[Application of the Balanced Budget and Emergency Deficit Control Act of 1985]

In response to congressional requests, GAO discussed the applicability of the Balanced Budget and Emergency Deficit Control Act of 1985 to payments made to states from royalties collected as a result of mineral development activities on federally owned lands. GAO noted that a report to the Comptroller General from the Office of Management and Budget and the Congressional Budget Office included an account of payments to states from receipts under the Mineral Lands Leasing Act as subject to sequestration. GAO found no legal basis under the act for exempting this account and, therefore, concurred with the determination that the payments are subject to sequestration.