A bill to authorize the President, on a limited basis, to impound funds made available for the fiscal year 1985 or 1986 when economic conditions necessitate reductions in the Federal deficit.

Permits the President, in light of economic conditions and other relevant factors, to permanently reserve from obligation and expenditure any budget authority which is otherwise available for FY 1985 or 1986 in order to reduce the Federal deficit.

Sets forth limitations on such reservations by the President.

Requires that at least 25 percent of the total amount of the reservations made by the President for either of the two fiscal years involved be made from appropriations and other obligational authority available for national defense.

Provides that no such reservation shall have the objective, or the effect, of eliminating any program or combination of programs which has been specifically authorized by law.

Declares that the authority conferred upon the President by this Act shall be in addition to and separate from any impoundment authority granted by the Congressional Budget and Impoundment Control Act of 1974 or any other law and shall not be subject to any restrictions or limitations other than those imposed by this Act.

Requires the President, whenever he reserves any budget authority under this Act, to transmit to the Congress a special message specifying certain information.

Sets forth the procedure for passage of a joint resolution of disapproval by both Houses of Congress within 60 days after notification.

Requires the Comptroller General to review each such reservation and inform the House and the Senate whether or not it was made in accordance with the requirements of this Act.

Declares that in the administration of any program for which the distribution of funds is determined by a formula, the amount available for expenditure after funds have been reserved under this Act shall be substituted for the amount appropriated or otherwise made available in the application of the formula.