This bill requires federal agencies to submit zero-based budgets to the Office of Management and Budget and the congressional budget committees. Under the bill, a zero-based budget is a systematic budget analysis in which managers (1) examine current objectives, operations, and costs; (2) consider alternative ways of carrying out programs or activities; and (3) rank different programs or activities by order of importance.
The bill also requires federal agencies to submit recommendations to reduce spending by at least 2% from the previous year's levels. The Department of Defense and the National Nuclear Security Administration are exempt from this requirement.
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