A bill to amend the Congressional Budget Act of 1974 to limit the level of total budget outlays in any fiscal year and to require compensation for additional costs imposed on State and local governments, and for other purposes.

Amends the Congressional Budget Act of 1974 to prohibit total budget outlays for any fiscal year after fiscal year 1980 from exceeding the total budget outlays for the preceding fiscal year by a greater percentage than the percentage increase in the gross national product in the preceding calendar year. Reduces further the permissible total budget outlays by percentages based upon the inflation rate and Federal grants to State and local governments. Permits: (1) an increase in the permissible total budget outlays if both Houses of Congress agree by a three-fourths vote; and (2) emergency outlays to be authorized if the President has declared an emergency and both Houses agree by a two-thirds vote.

Prohibits requiring State or local governments to perform additional functions without compensation for necessary costs incurred in connection with such functions. Requires such compensation to have been authorized and included as a part of the permissible total budget outlays.

Requires concurrent resolutions on the budget to include the estimated amount of grants to State and local governments, in the aggregate and as a fraction of total budget outlays, and any changes.

Amends the Budget and Accounting Act, 1921, to require the Budget to be prepared in compliance with this Act. Directs the President to take necessary action to assure continuing compliance with this Act.