[Comments on H.R. 2247]

GAO reviewed a proposed bill which would require that the deferral provisions of the Congressional Budget and Impoundment Control Act of 1974 be treated in the same way as rescissions, which call for approval by both houses of Congress if they are to continue beyond a specified date. GAO found that: (1) deferral authority should be preserved because temporary withholdings of funds have proven to be a useful tool; (2) most deferrals are routine and usually approved, but meritorious deferrals would have to be terminated because Congress failed to take timely action; (3) the bill would retain the statutory authority to create reserves but, in effect, would require that reserved funds be proposed for rescission; and (4) an alternative to the bill would be to limit its application to deferrals for fiscal policy reasons.