This is a very simple guide to the Budget Control Act of 2011. There are more details but this serves as an easy to read breakdown of the Act.
Yesterday the United States House of Representatives passed the Budget Control Act of 2011 (S. 365) the votes were tallied at 269 to 161. 174 Republicans & 95 Democrats voted in favor of the bill with 66 Republicans and 95 Democrats voting against it. The Senate voted in favor of the bill today (74-26). Now President Obama must sign the bill by 11:59 PM Tuesday August 2nd to avoid default; the President has stated that he will sign the bill to make into law.
S. 365 is broken down into five sections: (section five is in regards to Pell Grants and Student Loans)
A ten-year discretionary spending limit through 2021, which will cut the deficit by $917 billion.
Requires a vote passage on the “Joint resolution proposing a balanced budget amendment to the United States Constitution.” This will be done by in the months of October and December 31, 2011.
“Presidential Modification of the Debt Ceiling: Upon enactment the Budget Control Act of 2011, if the president certifies that the national debt is within $100 billion of the statutory limit, the Treasury would be authorized to borrow an additional $900 billion, subject to a disapproval resolution in Congress. Under the bill, the debt limit would automatically be increased by $400 billion upon submission of a certification from the president, with the rest of the $900 billion subject to the outcome of the disapproval resolution. The legislation would authorize Congress to consider a resolution of disapproval of the debt limit increase and provide expedited procedures for consideration of the joint resolution of disapproval.”
Establishing of a “super committee” (Joint Committee on Deficit Reduction) a twelve-person bi-partisan committee whose goal it is to reduce the deficit by $1.8 trillion between 2012 and 2021.
Source: gop.gov The Budget Control Act of 2011