§ 906.
(h)
Treatment of Federal administrative expenses
(1)
Notwithstanding any other provision of this title,
1
See References in Text note below.
administrative expenses incurred by the departments and agencies, including independent agencies, of the Federal Government in connection with any program, project, activity, or account shall be subject to reduction pursuant to an order issued under
section 904 of this title, without regard to any exemption, exception, limitation, or special rule which is otherwise applicable with respect to such program, project, activity, or account under this subchapter.
(2)
Notwithstanding any other provision of law, administrative expenses of any program, project, activity, or account which is self-supporting and does not receive appropriations shall be subject to reduction under a sequester order, unless specifically exempted in this subchapter.
(3)
Payments made by the Federal Government to reimburse or match administrative costs incurred by a State or political subdivision under or in connection with any program, project, activity, or account shall not be considered administrative expenses of the Federal Government for purposes of this section, and shall be s
ubject to reduction or sequestration under this subchapter to the extent (and only to the extent) that other payments made by the Federal Government under or in connection with that program, project, activity, or account are subject to such reduction or sequestration; except that Federal payments made to a State as reimbursement of administrative costs incurred by such State under or in connection with the unemployment compensation programs specified in subsection (h)(1)
(4)
Notwithstanding any other provision of law, this subsection shall not apply with respect to the following:
(A)
Comptroller of the Currency.
(B)
Federal Deposit Insurance Corporation.
(C)
National Credit Union Administration.
(D)
National Credit Union Administration, central liquidity facility.
(E)
Federal Retirement Thrift Investment Board.
(F)
Farm Credit Administration.
(G)
Cost of War Toxic Exposures Fund.
(k)
Effects of sequestration
The effects of sequestration shall be as follows:
(1)
Budgetary resources sequestered from any account shall be permanently cancelled, except as provided in paragraph (6).
(2)
Except as otherwise provided, the same percentage sequestration shall apply to all programs, projects, and activities within a budget account (with programs, projects, and activities as delineated in the appropriation Act or accompanying report for the relevant fiscal year covering that account, or for accounts not included in appropriation Acts, as delineated in the most recently submitted President’s budget).
(3)
Administrative regulations or similar actions implementing a sequestration shall be made within 120 days of the sequestration order. To the extent that formula allocations differ at different levels of budgetary resources within an account, program, project, or activity, the sequestration shall be interpreted as producing a lower total appropriation, with the remaining amount of the appropriation being obligated in a manner consistent with program allocation formulas in substantive law.
(4)
Except as otherwise provided, obligations in sequestered accounts shall be reduced only in the fiscal year in which a sequester occurs.
(5)
If an automatic spending increase is sequestered, the increase (in the applicable index) that was disregarded as a result of that sequestration shall not be taken into account in any subsequent fiscal year.
(6)
Budgetary resources sequestered in revolving, trust, and special fund accounts and offsetting collections sequestered in appropriation accounts shall not be available for obligation during the fiscal year in which the sequestration occurs, but shall be available in subsequent years to the extent otherwise provided in law.
([Pub. L. 99–177, title II, § 256], Dec. 12, 1985, [99 Stat. 1086]; [Pub. L. 99–514, § 2], Oct. 22, 1986, [100 Stat. 2095]; [Pub. L. 100–86, title V, § 506(b)], Aug. 10, 1987, [101 Stat. 634]; [Pub. L. 100–119, title I], §§ 102(b)(2), (3), (11), 104(a)(3), (4), Sept. 29, 1987, [101 Stat. 773], 775, 776; [Pub. L. 101–73, title VII, § 743(b)], Aug. 9, 1989, [103 Stat. 437]; [Pub. L. 101–508, title XIII, § 13101(d)], Nov. 5, 1990, [104 Stat. 1388–589]; [Pub. L. 101–509, title V, § 529 [title I, § 101(b)(2)(A), (4)(H)]], Nov. 5, 1990, [104 Stat. 1427], 1439, 1440; [Pub. L. 104–193, title I, § 110(r)(2)], Aug. 22, 1996, [110 Stat. 2175]; [Pub. L. 105–33, title X, § 10208(a)(1)], (b)–(g), Aug. 5, 1997, [111 Stat. 708–710]; [Pub. L. 111–139, title I], §§ 9(b), 10, Feb. 12, 2010, [124 Stat. 21]; [Pub. L. 111–203, title III, § 352], July 21, 2010, [124 Stat. 1546]; [Pub. L. 112–81, div. A, title VI, § 631(f)(4)(B)], Dec. 31, 2011, [125 Stat. 1465]; [Pub. L. 112–239, div. A, title X, § 1076(a)(9)], Jan. 2, 2013, [126 Stat. 1948]; [Pub. L. 116–260, div. N, title II, § 235(a)], (c), Dec. 27, 2020, [134 Stat. 1959]; [Pub. L. 117–168, title VIII, § 805(b)], Aug. 10, 2022, [136 Stat. 1805]; [Pub. L. 117–263, div. A, title VI, § 626(a)], Dec. 23, 2022, [136 Stat. 2628].)