This bill significantly reforms the federal budget process by transitioning from an annual to a biennial (two-year) budget cycle, amending statutes like the Congressional Budget Act of 1974 and Title 31 of the U.S. Code to redefine budget resolutions, appropriations, and reporting requirements in terms of a "biennium." This two-year period starts October 1 of an odd-numbered year and aims to provide more stability and predictability to federal spending and planning. Most of these biennial budgeting provisions will take effect on January 1, 2027, applying to the biennium beginning with fiscal year 2028.

The legislation introduces a zero-based budgeting requirement for federal departments and agencies. Under this system, the President must submit detailed budgets justifying all expenditures as if they were new, including alternative funding levels and measures of cost efficiency, with a baseline assumption of zero. This requirement excludes Social Security, Medicare, and Medicaid. Additionally, the bill mandates increased transparency from the Congressional Budget Office (CBO), requiring it to publicly release its fiscal and policy models, data preparation routines, and underlying data used for cost estimates, with provisions for protecting sensitive information.

The bill establishes a revised timetable for the congressional budget process, aligning it with the new biennial cycle and setting deadlines for key actions like the President's budget submission and congressional completion of budget resolutions and appropriations. To reinforce this biennial approach, the bill creates new points of order in both the House and Senate. These points of order prohibit the consideration of authorization bills for less than two fiscal years and prevent the consideration of authorization or revenue bills in odd-numbered years until the biennial budget resolution and appropriations are completed, ensuring a comprehensive two-year financial framework.

To ensure adherence to the new budget timelines, the bill introduces several compliance mechanisms and penalties. If the President's budget is submitted late, federal funds for official travel by political employees and for presidential travel expenses are restricted, with limited exceptions for return travel, local travel, and national security events. Furthermore, the President is prohibited from addressing a joint session of Congress until both the National Security Strategy and the biennial budget request are submitted. Similarly, if Congress fails to meet its budget deadlines, federal funds for travel by Members of the non-compliant House are suspended until the required action is completed.

The bill also includes significant reforms to Senate rules regarding budget enforcement. It raises the vote threshold from a simple majority or three-fifths to two-thirds of Members to waive certain budget-related points of order. A new "surgical strike" point of order is established in the Senate, allowing specific provisions within the Budget Committee's jurisdiction to be stricken from legislation if not properly reported by the committee. Finally, the legislation redefines the budget baseline used for projections, specifying that it should be based on current laws and the continuation of current discretionary appropriations levels, excluding emergency designations and supplemental appropriations, and without adjustment for inflation.