Notice2022-01516

Notice; 2021 Statutory Pay-As-You-Go Act Annual Report

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
January 26, 2022

Issuing agencies

Management and Budget Office

Abstract

This report is being published as required by the Statutory Pay-As-You-Go (PAYGO) Act of 2010. The Act requires that OMB issue an annual report and a sequestration order, if necessary.

Full Text

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<title>Federal Register, Volume 87 Issue 17 (Wednesday, January 26, 2022)</title>
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[Federal Register Volume 87, Number 17 (Wednesday, January 26, 2022)]
[Notices]
[Pages 4055-4058]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-01516]


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OFFICE OF MANAGEMENT AND BUDGET


Notice; 2021 Statutory Pay-As-You-Go Act Annual Report

AGENCY: Office of Management and Budget (OMB).

ACTION: Notice.

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SUMMARY: This report is being published as required by the Statutory 
Pay-As-You-Go (PAYGO) Act of 2010. The Act requires that OMB issue an 
annual report and a sequestration order, if necessary.

FOR FURTHER INFORMATION CONTACT: Erin O'Brien. 202-395-3106.

SUPPLEMENTARY INFORMATION: This report can be found at <a href="https://www.whitehouse.gov/omb/paygo/">https://www.whitehouse.gov/omb/paygo/</a>.
    Authority: 2 U.S.C. 934.

Kelly A. Kinneen,
Assistant Director for Budget.
    This Report is being published pursuant to section 5 of the 
Statutory Pay-As-You-Go (PAYGO) Act of 2010, Public Law 111-139, 124 
Stat. 8, 2 U.S.C. 934, which requires that OMB issue an annual PAYGO 
report, including a sequestration order if necessary, no later than 14 
working days after the end of a congressional session.
    This Report describes the budgetary effects of all PAYGO 
legislation enacted during the first session of the 117th Congress and 
presents the 5-year and 10-year PAYGO scorecards maintained by OMB.\1\ 
Because neither the 5-year nor 10-year scorecard shows a debit for the 
budget year, which for purposes of this Report is fiscal year 2022,\2\ 
a sequestration order under subsection 5(b) of the PAYGO Act, 2 U.S.C 
934(b) is not required.
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    \1\ This report encompasses laws enacted between January 3, 2021 
at noon and January 3, 2022 at 11:56 a.m. (Pub. L. 116-285 through 
Pub. L. 117-81).
    \2\ References to years on the PAYGO scorecards are to fiscal 
years.
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    The budget year balance on each of the PAYGO scorecards is zero 
because the Protecting Medicare and American Farmers from Sequester 
Cuts Act (Pub. L. 117-71) shifted the debits on both scorecards from 
fiscal year 2022 to fiscal year 2023. The change directed by Public Law 
117-71 is discussed in more detail in section IV of this report.
    During the first session of the 117th Congress, two laws with PAYGO 
effects were enacted with emergency requirements under section 4(g) of 
the PAYGO Act, 2 U.S.C. 933(g). Four laws had estimated budgetary 
effects on direct spending and/or revenues that were excluded from the 
calculations of the PAYGO scorecards due to provisions excluding all or 
part of the law from section 4(d) of the PAYGO Act, 2 U.S.C. 933(d).

I. PAYGO Legislation With Budgetary Effects

    PAYGO legislation is authorizing legislation that affects direct 
spending or revenues, and appropriations legislation that affects 
direct spending in the years after the budget year or affects revenues 
in any year.\3\ For a more complete description of the Statutory PAYGO 
Act, see Chapter 6, ``Budget Concepts,'' of the Analytical

[[Page 4056]]

Perspectives volume of the 2022 President's Budget, found on the 
website of the U.S. Government Printing Office (<a href="https://www.govinfo.gov/app/collection/budget/2022/BUDGET-2022-PER">https://www.govinfo.gov/app/collection/budget/2022/BUDGET-2022-PER</a>).
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    \3\ Provisions in appropriations acts that affect direct 
spending in the years after the budget year (also known as 
``outyears'') or affect revenues in any year are considered to be 
budgetary effects for the purposes of the PAYGO scorecards except if 
the provisions produce outlay changes that net to zero over the 
current year, budget year, and the four subsequent years. As 
specified in section 3 of the PAYGO Act, off-budget effects are not 
counted as budgetary effects. Off-budget effects refer to effects on 
the Social Security trust funds (Old-Age and Survivors Insurance and 
Disability Insurance) and the Postal Service.
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    The PAYGO Act's requirement of deficit neutrality is based on two 
scorecards that tally the cumulative budgetary effects of PAYGO 
legislation as averaged over rolling 5- and 10- year periods starting 
with the budget year. The 5-year and 10-year PAYGO scorecards for each 
congressional session begin with the balances of costs or savings 
carried over from previous sessions and then tally the costs or savings 
of PAYGO laws enacted in the most recent session.
    The 5-year and 10-year PAYGO scorecards for the first session of 
the 117th Congress began with balances of zero in each year because 
Section 1401(d) of Public Law 116-260 set each year of the scorecards 
to zero at the end of the second session of the 116th Congress. Laws 
enacted during the first session of the 117th Congress created balances 
on the 5- and 10-year scorecards of $370,633 million and $187,020 
million in each year, respectively. Public Law 117-71 shifted the 
fiscal year 2022 debits on both scorecards to fiscal year 2023. 
Therefore, the 2022 balance on both the 5- and 10-year scorecards is 
zero and the 2023 balances on the 5- and 10-year scorecards are 
$741,265 million and $374,039 million, respectively. The debit for the 
remaining years on the 5-year scorecard, 2024-2026, is $370,633 million 
per year and the debit for the remaining years on the 10-year 
scorecard, 2024-2031, is $187,020 million per year.
    In the first session of the 117th Congress, 35 laws were enacted 
that were determined to constitute PAYGO legislation. Of the 35 enacted 
PAYGO laws, 12 laws were estimated to have PAYGO budgetary effects 
(costs or savings) in excess of $500,000 over one or both of the 5-year 
or 10-year PAYGO windows. These were:
    <bullet> Public Law 116-286, 1921 Silver Dollar Coin Anniversary 
Act;
    <bullet> Public Law 116-313, To deem an urban Indian organization 
and employees thereof to be a part of the Public Health Service for the 
purposes of certain claims for personal injury, and for other 
purposes.;
    <bullet> Public Law 116-315, Johnny Isakson and David P. Roe, M.D. 
Veterans Health Care and Benefits Improvement Act of 2020;
    <bullet> Public Law 116-325, Bankruptcy Administration Improvement 
Act of 2020;
    <bullet> Public Law 117-2, American Rescue Plan Act of 2021;
    <bullet> Public Law 117-7, To prevent across-the-board direct 
spending cuts, and for other purposes.;
    <bullet> Public Law 117-27, VOCA Fix to Sustain the Crime Victims 
Fund Act of 2021;
    <bullet> Public Law 117-43, Extending Government Funding and 
Delivering Emergency Assistance Act;
    <bullet> Public Law 117-58, Infrastructure Investment and Jobs Act;
    <bullet> Public Law 117-61, Protecting America's First Responders 
Act of 2021;
    <bullet> Public Law 117-71, Protecting Medicare and American 
Farmers from Sequester Cuts Act; and
    <bullet> Public Law 117-76, Responsible Education Mitigating 
Options and Technical Extensions Act.
    In addition to the laws identified above, 23 laws enacted in this 
session were estimated to have negligible budgetary effects on the 
PAYGO scorecards--costs or savings of less than $500,000 over both the 
5-year and 10-year PAYGO windows--including the two laws enacted with 
emergency designations discussed below.

II. Budgetary Effects Excluded From the Scorecard Balances

A. Legislation Designated as Emergency Requirements

    As shown on the scorecards, two laws were enacted in the first 
session of the 117th Congress with an emergency designation under the 
Statutory PAYGO Act, and that had PAYGO effects:
    <bullet> Public Law 117-31, Emergency Security Supplemental 
Appropriations Act, 2021; and
    <bullet> Public Law 117-39, Emergency Repatriation Assistance for 
Returning Americans Act.
    The effects of the provisions in these laws that are designated as 
emergency requirements appear on the scorecard, but are subtracted 
before computing the scorecard totals.

B. Statutory Provisions Excluding Legislation From the Scorecards

    Four laws enacted in the first session of the 117th Congress had 
estimated budgetary effects on direct spending and revenues that were 
excluded from the calculations for the PAYGO scorecards due to 
provisions in law excluding all or part of the law from section 4(d) of 
the PAYGO Act.
    One law was excluded entirely from the scorecards:
    <bullet> Public Law 117-6, PPP Extension Act of 2021.
    In addition, budgetary effects in three laws were excluded by 
provisions excluding certain portions of those laws from the 
scorecards:
    <bullet> Public Law 117-43, Extending Government Funding and 
Delivering Emergency Assistance Act;
    <bullet> Public Law 117-58, Infrastructure Investment and Jobs Act; 
and
    <bullet> Public Law 117-70, Further Extending Government Funding 
Act.\4\
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    \4\ Section 2201 of Public Law 117-70 excluded the budgetary 
effects of Division C from the PAYGO scorecards. There were no PAYGO 
budgetary effects for Divisions A and B of Public Law 117-70, so the 
scorecards do not include an entry for Public Law 117-70.
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III. PAYGO Scorecards

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IV. Legislative Revisions to the PAYGO Scorecards

    Section 7 of Public Law 117-71, the Protecting Medicare and 
American Farmers from Sequester Cuts Act, states, ``For the purposes of 
the annual report issued pursuant to section 5 of the Statutory Pay-As-
You-Go Act of 2010 (2 U.S.C. 934) after adjournment of the first 
session of the 117th Congress, and for determining whether a 
sequestration order is necessary under such section, the debit for the 
budget year on the 5-year scorecard, if any, and the 10-year scorecard, 
if any, shall be deducted from such scorecard in 2022 and added to such 
scorecard in 2023.'' Accordingly, both the 5- and 10-year scorecards 
deduct the debit from 2022 and add that debit to 2023.

V. Sequestration Order

    As shown on the scorecards, the budgetary effects of PAYGO 
legislation enacted in the first session of the 117th Congress, 
combined with section 7 of Public Law 117-71, resulted in no costs on 
either the 5-year or the 10-year scorecard in the budget year, which is 
2022 for the purposes of this Report. Because the costs for the budget 
year, as shown on the scorecards, were set to zero for the budget year, 
there is no ``debit'' on either scorecard under section 3 of the PAYGO 
Act, 2 U.S.C. 932, and a sequestration order is not required.\5\
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    \5\ Sequestration reductions pursuant to the Balanced Budget and 
Deficit Control Act (BBEDCA) Section 251A for 2022 were calculated 
and ordered in a separate report and are not affected by this 
determination. See: <a href="https://www.whitehouse.gov/wp-content/uploads/2021/05/BBEDCA_251A_Sequestration_Report_FY2022.pdf">https://www.whitehouse.gov/wp-content/uploads/2021/05/BBEDCA_251A_Sequestration_Report_FY2022.pdf</a>
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[FR Doc. 2022-01516 Filed 1-25-22; 8:45 am]
BILLING CODE 3110-01-C


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Indexed from Federal Register on January 26, 2022.

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