To reimplement Gramm-Rudman-Hollings to require deficit reduction and spending cuts upon 2 consecutive quarters of positive GDP growth.

SA 278. Mr. McCAIN proposed an amendment to amendment SA 98 proposed
by Mr. Inouye (for himself and Mr. Baucus) to the bill H.R. 1, making
supplemental appropriations for job preservation and creation,
infrastructure investment, energy efficiency and science, assistance to
the unemployed, and State and local fiscal stabilization, for fiscal
year ending September 30, 2009, and for other purposes; as follows:

On page 431, after line 8, insert the following:

SEC. __. REDUCING SPENDING UPON ECONOMIC GROWTH TO RELIEVE
FUTURE GENERATIONS' DEBT OBLIGATIONS.

(a) Enforcement.--Section 275 of the Balanced Budget and
Emergency Deficit Control Act of 1985 is amended by inserting
at the end thereof the following:
``(d) Reducing Spending Upon Economic Growth to Relieve
Future Generations Debt Obligations.--
``(1) Sequester.--Section 251 shall be implemented in
accordance with this subsection in any fiscal year following
a fiscal year in which there are 2 consecutive quarters of
economic growth greater than 2% of inflation adjusted GDP.
``(2) Amounts provided in the american recovery and
reinvestment act of 2009.--Appropriated amounts provided in
the American Recovery and Reinvestment Act of 2009 for a
fiscal year to which paragraph (1) applies that have not been
otherwise obligated are rescinded.
``(3) Reductions.--The reduction of sequestered amounts
required by paragraph (1) shall be 2% from the baseline for
the first year, minus any discretionary spending provided in
the American recovery and Reinvestment act of 2009, and each
of the 4 fiscal years following the first year in order to
balance the Federal budget.
``(e) Deficit Reduction Through a Sequester.--
``(1) Sequester.--Section 253 shall be implemented in
accordance with this subsection.
``(2) Maximum deficit amounts.--
``(A) In general.--When the President submits the budget
for the first fiscal year following a fiscal year in which
there are 2 consecutive quarters of economic growth greater
than 2% of inflation adjusted GDP, the President shall set
and submit maximum deficit amounts for the budget year and
each of the following 4 fiscal years. The President shall set
each of the maximum deficit amounts in a manner to ensure a
gradual and proportional decline that balances the federal
budget in not later than 5 fiscal years.
``(B) MDA.--The maximum deficit amounts determined pursuant
to subparagraph (A) shall be deemed the maximum deficit
amounts for purposes of section 601 of the Congressional
Budget Act of 1974, as in effect prior to the enactment of
Public Law 105-33.
``(C) Deficit.--For purposes of this paragraph, the term
`deficit' shall have the meaning given such term in Public
Law 99-177.''.
(b) Procedures Reestablished.--Section 275(b) of the
Balanced Budget and Emergency Deficit Control Act of 1985 is
amended to read as follows:
``(b) Procedures Reestablished.--Subject to subsection (d),
sections 251 and 252 of this Act and any procedure with
respect to such sections in this Act shall be effective
beginning on the date of enactment of this subsection.''.
(c) Baseline.--The Congressional Budget Office shall not
include any amounts, including discretionary, mandatory, and
revenues, provided in this Act in the baseline for fiscal
year 2010 and fiscal years thereafter.
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