ACTIONS REQUIRED IN RESPONSE TO SUPREME COURT DECISION IN GRAMM-RUDMAN-HOLLINGS CASE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP88G01116R001102000001-7
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 7
• Document Creation Date: December 22, 2016
• Document Release Date: February 11, 2011
• Sequence Number: 1
• Publication Date: July 8, 1986
• Content Type: MEMO

Sanitized Copy Approved for Release 2011/02/11: CIA-RDP88G01116R001102000001-7
EXECUTIVE SECRETARIAT
ROUTING SLIP
~#6
Compt
X My
STAT
Ex 1 JuIre8 '
Sanitized Copy Approved for Release 2011/02/11: CIA-RDP88G01116R001102000001-7
 Sanitized Copy Approved for Release 2011/02/11: CIA-RDP88GO1 1 16RO01 102000001-7
;xosu~~ve Re ;sttY
EXECUTIVE OFFICE OF THE PRESIDENT 3120x
OFFICE OF MANAGEMENT AND BUDGET L-6
July 8, 1986
M-86-24
MEMORANDUM FOR THE HFADS OF EXECUTIVE DEPARTMENTS AND AGENCIES
SUBJECT: [ As aequired in Response to Supreme Court
Decision in Gramm-Rudman-Hollings*Case
1. This Memorandum provides instructions to the heads of
all agencies about actions that may or may not be required in
response to the decision by the Supreme Court invalidating some
f the procedures under which some FY 1986 funds were sequestered
pursuant to the Gramm-Rudman-Hollings Act.
2. BACKGROUND. The Supreme Court of the United States has
held that certain of the procedures governing the sequestration
process were unconstitutional because of the role of the
Comptroller General in that process. The decision, which upheld
the argument of the Department of Justice on this point, if
implemented would invalidate the President's February 1st Order
sequestering funds for FY 1986. The Supreme Court, however,
stayed the effect of its decision for no more than 60 days in
order to permit Congress to exercise the fallback mechanism which
was built into the statute -- under which Congress could enact a
simple joint resolution affirming the sequester.
3. ACTION REQUIRED. No action is required of any agency at
this time. Since the Supreme Court stayed the effectiveness of
its order, the funds which were sequestered on February 1st
remain frozen and may not be obligated by the agencies during the
pendency of the stay. Accordingly, for the next 60 days or until
Congress acts, the Supreme Court's decision does not affect the
status of any sequestered funds.
Under the fallback provision of Gramm-Rudman-Hollings, a
Congressional Temporary Joint Committee on Deficit Reduction will
be established. A Joint Report of the Directors of the Office of
Management and Budget and the Congressional Budget Office will be
transmitted to the Temporary Joint Committee for appropriate
action. The Committee is required to report within five days a
joint resolution to reinstate the sequester. Both Houses of
Congress are required to vote on the resolution within five days.
The joint resolution then will be transmitted to the President
for approval or veto. Once an implementing joint resolution has
been enacted, the President's sequester order will again have
full legal force and effect.
Sanitized Copy Approved for Release 2011/02/11: CIA-RDP88GO1116RO01102000001 7
 Sanitized Copy Approved for Release 2011/02/11: CIA-RDP88G01116R001102000001-7
Agencies should not take any steps to obligate the funds
sequestered under Gramm-Rudman-Hollings until they receive
explicit instructions from the Office of Management and Budget.
I will issue additional guidance to the agencies upon the
reinstatement of the sequester, pursuant to the fallback
mechanism, or the expiration of the stay, whichever occurs first.
Thank you for your cooperation in this matter.
Sanitized Copy Approved for Release 2011/02/11: CIA-RDP88G01116R001102000001-7
 Sanitized Copy Approved for Release 2011/02/11: CIA-RDP88GO1 1 16RO01 102000001-7
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
July 8, 1986
M-86-24
MEMORANDUM FOR THE HFADS OF EXECUTIVE DEPARTMENTS AND AGENCIES
SUBJECT: [ Art rr quired in Response to Supreme Court
Decision in Gramm-Rudman-Hollings'Case
1. This Memorandum provides instructions to the heads of
all agencies about actions that may or may not be required in
response to the decision by the Supreme Court invalidating some
f the procedures under which some FY 1986 funds were sequestered
pursuant to the Gramm-Rudman-Hollings Act.
2. BACKGROUND. The Supreme Court of the United States has
held that certain of the procedures governing the sequestration
process were unconstitutional because of the role of the
Comptroller General in that process. The decision, which upheld
the argument of the Department of Justice on this point, if
implemented would invalidate the President's February 1st Order
sequestering funds for FY 1986. The Supreme Court, however,
stayed the effect of its decision for no more than 60 days in
order to permit Congress to exercise the fallback mechanism which
was built into the statute -- under which Congress could enact a
simple joint resolution affirming the sequester.
3. ACTION REQUIRED. No action is required of any agency at
this time. Since the Supreme Court stayed the effectiveness of
its order, the funds which were sequestered on February 1st
remain frozen and may not be obligated by the agencies during the
pendency of the stay. Accordingly, for the next 60 days or until
Congress acts, the Supreme Court's decision does not affect the
status of any sequestered funds.
Under the fallback provision of Gramm-Rudman-Hollings, a
Congressional Temporary Joint Committee on Deficit Reduction will
be established. A Joint Report of the Directors of the Office of
Management and Budget and the Congressional Budget Office will be
transmitted to the Temporary Joint Committee for appropriate
action. The Committee is required to report within five days a
joint resolution to reinstate the sequester. Both Houses of
Congress are required to vote on the resolution within five days.
The joint resolution then will be transmitted to the President
for approval or veto. Once an implementing joint resolution has
been enacted, the President's sequester order will again have
full legal force and effect.
Sanitized Copy Approved for Release 2011/02/11: CIA-RDP88GO1 1 16RO01 102000001-7
 Sanitized Copy Approved for Release 2011/02/11: CIA-RDP88G01116R001102000001-7
Agencies should not take any steps to obligate the funds
sequestered under Gramm-Rudman-Hollings until they receive
explicit instructions from the Office of Management and Budget.
I will issue additional guidance to the agencies upon the
reinstatement of the sequester, pursuant to the fallback
mechanism, or the expiration of the stay, whichever occurs first.
Thank you for your cooperation in this matter.
Sanitized Copy Approved for Release 2011/02/11: CIA-RDP88G01116R001102000001-7
 Sanitized Copy Approved for Release 2011/02/11: CIA-RDP88GO1 1 16RO01 102000001-7
EXCCUfIt~ R8 iS1
86.3120x
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
July 8, 1986
M-86-24
MEMORANDUM FOR THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES
SUBJECT: equired in Response to Supreme Court
Decision in Gramm-Rudman-Hollings'Case
1. This Memorandum provides instructions to the heads of
all agencies about actions that may or may not be required in
response to the decision by the Supreme Court invalidating some
f the procedures under which some FY 1986 funds were sequestered
pursuant to the Gramm-Rudman-Hollings Act.
2. BACKGROUND. The Supreme Court of the United States has
held that certain of the procedures governing the sequestration
process were unconstitutional because of the role of the
Comptroller General in that process. The decision, which upheld
the argument of the Department of Justice on this point, if
implemented would invalidate the President's February lst Order
sequestering funds for FY 1986. The Supreme Court, however,
stayed the effect of its decision for no more than 60 days in
order to permit Congress to exercise the fallback mechanism which
was built into the statute -- under which Congress could enact a
simple joint resolution affirming the sequester.
3. ACTION REQUIRED. No action is required of any agency at
this time. Since the Supreme Court stayed the effectiveness of
its order, the funds which were sequestered on February lst
remain frozen and may not be obligated by the agencies during the
pendency of the stay. Accordingly, for the next 60 days or until
Congress acts, the Supreme Court's decision does not affect the
status of any sequestered funds.
Under the fallback provision of Gramm-Rudman-Hollings, a
Congressional Temporary Joint Committee on Deficit Reduction will
be established. A Joint Report of the Directors of the Office of
Management and Budget and the Congressional Budget Office will be
transmitted to the Temporary Joint Committee for appropriate
action. The Committee is required to report within five days a
joint resolution to reinstate the sequester. Both Houses of
Congress are required to vote on the resolution within five days.
The joint resolution then will be transmitted to the President
for approval or veto. Once an implementing joint resolution has
been enacted, the President's sequester order will again have
full legal force and effect.
Sanitized Copy Approved for Release 2011/02/11: CIA-RDP88GO1 1 16RO01 102000001-7
 1 4 h , .. L . . " I . . L 1.. ,., ..1 ...
I 1, Sanitized Copy Approved for Release 2011/02/11: CIA-RDP88G01116R001102000001-7
Agencies should not take any steps to obligate the funds
sequestered under Gramm-Rudman-Hollings until they receive
explicit instructions from the Office of Management and Budget.
I will issue additional guidance to the agencies upon the
reinstatement of the sequester, pursuant to the fallback
mechanism, or the expiration of the stay, whichever occurs first.
Thank you for your cooperation in this matter.
Sanitized Copy Approved for Release 2011/02/11: CIA-RDP88G01116R001102000001-7