Pub. L. 91-305, tit. IV, sec. 401

Sec. 401. (a) Notwithstanding the provisions of title TV of the Second Supplemental Appropriations Act, 1969, expenditures and net lending (budget outlays) of the Federal Government during the fiscal year ending June 30, 1970, shall not exceed $197,885,000,000: Provided, That whenever action, or inaction, by the Congress on requests for appropriations and other budgetary proposals varies from the President’s recommendations with respect to the fiscal year 1970, as reflected in the Budget for 1971 (H. Doc. 91–240, part 1), the Director of the Bureau of the Budget shall report to the President and to the Congress his estimate of the effect of such action or inaction on budget outlays, and the limitation set forth herein shall be correspondingly adjusted: Provided further, That the Director of the Bureau of the Budget shall report to the President and to the Congress his estimate of the effect on budget outlays of other actions by the Congress (whether initiated by the President or the Congress) and the limitation set forth herein shall be correspondingly adjusted: Provided further, That in the event the President shall estimate and determine that total budget outlays cannot be held within the overall limitation provided herein, he may, after notification in writing to the Congress stating his reasons therefor, adjust the amount by not more than one-half of 1 percent thereof. (b) (1) In the event the President shall estimate and determine that budget outlays during the fiscal year 1970 for the following items (the expenditures for which arise under appropriations or other authority not requiring annual action by the Congress) appearing on page 49 of the Budget for 1971, namely: (i) items designated “Social security, medicare, and other social insurance trust funds”; (ii) the item “National service life insurance (trust fund)”; (iii) the item “Interest”; and (iv) the item “Farm price supports (Commodity Credit Corporation)” will exceed the estimates included for such items in the Budget for 1971, the President may, after notification in writing to the Congress stating his reasons therefor, adjust accordingly the amount of the overall limitation provided in subsection (a). (2) In the event the President shall estimate and determine that receipts (credited against budget outlays) during the fiscal year 1970 derived from: (i) sales of financial assets of programs administered by the Farmers Home Administration. Export-Import Bank, agencies of the Department of Housing and Urban Development, and the Veterans’ Administration: and (ii) leases of lands on the Outer Continental Shelf; will be less than the estimates included for such items in the Budget for 1971, the President may, after notification in writing to the Congress stating his reasons therefor, adjust accordingly the amount of the overall limitation provided in subsection (a). 84 Stat. 406 (3) The aggregate amount of the adjustments made pursuant to paragraphs (1) and (2) of this subsection shall not exceed $1,000,000,000. (c) The Director of the Bureau of the Budget shall make a preliminary report, (by July 31, 1970) and a final report (by December 31, 1970) to the President and the Congress on the operation of this section.