This bill grants the President new authority to address projected federal deficits by allowing the President to decline to obligate certain federal funds. If, in consultation with the Secretary of the Treasury and the Office of Management and Budget, a deficit is determined for a fiscal year, the President may exercise budgetary discretion over " covered budgetary resources ." This authority permits the President to withhold funds, up to the amount required to eliminate the deficit, from most discretionary appropriations and direct spending. Significantly, funds for the Medicare program and the Social Security program are explicitly excluded from this withholding power. Furthermore, this new discretion is granted notwithstanding the Impoundment Control Act of 1974 , thereby bypassing existing restrictions on impounding funds.