and extending the PAYGO
rule through April 15, 2003. S.Res. 304 retained the basic formulation of the rule with one
addition. It was expanded to cover any direct spending or revenues included in appropriations
acts, effectively curtailing the use of such measures potentially to evade the rule (due to expired
discretionary spending limits and the absence of a budget resolution for FY2003).
The following year, as a provision in the FY2004 budget resolution (H.Con.Res. 95, 108^th
Congress), the Senate modified its PAYGO rule to exempt legislation implementing the direct
spending and revenue policy changes assumed in the most recently adopted budget resolution, ²⁰
even though it might have been projected to increase or cause an on-budget deficit. ^th
Reconciliation legislation considered in 2003 (S. 1054 and H.R. 2, 108 Congress), for example,
although projected at the time to increase the on-budget deficit, did not violate the rule because it
was consistent with the reconciliation instructions contained in Title II of the FY2004 budget
resolution. The Senate also extended the rule through September 30, 2008.
The latest key change to the Senate PAYGO rule occurred in 2007 and reflects the rule in its ²¹
current form. As a provision to the FY2008 budget resolution, the Senate modified its PAYGO
rule by eliminating the exemption for direct spending and revenue changes assumed in the budget
resolution. In addition, consistent with the PAYGO rule in the House, the Senate changed the
rule’s applicable time periods to prohibit an on-budget deficit increase in either of two time
periods: the current fiscal year and the following five fiscal years; and the current fiscal year and

¹⁷^Se^e^C^ong^r^e^s^sⁱ^ona^{l B}^udg^e^t^O^f^fⁱ^ce,^The^Ec^on^om^ic^a^{nd B}^u^d^g^e^t^O^u^tlo^ok^:^Fis^c^al^Ye^ar^s²⁰⁰⁰^-²⁰⁰⁹^{, (}^W^a^s^hing^to^{n: C}^B^O^,
¹⁹⁹⁹⁾^,^Sum^m^a^r^y^T^a^ble^{1, p.}^xⁱ^v^.
¹⁸^Se^c^tion²⁰⁷^of^H^.^C^on.R^e^s^.⁶⁸⁽¹⁰⁶^th^Coⁿ^g^ress).^S^{ee U.}^S^.^C^oⁿ^g^res^s^,^Co^mmⁱ^t^t^{ee o}^f^Coⁿ^f^er^en^ce,^Co^ncu^rren^t
^Re^s^o^luti^on^on^the^B^u^d^g^e^t^f^o^r^Fis^c^{al Ye}^ar²⁰⁰⁰^,^con^f^eren^{ce rep}^o^r^t^t^o^acco^m^p^an^y^H.^Coⁿ^.^Res.⁶⁸^,¹⁰⁶^th^Cong^{., 1}^st^sess.^,
⁽^W^a^s^hing^{ton: G}^P^O^,¹⁹⁹⁹⁾^{, p}^p^.²⁰^-^{21 (}^l^e^g^is^la^tiv^e^te^x^t⁾^a^nd^pp.⁷²^-⁷^{3 (}^j^oⁱ^{nt e}^x^plaⁿ^a^t^or^y^s^t^a^t^em^eⁿ^t)^{. A}^s^note^d^e^a^r^lie^r^,^the
^on-^bu^dg^e^t^de^fⁱ^c^{it e}^x^c^l^ude^s^the^So^cⁱ^a^l^Se^c^u^r^ity^tr^us^{t f}^{und s}^u^r^p^lus^e^s^a^{nd t}^h^e^ne^{t c}^a^s^{h f}^l^ow^of^the^U^.^S.^Pos^t^a^l^Se^r^v^ic^e^.
¹⁹^Cong^re^{ss did}ⁿ^o^{t c}^o^m^p^le^te^a^c^tion^{on a}ⁿ^FY²⁰⁰³^bu^dg^e^t^re^soluti^on^.^T^h^e^Se^na^te^Budg^e^t^Com^m^itte^e^re^porte^d^a
^FY²⁰⁰³^bu^dg^e^t^r^e^s^o^luti^on⁽^S^.C^on^.R^e^s^{. 10}⁰⁾^,^but^the^Se^na^te^di^{d n}^o^t^c^ons^ide^r^it^.
²⁰^Se^c^tion⁵⁰⁵^of^H^.^C^on.R^e^s^.⁹⁵⁽¹⁰⁸^th^Coⁿ^g^ress).^S^{ee U.}^S^.^C^oⁿ^g^res^s^,^Co^mmⁱ^t^t^{ee o}^f^Coⁿ^f^er^en^ce,^Co^ncu^rren^t
^Re^s^o^luti^on^on^the^B^u^d^g^e^t^f^o^r^Fis^c^{al Ye}^ar²⁰⁰⁴^,^con^f^eren^{ce rep}^o^r^t^t^o^acco^m^p^an^y^H.^Coⁿ^.^Res.⁹⁵^,¹⁰⁸^th^Cong^{., 1}^st^sess.^,
⁽^W^a^s^hing^{ton: G}^P^O^,²⁰⁰³⁾^{, p}^p^.²⁹^-^{30 (}^l^e^g^is^la^tiv^e^te^x^t⁾^a^nd^pp.¹^22-¹²³⁽^j^oⁱ^{nt e}^x^plaⁿ^a^t^or^y^s^t^a^t^em^eⁿ^t)^.
²¹^Se^c^tion²⁰¹^of^S.C^o^n.R^e^s^.²¹⁽¹¹⁰^th^Coⁿ^g^ress).^S^{ee U.}^S^.^Con^g^ress,^Co^mmⁱ^t^t^{ee o}^f^Coⁿ^f^er^en^ce,^C^onc^ur^r^e^nt
^Re^s^o^luti^on^on^the^B^u^d^g^e^t^f^o^r^Fis^c^{al Ye}^ar²⁰⁰⁸^,^con^f^eren^{ce rep}^o^r^t^t^o^acco^m^p^an^y^S^.^Coⁿ^.^Res.²¹^,¹¹⁰^th^Cong^{., 1}^st^sess.^,
⁽^W^a^s^hing^{ton: G}^P^O^,²⁰⁰⁷⁾^{, p}^p^.¹²^-^{13 (}^l^e^g^is^la^tiv^e^te^x^t⁾^a^nd^pp.¹^03,¹³³⁽^j^oⁱ^{nt e}^x^plaⁿ^a^t^or^y^s^t^a^t^em^eⁿ^t)^.

the following 10 fiscal years. Further information on the PAYGO rule in its current form is
provided in the “Current Features of the Senate PAYGO Rule” section, above.
Table 1. Key Changes to the Senate PAYGO Rule
^Effective^{Source o}^f^Ch^ange^Expiration^{Nature of Cha}^nge
^Date^Date
^04-0^1-^{Section 12(c) of}^rd^{None Rule}^established.
¹⁹⁹³^{H.Con.Res. 64 (103}
^{Congress), FY199}⁴
^{budget re}^solution
^05-1^2-^{Section 23 of}^09-3^0-19⁹⁸^{Applicable time periods modified}^{to prohibit a deficit}
¹⁹⁹⁴^{H.Con.Res. 218}^rd^{date added}^{increase in a}^{ny one of t}^{hree time}^{periods: first fiscal year;}
⁽¹⁰³^Congre^ss),^{total of first five fiscal years; and t}^{otal of fol}^{lowing five fiscal}
^FY1995^b^udget^years.
^resolution
^06-2^9-^{Section 202 of}^th^Exte^{nded to}^{Provided that only deficit reduction resulting f}^{rom legislation}
¹⁹⁹⁵^{H.Con.Res. 67 (104}^09-3^0-20⁰²^{enacted since t}^he^{beginning of t}^h^e^{calendar year (e}^xcept^any
^{Congress), FY199}⁶^{reconciliation leg}^islati^{on) could be used as a}ⁿ^{offset to}
^{budget re}^solution^{comply with the}^{rule .}
^04-1^5-^{Section 207 of}^Maintained^{Deficit neutrality req}^uirement^m^{odified s}^o^{that any on-}
¹⁹⁹⁹^{H.Con.Res. 68 (106}^th^09-3^0-20⁰²^{budget s}^urplu^{s could be}^{used to}^{offset reve}^nue^{reductions or}
^{Congress), FY200}⁰^date^{direct spending inc}^reases.
^{budget re}^solution
^10-1^6-^{Section 2(b) of S.Res.}^Exte^{nded to}^{Coverage of rule ex}^{panded to inc}^{lude reven}^{ue or direct}
²⁰⁰²³⁰⁴⁽¹⁰⁷^th^Cong^ress)^04-1^5-20⁰³^{spending c}^hange^{s in an}^{nual a}^ppro^{priations acts (due to}
^{expired discretionary s}^{pending limits and abse}^{nce of a}^budget
^{resolution for FY200}^3).
^04-1^1-^{Section 505 of}^th^Exte^{nded to}^Exem^{ption provided for direct sp}^{ending and rev}^en^{ue cha}^nges
²⁰⁰³^{H.Con.Res. 95 (108}^09-3^0-20⁰⁸^{assumed in t}^{he b}^{udget resolution}^{. Application of rule to}
^{Congress), FY200}⁴^{annual a}^ppro^{priations acts eliminated.}
^{budget re}^solution
^05-1^7-^{Section 201 of}^th^Exte^{nded to}^Exem^{ption for direct s}^{pending a}ⁿ^d^reven^{ue cha}^{nges as}^sumed
²⁰⁰⁷^S.Con.^{Res. 21 (11}⁰^09-3^0-20¹⁷^{in the b}^{udget resolution eliminated. Applicable time periods}
^{Congress), FY200}⁸^{modified to require on-budget de}^{ficit neutrality for two time}
^{budget re}^solution^{periods: the cur}^rent^{fiscal year an}^{d the following five fiscal}
^{years; and t}^{he cu}^rre^{nt fiscal year}^{and the following 10 fiscal}
^years.
Over the past several Congresses, the Senate PAYGO rule has drawn considerable attention on
the Senate floor, in most cases in the context of the annual budget resolution.

During the 107^th Congress, several attempts were made on the Senate floor to extend the PAYGO
rule before it was scheduled to expire on September 30, 2002. On June 5, 2002, Senators Judd
Gregg and Russell Feingold offered an amendment (S.Amdt. 3687) that would have extended

expiring budget enforcement procedures, including the Senate PAYGO rule, to H.R. 4775, the ²²
Supplemental Appropriations Act, 2002. The amendment fell on a point of order. The next day,
June 6, Senate Majority Leader Tom Daschle offered an amendment (S.Amdt. 3764) that would
have extended the Senate PAYGO rule, among other budget enforcement procedures, through ²³
FY2007 to H.R. 4775, but that amendment also fell on a point of order. Another attempt was
made on June 20, 2002, during consideration of S. 2514, the Defense Authorization Act for
FY2003. Senator Feingold offered an amendment (S.Amdt. 3915), which was modified by an
amendment (S.Amdt. 3916) offered by Senators Harry Reid and Kent Conrad, that also would
have extended the expiration date of the Senate PAYGO rule, among other things, through ²⁴
FY2007. This amendment also fell on a point of order.
Without any successful extension prior to its expiration, the Senate PAYGO rule, like many other ²⁵
budget enforcement procedures, expired on September 30, 2002. Subsequently, on October 16, ²⁶
2002, the Senate restored and extended the PAYGO point of order through April 15, 2003. The
Senate agreed by unanimous consent to S.Res. 304, as amended by the modified amendment ²⁷
offered by Senators Conrad, Pete Domenici, Gregg, and Feingold (S.Amdt. 4886).

During the 108^th Congress, in 2003, the Senate modified and extended its PAYGO rule in the
FY2004 budget resolution. The following year, in 2004, the Senate agreed to an amendment ^th
restoring the rule to its pre-108 Congress form in the FY2005 budget resolution, but ultimately it
did not agree to a conference report to the budget resolution, thereby retaining the version set
forth in the FY2004 budget resolution.

²²^T^h^e^am^e^ndm^eⁿ^{t w}^a^s^s^ubje^c^t^{to a}^poi^nt^of^or^de^r^u^nde^r^Se^c^.³⁰⁶^of^the^C^B^A^{, w}^h^ic^{h pr}^ohi^bits^c^o^ns^ide^r^a^tion^of^aⁿ^y
^m^e^a^s^ure^w^{ithin t}^h^e^juris^d^ic^tioⁿ^of^the^Bu^dg^e^t^Com^m^itte^e^unle^s^s^{it i}^s^r^e^por^te^d^by^the^B^udg^e^t^C^o^m^m^itt^e^e^,^is^dis^c^ha^r^g^e^d
^f^r^o^m^the^c^o^m^m^itte^e^,^{or is a}ⁿ^a^m^e^ndm^eⁿ^{t to suc}^h^a^m^e^a^s^ure^.^A^m^o^tion^{to w}^a^iv^e^the^poi^nt^of^orde^{r re}^quire^{s a}^t^h^re^e^-^fⁱ^f^t^hs
^vo^t^eⁱⁿ^t^h^{e S}^eⁿ^a^t^e^.^A^m^o^tⁱ^oⁿ^t^o^w^aⁱ^v^{e t}^h^{e p}^oⁱⁿ^t^o^f^o^r^d^e^{r rai}^s^ed^agaiⁿ^s^t^t^h^{e am}^en^d^m^en^t^{was rej}^ect^ed^by^{a 4}⁹^-⁴⁹^vo^t^e^.
^S^ee^C^ongr^e^s^sⁱ^o^nal^Re^c^o^r^d^,^da^ily^e^d^itio^{n, v}^o^l^.¹⁴⁸^(June^5,²⁰⁰²⁾^{, p}^p^{. S}⁵⁰^04-^S5⁰¹^5.
²³^Oⁿ^J^u^ne^6,²⁰⁰²^{, c}^l^o^t^ur^e^w^a^s^inv^o^k^e^{d on}^H^.^R^.⁴⁷^75.^Uⁿ^de^r^c^l^ot^ur^e^,^a^po^int^of^or^de^r^m^a^y^be^r^a^is^e^d^a^g^aⁱ^ns^t
^nong^e^r^m^a^ne^am^eⁿ^d^m^eⁿ^ts^{. T}^h^e^c^h^aⁱ^r^r^u^le^{d t}^h^a^t^Se^na^tor^D^a^s^c^hle^’^s^a^m^e^ndm^eⁿ^t^w^a^s^{not g}^e^r^m^aⁿ^e^{to th}^e^FY²⁰⁰²
^s^upple^m^eⁿ^ta^{l a}^ppr^opr^ia^ti^ons^a^c^t^,^a^{nd t}^h^e^a^m^eⁿ^d^m^eⁿ^{t f}^e^{ll. Se}^e^C^ongr^e^s^sⁱ^onal^Re^c^o^r^d^,^da^ily^e^d^itio^n,^v^o^{l. 1}^{48 (J}^une^5,
²⁰⁰²⁾^,^p^p^{. S}⁵⁰^15-^S5⁰¹^{8; a}ⁿ^d^C^o^ngr^e^s^sⁱ^on^{al Re}^c^o^r^d^,^da^ily^e^d^ition,^v^o^{l. 1}⁴⁸⁽^J^une^6,²⁰⁰²⁾^{, p}^p^.^S5¹¹^4-^S5¹²^0.
²⁴^T^h^e^am^e^ndm^eⁿ^{t w}^a^s^s^ubje^c^t^{to a}^poi^nt^of^or^de^r^u^nde^r^Se^c^tion³⁰⁶^of^the^B^udg^e^t^A^c^{t. A}^m^o^{tion t}^o^w^a^iv^e^the^poi^{nt of}
^o^r^d^e^{r rai}^s^ed^agaiⁿ^s^t^t^h^{e am}^en^d^m^eⁿ^t^w^a^{s rej}^ect^ed^b^y^{a 5}⁹^-⁴⁰^vo^t^e^.^S^ee^C^ongr^e^s^sⁱ^on^{al Re}^c^o^r^d^,^da^ily^e^d^itio^{n, v}^o^l^.¹⁴⁸
⁽^J^une¹⁹^,²⁰⁰²⁾^{, p}^p^.^S5⁷⁶^2-^S5⁷⁶^{7; a}ⁿ^d^C^o^ngr^e^s^sⁱ^o^nal^Re^c^o^r^d^,^daⁱ^l^y^e^d^{ition, v}^o^l.¹⁴⁸⁽^J^une²⁰^{, 2}⁰⁰²⁾^,^pp.^S5⁸⁰^8-
^S⁵⁸²^1.
²⁵^T^h^{e statu}^t^o^r^y^lim^{its o}ⁿ^dⁱ^scretio^nar^y^sp^en^dⁱⁿ^g^and^t^h^{e st}^atu^t^o^r^y^P^{AYGO req}^uⁱ^rem^eⁿ^t^f^o^{r d}ⁱ^{rect sp}^en^dⁱⁿ^g^and^reven^u^e
^le^gⁱ^s^l^a^{tion, f}ⁱ^r^s^{t e}^s^ta^blis^he^d^by^the^B^E^A^,^e^x^pir^e^{d on Se}^pte^m^be^r^30,²⁰^02,^a^s^w^e^{ll. For}^a^d^diti^ona^{l i}ⁿ^f^o^r^m^a^{tion o}ⁿ^t^h^e
^ext^eⁿ^sⁱ^oⁿ^o^f^t^h^{ese bu}^d^g^et^en^f^o^rcemen^t^m^e^ch^anⁱ^s^ms,^{see t}^h^{e ap}^p^lⁱ^c^a^b^l^e^sectⁱ^oⁿⁱⁿ^CR^S^Rep^o^r^t^RL³¹⁴⁷⁸^,^Fe^de^ral
^B^u^dg^et^P^r^o^{cess R}^e^f^o^{rm: A}ⁿ^a^l^ysi^s^o^f^Fⁱ^{ve R}^e^f^o^{rm Issu}^es^{, by}^J^a^m^e^s^V.^Sa^tur^no.^Iⁿ^a^d^diti^on^{, t}^h^e^thr^e^e^-^fⁱ^f^t^hs^v^o^te
^r^e^quir^e^m^e^nts^{in the}^Se^na^te^{to w}^a^iv^e^c^e^r^ta^{in points}^of^or^de^r^un^de^r^th^e^B^udg^e^t^A^c^{t, a}^{nd to}^s^u^s^t^aⁱ^{n a}ⁿ^a^ppe^a^l^of^a^r^u^li^ng^of
^the^c^h^aⁱ^r^oⁿ^s^u^c^h^p^oⁱⁿ^ts^of^or^de^r^,^e^x^pir^e^{d on}^Se^pte^m^be^r^30,²⁰⁰²^{. T}^h^e^s^e^s^upe^r^m^a^j^or^it^y^w^a^iv^e^r^r^e^quir^e^m^e^nts^th
^s^ubs^e^que^ntly^w^e^r^e^r^e^s^t^or^e^d⁽^s^e^e^Se^c^{tion 2}⁽^a⁾^of^S.R^e^s^.³⁰⁴^,¹⁰⁷^C^ong^r^e^s^s⁾^a^{nd c}^u^r^r^e^ntly^a^r^e^s^c^he^dule^d^to^e^x^pir^e^on^th
^Se^pte^m^be^r^{30, 2}⁰¹⁷⁽^s^e^e^Se^c^tioⁿ²⁰⁵^of^S.C^on.R^e^s^.^21,^the^FY²⁰⁰⁸^b^udg^e^t^r^e^s^o^l^u^tio^n,¹¹⁰^C^ong^r^e^s^s⁾^.
²⁶^Unde^{r t}^h^e^Co^ng^re^ssiona^{l Bu}^dg^e^t^A^c^t,^A^p^{ril 15}^{is the}^ta^rg^e^t^da^te^f^o^r^Cong^re^{ss to c}^o^m^p^le^te^a^c^tion^oⁿ^t^h^e^aⁿⁿ^u^a^l
^budg^e^t^r^e^s^o^l^u^ti^on.
²⁷^S^ee^Co^ng^ressioⁿ^a^{l Reco}^rd^{, da}^ily^e^d^itio^{n, v}^o^l^.¹⁴^{8 (Oc}^t^o^b^e^r¹⁶^,²⁰^02),^p^p^{. S}¹⁰⁵²⁷^-S¹⁰⁵³^{1 a}ⁿ^{d S}¹⁰⁵⁵³^{. T}^h^e
^le^gⁱ^s^l^a^{tion a}^l^s^o^r^e^s^t^or^e^d^aⁿ^{d e}^x^te^nde^{d t}^h^r^o^ug^{h A}^p^r^{il 1}⁵^,²⁰⁰³^{, the}^t^h^r^e^e^-^fⁱ^f^t^hs^v^o^te^r^e^quir^e^m^e^{nt f}^o^r^ce^r^t^aⁱ^{n w}^a^ive^r^s^of
^the^C^o^ng^r^e^s^sⁱ^ona^{l B}^u^dg^e^t^A^c^{t of}¹⁹⁷^4.

On March 14, 2003, the Senate Budget Committee reported S.Con.Res. 23, the FY2004 budget
resolution, without written report. The reported resolution modified the PAYGO rule to exempt ²⁸
legislation assumed in the budget resolution and extend it through September 30, 2008. After six
days of consideration, the Senate agreed to S.Con.Res. 23, as amended, on March 26, by a vote of ²⁹
56-44. While the Senate considered and agreed to several amendments to S.Con.Res. 23, none
were related to the PAYGO provision. Subsequently, on April 11, the Senate agreed to the ³⁰
conference report on H.Con.Res. 95 (H.Rept. 108-71) by a 51-50 vote. Section 505 of the
FY2004 budget resolution contained the Senate language without change, which exempted ³¹
legislation assumed in the budget resolution and extended the rule through September 30, 2008.
In 2004, during the second session of the 108^th Congress, modification of the Senate PAYGO rule
reportedly was a major obstacle to reaching an agreement on the FY2005 budget resolution ³²
(S.Con.Res. 95). On March 10, during consideration of the FY2005 budget resolution, Senator
Russell Feingold offered an amendment (S.Amdt. 2748) that would have restored the Senate ^th
PAYGO rule to its pre-108 Congress form, under which it did not exempt legislation assumed in ³³
the budget resolution. The Senate adopted the Feingold amendment by a vote of 51-48. On
March 12 (legislative day, March 11), the Senate subsequently agreed to S.Con.Res. 95, as ³⁴
amended by the Feingold amendment, among others, by a vote of 51-45 vote. The House-passed
FY2005 budget resolution (H.Con.Res. 393), agreed to on March 25, however, included no
modification to the existing PAYGO rule.
The conference report included a provision (Section 407 of S.Con.Res. 95, H.Rept. 108-498)
similar to the Senate language, but it exempted the reconciliation legislation provided for in the ³⁵
budget resolution (Title II) and expired on April 15, 2005. While the House agreed to the
conference report to S.Con.Res. 95, the Senate never considered it. The 2003 version of the

²⁸^Se^e^U^.^{S. C}^ong^r^e^s^s^,^Se^na^te^C^o^m^m^itte^e^{on the}^B^u^dg^e^t^,^C^onc^ur^r^e^nt^Re^s^o^luti^on^oⁿ^t^h^e^Bu^dge^t^FY2⁰⁰⁴^{, c}^o^m^m^itte^e^print
^t^o^acco^m^p^an^y^S^.^Coⁿ^.^Res.²³^,¹⁰⁸^th^Cong^.,¹^st^s^e^s^s^{., S.}^Pr^t.¹⁰^8-¹⁹^,^Ma^r^c^{h 20}⁰³⁽^W^a^s^hing^ton:^G^P^O^,²⁰⁰³⁾^,^p^p^{. 6}⁰^-^61.
^Lⁱ^k^e^the^tem^por^a^r^y^e^x^te^ns^{ion a}^g^r^e^e^d^{to i}ⁿ²⁰⁰²^,^the^FY²⁰⁰⁴^bu^dg^e^t^r^e^s^o^luti^on^a^l^s^o^c^o^ntaⁱ^ne^{d a}ⁿ^e^x^te^ns^ion^thr^oug^h
^Se^pte^m^be^r^{30, 2}⁰⁰⁸^,^of^the^t^h^r^e^e^-^fⁱ^f^t^hs^v^o^te^r^e^quir^e^m^e^{nt f}^o^r^c^e^r^ta^{in w}^aⁱ^v^e^r^s^of^the^C^ong^r^e^s^sⁱ^ona^{l B}^u^dg^e^t^A^c^{t of}^1974.
²⁹^For^t^h^e^Se^na^te^c^o^ns^ide^r^a^tⁱ^{on a}^nd^a^dopt^io^{n of}^the^FY²⁰⁰⁴^bu^dg^e^t^r^e^s^o^luti^on^{, s}^e^e^Co^ng^ressioⁿ^a^l^Record^{, da}^ily^e^d^itio^n,
^v^o^{l. 1}^{49 (}^M^a^r^c^h¹⁷^-²^{1 a}ⁿ^d^25-^26,²⁰⁰³⁾^{, p}^p^.^S3⁷⁷^4-^S4²⁶^{8 a}ⁿ^{d S}⁴³^34-^S⁴⁴²²^.
³⁰^For^t^h^e^Se^na^te^c^o^ns^ide^r^a^tⁱ^on^of^the^c^onf^e^r^eⁿ^c^e^r^e^por^{t t}^o^H^.^C^o^n.R^e^s^.⁹⁵^{, the}^FY²⁰⁰⁴^b^udg^e^t^r^e^s^o^l^u^ti^{on, s}^e^e
^C^ongr^e^s^sⁱ^o^nal^Re^c^o^r^d^,^da^ily^e^d^iti^{on, v}^o^l^.¹⁴^{9 (}^A^pr^{il 1}¹^,²⁰⁰³⁾^{, p}^p^.^S52^66-^S5²⁹^{3, S}⁵²^95-^S5³¹^{6. T}^h^e^H^ous^e^a^g^r^e^e^d^to
^the^c^onf^e^r^eⁿ^c^e^re^port^{on A}^p^ril¹¹^(le^g^isla^tiv^e^da^y^A^p^{ril 10).}
³¹^T^h^{e j}^oⁱⁿ^t^exp^l^an^at^o^r^y^st^at^e^m^en^t^o^f^t^h^{e co}^mmⁱ^t^t^{ee o}^f^coⁿ^f^eren^{ce o}ⁿ^t^h^e^F^Y²⁰⁰⁴^bu^d^g^et^reso^l^u^tⁱ^oⁿⁱⁿ^dⁱ^cat^ed^t^h^at^t^h^e
^budg^e^t^r^e^s^o^l^u^ti^{on a}^s^s^u^m^e^{d dir}^e^c^t^s^p^e^ndi^ng^inc^r^e^a^s^e^s^a^{nd r}^e^v^e^nue^r^e^duc^tio^ns^to^ta^ling^$¹^,⁷⁵⁵^.9⁵⁷^bil^lⁱ^on^ov^e^r^the^pe^rⁱ^od
^FY²⁰^03-^FY²⁰^13.
³²^S^ee,^f^o^{r exa}^m^p^l^e:^Bu^d^Newm^an^an^d^Heat^h^e^{r M}^.^Ro^t^h^m^aⁿ^,^“G^OP^Bu^d^g^et^S^t^al^em^at^{e O}^v^{er P}^a^y^-^G^o^C^oⁿ^tⁱⁿ^u^e^{s W}ⁱ^t^h^N^o
^N^e^w^Of^f^e^r^s^{on T}^a^ble^,^”^B^N^A^’^s^Daⁱ^l^y^R^e^po^rt^f^o^{r E}^xecu^tⁱ^ves⁽^M^a^y⁵^,²⁰⁰⁴⁾^,^{p. G}^-^{6; a}ⁿ^d^B^u^{d N}^e^w^m^aⁿ^{, “}^H^ous^e^O^K^s
^One^-^Ye^a^r^Budg^e^t^Re^soluti^on;^P^l^aⁿ^Ma^y^{Still L}^a^c^k^{50 Vote}^{s in}^Seⁿ^a^te^,”^BN^A^’^s^Daily^Re^{port f}^o^{r Ex}^e^c^utiv^e^s⁽^M^a^y^20,
²⁰⁰⁴⁾^,^p.^G^G^-¹^.
³³^F^o^{r t}^h^{e con}^sⁱ^d^eratⁱ^oⁿ^and^ado^p^tⁱ^oⁿ^o^f^t^h^{e F}^eⁱⁿ^go^l^d^am^en^d^m^en^t^,^se^e^C^ongr^e^s^sⁱ^o^nal^Re^c^o^r^d^,^da^ily^e^d^ition^,^v^o^l.¹⁵⁰
⁽^M^a^r^c^h¹⁰^,²⁰⁰⁴⁾^,^p^p^{. S}²⁵^10-^S2⁵^16,^S2⁵¹^8.
³⁴^For^t^h^e^c^o^ns^ide^r^a^tio^{n a}ⁿ^{d a}^d^optⁱ^on^of^the^Se^na^te^v^e^r^s^ion^of^the^F^Y²⁰⁰⁵^bu^dg^e^t^r^e^s^o^luti^on,^s^e^e^C^oⁿ^g^r^e^s^sⁱ^onal
^R^eco^rd^{, da}^ily^e^d^itio^{n, v}^o^l^.¹⁵⁰⁽^M^a^r^c^h^8-^11,²⁰⁰⁴^),^pp.^S2²⁵^6-S²²⁹⁴^{, S}²³^77-^S2⁴⁰^{3, S}²⁴^04-^S2⁴²^3,^S2⁴⁶^5-S2⁵³^7,
^S25^91-^S2⁶⁴^{1, S}²⁶^43-^S2⁶⁹^9.
³⁵^T^h^e^re^c^onc^ilia^tio^{n instr}^u^c^tio^ns^di^re^c^t^e^d^the^Se^na^te^Com^m^itte^e^{on Fina}^nc^e^a^nd^the^Ho^use^Com^m^itte^e^{on W}^a^y^s^a^nd
^Me^aⁿ^{s to re}^d^u^c^e^re^v^e^nue^{s by}^$22^{.9 b}^illi^{on a}^{nd i}ⁿ^c^r^e^a^s^e^dire^c^t^speⁿ^ding^by^$4.⁶^billi^on^(i.e^.,^inc^r^e^a^s^ing^the^oⁿ^-b^udg^e^t
^de^fⁱ^c^{it by}^$27.5^bill^ioⁿ⁾^ov^e^r^the^pe^rⁱ^od^c^o^v^e^rⁱ^ng^FY²⁰⁰⁵^-^F^Y²⁰⁰⁹^.

PAYGO rule (Section 505 of H.Con.Res. 95, 108^th Congress), therefore, continued to remain in
effect.

During the 109^th Congress, in the context of considering the budget resolutions for FY2006 and
FY2007, the Senate considered modifications to the PAYGO rule. In each case, an amendment to ^th
the budget resolution would have restored the Senate PAYGO rule to its pre-108 Congress form,
under which it did not exempt legislation assumed in the budget resolution. In each case,
however, the Senate rejected the amendment. As in the previous Congress, therefore, the 2003 ^th
version of the PAYGO rule (Section 505 of H.Con.Res. 95, 108 Congress) continued to remain ^th
in effect through the 109 Congress.
On March 16, 2005, during the consideration of the FY2006 budget resolution (S.Con.Res. 18),
Senator Russell Feingold offered an amendment (S.Amdt. 186) that proposed to modify the
PAYGO rule by removing the exemption for legislation assumed in the budget resolution. The ³⁶
Senate rejected the Feingold amendment by a vote of 50-50. On March 17, the Senate agreed to ³⁷
S.Con.Res. 18, as amended, by a vote of 51-49. Subsequently, on April 28, the Senate agreed to ³⁸
the conference report on S.Con.Res. 18 (H.Rept. 109-62) by a 52-47 vote.
In 2006, during the consideration of the FY2007 budget resolution (S.Con.Res. 83), Senator Kent
Conrad offered an amendment (S.Amdt. 3013) similar to the one offered by Senator Feingold in ³⁹
the previous year. The Senate rejected the Conrad amendment by a vote of 50-50. On March 16, ⁴⁰
the Senate agreed to S.Con.Res. 83, as amended, by a vote of 51-49. Subsequently, however, the
House and Senate did not take final action to adopt a conference report for the FY2007 budget
resolution in 2006.

Even before the 110^th Congress began, the new Democratic leadership in both chambers indicated ⁴¹
that it intended to “restore” PAYGO rules. Accordingly, the House adopted its own PAYGO rule

³⁶^F^o^{r t}^h^{e con}^sⁱ^d^eratⁱ^oⁿ^and^rej^ectⁱ^oⁿ^o^f^t^h^{e F}^eⁱⁿ^go^l^d^am^en^d^m^en^t^,^se^e^C^ongr^e^s^sⁱ^o^nal^Re^c^o^r^d^,^da^ily^e^d^ition^,^v^o^l.¹⁵¹
⁽^M^a^r^c^h¹⁶^,²⁰⁰⁵⁾^,^p^p^{. S}²⁷^95-^S2⁸^06.
³⁷^For^t^h^e^c^o^ns^ide^r^a^tio^{n a}ⁿ^{d a}^d^optⁱ^on^of^the^Se^na^te^v^e^r^s^ion^of^the^F^Y²⁰⁰⁶^bu^dg^e^t^r^e^s^o^luti^on,^s^e^e^C^oⁿ^g^r^e^s^sⁱ^onal
^R^eco^rd^{, da}^ily^e^d^itio^{n, v}^o^l^.¹⁵¹⁽^M^a^r^c^h¹⁴^-1^{7, 2}⁰⁰⁵^),^p^p^{. S}²⁵^87-^S²⁶⁴^1,^S2⁶⁶^1-S²⁷^28,^S2⁷⁵^9-S²⁸⁴¹^{, S}²⁸^75-^S2⁸⁹^7,
^S28^99-^S2⁹²^{6, S}²⁹^29-^S2⁹⁶^7.
³⁸^F^o^{r t}^h^{e S}^eⁿ^a^t^e^con^sⁱ^d^eratⁱ^oⁿ^o^f^t^h^{e co}ⁿ^f^eren^{ce rep}^o^r^t^t^o^H.^Con^.^Re^s.⁹⁵^,^see^Co^ng^ressioⁿ^a^l^Reco^rd^,^da^ily^e^d^{ition, v}^o^l^.
¹⁵¹⁽^A^pr^{il 2}⁸^,²⁰⁰⁵⁾^,^p^p^{. S}⁴⁴^81-^S45²⁷^.^T^h^e^H^ous^e^a^g^r^e^e^d^{to t}^h^e^c^onf^e^r^eⁿ^c^e^r^e^por^{t o}ⁿ^A^p^r^{il 2}⁸^a^s^w^e^{ll. T}^h^e^join^t
^exp^l^an^at^o^r^y^st^at^e^m^en^t^o^f^t^h^{e co}^mmⁱ^t^t^{ee o}^f^coⁿ^f^eren^{ce o}ⁿ^t^h^{e F}^Y²⁰⁰⁶^b^u^d^g^et^reso^l^u^tⁱ^oⁿⁱⁿ^dⁱ^cat^ed^t^h^at^t^h^e^b^u^d^g^et
^re^soluti^{on a}^ssum^e^{d dire}^c^t^speⁿ^din^g^inc^r^e^a^s^e^s^a^{nd re}^v^e^nue^re^duc^tioⁿ^s^tota^ling^$3^51.⁰¹⁵^billi^on^ov^e^r^th^e^pe^riod^FY2⁰⁰⁵^-
^F^Y²⁰¹⁵^,^{as ref}^l^ect^ed^oⁿ^{a “}^P^A^Y^G^O^s^c^o^r^ecard^.^”
³⁹^F^o^{r t}^h^{e con}^sⁱ^d^eratⁱ^oⁿ^and^rej^ectⁱ^oⁿ^o^f^t^h^{e Con}^r^ad^am^en^d^m^en^t^,^see^Co^ng^ressioⁿ^a^l^Reco^rd^{, da}^ily^e^d^it^ion,^v^o^l.¹⁵²
⁽^M^a^r^c^h¹⁴^,²⁰⁰⁶⁾^,^p^p^{. S}²⁰^56-^S2⁰^62,^S2⁰⁹^1-^S²⁰^92.
⁴⁰^For^t^h^e^c^o^ns^ide^r^a^tio^{n a}ⁿ^{d a}^d^optⁱ^on^of^the^Se^na^te^v^e^r^s^ion^of^the^F^Y²⁰⁰⁷^bu^dg^e^t^r^e^s^o^luti^on,^s^e^e^C^oⁿ^g^r^e^s^sⁱ^onal
^R^eco^rd^{, da}^ily^e^d^itio^{n, v}^o^l^.¹⁵²⁽^M^a^r^c^h¹³^-1^{6, 2}⁰⁰⁶^),^p^p^{. S}¹⁹^87-^S²⁰¹^9,^S2⁰⁵^4-S²¹^16,^S2¹⁴^6-S²¹⁸⁴^{, S}²²^25-^S2²³^6,
^S22^41-^S2²⁹^3.
⁴¹^By^“r^est^o^re,^”^t^h^{e l}^ead^ershⁱ^p^w^a^{s referri}ⁿ^g^t^o^t^h^e^P^A^Y^G^O^r^u^le^s^pr^ior^to^the^m^odifⁱ^c^a^{tion i}ⁿ²⁰^03;^th^e^pr^e^-²⁰⁰³
^P^A^YG^{O ru}^l^e^dⁱ^d^no^t^exem^p^t^dⁱ^rect^sp^en^dⁱⁿ^g^an^d^reven^u^e^l^e^gi^sl^atⁱ^oⁿ^assu^m^e^dⁱⁿ^t^h^{e m}^o^st^-recen^t^l^y^ad^o^p^t^{ed bu}^d^g^et
^r^e^s^o^luti^on.^Se^e^,^f^o^r^e^x^am^ple^,^Ste^v^eⁿ^T^.^D^e^nnis^,^“^D^e^m^oc^r^a^ts^’^Fir^s^{t 100 H}^our^s^:^C^o^s^tly^A^M^T^R^e^w^r^ite^Aⁿ^O^p^eⁿ^ing
⁽^c^onti^nue^d.^..)

as part of its opening-day rules package.⁴² The Senate, subsequently, modified its PAYGO rule in
the FY2008 budget resolution.
On March 15, 2007, the Senate Budget Committee reported S.Con.Res. 21, the FY2008 budget
resolution, without written report. The reported resolution modified the PAYGO rule by
eliminating the exemption for direct spending and revenue changes assumed in the budget ^th⁴³
resolution, generally restoring the rule to its pre-108 Congress form. During the four days of
consideration on the floor, the Senate did not consider any amendments proposing to modify the
reported version of the PAYGO rule. Senator Jeff Sessions, however, offered an amendment
(S.Amdt. 466) proposing to exempt legislation “that would provide for the extension of the tax
relief provided in” the reconciliation measures enacted in 2001 (P.L. 107-16), 2003 (P.L. 108-27),
and 2006 (P.L. 109-222) from several budget-related points of order, including the modified ⁴⁴
PAYGO point of order. The Senate rejected the Sessions amendment by a 46-52 vote. On March ⁴⁵

23, the Senate agreed to S.Con.Res. 21, as amended, by a 52-47 vote.

Subsequently, after resolving legislative differences with the House, the Senate agreed to the
conference report to accompany the FY2008 budget resolution (H.Rept. 110-153) by a vote of 52-⁴⁶
40, on May 17. The conference agreement included a modified version of the Senate-passed
PAYGO rule. As explained in more detail in the “Current Features of the Senate PAYGO Rule”
section, above, this current form of the Senate PAYGO rule generally prohibits the consideration
of direct spending and revenue legislation that is projected to increase the on-budget deficit in
either of two time periods: the current fiscal year and the following five fiscal years; and the
current fiscal year and the following 10 fiscal years.

Since the Senate created the PAYGO rule in 1993, 27 points of order under the rule have been
raised, 13 raised in 2007 (see Table 2). Of these 27 points of order, two were raised against entire
bills, 24 were raised against amendments, and one was raised against a motion to concur in the
House amendment to the Senate amendment to a bill. The two points of order against entire bills

^(...c^on^tin^ue^d)
^Cha^lle^ng^e^{to A}ⁿ^ti-De^fⁱ^c^{it G}^o^a^l^s,”^{CQ Weekl}^y⁽^N^ov^em^b^e^r^20,²⁰⁰⁶⁾^,^p.³¹⁰⁷^.
⁴²^T^h^{e n}^e^w^Ho^u^s^{e P}^A^{YGO ru}^{le (Ru}^l^{e XX}^I^,^clau^{se 10}^{) p}^r^o^h^ib^its^th^e^coⁿ^s^id^eration^o^f^dⁱ^{rect sp}^en^din^g^aⁿ^d^reven^u^e
^l^e^gi^sl^atⁱ^oⁿ^t^h^atⁱ^s^p^r^o^j^ect^ed^t^oⁱⁿ^{crease t}^h^{e d}^e^fⁱ^ci^t^(o^{r red}^u^{ce t}^h^{e s}^u^r^p^l^u^{s) i}ⁿ^ei^t^h^{er o}^f^t^w^o^tⁱ^m^{e p}^e^ri^o^d^s^:⁽¹^{) t}^h^{e si}^x-y^e^ar
^pe^rⁱ^od^be^gⁱⁿⁿ^ing^w^{ith the}^c^u^r^r^e^nt^fⁱ^s^c^a^l^y^e^a^r^{; a}^{nd (}²⁾^t^h^e¹¹^-^y^ea^r^pe^rⁱ^od^be^gⁱⁿⁿⁱ^ng^w^{ith the}^c^u^r^r^e^{nt f}ⁱ^s^c^a^l^y^e^a^r^{. For}
^m^o^r^e^de^ta^ile^{d inf}^o^r^m^a^{tion on}^the^ne^w^H^ous^e^P^A^Y^G^O^r^u^le^{, s}^e^e^C^R^{S R}^e^por^t^R^L³³⁸⁵⁰^,^T^h^e^H^ous^e^’^s^“Pay^-^A^s^-^Yo^u-^G^o^”^th
⁽^{PAYGO) Rule}^{in t}^h^e¹¹⁰^Con^g^r^{ess: A}^B^rⁱ^e^f^Overvi^ew^{, b}^y^Robe^rt^K^e^ith.
⁴³^Se^e^U^.^{S. C}^ong^r^e^s^s^,^Se^na^te^C^o^m^m^itte^e^{on the}^B^u^dg^e^t^,^C^onc^ur^r^e^nt^Re^s^o^luti^on^oⁿ^t^h^e^Bu^dge^t^FY2⁰⁰⁸^{, c}^o^m^m^itte^e^print
^t^o^acco^m^p^an^y^S^.^Coⁿ^.^Res.²¹^,¹¹⁰^th^Cong^.,¹^st^s^e^s^s^{., S.}^Pr^t.¹¹^0-¹⁹^,^Ma^r^c^{h 20}⁰⁷⁽^W^a^s^hing^ton:^G^P^O^,²⁰⁰⁷⁾^,^p.¹⁹^{. I}ⁿ
^a^dditi^on^{to e}^lim^ina^ting^t^h^e^e^x^em^ption^,^the^r^e^por^te^{d b}^udg^e^t^r^e^s^o^l^u^tio^{n a}^dde^{d t}^h^e^c^u^r^r^e^{nt f}ⁱ^s^c^a^l^y^e^a^r^a^s^a^nothe^r^tim^e
^pe^riod^re^qu^iring^de^fⁱ^c^{it ne}^utra^l^ity^,^c^l^a^r^if^ie^{d tha}^t^aⁿ^y^de^fⁱ^c^{it re}^duc^tio^{n re}^sulti^ng^f^r^om^re^c^onc^ilia^tio^{n le}^gⁱ^sla^{tion c}^o^uldⁿ^o^t
^be^us^e^d^t^o^of^f^s^e^t^aⁿ^on-^bu^dg^e^t^de^fⁱ^c^{it in s}^ubs^e^q^ue^{nt le}^gⁱ^s^l^a^tio^{n, a}^nd^e^x^te^nde^{d the}^r^u^le^thr^oug^h^Se^pte^m^be^r³⁰^{, 2}⁰¹⁷^.
⁴⁴^S^ee^Co^ng^ressioⁿ^a^{l Reco}^rd^{, da}^ily^e^d^itio^{n, v}^o^l^.¹⁵^{3 (Ma}^r^c^h²⁰^{, 2}⁰⁰⁷^),^{p. S}³³³²^.
⁴⁵^For^t^h^e^c^o^ns^ide^r^a^tio^{n a}ⁿ^{d a}^d^optⁱ^on^of^the^Se^na^te^v^e^r^s^ion^of^the^F^Y²⁰⁰⁸^bu^dg^e^t^r^e^s^o^luti^on,^s^e^e^C^oⁿ^g^r^e^s^sⁱ^onal
^R^eco^rd^{, da}^ily^e^d^itio^{n, v}^o^l^.¹⁵³⁽^M^a^r^c^h²⁰^-2^{3, 2}⁰⁰⁷^),^p^p^{. S}³³^08-^S³³⁴^0,^S3⁴⁵^2,^S3⁴⁵^3-S3⁵¹^2,^S3⁵⁴^{5, S}³⁵^47-^S3⁶⁰^3,
^S36^47-^S3⁶⁵^{5, S}³⁶^59-^S3⁷⁰^2.
⁴⁶^F^o^{r t}^h^{e S}^eⁿ^a^t^e^con^sⁱ^d^eratⁱ^oⁿ^o^f^t^h^{e co}ⁿ^f^eren^{ce rep}^o^r^t^t^o^S^.^C^o^n.^Res.²¹^,^see^Co^ng^ressioⁿ^a^l^Reco^rd^,^da^ily^e^d^{ition, v}^o^l^.
¹⁵³⁽^M^a^y^17,²⁰⁰⁷⁾^,^p^p^{. S}⁶²^20-^S⁶²⁵^3.

fell upon the adoption of a waiver motion, thus allowing consideration of the bills to proceed. All
24 points of order against amendments were sustained, and thus the amendments fell. Lastly, the
point of order against the motion to concur fell upon the adoption of a waiver motion.
As indicated in Table 2, a motion to waive the point of order raised under the PAYGO rule was
made in each case except one (Ensign amendment to S. 378). Two separate waiver motions were ^rd⁴⁷
made relating to the point of order raised against H.R. 3167 (103 Congress). Of the 27 motions
to waive the PAYGO point of order, three motions were successful, while 24 were rejected.
Like any other Senate rule, the Senate PAYGO rule is not self-enforcing. A Senator must raise a
point of order under the rule in order to prevent the consideration of legislation that violates the
rule. It is possible, therefore, for the Senate to consider and pass legislation even if it does not
adhere to the limits of the PAYGO rule, as long as a point of order is not raised.
In addition, during the period the rule has been in effect, the Senate has at times considered
legislation significantly reducing revenues or increasing direct spending (and thus increasing the
deficit or reducing the surplus) without interference from the Senate PAYGO rule because, in
accordance with the provisions of the rule adopted in the FY2002 and FY2004 budget
resolutions, the legislation fit within the available on-budget surpluses or was assumed in the
budget resolution. For example, in 2001, the Senate considered and passed the Economic Growth
and Tax Relief Reconciliation Act of 2001 (P.L. 107-16), which the Joint Committee on Taxation
projected would reduce revenues by $1.26 trillion over the 11-year period of FY2001-FY2011, ⁴⁸
without violating the PAYGO rule. In addition, in 2003, the Senate considered and passed the
Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (P.L. 108-173), which
the Congressional Budget Office projected would increase direct spending by $395 billion over ⁴⁹
the 10-year period of FY2004-FY2013, without violating the PAYGO rule.

⁴⁷^A^sⁱⁿ^dⁱ^cat^edⁱⁿ^Ta^b^l^{e 2}^{, t}^h^e^fⁱ^r^s^{t w}^aⁱ^v^e^r^w^a^s^r^e^j^e^c^t^e^d^{on a}⁵⁹^-³^{8 v}^o^te^oⁿ^O^c^to^be^r²⁶^,¹⁹^93.^T^h^e^ne^x^t^da^y^,^how^e^v^e^r^,
^t^h^{e S}^eⁿ^a^t^e^agreed^t^o^{a m}^o^tⁱ^oⁿ^t^o^r^ecoⁿ^sⁱ^d^{er t}^h^{e vo}^t^e^on^th^{is w}^a^iv^e^r^m^o^{tion by}^v^o^ic^e^v^o^te^{. T}^h^e^Se^na^te^{, subse}^q^ue^ntly^,
^a^ppr^ov^e^d^t^h^e^w^a^iv^e^r^m^o^{tion by}^a^61-^{39 v}^o^te^,^aⁿ^d^the^poi^nt^of^or^de^r^a^g^aⁱ^ns^{t H}^.^R^.³¹⁶⁷^f^e^ll.
⁴⁸^S^{ee CBO,}^P^a^y^-^A^s^-^Y^o^u^-^G^o^E^s^tⁱ^m^at^e,^{H.R. 1}⁸³⁶^,^Ec^on^omic^Growth^an^{d T}^a^x^Re^lie^{f Re}^c^o^nc^ilia^tio^{n Ac}^{t of}²⁰⁰¹^{, a}^s
^c^l^e^a^r^e^d^by^the^C^ong^r^e^s^s^{on Ma}^y^26,²⁰⁰¹^{, da}^te^{d J}^u^ne^4,²⁰⁰¹^.
⁴⁹^Se^e^{CBO, L}^e^tte^{r to Hon}^o^ra^ble^W^illia^m^“^B^ill”^{M. T}^hom^a^s^{, Cha}ⁱ^r^m^aⁿ^{, Com}^m^itte^e^{on W}^a^y^s^a^{nd Me}^aⁿ^s,^Estima^t^e^of
^Effe^c^t^on^Dⁱ^r^e^c^t^Speⁿ^dⁱ^ng^an^{d Re}^v^e^nue^s^{of C}^onfe^r^eⁿ^c^e^Agr^e^e^m^eⁿ^t^{on H}^.^R.^{1 [}^M^e^d^ic^ar^e^Pr^e^s^cr^iption^D^r^ug,
^I^m^pr^ov^e^m^eⁿ^{t, a}ⁿ^d^M^ode^rⁿ^iz^atioⁿ^Ac^{t of}²⁰⁰³^]^,^da^te^d^N^o^v^e^m^b^e^r^{20, 20}⁰³^.

Table 2. Procedural Actions Under the Senate PAYGO Rule, Calendar Years 1993-2007
^Date^{Object of Point o}^f^O^rder^Waiver^Motion^{Disposition of}^{Point of O}^rder
^10-2^6-^{Emergency U}^{nemployment Compensation (H.R. 3167)—}^Rejected,^{Fell on reconsidered vote}
¹⁹⁹³^{To extend the e}^mergen^{cy u}^nem^p^{loyment compensation}^program,^{and to establish a syst}^{em of work}^{er profiling.}^59-3⁸^{on waiver motion (see}
^{next item)}
^10-2^7-^{Emergency U}^{nemployment Compensation (H.R. 3167)—}^Approved,^Fell
¹⁹⁹³^{To extend the e}^mergen^c^{y u}^nem^p^{loyment compensation}^program,^{and to establish a syst}^{em of work}^{er profiling.}^61-3⁹
^10-2^7-^{Emergency U}^{nemployment Compensation (H.R. 3167)—}^Rejected,^Sustained
¹⁹⁹³^Bumpers^modified^{amendment n}^{o. 1084, to re}^{peal the}^{retroactive income, estate, and gift tax inc}^re^{ase and compe}^nsate^36-6¹
^{for the lost reve}^nue^{by te}^{rminating the S}^{pace Station program.}
^12-0^1-^{GATT (H.R. 5110)—}^Approved,^Fell
¹⁹⁹⁴^{To approve and impleme}^{nt th}^{e tr}^{ade agreements}^{concluded in th}^e^Uruguay^{Round of m}^{ultilateral trade negotiations.}^68-3²
ⁱ^{ki/CRS-RL31943}^09-1^1-^{Treasury/Postal Service App}^{ropriations, 1997 (H.R. 3}⁷⁵⁶⁾^—^Rejected,^Sustained
^g/w¹⁹⁹⁶^Wyden-^{Kennedy ame}^ndment^{no. 52}^{06 (to committee ame}^ndment^{beginning o}ⁿ^page^{16, line}^{16, th}^rough^{page 1}^{7, line}^51-4⁸
^s^.or^{2), to prohibit the}^{restriction of c}^{ertain types}^{of medical communi}^{cations between}^{a health}^care^pr^{ovider and a patient.}
^le^ak^05-0^7-^{IRS Reform}^{(H.R. 267}^6)—^Rejected,^Sustained
^://wiki¹⁹⁹⁸^{Coverdell amendment no. 23}^53,^{to prohibit the}^{use of ra}^{ndom au}^dits.^37-6⁰
^h^ttp^07-2^8-^{Treasury/Postal Service App}^{ropriations, 1999 (S. 23}^12)—^Rejected,^Sustained
¹⁹⁹⁸^Hutchi^{nson ame}^ndment^{no. 32}⁴⁹^{, to terminate the I}^nter^{nal Reven}^{ue Code of 19}^86. ^49-4⁹
^01-2^2-^Omnibus^App^rop^{riations Resolution (H.J.Res. 2)—}^Rejected,^Sustained
²⁰⁰³^{Reed amendment}^{no. 40, to ex}^pa^{nd the Tem}^porary^Exte^{nded Une}^{mployment Compe}^{nsation Act of}²⁰^02. ^45-4⁹
^01-2^3-^Omnibus^App^rop^{riations Resolution (H.J.Res. 2)—}^Rejected,^Sustained
²⁰⁰³^{Clinton amendment}^{no. 89, to improve health}^care^under^the^{Medicare and}^{Medicaid programs.} ^41-5⁶
^03-1^1-^{Partial-Birth Abortion Ban (}^{S. 3)—}^Rejected,^Sustained

²⁰⁰³^Mur^{ray ame}^ndment^{no. 25}^{8, to improve th}^{e availability of contraceptives for women.}^49-4⁷

^Date^{Object of Point o}^f^O^rder^Waiver^Motion^{Disposition of}^{Point of O}^rder
^07-1^0-^{State D}^{epartment Authoriza}^{tion (S. 925)—}^Rejected,^Sustained
²⁰⁰³^Mur^{ray ame}^ndment^{no. 11}^{70 (to}^amendment^{no. 11}^{36), to provide additional weeks of temporary}^extended^48-4⁸
^unem^{ployment compe}^{nsation for}^{individuals who have ex}^hausted^such^compen^{sation and to make}^extended
^unem^{ployment b}^enefits^under^th^{e Railroad Unemployment Ins}^ura^{nce Act tem}^{porarily available for employees with less}
^than^{10 y}^{ears of se}^rvice.
^03-2^5-^Unbo^{rn Victims o}^f^Violence^{Act (H.R. 1997)—}^Rejected,^Sustained
²⁰⁰⁴^Mur^{ray ame}^ndment^{no. 28}^{59, to}^{provide for domestic violence pr}^evention. ^46-5³
^05-0^4-^{Jumpstart Ou}^{r Business Strength (JOBS) A}^{ct (S. 1637)—}^Rejected,^Sustained
²⁰⁰⁴^{Wyden modified amendment no.}³¹⁰^{9, to provide trade adjustme}ⁿ^t^{assistance for}^{service worker}^s. ^54-4⁵
^05-1^1-^{Jumpstart Ou}^{r Business Strength (JOBS) A}^{ct (S. 1637)—}^Rejected,^Sustained
²⁰⁰⁴^Cantwell-^Vo^{inovich amendment}^{no. 311}^{4, to extend t}^{he Tem}^pora^{ry E}^{xtended Une}^{mployment Co}^{mpensation Act}^of^59-4⁰
²⁰⁰^2.
ⁱ^{ki/CRS-RL31943}^12-0^8-^{Tax Extenders—House Mess}^age^Approved,^Fell
^g/w²⁰⁰⁶^{Motion to concur in t}^{he Hou}^{se a}^{mendment to t}^{he Senate a}^mend^{ment to H.R. 61}^{11, to amend t}^h^e^Inter^{nal Revenu}^e^67-2¹
^s^.or^{Code of 198}^{6 to provide that t}^h^e^{Tax Court may}^{review claims for eq}^{uitable innocent}^spouse^{relief and to sus}^{pend t}^he
^le^ak^run^{ning on t}^he^{period of limitat}^io^{ns while suc}^{h claims are}^pending.
^://wiki^01-2^5-²⁰⁰⁷^{Fair Minimum Wage (H.R. 2)—}^Rejected,^47-4⁸^Sustained
^h^ttp^{Enzi (for E}^{nsign) amendme}^nt^{no. 154}^{(to amendment}^no.10^{0), to improve acces}^{s to affordable h}^{ealth care.}
^01-2^5-^{Fair Minimum Wage (H.R. 2)—}^Rejected,^Sustained
²⁰⁰⁷^{Bunning a}^mendme^{nt no. 1}^{19 (to}^amendment^{no. 10}^{0), to amend t}^{he Int}^{ernal Reve}^{nue Code of 1}⁹⁸⁶^{to repeal t}^{he 1}⁹⁹³^42-5¹
^{income tax increa}^{se on Social Se}^{curity be}^nefits.
^01-2^5-^{Fair Minimum Wage (H.R. 2)—}^Rejected,^Sustained
²⁰⁰⁷^{Smith amendment}^{no. 11}^{3 (to am}^endment^{no. 10}^{0), to make perm}^{anent ce}^{rtain education-related t}^{ax incentives.} ^43-5⁰
^01-3^1-^{Fair Minimum Wage (H.R. 2)—}^Rejected,^Sustained
²⁰⁰⁷^{Kyl amendment}^{no. 115}^{(to amen}^{dment no. 1}^{00), to extend t}^hrou^{gh Decembe}^{r 3}^{1, 2}⁰⁰^{8, the dep}^r^{eciation treatment of}^46-5⁰
^{leasehold, restaurant, and retail s}^{pace improveme}^nts.
^04-1^9-^{Court Security Impr}^{ovement Act (S. 378)—}^{[none] Sustained}

²⁰⁰⁷^{Ensign a}^mendme^{nt no. 8}^{97, to a}^{mend title 28, United States Code, to provide for the ap}^pointmen^{t of additi}^{onal Federal}
^{circuit judges, to divide the Ninth}^{Judicial Circuit of the United States into two circuits.}

^Date^{Object of Point o}^f^O^rder^Waiver^Motion^{Disposition of}^{Point of O}^rder
^06-0^6-^{Comprehensive Immigration}^Reform^{(S. 1348)—}^Rejected,^Sustained
²⁰⁰⁷^Mene^{ndez amendme}^{nt no. 1}¹⁹⁴^{(to amendment}^{no. 11}^{50), to modify the deadline for the}^{family bac}^{klog reduction.}^53-4⁴
^06-0^6-^{Comprehensive Immigration}^Reform^{(S. 1348)—}^Rejected,^Sustained
²⁰⁰⁷^{Salazar (for Cl}^{inton) furt}^{her mod}^{ified amendment no. 1}¹⁸³^{(to amendment}^{no. 11}^{50), to reclassify t}^{he spou}^{ses and}^44-5³
^{minor children of lawful p}^erman^e^{nt residents a}^s^{immediate relatives.}
^06-2^0-^{Clean Energy A}^{ct (H.R. 6)—}^Rejected,^Sustained
²⁰⁰⁷^{Gregg ame}^ndment^{no. 17}^{18 (to a}^mendment^{no. 17}^{04), to strike th}^{e provision extending t}^{he additio}^{nal duty on et}^hanol.^36-5⁶
^06-2^0-^{Clean Energy A}^{ct (H.R. 6)—}^Rejected,^Sustained
²⁰⁰⁷^{Inhofe a}^mendme^{nt no. 1}⁶⁶⁶^{(to amendment}^{no. 15}^{02), to ens}^{ure a}^{gricultural eq}^{uity with res}^{pect to}^{the re}^{newable f}^uels^31-6³
^standard.
^06-2^1-^{Clean Energy A}^{ct (H.R. 6)—}^Rejected,^Sustained
²⁰⁰⁷^{Kyl/Lott modif}^{ied amendment no}^{. 173}^{3 (to amendme}^{nt no. 1}⁷⁰^{4), to provide a condition preceden}^{t for the e}^ffective^38-5⁵
ⁱ^{ki/CRS-RL31943}^{date of the reve}^nue^raisers.
^g/w
^s^.or^08-0^2-^{State Children’}^s^{Health Insurance Pro}^gram^Amendment^{Act (H.R. 976)—}^Rejected,^Sustained
^le^ak²⁰⁰⁷^{Baucus (for Sp}^{ecter) ame}^ndment^{no. 255}^{7 (to amendme}^{nt no. 2}⁵³^{0), to amend the I}^nter^{nal Reven}^u^e^{Code of 198}^{6 to}^47-5²
^{reset the}^{rate of ta}^{x u}^{nder t}^{he alternative minimum}^{tax at}²⁴^%.
^://wiki^08-0^2-^{State Children’s}^Healt^{h Insurance Pro}^gram^Amendment^{Act (H.R. 976)—}^Rejected,^Sustained
^h^ttp²⁰⁰⁷^39-6⁰
^{Grassley (for}^Graham)^{modified a}^mendment^{no. 25}^{58 (to ame}^ndm^{ent no. 2}⁵³^{0), to sunset t}^{he inc}^re^{ase in the ta}^{x on}
^{tobacco products on}^Septem^ber^{30, 2}⁰¹^2.
^08-0^2-^{State Children’}^s^{Health Insurance Pro}^gram^Amendment^{Act (H.R. 976)—}^Rejected,^Sustained
²⁰⁰⁷^{Grassley (for Kyl) amendme}^{nt no}^{. 256}^{2 (to amendme}^{nt no. 2}⁵³^{0), to amend the}^Inte^{rnal Reven}^ue^{Code of 198}^{6 to}^49-5⁰
^{extend a}^{nd modify the 1}^{5-year st}^{raight-line cost recovery for}^{qualified leasehold improvements and}^{qualified restaura}^nt
^{improvements a}^{nd to provide a 1}^{5-year straight-line cost re}^covery^{for certain imp}^rovements^{to ret}^{ail space.}
^Source:^{Congressional Re}^cord^{, especially the Daily Digest section,}^{various years, searc}^{hed th}^rough^t^{he Legislative Information System}^{http://www.congress.g}^ov.
^Note:^{Information is curre}^{nt as}^{of November}^30,²⁰^07.

(Section 201 of S.Con.Res. 21, Budget Resolution for FY2008)
SEC. 201. PAY-AS-YOU-GO POINT OF ORDER IN THE SENATE.
(a) POINT OF ORDER.—
(1) IN GENERAL.—It shall not be in order in the Senate to consider any direct spending or
revenue legislation that would increase the on-budget deficit or cause an on-budget deficit for
either of the applicable time periods as measured in paragraphs (5) and (6).
(2) APPLICABLE TIME PERIODS.—For purposes of this subsection, the term “applicable
time period” means either—
(A) the period of the current fiscal year, the budget year, and the ensuing 4 fiscal years
following the budget year; or
(B) the period of the current fiscal year, the budget year, and the ensuing 9 fiscal years
following the budget year.
(3) DIRECT-SPENDING LEGISLATION.—For purposes of this subsection and except as
provided in paragraph (4), the term “direct-spending legislation” means any bill, joint
resolution, amendment, motion, or conference report that affects direct spending as that term
is defined by, and interpreted for purposes of, the Balanced Budget and Emergency Deficit
Control Act of 1985.
(4) EXCLUSION.—For purposes of this subsection, the terms “direct-spending legislation”
and “revenue legislation” do not include—
(A) any concurrent resolution on the budget; or
(B) any provision of legislation that affects the full funding of, and continuation of, the
deposit insurance guarantee commitment in effect on the date of enactment of the Budget
Enforcement Act of 1990.
(5) BASELINE.—Estimates prepared pursuant to this section shall—
(A) use the baseline surplus or deficit used for the most recently adopted concurrent
resolution on the budget; and
(B) be calculated under the requirements of subsections (b) through (d) of section 257 of
the Balanced Budget and Emergency Deficit Control Act of 1985 (as in effect prior to
September 30, 2002) for fiscal years beyond those covered by that concurrent resolution
on the budget.
(6) PRIOR SURPLUS.—If direct spending or revenue legislation increases the on-budget
deficit or causes an on-budget deficit when taken individually, it must also increase the on-

budget deficit or cause an on-budget deficit when taken together with all direct spending and
revenue legislation enacted since the beginning of the calendar year not accounted for in the
baseline under paragraph (5)(A), except that direct spending or revenue effects resulting in
net deficit reduction enacted in any bill pursuant to a reconciliation instruction since the
beginning of that same calendar year shall never be available on the pay-as-you-go ledger and
shall be dedicated only for deficit reduction.
(b) SUPERMAJORITY WAIVER AND APPEALS.—
(1) WAIVER.—This section may be waived or suspended in the Senate only by the
affirmative vote of three-fifths of the Members, duly chosen and sworn.
(2) APPEALS.—Appeals in the Senate from the decisions of the Chair relating to any
provision of this section shall be limited to 1 hour, to be equally divided between, and
controlled by, the appellant and the manager of the bill or joint resolution, as the case may be.
An affirmative vote of three-fifths of the Members of the Senate, duly chosen and sworn,
shall be required to sustain an appeal of the ruling of the Chair on a point of order raised
under this section.
(c) DETERMINATION OF BUDGET LEVELS.—For purposes of this section, the levels of new
budget authority, outlays, and revenues for a fiscal year shall be determined on the basis of
estimates made by the Senate Committee on the Budget.
(d) SUNSET.—This section shall expire on September 30, 2017.
(e) REPEAL.—In the Senate, section 505 of H.Con.Res. 95 (108^th Congress), the fiscal year 2004
concurrent resolution on the budget, shall no longer apply.
^B^{ill Hen}ⁱ^f^f^J^r^.
^An^al^y^s^{t on}^t^h^e^C^ong^res^s^aⁿ^{d L}^e^gⁱ^s^l^at^iv^{e P}^r^oces^s
^w^h^eⁿⁱ^ff@^crs^.^l^o^c.g^o^v^,^7-⁸⁶⁴⁶