Requires the Director of the Office of Management and Budget (OMB), in preparing the final pay-as-you-go and deficit sequestration reports, to change any balance of direct spending and receipts legislation for FY 2002 so as to eliminate any balances resulting from legislation enacted prior to the date of the enactment of this Act.
Repeals the mechanism for congressional implementation of an increase of FY 2002 discretionary spending limits and the Senate defense firewall prohibiting consideration of any legislation that exceeds specified limits for defense and non-defense discretionary spending.