Initial Order for Emergency Deficit Control Measures for Fiscal Year 1990

By the authority vested in me as President by the statutes of the United States of America, including section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985 (Public Law No. 99 - 177), as amended by the Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987 (Public Law No. 100 - 119) (hereafter referred to as "the Act"), and in accordance with the report of the Director of the Office of Management and Budget issued August 25, 1989, pursuant to section 251(a)(2) of the Act, I hereby order, pursuant to section 252(a), that the following actions be taken effective October 1, 1989, to implement the sequestrations and reductions determined by the Director in that report:

(1) Each automatic spending increase that would, but for the provisions of the Act, take effect during fiscal year 1990 is suspended as provided in section 252. The programs with such automatic spending increases subject to reduction in this manner, specified by account title, are National Wool Act; Special milk program; and Vocational rehabilitation.

(2) The following are sequestered as provided in section 252: new budget authority; unobligated balances; new loan guarantee commitments or limitations; new direct loan obligations, commitments, or limitations; spending authority as defined in section 401(c)(2) of the Congressional Budget Act of 1974, as amended; and obligation limitations.

(3) For accounts making payments otherwise required by substantive law, the head of each Department or agency is directed to modify the calculation of each such payment to the extent necessary to reduce the estimate of total required payments for the fiscal year by the amount specified in the Director's report.

(4) For accounts making commitments for guaranteed loans and obligations for direct loans as authorized by substantive law, the head of each Department or agency is directed to reduce the level of such commitments or obligations to the extent necessary to conform to the limitations established by the Act and specified in the Director's determination of August 25, 1989.

(5) Each Department or agency head may, to the extent otherwise not prohibited by law, use existing authority to deobligate balances of budgetary resources as necessary to apply the required reduction or sequestration in as uniform a manner as possible for any person or other recipient entitled to payments under any formula-driven calculations specified in the substantive law. Deobligations may include budgetary obligations for which checks have not been issued or funds not otherwise disbursed (funds obligated but unexpended).

In accordance with section 252(a)(4)(A), amounts suspended or sequestered under this Order shall be withheld from obligation or expenditure pending the issuance of a final order under section 252(b).

If Congress acts to reduce the deficit projected in this report by $6.2 billion prior to the snapshot date for the Final Report of the Director, then a final order will be issued cancelling the sequester. If the deficit is reduced by a lesser amount, the final order will direct that funds be sequestered in accordance with section 252 of the Act.

This Order shall be reported to Congress and shall be published in the Federal Register.

George Bush
The White House,
August 25, 1989.