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111TH CONGRESS 
1ST SESSION 

H. R. 1 
Making supplemental appropriations for job preservation and creation, infrastructure 
investment, energy efficiency and science, assistance to the 
unemployed, and State and local fiscal stabilization, for the fiscal year 
ending September 30, 2009, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

Mr. OBEY (for himself, Mr. RANGEL, Mr. WAXMAN, Mr. GEORGE MILLER of 
California, Mr. OBERSTAR, Mr. GORDON of Tennessee, Mr. FRANK of 
Massachusetts, Ms. VELAZQUEZ, and Mr. TOWNS) introduced the following 
bill; which was referred to the Committee on 

lllllllllllllll 


A BILL 


Making supplemental appropriations for job preservation and 
creation, infrastructure investment, energy efficiency and 
science, assistance to the unemployed, and State and 
local fiscal stabilization, for the fiscal year ending September 
30, 2009, and for other purposes. 

1 


Be it enacted by the Senate and House of Representa2 
tives of the United States of America in Congress assembled, 
3 
SECTION 1. SHORT TITLE. 
4 


This Act may be cited as the ‘‘American Recovery 
5 
and Reinvestment Act of 2009’’. 

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2 

1 
SEC. 2. TABLE OF CONTENTS. 

2 


The table of contents for this Act is as follows: 

DIVISION A—APPROPRIATION PROVISIONS 

TITLE I—GENERAL PROVISIONS 
TITLE II—AGRICULTURE, NUTRITION, AND RURAL DEVELOPMENT 
TITLE III—COMMERCE, JUSTICE, AND SCIENCE 
TITLE IV—DEFENSE 
TITLE V—ENERGY AND WATER 
TITLE VI—FINANCIAL SERVICES AND GENERAL GOVERNMENT 
TITLE VII—HOMELAND SECURITY 
TITLE VIII—INTERIOR AND ENVIRONMENT 
TITLE IX—LABOR, HEALTH AND HUMAN SERVICES, AND EDU


CATION 
TITLE X—MILITARY CONSTRUCTION AND VETERANS AFFAIRS 
TITLE XI—DEPARTMENT OF STATE 
TITLE XII—TRANSPORTATION, AND HOUSING AND URBAN DEVEL


OPMENT 
TITLE XIII—STATE FISCAL STABILIZATION FUND 


DIVISION B—OTHER PROVISIONS 

TITLE I—TAX PROVISIONS 
TITLE II—ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING 
FAMILIES 
TITLE III—HEALTH INSURANCE ASSISTANCE FOR THE UNEM


PLOYED 
TITLE IV—HEALTH INFORMATION TECHNOLOGY 
TITLE V—MEDICAID PROVISIONS 
TITLE VI—BROADBAND COMMUNICATIONS 
TITLE VII—ENERGY 


3 
SEC. 3. PURPOSES AND PRINCIPLES. 

4 
(a) STATEMENT OF PURPOSES.—The purposes of 

5 
this Act include the following: 

6 
(1) To preserve and create jobs and promote 

7 
economic recovery. 

8 


(2) To assist those most impacted by the reces9 
sion. 

10 


(3) To provide investments needed to increase 
11 


economic efficiency by spurring technological ad


12 


vances in science and health. 

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1 


(4) To invest in transportation, environmental 

2 


protection, and other infrastructure that will provide 

3 


long-term economic benefits. 

4 


(5) To stabilize State and local government 

5 


budgets, in order to minimize and avoid reductions 
6 
in essential services and counterproductive state and 
7 
local tax increases. 
8 
(b) GENERAL PRINCIPLES CONCERNING USE OF 
9 
FUNDS.—The President and the heads of Federal depart10 
ments and agencies shall manage and expend the funds 
11 
made available in this Act so as to achieve the purposes 
12 
specified in subsection (a), including commencing expendi13 
tures and activities as quickly as possible consistent with 
14 
prudent management. 
15 
SEC. 4. REFERENCES. 
16 
Except as expressly provided otherwise, any reference 
17 
to ‘‘this Act’’ contained in any division of this Act shall 
18 
be treated as referring only to the provisions of that divi19 
sion. 
20 
SEC. 5. EMERGENCY DESIGNATIONS. 
21 


(a) IN GENERAL.—Each amount in this Act is des22 
ignated as an emergency requirement and necessary to 
23 
meet emergency needs pursuant to section 204(a) of S. 
24 
Con. Res. 21 (110th Congress) and section 301(b)(2) of 

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1 
S. Con. Res. 70 (110th Congress), the concurrent resolu2 
tions on the budget for fiscal years 2008 and 2009. 
3 


(b) PAY-AS-YOU-GO.—All applicable provisions in 
4 
this Act are designated as an emergency for purposes of 
5 
pay-as-you-go principles. 
6 
DIVISION A—APPROPRIATION 
7 
PROVISIONS 
8 
SEC. 1001. STATEMENT OF APPROPRIATIONS. 
9 
The following sums in this Act are appropriated, out 
10 
of any money in the Treasury not otherwise appropriated, 
11 
for the fiscal year ending September 30, 2009, and for 
12 
other purposes. 
13 
TITLE I—GENERAL PROVISIONS 
14 
Subtitle A—Use of Funds 
15 
SEC. 1101. RELATIONSHIP TO OTHER APPROPRIATIONS. 
16 
Each amount appropriated or made available in this 
17 
Act is in addition to amounts otherwise appropriated for 
18 
the fiscal year involved. Enactment of this Act shall have 
19 
no effect on the availability of amounts under the Con20 
tinuing Appropriations Resolution, 2009 (division A of 
21 
Public Law 110-329). 
22 
SEC. 1102. PREFERENCE FOR QUICK-START ACTIVITIES. 
23 


In using funds made available in this Act for infra24 
structure investment, recipients shall give preference to 
25 
activities that can be started and completed expeditiously, 

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1 
including a goal of using at least 50 percent of the funds 
2 
for activities that can be initiated not later than 120 days 
3 
after the date of the enactment of this Act. Recipients 
4 
shall also use grant funds in a manner that maximizes 
5 
job creation and economic benefit. 
6 
SEC. 1103. REQUIREMENT OF TIMELY AWARD OF GRANTS. 
7 
(a) FORMULA GRANTS.—Formula grants using funds 
8 
made available in this Act shall be awarded not later than 
9 
30 days after the date of the enactment of this Act (or, 
10 
in the case of appropriations not available upon enact11 
ment, not later than 30 days after the appropriation be12 
comes available for obligation), unless expressly provided 
13 
otherwise in this Act. 
14 
(b) COMPETITIVE GRANTS.—Competitive grants 
15 
using funds made available in this Act shall be awarded 
16 
not later than 90 days after the date of the enactment 
17 
of this Act (or, in the case of appropriations not available 
18 
upon enactment, not later than 90 days after the appro19 
priation becomes available for obligation), unless expressly 
20 
provided otherwise in this Act. 
21 


(c) ADDITIONAL PERIOD FOR NEW PROGRAMS.—The 
22 
time limits specified in subsections (a) and (b) may each 
23 
be extended by up to 30 days in the case of grants for 
24 
which funding was not provided in fiscal year 2008. 

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1 
SEC. 1104. USE IT OR LOSE IT REQUIREMENTS FOR GRANT2 
EES. 
3 


(a) DEADLINE FOR BINDING COMMITMENTS.—Each 
4 
recipient of a grant made using amounts made available 
5 
in this Act in any account listed in subsection (c) shall 
6 
enter into contracts or other binding commitments not 
7 
later than 1 year after the date of the enactment of this 
8 
Act (or not later than 9 months after the grant is award9 
ed, if later) to make use of 50 percent of the funds award10 
ed, and shall enter into contracts or other binding commit11 
ments not later than 2 years after the date of the enact12 
ment of this Act (or not later than 21 months after the 
13 
grant is awarded, if later) to make use of the remaining 
14 
funds. In the case of activities to be carried out directly 
15 
by a grant recipient (rather than by contracts, subgrants, 
16 
or other arrangements with third parties), a certification 
17 
by the recipient specifying the amounts, planned timing, 
18 
and purpose of such expenditures shall be deemed a bind19 
ing commitment for purposes of this section. 
20 
(b) REDISTRIBUTION OF UNCOMMITTED FUNDS.— 
21 
The head of the Federal department or agency involved 
22 
shall recover or deobligate any grant funds not committed 
23 
in accordance with subsection (a), and redistribute such 
24 
funds to other recipients eligible under the grant program 
25 
and able to make use of such funds in a timely manner 

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1 
(including binding commitments within 120 days after the 
2 
reallocation). 
3 


(c) APPROPRIATIONS TO WHICH THIS SECTION AP4 
PLIES.—This section shall apply to grants made using 
5 
amounts appropriated in any of the following accounts 
6 
within this Act: 
7 
(1) ‘‘Environmental Protection Agency—State 
8 
and Tribal Assistance Grants’’. 
9 
(2) ‘‘Department of Transportation—Federal 
10 
Aviation Administration—Grants-in-Aid for Air11 
ports’’. 
12 
(3) ‘‘Department of Transportation—Federal 
13 
Railroad Administration—Capital Assistance for 
14 
Intercity Passenger Rail Service’’. 
15 
(4) ‘‘Department of Transportation—Federal 
16 
Transit Administration—Capital Investment 
17 
Grants’’. 
18 
(5) ‘‘Department of Transportation—Federal 
19 
Transit Administration—Fixed Guideway Infra20 
structure Investment’’. 
21 


(6) ‘‘Department of Transportation—Federal 
22 
Transit Administration—Transit Capital Assist23 
ance’’. 

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1 


(7) ‘‘Department of Housing and Urban Devel


2 


opment—Public and Indian Housing—Public Hous


3 


ing Capital Fund’’. 

4 


(8) ‘‘Department of Housing and Urban Devel


5 


opment—Public and Indian Housing—Elderly, Dis6 
abled, and Section 8 Assisted Housing Energy Ret7 
rofit’’. 
8 
(9) ‘‘Department of Housing and Urban Devel9 
opment—Public and Indian Housing—Native Amer10 
ican Housing Block Grants’’. 
11 
(10) ‘‘Department of Housing and Urban De12 
velopment—Community Planning and Develop13 
ment—HOME Investment Partnerships Program’’. 
14 
(11) ‘‘Department of Housing and Urban De15 
velopment—Community Planning and Develop16 
ment—Self-Help and Assisted Homeownership Op17 
portunity Program’’. 
18 
SEC. 1105. PERIOD OF AVAILABILITY. 
19 
(a) IN GENERAL.—All funds appropriated in this Act 
20 
shall remain available for obligation until September 30, 
21 
2010, unless expressly provided otherwise in this Act. 
22 


(b) REOBLIGATION.—Amounts that are not needed 
23 
or cannot be used under title X of this Act for the activity 
24 
for which originally obligated may be deobligated and, not25 
withstanding the limitation on availability specified in sub-

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1 
section (a), reobligated for other activities that have re2 
ceived funding from the same account or appropriation in 
3 
such title. 
4 
SEC. 1106. SET-ASIDE FOR MANAGEMENT AND OVERSIGHT. 
5 


Unless other provision is made in this Act (or in other 
6 
applicable law) for such expenses, up to 0.5 percent of 
7 
each amount appropriated in this Act may be used for the 
8 
expenses of management and oversight of the programs, 
9 
grants, and activities funded by such appropriation, and 
10 
may be transferred by the head of the Federal department 
11 
or agency involved to any other appropriate account within 
12 
the department or agency for that purpose. Funds set 
13 
aside under this section shall remain available for obliga14 
tion until September 30, 2012. 
15 
SEC. 1107. APPROPRIATIONS FOR INSPECTORS GENERAL. 
16 
In addition to funds otherwise made available in this 
17 
Act, there are hereby appropriated the following sums to 
18 
the specified Offices of Inspector General, to remain avail19 
able until September 30, 2013, for oversight and audit of 
20 
programs, grants, and projects funded under this Act: 
21 


(1) ‘‘Department of Agriculture—Office of In


22 


spector General’’, $22,500,000. 

23 


(2) ‘‘Department of Commerce—Office of In


24 


spector General’’, $10,000,000. 

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1 


(3) ‘‘Department of Defense—Office of the In


2 


spector General’’, $15,000,000. 

3 


(4) ‘‘Department of Education—Departmental 

4 


Management—Office of the Inspector General’’, 

5 


$14,000,000. 
6 
(5) ‘‘Department of Energy—Office of Inspec7 
tor General’’, $15,000,000. 
8 
(6) ‘‘Department of Health and Human Serv9 
ices—Office of the Secretary—Office of Inspector 
10 
General’’, $19,000,000. 
11 
(7) ‘‘Department of Homeland Security—Office 
12 
of Inspector General’’, $2,000,000. 
13 
(8) ‘‘Department of Housing and Urban Devel14 
opment—Management and Administration—Office 
15 
of Inspector General’’, $15,000,000. 
16 
(9) ‘‘Department of the Interior—Office of In17 
spector General’’, $15,000,000. 
18 
(10) ‘‘Department of Justice—Office of Inspec19 
tor General’’, $2,000,000. 
20 
(11) ‘‘Department of Labor—Departmental 
21 
Management—Office of Inspector General’’, 
22 


$6,000,000. 

23 


(12) ‘‘Department of Transportation—Office of 

24 


Inspector General’’, $20,000,000. 

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1 


(13) ‘‘Department of Veterans Affairs—Office 

2 


of Inspector General’’, $1,000,000. 

3 


(14) ‘‘Environmental Protection Agency—Office 

4 


of Inspector General’’, $20,000,000. 

5 


(15) ‘‘General Services Administration—Gen6 
eral Activities—Office of Inspector General’’, 
7 
$15,000,000. 
8 
(16) ‘‘National Aeronautics and Space Adminis9 
tration—Office of Inspector General’’, $2,000,000. 
10 
(17) ‘‘National Science Foundation—Office of 
11 
Inspector General’’, $2,000,000. 
12 
(18) ‘‘Small Business Administration—Office of 
13 
Inspector General’’, $10,000,000. 
14 
(19) ‘‘Social Security Administration—Office of 
15 
Inspector General’’, $2,000,000. 
16 
(20) ‘‘Corporation for National and Community 
17 
Service—Office of Inspector General’’, $1,000,000. 
18 
SEC. 1108. APPROPRIATION FOR GOVERNMENT ACCOUNT19 
ABILITY OFFICE. 
20 
There is hereby appropriated as an additional amount 
21 
for ‘‘Government Accountability Office—Salaries and Ex22 
penses’’ $25,000,000, for oversight activities relating to 
23 
this Act. 

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1 
SEC. 1109. PROHIBITED USES. 
2 


None of the funds appropriated or otherwise made 
3 
available in this Act may be used for any casino or other 
4 
gambling establishment, aquarium, zoo, golf course, or 
5 
swimming pool. 
6 
SEC. 1110. USE OF AMERICAN IRON AND STEEL. 
7 
(a) IN GENERAL.—None of the funds appropriated 
8 
or otherwise made available by this Act may be used for 
9 
a project for the construction, alteration, maintenance, or 
10 
repair of a public building or public work unless all of the 
11 
iron and steel used in the project is produced in the United 
12 
States. 
13 
(b) EXCEPTIONS.—Subsection (a) shall not apply in 
14 
any case in which the head of the Federal department or 
15 
agency involved finds that— 
16 
(1) applying subsection (a) would be incon17 
sistent with the public interest; 
18 
(2) iron and steel are not produced in the 
19 
United States in sufficient and reasonably available 
20 
quantities and of a satisfactory quality; or 
21 


(3) inclusion of iron and steel produced in the 

22 


United States will increase the cost of the overall 

23 


project by more than 25 percent. 

24 


(c) WRITTEN JUSTIFICATION FOR WAIVER.—If the 
25 
head of a Federal department or agency determines that 
26 
it is necessary to waive the application of subsection (a) 

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1 
based on a finding under subsection (b), the head of the 
2 
department or agency shall publish in the Federal Register 
3 
a detailed written justification as to why the provision is 
4 
being waived. 
5 


(d) DEFINITIONS.—In this section, the terms ‘‘public 
6 
building’’ and ‘‘public work’’ have the meanings given such 
7 
terms in section 1 of the Buy American Act (41 U.S.C. 
8 
10c) and include airports, bridges, canals, dams, dikes, 
9 
pipelines, railroads, multiline mass transit systems, roads, 
10 
tunnels, harbors, and piers. 
11 
SEC. 1111. WAGE RATE REQUIREMENTS. 
12 
Notwithstanding any other provision of law and in 
13 
a manner consistent with other provisions in this Act, all 
14 
laborers and mechanics employed by contractors and sub15 
contractors on projects funded directly by or assisted in 
16 
whole or in part by and through the Federal Government 
17 
pursuant to this Act shall be paid wages at rates not less 
18 
than those prevailing on projects of a character similar 
19 
in the locality as determined by the Secretary of Labor 
20 
in accordance with subchapter IV of chapter 31 of title 
21 
40, United States Code. With respect to the labor stand22 
ards specified in this section, the Secretary of Labor shall 
23 
have the authority and functions set forth in Reorganiza24 
tion Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. 
25 
App.) and section 3145 of title 40, United States Code. 

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1 
SEC. 1112. ADDITIONAL ASSURANCE OF APPROPRIATE USE 
2 


OF FUNDS. 

3 


None of the funds provided by this Act may be made 
4 
available to the State of Illinois, or any agency of the 
5 
State, unless (1) the use of such funds by the State is 
6 
approved in legislation enacted by the State after the date 
7 
of the enactment of this Act, or (2) Rod R. Blagojevich 
8 
no longer holds the office of Governor of the State of Illi9 
nois. The preceding sentence shall not apply to any funds 
10 
provided directly to a unit of local government (1) by a 
11 
Federal department or agency, or (2) by an established 
12 
formula from the State. 
13 
SEC. 1113. PERSISTENT POVERTY COUNTIES. 
14 
(a) ALLOCATION REQUIREMENT.—Of the amount ap15 
propriated in this Act for ‘‘Department of Agriculture— 
16 
Rural Development Programs—Rural Community Ad17 
vancement Program’’, at least 10 percent shall be allo18 
cated for assistance in persistent poverty counties. 
19 
(b) DEFINITION.—For purposes of this section, the 
20 
term ‘‘persistent poverty counties’’ means any county that 
21 
has had 20 percent or more of its population living in pov22 
erty over the past 30 years, as measured by the 1980, 
23 
1990, and 2000 decennial censuses. 

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1 
SEC. 1114. REQUIRED PARTICIPATION IN E-VERIFY PRO2 


GRAM. 

3 


None of the funds made available in this Act may 
4 
be used to enter into a contract with an entity that does 
5 
not participate in the E-verify program described in sec6 
tion 401(b) of the Illegal Immigration Reform and Immi7 
grant Responsibility Act of 1996 (8 U.S.C. 1324a note). 
8 
Subtitle B—Accountability in 
9 
Recovery Act Spending 
10 
PART 1—TRANSPARENCY AND OVERSIGHT 
11 
REQUIREMENTS 
12 
SEC. 1201. TRANSPARENCY REQUIREMENTS. 
13 
(a) REQUIREMENTS FOR FEDERAL AGENCIES.— 
14 
Each Federal agency shall publish on the website Recov15 
ery.gov (as established under section 1226 of this sub16 
title)— 
17 
(1) a plan for using funds made available in 
18 
this Act to the agency; and 
19 
(2) all announcements for grant competitions, 
20 
allocations of formula grants, and awards of com21 


petitive grants using those funds. 

22 


(b) REQUIREMENTS FOR FEDERAL, STATE, AND 
23 
LOCAL GOVERNMENT AGENCIES.— 
24 


(1) INFRASTRUCTURE INVESTMENT FUND


25 


ING.—With respect to funds made available under 

26 


this Act for infrastructure investments to Federal, 

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1 


State, or local government agencies, the following re


2 


quirements apply: 

3 


(A) Each such agency shall notify the pub


4 


lic of funds obligated to particular infrastruc


5 


ture investments by posting the notification on 
6 
the website Recovery.gov. 
7 
(B) The notification required by subpara8 
graph (A) shall include the following: 
9 
(i) A description of the infrastructure 
10 
investment funded. 
11 
(ii) The purpose of the infrastructure 
12 
investment. 
13 
(iii) The total cost of the infrastruc14 
ture investment. 
15 
(iv) The rationale of the agency for 
16 
funding the infrastructure investment with 
17 
funds made available under this Act. 
18 
(v) The name of the person to contact 
19 
at the agency if there are concerns with 
20 
the infrastructure investment and, with re21 


spect to Federal agencies, an email address 

22 


for the Federal official in the agency whom 

23 


the public can contact. 

24 


(vi) In the case of State or local agen


25 


cies, a certification from the Governor, 

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1 


mayor, or other chief executive, as appro


2 


priate, that the infrastructure investment 

3 


has received the full review and vetting re


4 


quired by law and that the chief executive 

5 


accepts responsibility that the infrastruc6 
ture investment is an appropriate use of 
7 
taxpayer dollars. A State or local agency 
8 
may not receive infrastructure investment 
9 
funding from funds made available in this 
10 
Act unless this certification is made. 
11 
(2) OPERATIONAL FUNDING.—With respect to 
12 
funds made available under this Act in the form of 
13 
grants for operational purposes to State or local gov14 
ernment agencies or other organizations, the agency 
15 
or organization shall publish on the website Recov16 
ery.gov a description of the intended use of the 
17 
funds, including the number of jobs sustained or cre18 
ated. 
19 
(c) AVAILABILITY ON INTERNET OF CONTRACTS AND 
20 
GRANTS.—Each contract awarded or grant issued using 
21 
funds made available in this Act shall be posted on the 
22 
Internet and linked to the website Recovery.gov. Propri23 
etary data that is required to be kept confidential under 
24 
applicable Federal or State law or regulation shall be re25 
dacted before posting. 

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1 
SEC. 1202. INSPECTOR GENERAL REVIEWS. 
2 


(a) REVIEWS.—Any inspector general of a Federal 
3 
department or executive agency shall review, as appro4 
priate, any concerns raised by the public about specific 
5 
investments using funds made available in this Act. Any 
6 
findings of an inspector general resulting from such a re7 
view shall be relayed immediately to the head of each de8 
partment and agency. In addition, the findings of such re9 
views, along with any audits conducted by any inspector 
10 
general of funds made available in this Act, shall be posted 
11 
on the Internet and linked to the website Recovery.gov. 
12 
(b) EXAMINATION OF RECORDS.—The Inspector 
13 
General of the agency concerned may examine any records 
14 
related to obligations of funds made available in this Act. 
15 
SEC. 1203. GOVERNMENT ACCOUNTABILITY OFFICE RE16 
VIEWS AND REPORTS. 
17 
(a) REVIEWS AND REPORTS.—The Comptroller Gen18 
eral of the United States shall conduct bimonthly reviews 
19 
and prepare reports on such reviews on the use by selected 
20 
States and localities of funds made available in this Act. 
21 
Such reports, along with any audits conducted by the 
22 
Comptroller General of such funds, shall be posted on the 
23 
Internet and linked to the website Recovery.gov. 
24 
(b) EXAMINATION OF RECORDS.—The Comptroller 
25 
General may examine any records related to obligations 
26 
of funds made available in this Act. 

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1 
SEC. 1204. COUNCIL OF ECONOMIC ADVISERS REPORTS. 
2 


The Chairman of the Council of Economic Advisers, 
3 
in consultation with the Director of the Office of Manage4 
ment and Budget and the Secretary of the Treasury, shall 
5 
submit quarterly reports to Congress detailing the esti6 
mated impact of programs under this Act on employment, 
7 
economic growth, and other key economic indicators. 
8 
SEC. 1205. SPECIAL CONTRACTING PROVISIONS. 
9 
The Federal Acquisition Regulation shall apply to 
10 
contracts awarded with funds made available in this Act. 
11 
To the maximum extent possible, such contracts shall be 
12 
awarded as fixed-price contracts through the use of com13 
petitive procedures. Existing contracts so awarded may be 
14 
utilized in order to obligate such funds expeditiously. Any 
15 
contract awarded with such funds that is not fixed-price 
16 
and not awarded using competitive procedures shall be 
17 
posted in a special section of the website Recovery.gov. 
18 
PART 2—ACCOUNTABILITY AND TRANSPARENCY 
19 
BOARD 
20 
SEC. 1221. ESTABLISHMENT OF THE ACCOUNTABILITY AND 
21 


TRANSPARENCY BOARD. 

22 


There is established a board to be known as the ‘‘Re23 
covery Act Accountability and Transparency Board’’ 
24 
(hereafter in this subtitle referred to as the ‘‘Board’’) to 
25 
coordinate and conduct oversight of Federal spending 
26 
under this Act to prevent waste, fraud, and abuse. 

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1 
SEC. 1222. COMPOSITION OF BOARD. 
2 


(a) MEMBERSHIP.—The Board shall be composed of 
3 
seven members as follows: 
4 


(1) The Chief Performance Officer of the Presi


5 


dent, who shall chair the Board. 
6 
(2) Six members designated by the President 
7 
from the inspectors general and deputy secretaries 
8 
of the Departments of Education, Energy, Health 
9 
and Human Services, Transportation, and other 
10 
Federal departments and agencies to which funds 
11 
are made available in this Act. 
12 
(b) TERMS.—Each member of the Board shall serve 
13 
for a term to be determined by the President. 
14 
SEC. 1223. FUNCTIONS OF THE BOARD. 
15 
(a) OVERSIGHT.—The Board shall coordinate and 
16 
conduct oversight of spending under this Act to prevent 
17 
waste, fraud, and abuse. In addition to responsibilities set 
18 
forth in this subtitle, the responsibilities of the Board shall 
19 
include the following: 
20 
(1) Ensuring that the reporting of information 
21 


regarding contract and grants under this Act meets 

22 


applicable standards and specifies the purpose of the 

23 


contract or grant and measures of performance. 

24 


(2) Verifying that competition requirements ap


25 


plicable to contracts and grants under this Act and 

26 


other applicable Federal law have been satisfied. 

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21 

1 


(3) Investigating spending under this Act to de


2 


termine whether wasteful spending, poor contract or 

3 


grant management, or other abuses are occurring. 

4 


(4) Reviewing whether there are sufficient 

5 


qualified acquisition and grant personnel overseeing 
6 
spending under this Act. 
7 
(5) Reviewing whether acquisition and grant 
8 
personnel receive adequate training and whether 
9 
there are appropriate mechanisms for interagency 
10 
collaboration. 
11 
(b) REPORTS.— 
12 
(1) FLASH AND OTHER REPORTS.—The Board 
13 
shall submit to Congress reports, to be known as 
14 
‘‘flash reports’’, on potential management and fund15 
ing problems that require immediate attention. The 
16 
Board also shall submit to Congress such other re17 
ports as the Board considers appropriate on the use 
18 
and benefits of funds made available in this Act. 
19 
(2) QUARTERLY.—The Board shall submit to 
20 
the President and Congress quarterly reports sum21 


marizing its findings and the findings of agency in


22 


spectors general and may issue additional reports as 

23 


appropriate. 

24 


(3) ANNUALLY.—On an annual basis, the 

25 


Board shall prepare a consolidated report on the use 

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22 

1 


of funds under this Act. All reports shall be publicly 

2 


available and shall be posted on the Internet website 

3 


Recovery.gov, except that portions of reports may be 

4 


redacted if the portions would disclose information 

5 


that is protected from public disclosure under sec6 
tion 552 of title 5, United States Code (popularly 
7 
known as the Freedom of Information Act). 
8 
(c) RECOMMENDATIONS TO AGENCIES.—The Board 
9 
shall make recommendations to Federal agencies on meas10 
ures to prevent waste, fraud, and abuse. A Federal agency 
11 
shall, within 30 days after receipt of any such rec12 
ommendation, submit to the Board, the President, and the 
13 
congressional committees of jurisdiction a report on 
14 
whether the agency agrees or disagrees with the rec15 
ommendations and what steps, if any, the agency plans 
16 
to take to implement the recommendations. 
17 
SEC. 1224. POWERS OF THE BOARD. 
18 
(a) COORDINATION OF AUDITS AND INVESTIGATIONS 
19 
BY AGENCY INSPECTORS GENERAL.—The Board shall co20 
ordinate the audits and investigations of spending under 
21 
this Act by agency inspectors general. 
22 


(b) CONDUCT OF REVIEWS BY BOARD.—The Board 
23 
may conduct reviews of spending under this Act and may 
24 
collaborate on such reviews with any inspector general. 

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23 

1 


(c) MEETINGS.—The Board may, for the purpose of 
2 
carrying out its duties under this Act, hold public meet3 
ings, sit and act at times and places, and receive informa4 
tion as the Board considers appropriate. The Board shall 
5 
meet at least once a month. 
6 
(d) OBTAINING OFFICIAL DATA.—The Board may 
7 
secure directly from any department or agency of the 
8 
United States information necessary to enable it to carry 
9 
out its duties under this Act. Upon request of the Chair10 
man of the Board, the head of that department or agency 
11 
shall furnish that information to the Board. 
12 
(e) CONTRACTS.—The Board may enter into con13 
tracts to enable the Board to discharge its duties under 
14 
this Act. 
15 
SEC. 1225. STAFFING. 
16 
(a) EXECUTIVE DIRECTOR.—The Chairman of the 
17 
Board may appoint and fix the compensation of an execu18 
tive director and other personnel as may be required to 
19 
carry out the functions of the Board. The Director shall 
20 
be paid at the rate of basic pay for level IV of the Execu21 
tive Schedule. 
22 


(b) STAFF OF FEDERAL AGENCIES.—Upon request 
23 
of the Board, the head of any Federal department or agen24 
cy may detail any Federal official or employee, including 
25 
officials and employees of offices of inspector general, to 

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24 
1 
the Board without reimbursement from the Board, and 
2 
such detailed staff shall retain the rights, status, and 
3 
privileges of his or her regular employment without inter4 
ruption. 
5 


(c) OFFICE SPACE.—Office space shall be provided 
6 
to the Board within the Executive Office of the President. 
7 
SEC. 1226. RECOVERY.GOV. 
8 
(a) REQUIREMENT TO ESTABLISH WEBSITE.—The 
9 
Board shall establish and maintain a website on the Inter10 
net to be named Recovery.gov, to foster greater account11 
ability and transparency in the use of funds made avail12 
able in this Act. 
13 
(b) PURPOSE.—Recovery.gov shall be a portal or 
14 
gateway to key information related to this Act and provide 
15 
a window to other Government websites with related infor16 
mation. 
17 
(c) MATTERS COVERED.—In establishing the website 
18 
Recovery.gov, the Board shall ensure the following: 
19 
(1) The website shall provide materials explain20 
ing what this Act means for citizens. The materials 
21 


shall be easy to understand and regularly updated. 

22 


(2) The website shall provide accountability in


23 


formation, including a database of findings from au


24 


dits, inspectors general, and the Government Ac


25 


countability Office. 

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25 

1 


(3) The website shall provide data on relevant 

2 


economic, financial, grant, and contract information 

3 


in user-friendly visual presentations to enhance pub


4 


lic awareness of the use funds made available in this 
5 
Act. 
6 
(4) The website shall provide detailed data on 
7 
contracts awarded by the Government for purposes 
8 
of carrying out this Act, including information about 
9 
the competitiveness of the contracting process, noti10 
fication of solicitations for contracts to be awarded, 
11 
and information about the process that was used for 
12 
the award of contracts. 
13 
(5) The website shall include printable reports 
14 
on funds made available in this Act obligated by 
15 
month to each State and congressional district. 
16 
(6) The website shall provide a means for the 
17 
public to give feedback on the performance of con18 
tracts awarded for purposes of carrying out this Act. 
19 
(7) The website shall be enhanced and updated 
20 
as necessary to carry out the purposes of this sub21 
title. 
22 
SEC. 1227. PRESERVATION OF THE INDEPENDENCE OF IN23 


SPECTORS GENERAL. 

24 


Inspectors general shall retain independent authority 
25 
to determine whether to conduct an audit or investigation 

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26 
1 
of spending under this Act. If the Board requests that 
2 
an inspector general conduct or refrain from conducting 
3 
an audit or investigation and the inspector general rejects 
4 
the request in whole or in part, the inspector general shall, 
5 
within 30 days after receipt of the request, submit to the 
6 
Board, the agency head, and the congressional committees 
7 
of jurisdiction a report explaining why the inspector gen8 
eral has rejected the request in whole or in part. 
9 
SEC. 1228. COORDINATION WITH THE COMPTROLLER GEN10 
ERAL AND STATE AUDITORS. 
11 
The Board shall coordinate its oversight activities 
12 
with the Comptroller General of the United States and 
13 
State auditor generals. 
14 
SEC. 1229. INDEPENDENT ADVISORY PANEL. 
15 
(a) ESTABLISHMENT.—There is established a panel 
16 
to be known as the ‘‘Independent Advisory Panel’’ to ad17 
vise the Board. 
18 
(b) MEMBERSHIP.—The Panel shall be composed of 
19 
five members appointed by the President from among indi20 
viduals with expertise in economics, public finance, con21 
tracting, accounting, or other relevant fields. 
22 


(c) FUNCTIONS.—The Panel shall make rec23 
ommendations to the Board on actions the Board could 
24 
take to prevent waste, fraud, and abuse in Federal spend25 
ing under this Act. 

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27 

1 


(d) TRAVEL EXPENSES.—Each member of the Panel 
2 
shall receive travel expenses, including per diem in lieu 
3 
of subsistence, in accordance with applicable provisions 
4 
under subchapter I of chapter 57 of title 5, United States 
5 
Code. 
6 
SEC. 1230. FUNDING. 
7 
There is hereby appropriated to the Board 
8 
$14,000,000 to carry out this subtitle. 
9 
SEC. 1231. BOARD TERMINATION. 
10 
The Board shall terminate 12 months after 90 per11 
cent of the funds made available under this Act have been 
12 
expended, as determined by the Director of the Office of 
13 
Management and Budget. 
14 
PART 3—ADDITIONAL ACCOUNTABILITY AND 
15 
TRANSPARENCY PROVISIONS 
16 
SEC. 1241. LIMITATION ON THE LENGTH OF CERTAIN NON17 
COMPETITIVE CONTRACTS. 
18 
No contract entered into using funds made available 
19 
in this Act pursuant to the authority provided in section 
20 
303(c)(2) of the Federal Property and Administrative 
21 
Services Act of 1949 (41 U.S.C. 253(c)(2)) that is for an 
22 
amount greater than the simplified acquisition threshold 
23 
(as defined in section 4(11) of the Office of Federal Pro24 
curement Policy Act (41 U.S.C. (4)(11))— 
25 


(1) may exceed the time necessary— 

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28 

1 


(A) to meet the unusual and compelling re


2 


quirements of the work to be performed under 

3 


the contract; and 

4 


(B) for the executive agency to enter into 

5 


another contract for the required goods or serv6 
ices through the use of competitive procedures; 
7 
and 
8 
(2) may exceed one year unless the head of the 
9 
executive agency entering into such contract deter10 
mines that exceptional circumstances apply. 
11 
SEC. 1242. ACCESS OF GOVERNMENT ACCOUNTABILITY OF12 
FICE AND OFFICES OF INSPECTOR GENERAL 
13 
TO CERTAIN EMPLOYEES. 
14 
(a) ACCESS.—Each contract awarded using funds 
15 
made available in this Act shall provide that the Comp16 
troller General and his representatives, and any represent17 
atives of an appropriate inspector general appointed under 
18 
section 3 or 8G of the Inspector General Act of 1978 (5 
19 
U.S.C. App.), are authorized— 
20 
(1) to examine any records of the contractor or 
21 


any of its subcontractors, or any State or local agen


22 


cy administering such contract, that directly pertain 

23 


to, and involve transactions relating to, the contract 

24 


or subcontract; and 

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29 

1 


(2) to interview any current employee regarding 

2 


such transactions. 

3 


(b) RELATIONSHIP TO EXISTING AUTHORITY.— 
4 
Nothing in this section shall be interpreted to limit or re5 
strict in any way any existing authority of the Comptroller 
6 
General or an Inspector General. 
7 
SEC. 1243. PROTECTING STATE AND LOCAL GOVERNMENT 
8 
AND CONTRACTOR WHISTLEBLOWERS. 
9 
(a) PROHIBITION OF REPRISALS.—An employee of 
10 
any non-Federal employer receiving funds made available 
11 
in this Act may not be discharged, demoted, or otherwise 
12 
discriminated against as a reprisal for disclosing to the 
13 
Board, an inspector general, the Comptroller General, a 
14 
member of Congress, or a Federal agency head, or their 
15 
representatives, information that the employee reasonably 
16 
believes is evidence of— 
17 
(1) gross mismanagement of an executive agen18 
cy contract or grant; 
19 
(2) a gross waste of executive agency funds; 
20 
(3) a substantial and specific danger to public 
21 


health or safety; or 

22 


(4) a violation of law related to an executive 

23 


agency contract (including the competition for or ne


24 


gotiation of a contract) or grant awarded or issued 

25 


to carry out this Act. 

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30 

1 


(b) INVESTIGATION OF COMPLAINTS.— 

2 


(1) A person who believes that the person has 

3 


been subjected to a reprisal prohibited by subsection 

4 


(a) may submit a complaint to the inspector general 

5 


of the executive agency that awarded the contract or 
6 
issued the grant. Unless the inspector general deter7 
mines that the complaint is frivolous, the inspector 
8 
general shall investigate the complaint and, upon 
9 
completion of such investigation, submit a report of 
10 
the findings of the investigation to the person, the 
11 
person’s employer, the head of the Federal agency 
12 
that awarded the contract or issued the grant, and 
13 
the Board. 
14 
(2)(A) Except as provided under subparagraph 
15 
(B), the inspector general shall make a determina16 
tion that a complaint is frivolous or submit a report 
17 
under paragraph (1) within 180 days after receiving 
18 
the complaint. 
19 
(B) If the inspector general is unable to com20 
plete an investigation in time to submit a report 
21 


within the 180-day period specified in subparagraph 

22 


(A) and the person submitting the complaint agrees 

23 


to an extension of time, the inspector general shall 

24 


submit a report under paragraph (1) within such ad


25 


ditional period of time as shall be agreed upon be


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31 

1 


tween the inspector general and the person submit


2 


ting the complaint. 

3 


(c) REMEDY AND ENFORCEMENT AUTHORITY.— 

4 


(1) Not later than 30 days after receiving an 

5 


inspector general report pursuant to subsection (b), 
6 
the head of the agency concerned shall determine 
7 
whether there is sufficient basis to conclude that the 
8 
non-Federal employer has subjected the complainant 
9 
to a reprisal prohibited by subsection (a) and shall 
10 
either issue an order denying relief or shall take one 
11 
or more of the following actions: 
12 
(A) Order the employer to take affirmative 
13 
action to abate the reprisal. 
14 
(B) Order the employer to reinstate the 
15 
person to the position that the person held be16 
fore the reprisal, together with the compensa17 
tion (including back pay), employment benefits, 
18 
and other terms and conditions of employment 
19 
that would apply to the person in that position 
20 
if the reprisal had not been taken. 
21 


(C) Order the employer to pay the com


22 


plainant an amount equal to the aggregate 

23 


amount of all costs and expenses (including at


24 


torneys’ fees and expert witnesses’ fees) that 

25 


were reasonably incurred by the complainant 

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32 

1 


for, or in connection with, bringing the com


2 


plaint regarding the reprisal, as determined by 

3 


the head of the agency. 

4 


(2) If the head of an executive agency issues an 

5 


order denying relief under paragraph (1) or has not 
6 
issued an order within 210 days after the submission 
7 
of a complaint under subsection (b), or in the case 
8 
of an extension of time under paragraph (b)(2)(B), 
9 
not later than 30 days after the expiration of the ex10 
tension of time, and there is no showing that such 
11 
delay is due to the bad faith of the complainant, the 
12 
complainant shall be deemed to have exhausted all 
13 
administrative remedies with respect to the com14 
plaint, and the complainant may bring a de novo ac15 
tion at law or equity against the employer to seek 
16 
compensatory damages and other relief available 
17 
under this section in the appropriate district court 
18 
of the United States, which shall have jurisdiction 
19 
over such an action without regard to the amount in 
20 
controversy. Such an action shall, at the request of 
21 


either party to the action, be tried by the court with 
22 
a jury. 
23 


(3) An inspector general determination and an 

24 


agency head order denying relief under paragraph 

25 


(2) shall be admissible in evidence in any de novo 

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33 

1 


action at law or equity brought pursuant to this sub


2 


section. 

3 


(4) Whenever a person fails to comply with an 

4 


order issued under paragraph (1), the head of the 

5 


agency shall file an action for enforcement of such 
6 
order in the United States district court for a dis7 
trict in which the reprisal was found to have oc8 
curred. In any action brought under this paragraph, 
9 
the court may grant appropriate relief, including in10 
junctive relief and compensatory and exemplary 
11 
damages. 
12 
(5) Any person adversely affected or aggrieved 
13 
by an order issued under paragraph (1) may obtain 
14 
review of the order’s conformance with this sub15 
section, and any regulations issued to carry out this 
16 
section, in the United States court of appeals for a 
17 
circuit in which the reprisal is alleged in the order 
18 
to have occurred. No petition seeking such review 
19 
may be filed more than 60 days after issuance of the 
20 
order by the head of the agency. Review shall con21 


form to chapter 7 of title 5. 

22 


(d) CONSTRUCTION.—Nothing in this section may be 
23 
construed to authorize the discharge of, demotion of, or 
24 
discrimination against an employee for a disclosure other 
25 
than a disclosure protected by subsection (a) or to modify 

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34 
1 
or derogate from a right or remedy otherwise available to 
2 
the employee. 
3 


(e) DEFINITIONS.— 

4 


(1) NON-FEDERAL EMPLOYER RECEIVING 

5 


FUNDS UNDER THIS ACT.—The term ‘‘non-Federal 
6 
employer receiving funds made available in this Act’’ 
7 
means— 
8 
(A) with respect to a Federal contract 
9 
awarded or Federal grant issued to carry out 
10 
this Act, the contractor or grantee, as the case 
11 
may be, if the contractor or grantee is an em12 
ployer; or 
13 
(B) a State or local government, if the 
14 
State or local government has received funds 
15 
made available in this Act. 
16 
(2) EXECUTIVE AGENCY.—The term ‘‘executive 
17 
agency’’ has the meaning given that term in section 
18 
4 of the Office of Federal Procurement Policy Act 
19 
(41 U.S.C. 403). 
20 
(3) STATE OR LOCAL GOVERNMENT.—The term 
21 


‘‘State or local government’’ means— 

22 


(A) the government of each of the several 

23 


States, the District of Columbia, the Common


24 


wealth of Puerto Rico, Guam, American Samoa, 

25 


the Virgin Islands, the Northern Mariana Is-

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35 

1 


lands, or any other territory or possession of 

2 


the United States; or 

3 


(B) the government of any political sub


4 


division of a government listed in subparagraph 
5 
(A). 
6 
TITLE II—AGRICULTURE, NUTRI7 
TION, AND RURAL DEVELOP8 
MENT 
9 
DEPARTMENT OF AGRICULTURE 
10 
AGRICULTURE BUILDINGS AND FACILITIES AND RENTAL 
11 
PAYMENTS 
12 
For an additional amount for ‘‘Agriculture Buildings 
13 
and Facilities and Rental Payments’’, $44,000,000, for 
14 
necessary construction, repair, and improvement activities: 
15 
Provided, That section 1106 of this Act shall not apply 
16 
to this appropriation. 
17 
AGRICULTURAL RESEARCH SERVICE 
18 
BUILDINGS AND FACILITIES 
19 
For an additional amount for ‘‘Buildings and Facili20 
ties’’, $209,000,000, for work on deferred maintenance at 
21 
Agricultural Research Service facilities: Provided, That 
22 
priority in the use of such funds shall be given to critical 
23 
deferred maintenance, to projects that can be completed, 
24 
and to activities that can commence promptly following 
25 
enactment of this Act. 

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36 

1 


FARM SERVICE AGENCY 

2 


SALARIES AND EXPENSES 

3 


For an additional amount for ‘‘Salaries and Ex4 
penses,’’ $245,000,000, for the purpose of maintaining 
5 
and modernizing the information technology system: Pro6 
vided, That section 1106 of this Act shall not apply to 
7 
this appropriation. 
8 
NATURAL RESOURCES CONSERVATION SERVICE 
9 
WATERSHED AND FLOOD PREVENTION OPERATIONS 
10 
For an additional amount for ‘‘Watershed and Flood 
11 
Prevention Operations’’, $350,000,000, of which 
12 
$175,000,000 is for necessary expenses to purchase and 
13 
restore floodplain easements as authorized by section 403 
14 
of the Agricultural Credit Act of 1978 (16 U.S.C. 2203) 
15 
(except that no more than $50,000,000 of the amount pro16 
vided for the purchase of floodplain easements may be ob17 
ligated for projects in any one State): Provided, That sec18 
tion 1106 of this Act shall not apply to this appropriation: 
19 
Provided further, That priority in the use of such funds 
20 
shall be given to projects that can be fully funded and 
21 
completed with the funds appropriated in this Act, and 
22 
to activities that can commence promptly following enact23 
ment of this Act. 

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37 

1 


WATERSHED REHABILITATION PROGRAM 

2 


For an additional amount for ‘‘Watershed Rehabilita3 
tion Program’’, $50,000,000, for necessary expenses to 
4 
carry out rehabilitation of structural measures: Provided, 
5 
That section 1106 of this Act shall not apply to this ap6 
propriation: Provided further, That priority in the use of 
7 
such funds shall be given to projects that can be fully 
8 
funded and completed with the funds appropriated in this 
9 
Act, and to activities that can commence promptly fol10 
lowing enactment of this Act. 
11 
RURAL DEVELOPMENT PROGRAMS 
12 
RURAL COMMUNITY ADVANCEMENT PROGRAM 
13 
(INCLUDING TRANSFERS OF FUNDS) 
14 
For an additional amount for gross obligations for 
15 
the principal amount of direct and guaranteed loans as 
16 
authorized by sections 306 and 310B and described in sec17 
tions 381E(d)(1), 381E(d)(2), and 381E(d)(3) of the 
18 
Consolidated Farm and Rural Development Act, to be 
19 
available from the rural community advancement pro20 
gram, as follows: $5,838,000,000, of which 
21 
$1,102,000,000 is for rural community facilities direct 
22 
loans, of which $2,000,000,000 is for business and indus23 
try guaranteed loans, and of which $2,736,000,000 is for 
24 
rural water and waste disposal direct loans. 

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38 


1 


For an additional amount for the cost of direct loans, 
2 
loan guarantees, and grants, including the cost of modi3 
fying loans, as defined in section 502 of the Congressional 
4 
Budget Act of 1974, as follows: $1,800,000,000, of which 
5 
$63,000,000 is for rural community facilities direct loans, 
6 
of which $137,000,000 is for rural community facilities 
7 
grants authorized under section 306(a) of the Consoli8 
dated Farm and Rural Development Act, of which 
9 
$87,000,000 is for business and industry guaranteed 
10 
loans, of which $13,000,000 is for rural business enter11 
prise grants authorized under section 310B of the Consoli12 
dated Farm and Rural Development Act, of which 
13 
$400,000,000 is for rural water and waste disposal direct 
14 
loans, and of which $1,100,000,000 is for rural water and 
15 
waste disposal grants authorized under section 306(a): 
16 
Provided, That the amounts appropriated under this head17 
ing shall be transferred to, and merged with, the appro18 
priation for ‘‘Rural Housing Service, Rural Community 
19 
Facilities Program Account’’, the appropriation for 
20 
‘‘Rural Business-Cooperative Service, Rural Business Pro21 
gram Account’’, and the appropriation for ‘‘Rural Utilities 
22 
Service, Rural Water and Waste Disposal Program Ac23 
count’’: Provided further, That priority for awarding such 
24 
funds shall be given to project applications that dem25 
onstrate that, if the application is approved, all project 

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39 


1 
elements will be fully funded: Provided further, That pri2 
ority for awarding such funds shall be given to project ap3 
plications for activities that can be completed if the re4 
quested funds are provided: Provided further, That priority 
5 
for awarding such funds shall be given to activities that 
6 
can commence promptly following enactment of this Act. 
7 
In addition to other available funds, the Secretary of 
8 
Agriculture may use not more than 3 percent of the funds 
9 
made available under this account for administrative costs 
10 
to carry out loans, loan guarantees, and grants funded 
11 
under this account, which shall be transferred and merged 
12 
with the appropriation for ‘‘Rural Development, Salaries 
13 
and Expenses’’ and shall remain available until September 
14 
30, 2012: Provided, That the authority provided in this 
15 
paragraph shall apply to appropriations under this head16 
ing in lieu of the provisions of section 1106 of this Act. 
17 
Funds appropriated by this Act to the Rural Commu18 
nity Advancement Program for rural community facilities, 
19 
rural business, and rural water and waste disposal direct 
20 
loans, loan guarantees and grants may be transferred 
21 
among these programs: Provided, That the Committees on 
22 
Appropriations of the House of Representatives and the 
23 
Senate shall be notified at least 15 days in advance of 
24 
any transfer. 

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40 

1 


RURAL HOUSING SERVICE 

2 


RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT 

3 


(INCLUDING TRANSFERS OF FUNDS) 

4 


For an additional amount of gross obligations for the 
5 
principal amount of direct and guaranteed loans as au6 
thorized by title V of the Housing Act of 1949, to be avail7 
able from funds in the rural housing insurance fund, as 
8 
follows: $22,129,000,000 for loans to section 502 bor9 
rowers, of which $4,018,000,000 shall be for direct loans, 
10 
and of which $18,111,000,000 shall be for unsubsidized 
11 
guaranteed loans. 
12 
For an additional amount for the cost of direct and 
13 
guaranteed loans, including the cost of modifying loans, 
14 
as defined in section 502 of the Congressional Budget Act 
15 
of 1974, as follows: section 502 loans, $500,000,000, of 
16 
which $270,000,000 shall be for direct loans, and of which 
17 
$230,000,000 shall be for unsubsidized guaranteed loans. 
18 
In addition to other available funds, the Secretary of 
19 
Agriculture may use not more than 3 percent of the funds 
20 
made available under this account for administrative costs 
21 
to carry out loans and loan guarantees funded under this 
22 
account, of which $1,750,000 will be committed to agency 
23 
projects associated with maintaining the compliance, safe24 
ty, and soundness of the portfolio of loans guaranteed 
25 
through the section 502 guaranteed loan program: Pro-

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41 
1 
vided, These funds shall be transferred and merged with 
2 
the appropriation for ‘‘Rural Development, Salaries and 
3 
Expenses’’: Provided further, That the authority provided 
4 
in this paragraph shall apply to appropriations under this 
5 
heading in lieu of the provisions of section 1106 of this 
6 
Act. 
7 
Funds appropriated by this Act to the Rural Housing 
8 
Insurance Fund Program account for section 502 direct 
9 
loans and unsubsidized guaranteed loans may be trans10 
ferred between these programs: Provided, That the Com11 
mittees on Appropriations of the House of Representatives 
12 
and the Senate shall be notified at least 15 days in ad13 
vance of any transfer. 
14 
RURAL UTILITIES SERVICE 
15 
DISTANCE LEARNING, TELEMEDICINE, AND BROADBAND 
16 
PROGRAM 
17 
(INCLUDING TRANSFERS OF FUNDS) 
18 
For an additional amount for the cost of broadband 
19 
loans and loan guarantees, as authorized by the Rural 
20 
Electrification Act of 1936 (7 U.S.C. 901 et seq.) and for 
21 
grants, $2,825,000,000: Provided, That the cost of direct 
22 
and guaranteed loans shall be as defined in section 502 
23 
of the Congressional Budget Act of 1974: Provided fur24 
ther, That, notwithstanding title VI of the Rural Elec25 
trification Act of 1936, this amount is available for grants, 

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42 


1 
loans and loan guarantees for open access broadband in2 
frastructure in any area of the United States: Provided 
3 
further, That at least 75 percent of the area to be served 
4 
by a project receiving funds from such grants, loans or 
5 
loan guarantees shall be in a rural area without sufficient 
6 
access to high speed broadband service to facilitate rural 
7 
economic development, as determined by the Secretary of 
8 
Agriculture: Provided further, That priority for awarding 
9 
funds made available under this paragraph shall be given 
10 
to projects that provide service to the most rural residents 
11 
that do not have access to broadband service: Provided fur12 
ther, That priority shall be given for project applications 
13 
from borrowers or former borrowers under title II of the 
14 
Rural Electrification Act of 1936 and for project applica15 
tions that include such borrowers or former borrowers: 
16 
Provided further, That notwithstanding section 1103 of 
17 
this Act, 50 percent of the grants, loans, and loan guaran18 
tees made available under this heading shall be awarded 
19 
not later than September 30, 2009: Provided further, That 
20 
priority for awarding such funds shall be given to project 
21 
applications that demonstrate that, if the application is 
22 
approved, all project elements will be fully funded: Pro23 
vided further, That priority for awarding such funds shall 
24 
be given to project applications for activities that can be 
25 
completed if the requested funds are provided: Provided 

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43 
1 
further, That priority for awarding such funds shall be 
2 
given to activities that can commence promptly following 
3 
enactment of this Act: Provided further, That no area of 
4 
a project funded with amounts made available under this 
5 
paragraph may receive funding to provide broadband serv6 
ice under the Broadband Deployment Grant Program: 
7 
Provided further, That the Secretary shall submit a report 
8 
on planned spending and actual obligations describing the 
9 
use of these funds not later than 90 days after the date 
10 
of enactment of this Act, and quarterly thereafter until 
11 
all funds are obligated, to the Committees on Appropria12 
tions of the House of Representatives and the Senate. 
13 
In addition to other available funds, the Secretary 
14 
may use not more than 3 percent of the funds made avail15 
able under this account for administrative costs to carry 
16 
out loans, loan guarantees, and grants funded under this 
17 
account, which shall be transferred and merged with the 
18 
appropriation for ‘‘Rural Development, Salaries and Ex19 
penses’’ and shall remain available until September 30, 
20 
2012: Provided, That the authority provided in this para21 
graph shall apply to appropriations under this heading in 
22 
lieu of the provisions of section 1106 of this Act. 

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44 

1 


FOOD AND NUTRITION SERVICE 

2 


SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR 

3 


WOMEN, INFANTS, AND CHILDREN (WIC) 

4 


For an additional amount for the special supple5 
mental nutrition program as authorized by section 17 of 
6 
the Child Nutrition Act of 1966 (42 U.S.C. 1786), 
7 
$100,000,000, for the purposes specified in section 
8 
17(h)(10)(B)(ii) for the Secretary of Agriculture to pro9 
vide assistance to State agencies to implement new man10 
agement information systems or improve existing manage11 
ment information systems for the program. 
12 
EMERGENCY FOOD ASSISTANCE PROGRAM 
13 
For an additional amount for the emergency food as14 
sistance program as authorized by section 27(a) of the 
15 
Food and Nutrition Act of 2008 (7 U.S.C. 2036(a)) and 
16 
section 204(a)(1) of the Emergency Food Assistance Act 
17 
of 1983 (7 U.S.C. 7508(a)(1)), $150,000,000, of which 
18 
$100,000,000 is for the purchase of commodities and of 
19 
which $50,000,000 is for costs associated with the dis20 
tribution of commodities. 
21 


GENERAL PROVISIONS, THIS TITLE 

22 
SEC. 2001. TEMPORARY INCREASE IN BENEFITS UNDER 
23 


THE SUPPLEMENTAL NUTRITION ASSIST


24 


ANCE PROGRAM. 

25 


(a) MAXIMUM BENEFIT INCREASE.— 

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45 


1 


(1) IN GENERAL.—Beginning the first month 

2 


that begins not less than 25 days after the date of 

3 


enactment of this Act, the value of benefits deter


4 


mined under section 8(a) of the Food and Nutrition 

5 


Act of 2008 and consolidated block grants for Puer6 
to Rico and American Samoa determined under sec7 
tion 19(a) of such Act shall be calculated using 
8 
113.6 percent of the June 2008 value of the thrifty 
9 
food plan as specified under section 3(o) of such 
10 
Act. 
11 
(2) TERMINATION.— 
12 
(A) The authority provided by this sub13 
section shall terminate after September 30, 
14 
2009. 
15 
(B) Notwithstanding subparagraph (A), 
16 
the Secretary of Agriculture may not reduce the 
17 
value of the maximum allotment below the level 
18 
in effect for fiscal year 2009 as a result of 
19 
paragraph (1). 
20 
(b) REQUIREMENTS FOR THE SECRETARY.—In car21 
rying out this section, the Secretary shall— 
22 


(1) consider the benefit increases described in 

23 


subsection (a) to be a ‘‘mass change’’; 

24 


(2) require a simple process for States to notify 

25 


households of the increase in benefits; 

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46 

1 


(3) consider section 16(c)(3)(A) of the Food 

2 


and Nutrition Act of 2008 (7 U.S.C. 2025(c)(3)(A)) 

3 


to apply to any errors in the implementation of this 

4 


section, without regard to the 120-day limit de


5 


scribed in that section; and 
6 
(4) have the authority to take such measures as 
7 
necessary to ensure the efficient administration of 
8 
the benefits provided in this section. 
9 
(c) ADMINISTRATIVE EXPENSES.— 
10 
(1) IN GENERAL.—For the costs of State ad11 
ministrative expenses associated with carrying out 
12 
this section, the Secretary shall make available 
13 
$150,000,000 in each of fiscal years 2009 and 2010, 
14 
to remain available through September 30, 2012, of 
15 
which $4,500,000 is for necessary expenses of the 
16 
Food and Nutrition Service for management and 
17 
oversight of the program and for monitoring the in18 
tegrity and evaluating the effects of the payments 
19 
made under this section. 
20 
(2) AVAILABILITY OF FUNDS.—Funds described 
21 


in paragraph (1) shall be made available as grants 

22 


to State agencies based on each State’s share of 

23 


households that participate in the Supplemental Nu


24 


trition Assistance Program as reported to the De


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47 

1 


partment of Agriculture for the 12-month period 

2 


ending with June, 2008. 

3 


(d) TREATMENT OF JOBLESS WORKERS.—Beginning 
4 
with the first month that begins not less than 25 days 
5 
after the date of enactment of this Act, and for each sub6 
sequent month through September 30, 2010, jobless 
7 
adults who comply with work registration and employment 
8 
and training requirements under section 6, section 20, or 
9 
section 26 of the Food and Nutrition Act of 2008 (7 
10 
U.S.C. 2015, 2029, or 2035) shall not be disqualified from 
11 
the Supplemental Nutrition Assistance Program because 
12 
of the provisions of section 6(o)(2) of such Act (7 U.S.C. 
13 
2015(o)(2)). Beginning on October 1, 2010, for the pur14 
poses of section 6(o), a State agency shall disregard any 
15 
period during which an individual received Supplemental 
16 
Nutrition Assistance Program benefits prior to October 1, 
17 
2010. 
18 
(e) FUNDING.—There is appropriated to the Sec19 
retary of Agriculture such sums as are necessary to carry 
20 
out this section, to remain available until expended. Sec21 
tion 1106 of this Act shall not apply to this appropriation. 

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48 

1 
SEC. 2002. AFTERSCHOOL FEEDING PROGRAM FOR AT-RISK 
2 


CHILDREN. 

3 


Section 17(r) of the Richard B. Russell National 
4 
School Lunch Act (42 U.S.C. 1766(r)) is amended by 
5 
striking paragraph (5). 
6 
TITLE III—COMMERCE, JUSTICE, 
7 
AND SCIENCE 
8 
Subtitle A—Commerce 
9 
DEPARTMENT OF COMMERCE 
10 
ECONOMIC DEVELOPMENT ADMINISTRATION 
11 
ECONOMIC DEVELOPMENT ASSISTANCE PROGRAMS 
12 
(INCLUDING TRANSFER OF FUNDS) 
13 
For an additional amount for ‘‘Economic Develop14 
ment Assistance Programs’’, $250,000,000: Provided, 
15 
That the amount set aside from this appropriation pursu16 
ant to section 1106 of this Act shall not exceed 2 percent 
17 
instead of the percentage specified in such section: Pro18 
vided further, That the amount set aside pursuant to the 
19 
previous proviso shall be transferred to and merged with 
20 
the appropriation for ‘‘Salaries and Expenses’’ for pur21 
poses of program administration and oversight: Provided 
22 
further, That up to $50,000,000 may be transferred to 
23 
federally authorized regional economic development com24 
missions. 

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49 

1 


BUREAU OF THE CENSUS 

2 


PERIODIC CENSUSES AND PROGRAMS 

3 


For an additional amount for ‘‘Periodic Censuses and 
4 
Programs’’, $1,000,000,000: Provided, That section 1106 
5 
of this Act shall not apply to funds provided under this 
6 
heading. 
7 
NATIONAL TELECOMMUNICATIONS AND INFORMATION 
8 
ADMINISTRATION 
9 
SALARIES AND EXPENSES 
10 
For an additional amount for ‘‘Salaries and Ex11 
penses’’, $350,000,000, to remain available until Sep12 
tember 30, 2011: Provided, That funds shall be available 
13 
to establish the State Broadband Data and Development 
14 
Grant Program, as authorized by Public Law 110–385, 
15 
for the development and implementation of statewide ini16 
tiatives to identify and track the availability and adoption 
17 
of broadband services within each State, and to develop 
18 
and maintain a nationwide broadband inventory map, as 
19 
authorized by section 6001 of division B of this Act. 
20 
WIRELESS AND BROADBAND DEPLOYMENT GRANT 
21 


PROGRAMS 

22 


(INCLUDING TRANSFER OF FUNDS) 

23 


For necessary expenses related to the Wireless and 
24 
Broadband Deployment Grant Programs established by 
25 
section 6002 of division B of this Act, $2,825,000,000, 

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50 
1 
of which $1,000,000,000 shall be for Wireless Deployment 
2 
Grants and $1,825,000,000 shall be for Broadband De3 
ployment Grants: Provided, That the National Tele4 
communications and Information Administration shall 
5 
submit a report on planned spending and actual obliga6 
tions describing the use of these funds not later than 120 
7 
days after the date of enactment of this Act, and an up8 
date report not later than 60 days following the initial re9 
port, to the Committees on Appropriations of the House 
10 
of Representatives and the Senate, the Committee on En11 
ergy and Commerce of the House of Representatives, and 
12 
the Committee on Commerce, Science, and Transportation 
13 
of the Senate: Provided further, That notwithstanding sec14 
tion 1103 of this Act, 50 percent of the grants made avail15 
able under this heading shall be awarded not later than 
16 
September 30, 2009: Provided further, That up to 20 per17 
cent of the funds provided under this heading for Wireless 
18 
Deployment Grants and Broadband Deployment Grants 
19 
may be transferred between these programs: Provided fur20 
ther, That the Committees on Appropriations of the House 
21 
of Representatives and the Senate shall be notified at least 
22 
15 days in advance of any transfer. 
23 


DIGITAL-TO-ANALOG CONVERTER BOX PROGRAM 

24 


Notwithstanding any other provision of law, and in 
25 
addition to amounts otherwise provided in any other Act, 

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51 
1 
for costs associated with the Digital-to-Analog Converter 
2 
Box Program, $650,000,000, to be available until Sep3 
tember 30, 2009: Provided, That these funds shall be 
4 
available for coupons and related activities, including but 
5 
not limited to education, consumer support and outreach, 
6 
as deemed appropriate and necessary to ensure a timely 
7 
conversion of analog to digital television. 
8 
NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY 
9 
SCIENTIFIC AND TECHNICAL RESEARCH AND SERVICES 
10 
For an additional amount for ‘‘Scientific and Tech11 
nical Research and Services’’, $100,000,000. 
12 
INDUSTRIAL TECHNOLOGY SERVICES 
13 
For an additional amount for ‘‘Industrial Technology 
14 
Services’’, $100,000,000, of which $70,000,000 shall be 
15 
available for the necessary expenses of the Technology In16 
novation Program and $30,000,000 shall be available for 
17 
the necessary expenses of the Hollings Manufacturing Ex18 
tension Partnership. 
19 
CONSTRUCTION OF RESEARCH FACILITIES 
20 
For an additional amount for ‘‘Construction of Re21 
search Facilities’’, as authorized by sections 13 through 
22 
15 of the Act of March 13, 1901 (15 U.S.C. 278c-278e), 
23 
$300,000,000, for a competitive construction grant pro24 
gram for research science buildings: Provided further, 
25 
That for peer-reviewed grants made under this heading, 

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52 
1 
the time limitation provided in section 1103(b) of this Act 
2 
shall be 120 days. 
3 


NATIONAL OCEANIC AND ATMOSPHERIC 

4 


ADMINISTRATION 

5 


OPERATIONS, RESEARCH, AND FACILITIES 
6 
For an additional amount for ‘‘Operations, Research, 
7 
and Facilities’’, $400,000,000, for habitat restoration and 
8 
mitigation activities. 
9 
PROCUREMENT, ACQUISITION AND CONSTRUCTION 
10 
For an additional amount for ‘‘Procurement, Acquisi11 
tion and Construction’’, $600,000,000, for accelerating 
12 
satellite development and acquisition, acquiring climate 
13 
sensors and climate modeling capacity, and establishing 
14 
climate data records: Provided further, That not less than 
15 
$140,000,000 shall be available for climate data modeling. 
16 
Subtitle B—Justice 
17 
DEPARTMENT OF JUSTICE 
18 
STATE AND LOCAL LAW ENFORCEMENT ACTIVITIES 
19 
OFFICE OF JUSTICE PROGRAMS 
20 
STATE AND LOCAL LAW ENFORCEMENT ASSISTANCE 
21 


For an additional amount for ‘‘State and Local Law 
22 
Enforcement Assistance’’, $3,000,000,000, to be available 
23 
for the Edward Byrne Memorial Justice Assistance Grant 
24 
Program as authorized by subpart 1 of part E of title I 
25 
of the Omnibus Crime Control and Safe Streets Act of 

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53 
1 
1968, (except that section 1001(c), and the special rules 
2 
for Puerto Rico under section 505(g), of such Act shall 
3 
not apply for purposes of this Act): Provided, That section 
4 
1106 of this Act shall not apply to funds provided under 
5 
this heading. 
6 
COMMUNITY ORIENTED POLICING SERVICES 
7 
For an additional amount for ‘‘Community Oriented 
8 
Policing Services’’, $1,000,000,000, to be available for 
9 
grants under section 1701 of title I of the 1968 Act (42 
10 
U.S.C. 3796dd) for the hiring and rehiring of additional 
11 
career law enforcement officers under part Q of such title 
12 
notwithstanding subsection (i) of such section: Provided, 
13 
That for peer-reviewed grants made under this heading, 
14 
the time limitation provided in section 1103(b) of this Act 
15 
shall be 120 days. 
16 
Subtitle C—Science 
17 
NATIONAL AERONAUTICS AND SPACE 
18 
ADMINISTRATION 
19 
SCIENCE 
20 
For an additional amount for ‘‘Science’’, 
21 
$400,000,000, of which not less than $250,000,000 shall 
22 
be solely for accelerating the development of the tier 1 set 
23 
of Earth science climate research missions recommended 
24 
by the National Academies Decadal Survey. 

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54 

1 


AERONAUTICS 

2 


For an additional amount for ‘‘Aeronautics’’, 
3 
$150,000,000. 
4 


CROSS AGENCY SUPPORT PROGRAMS 

5 


For an additional amount for ‘‘Cross Agency Support 
6 
Programs’’, for necessary expenses for restoration and 
7 
mitigation of National Aeronautics and Space Administra8 
tion owned infrastructure and facilities related to the con9 
sequences of hurricanes, floods, and other natural disas10 
ters occurring during 2008 for which the President de11 
clared a major disaster under title IV of the Robert T. 
12 
Stafford Disaster Relief and Emergency Assistance Act of 
13 
1974, $50,000,000. 
14 
NATIONAL SCIENCE FOUNDATION 
15 
RESEARCH AND RELATED ACTIVITIES 
16 
For an additional amount for ‘‘Research and Related 
17 
Activities’’, $2,500,000,000: Provided, That $300,000,000 
18 
shall be available solely for the Major Research Instru19 
mentation program and $200,000,000 shall be for activi20 
ties authorized by title II of Public Law 100–570 for aca21 
demic research facilities modernization: Provided, That for 
22 
peer-reviewed grants made under this heading, the time 
23 
limitation provided in section 1103(b) of this Act shall be 
24 
120 days. 

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55 

1 


EDUCATION AND HUMAN RESOURCES 

2 


For an additional amount for ‘‘Education and 
3 
Human Resources’’, $100,000,000: Provided, That 
4 
$60,000,000 shall be for activities authorized by section 
5 
7030 of Public Law 110–69 and $40,000,000 shall be for 
6 
activities authorized by section 9 of the National Science 
7 
Foundation Authorization Act of 2002 (42 U.S.C. 1862n). 
8 
MAJOR RESEARCH EQUIPMENT AND FACILITIES 
9 
CONSTRUCTION 
10 
For an additional amount for ‘‘Major Research 
11 
Equipment and Facilities Construction’’, $400,000,000, 
12 
which shall be available only for approved projects. 

13 
TITLE IV—DEFENSE 

14 
DEPARTMENT OF DEFENSE 
15 
FACILITY INFRASTRUCTURE INVESTMENTS, DEFENSE 
16 
For expenses, not otherwise provided for, to improve, 
17 
repair and modernize Department of Defense facilities, re18 
store and modernize Army barracks, and invest in the en19 
ergy efficiency of Department of Defense facilities, 
20 
$4,500,000,000, for Facilities Sustainment, Restoration 
21 
and Modernization programs of the Department of De22 
fense (including minor construction and major mainte23 
nance and repair), which shall be available as follows: 
24 
(1) ‘‘Operation and Maintenance, Army’’, 
25 


$1,490,804,000. 

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56 


1 
(2) ‘‘Operation and Maintenance, Navy’’, 
2 


$624,380,000. 
3 
(3) ‘‘Operation and Maintenance, Marine 
4 


Corps’’, $128,499,000. 

5 


(4) ‘‘Operation and Maintenance, Air Force’’, 
6 
$1,236,810,000. 
7 
(5) ‘‘Defense Health Program’’, $454,658,000. 
8 
(6) ‘‘Operation and Maintenance, Army Re9 
serve’’, $110,899,000. 
10 
(7) ‘‘Operation and Maintenance, Navy Re11 
serve’’, $62,162,000. 
12 
(8) ‘‘Operation and Maintenance, Marine Corps 
13 
Reserve’’, $45,038,000. 
14 
(9) ‘‘Operation and Maintenance, Air Force Re15 
serve’’, $14,881,000. 
16 
(10) ‘‘Operation and Maintenance, Army Na17 
tional Guard’’, $302,700,000. 
18 
(11) ‘‘Operation and Maintenance, Air National 
19 
Guard’’, $29,169,000. 
20 
ENERGY RESEARCH AND DEVELOPMENT, DEFENSE 
21 


For expenses, not otherwise provided for, for re22 
search, development, test and evaluation programs for im23 
provements in energy generation, transmission, regulation, 
24 
use, and storage, for military installations, military vehi


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57 
1 
cles, and other military equipment, $350,000,000, which 
2 
shall be available as follows: 
3 


(1) ‘‘Research, Development, Test and Evalua


4 


tion, Army’’, $87,500,000. 

5 


(2) ‘‘Research, Development, Test and Evalua6 
tion, Navy’’, $87,500,000. 
7 
(3) ‘‘Research, Development, Test and Evalua8 
tion, Air Force’’, $87,500,000. 
9 
(4) ‘‘Research, Development, Test and Evalua10 
tion, Defense-Wide’’, $87,500,000 
11 
TITLE V—ENERGY AND WATER 
12 
DEPARTMENT OF THE ARMY 
13 
CORPS OF ENGINEERS—CIVIL 
14 
CONSTRUCTION 
15 
For an additional amount for ‘‘Construction’’, 
16 
$2,000,000,000: Provided, That section 102 of Public 
17 
Law 109–103 (33 U.S.C. 2221) shall not apply to funds 
18 
provided in this paragraph: Provided further, That not19 
withstanding any other provision of law, funds provided 
20 
in this paragraph shall not be cost shared with the Inland 
21 
Waterways Trust Fund as authorized in Public Law 99– 
22 
662: Provided further, That funds provided in this para23 
graph may only be used for programs, projects or activities 
24 
previously funded: Provided further, That the Corps of En25 
gineers is directed to prioritize funding for activities based 

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1 
on the ability to accelerate existing contracts or fully fund 
2 
project elements and contracts for such elements in a time 
3 
period of 2 years after the date of enactment of this Act 
4 
giving preference to projects and activities that are labor 
5 
intensive: Provided further, That funds provided in this 
6 
paragraph shall be used for elements of projects, programs 
7 
or activities that can be completed using funds provided 
8 
herein: Provided further, That funds appropriated in this 
9 
paragraph may be used by the Secretary of the Army, act10 
ing through the Chief of Engineers, to undertake work au11 
thorized to be carried out in accordance with one or more 
12 
of section 14 of the Flood Control Act of 1946 (33 U.S.C. 
13 
701r), section 205 of the Flood Control Act of 1948 (33 
14 
U.S.C. 701s), section 206 of the Water Resources Devel15 
opment Act of 1996 (33 U.S.C. 2330), and section 1135 
16 
of the Water Resources Development Act of 1986 (33 
17 
U.S.C. 2309a), notwithstanding the program cost limita18 
tions set forth in those sections: Provided further, That 
19 
the limitation concerning total project costs in section 902 
20 
of the Water Resources Development Act of 1986, as 
21 
amended (33 U.S.C. 2280), shall not apply during fiscal 
22 
year 2009 to any project that received funds provided in 
23 
this title: Provided further, That for projects that are 
24 
being completed with funds appropriated in this Act that 
25 
are otherwise expired or lapsed for obligation, expired or 

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1 
lapsed funds appropriated in this Act may be used to pay 
2 
the cost of associated supervision, inspection, overhead, 
3 
engineering and design on those projects and on subse4 
quent claims, if any: Provided further, That the Secretary 
5 
of the Army shall submit a quarterly report to the Com6 
mittees on Appropriations of the House of Representatives 
7 
and the Senate detailing the allocation, obligation and ex8 
penditures of these funds, beginning not later than 45 
9 
days after enactment of this Act. 
10 
MISSISSIPPI RIVER AND TRIBUTARIES 
11 
For an additional amount for ‘‘Mississippi River and 
12 
Tributaries’’, $250,000,000: Provided, That funds pro13 
vided in this paragraph may only be used for programs, 
14 
projects, or activities previously funded: Provided further, 
15 
That the Corps of Engineers is directed to prioritize fund16 
ing for activities based on the ability to accelerate existing 
17 
contracts or fully fund project elements and contracts for 
18 
such elements in a time period of 2 years after the date 
19 
of enactment of this Act giving preference to projects and 
20 
activities that are labor intensive: Provided further, That 
21 
funds provided in this paragraph shall be used for ele22 
ments of projects, programs, or activities that can be com23 
pleted using funds provided herein: Provided further, That 
24 
for projects that are being completed with funds appro25 
priated in this Act that are otherwise expired or lapsed 

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1 
for obligation, expired or lapsed funds appropriated in this 
2 
Act may be used to pay the cost of associated supervision, 
3 
inspection, overhead, engineering and design on those 
4 
projects and on subsequent claims, if any: Provided fur5 
ther, That the Secretary of the Army shall submit a quar6 
terly report to the Committees on Appropriations of the 
7 
House of Representatives and the Senate detailing the al8 
location, obligation and expenditures of these funds, begin9 
ning not later than 45 days after enactment of this Act. 
10 
OPERATION AND MAINTENANCE 
11 
For an additional amount for ‘‘Operation and Main12 
tenance’’, $2,225,000,000: Provided, That the Corps of 
13 
Engineers is directed to prioritize funding for activities 
14 
based on the ability to accelerate existing contracts or fully 
15 
fund project elements and contracts for such elements in 
16 
a time period of 2 years after the date of enactment of 
17 
this Act giving preference to projects and activities that 
18 
are labor intensive: Provided further, That funds provided 
19 
in this paragraph shall be used for elements of projects, 
20 
programs, or activities that can be completed using funds 
21 
provided herein: Provided further, That for projects that 
22 
are being completed with funds appropriated in this Act 
23 
that are otherwise expired or lapsed for obligation, expired 
24 
or lapsed funds appropriated in this Act may be used to 
25 
pay the cost of associated supervision, inspection, over-

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1 
head, engineering and design on those projects and on 
2 
subsequent claims, if any: Provided further, That the Sec3 
retary of the Army shall submit a quarterly report to the 
4 
Committees on Appropriations of the House of Represent5 
atives and the Senate detailing the allocation, obligation 
6 
and expenditures of these funds, beginning not later than 
7 
45 days after enactment of this Act. 
8 
REGULATORY PROGRAM 
9 
For an additional amount for ‘‘Regulatory Program’’, 
10 
$25,000,000. 
11 
DEPARTMENT OF THE INTERIOR 
12 
BUREAU OF RECLAMATION 
13 
WATER AND RELATED RESOURCES 
14 
For an additional amount for ‘‘Water and Related 
15 
Resources’’, $500,000,000: Provided, That of the amount 
16 
appropriated under this heading, not less than 
17 
$126,000,000 shall be used for water reclamation and 
18 
reuse projects authorized under title XVI of Public Law 
19 
102–575: Provided further, That of the amount appro20 
priated under this heading, not less than $80,000,000 
21 
shall be used for rural water projects and these funds shall 
22 
be expended primarily on water intake and treatment fa23 
cilities of such projects: Provided further, That the costs 
24 
of reimbursable activities, other than for maintenance and 
25 
rehabilitation, carried out with funds made available under 

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1 
this heading shall be repaid pursuant to existing authori2 
ties and agreements: Provided further, That the costs of 
3 
maintenance and rehabilitation activities carried out with 
4 
funds provided in this Act shall be repaid pursuant to ex5 
isting authority, except the length of repayment period 
6 
shall be determined on needs-based criteria to be estab7 
lished and adopted by the Commissioner of the Bureau 
8 
of Reclamation, but in no case shall the repayment period 
9 
exceed 25 years. 
10 
DEPARTMENT OF ENERGY 
11 
ENERGY PROGRAMS 
12 
ENERGY EFFICIENCY AND RENEWABLE ENERGY 
13 
For an additional amount for ‘‘Energy Efficiency and 
14 
Renewable Energy’’, $18,500,000,000, which shall be used 
15 
as follows: 
16 
(1) $2,000,000,000 shall be for expenses nec17 
essary for energy efficiency and renewable energy re18 
search, development, demonstration and deployment 
19 
activities, to accelerate the development of tech20 
nologies, to include advanced batteries, of which not 
21 
less than $800,000,000 is for biomass and 
22 


$400,000,000 is for geothermal technologies. 

23 


(2) $500,000,000 shall be for expenses nec


24 


essary to implement the programs authorized under 

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1 


part E of title III of the Energy Policy and Con


2 


servation Act (42 U.S.C. 6341 et seq.). 

3 


(3) $1,000,000,000 shall be for the cost of 

4 


grants to institutional entities for energy sustain


5 


ability and efficiency under section 399A of the En6 
ergy Policy and Conservation Act (42 U.S.C. 6371h-
7 
1). 
8 
(4) $6,200,000,000 shall be for the Weatheriza9 
tion Assistance Program under part A of title IV of 
10 
the Energy Conservation and Production Act (42 
11 
U.S.C. 6861 et seq.). 
12 
(5) $3,500,000,000 shall be for Energy Effi13 
ciency and Conservation Block Grants, for imple14 
mentation of programs authorized under subtitle E 
15 
of title V of the Energy Independence and Security 
16 
Act of 2007 (42 U.S.C. 17151 et seq.). 
17 
(6) $3,400,000,000 shall be for the State En18 
ergy Program authorized under part D of title III 
19 
of the Energy Policy and Conservation Act (42 
20 
U.S.C. 6321). 
21 


(7) $200,000,000 shall be for expenses nec


22 


essary to implement the programs authorized under 

23 


section 131 of the Energy Independence and Secu


24 


rity Act of 2007 (42 U.S.C. 17011). 

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64 

1 


(8) $300,000,000 shall be for expenses nec


2 


essary to implement the program authorized under 

3 


section 124 of the Energy Policy Act of 2005 (42 

4 


U.S.C. 15821) and the Energy Star program. 

5 


(9) $400,000,000 shall be for expenses nec6 
essary to implement the program authorized under 
7 
section 721 of the Energy Policy Act of 2005 (42 
8 
U.S.C. 16071). 
9 
(10) $1,000,000,000 shall be for expenses nec10 
essary for the manufacturing of advanced batteries 
11 
authorized under section 136(b)(1)(B) of the Energy 
12 
Independence and Security Act of 2007 (42 U.S.C. 
13 
17013(b)(1)(B)): 
14 
Provided, That notwithstanding section 3304 of title 5, 
15 
United States Code, and without regard to the provisions 
16 
of sections 3309 through 3318 of such title 5, the Sec17 
retary of Energy may, upon a determination that there 
18 
is a severe shortage of candidates or a critical hiring need 
19 
for particular positions, recruit and directly appoint highly 
20 
qualified individuals into the competitive service: Provided 
21 
further, That such authority shall not apply to positions 
22 
in the Excepted Service or the Senior Executive Service: 
23 
Provided further, That any action authorized herein shall 
24 
be consistent with the merit principles of section 2301 of 
25 
such title 5, and the Department shall comply with the 

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1 
public notice requirements of section 3327 of such title 

2 
5. 
3 


ELECTRICITY DELIVERY AND ENERGY RELIABILITY 

4 


For an additional amount for ‘‘Electricity Delivery 
5 
and Energy Reliability,’’ $4,500,000,000: Provided, That 
6 
funds shall be available for expenses necessary for elec7 
tricity delivery and energy reliability activities to mod8 
ernize the electric grid, enhance security and reliability of 
9 
the energy infrastructure, energy storage research, devel10 
opment, demonstration and deployment, and facilitate re11 
covery from disruptions to the energy supply, and for im12 
plementation of programs authorized under title XIII of 
13 
the Energy Independence and Security Act of 2007 (42 
14 
U.S.C. 17381 et seq.): Provided further, That of such 
15 
amounts, $100,000,000 shall be for worker training: Pro16 
vided further, That the Secretary of Energy may use or 
17 
transfer amounts provided under this heading to carry out 
18 
new authority for transmission improvements, if such au19 
thority is enacted in any subsequent Act, consistent with 
20 
existing fiscal management practices and procedures. 
21 


ADVANCED BATTERY LOAN GUARANTEE PROGRAM 

22 


For the cost of guaranteed loans as authorized by 
23 
section 135 of the Energy Independence and Security Act 
24 
of 2007 (42 U.S.C. 17012), $1,000,000,000, to remain 
25 
available until expended: Provided, That of such amount, 

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1 
$10,000,000 shall be used for administrative expenses in 
2 
carrying out the guaranteed loan program, and shall be 
3 
in lieu of the amount set aside under section 1106 of this 
4 
Act: Provided further, That the cost of such loans, includ5 
ing the cost of modifying such loans, shall be as defined 
6 
in section 502 of the Congressional Budget Act of 1974. 
7 
INSTITUTIONAL LOAN GUARANTEE PROGRAM 
8 
For the cost of guaranteed loans as authorized by 
9 
section 399A of the Energy Policy and Conservation Act 
10 
(42 U.S.C. 6371h–1), $500,000,000: Provided, That of 
11 
such amount, $10,000,000 shall be used for administra12 
tive expenses in carrying out the guaranteed loan pro13 
gram, and shall be in lieu of the amount set aside under 
14 
section 1106 of this Act: Provided further, That the cost 
15 
of such loans, including the cost of modifying such loans, 
16 
shall be as defined in section 502 of the Congressional 
17 
Budget Act of 1974. 
18 
INNOVATIVE TECHNOLOGY LOAN GUARANTEE PROGRAM 
19 
For an additional amount for ‘‘Innovative Technology 
20 
Loan Guarantee Program’’ for the cost of guaranteed 
21 
loans authorized by section 1705 of the Energy Policy Act 
22 
of 2005, $8,000,000,000: Provided, That of such amount, 
23 
$25,000,000 shall be used for administrative expenses in 
24 
carrying out the guaranteed loan program, and shall be 
25 
in lieu of the amount set aside under section 1106 of this 

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1 
Act: Provided further, That the cost of such loans, includ2 
ing the cost of modifying such loans, shall be as defined 
3 
in section 502 of the Congressional Budget Act of 1974. 
4 


FOSSIL ENERGY 

5 


For an additional amount for ‘‘Fossil Energy’’, 
6 
$2,400,000,000 for necessary expenses to demonstrate 
7 
carbon capture and sequestration technologies as author8 
ized under section 702 of the Energy Independence and 
9 
Security Act of 2007. 
10 
SCIENCE 
11 
For an additional amount for ‘‘Science’’, 
12 
$2,000,000,000: Provided, That of such amounts, not less 
13 
than $400,000,000 shall be used for the Advanced Re14 
search Projects Agency—Energy authorized under section 
15 
5012 of the America COMPETES Act (42 U.S.C. 16538): 
16 
Provided further, That of such amounts, not less than 
17 
$100,000,000 shall be used for advanced scientific com18 
puting. 
19 
ENVIRONMENTAL AND OTHER DEFENSE 
20 
ACTIVITIES 
21 


DEFENSE ENVIRONMENTAL CLEANUP 

22 


For an additional amount for ‘‘Defense Environ23 
mental Cleanup,’’ $500,000,000: Provided, That such 
24 
amounts shall be used for elements of projects, programs, 

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1 
or activities that can be completed using funds provided 
2 
herein. 
3 


GENERAL PROVISIONS, THIS TITLE 

4 
SEC. 5001. WESTERN AREA POWER ADMINISTRATION BOR5 


ROWING AUTHORITY. 

6 
The Hoover Power Plant Act of 1984 (Public Law 
7 
98-381) is amended by adding at the end the following: 
8 
‘‘TITLE III—BORROWING 
9 
AUTHORITY 
10 
‘‘SEC. 301. WESTERN AREA POWER ADMINISTRATION BOR11 
ROWING AUTHORITY. 
12 
‘‘(a) DEFINITIONS.—In this section— 
13 
‘‘(1) ADMINISTRATOR.—The term ‘Adminis14 
trator’ means the Administrator of the Western 
15 
Area Power Administration. 
16 
‘‘(2) SECRETARY.—The term ‘Secretary’ means 
17 
the Secretary of the Treasury. 
18 
‘‘(b) AUTHORITY.— 
19 
‘‘(1) IN GENERAL.—Notwithstanding any other 
20 
provision of law, subject to paragraphs (2) through 
21 
(5)— 
22 


‘‘(A) the Western Area Power Administra


23 


tion may borrow funds from the Treasury; and 

24 


‘‘(B) the Secretary shall, without further 

25 


appropriation and without fiscal year limitation, 

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69 

1 


loan to the Western Area Power Administra


2 


tion, on such terms as may be fixed by the Ad


3 


ministrator and the Secretary, such sums (not 

4 


to exceed, in the aggregate (including deferred 

5 


interest), $3,250,000,000 in outstanding repay6 
able balances at any 1 time) as, in the judg7 
ment of the Administrator, are from time to 
8 
time required for the purpose of— 
9 
‘‘(i) constructing, financing, facili10 
tating, or studying construction of new or 
11 
upgraded electric power transmission lines 
12 
and related facilities with at least 1 ter13 
minus within the area served by the West14 
ern Area Power Administration; and 
15 
‘‘(ii) delivering or facilitating the de16 
livery of power generated by renewable en17 
ergy resources constructed or reasonably 
18 
expected to be constructed after the date 
19 
of enactment of this section. 
20 
‘‘(2) INTEREST.—The rate of interest to be 
21 


charged in connection with any loan made pursuant 

22 


to this subsection shall be fixed by the Secretary, 

23 


taking into consideration market yields on out


24 


standing marketable obligations of the United States 

25 


of comparable maturities as of the date of the loan. 

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1 


‘‘(3) REFINANCING.—The Western Area Power 

2 


Administration may refinance loans taken pursuant 

3 


to this section within the Treasury. 

4 


‘‘(4) PARTICIPATION.—The Administrator may 

5 


permit other entities to participate in projects fi6 
nanced under this section. 
7 
‘‘(5) CONGRESSIONAL REVIEW OF DISBURSE8 
MENT.—Effective upon the date of enactment of this 
9 
section, the Administrator shall have the authority 
10 
to have utilized $1,750,000,000 at any one time. If 
11 
the Administrator seeks to borrow funds above 
12 
$1,750,000,000, the funds will be disbursed unless 
13 
there is enacted, within 90 calendar days of the first 
14 
such request, a joint resolution that rescinds the re15 
mainder of the balance of the borrowing authority 
16 
provided in this section. 
17 
‘‘(c) TRANSMISSION LINE AND RELATED FACILITY 
18 
PROJECTS.— 
19 
‘‘(1) IN GENERAL.—For repayment purposes, 
20 
each transmission line and related facility project in 
21 


which the Western Area Power Administration par


22 


ticipates pursuant to this section shall be treated as 

23 


separate and distinct from— 

24 


‘‘(A) each other such project; and 

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1 


‘‘(B) all other Western Area Power Admin


2 


istration power and transmission facilities. 

3 


‘‘(2) PROCEEDS.—The Western Area Power 

4 


Administration shall apply the proceeds from the use 

5 


of the transmission capacity from an individual 
6 
project under this section to the repayment of the 
7 
principal and interest of the loan from the Treasury 
8 
attributable to that project, after reserving such 
9 
funds as the Western Area Power Administration 
10 
determines are necessary— 
11 
‘‘(A) to pay for any ancillary services that 
12 
are provided; and 
13 
‘‘(B) to meet the costs of operating and 
14 
maintaining the new project from which the 
15 
revenues are derived. 
16 
‘‘(3) SOURCE OF REVENUE.—Revenue from the 
17 
use of projects under this section shall be the only 
18 
source of revenue for— 
19 
‘‘(A) repayment of the associated loan for 
20 
the project; and 
21 


‘‘(B) payment of expenses for ancillary 

22 


services and operation and maintenance. 
23 
‘‘(4) LIMITATION ON AUTHORITY.—Nothing in 
24 


this section confers on the Administrator any obliga


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72 

1 


tion to provide ancillary services to users of trans


2 


mission facilities developed under this section. 

3 


‘‘(d) CERTIFICATION.— 

4 


‘‘(1) IN GENERAL.—For each project in which 

5 


the Western Area Power Administration participates 
6 
pursuant to this section, the Administrator shall cer7 
tify, prior to committing funds for any such project, 
8 
that— 
9 
‘‘(A) the project is in the public interest; 
10 
‘‘(B) the project will not adversely impact 
11 
system reliability or operations, or other statu12 
tory obligations; and 
13 
‘‘(C) it is reasonable to expect that the 
14 
proceeds from the project shall be adequate to 
15 
make repayment of the loan. 
16 
‘‘(2) FORGIVENESS OF BALANCES.— 
17 
‘‘(A) IN GENERAL.—If, at the end of the 
18 
useful life of a project, there is a remaining bal19 
ance owed to the Treasury under this section, 
20 
the balance shall be forgiven. 
21 


‘‘(B) UNCONSTRUCTED PROJECTS.—Funds 

22 


expended to study projects that are considered 

23 


pursuant to this section but that are not con


24 


structed shall be forgiven. 

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73 

1 


‘‘(C) NOTIFICATION.—The Administrator 

2 


shall notify the Secretary of such amounts as 

3 


are to be forgiven under this paragraph. 

4 


‘‘(e) PUBLIC PROCESSES.— 
5 
‘‘(1) POLICIES AND PRACTICES.—Prior to re6 
questing any loans under this section, the Adminis7 
trator shall use a public process to develop practices 
8 
and policies that implement the authority granted by 
9 
this section. 
10 
‘‘(2) REQUESTS FOR INTERESTS.—In the 
11 
course of selecting potential projects to be funded 
12 
under this section, the Administrator shall seek re13 
quests for interest from entities interested in identi14 
fying potential projects through one or more notices 
15 
published in the Federal Register.’’. 
16 
SEC. 5002. BONNEVILLE POWER ADMINISTRATION. 
17 
For the purposes of providing funds to assist in fi18 
nancing the construction, acquisition, and replacement of 
19 
the transmission system of the Bonneville Power Adminis20 
tration and to implement the authority of the Adminis21 
trator under the Pacific Northwest Electric Power Plan22 
ning and Conservation Act (16 U.S.C. 839 et seq.), an 
23 
additional $3,250,000,000 in borrowing authority is made 
24 
available under the Federal Columbia River Transmission 

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74 
1 
System Act (16 U.S.C. 838 et seq.), to remain outstanding 
2 
at any time. 
3 
SEC. 5003. APPROPRIATIONS TRANSFER AUTHORITY. 
4 


Not to exceed 20 percent of the amounts made avail5 
able in this Act to the Department of Energy for ‘‘Energy 
6 
Efficiency and Renewable Energy’’, ‘‘Electricity Delivery 
7 
and Energy Reliability’’, and ‘‘Advanced Battery Loan 
8 
Guarantee Program’’ may be transferred within and be9 
tween such accounts, except that no amount specified 
10 
under any such heading may be increased or decreased 
11 
by more than a total of 20 percent by such transfers, and 
12 
notification of such transfers shall be submitted promptly 
13 
to the Committees on Appropriations of the House of Rep14 
resentatives and the Senate. 
15 
TITLE VI—FINANCIAL SERVICES 
16 
AND GENERAL GOVERNMENT 
17 
Subtitle A—General Services 
18 
GENERAL SERVICES ADMINISTRATION 
19 
FEDERAL BUILDINGS FUND 
20 
LIMITATIONS ON AVAILABILITY OF REVENUE 
21 


(INCLUDING TRANSFER OF FUNDS) 

22 


For an additional amount to be deposited in the Fed23 
eral Buildings Fund, $7,700,000,000 for real property ac24 
tivities with priority given to activities that can commence 
25 
promptly following enactment of this Act; of which up to 

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1 
$1,000,000,000 shall be used for construction, repair, and 
2 
alteration of border facilities and land ports of entry; of 
3 
which not less than $6,000,000,000 shall be used for con4 
struction, repair, and alteration of Federal buildings for 
5 
projects that will create the greatest impact on energy effi6 
ciency and conservation; of which $108,000,000 shall re7 
main available until September 30, 2012, and shall be 
8 
used for rental of space costs associated with the construc9 
tion, repair, and alteration of these projects; Provided, 
10 
That of the amounts provided, $160,000,000 shall remain 
11 
available until September 30, 2012, and shall be for build12 
ing operations in support of the activities described in this 
13 
paragraph: Provided further, That the preceding proviso 
14 
shall apply to this appropriation in lieu of the provisions 
15 
of section 1106 of this Act: Provided further, That the Ad16 
ministrator of General Services is authorized to initiate 
17 
design, construction, repair, alteration, leasing, and other 
18 
projects through existing authorities of the Administrator: 
19 
Provided further, That the Administrator shall submit a 
20 
detailed plan, by project, regarding the use of funds to 
21 
the Committees on Appropriations of the House of Rep22 
resentatives and the Senate within 30 days after enact23 
ment of this Act, and shall provide notification to the 
24 
Committees within 15 days prior to any changes regarding 
25 
the use of these funds: Provided further, That the Admin


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1 
istrator shall report to the Committees on the obligation 
2 
of these funds on a quarterly basis beginning on June 30, 
3 
2009: Provided further, That of the amounts provided, 
4 
$4,000,000 shall be transferred to and merged with ‘‘Gov5 
ernment-Wide Policy’’, for the Office of Federal High-Per6 
formance Green Buildings as authorized in the Energy 
7 
Independence and Security Act of 2007 (Public Law 110– 
8 
140). 
9 
ENERGY EFFICIENT FEDERAL MOTOR VEHICLE FLEET 
10 
PROCUREMENT 
11 
For capital expenditures and necessary expenses of 
12 
the General Services Administration’s Motor Vehicle Ac13 
quisition and Motor Vehicle Leasing programs for the ac14 
quisition of motor vehicles, including plug-in and alter15 
native fuel vehicles, $600,000,000: Provided, That the 
16 
amount set aside from this appropriation pursuant to sec17 
tion 1106 of this Act shall be 1 percent instead of the 
18 
percentage specified in such section: Provided further, 
19 
That none of these funds may be obligated until the Ad20 
ministrator of General Services submits to the Committees 
21 
on Appropriations of the House of Representatives and the 
22 
Senate, within 90 days after enactment of this Act, a plan 
23 
for expenditure of the funds that details the current inven24 
tory of the Federal fleet owned by the General Services 
25 
Administration, as well as other Federal agencies, and the 

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1 
strategy to expend these funds to replace a portion of the 
2 
Federal fleet with the goal of substantially increasing en3 
ergy efficiency over the current status, including increas4 
ing fuel efficiency and reducing emissions: Provided fur5 
ther, That the Administrator shall report to the Commit6 
tees on the obligation of these funds on a quarterly basis 
7 
beginning on June 30, 2009. 
8 
Subtitle B—Small Business 
9 
SMALL BUSINESS ADMINISTRATION 
10 
BUSINESS LOANS PROGRAM ACCOUNT 
11 
(INCLUDING TRANSFERS OF FUNDS) 
12 
For the cost of direct loans and loan guarantees au13 
thorized by sections 6202 through 6205 of this Act, 
14 
$426,000,000: Provided, That such cost, including the 
15 
cost of modifying such loans, shall be as defined in section 
16 
502 of the Congressional Budget Act of 1974. In addition, 
17 
for administrative expenses to carry out the direct loan 
18 
and loan guarantee programs authorized by this Act, 
19 
$4,000,000, which may be transferred to and merged with 
20 
the appropriations for Salaries and Expenses: Provided, 
21 
That this sentence shall apply to this appropriation in lieu 
22 
of the provisions of section 1106 of this Act. 

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1 


GENERAL PROVISIONS, THIS SUBTITLE 

2 
SEC. 6201. ECONOMIC STIMULUS LENDING PROGRAM FOR 
3 


SMALL BUSINESSES. 

4 


(a) PURPOSE.—The purpose of this section is to per5 
mit the Small Business Administration to guarantee up 
6 
to 95 percent of qualifying small business loans made by 
7 
eligible lenders. 
8 
(b) DEFINITIONS.—For purposes of this section: 
9 
(1) The term ‘‘Administrator’’ means the Ad10 
ministrator of the Small Business Administration. 
11 
(2) The term ‘‘qualifying small business loan’’ 
12 
means any loan to a small business concern that 
13 
would be eligible for a loan guarantee under section 
14 
7(a) of the Small Business Act (15 U.S.C. 636) or 
15 
title V of the Small Business Investment Act of 
16 
1958 (15 U.S.C. 695 and following). 
17 
(3) The term ‘‘small business concern’’ has the 
18 
same meaning as provided by section 3 of the Small 
19 
Business Act (15 U.S.C. 632). 
20 
(c) APPLICATION.—In order to participate in the loan 
21 
guarantee program under this section a lender shall sub22 
mit an application to the Administrator for the guarantee 
23 
of up to 95 percent of the principal amount of a qualifying 
24 
small business loan. The Administrator shall approve or 
25 
deny each such application within 5 business days after 

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1 
receipt thereof. The Administrator may not delegate to 
2 
lenders the authority to approve or disapprove such appli3 
cations. 
4 


(d) FEES.—The Administrator may charge fees for 
5 
guarantees issued under this section. Such fees shall not 
6 
exceed the fees permitted for loan guarantees under sec7 
tion 7(a) of the Small Business Act (15 U.S.C. 631 and 
8 
following). 
9 
(e) INTEREST RATES.—The Administrator may not 
10 
guarantee under this section any loan that bears interest 
11 
at a rate higher than 3 percent above the higher of either 
12 
of the following as quoted in the Wall Street Journal on 
13 
the first business day of the week in which such guarantee 
14 
is issued: 
15 
(1) The London interbank offered rate 
16 
(LIBOR) for a 3-month period. 
17 
(2) The Prime Rate. 
18 
(f) QUALIFIED BORROWERS.— 
19 
(1) ALIENS UNLAWFULLY PRESENT IN THE 
20 
UNITED STATES.—A loan guarantee may not be 
21 


made under this section for a loan made to a con


22 


cern if an individual who is an alien unlawfully 

23 


present in the United States— 

24 


(A) has an ownership interest in that con25 
cern; or 

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1 


(B) has an ownership interest in another 

2 


concern that itself has an ownership interest in 

3 


that concern. 
4 
(2) FIRMS IN VIOLATION OF IMMIGRATION 
5 


LAWS.—No loan guarantee may be made under this 
6 
section for a loan to any entity found, based on a 
7 
determination by the Secretary of Homeland Secu8 
rity or the Attorney General to have engaged in a 
9 
pattern or practice of hiring, recruiting or referring 
10 
for a fee, for employment in the United States an 
11 
alien knowing the person is an unauthorized alien. 
12 
(g) CRIMINAL BACKGROUND CHECKS.—Prior to the 
13 
approval of any loan guarantee under this section, the Ad14 
ministrator may verify the applicant’s criminal back15 
ground, or lack thereof, through the best available means, 
16 
including, if possible, use of the National Crime Informa17 
tion Center computer system at the Federal Bureau of In18 
vestigation. 
19 
(h) APPLICATION OF OTHER LAW.—Nothing in this 
20 
section shall be construed to exempt any activity of the 
21 
Administrator under this section from the Federal Credit 
22 
Reform Act of 1990 (title V of the Congressional Budget 
23 
and Impoundment Control Act of 1974; 2 U.S.C. 661 and 
24 
following). 

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1 


(i) SUNSET.—Loan guarantees may not be issued 
2 
under this section after the date 90 days after the date 
3 
of establishment (as determined by the Administrator) of 
4 
the economic recovery program under section 6204. 
5 


(j) SMALL BUSINESS ACT PROVISIONS.—The provi6 
sions of the Small Business Act applicable to loan guaran7 
tees under section 7 of that Act shall apply to loan guaran8 
tees under this section except as otherwise provided in this 
9 
section. 
10 
(k) AUTHORIZATION.—There are authorized to be ap11 
propriated such sums as may be necessary to carry out 
12 
this section. 
13 
SEC. 6202. ESTABLISHMENT OF SBA SECONDARY MARKET 
14 
LENDING AUTHORITY. 
15 
(a) PURPOSE.—The purpose of this section is to pro16 
vide the Small Business Administration with the authority 
17 
to establish a Secondary Market Lending Authority within 
18 
the SBA to make loans to the systemically important SBA 
19 
secondary market broker-dealers who operate the SBA 
20 
secondary market. 
21 


(b) DEFINITIONS.—For purposes of this section: 

22 


(1) The term ‘‘Administrator’’ means the Ad


23 


ministrator of the SBA. 

24 


(2) The term ‘‘SBA’’ means the Small Business 

25 


Administration. 

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1 


(3) The terms ‘‘Secondary Market Lending Au


2 


thority’’ and ‘‘Authority’’ mean the office established 

3 


under subsection (c). 

4 


(4) The term ‘‘SBA secondary market’’ means 

5 


the market for the purchase and sale of loans origi6 
nated, underwritten, and closed under the Small 
7 
Business Act. 
8 
(5) The term ‘‘Systemically Important Sec9 
ondary Market Broker-Dealers’’ mean those entities 
10 
designated under subsection (c)(1) as vital to the 
11 
continued operation of the SBA secondary market 
12 
by reason of their purchase and sale of the govern13 
ment guaranteed portion of loans, or pools of loans, 
14 
originated, underwritten, and closed under the Small 
15 
Business Act. 
16 
(c) RESPONSIBILITIES, AUTHORITIES, ORGANIZA17 
TION, AND LIMITATIONS.— 
18 
(1) DESIGNATION OF SYSTEMICALLY IMPOR19 
TANT SBA SECONDARY MARKET BROKER-DEAL20 
ERS.—The Administrator shall establish a process to 
21 


designate, in consultation with the Board of Gov


22 


ernors of the Federal Reserve and the Secretary of 

23 


the Treasury, Systemically Important Secondary 

24 


Market Broker-Dealers. 

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1 


(2) ESTABLISHMENT OF SBA SECONDARY MAR


2 


KET LENDING AUTHORITY.— 

3 


(A) ORGANIZATION.— 

4 


(i) The Administrator shall establish 

5 


within the SBA an office to provide loans 
6 
to Systemically Important Secondary Mar7 
ket Broker-dealers to be used for the pur8 
pose of financing the inventory of the gov9 
ernment guaranteed portion of loans, origi10 
nated, underwritten, and closed under the 
11 
Small Business Act or pools of such loans. 
12 
(ii) The Administrator shall appoint a 
13 
Director of the Authority who shall report 
14 
to the Administrator. 
15 
(iii) The Administrator is authorized 
16 
to hire such personnel as are necessary to 
17 
operate the Authority. 
18 
(iv) The Administrator may contract 
19 
such Authority operations as he determines 
20 
necessary to qualified third-party compa21 


nies or individuals. 

22 


(v) The Administrator is authorized to 

23 


contract with private sector fiduciary and 

24 


custodial agents as necessary to operate 

25 


the Authority. 

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84 

1 


(B) LOANS.— 

2 


(i) The Administrator shall establish 

3 


by rule a process under which Systemically 

4 


Important SBA Secondary Market Broker


5 


Dealers designated under paragraph (1) 
6 
may apply to the Administrator for loans 
7 
under this section. 
8 
(ii) The rule under clause (i) shall 
9 
provide a process for the Administrator to 
10 
consider and make decisions regarding 
11 
whether or not to extend a loan applied for 
12 
under this section. Such rule shall include 
13 
provisions to assure each of the following: 
14 
(I) That loans made under this 
15 
section are for the sole purpose of fi16 
nancing the inventory of the govern17 
ment guaranteed portion of loans, 
18 
originated, underwritten, and closed 
19 
under the Small Business Act or pools 
20 
of such loans. 
21 


(II) That loans made under this 

22 


section are fully collateralized to the 

23 


satisfaction of the Administrator. 

24 


(III) That there is no limit to the 

25 


frequency in which a borrower may 

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85 

1 


borrow under this section unless the 

2 


Administrator determines that doing 

3 


so would create an undue risk of loss 

4 


to the agency or the United States. 

5 


(IV) That there is no limit on the 
6 
size of a loan, subject to the discretion 
7 
of the Administrator. 
8 
(iii) Interest on loans under this sec9 
tion shall not exceed the Federal Funds 
10 
target rate as established by the Federal 
11 
Reserve Board of Governors plus 25 basis 
12 
points. 
13 
(iv) The rule under this section shall 
14 
provide for such loan documents, legal cov15 
enants, collateral requirements and other 
16 
required documentation as necessary to 
17 
protect the interests of the agency, the 
18 
United States, and the taxpayer. 
19 
(v) The Administrator shall establish 
20 
custodial accounts to safeguard any collat21 


eral pledged to the SBA in connection with 

22 


a loan under this section. 

23 


(vi) The Administrator shall establish 

24 


a process to disburse and receive funds to 

25 


and from borrowers under this section. 

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1 


(C) LIMITATIONS ON USE OF LOAN PRO2 
CEEDS BY SYSTEMICALLY IMPORTANT SEC3 


ONDARY MARKET BROKER-DEALERS.—The Ad


4 


ministrator shall ensure that borrowers under 

5 


this section are using funds provided under this 
6 
section only for the purpose specified in sub7 
paragraph (B)(ii)(I). If the Administrator finds 
8 
that such funds were used for any other pur9 
pose, the Administrator shall— 
10 
(i) require immediate repayment of 
11 
outstanding loans; 
12 
(ii) prohibit the borrower, its affili13 
ates, or any future corporate manifestation 
14 
of the borrower from using the Authority; 
15 
and 
16 
(iii) take any other actions the Ad17 
ministrator, in consultation with the Attor18 
ney General of the United States, deems 
19 
appropriate. 
20 
(d) REPORT TO CONGRESS.—The Administrator shall 
21 
submit a report to Congress not later than the third busi22 
ness day of each month containing a statement of each 
23 
of the following: 
24 


(1) The aggregate loan amounts extended dur


25 


ing the preceding month under this section. 

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87 

1 


(2) The aggregate loan amounts repaid under 

2 


this section during the proceeding month. 

3 


(3) The aggregate loan amount outstanding 

4 


under this section. 

5 


(4) The aggregate value of assets held as collat6 
eral under this section; 
7 
(5) The amount of any defaults or delinquencies 
8 
on loans made under this section. 
9 
(6) The identity of any borrower found by the 
10 
Administrator to misuse funds made available under 
11 
this section. 
12 
(7) Any other information the Administrator 
13 
deems necessary to fully inform Congress of undue 
14 
risk of financial loss to the United States in connec15 
tion with loans made under this section. 
16 
(e) DURATION.—The authority of this section shall 
17 
remain in effect for a period of 2 years after the date of 
18 
enactment of this section. 
19 
(f) FUNDING.—Such sums as necessary are author20 
ized to be appropriated to carry out the provisions of this 
21 
section. 
22 


(g) BUDGET TREATMENT.—Nothing in this section 
23 
shall be construed to exempt any activity of the Adminis24 
trator under this section from the Federal Credit Reform 
25 
Act of 1990 (title V of the Congressional Budget and Im


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1 
poundment Control Act of 1974; 2 U.S.C. 661 and fol2 
lowing). 
3 


(h) EMERGENCY RULEMAKING AUTHORITY.—The 
4 
Administrator shall promulgate regulations under this sec5 
tion within 15 days after the date of enactment of enact6 
ment of this section. In promulgating these regulations, 
7 
the Administrator the notice requirements of section 
8 
553(b) of title 5 of the United States Code shall not apply. 
9 
SEC. 6203. ESTABLISHMENT OF SBA SECONDARY MARKET 
10 
GUARANTEE AUTHORITY. 
11 
(a) PURPOSE.—The purpose of this section is to pro12 
vide the Administrator with the authority to establish the 
13 
SBA Secondary Market Guarantee Authority within the 
14 
SBA to provide a Federal guarantee for pools of first lien 
15 
504 loans that are to be sold to third-party investors. 
16 
(b) DEFINITIONS.—For purposes of this section: 
17 
(1) The term ‘‘Administrator’’ means the Ad18 
ministrator of the Small Business Administration. 
19 
(2) The term ‘‘first lien position 504 loan’’ 
20 
means the first mortgage position, non-federally 
21 


guaranteed loans made by private sector lenders 

22 


made under title V of the Small Business Invest


23 


ment Act. 

24 


(c) ESTABLISHMENT OF AUTHORITY.— 

25 


(1) ORGANIZATION.— 

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1 


(A) The Administrator shall establish a 

2 


Secondary Market Guarantee Authority within 

3 


the Small Business Administration. 

4 


(B) The Administrator shall appoint a Di


5 


rector of the Authority who shall report to the 
6 
Administrator. 
7 
(C) The Administrator is authorized to 
8 
hire such personnel as are necessary to operate 
9 
the Authority and may contract such operations 
10 
of the Authority as necessary to qualified third11 
party companies or individuals. 
12 
(D) The Administrator is authorized to 
13 
contract with private sector fiduciary and custo14 
dial agents as necessary to operate the Author15 
ity. 
16 
(2) GUARANTEE PROCESS.— 
17 
(A) The Administrator shall establish, by 
18 
rule, a process in which private sector entities 
19 
may apply to the Administration for a Federal 
20 
guarantee on pools of first lien position 504 
21 


loans that are to be sold to third-party inves22 
tors. 
23 


(B) The Administrator shall appoint a Di


24 


rector of the Authority who shall report to the 

25 


Administrator. 

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90 

1 


(C) The Administrator is authorized to 

2 


hire such personnel as are necessary to operate 

3 


the Authority and may contract such operations 

4 


of the Authority as necessary to qualified third


5 


party companies or individuals. 
6 
(D) The Administrator is authorized to 
7 
contract with private sector fiduciary and custo8 
dial agents as necessary to operate the Author9 
ity. 
10 
(3) RESPONSIBILITIES.— 
11 
(A) The Administrator shall establish, by 
12 
rule, a process in which private sector entities 
13 
may apply to the SBA for a Federal guarantee 
14 
on pools of first lien position 504 loans that are 
15 
to be sold to third-party investors. 
16 
(B) The rule under this section shall pro17 
vide for a process for the Administrator to con18 
sider and make decisions regarding whether to 
19 
extend a Federal guarantee referred to in 
20 
clause (i). Such rule shall also provide that: 
21 


(i) The seller of the pools purchasing 

22 


a guarantee under this section retains not 

23 


less than 5 percent of the dollar amount of 

24 


the pools to be sold to third-party inves25 
tors. 

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91 

1 


(ii) The seller of such pools shall ab


2 


sorb any and all losses resulting from a 

3 


shortage or excess of monthly cash flows. 

4 


(iii) The Administrator shall receive a 

5 


monthly fee of not more than 50 basis 
6 
points on the outstanding balance of the 
7 
dollar amount of the pools that are guar8 
anteed. 
9 
(iv) The Administrator may guarantee 
10 
not more than $3,000,000,0000 of pools 
11 
under this authority. 
12 
(C) The Administrator shall establish doc13 
uments, legal covenants, and other required 
14 
documentation to protect the interests of the 
15 
United States. 
16 
(D) The Administrator shall establish a 
17 
process to receive and disburse funds to entities 
18 
under the authority established in this section. 
19 
(d) LIMITATIONS.— 
20 
(1) The Administrator shall ensure that entities 
21 


purchasing a guarantee under this section are using 

22 


such guarantee for the purpose of selling 504 first 

23 


lien position pools to third-party investors. 

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92 

1 


(2) If the Administrator finds that any such 

2 


guarantee was used for a purpose other than that 

3 


specified in paragraph (1), the Administrator shall— 

4 


(A) terminate such guarantee immediately, 

5 


(B) prohibit the purchaser of the guar6 
antee or its affiliates (within the meaning of the 
7 
regulations under 13 CFR 121.103) from using 
8 
the authority of this section in the future; and 
9 
(C) take any other actions the Adminis10 
trator, in consultation with the Attorney Gen11 
eral of the United States deems appropriate. 
12 
(e) OVERSIGHT.—The Administrator shall submit a 
13 
report to Congress not later than the third business day 
14 
of each month setting forth each of the following: 
15 
(1) The aggregate amount of guarantees ex16 
tended under this section during the proceeding 
17 
month. 
18 
(2) The aggregate amount of guarantees out19 
standing. 
20 
(3) Defaults and payments on defaults made 
21 


under this section. 

22 


(4) The identity of each purchaser of a guar


23 


antee found by the Administrator to have misused 

24 


guarantees under this section. 

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93 

1 


(5) Any other information the Administrator 

2 


deems necessary to fully inform Congress of undue 

3 


risk to the United States associated with the 

4 


issuance of guarantees under this section. 

5 


(f) DURATION OF PROGRAM.—The authority of this 
6 
section shall terminate on the date 2 years after the date 
7 
of enactment of this section. 
8 
(g) FUNDING.—Such sums as necessary are author9 
ized to be appropriated to carry out the provisions of this 
10 
section. 
11 
(h) BUDGET TREATMENT.—Nothing in this section 
12 
shall be construed to exempt any activity of the Adminis13 
trator under this section from the Federal Credit Reform 
14 
Act of 1990 (title V of the Congressional Budget and Im15 
poundment Control Act of 1974; 2 U.S.C. 661 and fol16 
lowing). 
17 
(i) EMERGENCY RULEMAKING AUTHORITY.—The 
18 
Administrator shall issue regulations under this section 
19 
within 15 days after the date of enactment of this section. 
20 
The notice requirements of section 553(b) of Title 5, 
21 
United States Code shall not apply to the promulgation 
22 
of such regulations. 

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1 
SEC. 6204. ECONOMIC RECOVERY PROGRAM. 
2 


(a) PURPOSE.—The purpose of this section is to es3 
tablish a new lending and refinancing authority within the 
4 
Small Business Administration. 
5 


(b) DEFINITIONS.—For purposes of this section: 
6 
(1) The term ‘‘Administrator’’ means the Ad7 
ministrator of the Small Business Administration. 
8 
(2) The term ‘‘small business concern’’ has the 
9 
same meaning as provided by section 3 of the Small 
10 
Business Act (15 U.S.C. 632). 
11 
(c) REFINANCING AUTHORITY.— 
12 
(1) IN GENERAL.—Upon application from a 
13 
lender (and with consent of the borrower), the Ad14 
ministrator may refinance existing non-Small Busi15 
ness Administration or Small Business Administra16 
tion loans (including loans under sections 7(a) and 
17 
504 of the Small Business Act) made to small busi18 
ness concerns. 
19 
(2) ELIGIBLE LOANS.—In order to be eligible 
20 
for refinancing under this section— 
21 


(A) the amount of the loan refinanced may 

22 


not exceed $10,000,000 and a first lien must be 

23 


conveyed to the Administrator; 

24 


(B) the lender shall offer to accept from 

25 


the Administrator as full repayment of the loan 

26 


an amount equal to less than 100 percent but 

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95 

1 


more than 85 percent of the remaining balance 

2 


of the principal of the loan; and 

3 


(C) the loan to be refinanced was made be


4 


fore the date of enactment of this Act and for 

5 


a purpose that would have been eligible for a 
6 
loan under any Small Business Administration 
7 
lending program. 
8 
(3) TERMS.—The term of the refinancing by 
9 
the Administrator under this section shall not be 
10 
less than remaining term on the loan that is refi11 
nanced but shall not exceed a term of 20 years. The 
12 
rate of interest on the loan refinanced under this 
13 
section shall be fixed by the Administrator at a level 
14 
that the Administrator determines will result in 
15 
manageable monthly payments for the borrower. 
16 
(4) LIMIT.—The Administrator may not refi17 
nance amounts under this section that are greater 
18 
than the amount the lender agrees to accept from 
19 
the Administrator as full repayment of the loan as 
20 
provided in paragraph (2)(B). 
21 


(d) UNDERWRITING AND OTHER LOAN SERVICES.— 

22 


(1) IN GENERAL.—The Administrator is au


23 


thorized to engage in underwriting, loan closing, 

24 


funding, and servicing of loans made to small busi


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96 

1 


ness concerns and to guarantee loans made by other 

2 


entities to small business concerns. 

3 


(2) APPLICATION PROCESS.—The Adminis


4 


trator shall by rule establish a process in which 

5 


small business concerns may submit applications to 
6 
the Administrator for the purposes of securing a 
7 
loan under this subsection. The Administrator shall, 
8 
at a minimum, collect all information necessary to 
9 
determine the creditworthiness and repayment abil10 
ity of the borrower. 
11 
(3) PARTICIPATION OF LENDERS.— 
12 
(A) The Administrator shall by rule estab13 
lish a process in which the Administrator makes 
14 
available loan applications and all accom15 
panying information to lenders for the purpose 
16 
of such lenders originating, underwriting, clos17 
ing, and servicing such loans. 
18 
(B) Lenders are eligible to receive loan ap19 
plications and accompanying information under 
20 
this paragraph if they participate in the pro21 


grams established in section 7(a) of the Small 

22 


Business Act (15 U.S.C. 636) or title V of the 

23 


Small Business Investment Act (15 U.S.C. 
24 
695). 

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97 

1 


(C) The Administrator shall first make 

2 


available such loan applications and accom


3 


panying information to lenders within 100 miles 

4 


of a loan applicant’s principal office. 

5 


(D) If a lender described in subparagraph 
6 
(C) does not agree to originate, underwrite, 
7 
close, and service such loans within 5 business 
8 
days of receiving the loan applications, the Ad9 
ministrator shall subsequently make available 
10 
such loan applications and accompanying infor11 
mation to lenders in the Preferred Lenders Pro12 
gram under section 7(a)(2)(C)(ii) of the Small 
13 
Business Act (15 U.S.C. 636). 
14 
(E) If a lender described in subparagraph 
15 
(C) or (D) does not agree to originate, under16 
write, close, and service such loans within 10 
17 
business days of receiving the loan applications, 
18 
the Administrator may originate, underwrite, 
19 
close, and service such loans as described in 
20 
paragraph (1) of this subsection. 
21 


(4) ASSET SALES.—The Administrator shall 

22 


offer to sell loans made or refinanced by the Admin


23 


istrator under this section. Such sales shall be made 

24 


through semi-annual public solicitation (in the Fed


25 


eral Register and in other media) of offers to pur


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98 

1 


chase. The Administrator may contract with vendors 

2 


for due diligence, asset valuation, and other services 

3 


related to such sales. The Administrator may not 

4 


sell any loan under this section for less than 90 per


5 


cent of the net present value of the loan, as deter6 
mined and certified by a qualified third-party. 
7 
(5) LOANS NOT SOLD.—The Administrator 
8 
shall maintain and service loans made by the Admin9 
istrator under this section that are not sold through 
10 
the asset sales under this section. 
11 
(e) DURATION.— The authority of this section shall 
12 
terminate on the date two years after the date on which 
13 
the program under this section becomes operational (as 
14 
determined by the Administrator). 
15 
(f) APPLICATION OF OTHER LAW.—Nothing in this 
16 
section shall be construed to exempt any activity of the 
17 
Administrator under this section from the Federal Credit 
18 
Reform Act of 1990 (title V of the Congressional Budget 
19 
and Impoundment Control Act of 1974; 2 U.S.C. 661 and 
20 
following). 
21 


(g) QUALIFIED LOANS.— 
22 
(1) ALIENS UNLAWFULLY PRESENT IN THE 
23 


UNITED STATES.—A loan to any concern shall not 

24 


be subject to this section if an individual who is an 

25 


alien unlawfully present in the United States— 

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99 

1 


(A) has an ownership interest in that con


2 


cern; or 

3 


(B) has an ownership interest in another 

4 


concern that itself has an ownership interest in 

5 


that concern. 
6 
(2) FIRMS IN VIOLATION OF IMMIGRATION 
7 
LAWS.—No loan shall be subject to this section if 
8 
the borrower is an entity found, based on a deter9 
mination by the Secretary of Homeland Security or 
10 
the Attorney General to have engaged in a pattern 
11 
or practice of hiring, recruiting or referring for a 
12 
fee, for employment in the United States an alien 
13 
knowing the person is an unauthorized alien. 
14 
(h) REPORTS.—The Administrator shall submit a re15 
port to Congress semi-annually setting forth the aggregate 
16 
amount of loans and geographic dispersion of such loans 
17 
made, underwritten, closed, funded, serviced, sold, guaran18 
teed, or held by the Administrator under the authority of 
19 
this section. Such report shall also set forth information 
20 
concerning loan defaults, prepayments, and recoveries re21 
lated to loans ,made under the authority of this section. 
22 


(i) AUTHORIZATION.—There are authorized to be ap23 
propriated such sums as may be necessary to carry out 
24 
this section. 

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100 


1 
SEC. 6205. STIMULUS FOR COMMUNITY DEVELOPMENT 
2 


LENDING. 

3 


(a) REFINANCING UNDER THE LOCAL DEVELOP4 
MENT BUSINESS LOAN PROGRAM.—Section 502 of the 
5 
Small Business Investment Act of 1958 (15 U.S.C. 696) 
6 
is amended by adding at the end the following: 
7 
‘‘(7) PERMISSIBLE DEBT REFINANCING.— 
8 
‘‘(A) IN GENERAL.—Any financing ap9 
proved under this title may include a limited 
10 
amount of debt refinancing. 
11 
‘‘(B) EXPANSIONS.—If the project involves 
12 
expansion of a small business concern which 
13 
has existing indebtedness collateralized by fixed 
14 
assets, any amount of existing indebtedness 
15 
that does not exceed 1/2 of the project cost of 
16 
the expansion may be refinanced and added to 
17 
the expansion cost, if— 
18 
‘‘(i) the proceeds of the indebtedness 
19 
were used to acquire land, including a 
20 
building situated thereon, to construct a 
21 


building thereon, or to purchase equip22 
ment; 
23 


‘‘(ii) the borrower has been current on 

24 


all payments due on the existing debt for 

25 


not less than 1 year preceding the date of 

26 


refinancing; and 

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101 

1 


‘‘(iii) the financing under section 504 

2 


will provide better terms or rate of interest 

3 


than exists on the debt at the time of refi


4 


nancing.’’. 

5 


(b) JOB CREATION GOALS.—Section 501(e)(1) and 
6 
section 501(e)(2) of the Small Business Investment Act 
7 
(15 U.S.C. 695) are each amended by striking ‘‘$50,000’’ 
8 
and inserting ‘‘$65,000’’. 
9 
SEC. 6206. INCREASING SMALL BUSINESS INVESTMENT. 
10 
(a) SIMPLIFIED MAXIMUM LEVERAGE LIMITS.—Sec11 
tion 303(b) of the Small Business Investment Act of 1958 
12 
(15 U.S.C. 683(b)) is amended— 
13 
(1) by striking so much of paragraph (2) as 
14 
precedes subparagraphs (C) and (D) and inserting 
15 
the following: 
16 
‘‘(2) MAXIMUM LEVERAGE.— 
17 
‘‘(A) IN GENERAL.—The maximum 
18 
amount of outstanding leverage made available 
19 
to any one company licensed under section 
20 
301(c) of this Act may not exceed the lesser 
21 
of— 
22 


‘‘(i) 300 percent of such company’s 

23 


private capital; or 

24 


‘‘(ii) $150,000,000. 

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102 

1 


‘‘(B) MULTIPLE LICENSES UNDER COM


2 


MON CONTROL.—The maximum amount of out


3 


standing leverage made available to two or more 

4 


companies licensed under section 301(c) of this 

5 


Act that are commonly controlled (as deter6 
mined by the Administrator) and not under 
7 
capital impairment may not exceed 
8 
$225,000,000.’’; and 
9 
(2) by striking paragraph (4). 
10 
(b) SIMPLIFIED AGGREGATE INVESTMENT LIMITA11 
TIONS.—Section 306(a) of the Small Business Investment 
12 
Act of 1958 (15 U.S.C. 686(a)) is amended to read as 
13 
follows: 
14 
‘‘(a) PERCENTAGE LIMITATION ON PRIVATE CAP15 
ITAL.—If any small business investment company has ob16 
tained financing from the Administrator and such financ17 
ing remains outstanding, the aggregate amount of securi18 
ties acquired and for which commitments may be issued 
19 
by such company under the provisions of this title for any 
20 
single enterprise shall not, without the approval of the Ad21 
ministrator, exceed 10 percent of the sum of— 
22 


‘‘(1) the private capital of such company; and 

23 


‘‘(2) the total amount of leverage projected by 

24 


the company in the company’s business plan that 

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103 

1 


was approved by the Administrator at the time of 

2 


the grant of the company’s license.’’. 

3 
SEC. 6207. GAO REPORT. 
4 


(a) REPORT.—Not later than 30 days after the enact5 
ment of this Act, the Comptroller General of the United 
6 
States shall report to the Congress on the actions of the 
7 
Administrator in implementing the authority established 
8 
in sections 6201 through 6206 of this Act. 
9 
(b) INCLUDED ITEM.—The report under this section 
10 
shall include a summary of the activity of the Adminis11 
trator under this section and an analysis of whether he 
12 
is accomplishing the purpose of increasing liquidity in the 
13 
secondary market for Small Business Administration 
14 
loans. 
15 
TITLE VII—HOMELAND 
16 
SECURITY 
17 
DEPARTMENT OF HOMELAND SECURITY 
18 
U.S. CUSTOMS AND BORDER PROTECTION 
19 
SALARIES AND EXPENSES 
20 
For an additional amount for ‘‘Salaries and Ex21 
penses’’, $100,000,000, for non-intrusive detection tech22 
nology to be deployed at sea ports of entry. 

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104 

1 


CONSTRUCTION 

2 


For an additional amount for ‘‘Construction’’, 
3 
$150,000,000, to repair and construct inspection facilities 
4 
at land border ports of entry. 
5 


TRANSPORTATION SECURITY ADMINISTRATION 
6 
AVIATION SECURITY 
7 
For an additional amount for ‘‘Aviation Security’’, 
8 
$500,000,000, for the purchase and installation of explo9 
sive detection systems and emerging checkpoint tech10 
nologies: Provided, That the Assistant Secretary of Home11 
land Security (Transportation Security Administration) 
12 
shall prioritize the award of these funds to accelerate the 
13 
installations at locations with completed design plans and 
14 
to expeditiously award new letters of intent. 
15 
COAST GUARD 
16 
ALTERATION OF BRIDGES 
17 
For an additional amount for ‘‘Alteration of 
18 
Bridges’’, $150,000,000, for alteration or removal of ob19 
structive bridges, as authorized by section 6 of the Tru20 
man-Hobbs Act (33 U.S.C. 516): Provided, That the 
21 
Coast Guard shall award these funds to those bridges that 
22 
are ready to proceed to construction. 

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105 

1 


FEDERAL EMERGENCY MANAGEMENT AGENCY 

2 


EMERGENCY FOOD AND SHELTER 

3 


For an additional amount for ‘‘Emergency Food and 
4 
Shelter’’, $200,000,000, to carry out the emergency food 
5 
and shelter program pursuant to title III of the McKin6 
ney-Vento Homeless Assistance Act (42 U.S.C. 11331 et 
7 
seq.): Provided, That for the purposes of this appropria8 
tion, the redistribution required by section 1104(b) shall 
9 
be carried out by the Federal Emergency Management 
10 
Agency and the National Board, who may reallocate and 
11 
obligate any funds that are unclaimed or returned to the 
12 
program: Provided further, That the amount set aside 
13 
from this appropriation pursuant to section 1106 of this 
14 
Act shall be 3.5 percent instead of the percentage specified 
15 
in such section. 
16 
GENERAL PROVISIONS, THIS TITLE 
17 
SEC. 7001. EXTENSION OF PROGRAMS. 
18 
Section 401(b) of the Illegal Immigration Reform and 
19 
Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a 
20 
note) is amended by striking ‘‘11-year period’’ and insert21 
ing ‘‘16-year period’’. 
22 
SEC. 7002. PROTECTION OF SOCIAL SECURITY ADMINIS23 


TRATION PROGRAMS. 

24 
(a) FUNDING UNDER AGREEMENT.—Effective for 
25 
fiscal years beginning on or after October 1, 2008, the 

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106 
1 
Commissioner of Social Security and the Secretary of 
2 
Homeland Security shall enter into and maintain an 
3 
agreement which shall— 
4 


(1) provide funds to the Commissioner for the 

5 


full costs of the responsibilities of the Commissioner 
6 
under section 404 of the Illegal Immigration Reform 
7 
and Immigrant Responsibility Act of 1996 (8 U.S.C. 
8 
1324a note), including (but not limited to)— 
9 
(A) acquiring, installing, and maintaining 
10 
technological equipment and systems necessary 
11 
for the fulfillment of the responsibilities of the 
12 
Commissioner under such section 404, but only 
13 
that portion of such costs that are attributable 
14 
exclusively to such responsibilities; and 
15 
(B) responding to individuals who contest 
16 
a tentative nonconfirmation provided by the 
17 
basic pilot confirmation system established 
18 
under such section; 
19 
(2) provide such funds quarterly in advance of 
20 
the applicable quarter based on estimating method21 


ology agreed to by the Commissioner and the Sec


22 


retary (except in such instances where the delayed 

23 


enactment of an annual appropriation may preclude 

24 


such quarterly payments); and 

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107 


1 


(3) require an annual accounting and reconcili


2 


ation of the actual costs incurred and the funds pro


3 


vided under the agreement, which shall be reviewed 

4 


by the Office of Inspector General of the Social Se


5 


curity Administration and the Department of Home6 
land Security. 
7 
(b) CONTINUATION OF EMPLOYMENT VERIFICATION 
8 
IN ABSENCE OF TIMELY AGREEMENT.—In any case in 
9 
which the agreement required under subsection (a) for any 
10 
fiscal year beginning on or after October 1, 2008, has not 
11 
been reached as of October 1 of such fiscal year, the latest 
12 
agreement between the Commissioner and the Secretary 
13 
of Homeland Security providing for funding to cover the 
14 
costs of the responsibilities of the Commissioner under 
15 
section 404 of the Illegal Immigration Reform and Immi16 
grant Responsibility Act of 1996 (8 U.S.C. 1324a note) 
17 
shall be deemed in effect on an interim basis for such fis18 
cal year until such time as an agreement required under 
19 
subsection (a) is subsequently reached, except that the 
20 
terms of such interim agreement shall be modified by the 
21 
Director of the Office of Management and Budget to ad22 
just for inflation and any increase or decrease in the vol23 
ume of requests under the basic pilot confirmation system. 
24 
In any case in which an interim agreement applies for any 
25 
fiscal year under this subsection, the Commissioner and 

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1 
the Secretary shall, not later than October 1 of such fiscal 
2 
year, notify the Committee on Ways and Means, the Com3 
mittee on the Judiciary, and the Committee on Appropria4 
tions of the House of Representatives and the Committee 
5 
on Finance, the Committee on the Judiciary, and the 
6 
Committee on Appropriations of the Senate of the failure 
7 
to reach the agreement required under subsection (a) for 
8 
such fiscal year. Until such time as the agreement re9 
quired under subsection (a) has been reached for such fis10 
cal year, the Commissioner and the Secretary shall, not 
11 
later than the end of each 90-day period after October 
12 
1 of such fiscal year, notify such Committees of the status 
13 
of negotiations between the Commissioner and the Sec14 
retary in order to reach such an agreement. 
15 
SEC. 7003. GAO STUDY OF BASIC PILOT CONFIRMATION 
16 
SYSTEM. 
17 
(a) IN GENERAL.—As soon as practicable after the 
18 
date of the enactment of this Act, the Comptroller General 
19 
of the United States shall conduct a study regarding erro20 
neous tentative nonconfirmations under the basic pilot 
21 
confirmation system established under section 404(a) of 
22 
the Illegal Immigration Reform and Immigrant Responsi23 
bility Act of 1996 (8 U.S.C. 1324a note). 

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1 
(b) MATTERS TO BE STUDIED.—In the study re2 
quired under subsection (a), the Comptroller General shall 
3 
determine and analyze— 
4 


(1) the causes of erroneous tentative noncon


5 


firmations under the basic pilot confirmation system; 
6 
(2) the processes by which such erroneous ten7 
tative nonconfirmations are remedied; and 
8 
(3) the effect of such erroneous tentative non9 
confirmations on individuals, employers, and Federal 
10 
agencies. 
11 
(c) REPORT.—Not later than 2 years after the date 
12 
of the enactment of this Act, the Comptroller General shall 
13 
submit the results of the study required under subsection 
14 
(a) to the Committee on Ways and Means and the Com15 
mittee on the Judiciary of the House of Representatives 
16 
and the Committee on Finance and the Committee on the 
17 
Judiciary of the Senate. 
18 
SEC. 7004. GAO STUDY OF EFFECTS OF BASIC PILOT PRO19 
GRAM ON SMALL ENTITIES. 
20 
(a) IN GENERAL.—Not later than 2 years after the 
21 
date of the enactment of this Act, the Comptroller General 
22 
of the United States shall submit to the Committees on 
23 
the Judiciary of the United States House of Representa24 
tives and the Senate a report containing the Comptroller 
25 
General’s analysis of the effects of the basic pilot program 

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110 
1 
described in section 403(a) of the Illegal Immigration Re2 
form and Immigrant Responsibility Act of 1996 (8 U.S.C. 
3 
1324a note) on small entities (as defined in section 601 
4 
of title 5, United States Code). The report shall detail— 
5 


(1) the costs of compliance with such program 
6 
on small entities; 
7 
(2) a description and an estimate of the number 
8 
of small entities enrolled and participating in such 
9 
program or an explanation of why no such estimate 
10 
is available; 
11 
(3) the projected reporting, recordkeeping and 
12 
other compliance requirements of such program on 
13 
small entities; 
14 
(4) factors that impact small entities’ enroll15 
ment and participation in such program, including 
16 
access to appropriate technology, geography, entity 
17 
size, and class of entity; and 
18 
(5) the steps, if any, the Secretary of Homeland 
19 
Security has taken to minimize the economic impact 
20 
of participating in such program on small entities. 
21 


(b) DIRECT AND INDIRECT EFFECTS.—The report 
22 
shall cover, and treat separately, direct effects (such as 
23 
wages, time, and fees spent on compliance) and indirect 
24 
effects (such as the effect on cash flow, sales, and competi25 
tiveness). 

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111 

1 


(c) SPECIFIC CONTENTS.—The report shall provide 
2 
specific and separate details with respect to— 
3 


(1) small businesses (as defined in section 601 

4 


of title 5, United States Code) with fewer than 50 

5 


employees; and 
6 
(2) small entities operating in States that have 
7 
mandated use of the basic pilot program. 
8 
TITLE VIII—INTERIOR AND 
9 
ENVIRONMENT 
10 
DEPARTMENT OF THE INTERIOR 
11 
BUREAU OF LAND MANAGEMENT 
12 
CONSTRUCTION 
13 
(INCLUDING TRANSFERS OF FUNDS) 
14 
For an additional amount for ‘‘Construction’’, 
15 
$325,000,000, for priority road, bridge, and trail repair 
16 
or decommissioning, critical deferred maintenance 
17 
projects, facilities construction and renovation, hazardous 
18 
fuels reduction, and remediation of abandoned mine or 
19 
well sites: Provided, That funds may be transferred to 
20 
other appropriate accounts of the Bureau of Land man21 
agement: Provided further, That the amount set aside 
22 
from this appropriation pursuant to section 1106 of this 
23 
Act shall be not more than 5 percent instead of the per24 
centage specified in such section. 

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112 

1 


UNITED STATES FISH AND WILDLIFE SERVICE 

2 


CONSTRUCTION 

3 


(INCLUDING TRANSFER OF FUNDS) 

4 


For an additional amount for ‘‘Construction’’, 
5 
$300,000,000, for priority road and bridge repair and re6 
placement, and critical deferred maintenance and improve7 
ment projects on National Wildlife Refuges, National Fish 
8 
Hatcheries, and other Service properties: Provided, That 
9 
funds may be transferred to ‘‘Resource Management’’: 
10 
Provided further, That the amount set aside from this ap11 
propriation pursuant to section 1106 of this Act shall be 
12 
not more than 5 percent instead of the percentage speci13 
fied in such section. 
14 
NATIONAL PARK SERVICE 
15 
CONSTRUCTION 
16 
(INCLUDING TRANSFER OF FUNDS) 
17 
For an additional amount for ‘‘Construction’’, 
18 
$1,700,000,000, for projects to address critical deferred 
19 
maintenance needs within the National Park System, in20 
cluding roads, bridges and trails, and for other critical in21 
frastructure projects: Provided, That funds may be trans22 
ferred to ‘‘Operation of the National Park System’’: Pro23 
vided further, That $200,000,000 of these funds shall be 
24 
for projects related to the preservation and repair of his25 
torical and cultural resources within the National Park 

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1 
System: Provided further, That the amount set aside from 
2 
this appropriation pursuant to section 1106 of this Act 
3 
shall be not more than 5 percent instead of the percentage 
4 
specified in such section. 
5 


NATIONAL MALL REVITALIZATION FUND 
6 
For construction, improvements, repair, or replace7 
ment of facilities related to the revitalization of National 
8 
Park Service assets on the National Mall in Washington, 
9 
DC, $200,000,000, of which $100,000,000 shall only be 
10 
made available to the extent that funds are matched by 
11 
non-Federal contributions: Provided, That the amount set 
12 
aside from this appropriation pursuant to section 1106 of 
13 
this Act shall be not more than 5 percent instead of the 
14 
percentage specified in such section. 
15 
CENTENNIAL CHALLENGE 
16 
To carry out provisions of section 814(g) of Public 
17 
Law 104–333 relating to challenge cost share agreements, 
18 
$100,000,000, for National Park Service Centennial Chal19 
lenge signature projects and programs: Provided, That not 
20 
less than 50 percent of the total cost of each project or 
21 
program is derived from non-Federal sources in the form 
22 
of donated cash, assets, in-kind services, or a pledge of 
23 
donation guaranteed by an irrevocable letter of credit: Pro24 
vided further, That the amount set aside from this appro25 
priation pursuant to section 1106 of this Act shall be not 

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1 
more than 5 percent instead of the percentage specified 
2 
in such section. 
3 


UNITED STATES GEOLOGICAL SURVEY 

4 


SURVEYS, INVESTIGATIONS, AND RESEARCH 

5 


For an additional amount for ‘‘Surveys, Investiga6 
tions, and Research’’, $200,000,000, for repair and res7 
toration of facilities; equipment replacement and upgrades 
8 
including stream gages, and seismic and volcano moni9 
toring systems; national map activities; and other critical 
10 
deferred maintenance and improvement projects: Pro11 
vided, That the amount set aside from this appropriation 
12 
pursuant to section 1106 of this Act shall be not more 
13 
than 5 percent instead of the percentage specified in such 
14 
section. 
15 
BUREAU OF INDIAN AFFAIRS 
16 
CONSTRUCTION 
17 
(INCLUDING TRANSFER OF FUNDS) 
18 
For an additional amount for ‘‘Construction’’, 
19 
$500,000,000, for priority repair and replacement of 
20 
schools, detention centers, roads, bridges, employee hous21 
ing, and critical deferred maintenance projects: Provided, 
22 
That not less than $250,000,000 shall be used for new 
23 
and replacement schools and detention centers: Provided 
24 
further, That funds may be transferred to ‘‘Operation of 
25 
Indian Programs’’: Provided further, That the amount set 

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1 
aside from this appropriation pursuant to section 1106 of 
2 
this Act shall be not more than 5 percent instead of the 
3 
percentage specified in such section. 
4 


ENVIRONMENTAL PROTECTION AGENCY 

5 


HAZARDOUS SUBSTANCE SUPERFUND 
6 
For an additional amount for ‘‘Hazardous Substance 
7 
Superfund’’, $800,000,000, which shall be used for the 
8 
Superfund Remedial program: Provided, That amounts 
9 
available by law from this appropriation for management 
10 
and administration shall take the place of the set-aside 
11 
under section 1106 of this Act. 
12 
LEAKING UNDERGROUND STORAGE TANK TRUST FUND 
13 
PROGRAM 
14 
For an additional amount for ‘‘Leaking Underground 
15 
Storage Tank Trust Fund Program’’, to carry out leaking 
16 
underground storage tank cleanup activities authorized by 
17 
subtitle I of the Solid Waste Disposal Act, $200,000,000, 
18 
which shall be used to carry out leaking underground stor19 
age tank cleanup activities authorized by section 9003(h) 
20 
of the Solid Waste Disposal Act, except that such funds 
21 
shall not be subject to the State matching requirements 
22 
in section 9003(h)(7)(B): Provided, That amounts avail23 
able by law from this appropriation for management and 
24 
administration shall take the place of the set-aside under 
25 
section 1106 of this Act. 

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1 


STATE AND TRIBAL ASSISTANCE GRANTS 

2 


For an additional amount for ‘‘State and Tribal As3 
sistance Grants’’, $8,400,000,000, which shall be used as 
4 
follows: 
5 


(1) $6,000,000,000 shall be for capitalization 
6 
grants for the Clean Water State Revolving Funds 
7 
under title VI of the Federal Water Pollution Con8 
trol Act (33 U.S.C. 1381 et seq.), except that such 
9 
funds shall not be subject to the State matching re10 
quirements in paragraphs (2) and (3) of section 
11 
602(b) of such Act or to the Federal cost share limi12 
tations in section 202 of such Act: Provided, That 
13 
the amount set aside from this appropriation pursu14 
ant to section 1106 of this Act shall be not more 
15 
than 2 percent instead of the percentage specified in 
16 
such section: Provided further, That, notwith17 
standing the limitation on amounts specified in sec18 
tion 518(c) of the Federal Water Pollution Control 
19 
Act, up to a total of 1.5 percent of such funds may 
20 
be reserved by the Administrator of the Environ21 


mental Protection Agency for grants under section 

22 


518(c) of such Act: Provided further, That the re


23 


quirements of section 513 of such Act shall apply to 

24 


the construction of treatment works carried out in 

25 


whole or in part with assistance made available 

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1 


under this heading by a Clean Water State Revolv


2 


ing Fund under title VI of such Act, or with assist


3 


ance made available under section 205(m) of such 
4 
Act, or both: Provided further, That, notwith5 


standing the requirements of section 603(d) of such 
6 
Act, each State shall use 50 percent of the amount 
7 
of the capitalization grant received by the State 
8 
under title VI of such Act to provide assistance, in 
9 
the form of additional subsidization, including for10 
giveness of principal, negative interest loans, and 
11 
grants, to municipalities (as defined in section 502 
12 
of such Act) for projects that are included on the 
13 
State’s priority list established under section 603(g) 
14 
of such Act, of which 80 percent shall be for projects 
15 
to benefit municipalities that meet affordability cri16 
teria as determined by the Governor of the State 
17 
and 20 percent shall be for projects to address 
18 
water-efficiency goals, address energy-efficiency 
19 
goals, mitigate stormwater runoff, or encourage en20 
vironmentally sensitive project planning, design, and 
21 


construction, to the extent that there are sufficient 

22 


project applications eligible for such assistance. 

23 


(2) $2,000,000,000 shall be for capitalization 

24 


grants for the Drinking Water State Revolving 

25 


Funds under section 1452 of the Safe Drinking 

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1 


Water Act (42 U.S.C. 300j-12), except that such 

2 


funds shall not be subject to the State matching re


3 


quirements of section 1452(e) of such Act: Provided, 

4 


That the amount set aside from this appropriation 

5 


pursuant to section 1106 of this Act shall be not 
6 
more than 2 percent instead of the percentage speci7 
fied in such section: Provided further, That section 
8 
1452(k) of the Safe Drinking Water Act shall not 
9 
apply to such funds: Provided further, That the re10 
quirements of section 1450(e) of such Act (42 
11 
U.S.C. 300j-9(e)) shall apply to the construction 
12 
carried out in whole or part with assistance made 
13 
available under this heading by a Drinking Water 
14 
State Revolving fund under section 1452 of such 
15 
Act: Provided further, That, notwithstanding the re16 
quirements of section 1452(a)(2) of such Act, each 
17 
State shall use 50 percent of the amount of the cap18 
italization grant received by the State under section 
19 
1452 of such Act to provide assistance, in the form 
20 
of additional subsidization, including forgiveness of 
21 


principal, negative interest loans, and grants, to mu


22 


nicipalities (as defined in section 1401 of such Act) 

23 


for projects that are included on the State’s priority 

24 


list established under section 1452(b)(3) of such 
25 
Act. 

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119 

1 


(3) $300,000,000 shall be for grants under title 

2 


VII, Subtitle G of the Energy Policy Act of 2005: 

3 


Provided, That the amount set aside from this ap


4 


propriation pursuant to section 1106 of this Act 

5 


shall be not more than 3 percent instead of the per6 
centage specified in such section. 
7 
(4) $100,000,000 shall be to carry out section 
8 
104(k) of the Comprehensive Environmental Re9 
sponse, Compensation, and Liability Act of 1980: 
10 
Provided, That the amount set aside from this ap11 
propriation pursuant to section 1106 of this Act 
12 
shall be not more than 3 percent instead of the per13 
centage specified in such section. 
14 
DEPARTMENT OF AGRICULTURE 
15 
FOREST SERVICE 
16 
CAPITAL IMPROVEMENT AND MAINTENANCE 
17 
(INCLUDING TRANSFER OF FUNDS) 
18 
For an additional amount for ‘‘Capital Improvement 
19 
and Maintenance’’, $650,000,000, for reconstruction, cap20 
ital improvement, decommissioning, and maintenance of 
21 
forest roads, bridges and trails; alternative energy tech22 
nologies, energy efficiency enhancements and deferred 
23 
maintenance at Federal facilities; and for remediation of 
24 
abandoned mine sites, removal of fish passage barriers, 
25 
and other critical habitat, forest improvement and water-

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1 
shed enhancement projects on Federal lands and waters: 
2 
Provided, That funds may be transferred to ‘‘National 
3 
Forest System’’: Provided further, That the amount set 
4 
aside from this appropriation pursuant to section 1106 of 
5 
this Act shall be not more than 5 percent instead of the 
6 
percentage specified in such section. 
7 
WILDLAND FIRE MANAGEMENT 
8 
(INCLUDING TRANSFERS OF FUNDS) 
9 
For an additional amount for ‘‘Wildland Fire Man10 
agement’’, $850,000,000, of which $300,000,000 is for 
11 
hazardous fuels reduction, forest health, wood to energy 
12 
grants and rehabilitation and restoration activities on 
13 
Federal lands, and of which $550,000,000 is for State fire 
14 
assistance hazardous fuels projects, volunteer fire assist15 
ance, cooperative forest health projects, city forest en16 
hancements, and wood to energy grants on State and pri17 
vate lands: Provided, That amounts in this paragraph may 
18 
be transferred to ‘‘State and Private Forestry’’ and ‘‘Na19 
tional Forest System’’: Provided further, That the amount 
20 
set aside from this appropriation pursuant to section 1106 
21 
of this Act shall be not more than 5 percent instead of 
22 
the percentage specified in such section. 

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121 

1 


DEPARTMENT OF HEALTH AND HUMAN 

2 


SERVICES 

3 


INDIAN HEALTH SERVICE 

4 


INDIAN HEALTH FACILITIES 

5 


For an additional amount for ‘‘Indian Health Facili6 
ties’’, $550,000,000, for priority health care facilities con7 
struction projects and deferred maintenance, and the pur8 
chase of equipment and related services, including but not 
9 
limited to health information technology: Provided, That 
10 
notwithstanding any other provision of law, the amounts 
11 
available under this paragraph shall be allocated at the 
12 
discretion of the Director of the Indian Health Service: 
13 
Provided further, That the amount set aside from this ap14 
propriation pursuant to section 1106 of this Act shall be 
15 
not more than 5 percent instead of the percentage speci16 
fied in such section. 
17 
OTHER RELATED AGENCIES 
18 
SMITHSONIAN INSTITUTION 
19 
FACILITIES CAPITAL 
20 
(INCLUDING TRANSFER OF FUNDS) 
21 


For an additional amount for ‘‘Facilities Capital’’, 
22 
$150,000,000, for deferred maintenance projects, and for 
23 
repair, revitalization, and alteration of facilities owned or 
24 
occupied by the Smithsonian Institution, by contract or 
25 
otherwise, as authorized by section 2 of the Act of August 

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1 
22, 1949 (63 Stat. 623): Provided, That funds may be 
2 
transferred to ‘‘Salaries and Expenses’’: Provided further, 
3 
That the amount set aside from this appropriation pursu4 
ant to section 1106 of this Act shall be not more than 
5 
5 percent instead of the percentage specified in such sec6 
tion. 
7 
NATIONAL FOUNDATION ON THE ARTS AND THE 
8 
HUMANITIES 
9 
NATIONAL ENDOWMENT FOR THE ARTS 
10 
GRANTS AND ADMINISTRATION 
11 
For an additional amount for ‘‘Grants and Adminis12 
tration’’, $50,000,000, to be distributed in direct grants 
13 
to fund arts projects and activities which preserve jobs in 
14 
the non-profit arts sector threatened by declines in philan15 
thropic and other support during the current economic 
16 
downturn: Provided, That 40 percent of such funds shall 
17 
be distributed to State arts agencies and regional arts or18 
ganizations in a manner similar to the agency’s current 
19 
practice and 60 percent of such funds shall be for competi20 
tively selected arts projects and activities according to sec21 
tions 2 and 5(c) of the National Foundation on the Arts 
22 
and Humanities Act of 1965 (20 U.S.C. 951, 954(c)): 
23 
Provided further, That matching requirements under sec24 
tion 5(e) of such Act shall be waived: Provided further, 
25 
That the amount set aside from this appropriation pursu


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1 
ant to section 1106 of this Act shall be not more than 
2 
5 percent instead of the percentage specified in such sec3 
tion. 
4 
TITLE IX—LABOR, HEALTH AND 
5 


HUMAN SERVICES, AND EDU6 
CATION 
7 
Subtitle A—Labor 
8 
DEPARTMENT OF LABOR 
9 
EMPLOYMENT AND TRAINING ADMINISTRATION 
10 
TRAINING AND EMPLOYMENT SERVICES 
11 
For an additional amount for ‘‘Training and Employ12 
ment Services’’ for activities under the Workforce Invest13 
ment Act of 1998 (‘‘WIA’’), $4,000,000,000, which shall 
14 
be available for obligation on the date of enactment of this 
15 
Act, as follows: 
16 
(1) $500,000,000 for grants to the States for 
17 
adult employment and training activities; 
18 
(2) $1,200,000,000 for grants to the States for 
19 
youth activities, including summer jobs for youth: 
20 
Provided, That the work readiness performance indi21 


cator described in section 136(b)(2)(A)(ii)(I) of the 

22 


WIA shall be the only measure of performance used 

23 


to assess the effectiveness of summer jobs for youth 

24 


provided with such funds: Provided further, That 

25 


with respect to the youth activities provided with 

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124 

1 


such funds, section 101(13)(A) of the WIA shall be 

2 


applied by substituting ‘‘age 24’’ for ‘‘age 21’’: Pro


3 


vided further, That no portion of the additional 

4 


funds provided herein shall be reserved to carry out 

5 


section 127(b)(1)(A) of the WIA: Provided further, 
6 
That for purposes of section 127(b)(1)(C)(iv) of the 
7 
WIA, such funds shall be allotted as if the total 
8 
amount of funding available for youth activities in 
9 
the fiscal year does not exceed $1,000,000,000; 
10 
(3) $1,000,000,000 for grants to the States for 
11 
dislocated worker employment and training activi12 
ties; 
13 
(4) $500,000,000 for the dislocated workers as14 
sistance national reserve to remain available for 
15 
Federal obligation through June 30, 2010: Provided, 
16 
That such funds shall be made available for grants 
17 
only to eligible entities that serve areas of high un18 
employment or high poverty and only for the pur19 
poses described in subsection 173(a)(1) of the WIA: 
20 
Provided further, That the Secretary of Labor shall 
21 


ensure that applicants for such funds demonstrate 

22 


how income support, child care, and other supportive 

23 


services necessary for an individual’s participation in 

24 


job training will be provided; 

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1 
(5) $50,000,000 for YouthBuild activities, 
2 


which shall remain available for Federal obligation 

3 


through June 30, 2010; and 

4 


(6) $750,000,000 for a program of competitive 

5 


grants for worker training and placement in high 
6 
growth and emerging industry sectors: Provided, 
7 
That $500,000,000 shall be for research, labor ex8 
change and job training projects that prepare work9 
ers for careers in the energy efficiency and renew10 
able energy industries specified in section 
11 
171(e)(1)(B)(ii) of the WIA (as amended by the 
12 
Green Jobs Act of 2007): Provided further, That in 
13 
awarding grants from those funds not designated in 
14 
the preceding proviso, the Secretary of Labor shall 
15 
give priority to projects that prepare workers for ca16 
reers in the health care sector: Provided further, 
17 
That the provisions of section 1103 of this Act shall 
18 
not apply to this appropriation: 
19 
Provided, That the additional funds provided to States 
20 
under this heading are not subject to section 191(a) of 
21 
the WIA: Provided further, That notwithstanding section 
22 
1106 of this Act, there shall be no amount set aside from 
23 
the appropriations made in subsections (1) through (3) 
24 
under this heading and the amount set aside for sub-

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1 
sections (4) through (6) shall be up to 1 percent instead 
2 
of the percentage specified in such section. 
3 


COMMUNITY SERVICE EMPLOYMENT FOR OLDER 

4 


AMERICANS 

5 


For an additional amount for ‘‘Community Service 
6 
Employment for Older Americans’’ to carry out title V of 
7 
the Older Americans Act of 1965, $120,000,000, which 
8 
shall be available for obligation on the date of enactment 
9 
of this Act: Provided, That funds shall be allotted within 
10 
30 days of such enactment to current grantees in propor11 
tion to their allotment in program year 2008. 
12 
STATE UNEMPLOYMENT INSURANCE AND EMPLOYMENT 
13 
SERVICE OPERATIONS 
14 
For an additional amount for ‘‘State Unemployment 
15 
Insurance and Employment Service Operations’’ for 
16 
grants to the States in accordance with section 6 of the 
17 
Wagner-Peyser Act, $500,000,000, which may be ex18 
pended from the Employment Security Administration Ac19 
count in the Unemployment Trust Fund, and which shall 
20 
be available for obligation on the date of enactment of this 
21 
Act: Provided, That such funds shall remain available to 
22 
the States through September 30, 2010: Provided further, 
23 
That, with respect to such funds, section 6(b)(1) of such 
24 
Act shall be applied by substituting ‘‘one-third’’ for ‘‘two25 
thirds’’ in subparagraph (A), with the remaining one-third 

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1 
of the sums to be allotted in accordance with section 
2 
132(b)(2)(B)(ii)(III) of the Workforce Investment Act of 
3 
1998: Provided further, That not less than $250,000,000 
4 
of the amount provided under this heading shall be used 
5 
by States for reemployment services for unemployment in6 
surance claimants (including the integrated Employment 
7 
Service and Unemployment Insurance information tech8 
nology required to identify and serve the needs of such 
9 
claimants): Provided further, That the Secretary of Labor 
10 
shall establish planning and reporting procedures nec11 
essary to provide oversight of funds used for reemploy12 
ment services. 
13 
DEPARTMENTAL MANAGEMENT 
14 
SALARIES AND EXPENSES 
15 
(INCLUDING TRANSFER OF FUNDS) 
16 
For an additional amount for ‘‘Departmental Man17 
agement’’, $80,000,000, for the enforcement of worker 
18 
protection laws and regulations, oversight, and coordina19 
tion activities related to the infrastructure and unemploy20 
ment insurance investments in this Act: Provided, That 
21 
the Secretary of Labor may transfer such sums as nec22 
essary to ‘‘Employment and Standards Administration’’, 
23 
‘‘Occupational Safety and Health Administration’’, and 
24 
‘‘Employment and Training Administration—Program 
25 
Administration’’ for enforcement, oversight, and coordina


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1 
tion activities: Provided further, That the provisions of sec2 
tion 1106 of this Act shall not apply to this appropriation. 
3 


OFFICE OF JOB CORPS 

4 


For an additional amount for ‘‘Office of Job Corps’’, 
5 
$300,000,000, for construction, rehabilitation and acquisi6 
tion of Job Corps Centers, which shall be available upon 
7 
the date of enactment of this Act and remain available 
8 
for obligation through June 30, 2010: Provided, That sec9 
tion 1552(a) of title 31, United States Code shall not 
10 
apply to up to 30 percent of such funds, if such funds 
11 
are used for a multi-year lease agreement that will result 
12 
in construction activities that can commence within 120 
13 
days of enactment of this Act: Provided further, That not14 
withstanding section 3324(a) of title 31, United States 
15 
Code, the funds referred to in the preceding proviso may 
16 
be used for advance, progress, and other payments: Pro17 
vided further, That the Secretary of Labor may transfer 
18 
up to 15 percent of such funds to meet the operational 
19 
needs of such centers, which may include the provision of 
20 
additional training for careers in the energy efficiency and 
21 
renewable energy industries: Provided further, That pri22 
ority should be given to activities that can commence 
23 
promptly following enactment and to those projects that 
24 
will create the greatest impact on the energy efficiency of 
25 
Job Corps facilities: Provided further, That the Secretary 

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1 
shall provide to the Committees on Appropriations of the 
2 
House of Representatives and the Senate a report on the 
3 
actual obligations, expenditures, and unobligated balances 
4 
for each activity funded under this heading not later than 
5 
September 30, 2009 and quarterly thereafter as long as 
6 
funding provided under this heading is available for obli7 
gation or expenditure. 
8 
GENERAL PROVISIONS, THIS SUBTITLE 
9 
SEC. 9101. ELIGIBLE EMPLOYEES IN THE RECREATIONAL 
10 
MARINE INDUSTRY. 
11 
Section 2(3)(F) of the Longshore and Harbor Work12 
ers’ Compensation Act (33 U.S.C. 902(3)(F)) is amend13 
ed— 
14 
(1) by striking ‘‘, repair, or dismantle’’; and 
15 
(2) by striking the semicolon and inserting ‘‘, or 
16 
individuals employed to repair any recreational ves17 
sel, or to dismantle any part of a recreational vessel 
18 
in connection with the repair of such vessel;’’. 
19 
Subtitle B—Health and Human 
20 
Services 
21 


DEPARTMENT OF HEALTH AND HUMAN 

22 


SERVICES 

23 


HEALTH RESOURCES AND SERVICES 

24 


For an additional amount for ‘‘Health Resources and 
25 
Services’’, $2,188,000,000 which shall be used as follows: 

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1 


(1) $500,000,000, of which $250,000,000 shall 

2 


not be available until October 1, 2009, shall be for 

3 


grants to health centers authorized under section 

4 


330 of the Public Health Service Act (‘‘PHS Act’’); 

5 


(2) $1,000,000,000 shall be available for ren6 
ovation and repair of health centers authorized 
7 
under section 330 of the PHS Act and for the acqui8 
sition by such centers of health information tech9 
nology systems: Provided, That the timeframe for 
10 
the award of grants pursuant to section 1103(b) of 
11 
this Act shall not be later than 180 days after the 
12 
date of enactment of this Act instead of the time13 
frame specified in such section; 
14 
(3) $88,000,000 shall be for fit-out and other 
15 
costs related to moving into a facility to be secured 
16 
through a competitive lease procurement to replace 
17 
or renovate a headquarters building for Public 
18 
Health Service agencies and other components of the 
19 
Department of Health and Human Services; and 
20 
(4) $600,000,000, of which $300,000,000 shall 
21 


not be available until October 1, 2009, shall be for 

22 


the training of nurses and primary care physicians 

23 


and dentists as authorized under titles VII and VIII 

24 


of the PHS Act, for the provision of health care per


25 


sonnel under the National Health Service Corps pro-

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131 

1 


gram authorized under title III of the PHS Act, and 

2 


for the patient navigator program authorized under 

3 


title III of the PHS Act. 

4 


CENTERS FOR DISEASE CONTROL AND PREVENTION 

5 


DISEASE CONTROL, RESEARCH, AND TRAINING 
6 
For an additional amount for ‘‘Disease Control, Re7 
search, and Training’’ for equipment, construction, and 
8 
renovation of facilities, including necessary repairs and 
9 
improvements to leased laboratories, $462,000,000: Pro10 
vided, That notwithstanding any other provision of law, 
11 
the Centers for Disease Control and Prevention may 
12 
award a single contract or related contracts for develop13 
ment and construction of facilities that collectively include 
14 
the full scope of the project: Provided further, That the 
15 
solicitation and contract shall contain the clause ‘‘avail16 
ability of funds’’ found at 48 CFR 52.232-18: Provided 
17 
further, That in accordance with applicable authorities, 
18 
policies, and procedures, the Centers for Disease Control 
19 
and Prevention shall acquire real property, and make any 
20 
necessary improvements thereon, to relocate and consoli21 
date property and facilities of the National Institute for 
22 
Occupational Safety and Health. 

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1 


NATIONAL INSTITUTES OF HEALTH 

2 


NATIONAL CENTER FOR RESEARCH RESOURCES 

3 


For an additional amount for ‘‘National Center for 
4 
Research Resources’’, $1,500,000,000 for grants or con5 
tracts under section 481A of the Public Health Service 
6 
Act to renovate or repair existing non-Federal research fa7 
cilities: Provided, That sections 481A(c)(1)(B)(ii), para8 
graphs (1), (3), and (4) of section 481A(e), and section 
9 
481B of such Act shall not apply to the use of such funds: 
10 
Provided further, That the references to ‘‘20 years’’ in sub11 
sections (c)(1)(B)(i) and (f) of section 481A of such Act 
12 
are deemed to be references to ‘‘10 years’’ for purposes 
13 
of using such funds: Provided further, That the National 
14 
Center for Research Resources may also use such funds 
15 
to provide, under the authority of section 301 and title 
16 
IV of such Act, shared instrumentation and other capital 
17 
research equipment to recipients of grants and contracts 
18 
under section 481A of such Act and other appropriate en19 
tities: Provided further, That the Director of the Center 
20 
shall provide to the Committees on Appropriations of the 
21 
House of Representatives and the Senate an annual report 
22 
indicating the number of institutions receiving awards of 
23 
a grant or contract under section 481A of such Act, the 
24 
proposed use of the funding, the average award size, a 
25 
list of grant or contract recipients, and the amount of each 

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1 
award: Provided further, That the Center, in obligating 
2 
such funds, shall require that each entity that applies for 
3 
a grant or contract under section 481A for any project 
4 
shall include in its application an assurance described in 
5 
section 1621(b)(1)(I) of the Public Health Service Act: 
6 
Provided further, That the Center shall give priority in the 
7 
award of grants and contracts under section 481A of such 
8 
Act to those applications that are expected to generate de9 
monstrable energy-saving or beneficial environmental ef10 
fects: Provided further, That the provisions of section 1103 
11 
of this Act shall not apply to the peer-reviewed grants 
12 
awarded under this heading. 
13 
OFFICE OF THE DIRECTOR 
14 
(INCLUDING TRANSFER OF FUNDS) 
15 
For an additional amount for ‘‘Office of the Direc16 
tor’’, $1,500,000,000, of which $750,000,000 shall not be 
17 
available until October 1, 2009: Provided, That such funds 
18 
shall be transferred to the Institutes and Centers of the 
19 
National Institutes of Health and to the Common Fund 
20 
established under section 402A(c)(1) of the Public Health 
21 
Service Act in proportion to the appropriations otherwise 
22 
made to such Institutes, Centers, and Common Fund for 
23 
fiscal year 2009: Provided further, That these funds shall 
24 
be used to support additional scientific research and shall 
25 
be merged with and be available for the same purposes 

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1 
as the appropriation or fund to which transferred: Pro2 
vided further, That this transfer authority is in addition 
3 
to any other transfer authority available to the National 
4 
Institutes of Health: Provided further, That none of these 
5 
funds may be transferred to ‘‘National Institutes of 
6 
Health—Buildings and Facilities’’, the Center for Sci7 
entific Review, the Center for Information Technology, the 
8 
Clinical Center, the Global Fund for HIV/AIDS, Tuber9 
culosis and Malaria, or the Office of the Director (except 
10 
for the transfer to the Common Fund): Provided further, 
11 
That the provisions of section 1103 of this Act shall not 
12 
apply to the peer-reviewed grants awarded under this 
13 
heading. 
14 
BUILDINGS AND FACILITIES 
15 
For an additional amount for ‘‘Buildings and Facili16 
ties’’, $500,000,000, to fund high priority repair and im17 
provement projects for National Institutes of Health facili18 
ties on the Bethesda, Maryland campus and other agency 
19 
locations. 
20 
AGENCY FOR HEALTHCARE RESEARCH AND QUALITY 
21 


HEALTHCARE RESEARCH AND QUALITY 

22 


(INCLUDING TRANSFER OF FUNDS) 

23 


For an additional amount for ‘‘Healthcare Research 
24 
and Quality’’ to carry out titles III and IX of the Public 
25 
Health Service Act, part A of title XI of the Social Secu


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1 
rity Act, and section 1013 of the Medicare Prescription 
2 
Drug, Improvement, and Modernization Act of 2003, 
3 
$700,000,000 for comparative effectiveness research: Pro4 
vided, That of the amount appropriated in this paragraph, 
5 
$400,000,000 shall be transferred to the Office of the Di6 
rector of the National Institutes of Health (‘‘Office of the 
7 
Director’’) to conduct or support comparative effectiveness 
8 
research: Provided further, That funds transferred to the 
9 
Office of the Director may be transferred to the national 
10 
research institutes and national centers of the National 
11 
Institutes of Health and to the Common Fund established 
12 
under section 402A(c)(1) of the Public Health Service Act: 
13 
Provided further, That this transfer authority is in addi14 
tion to any other transfer authority available to the Na15 
tional Institutes of Health: Provided further, That the pro16 
visions of section 1103 of this Act shall not apply to the 
17 
peer-reviewed grants awarded under this paragraph: Pro18 
vided further, That the amount set aside from this appro19 
priation pursuant to section 1106 of this Act shall be not 
20 
more than 1 percent instead of the percentage specified 
21 
in such section. 
22 


In addition, $400,000,000 shall be available for com23 
parative effectiveness research to be allocated at the dis24 
cretion of the Secretary of Health and Human Services 
25 
(‘‘Secretary’’): Provided, That the funding appropriated in 

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1 
this paragraph shall be used to accelerate the development 
2 
and dissemination of research assessing the comparative 
3 
effectiveness of health care treatments and strategies, in4 
cluding through efforts that: (1) conduct, support, or syn5 
thesize research that compares the clinical outcomes, ef6 
fectiveness, and appropriateness of items, services, and 
7 
procedures that are used to prevent, diagnose, or treat dis8 
eases, disorders, and other health conditions; and (2) en9 
courage the development and use of clinical registries, clin10 
ical data networks, and other forms of electronic health 
11 
data that can be used to generate or obtain outcomes data: 
12 
Provided further, That the Secretary shall enter into a 
13 
contract with the Institute of Medicine, for which no more 
14 
than $1,500,000 shall be made available from funds pro15 
vided in this paragraph, to produce and submit a report 
16 
to the Congress and the Secretary by not later than June 
17 
30, 2009, that includes recommendations on the national 
18 
priorities for comparative effectiveness research to be con19 
ducted or supported with the funds provided in this para20 
graph and that considers input from stakeholders: Pro21 
vided further, That the Secretary shall consider any rec22 
ommendations of the Federal Coordinating Council for 
23 
Comparative Effectiveness Research established by section 
24 
9201 of this Act and any recommendations included in 
25 
the Institute of Medicine report pursuant to the preceding 

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1 
proviso in designating activities to receive funds provided 
2 
in this paragraph and may make grants and contracts 
3 
with appropriate entities, which may include agencies 
4 
within the Department of Health and Human Services and 
5 
other governmental agencies, as well as private sector enti6 
ties, that have demonstrated experience and capacity to 
7 
achieve the goals of comparative effectiveness research: 
8 
Provided further, That the Secretary shall publish infor9 
mation on grants and contracts awarded with the funds 
10 
provided under this heading within a reasonable time of 
11 
the obligation of funds for such grants and contracts and 
12 
shall disseminate research findings from such grants and 
13 
contracts to clinicians, patients, and the general public, 
14 
as appropriate: Provided further, That, to the extent fea15 
sible, the Secretary shall ensure that the recipients of the 
16 
funds provided by this paragraph offer an opportunity for 
17 
public comment on the research: Provided further, That 
18 
the provisions of section 1103 of this Act shall not apply 
19 
to the peer-reviewed grants awarded under this paragraph: 
20 
Provided further, That the Secretary shall provide the 
21 
Committees on Appropriations of the House of Represent22 
atives and the Senate, the Committee on Energy and Com23 
merce and the Committee on Ways and Means of the 
24 
House of Representatives, and the Committee on Health, 
25 
Education, Labor, and Pensions and the Committee on Fi


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1 
nance of the Senate with an annual report on the research 
2 
conducted or supported through the funds provided under 
3 
this heading: Provided further, That the Secretary, jointly 
4 
with the Directors of the Agency for Healthcare Research 
5 
and Quality and the National Institutes of Health, shall 
6 
provide the Committees on Appropriations of the House 
7 
of Representatives and the Senate a fiscal year 2009 oper8 
ating plan for the funds appropriated under this heading 
9 
prior to making any Federal obligations of such funds in 
10 
fiscal year 2009, but not later than 90 days after the date 
11 
of enactment of this Act, and a fiscal year 2010 operating 
12 
plan for such funds prior to making any Federal obliga13 
tions of such funds in fiscal year 2010, but not later than 
14 
November 1, 2009, that detail the type of research being 
15 
conducted or supported, including the priority conditions 
16 
addressed; and specify the allocation of resources within 
17 
the Department of Health and Human Services: Provided 
18 
further, That the Secretary jointly with the Directors of 
19 
the Agency for Healthcare Research and Quality and the 
20 
National Institutes of Health, shall provide to the Com21 
mittees on Appropriations of the House of Representatives 
22 
and the Senate a report on the actual obligations, expendi23 
tures, and unobligated balances for each activity funded 
24 
under this heading not later than November 1, 2009, and 
25 
every 6 months thereafter as long as funding provided 

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1 
under this heading is available for obligation or expendi2 
ture. 
3 


ADMINISTRATION FOR CHILDREN AND FAMILIES 

4 


LOW-INCOME HOME ENERGY ASSISTANCE 

5 


For an additional amount for ‘‘Low-Income Home 
6 
Energy Assistance’’ for making payments under section 
7 
2602(b) and section 2602(d) of the Low-Income Home 
8 
Energy Assistance Act of 1981, $1,000,000,000, which 
9 
shall become available on October 1, 2009: Provided, That 
10 
the provisions of section 1106 of this Act shall not apply 
11 
to this appropriation. 
12 
PAYMENTS TO STATES FOR THE CHILD CARE AND 
13 
DEVELOPMENT BLOCK GRANT 
14 
For an additional amount for ‘‘Payments to States 
15 
for the Child Care and Development Block Grant’’, 
16 
$2,000,000,000, of which $1,000,000,000 shall become 
17 
available on October 1, 2009, which shall be used to sup18 
plement, not supplant State general revenue funds for 
19 
child care assistance for low-income families: Provided, 
20 
That the provisions of section 1106 of this Act shall not 
21 
apply to this appropriation. 
22 


CHILDREN AND FAMILIES SERVICES PROGRAMS 

23 


For an additional amount for ‘‘Children and Families 
24 
Services Programs’’, $3,200,000,000, which shall be used 
25 
as follows: 

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1 


(1) $1,000,000,000 for carrying out activities 

2 


under the Head Start Act, of which $500,000,000 

3 


shall become available on October 1, 2009; 

4 


(2) $1,100,000,000 for expansion of Early 

5 


Head Start programs, as described in section 645A 
6 
of the Head Start Act, of which $550,000,000 shall 
7 
become available on October 1, 2009: Provided, That 
8 
of the funds provided in this sentence, up to 10 per9 
cent shall be available for the provision of training 
10 
and technical assistance to such programs consistent 
11 
with section 645A(g)(2) of such Act, and up to 3 
12 
percent shall be available for monitoring the oper13 
ation of such programs consistent with section 641A 
14 
of such Act: Provided further, That the preceding 
15 
proviso shall apply to this appropriation in lieu of 
16 
the provisions of section 1106 of this Act: Provided 
17 
further, That the provisions of section 1103 of this 
18 
Act shall not apply to this appropriation; 
19 
(3) $1,000,000,000 for carrying out activities 
20 
under sections 674 through 679 of the Community 
21 


Services Block Grant Act, of which $500,000,000 

22 


shall become available on October 1, 2009, and of 

23 


which no part shall be subject to paragraphs (2) and 

24 


(3) of section 674(b) of such Act: Provided, That 

25 


notwithstanding section 675C(a)(1) of such Act, 100 

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1 


percent of the funds made available to a State from 

2 


this additional amount shall be distributed to eligible 

3 


entities as defined in section 673(1) of such Act: 

4 


Provided further, That for services furnished under 

5 


such Act during fiscal years 2009 and 2010, States 
6 
may apply the last sentence of section 673(2) of 
7 
such Act by substituting ‘‘200 percent’’ for ‘‘125 
8 
percent’’: Provided further, That the provisions of 
9 
section 1106 of this Act shall not apply to this ap10 
propriation; and 
11 
(4) $100,000,000 for carrying out activities 
12 
under section 1110 of the Social Security Act, of 
13 
which $50,000,000 shall become available on Octo14 
ber 1, 2009: Provided, That the Secretary of Health 
15 
and Human Services shall distribute such amount 
16 
under the Compassion Capital Fund to eligible faith17 
based and community organizations: Provided fur18 
ther, That the provisions of section 1106 of this Act 
19 
shall not apply to this appropriation. 
20 
ADMINISTRATION ON AGING 
21 


AGING SERVICES PROGRAMS 

22 


For an additional amount for ‘‘Aging Services Pro23 
grams’’ under section 311, and subparts 1 and 2 of part 
24 
C, of title III of the Older Americans Act of 1965, 
25 
$200,000,000, of which $100,000,000 shall become avail-

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1 
able on October 1, 2009: Provided, That the provisions 
2 
of section 1106 of this Act shall not apply to this appro3 
priation. 
4 


OFFICE OF THE SECRETARY 

5 


OFFICE OF THE NATIONAL COORDINATOR FOR HEALTH 
6 
INFORMATION TECHNOLOGY 
7 
(INCLUDING TRANSFER OF FUNDS) 
8 
For an additional amount for ‘‘Office of the National 
9 
Coordinator for Health Information Technology’’ to carry 
10 
out section 9202 of this Act, $2,000,000,000, to remain 
11 
available until expended: Provided, That of such amount, 
12 
the Secretary of Health and Human Services shall trans13 
fer $20,000,000 to the Director of the National Institute 
14 
of Standards and Technology in the Department of Com15 
merce for continued work on advancing health care infor16 
mation enterprise integration through activities such as 
17 
technical standards analysis and establishment of con18 
formance testing infrastructure, so long as such activities 
19 
are coordinated with the Office of the National Coordi20 
nator for Health Information Technology: Provided fur21 
ther, That the provisions of section 1103 of this Act shall 
22 
not apply to this appropriation: Provided further, That the 
23 
amount set aside from this appropriation pursuant to sec24 
tion 1106 of this Act shall be 0.25 percent instead of the 
25 
percentage specified in such section: Provided further, 

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1 
That funds available under this heading shall become 
2 
available for obligation only upon submission of an annual 
3 
operating plan by the Secretary to the Committees on Ap4 
propriations of the House of Representatives and the Sen5 
ate: Provided further, That the fiscal year 2009 operating 
6 
plan shall be provided not later than 90 days after enact7 
ment of this Act and that subsequent annual operating 
8 
plans shall be provided not later than November 1 of each 
9 
year: Provided further, That these operating plans shall 
10 
describe how expenditures are aligned with the specific ob11 
jectives, milestones, and metrics of the Federal Health In12 
formation Technology Strategic Plan, including any subse13 
quent updates to the Plan; the allocation of resources 
14 
within the Department of Health and Human Services and 
15 
other Federal agencies; and the identification of programs 
16 
and activities that are supported: Provided further, That 
17 
the Secretary shall provide to the Committees on Appro18 
priations of the House of Representatives and the Senate 
19 
a report on the actual obligations, expenditures, and unob20 
ligated balances for each major set of activities not later 
21 
than November 1, 2009, and every 6 months thereafter 
22 
as long as funding provided under this heading is available 
23 
for obligation or expenditure: Provided further, That the 
24 
Comptroller General of the United States shall review on 
25 
an annual basis the expenditures from funds provided 

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1 
under this heading to determine if such funds are used 
2 
in a manner consistent with the purpose and requirements 
3 
under this heading. 
4 


PUBLIC HEALTH AND SOCIAL SERVICES EMERGENCY 

5 


FUND 
6 
(INCLUDING TRANSFER OF FUNDS) 
7 
For an additional amount for ‘‘Public Health and So8 
cial Services Emergency Fund’’ to support advanced re9 
search and development pursuant to section 319L of the 
10 
Public Health Service Act, $430,000,000: Provided, That 
11 
the provisions of section 1103 of this Act shall not apply 
12 
to this appropriation. 
13 
For an additional amount for ‘‘Public Health and So14 
cial Services Emergency Fund’’ to prepare for and re15 
spond to an influenza pandemic, including the develop16 
ment and purchase of vaccine, antivirals, necessary med17 
ical supplies, diagnostics, and other surveillance tools, 
18 
$420,000,000: Provided, That the provisions of section 
19 
1103 of this Act shall not apply to this appropriation: Pro20 
vided further, That products purchased with these funds 
21 
may, at the discretion of the Secretary of Health and 
22 
Human Services (‘‘Secretary’’), be deposited in the Stra23 
tegic National Stockpile: Provided further, That notwith24 
standing section 496(b) of the Public Health Service Act, 
25 
funds may be used for the construction or renovation of 

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1 
privately owned facilities for the production of pandemic 
2 
influenza vaccine and other biologics, where the Secretary 
3 
finds such a contract necessary to secure sufficient sup4 
plies of such vaccines or biologics: Provided further, That 
5 
funds appropriated in this paragraph may be transferred 
6 
to other appropriation accounts of the Department of 
7 
Health and Human Services, as determined by the Sec8 
retary to be appropriate, to be used for the purposed speci9 
fied in this sentence. 
10 
For an additional amount for ‘‘Public Health and So11 
cial Services Emergency Fund’’ to improve information 
12 
technology security at the Department of Health and 
13 
Human Services, $50,000,000: Provided, That the Sec14 
retary shall prepare and submit a report by not later than 
15 
November 1, 2009, and by not later than 15 days after 
16 
the end of each month thereafter, updating the status of 
17 
actions taken and funds obligated in this and previous ap18 
propriations Acts for pandemic influenza preparedness 
19 
and response activities, biomedical advanced research and 
20 
development activities, Project BioShield, and Cyber Secu21 
rity. 
22 


PREVENTION AND WELLNESS FUND 

23 


(INCLUDING TRANSFER OF FUNDS) 

24 


For necessary expenses for a ‘‘Prevention and 
25 
Wellness Fund’’ to be administered through the Depart-

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1 
ment of Health and Human Services Office of the Sec2 
retary, $3,000,000,000: Provided, That the provisions of 
3 
section 1103 of this Act shall not apply to this appropria4 
tion: Provided further, That of the amount appropriated 
5 
under this heading not less than $2,350,000,000 shall be 
6 
transferred to the Centers for Disease Control and Pre7 
vention as follows: 
8 
(1) not less than $954,000,000 shall be used as 
9 
an additional amount to carry out the immunization 
10 
program authorized by section 317(a), (j), and 
11 
(k)(1) of the Public Health Service Act (‘‘section 
12 
317 immunization program’’), of which 
13 
$649,900,000 shall be available on October 1, 2009; 
14 
(2) not less than $296,000,000 shall be used as 
15 
an additional amount to carry out Part A of title 
16 
XIX of the Public Health Service Act, of which 
17 
$148,000,000 shall be available on October 1, 2009; 
18 
(3) not less than $545,000,000 shall be used as 
19 
an additional amount to carry out chronic disease, 
20 
health promotion, and genomics programs, as jointly 
21 


determined by the Secretary of Health and Human 

22 


Services (‘‘Secretary’’) and the Director of the Cen


23 


ters for Disease Control and Prevention (‘‘Direc24 
tor’’); 

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1 


(4) not less than $335,000,000 shall be used as 

2 


an additional amount to carry out domestic HIV/ 

3 


AIDS, viral hepatitis, sexually-transmitted diseases, 

4 


and tuberculosis prevention programs, as jointly de


5 


termined by the Secretary and the Director; 
6 
(5) not less than $60,000,000 shall be used as 
7 
an additional amount to carry out environmental 
8 
health programs, as jointly determined by the Sec9 
retary and the Director; 
10 
(6) not less than $50,000,000 shall be used as 
11 
an additional amount to carry out injury prevention 
12 
and control programs, as jointly determined by the 
13 
Secretary and the Director; 
14 
(7) not less than $30,000,000 shall be used as 
15 
an additional amount for public health workforce de16 
velopment activities, as jointly determined by the 
17 
Secretary and the Director; 
18 
(8) not less than $40,000,000 shall be used as 
19 
an additional amount for the National Institute for 
20 
Occupational Safety and Health to carry out re21 


search activities within the National Occupational 

22 


Research Agenda; and 

23 


(9) not less than $40,000,000 shall be used as 

24 


an additional amount for the National Center for 

25 


Health Statistics: 

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1 
Provided further, That of the amount appropriated under 
2 
this heading not less than $150,000,000 shall be available 
3 
for an additional amount to carry out activities to imple4 
ment a national action plan to prevent healthcare-associ5 
ated infections, as determined by the Secretary, of which 
6 
not less $50,000,000 shall be provided to States to imple7 
ment healthcare-associated infection reduction strategies: 
8 
Provided further, That of the amount appropriated under 
9 
this heading $500,000,000 shall be used to carry out evi10 
dence-based clinical and community-based prevention and 
11 
wellness strategies and public health workforce develop12 
ment activities authorized by the Public Health Service 
13 
Act, as determined by the Secretary, that deliver specific, 
14 
measurable health outcomes that address chronic and in15 
fectious disease rates and health disparities, which shall 
16 
include evidence-based interventions in obesity, diabetes, 
17 
heart disease, cancer, tobacco cessation and smoking pre18 
vention, and oral health, and which may be used for the 
19 
Healthy Communities program administered by the Cen20 
ters for Disease Control and Prevention and other existing 
21 
community-based programs administered by the Depart22 
ment of Health and Human Services: Provided further, 
23 
That funds appropriated in the preceding proviso may be 
24 
transferred to other appropriation accounts of the Depart25 
ment of Health and Human Services, as determined by 

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1 
the Secretary to be appropriate: Provided further, That the 
2 
Secretary shall, directly or through contracts with public 
3 
or private entities, provide for annual evaluations of pro4 
grams carried out with funds provided under this heading 
5 
in order to determine the quality and effectiveness of the 
6 
programs: Provided further, That the Secretary shall, not 
7 
later than 1 year after the date of enactment of this Act, 
8 
submit to the Committees on Appropriations of the House 
9 
of Representatives and the Senate, the Committee on En10 
ergy and Commerce of the House of Representatives, and 
11 
the Committee on Health, Education, Labor, and Pen12 
sions of the Senate, a report (1) summarizing the annual 
13 
evaluations of programs from the preceding proviso; and 
14 
(2) making recommendations concerning future spending 
15 
on prevention and wellness activities, including any rec16 
ommendations made by the United States Preventive 
17 
Services Task Force in the area of clinical preventive serv18 
ices and the Task Force on Community Preventive Serv19 
ices in the area of community preventive services: Provided 
20 
further, That the Secretary shall enter into a contract with 
21 
the Institute of Medicine, for which no more than 
22 
$1,500,000 shall be made available from funds provided 
23 
in this paragraph, to produce and submit a report to the 
24 
Congress and the Secretary by no later than 1 year after 
25 
the date of enactment of this Act that includes rec-

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1 
ommendations on the national priorities for clinical and 
2 
community-based prevention and wellness activities that 
3 
will have a positive impact in preventing illness or reduc4 
ing healthcare costs and that considers input from stake5 
holders: Provided further, That the Secretary shall provide 
6 
to the Committees on Appropriations of the House of Rep7 
resentatives and the Senate a fiscal year 2009 operating 
8 
plan for the Prevention and Wellness Fund prior to mak9 
ing any Federal obligations of funds provided under this 
10 
heading in fiscal year 2009 (excluding funds to carry out 
11 
the section 317 immunization program), but not later than 
12 
90 days after the date of enactment of this Act, and a 
13 
fiscal year 2010 operating plan for the Prevention and 
14 
Wellness Fund prior to making any Federal obligations 
15 
of funds provided under this heading in fiscal year 2010 
16 
(excluding funds to carry out the section 317 immuniza17 
tion program), but not later than November 1, 2009, that 
18 
indicate the prevention priorities to be addressed; provide 
19 
measurable goals for each prevention priority; detail the 
20 
allocation of resources within the Department of Health 
21 
and Human Services; and identify which programs or ac22 
tivities are supported, including descriptions of any new 
23 
programs or activities: Provided further, That the Sec24 
retary shall provide to the Committees on Appropriations 
25 
of the House of Representatives and the Senate a report 

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1 
on the actual obligations, expenditures, and unobligated 
2 
balances for each activity funded under this heading not 
3 
later than November 1, 2009 and every 6 months there4 
after as long as funding provided under this heading is 
5 
available for obligation or expenditure. 
6 
GENERAL PROVISIONS, THIS SUBTITLE 
7 
SEC. 9201. FEDERAL COORDINATING COUNCIL FOR COM8 
PARATIVE EFFECTIVENESS RESEARCH. 
9 
(a) ESTABLISHMENT.—There is hereby established a 
10 
Federal Coordinating Council for Comparative Effective11 
ness Research (in this section referred to as the ‘‘Coun12 
cil’’). 
13 
(b) PURPOSE; DUTIES.—The Council shall— 
14 
(1) assist the offices and agencies of the Fed15 
eral Government, including the Departments of 
16 
Health and Human Services, Veterans Affairs, and 
17 
Defense, and other Federal departments or agencies, 
18 
to coordinate the conduct or support of comparative 
19 
effectiveness and related health services research; 
20 
and 
21 


(2) advise the President and Congress on— 

22 


(A) strategies with respect to the infra


23 


structure needs of comparative effectiveness re


24 


search within the Federal Government; 

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1 


(B) appropriate organizational expendi


2 


tures for comparative effectiveness research by 

3 


relevant Federal departments and agencies; and 

4 


(C) opportunities to assure optimum co


5 


ordination of comparative effectiveness and re6 
lated health services research conducted or sup7 
ported by relevant Federal departments and 
8 
agencies, with the goal of reducing duplicative 
9 
efforts and encouraging coordinated and com10 
plementary use of resources. 
11 
(c) MEMBERSHIP.— 
12 
(1) NUMBER AND APPOINTMENT.—The Council 
13 
shall be composed of not more than 15 members, all 
14 
of whom are senior Federal officers or employees 
15 
with responsibility for health-related programs, ap16 
pointed by the President, acting through the Sec17 
retary of Health and Human Services (in this sec18 
tion referred to as the ‘‘Secretary’’). Members shall 
19 
first be appointed to the Council not later than 30 
20 
days after the date of the enactment of this Act. 
21 


(2) MEMBERS.— 

22 


(A) IN GENERAL.—The members of the 

23 


Council shall include one senior officer or em


24 


ployee from each of the following agencies: 

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1 


(i) The Agency for Healthcare Re


2 


search and Quality. 

3 


(ii) The Centers for Medicare and 

4 


Medicaid Services. 
5 
(iii) The National Institutes of 
6 
Health. 
7 
(iv) The Office of the National Coor8 
dinator for Health Information Tech9 
nology. 
10 
(v) The Food and Drug Administra11 
tion. 
12 
(vi) The Veterans Health Administra13 
tion within the Department of Veterans 
14 
Affairs. 
15 
(vii) The office within the Department 
16 
of Defense responsible for management of 
17 
the Department of Defense Military 
18 
Health Care System. 
19 
(B) QUALIFICATIONS.—At least half of the 
20 
members of the Council shall be physicians or 
21 


other experts with clinical expertise. 
22 
(3) CHAIRMAN; VICE CHAIRMAN.—The Sec23 


retary shall serve as Chairman of the Council and 

24 


shall designate a member to serve as Vice Chairman. 

25 


(d) REPORTS.— 

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1 


(1) INITIAL REPORT.—Not later than June 30, 

2 


2009, the Council shall submit to the President and 

3 


the Congress a report containing information de


4 


scribing Federal activities on comparative effective


5 


ness research and recommendations for additional 
6 
investments in such research conducted or supported 
7 
from funds made available for allotment by the Sec8 
retary for comparative effectiveness research in this 
9 
Act. 
10 
(2) ANNUAL REPORT.—The Council shall sub11 
mit to the President and Congress an annual report 
12 
regarding its activities and recommendations con13 
cerning the infrastructure needs, appropriate organi14 
zational expenditures and opportunities for better 
15 
coordination of comparative effectiveness research by 
16 
relevant Federal departments and agencies. 
17 
(e) STAFFING; SUPPORT.—From funds made avail18 
able for allotment by the Secretary for comparative effec19 
tiveness research in this Act, the Secretary shall make 
20 
available not more than 1 percent to the Council for staff 
21 
and administrative support. 
22 
SEC. 9202. INVESTMENT IN HEALTH INFORMATION TECH23 
NOLOGY. 
24 


(a) IN GENERAL.—The Secretary of Health and 
25 
Human Services shall invest in the infrastructure nec


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155 
1 
essary to allow for and promote the electronic exchange 
2 
and use of health information for each individual in the 
3 
United States consistent with the goals outlined in the 
4 
Strategic Plan developed by the Office of the National Co5 
ordinator for Health Information Technology. Such invest6 
ment shall include investment in at least the following: 
7 
(1) Health information technology architecture 
8 
that will support the nationwide electronic exchange 
9 
and use of health information in a secure, private, 
10 
and accurate manner, including connecting health 
11 
information exchanges, and which may include up12 
dating and implementing the infrastructure nec13 
essary within different agencies of the Department 
14 
of Health and Human Services to support the elec15 
tronic use and exchange of health information. 
16 
(2) Integration of health information tech17 
nology, including electronic medical records, into the 
18 
initial and ongoing training of health professionals 
19 
and others in the healthcare industry who would be 
20 
instrumental to improving the quality of healthcare 
21 


through the smooth and accurate electronic use and 

22 


exchange of health information as determined by the 

23 


Secretary. 

24 


(3) Training on and dissemination of informa


25 


tion on best practices to integrate health information 

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1 


technology, including electronic records, into a pro


2 


vider’s delivery of care, including community health 

3 


centers receiving assistance under section 330 of the 

4 


Public Health Service Act and providers partici


5 


pating in one or more of the programs under titles 
6 
XVIII, XIX, and XXI of the Social Security Act (re7 
lating to Medicare, Medicaid, and the State Chil8 
drens Health Insurance Program). 
9 
(4) Infrastructure and tools for the promotion 
10 
of telemedicine, including coordination among Fed11 
eral agencies in the promotion of telemedicine. 
12 
(5) Promotion of the interoperability of clinical 
13 
data repositories or registries. 
14 
The Secretary shall implement paragraph (3) in coordina15 
tion with State agencies administering the Medicaid pro16 
gram and the State Children’s Health Insurance Program. 
17 
(b) LIMITATION.—None of the funds appropriated to 
18 
carry out this section may be used to make significant in19 
vestments in, or provide significant funds for, the acquisi20 
tion of hardware or software or for the use of an electronic 
21 
health or medical record, or significant components there22 
of, unless such investments or funds are for certified prod23 
ucts that would permit the full and accurate electronic ex24 
change and use of health information in a medical record, 
25 
including standards for security, privacy, and quality im


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1 
provement functions adopted by the Office of the National 
2 
Coordinator for Health Information Technology. 
3 


(c) REPORT.—The Secretary shall annually report to 
4 
the Committees on Energy and Commerce, on Ways and 
5 
Means, on Science and Technology, and on Appropriations 
6 
of the House of Representatives and the Committees on 
7 
Finance, on Health, Education, Labor, and Pensions, and 
8 
on Appropriations of the Senate on the uses of these funds 
9 
and their impact on the infrastructure for the electronic 
10 
exchange and use of health information. 
11 
Subtitle C—Education 
12 
DEPARTMENT OF EDUCATION 
13 
EDUCATION FOR THE DISADVANTAGED 
14 
For an additional amount for ‘‘Education for the Dis15 
advantaged’’ to carry out title I of the Elementary and 
16 
Secondary Education Act of 1965 (‘‘ESEA’’), 
17 
$13,000,000,000: Provided, That $5,500,000,000 shall be 
18 
available for targeted grants under section 1125 of the 
19 
ESEA, of which $2,750,000,000 shall become available on 
20 
July 1, 2009, and shall remain available through Sep21 
tember 30, 2010, and $2,750,000,000 shall become avail22 
able on July 1, 2010, and shall remain available through 
23 
September 30, 2011: Provided further, That 
24 
$5,500,000,000 shall be available for education finance in25 
centive grants under section 1125A of the ESEA, of which 

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1 
$2,750,000,000 shall become available on July 1, 2009, 
2 
and shall remain available through September 30, 2010, 
3 
and $2,750,000,000 shall become available on July 1, 
4 
2010, and shall remain available through September 30, 
5 
2011: Provided further, That $2,000,000,000 shall be for 
6 
school improvement grants under section 1003(g) of the 
7 
ESEA, of which $1,000,000,000 shall become available on 
8 
July 1, 2009, and shall remain available through Sep9 
tember 30, 2010, and $1,000,000,000 shall become avail10 
able on July 1, 2010, and shall remain available through 
11 
September 30, 2011: Provided further, That the provisions 
12 
of section 1106 of this Act shall not apply to this appro13 
priation. 
14 
IMPACT AID 
15 
For an additional amount for ‘‘Impact Aid’’ to carry 
16 
out section 8007 of title VIII of the Elementary and Sec17 
ondary Education Act of 1965, $100,000,000, which shall 
18 
remain available through September 30, 2010: Provided, 
19 
That the amount set aside from this appropriation pursu20 
ant to section 1106 of this Act shall be 1 percent instead 
21 
of the percentage specified in such section. 
22 


SCHOOL IMPROVEMENT PROGRAMS 

23 


For an additional amount for ‘‘School Improvement 
24 
Programs’’ to carry out subpart 1, part D of title II of 
25 
the Elementary and Secondary Education Act of 1965 

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159 
1 
(‘‘ESEA’’), and subtitle B of title VII of the McKinney2 
Vento Homeless Assistance Act, $1,066,000,000: Pro3 
vided, That $1,000,000,000 shall be available for subpart 
4 
1, part D of title II of the ESEA, of which $500,000,000 
5 
shall become available on July 1, 2009, and shall remain 
6 
available through September 30, 2010, and $500,000,000 
7 
shall become available on July 1, 2010, and remain avail8 
able through September 30, 2011: Provided further, That 
9 
the provisions of section 1106 of this Act shall not apply 
10 
to these funds: Provided further, That $66,000,000 shall 
11 
be available for subtitle B of title VII of the McKinney12 
Vento Homeless Assistance Act, of which $33,000,000 
13 
shall become available on July 1, 2009, and shall remain 
14 
available through September 30, 2010, and $33,000,000 
15 
shall become available on July 1, 2010, and remain avail16 
able through September 30, 2011. 
17 
INNOVATION AND IMPROVEMENT 
18 
For an additional amount for ‘‘Innovation and Im19 
provement’’ to carry out subpart 1, part D and subpart 
20 
2, part B of title V of the Elementary and Secondary Edu21 
cation Act of 1965 (‘‘ESEA’’), $225,000,000: Provided, 
22 
That $200,000,000 shall be available for subpart 1, part 
23 
D of title V of the ESEA: Provided further, That these 
24 
funds shall be expended as directed in the fifth, sixth, and 
25 
seventh provisos under the heading ‘‘Innovation and Im


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1 
provement’’ in the Department of Education Appropria2 
tions Act, 2008: Provided further, That a portion of these 
3 
funds shall also be used for a rigorous national evaluation 
4 
by the Institute of Education Sciences, utilizing random5 
ized controlled methodology to the extent feasible, that as6 
sesses the impact of performance-based teacher and prin7 
cipal compensation systems supported by the funds pro8 
vided in this Act on teacher and principal recruitment and 
9 
retention in high-need schools and subjects: Provided fur10 
ther, That $25,000,000 shall be available for subpart 2, 
11 
part B of title V of the ESEA: Provided further, That the 
12 
amount set aside from this appropriation pursuant to sec13 
tion 1106 of this Act shall be 1 percent instead of the 
14 
percentage specified in such section. 
15 
SPECIAL EDUCATION 
16 
For an additional amount for ‘‘Special Education’’ 
17 
for carrying out section 611 and part C of the Individuals 
18 
with Disabilities Education Act (‘‘IDEA’’), 
19 
$13,600,000,000: Provided, That $13,000,000,000 shall 
20 
be available for section 611 of the IDEA, of which 
21 
$6,000,000,000 shall become available on July 1, 2009, 
22 
and remain available through September 30, 2010, and 
23 
$7,000,000,000 shall become available on July 1, 2010, 
24 
and remain available through September 30, 2011: Pro25 
vided further, That $600,000,000 shall be available for 

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1 
part C of the IDEA, of which $300,000,000 shall become 
2 
available on July 1, 2009, and remain available through 
3 
September 30, 2010, and $300,000,000 shall become 
4 
available on July 1, 2010, and remain available through 
5 
September 30, 2011: Provided further, That by July 1, 
6 
2009, the Secretary of Education shall reserve the amount 
7 
needed for grants under section 643(e) of the IDEA from 
8 
funds available for obligation on July 1, 2009, with any 
9 
remaining funds to be allocated in accordance with section 
10 
643(c) of the IDEA: Provided further, That by July 1, 
11 
2010, the Secretary shall reserve the amount needed for 
12 
grants under section 643(e) of the IDEA from funds avail13 
able for obligation on July 1, 2010, with any remaining 
14 
funds to be allocated in accordance with section 643(c) 
15 
of the IDEA: Provided further, That if every State, as de16 
fined by section 602(31) of the IDEA, reaches its max17 
imum allocation under section 611(d)(3)(B)(iii) of the 
18 
IDEA, and there are remaining funds, such funds shall 
19 
be proportionally allocated to each State subject to the 
20 
maximum amounts contained in section 611(a)(2) of the 
21 
IDEA: Provided further, That the provisions of section 
22 
1106 of this Act shall not apply to this appropriation. 
23 
REHABILITATION SERVICES AND DISABILITY RESEARCH 
24 


For an additional amount for ‘‘Rehabilitation Serv25 
ices and Disability Research’’ for providing grants to 

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1 
States to carry out the Vocational Rehabilitation Services 
2 
program under part B of title I and parts B and C of 
3 
chapter 1 and chapter 2 of title VII of the Rehabilitation 
4 
Act of 1973, $700,000,000: Provided, That $500,000,000 
5 
shall be available for part B of title I of the Rehabilitation 
6 
Act, of which $250,000,000 shall become available on Oc7 
tober 1, 2009: Provided further, That funds provided here8 
in shall not be considered in determining the amount re9 
quired to be appropriated under section 100(b)(1) of the 
10 
Rehabilitation Act of 1973 in any fiscal year: Provided fur11 
ther, That, notwithstanding section 7(14)(A), the Federal 
12 
share of the costs of vocational rehabilitation services pro13 
vided with the funds provided herein shall be 100 percent: 
14 
Provided further, That the provisions of section 1106 of 
15 
this Act shall not apply to these funds: Provided further, 
16 
That $200,000,000 shall be available for parts B and C 
17 
of chapter 1 and chapter 2 of title VII of the Rehabilita18 
tion Act, of which $100,000,000 shall become available on 
19 
October 1, 2009: Provided further, That $34,775,000 shall 
20 
be for State Grants, $114,581,000 shall be for inde21 
pendent living centers, and $50,644,000 shall be for serv22 
ices for older blind individuals. 
23 


STUDENT FINANCIAL ASSISTANCE 

24 


For an additional amount for ‘‘Student Financial As25 
sistance’’ to carry out subpart 1 of part A and part C 

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1 
of title IV of the Higher Education Act of 1965 (‘‘HEA’’), 
2 
$16,126,000,000, which shall remain available through 
3 
September 30, 2011: Provided, That $15,636,000,000 
4 
shall be available for subpart 1of part A of title IV of the 
5 
HEA: Provided further, That $490,000,000 shall be avail6 
able for part C of title IV of the HEA, of which 
7 
$245,000,000 shall become available on October 1, 2009: 
8 
Provided further, That the provisions of section 1106 of 
9 
this Act shall not apply to this appropriation. 
10 
The maximum Pell Grant for which a student shall 
11 
be eligible during award year 2009-2010 shall be $4,860. 
12 
STUDENT AID ADMINISTRATION 
13 
For an additional amount for ‘‘Student Aid Adminis14 
tration’’ to carry out part D of title I, and subparts 1, 
15 
3, and 4 of part A, and parts B, C, D, and E of title 
16 
IV of the Higher Education Act of 1965, $50,000,000, 
17 
which shall remain available through September 30, 2011: 
18 
Provided, That such amount shall also be available for an 
19 
independent audit of programs and activities authorized 
20 
under section 459A of such Act: Provided further, That 
21 
the provisions of section 1106 of this Act shall not apply 
22 
to this appropriation. 
23 


HIGHER EDUCATION 

24 


For an additional amount for ‘‘Higher Education’’ to 
25 
carry out part A of title II of the Higher Education Act 

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1 
of 1965, $100,000,000: Provided, That section 203(c)(1) 
2 
of such Act shall not apply to awards made with these 
3 
funds. 
4 


INSTITUTE OF EDUCATION SCIENCES 

5 


For an additional amount for Institute of Education 
6 
Sciences to carry out section 208 of the Educational Tech7 
nical Assistance Act, $250,000,000, which may be used 
8 
for Statewide data systems that include postsecondary and 
9 
workforce information, of which up to $5,000,000 may be 
10 
used for State data coordinators and for awards to public 
11 
or private organizations or agencies to improve data co12 
ordination: Provided, That the amount set aside from this 
13 
appropriation pursuant to section 1106 of this Act shall 
14 
be 1 percent instead of the percentage specified in such 
15 
section. 
16 
SCHOOL MODERNIZATION, RENOVATION, AND REPAIR 
17 
For carrying out section 9301 of this Act, 
18 
$14,000,000,000: Provided, That amount available under 
19 
section 9301 of this Act for administration and oversight 
20 
shall take the place of the set-aside under section 1106 
21 
of this Act. 
22 
HIGHER EDUCATION MODERNIZATION, RENOVATION, 
23 


AND REPAIR 

24 


For carrying out section 9302 of this Act, 
25 
$6,000,000,000: Provided, That amount available under 

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165 
1 
section 9302 of this Act for administration and oversight 
2 
shall take the place of the set-aside under section 1106 
3 
of this Act. 
4 


GENERAL PROVISIONS, THIS SUBTITLE 

5 
SEC. 9301. 21ST CENTURY GREEN HIGH-PERFORMING PUB6 
LIC SCHOOL FACILITIES. 
7 
(a) DEFINITIONS.—In this section: 
8 
(1) The term ‘‘Bureau-funded school’’ has the 
9 
meaning given to such term in section 1141 of the 
10 
Education Amendments of 1978 (25 U.S.C. 2021). 
11 
(2) The term ‘‘charter school’’ has the meaning 
12 
given such term in section 5210 of the Elementary 
13 
and Secondary Education Act of 1965. 
14 
(3) The term ‘‘local educational agency’’— 
15 
(A) has the meaning given to that term in 
16 
section 9101 of the Elementary and Secondary 
17 
Education Act of 1965, and shall also include 
18 
the Recovery School District of Louisiana and 
19 
the New Orleans Public Schools; and 
20 
(B) includes any public charter school that 
21 


constitutes a local educational agency under 

22 


State law. 

23 


(4) The term ‘‘outlying area’’— 

24 


(A) means the United States Virgin Is


25 


lands, Guam, American Samoa, and the Com


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166 

1 


monwealth of the Northern Mariana Islands; 
2 
and 
3 


(B) includes the freely associated states of 

4 


the Republic of the Marshall Islands, the Fed


5 


erated States of Micronesia, and the Republic 
6 
of Palau. 
7 
(5) The term ‘‘public school facilities’’ includes 
8 
charter schools. 
9 
(6) The term ‘‘State’’ means each of the 50 
10 
States, the District of Columbia, and the Common11 
wealth of Puerto Rico. 
12 
(7) The term ‘‘LEED Green Building Rating 
13 
System’’ means the United States Green Building 
14 
Council Leadership in Energy and Environmental 
15 
Design green building rating standard referred to as 
16 
the LEED Green Building Rating System. 
17 
(8) The term ‘‘Energy Star’’ means the Energy 
18 
Star program of the United States Department of 
19 
Energy and the United States Environmental Pro20 
tection Agency. 
21 


(9) The term ‘‘CHPS Criteria’’ means the 

22 


green building rating program developed by the Col


23 


laborative for High Performance Schools. 

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167 

1 


(10) The term ‘‘Green Globes’’ means the 

2 


Green Building Initiative environmental design and 

3 


rating system referred to as Green Globes. 

4 


(b) PURPOSE.—Grants under this section shall be for 
5 
the purpose of modernizing, renovating, or repairing pub6 
lic school facilities, based on their need for such improve7 
ments, to be safe, healthy, high-performing, and up-to8 
date technologically. 
9 
(c) ALLOCATION OF FUNDS.— 
10 
(1) RESERVATIONS.— 
11 
(A) IN GENERAL.—From the amount ap12 
propriated to carry out this section, the Sec13 
retary of Education shall reserve 1 percent of 
14 
such amount, consistent with the purpose de15 
scribed in subsection (b)— 
16 
(i) to provide assistance to the out17 
lying areas; and 
18 
(ii) for payments to the Secretary of 
19 
the Interior to provide assistance to Bu20 
reau-funded schools. 
21 
(B) ADMINISTRATION AND OVERSIGHT.— 
22 


The Secretary may, in addition, reserve up to 

23 


$6,000,000 of such amount for administration 

24 


and oversight of this section. 

25 


(2) ALLOCATION TO STATES.— 

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1 
(A) STATE-BY-STATE ALLOCATION.—Of 
2 


the amount appropriated to carry out this sec


3 


tion, and not reserved under paragraph (1), 

4 


each State shall be allocated an amount in pro


5 


portion to the amount received by all local edu6 
cational agencies in the State under part A of 
7 
title I of the Elementary and Secondary Edu8 
cation Act of 1965 for fiscal year 2008 relative 
9 
to the total amount received by all local edu10 
cational agencies in every State under such part 
11 
for such fiscal year. 
12 
(B) STATE ADMINISTRATION.—A State 
13 
may reserve up to 1 percent of its allocation 
14 
under subparagraph (A) to carry out its respon15 
sibilities under this section, including— 
16 
(i) providing technical assistance to 
17 
local educational agencies; 
18 
(ii) developing, within 6 months of re19 
ceiving its allocation under subparagraph 
20 
(A), a plan to develop a database that in21 


cludes an inventory of public school facili


22 


ties in the State and the modernization, 

23 


renovation, and repair needs of, energy use 

24 


by, and the carbon footprint of such 

25 


schools; and 

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169 

1 


(iii) developing a school energy effi


2 


ciency quality plan. 
3 
(C) GRANTS TO LOCAL EDUCATIONAL 
4 


AGENCIES.—From the amount allocated to a 

5 


State under subparagraph (A), each local edu6 
cational agency in the State that meets the re7 
quirements of section 1112(a) of the Elemen8 
tary and Secondary Education Act of 1965 
9 
shall receive an amount in proportion to the 
10 
amount received by such local educational agen11 
cy under part A of title I of that Act for fiscal 
12 
year 2008 relative to the total amount received 
13 
by all local educational agencies in the State 
14 
under such part for such fiscal year, except that 
15 
no local educational agency that received funds 
16 
under part A of title I of that Act for such fis17 
cal year shall receive a grant of less than 
18 
$5,000. 
19 
(D) SPECIAL RULE.—Section 1122(c)(3) 
20 
of the Elementary and Secondary Education 
21 


Act of 1965 shall not apply to subparagraph 

22 


(A) or (C). 

23 


(3) SPECIAL RULES.— 

24 


(A) DISTRIBUTIONS BY SECRETARY.—The 

25 


Secretary of Education shall make and dis-

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1 


tribute the reservations and allocations de


2 


scribed in paragraphs (1) and (2) not later than 

3 


30 days after the date of the enactment of this 
4 
Act. 
5 


(B) DISTRIBUTIONS BY STATES.—A State 
6 
shall make and distribute the allocations de7 
scribed in paragraph (2)(C) within 30 days of 
8 
receiving such funds from the Secretary. 
9 
(d) USE ITOR LOSE IT REQUIREMENTS.— 
10 
(1) DEADLINE FOR BINDING COMMITMENTS.— 
11 
Each local educational agency receiving funds under 
12 
this section shall enter into contracts or other bind13 
ing commitments not later than 1 year after the 
14 
date of the enactment of this Act (or not later than 
15 
9 months after such funds are awarded, if later) to 
16 
make use of 50 percent of such funds, and shall 
17 
enter into contracts or other binding commitments 
18 
not later than 2 years after the date of the enact19 
ment of this Act (or not later than 21 months after 
20 
such funds are awarded, if later) to make use of the 
21 


remaining funds. In the case of activities to be car


22 


ried out directly by a local educational agency (rath


23 


er than by contracts, subgrants, or other arrange


24 


ments with third parties), a certification by the 

25 


agency specifying the amounts, planned timing, and 

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171 

1 


purpose of such expenditures shall be deemed a 

2 


binding commitment for purposes of this subsection. 
3 
(2) REDISTRIBUTION OF UNCOMMITTED 
4 


FUNDS.—A State shall recover or deobligate any 

5 


funds not committed in accordance with paragraph 
6 
(1), and redistribute such funds to other local edu7 
cational agencies eligible under this section and able 
8 
to make use of such funds in a timely manner (in9 
cluding binding commitments within 120 days after 
10 
the reallocation). 
11 
(e) ALLOWABLE USES OF FUNDS.—A local edu12 
cational agency receiving a grant under this section shall 
13 
use the grant for modernization, renovation, or repair of 
14 
public school facilities, including— 
15 
(1) repairing, replacing, or installing roofs, in16 
cluding extensive, intensive or semi-intensive green 
17 
roofs, electrical wiring, plumbing systems, sewage 
18 
systems, lighting systems, or components of such 
19 
systems, windows, or doors, including security doors; 
20 
(2) repairing, replacing, or installing heating, 
21 


ventilation, air conditioning systems, or components 

22 


of such systems (including insulation), including in


23 


door air quality assessments; 

24 


(3) bringing public schools into compliance with 

25 


fire, health, and safety codes, including professional 

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172 

1 


installation of fire/life safety alarms, including mod


2 


ernizations, renovations, and repairs that ensure 

3 


that schools are prepared for emergencies, such as 

4 


improving building infrastructure to accommodate 

5 


security measures; 
6 
(4) modifications necessary to make public 
7 
school facilities accessible to comply with the Ameri8 
cans with Disabilities Act of 1990 (42 U.S.C. 12101 
9 
et seq.) and section 504 of the Rehabilitation Act of 
10 
1973 (29 U.S.C. 794), except that such modifica11 
tions shall not be the primary use of the grant; 
12 
(5) asbestos or polychlorinated biphenyls abate13 
ment or removal from public school facilities; 
14 
(6) implementation of measures designed to re15 
duce or eliminate human exposure to lead-based 
16 
paint hazards through methods including interim 
17 
controls, abatement, or a combination of each; 
18 
(7) implementation of measures designed to re19 
duce or eliminate human exposure to mold or mil20 
dew; 
21 


(8) upgrading or installing educational tech


22 


nology infrastructure to ensure that students have 

23 


access to up-to-date educational technology; 

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173 

1 


(9) technology activities that are carried out in 

2 


connection with school repair and renovation, includ


3 


ing— 

4 


(A) wiring; 

5 


(B) acquiring hardware and software; 
6 
(C) acquiring connectivity linkages and re7 
sources; and 
8 
(D) acquiring microwave, fiber optics, 
9 
cable, and satellite transmission equipment; 
10 
(10) modernization, renovation, or repair of 
11 
science and engineering laboratory facilities, librar12 
ies, and career and technical education facilities, in13 
cluding those related to energy efficiency and renew14 
able energy, and improvements to building infra15 
structure to accommodate bicycle and pedestrian ac16 
cess; 
17 
(11) renewable energy generation and heating 
18 
systems, including solar, photovoltaic, wind, geo19 
thermal, or biomass, including wood pellet, systems 
20 
or components of such systems; 
21 


(12) other modernization, renovation, or repair 

22 


of public school facilities to— 

23 


(A) improve teachers’ ability to teach and 

24 


students’ ability to learn; 

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174 

1 


(B) ensure the health and safety of stu


2 


dents and staff; 

3 


(C) make them more energy efficient; or 

4 


(D) reduce class size; and 

5 


(13) required environmental remediation related 
6 
to public school modernization, renovation, or repair 
7 
described in paragraphs (1) through (12). 
8 
(f) IMPERMISSIBLE USES OF FUNDS.—No funds re9 
ceived under this section may be used for— 
10 
(1) payment of maintenance costs; or 
11 
(2) stadiums or other facilities primarily used 
12 
for athletic contests or exhibitions or other events 
13 
for which admission is charged to the general public. 
14 
(g) SUPPLEMENT, NOT SUPPLANT.—A local edu15 
cational agency receiving a grant under this section shall 
16 
use such Federal funds only to supplement and not sup17 
plant the amount of funds that would, in the absence of 
18 
such Federal funds, be available for modernization, ren19 
ovation, or repair of public school facilities. 
20 
(h) PROHIBITION REGARDING STATE AID.—A State 
21 
shall not take into consideration payments under this sec22 
tion in determining the eligibility of any local educational 
23 
agency in that State for State aid, or the amount of State 
24 
aid, with respect to free public education of children. 

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175 

1 


(i) SPECIAL RULE ON CONTRACTING.—Each local 
2 
educational agency receiving a grant under this section 
3 
shall ensure that, if the agency carries out modernization, 
4 
renovation, or repair through a contract, the process for 
5 
any such contract ensures the maximum number of quali6 
fied bidders, including local, small, minority, and women-
7 
and veteran-owned businesses, through full and open com8 
petition. 
9 
(j) SPECIAL RULE ON USE OF IRON AND STEEL 
10 
PRODUCED IN THE UNITED STATES.— 
11 
(1) IN GENERAL.—A local educational agency 
12 
shall not obligate or expend funds received under 
13 
this section for a project for the modernization, ren14 
ovation, or repair of a public school facility unless all 
15 
of the iron and steel used in such project is pro16 
duced in the United States. 
17 
(2) EXCEPTIONS.—The provisions of paragraph 
18 
(1) shall not apply in any case in which the local 
19 
educational agency finds that— 
20 
(A) their application would be inconsistent 
21 


with the public interest; 

22 


(B) iron and steel are not produced in the 

23 


United States in sufficient and reasonably 

24 


available quantities and of a satisfactory qual25 
ity; or 

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176 

1 


(C) inclusion of iron and steel produced in 

2 


the United States will increase the cost of the 

3 


overall project contract by more than 25 per4 
cent. 
5 
(k) APPLICATION OF GEPA.—The grant program 
6 
under this section is an applicable program (as that term 
7 
is defined in section 400 of the General Education Provi8 
sions Act (20 U.S.C. 1221)) subject to section 439 of such 
9 
Act (20 U.S.C. 1232b). 
10 
(l) CHARTER SCHOOLS.—A local educational agency 
11 
receiving an allocation under this section shall use an equi12 
table portion of that allocation for allowable activities ben13 
efitting charter schools within its jurisdiction, as deter14 
mined based on the percentage of students from low-in15 
come families in the schools of the agency who are enrolled 
16 
in charter schools and on the needs of those schools as 
17 
determined by the agency. 
18 
(m) GREEN SCHOOLS.— 
19 
(1) IN GENERAL.—A local educational agency 
20 
shall use not less than 25 percent of the funds re21 


ceived under this section for public school mod


22 


ernization, renovation, or repairs that are certified, 

23 


verified, or consistent with any applicable provisions 
24 
of— 

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1 
2 
tem; 
3 
4 
5 
6 


177 

(A) the LEED Green Building Rating Sys


(B) Energy Star; 

(C) the CHPS Criteria; 

(D) Green Globes; or 

(E) an equivalent program adopted by the 

7 
State or another jurisdiction with authority over 

8 
the local educational agency. 

9 
(2) TECHNICAL ASSISTANCE.—The Secretary, 
10 
in consultation with the Secretary of Energy and the 
11 
Administrator of the Environmental Protection 
12 
Agency, shall provide outreach and technical assist13 
ance to States and school districts concerning the 
14 
best practices in school modernization, renovation, 
15 
and repair, including those related to student aca16 
demic achievement and student and staff health, en17 
ergy efficiency, and environmental protection. 
18 
(n) YOUTHBUILD PROGRAMS.—The Secretary of 
19 
Education, in consultation with the Secretary of Labor, 
20 
shall work with recipients of funds under this section to 
21 
promote appropriate opportunities for participants in a 
22 
YouthBuild program (as defined in section 173A of the 
23 
Workforce Investment Act of 1998 (29 U.S.C. 2918a)) to 
24 
gain employment experience on modernization, renovation, 
25 
and repair projects funded under this section. 

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178 

1 


(o) REPORTING.— 
2 
(1) REPORTS BY LOCAL EDUCATIONAL AGEN3 


CIES.—Local educational agencies receiving a grant 

4 


under this section shall compile, and submit to the 

5 


State educational agency (which shall compile and 
6 
submit such reports to the Secretary), a report de7 
scribing the projects for which such funds were used, 
8 
including— 
9 
(A) the number of public schools in the 
10 
agency, including the number of charter 
11 
schools; 
12 
(B) the total amount of funds received by 
13 
the local educational agency under this section 
14 
and the amount of such funds expended, includ15 
ing the amount expended for modernization, 
16 
renovation, and repair of charter schools; 
17 
(C) the number of public schools in the 
18 
agency with a metro-centric locale code of 41, 
19 
42, or 43 as determined by the National Center 
20 
for Education Statistics and the percentage of 
21 


funds received by the agency under this section 

22 


that were used for projects at such schools; 

23 


(D) the number of public schools in the 

24 


agency that are eligible for schoolwide programs 

25 


under section 1114 of the Elementary and Sec


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179 

1 


ondary Education Act of 1965 and the percent


2 


age of funds received by the agency under this 

3 


section that were used for projects at such 

4 


schools; 

5 


(E) the cost of each project, which, if any, 
6 
of the standards described in subsection (k)(1) 
7 
the project met, and any demonstrable or ex8 
pected academic, energy, or environmental ben9 
efits as a result of the project; 
10 
(F) if flooring was installed, whether— 
11 
(i) it was low- or no-VOC (Volatile 
12 
Organic Compounds) flooring; 
13 
(ii) it was made from sustainable ma14 
terials; and 
15 
(iii) use of flooring described in clause 
16 
(i) or (ii) was cost effective; and 
17 
(G) the total number and amount of con18 
tracts awarded, and the number and amount of 
19 
contracts awarded to local, small, minority20 
owned, women-owned, and veteran-owned busi21 
nesses. 
22 
(2) REPORTS BY SECRETARY.—Not later than 
23 


December 31, 2011, the Secretary of Education 

24 


shall submit to the Committees on Education and 

25 


Labor and Appropriations of the House of Rep-

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180 

1 


resentatives and the Committees on Health, Edu


2 


cation, Labor, and Pensions and Appropriations of 

3 


the Senate a report on grants made under this sec


4 


tion, including the information described in para


5 


graph (1), the types of modernization, renovation, 
6 
and repair funded, and the number of students im7 
pacted, including the number of students counted 
8 
under section 1113(a)(5) of the Elementary and 
9 
Secondary Education Act of 1965. 
10 
SEC. 9302. HIGHER EDUCATION MODERNIZATION, RENOVA11 
TION, AND REPAIR. 
12 
(a) PURPOSE.—Grants awarded under this section 
13 
shall be for the purpose of modernizing, renovating, and 
14 
repairing institution of higher education facilities that are 
15 
primarily used for instruction, research, or student hous16 
ing. 
17 
(b) GRANTS TO STATE HIGHER EDUCATION AGEN18 
CIES.— 
19 
(1) FORMULA.—From the amounts appro20 
priated to carry out this section, the Secretary of 
21 


Education shall allocate funds to State higher edu


22 


cation agencies based on the number of students at


23 


tending institutions of higher education, with the 

24 


State higher education agency in each State receiv


25 


ing an amount that is in proportion to the number 

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181 

1 


of full-time equivalent undergraduate students at


2 


tending institutions of higher education in such 

3 


State for the most recent fiscal year for which there 

4 


are data available, relative to the total number of 

5 


full-time equivalent undergraduate students attend6 
ing institutions of higher education in all States for 
7 
such fiscal year. 
8 
(2) APPLICATION.—To be eligible to receive an 
9 
allocation from the Secretary under paragraph (1), 
10 
a State higher education agency shall submit an ap11 
plication to the Secretary at such time and in such 
12 
manner as the Secretary may reasonably require. 
13 
(3) REALLOCATION.—Amounts allocated to a 
14 
State higher education agency under this section 
15 
that are not obligated by such agency within 6 
16 
months of the date the agency receives such 
17 
amounts shall be returned to the Secretary, and the 
18 
Secretary shall reallocate such amounts to State 
19 
higher education agencies in other States on the 
20 
same basis as the original allocations under para21 


graph (1)(B). 
22 
(4) ADMINISTRATION AND OVERSIGHT EX23 


PENSES.—From the amounts appropriated to carry 

24 


out this section, not more than $6,000,000 shall be 

25 


available to the Secretary for administrative and 

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182 

1 


oversight expenses related to carrying out this sec2 
tion. 
3 


(c) USE OF GRANTS BY STATE HIGHER EDUCATION 
4 
AGENCIES.— 
5 
(1) SUBGRANTS TO INSTITUTIONS OF HIGHER 
6 
EDUCATION.— 
7 
(A) IN GENERAL.—Except as provided in 
8 
paragraph (2), each State higher education 
9 
agency receiving an allocation under subsection 
10 
(b)(1) shall use the amount allocated to award 
11 
subgrants to institutions of higher education 
12 
within the State to carry out projects in accord13 
ance with subsection (d)(1). 
14 
(B) SUBGRANT AWARD ALLOCATION.—A 
15 
State higher education agency shall award sub16 
grants to institutions of higher education under 
17 
this section based on the demonstrated need of 
18 
each institution for facility modernization, ren19 
ovation, and repair. 
20 
(C) PRIORITY CONSIDERATIONS.—In 
21 


awarding subgrants under this section, each 

22 


State higher education agency shall give pri


23 


ority consideration to institutions of higher edu


24 


cation with any of the following characteristics: 

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183 

1 


(i) The institution is eligible for Fed


2 


eral assistance under title III or title V of 

3 


the Higher Education Act of 1965. 

4 


(ii) The institution was impacted by a 

5 


major disaster or emergency declared by 
6 
the President (as defined in section 102(2) 
7 
of the Robert T. Stafford Disaster Relief 
8 
and Emergency Assistance Act (42 U.S.C. 
9 
5122(2))), including an institution affected 
10 
by a Gulf hurricane disaster, as such term 
11 
is defined in section 824(g)(1) of the High12 
er Education Act of 1965 (20 U.S.C. 
13 
11611–3(g)(1)). 
14 
(iii) The institution demonstrates that 
15 
the proposed project or projects to be car16 
ried out with a subgrant under this section 
17 
will increase the energy efficiency of the in18 
stitution’s facilities and comply with the 
19 
LEED Green Building Rating System. 
20 
(2) ADMINISTRATIVE AND OVERSIGHT EX21 


PENSES.—Of the allocation amount received under 

22 


subsection (b)(1), a State higher education agency 

23 


may reserve not more than 5 percent of such 

24 


amount, or $500,000, whichever is less, for adminis


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184 

1 


trative and oversight expenses related to carrying 

2 


out this section. 

3 


(d) USE OF SUBGRANTS BY INSTITUTIONS OF HIGH4 
ER EDUCATION.— 
5 


(1) PERMISSIBLE USES OF FUNDS.—An institu6 
tion of higher education receiving a subgrant under 
7 
this section shall use such subgrant to modernize, 
8 
renovate, or repair facilities of the institution that 
9 
are primarily used for instruction, research, or stu10 
dent housing, which may include any of the fol11 
lowing: 
12 
(A) Repair, replacement, or installation of 
13 
roofs, electrical wiring, plumbing systems, sew14 
age systems, or lighting systems. 
15 
(B) Repair, replacement, or installation of 
16 
heating, ventilation, or air conditioning systems 
17 
(including insulation). 
18 
(C) Compliance with fire and safety codes, 
19 
including— 
20 
(i) professional installation of fire or 
21 


life safety alarms; and 

22 


(ii) modernizations, renovations, and 

23 


repairs that ensure that the institution’s 

24 


facilities are prepared for emergencies, 

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185 

1 


such as improving building infrastructure 

2 


to accommodate security measures. 

3 


(D) Retrofitting necessary to increase the 

4 


energy efficiency of the institution’s facilities. 

5 


(E) Renovations to the institution’s facili6 
ties necessary to comply with accessibility re7 
quirements in the Americans with Disabilities 
8 
Act of 1990 (42 U.S.C. 12101 et seq.) and sec9 
tion 504 of the Rehabilitation Act of 1973 (29 
10 
U.S.C. 794). 
11 
(F) Abatement or removal of asbestos from 
12 
the institution’s facilities. 
13 
(G) Modernization, renovation, and repair 
14 
relating to improving science and engineering 
15 
laboratories, libraries, and instructional facili16 
ties. 
17 
(H) Upgrading or installation of edu18 
cational technology infrastructure. 
19 
(I) Installation or upgrading of renewable 
20 
energy generation and heating systems, includ21 


ing solar, photovoltaic, wind, biomass (including 

22 


wood pellet), or geothermal systems, or compo


23 


nents of such systems. 

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186 

1 


(J) Other modernization, renovation, or re


2 


pair projects that are primarily for instruction, 

3 


research, or student housing. 

4 


(2) GREEN SCHOOL REQUIREMENT.—An insti


5 


tution of higher education receiving a subgrant 
6 
under this section shall use not less than 25 percent 
7 
of such subgrant to carry out projects for mod8 
ernization, renovation, or repair that are certified, 
9 
verified, or consistent with the applicable provisions 
10 
of— 
11 
(A) the LEED Green Building Rating Sys12 
tem; 
13 
(B) Energy Star; 
14 
(C) the CHPS Criteria; 
15 
(D) Green Globes; or 
16 
(E) an equivalent program adopted by the 
17 
State or the State higher education agency. 
18 
(3) PROHIBITED USES OF FUNDS.—No funds 
19 
awarded under this section may be used for— 
20 
(A) the maintenance of systems, equip21 


ment, or facilities, including maintenance asso


22 


ciated with any permissible uses of funds de


23 


scribed in paragraph (1); 

24 


(B) modernization, renovation, or repair of 

25 


stadiums or other facilities primarily used for 

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187 

1 


athletic contests or exhibitions or other events 

2 


for which admission is charged to the general 

3 


public; 

4 


(C) modernization, renovation, or repair of 

5 


facilities— 
6 
(i) used for sectarian instruction, reli7 
gious worship, or a school or department 
8 
of divinity; or 
9 
(ii) in which a substantial portion of 
10 
the functions of the facilities are subsumed 
11 
in a religious mission; or 
12 
(D) construction of new facilities. 
13 
(4) USE IT OR LOSE IT REQUIREMENTS.— 
14 
(A) DEADLINE FOR BINDING COMMIT15 
MENTS.—Each institution of higher education 
16 
receiving a subgrant under this section shall 
17 
enter into contracts or other binding commit18 
ments not later than 1 year after the date of 
19 
the enactment of this Act (or not later than 9 
20 
months after the subgrant is awarded, if later) 
21 


to make use of 50 percent of the funds award


22 


ed, and shall enter into contracts or other bind


23 


ing commitments not later than 2 years after 

24 


the date of the enactment of this Act (or not 

25 


later than 21 months after the subgrant is 

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188 

1 


awarded, if later) to make use of the remaining 

2 


funds. In the case of activities to be carried out 

3 


directly by an institution of higher education re


4 


ceiving such a subgrant (rather than by con


5 


tracts, subgrants, or other arrangements with 
6 
third parties), a certification by the institution 
7 
specifying the amounts, planned timing, and 
8 
purpose of such expenditures shall be deemed a 
9 
binding commitment for purposes of this sec10 
tion. 
11 
(B) REDISTRIBUTION OF UNCOMMITTED 
12 
FUNDS.—A State higher education agency shall 
13 
recover or deobligate any subgrant funds not 
14 
committed in accordance with subparagraph 
15 
(A), and redistribute such funds to other insti16 
tutions of higher education that are— 
17 
(i) eligible for subgrants under this 
18 
section; and 
19 
(ii) able to make use of such funds in 
20 
a timely manner (including binding com21 


mitments within 120 days after the re


22 


allocation). 

23 


(e) APPLICATION OF GEPA.—The grant program au24 
thorized in this section is an applicable program (as that 
25 
term is defined in section 400 of the General Education 

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189 
1 
Provisions Act (20 U.S.C. 1221)) subject to section 439 
2 
of such Act (20 U.S.C. 1232b). The Secretary shall, not3 
withstanding section 437 of such Act (20 U.S.C. 1232) 
4 
and section 553 of title 5, United States Code, establish 
5 
such program rules as may be necessary to implement 
6 
such grant program by notice in the Federal Register. 
7 
(f) REPORTING.— 
8 
(1) REPORTS BY INSTITUTIONS.—Not later 
9 
than September 30, 2011, each institution of higher 
10 
education receiving a subgrant under this section 
11 
shall submit to the State higher education agency 
12 
awarding such subgrant a report describing the 
13 
projects for which such subgrant was received, in14 
cluding— 
15 
(A) a description of each project carried 
16 
out, or planned to be carried out, with such 
17 
subgrant, including the types of modernization, 
18 
renovation, and repair to be completed by each 
19 
such project; 
20 
(B) the total amount of funds received by 
21 


the institution under this section and the 

22 


amount of such funds expended, as of the date 

23 


of the report, on the such projects; 

24 


(C) the actual or planned cost of each such 

25 


project and any demonstrable or expected aca


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1 


demic, energy, or environmental benefits result


2 


ing from such project; and 

3 


(D) the total number of contracts, and 

4 


amount of funding for such contracts, awarded 

5 


by the institution to carry out such projects, as 
6 
of the date of such report, including the num7 
ber of contracts, and amount of funding for 
8 
such contracts, awarded to local, small, minor9 
ity-owned, women-owned, and veteran-owned 
10 
businesses, as such terms are defined by the 
11 
Small Business Act. 
12 
(2) REPORTS BY STATES.—Not later than De13 
cember 31, 2011, each State higher education agen14 
cy receiving a grant under this section shall submit 
15 
to the Secretary a report containing a compilation of 
16 
all of the reports under paragraph (1) submitted to 
17 
the agency by institutions of higher education. 
18 
(3) REPORTS BY THE SECRETARY.—Not later 
19 
than March 31, 2012, the Secretary shall submit to 
20 
the Committee on Education and Labor in the 
21 


House of Representatives and the Committee on 

22 


Health, Education, Labor, and Pensions in the Sen


23 


ate and Committees on Appropriations of the House 

24 


of Representatives and the Senate a report on 

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1 


grants and subgrants made under this section, in


2 


cluding the information described in paragraph (1). 

3 


(g) DEFINITIONS.—In this section: 

4 


(1) CHPS CRITERIA.—The term ‘‘CHPS Cri


5 


teria’’ means the green building rating program de6 
veloped by the Collaborative for High Performance 
7 
Schools. 
8 
(2) ENERGY STAR.—The term ‘‘Energy Star’’ 
9 
means the Energy Star program of the United 
10 
States Department of Energy and the United States 
11 
Environmental Protection Agency. 
12 
(3) GREEN GLOBES.—The term ‘‘Green 
13 
Globes’’ means the Green Building Initiative envi14 
ronmental design and rating system referred to as 
15 
Green Globes. 
16 
(4) INSTITUTION OF HIGHER EDUCATION.—The 
17 
term ‘‘institution of higher education’’ has the 
18 
meaning given such term in section 101 of the High19 
er Education Act of 1965. 
20 
(5) LEED GREEN BUILDING RATING SYS21 


TEM.—The term ‘‘LEED Green Building Rating 

22 


System’’ means the United States Green Building 

23 


Council Leadership in Energy and Environmental 

24 


Design green building rating standard referred to as 

25 


the LEED Green Building Rating System. 

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1 


(6) SECRETARY.—The term ‘‘Secretary’’ means 

2 


the Secretary of Education. 

3 


(7) STATE.—The term ‘‘State’’ has the mean


4 


ing given such term in section 103 of the Higher 

5 


Education Act of 1965 (20 U.S.C. 1003). 
6 
(8) STATE HIGHER EDUCATION AGENCY.—The 
7 
term ‘‘State higher education agency’’ has the mean8 
ing given such term in section 103 of the Higher 
9 
Education Act of 1965 (20 U.S.C. 1003). 
10 
SEC. 9303. MANDATORY PELL GRANTS. 
11 
Section 401(b)(9)(A) of the Higher Education Act of 
12 
1965 (20 U.S.C. 1070a(b)(9)(A)) is amended— 
13 
(1) in clause (ii), by striking ‘‘$2,090,000,000’’ 
14 
and inserting ‘‘$2,733,000,000’’; and 
15 
(2) in clause (iii), by striking ‘‘$3,030,000,000’’ 
16 
and inserting ‘‘$3,861,000,000’’. 
17 
SEC. 9304. INCREASE STUDENT LOAN LIMITS. 
18 
(a) AMENDMENTS.—Section 428H(d) of the Higher 
19 
Education Act of 1965 (20 U.S.C. 1078-8(d)) is amend20 
ed— 
21 


(1) in paragraph (3)— 

22 


(A) in subparagraph (A), by striking 

23 


‘‘$2,000’’ and inserting ‘‘$4,000’’; and 

24 


(B) in subparagraph (B), by striking 

25 


‘‘$31,000’’ and inserting ‘‘$39,000’’; and 

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1 


(2) in paragraph (4)— 

2 


(A) in subparagraph (A)— 

3 


(i) in clause (i)(I) and clause (iii)(I), 

4 


by striking ‘‘$6,000’’ each place it appears 

5 


and inserting ‘‘$8,000’’; and 
6 
(ii) in clause (ii)(I) and clause 
7 
(iii)(II), by striking ‘‘$7,000’’ each place it 
8 
appears and inserting ‘‘$9,000’’; and 
9 
(B) in subparagraph (B), by striking 
10 
‘‘$57,500’’ and inserting ‘‘$65,500’’. 
11 
(b) EFFECTIVE DATE.—The amendments made by 
12 
this section shall be effective for loans first disbursed on 
13 
or after January 1, 2009. 
14 
SEC. 9305. STUDENT LENDER SPECIAL ALLOWANCE. 
15 
(a) TEMPORARY CALCULATION RULE.—Section 
16 
438(b)(2)(I) of the Higher Education Act of 1965 (20 
17 
U.S.C. 1087-1(b)(2)(I)) is amended by adding at the end 
18 
the following new clause: 
19 
‘‘(vii) TEMPORARY CALCULATION 
20 
RULE DURING UNSTABLE COMMERCIAL 
21 


PAPER MARKETS.— 
22 
‘‘(I) CALCULATION BASED ON 
23 


LIBOR.—For the calendar quarter be


24 


ginning on October 1, 2008, and end


25 


ing on December 31, 2008, in com


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194 

1 


puting the special allowance paid pur


2 


suant to this subsection with respect 

3 


to loans for which the first disburse


4 


ment is made on or after January 1, 

5 


2000, clause (i)(I) of this subpara6 
graph shall be applied by substituting 
7 
‘the rate that is the average rate of 
8 
the 3-month London Inter Bank Of9 
fered Rate (LIBOR) for United 
10 
States dollars in effect for each of the 
11 
days in such quarter as compiled and 
12 
released by the British Bankers Asso13 
ciation, minus 0.13 percent,’ for ‘the 
14 
average of the bond equivalent rates 
15 
of the quotes of the 3-month commer16 
cial paper (financial) rates in effect 
17 
for each of the days in such quarter 
18 
as reported by the Federal Reserve in 
19 
Publication H-15 (or its successor) for 
20 
such 3-month period’. 
21 
‘‘(II) PARTICIPATION INTER22 


ESTS.—Notwithstanding subclause (I) 

23 


of this clause, the special allowance 

24 


paid on any loan held by a lender that 
25 
has sold participation interests in 

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195 

1 


such loan to the Secretary shall be the 

2 


rate computed under this subpara


3 


graph without regard to subclause (I) 

4 


of this clause, unless the lender agrees 

5 


that the participant’s yield with re6 
spect to such participation interest is 
7 
to be calculated in accordance with 
8 
subclause (I) of this clause.’’. 
9 
(b) CONFORMING AMENDMENTS.—Section 
10 
438(b)(2)(I) of the Higher Education Act of 1965 (20 
11 
U.S.C. 1087-1(b)(2)(I)) is further amended— 
12 
(1) in clause (i)(II), by striking ‘‘such average 
13 
bond equivalent rate’’ and inserting ‘‘the rate deter14 
mined under subclause (I)’’; and 
15 
(2) in clause (v)(III), by striking ‘‘(iv), and 
16 
(vi)’’ and inserting ‘‘(iv), (vi), and (vii)’’. 
17 
Subtitle D—Related Agencies 
18 
CORPORATION FOR NATIONAL AND COMMUNITY SERVICE 
19 
OPERATING EXPENSES 
20 
For an additional amount for ‘‘Operating Expenses’’ 
21 
to carry out the Domestic Volunteer Service Act of 1973 
22 
and the National and Community Service Act of 1990 
23 
(‘‘1990 Act’’), $160,000,000, which shall be used to ex24 
pand existing AmeriCorps grants: Provided, That funds 
25 
made available under this heading may be used to provide 

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196 


1 
adjustments to awards made prior to September 30, 2010 
2 
in order to waive the match requirement authorized in sec3 
tion 121(e)(4) of part I of subtitle C of the 1990 Act, 
4 
if the Chief Executive Officer of the Corporation for Na5 
tional and Community Service (‘‘CEO’’) determines that 
6 
the grantee has reduced capacity to meet this requirement: 
7 
Provided further, That in addition to requirements identi8 
fied herein, funds provided under this heading shall be 
9 
subject to the terms and conditions under which funds are 
10 
appropriated in fiscal year 2009: Provided further, That 
11 
the CEO shall provide the Committees on Appropriations 
12 
of the House of Representatives and the Senate a fiscal 
13 
year 2009 operating plan for the funds appropriated under 
14 
this heading prior to making any Federal obligations of 
15 
such funds in fiscal year 2009, but not later than 90 days 
16 
after the date of enactment of this Act, and a fiscal year 
17 
2010 operating plan for such funds prior to making any 
18 
Federal obligations of such funds in fiscal year 2010, but 
19 
not later than November 1, 2009, that detail the allocation 
20 
of resources and the increased number of volunteers sup21 
ported by the AmeriCorps programs: Provided further, 
22 
That the CEO shall provide to the Committees on Appro23 
priations of the House of Representatives and the Senate 
24 
a report on the actual obligations, expenditures, and unob25 
ligated balances for each activity funded under this head-

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197 
1 
ing not later than November 1, 2009, and every 6 months 
2 
thereafter as long as funding provided under this heading 
3 
is available for obligation or expenditure. 
4 


NATIONAL SERVICE TRUST 

5 


(INCLUDING TRANSFER OF FUNDS) 
6 
For an additional amount for ‘‘National Service 
7 
Trust’’ established under subtitle D of title I of the Na8 
tional and Community Service Act of 1990 (‘‘1990 Act’’), 
9 
$40,000,000, which shall remain available until expended: 
10 
Provided, That the Corporation for National and Commu11 
nity Service may transfer additional funds from the 
12 
amount provided within ‘‘Operating Expenses’’ for grants 
13 
made under subtitle C of the 1990 Act to this appropria14 
tion upon determination that such transfer is necessary 
15 
to support the activities of national service participants 
16 
and after notice is transmitted to the Committees on Ap17 
propriations of the House of Representatives and the Sen18 
ate: Provided further, That the amount appropriated for 
19 
or transferred to the National Service Trust may be in20 
vested under section 145(b) of the 1990 Act without re21 
gard to the requirement to apportion funds under 31 
22 
U.S.C. 1513(b). 

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198 

1 


SOCIAL SECURITY ADMINISTRATION 

2 


LIMITATION ON ADMINISTRATIVE EXPENSES 

3 


(INCLUDING TRANSFER OF FUNDS) 

4 


For an additional amount for ‘‘Limitation on Admin5 
istrative Expenses’’, $900,000,000, which shall be used as 
6 
follows: 
7 
(1) $400,000,000 for the construction and asso8 
ciated costs to establish a new National Computer 
9 
Center, which may include lease or purchase of real 
10 
property: Provided, That the construction plan and 
11 
site selection for such center shall be subject to re12 
view and approval by the Office of Management and 
13 
Budget: Provided further, That the Committees on 
14 
Appropriations of the House of Representatives and 
15 
the Senate shall be notified 15 days in advance of 
16 
the lease or purchase of such site: Provided further, 
17 
That such center shall continue to be a government18 
operated facility; and 
19 
(2) $500,000,000 for processing disability and 
20 
retirement workloads: Provided, That up to 
21 


$40,000,000 may be used by the Commissioner of 

22 


Social Security for health information technology re


23 


search and activities to facilitate the adoption of 

24 


electronic medical records in disability claims, in


25 


cluding the transfer of funds to ‘‘Supplemental Se-

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199 

1 


curity Income Program’’ to carry out activities 

2 


under section 1110 of the Social Security Act. 

3 
TITLE X—MILITARY CONSTRUC


4 


TION AND VETERANS AF


5 


FAIRS 

6 
DEPARTMENT OF DEFENSE 

7 
MILITARY CONSTRUCTION, ARMY 

8 
For an additional amount for ‘‘Military Construction, 

9 
Army’’, $920,000,000: Provided, That notwithstanding 
10 
any other provision of law, such funds may be obligated 
11 
and expended to carry out planning and design and mili12 
tary construction projects in the United States not other13 
wise authorized by law: Provided further, That of the 
14 
amount provided under this heading, $600,000,000 shall 
15 
be for training and recruit troop housing, $220,000,000 
16 
shall be for permanent party troop housing, and 
17 
$100,000,000 shall be for child development centers: Pro18 
vided further, That not later than 30 days after the date 
19 
of enactment of this Act, the Secretary of Defense shall 
20 
submit to the Committees on Appropriations of the House 
21 
of Representatives and the Senate an expenditure plan for 
22 
funds provided under this heading. 
23 
MILITARY CONSTRUCTION, NAVY AND MARINE CORPS 
24 


For an additional amount for ‘‘Military Construction, 
25 
Navy and Marine Corps’’, $350,000,000: Provided, That 

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1 
notwithstanding any other provision of law, such funds 
2 
may be obligated and expended to carry out planning and 
3 
design and military construction projects in the United 
4 
States not otherwise authorized by law: Provided further, 
5 
That of the amount provided under this heading, 
6 
$170,000,000 shall be for sailor and marine housing and 
7 
$180,000,000 shall be for child development centers: Pro8 
vided further, That not later than 30 days after the date 
9 
of enactment of this Act, the Secretary of Defense shall 
10 
submit to the Committees on Appropriations of the House 
11 
of Representatives and the Senate an expenditure plan for 
12 
funds provided under this heading. 
13 
MILITARY CONSTRUCTION, AIR FORCE 
14 
For an additional amount for ‘‘Military Construction, 
15 
Air Force’’, $280,000,000: Provided, That notwith16 
standing any other provision of law, such funds may be 
17 
obligated and expended to carry out planning and design 
18 
and military construction projects in the United States not 
19 
otherwise authorized by law: Provided further, That of the 
20 
amount provided under this heading, $200,000,000 shall 
21 
be for airmen housing and $80,000,000 shall be for child 
22 
development centers: Provided further, That not later than 
23 
30 days after the date of enactment of this Act, the Sec24 
retary of Defense shall submit to the Committees on Ap25 
propriations of the House of Representatives and the Sen


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201 
1 
ate an expenditure plan for funds provided under this 
2 
heading. 
3 


MILITARY CONSTRUCTION, DEFENSE-WIDE 

4 


For an additional amount for ‘‘Military Construction, 
5 
Defense-Wide’’, $3,750,000,000, for the construction of 
6 
hospitals and ambulatory surgery centers: Provided, That 
7 
notwithstanding any other provision of law, such funds 
8 
may be obligated and expended to carry out planning and 
9 
design and military construction projects in the United 
10 
States not otherwise authorized by law: Provided further, 
11 
That not later than 30 days after the date of enactment 
12 
of this Act, the Secretary of Defense shall submit to the 
13 
Committees on Appropriations of the House of Represent14 
atives and the Senate an expenditure plan for funds pro15 
vided under this heading. 
16 
MILITARY CONSTRUCTION, ARMY NATIONAL GUARD 
17 
For an additional amount for ‘‘Military Construction, 
18 
Army National Guard’’, $140,000,000: Provided, That 
19 
notwithstanding any other provision of law, such funds 
20 
may be obligated and expended to carry out planning and 
21 
design and military construction projects in the United 
22 
States not otherwise authorized by law: Provided further, 
23 
That not later than 30 days after the date of enactment 
24 
of this Act, the Secretary of Defense shall submit to the 
25 
Committees on Appropriations of the House of Represent-

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1 
atives and the Senate an expenditure plan for funds pro2 
vided under this heading. 
3 


MILITARY CONSTRUCTION, AIR NATIONAL GUARD 

4 


For an additional amount for ‘‘Military Construction, 
5 
Air National Guard’’, $70,000,000: Provided, That not6 
withstanding any other provision of law, such funds may 
7 
be obligated and expended to carry out planning and de8 
sign and military construction projects in the United 
9 
States not otherwise authorized by law: Provided further, 
10 
That not later than 30 days after the date of enactment 
11 
of this Act, the Secretary of Defense shall submit to the 
12 
Committees on Appropriations of the House of Represent13 
atives and the Senate an expenditure plan for funds pro14 
vided under this heading. 
15 
MILITARY CONSTRUCTION, ARMY RESERVE 
16 
For an additional amount for ‘‘Military Construction, 
17 
Army Reserve’’, $100,000,000: Provided, That notwith18 
standing any other provision of law, such funds may be 
19 
obligated and expended to carry out planning and design 
20 
and military construction projects in the United States not 
21 
otherwise authorized by law: Provided further, That not 
22 
later than 30 days after the date of enactment of this Act, 
23 
the Secretary of Defense shall submit to the Committees 
24 
on Appropriations of the House of Representatives and the 

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1 
Senate an expenditure plan for funds provided under this 
2 
heading. 
3 


MILITARY CONSTRUCTION, NAVY RESERVE 

4 


For an additional amount for ‘‘Military Construction, 
5 
Navy Reserve’’, $30,000,000: Provided, That notwith6 
standing any other provision of law, such funds may be 
7 
obligated and expended to carry out planning and design 
8 
and military construction projects in the United States not 
9 
otherwise authorized by law: Provided further, That not 
10 
later than 30 days after the date of enactment of this Act, 
11 
the Secretary of Defense shall submit to the Committees 
12 
on Appropriations of the House of Representatives and the 
13 
Senate an expenditure plan for funds provided under this 
14 
heading. 
15 
MILITARY CONSTRUCTION, AIR FORCE RESERVE 
16 
For an additional amount for ‘‘Military Construction, 
17 
Air Force Reserve’’, $60,000,000: Provided, That notwith18 
standing any other provision of law, such funds may be 
19 
obligated and expended to carry out planning and design 
20 
and military construction projects in the United States not 
21 
otherwise authorized by law: Provided further, That not 
22 
later than 30 days after the date of enactment of this Act, 
23 
the Secretary of Defense shall submit to the Committees 
24 
on Appropriations of the House of Representatives and the 

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204 
1 
Senate an expenditure plan for funds provided under this 
2 
heading. 
3 


DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT 

4 


1990 

5 


For an additional amount to be deposited into the 
6 
Department of Defense Base Closure Account 1990, es7 
tablished by section 2906(a)(1) of the Defense Base Clo8 
sure and Realignment Act of 1990 (10 U.S.C. 2687 note), 
9 
$300,000,000: Provided, That not later than 30 days after 
10 
the date of enactment of this Act, the Secretary of Defense 
11 
shall submit to the Committees on Appropriations of the 
12 
House of Representatives and the Senate an expenditure 
13 
plan for funds provided under this heading. 
14 
DEPARTMENT OF VETERANS AFFAIRS 
15 
VETERANS HEALTH ADMINISTRATION 
16 
MEDICAL FACILITIES 
17 
For an additional amount for ‘‘Medical Facilities’’ for 
18 
non-recurring maintenance, including energy projects, 
19 
$950,000,000: Provided, That not later than 30 days after 
20 
the date of enactment of this Act, the Secretary of Vet21 
erans Affairs shall submit to the Committees on Appro22 
priations of the House of Representatives and the Senate 
23 
an expenditure plan for funds provided under this head24 
ing. 

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205 

1 


NATIONAL CEMETERY ADMINISTRATION 

2 


For an additional amount for ‘‘National Cemetery 
3 
Administration’’ for monument and memorial repairs, 
4 
$50,000,000: Provided, That not later than 30 days after 
5 
the date of enactment of this Act, the Secretary of Vet6 
erans Affairs shall submit to the Committees on Appro7 
priations of the House of Representatives and the Senate 
8 
an expenditure plan for funds provided under this head9 
ing. 
10 
TITLE XI—DEPARTMENT OF 
11 
STATE 
12 
DEPARTMENT OF STATE 
13 
ADMINISTRATION OF FOREIGN AFFAIRS 
14 
CAPITAL INVESTMENT FUND 
15 
For an additional amount for ‘‘Capital Investment 
16 
Fund’’, $276,000,000, of which up to $120,000,000 shall 
17 
be available for the design and construction of a backup 
18 
information management facility in the United States to 
19 
support mission-critical operations and projects, and up 
20 
to $98,527,000 shall be available to carry out the Depart21 
ment of State’s responsibilities under the Comprehensive 
22 
National Cybersecurity Initiative: Provided, That the Sec23 
retary of State shall submit to the Committees on Appro24 
priations of the House of Representatives and the Senate 

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1 
within 90 days of enactment of this Act a detailed spend2 
ing plan for funds appropriated under this heading. 
3 


INTERNATIONAL COMMISSIONS 

4 


INTERNATIONAL BOUNDARY AND WATER COMMISSION, 

5 


UNITED STATES AND MEXICO 
6 
CONSTRUCTION 
7 
(INCLUDING TRANSFER OF FUNDS) 
8 
For an additional amount for ‘‘Construction’’ for the 
9 
water quantity program to meet immediate repair and re10 
habilitation requirements, $224,000,000: Provided, That 
11 
up to $2,000,000 may be transferred to, and merged with, 
12 
funds available under the heading ‘‘International Bound13 
ary and Water Commission, United States and Mexico— 
14 
Salaries and Expenses’’, and such amount shall be in lieu 
15 
of amounts available under section 1106 of this Act: Pro16 
vided, That the Secretary of State shall submit to the 
17 
Committees on Appropriations of the House of Represent18 
atives and the Senate within 90 days of enactment of this 
19 
Act a detailed spending plan for funds appropriated under 
20 
this heading. 

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207 


1 
TITLE XII—TRANSPORTATION, 

2 


AND HOUSING AND URBAN 

3 


DEVELOPMENT 

4 


DEPARTMENT OF TRANSPORTATION 

5 


FEDERAL AVIATION ADMINISTRATION 
6 
GRANTS-IN-AID FOR AIRPORTS 
7 
For an additional amount for ‘‘Grants-in-Aid for Air8 
ports’’, to enable the Secretary of Transportation to make 
9 
grants for discretionary projects as authorized by sub10 
chapter I of chapter 471 and subchapter I of chapter 475 
11 
of title 49, United States Code, $3,000,000,000: Provided, 
12 
That such funds shall not be subject to apportionment for13 
mulas, special apportionment categories, or minimum per14 
centages under chapter 471: Provided further, That the 
15 
conditions, certifications, and assurances required for 
16 
grants under subchapter I of chapter 471 of such title 
17 
apply: Provided further, That for purposes of applying sec18 
tion 1104 of this Act to this appropriation, the deadline 
19 
for grantees to enter into contracts or other binding com20 
mitments to make use of not less than 50 percent of the 
21 
funds awarded shall be 120 days after award of the grant. 
22 


FEDERAL HIGHWAY ADMINISTRATION 

23 


HIGHWAY INFRASTRUCTURE INVESTMENT 

24 


For projects and activities eligible under section 133 
25 
of title 23, United States Code, section 144 of such title 

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1 
(without regard to subsection (g)), and sections 103, 119, 
2 
134, 148, and 149 of such title, $30,000,000,000, of 
3 
which $300,000,000 shall be for Indian reservation roads 
4 
under section 204 of such title; $250,000,000 shall be for 
5 
park roads and parkways under section 204 of such title; 
6 
$20,000,000 shall be for highway surface transportation 
7 
and technology training under section 140(b) of such title; 
8 
and $20,000,000 shall be for disadvantaged business en9 
terprises bonding assistance under section 332(e) of title 
10 
49, United States Code: Provided, That the amount set 
11 
aside from this appropriation pursuant to section 1106 of 
12 
this Act shall not be more than 0.2 percent of the funds 
13 
made available under this heading instead of the percent14 
age specified in such section: Provided further, That, after 
15 
making the set-asides authorized by the previous provisos, 
16 
the funds made available under this heading shall be dis17 
tributed among the States, and Puerto Rico, American 
18 
Samoa, Guam, the Virgin Islands, and the Commonwealth 
19 
of the Northern Mariana Islands, in the same ratio as the 
20 
obligation limitation for fiscal year 2008 was distributed 
21 
among the States in accordance with the formula specified 
22 
in section 120(a)(6) of division K of Public Law 110–161, 
23 
but, in the case of the Puerto Rico Highway Program and 
24 
the Territorial Highway Program, under section 120(a)(5) 
25 
of such division: Provided further, That 45 percent of the 

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1 
funds distributed to a State under this heading shall be 
2 
suballocated within the State in the manner and for the 
3 
purposes described in section 133(d) of title 23, United 
4 
States Code, (without regard to the comparison to fiscal 
5 
year 2005 in paragraph (2)): Provided further, That in 
6 
selecting projects to be funded, recipients shall give pri7 
ority to projects that can award contracts within 120 days 
8 
of enactment of this Act, are included in an approved 
9 
Statewide Transportation Improvement Program (STIP) 
10 
and/or Metropolitan Transportation Improvement Pro11 
gram (TIP), are projected for completion within a three12 
year time frame, and are located in economically dis13 
tressed areas as defined by section 301 of the Public 
14 
Works and Economic Development Act of 1965, as 
15 
amended (42 U.S.C. 3161): Provided further, That funds 
16 
made available under this heading shall be administered 
17 
as if apportioned under chapter 1 of title 23, United 
18 
States Code, except for funds made available for Indian 
19 
reservation roads and park roads and parkways which 
20 
shall be administered in accordance with chapter 2 of title 
21 
23, United States Code: Provided further, That the Fed22 
eral share payable on account of any project or activity 
23 
carried out with funds made available under this heading 
24 
shall, at the option of the recipient, be up to 100 percent 
25 
of the total cost thereof: Provided further, That funds 

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1 
made available by this Act shall not be obligated for the 
2 
purposes authorized under section 115(b) of title 23, 
3 
United States Code: Provided further, That the provisions 
4 
of section 1101(b) of Public Law 109–59 shall apply to 
5 
funds made available under this heading: Provided further, 
6 
That, in lieu of the redistribution required by section 
7 
1104(b) of this Act, if less than 50 percent of the funds 
8 
made available to each State and territory under this 
9 
heading are obligated within 180 days after the date of 
10 
distribution of those funds to the States and territories, 
11 
then the portion of the 50 percent of the total funding 
12 
distributed to the State or territory that has not been obli13 
gated shall be redistributed, in the manner described in 
14 
section 120(c) of division K of Public Law 110–161, to 
15 
those States and territories that have obligated at least 
16 
50 percent of the funds made available under this heading 
17 
and are able to obligate amounts in addition to those pre18 
viously distributed, except that, for those funds suballo19 
cated within the State, if less than 50 percent of the funds 
20 
so suballocated within the State are obligated within 150 
21 
days of suballocation, then the portion of the 50 percent 
22 
of funding so suballocated that has not been obligated will 
23 
be returned to the State for use anywhere in the State 
24 
prior to being redistributed in accordance with the first 
25 
part of this proviso: Provided further, That, in lieu of the 

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1 
redistribution required by section 1104(b) of this Act, any 
2 
funds made available under this heading that are not obli3 
gated by August 1, 2010, shall be redistributed, in the 
4 
manner described in section 120(c) of division K of Public 
5 
Law 110–161, to those States able to obligate amounts 
6 
in addition to those previously distributed, except that 
7 
funds suballocated within the State that are not obligated 
8 
by June 1, 2010, will be returned to the State for use 
9 
anywhere in the State prior to being redistributed in ac10 
cordance with the first part of this proviso: Provided fur11 
ther, That notwithstanding section 1103 of this Act, funds 
12 
made available under this heading shall be apportioned not 
13 
later than 7 days after the date of enactment of this Act. 
14 
FEDERAL RAILROAD ADMINISTRATION 
15 
CAPITAL ASSISTANCE FOR INTERCITY PASSENGER RAIL 
16 
SERVICE 
17 
For an additional amount for ‘‘Capital Assistance for 
18 
Intercity Passenger Rail Service’’ to enable the Secretary 
19 
of Transportation to make grants for capital costs as au20 
thorized by chapter 244 of title 49 United States Code, 
21 
$300,000,000: Provided, That notwithstanding section 
22 
1103 of this Act, the Secretary shall give preference to 
23 
projects for the repair, rehabilitation, upgrade, or pur24 
chase of railroad assets or infrastructure that can be 
25 
awarded within 180 days of enactment of this Act: Pro-

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1 
vided further, That in awarding grants for the acquisition 
2 
of a piece of rolling stock or locomotive, the Secretary shall 
3 
give preference to FRA-compliant rolling stock and loco4 
motives: Provided further, That the Secretary shall give 
5 
preference to projects that support the development of 
6 
intercity high speed rail service: Provided further, That the 
7 
Federal share shall be, at the option of the recipient, up 
8 
to 100 percent. 
9 
CAPITAL AND DEBT SERVICE GRANTS TO THE NATIONAL 
10 
RAILROAD PASSENGER CORPORATION 
11 
For an additional amount for ‘‘Capital and Debt 
12 
Service Grants to the National Railroad Passenger Cor13 
poration’’ (Amtrak) to enable the Secretary of Transpor14 
tation to make capital grants to Amtrak as authorized by 
15 
section 101(c) of the Passenger Rail Investment and Im16 
provement Act of 2008 (Public Law 110–432), 
17 
$800,000,000: Provided, That priority shall be given to 
18 
projects for the repair, rehabilitation, or upgrade of rail19 
road assets or infrastructure: Provided further, That none 
20 
of the funds under this heading shall be used to subsidize 
21 
the operating losses of Amtrak: Provided further, Notwith22 
standing section 1103 of this Act, funds made available 
23 
under this heading shall be awarded not later than 7 days 
24 
after the date of enactment of this Act. 

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1 


FEDERAL TRANSIT ADMINISTRATION 

2 


TRANSIT CAPITAL ASSISTANCE 
3 
For transit capital assistance grants, 
4 
$6,000,000,000, of which $5,400,000,000 shall be for 
5 
grants under section 5307 of title 49, United States Code 
6 
and shall be apportioned in accordance with section 5336 
7 
of such title (other than subsections (i)(1) and (j)) but 
8 
may not be combined or commingled with any other funds 
9 
apportioned under such section 5336, and of which 
10 
$600,000,000 shall be for grants under section 5311 of 
11 
such title and shall be apportioned in accordance with such 
12 
section 5311 but may not be combined or commingled with 
13 
any other funds apportioned under that section: Provided, 
14 
That of the funds provided for section 5311 under this 
15 
heading, 3 percent shall be made available for section 
16 
5311(c)(1): Provided further, That applicable chapter 53 
17 
requirements shall apply except that the Federal share of 
18 
the costs for which a grant is made under this heading 
19 
shall be, at the option of the recipient, up to 100 percent: 
20 
Provided further, In lieu of the requirements of section 
21 
1103 of this Act, funds made available under this heading 
22 
shall be apportioned not later than 7 days after the date 
23 
of enactment of this Act: Provided further, That for pur24 
poses of applying section 1104 of this Act to this appro25 
priation, the deadline for grantees to enter into obligations 

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1 
to make use of not less than 50 percent of the funds 
2 
awarded shall be 180 days after apportionment: Provided 
3 
further, That the provisions of section 1101(b) of Public 
4 
Law 109–59 shall apply to funds made available under 
5 
this heading: Provided further, That notwithstanding any 
6 
other provision of law, of the funds apportioned in accord7 
ance with section 5336, up to three-quarters of 1 percent 
8 
shall be available for administrative expenses and program 
9 
management oversight and of the funds apportioned in ac10 
cordance with section 5311, up to one-half of 1 percent 
11 
shall be available for administrative expenses and program 
12 
management oversight and both amounts shall remain 
13 
available for obligation until September 30, 2012: Pro14 
vided further, That the preceding proviso shall apply in 
15 
lieu of the provisions in section 1106 of this Act. 
16 
FIXED GUIDEWAY INFRASTRUCTURE INVESTMENT 
17 
For an amount for capital expenditures authorized 
18 
under section 5309(b)(2) of title 49, United States Code, 
19 
$2,000,000,000: Provided, That the Secretary of Trans20 
portation shall apportion funds under this heading pursu21 
ant to the formula set forth in section 5337 of title 49, 
22 
United States Code: Provided further, That the funds ap23 
propriated under this heading shall not be commingled 
24 
with funds available under the Formula and Bus Grants 
25 
account: Provided further, In lieu of the requirements of 

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1 
section 1103 of this Act, funds made available under this 
2 
heading shall be apportioned not later than 7 days after 
3 
the date of enactment of this Act: Provided further, That 
4 
for purposes of applying section 1104 of this Act to this 
5 
appropriation, the deadline for grantees to enter into obli6 
gations to make use of not less than 50 percent of the 
7 
funds awarded shall be 180 days after apportionment: 
8 
Provided further, That applicable chapter 53 requirements 
9 
shall apply except that the Federal share of the costs for 
10 
which a grant is made under this heading shall be, at the 
11 
option of the recipient, up to 100 percent: Provided fur12 
ther, That the provisions of section 1101(b) of Public Law 
13 
109–59 shall apply to funds made available under this 
14 
heading: Provided further, That notwithstanding any other 
15 
provision of law, up to 1 percent of the funds under this 
16 
heading shall be available for administrative expenses and 
17 
program management oversight and shall remain available 
18 
for obligation until September 30, 2012: Provided further, 
19 
That the preceding proviso shall apply in lieu of the provi20 
sions in section 1106 of this Act. 
21 


CAPITAL INVESTMENT GRANTS 

22 


For an additional amount for ‘‘Capital Investment 
23 
Grants’’, as authorized under section 5338(c)(4) of title 
24 
49, United States Code, and allocated under section 
25 
5309(m)(2)(A) of such title, to enable the Secretary of 

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216 
1 
Transportation to make discretionary grants as authorized 
2 
by section 5309(d) and (e) of such title, $1,000,000,000: 
3 
Provided, That such amount shall be allocated without re4 
gard to the limitation under section 5309(m)(2)(A)(i): 
5 
Provided further, That in selecting projects to be funded, 
6 
priority shall be given to projects that are currently in con7 
struction or are able to award contracts based on bids 
8 
within 120 days of enactment of this Act: Provided further, 
9 
That for purposes of applying section 1104 of this Act 
10 
to this appropriation, the deadline for grantees to enter 
11 
into contracts or other binding commitments to make use 
12 
of not less than 50 percent of the funds awarded shall 
13 
be 120 days after award: Provided further, That the provi14 
sions of section 1101(b) of Public Law 109–59 shall apply 
15 
to funds made available under this heading: Provided fur16 
ther, That applicable chapter 53 requirements shall apply, 
17 
except that notwithstanding any other provision of law, 
18 
up to 1 percent of the funds under this heading shall be 
19 
available for administrative expenses and program man20 
agement oversight and shall remain available for obliga21 
tion until September 30, 2012: Provided further, That the 
22 
preceding proviso shall apply in lieu of the provisions in 
23 
section 1106 of this Act. 

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1 


DEPARTMENT OF HOUSING AND URBAN 

2 


DEVELOPMENT 

3 


PUBLIC AND INDIAN HOUSING 

4 


PUBLIC HOUSING CAPITAL FUND 

5 


For an additional amount for ‘‘Public Housing Cap6 
ital Fund’’ to carry out capital and management activities 
7 
for public housing agencies, as authorized under section 
8 
9 of the United States Housing Act of 1937 (42 U.S.C. 
9 
1437g) (‘‘the Act’’), $5,000,000,000: Provided, That the 
10 
Secretary of Housing and Urban Development shall dis11 
tribute at least $4,000,000,000 of this amount by the 
12 
same formula used for amounts made available in fiscal 
13 
year 2008: Provided further, That public housing authori14 
ties shall give priority to capital projects that can award 
15 
contracts based on bids within 120 days from the date 
16 
the funds are made available to the public housing au17 
thorities: Provided further, That public housing agencies 
18 
shall give priority consideration to the rehabilitation of va19 
cant rental units: Provided further, That notwithstanding 
20 
any other provision of the Act or regulations, (1) funding 
21 
provided herein may not be used for Operating Fund ac22 
tivities pursuant to section 9(g) of the Act, and (2) any 
23 
restriction of funding to replacement housing uses shall 
24 
be inapplicable: Provided further, That public housing 
25 
agencies shall prioritize capital projects underway or al


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1 
ready in their 5-year plans: Provided further, That of the 
2 
amount provided under this heading, the Secretary may 
3 
obligate up to $1,000,000,000, for competitive grants to 
4 
public housing authorities for activities including: (1) in5 
vestments that leverage private sector funding or financ6 
ing for housing renovations and energy conservation ret7 
rofit investments; (2) rehabilitation of units using sustain8 
able materials and methods that improve energy efficiency, 
9 
reduce energy costs, or preserve and improve units with 
10 
good access to public transportation or employment cen11 
ters; (3) increase the availability of affordable rental hous12 
ing by expediting rehabilitation projects to bring vacant 
13 
units into use or by filling the capital investment gap for 
14 
redevelopment or replacement housing projects which have 
15 
been approved or are otherwise ready to proceed but are 
16 
stalled due to the inability to obtain anticipated private 
17 
capital; or (4) address the needs of seniors and persons 
18 
with disabilities through improvements to housing and re19 
lated facilities which attract or promote the coordinated 
20 
delivery of supportive services: Provided further, That the 
21 
Secretary may waive statutory or regulatory provisions re22 
lated to the obligation and expenditure of capital funds 
23 
if necessary to facilitate the timely expenditure of funds 
24 
(except for requirements related to fair housing, non25 
discrimination, labor standards, and the environment). 

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1 
ELDERLY, DISABLED, AND SECTION 8 ASSISTED HOUSING 
2 


ENERGY RETROFIT 

3 


For grants or loans to owners of properties receiving 
4 
project-based assistance pursuant to section 202 of the 
5 
Housing Act of 1959 (12 U.S.C. 17012), section 811 of 
6 
the Cranston-Gonzalez National Affordable Housing Act 
7 
(42 U.S.C. 8013), or section 8 of the United States Hous8 
ing Act of 1937 (42 U.S.C. 1437f), to accomplish energy 
9 
retrofit investments, $2,500,000,000: Provided, That such 
10 
loans or grants shall be provided through the Office of 
11 
Affordable Housing Preservation of the Department of 
12 
Housing and Urban Development, on such terms and con13 
ditions as the Secretary of Housing and Urban Develop14 
ment deems appropriate: Provided further, That eligible 
15 
owners must have at least a satisfactory management re16 
view rating, be in substantial compliance with applicable 
17 
performance standards and legal requirements, and com18 
mit to an additional period of affordability determined by 
19 
the Secretary: Provided further, That the Secretary shall 
20 
undertake appropriate underwriting and oversight with re21 
spect to such transactions: Provided further, That the Sec22 
retary may set aside funds made available under this 
23 
heading for an efficiency incentive payable upon satisfac24 
tory completion of energy retrofit investments, and may 
25 
provide additional incentives if such investments resulted 

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1 
in extraordinary job creation for low-income and very low


2 
income persons: Provided further, that of the funds pro


3 
vided under this heading, 1 percent shall be available only 

4 
for staffing, training, technical assistance, technology, 

5 
monitoring, research and evaluation activities. 

6 
NATIVE AMERICAN HOUSING BLOCK GRANTS 

7 
For an additional amount for ‘‘Native American 
8 
Housing Block Grants’’, as authorized under title I of the 
9 
Native American Housing Assistance and Self-Determina10 
tion Act of 1996 (‘‘NAHASDA’’) (25 U.S.C. 4111 et 
11 
seq.), $500,000,000: Provided, That $250,000,000 of the 
12 
amount appropriated under this heading shall be distrib13 
uted according to the same funding formula used in fiscal 
14 
year 2008: Provided further, That in selecting projects to 
15 
be funded, recipients shall give priority to projects that 
16 
can award contracts based on bids within 120 days from 
17 
the date that funds are available to the recipients: Pro18 
vided further, That in allocating the funds appropriated 
19 
under this heading, the Secretary of Housing and Urban 
20 
Development shall not require an additional action plan 
21 
from grantees: Provided further, That the Secretary may 
22 
obligate $250,000,000 of the amount appropriated under 
23 
this heading for competitive grants to eligible entities that 
24 
apply for funds as authorized under NAHASDA: Provided 
25 
further, That in awarding competitive funds, the Secretary 

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1 
shall give priority to projects that will spur construction 
2 
and rehabilitation and will create employment opportuni3 
ties for low-income and unemployed persons. 
4 


COMMUNITY PLANNING AND DEVELOPMENT 

5 


COMMUNITY DEVELOPMENT FUND 
6 
For an additional amount for ‘‘Community Develop7 
ment Fund’’ $1,000,000,000, to carry out the community 
8 
development block grant program under title I of the 
9 
Housing and Community Development Act of 1974 (42 
10 
U.S.C. 5301 et seq.): Provided, That the amount appro11 
priated in this paragraph shall be distributed according 
12 
to the same funding formula used in fiscal year 2008: Pro13 
vided further, That in allocating the funds appropriated 
14 
in this paragraph, the Secretary of Housing and Urban 
15 
Development shall not require an additional action plan 
16 
from grantees: Provided further, That in selecting projects 
17 
to be funded, recipients shall give priority to projects that 
18 
can award contracts based on bids within 120 days from 
19 
the date the funds are made available to the recipients; 
20 
Provided further, That in administering funds provided in 
21 
this paragraph, the Secretary may waive any provision of 
22 
any statute or regulation that the Secretary administers 
23 
in connection with the obligation by the Secretary or the 
24 
use by the recipient of these funds (except for require25 
ments related to fair housing, nondiscrimination, labor 

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222 
1 
standards, and the environment), upon a finding that such 
2 
waiver is required to facilitate the timely use of such funds 
3 
and would not be inconsistent with the overall purpose of 
4 
the statute. 
5 


For a further additional amount for ‘‘Community De6 
velopment Fund’’, $4,190,000,000, to be used for neigh7 
borhood stabilization activities related to emergency as8 
sistance for the redevelopment of abandoned and fore9 
closed homes as authorized under division B, title III of 
10 
the Housing and Economic Recovery Act of 2008 (Public 
11 
Law 110–289), of which— 
12 
(1) not less than $3,440,000,000 shall be allo13 
cated by a competition for which eligible entities 
14 
shall be States, units of general local government, 
15 
and nonprofit entities or consortia of nonprofit enti16 
ties: Provided, That the award criteria for such com17 
petition shall include grantee capacity, leveraging 
18 
potential, targeted impact of foreclosure prevention, 
19 
and any additional factors determined by the Sec20 
retary of Housing and Urban Development: Provided 
21 


further, that the Secretary may establish a minimum 

22 


grant size: Provided further, That amounts made 

23 


available under this Section may be used to (A) es


24 


tablish financing mechanisms for purchase and rede


25 


velopment of foreclosed-upon homes and residential 

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223 


1 


properties, including such mechanisms as soft-sec


2 


onds, loan loss reserves, and shared-equity loans for 

3 


low- and moderate-income homebuyers; (B) purchase 

4 


and rehabilitate homes and residential properties 

5 


that have been abandoned or foreclosed upon, in 
6 
order to sell or rent such homes and properties; (C) 
7 
establish and operate land banks for homes that 
8 
have been foreclosed upon; (D) demolish foreclosed 
9 
properties that have become blighted structures; and 
10 
(E) redevelop demolished or vacant foreclosed prop11 
erties in order to sell or rent such properties; and 
12 
(2) up to $750,000,000 shall be awarded by 
13 
competition to nonprofit entities or consortia of non14 
profit entities to provide community stabilization as15 
sistance by (A) accelerating state and local govern16 
ment and nonprofit productivity; (B) increasing the 
17 
scale and efficiency of property transfers of fore18 
closed and vacant residential properties from finan19 
cial institutions and government entities to qualified 
20 
local housing providers in order to return the prop21 


erties to productive affordable housing use; (C) 

22 


building industry and property management capac


23 


ity; and (D) partnering with private sector real es


24 


tate developers and contractors and leveraging pri


25 


vate sector capital: Provided further, That such com


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1 


munity stabilization assistance shall be provided pri


2 


marily in States and areas with high rates of de


3 


faults and foreclosures to support the acquisition, re


4 


habilitation and property management of single-fam


5 


ily and multi-family homes and to work in partner6 
ship with the private sector real estate industry and 
7 
to leverage available private and public funds for 
8 
those purposes: Provided further, That for purposes 
9 
of this paragraph qualified local housing providers 
10 
shall be nonprofit organizations with demonstrated 
11 
capabilities in real estate development or acquisition 
12 
and rehabilitation or property management of single-
13 
or multi-family homes, or local or state governments 
14 
or instrumentalities of such governments: Provided 
15 
further, That qualified local housing providers shall 
16 
be expected to utilize and leverage additional local 
17 
nonprofit, governmental, for-profit and private re18 
sources: 
19 
Provided further, That in the case of any foreclosure on 
20 
any dwelling or residential real property acquired with any 
21 
amounts made available under this heading, any successor 
22 
in interest in such property pursuant to the foreclosure 
23 
shall assume such interest subject to—(1) the provision 
24 
by such successor in interest of a notice to vacate to any 
25 
bona fide tenant at least 90 days before the effective date 

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1 
of such notice; and (2) the rights of any bona fide tenant, 
2 
as of the date of such notice of foreclosure (A) under any 
3 
bona fide lease entered into before the notice of foreclosure 
4 
to occupy the premises until the end of the remaining term 
5 
of the lease, except that a successor in interest may termi6 
nate a lease effective on the date of sale of the unit to 
7 
a purchaser who will occupy the unit as a primary resi8 
dence, subject to the receipt by the tenant of the 90-day 
9 
notice under this paragraph; or (B) without a lease or with 
10 
a lease terminable at will under State law, subject to the 
11 
receipt by the tenant of the 90-day notice under this para12 
graph, except that nothing in this paragraph shall affect 
13 
the requirements for termination of any Federal- or State14 
subsidized tenancy or of any State or local law that pro15 
vides longer time periods or other additional protections 
16 
for tenants: Provided further, That, for purposes of this 
17 
paragraph, a lease or tenancy shall be considered bona fide 
18 
only if (1) the mortgagor under the contract is not the 
19 
tenant; (2) the lease or tenancy was the result of an arms20 
length transaction; and (3) the lease or tenancy requires 
21 
the receipt of rent that is not substantially less than fair 
22 
market rent for the property: Provided further, That the 
23 
recipient of any grant or loan from amounts made avail24 
able under this heading may not refuse to lease a dwelling 
25 
unit in housing assisted with such loan or grant to a hold-

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1 
er of a voucher or certificate of eligibility under section 
2 
8 of the United States Housing Act of 1937 (42 U.S.C. 
3 
1437f) because of the status of the prospective tenant as 
4 
such a holder: Provided further, That in the case of any 
5 
qualified foreclosed housing for which funds made avail6 
able under this heading are used and in which a recipient 
7 
of assistance under section 8(o) of the U.S. Housing Act 
8 
of 1937 resides at the time of acquisition or financing, 
9 
the owner and any successor in interest shall be subject 
10 
to the lease and to the housing assistance payments con11 
tract for the occupied unit: Provided further, That 
12 
vacating the property prior to sale shall not constitute 
13 
good cause for termination of the tenancy unless the prop14 
erty is unmarketable while occupied or unless the owner 
15 
or subsequent purchaser desires the unit for personal or 
16 
family use: Provided further, That this paragraph shall not 
17 
preempt any State or local law that provides more protec18 
tion for tenants: Provided further, That amounts made 
19 
available under this heading may be used for the costs 
20 
of demolishing foreclosed housing that is deteriorated or 
21 
unsafe: Provided further, That the amount for demolition 
22 
of such housing may not exceed 10 percent of amounts 
23 
allocated under this paragraph to States and units of gen24 
eral local government: Provided further, That no amounts 
25 
from a grant made under this paragraph may be used to 

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1 
demolish any public housing (as such term is defined in 
2 
section 3 of the United States Housing Act of 1937 (42 
3 
U.S.C. 1437a)): Provided further, That section 2301(d)(4) 
4 
of the Housing and Economic Recovery Act of 2008 (Pub5 
lic Law 110–289) is repealed. 
6 
HOME INVESTMENT PARTNERSHIPS PROGRAM 
7 
For an additional amount for ‘‘HOME Investment 
8 
Partnerships Program’’ as authorized under Title II of the 
9 
Cranston-Gonzalez National Affordable Housing Act (‘‘the 
10 
Act’’), $1,500,000,000: Provided, That the amount appro11 
priated under this heading shall be distributed according 
12 
to the same funding formula used in fiscal year 2008: Pro13 
vided further, That the Secretary of Housing and Urban 
14 
Development may waive statutory or regulatory provisions 
15 
related to the obligation of such funds if necessary to fa16 
cilitate the timely expenditure of funds (except for require17 
ments related to fair housing, nondiscrimination, labor 
18 
standards, and the environment): Provided further, That 
19 
in selecting projects to be funded, recipients shall give pri20 
ority to projects that can award contracts based on bids 
21 
within 120 days from the date that funds are available 
22 
to the recipients. 

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1 


SELF-HELP AND ASSISTED HOMEOWNERSHIP 

2 


OPPORTUNITY PROGRAM 

3 


For an additional amount for ‘‘Self-Help and As4 
sisted Homeownership Opportunity Program’’, as author5 
ized under section 11 of the Housing Opportunity Pro6 
gram Extension Act of 1996, $10,000,000: Provided, That 
7 
in awarding competitive grant funds, the Secretary of 
8 
Housing and Urban Development shall give priority to the 
9 
provision and rehabilitation of sustainable, affordable sin10 
gle and multifamily units in low-income, high-need rural 
11 
areas: Provided further, That in selecting projects to be 
12 
funded, grantees shall give priority to projects that can 
13 
award contracts based on bids within 120 days from the 
14 
date the funds are made available to the grantee. 
15 
HOMELESS ASSISTANCE GRANTS 
16 
For an additional amount for ‘‘Homeless Assistance 
17 
Grants’’, for the emergency shelter grants program as au18 
thorized under subtitle B of tile IV of the McKinney-Vento 
19 
Homeless Assistance Act, $1,500,000,000: Provided, That 
20 
in addition to homeless prevention activities specified in 
21 
the emergency shelter grant program, funds provided 
22 
under this heading may be used for the provision of short23 
term or medium-term rental assistance; housing relocation 
24 
and stabilization services including housing search, medi25 
ation or outreach to property owners, legal services, credit 

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1 
repair, resolution of security or utility deposits, utility pay2 
ments, rental assistance for a final month at a location, 
3 
and moving costs assistance; or other appropriate home4 
lessness prevention activities; Provided further, That these 
5 
funds shall be allocated pursuant to the formula author6 
ized by section 413 of such Act: Provided further, That 
7 
the Secretary of Housing and Urban Development may 
8 
waive statutory or regulatory provisions related to the obli9 
gation and use of emergency shelter grant funds necessary 
10 
to facilitate the timely expenditure of funds. 
11 
OFFICE OF HEALTHY HOMES AND LEAD HAZARD 
12 
CONTROL 
13 
LEAD HAZARD REDUCTION 
14 
For an additional amount for ‘‘Lead Hazard Reduc15 
tion’’, for the Lead Hazard Reduction Program as author16 
ized by section 1011 of the Residential Lead-Based Paint 
17 
Hazard Reduction Act of 1992, $100,000,000: Provided, 
18 
That for purposes of environmental review, pursuant to 
19 
the National Environmental Policy Act of 1969 (42 U.S.C. 
20 
4321 et seq.) and other provisions of law that further the 
21 
purposes of such Act, a grant under the Healthy Homes 
22 
Initiative, Operation Lead Elimination Action Plan 
23 
(LEAP), or the Lead Technical Studies program under 
24 
this heading or under prior appropriations Acts for such 
25 
purposes under this heading, shall be considered to be 

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1 
funds for a special project for purposes of section 305(e) 
2 
of the Multifamily Housing Property Disposition Reform 
3 
Act of 1994: Provided further, That of the total amount 
4 
made available under this heading, $30,000,000 shall be 
5 
made available on a competitive basis for areas with the 
6 
highest lead paint abatement needs. 
7 
GENERAL PROVISIONS, THIS TITLE 
8 
SEC. 12001. MAINTENANCE OF EFFORT AND REPORTING 
9 
REQUIREMENTS TO ENSURE TRANSPARENCY 
10 
AND ACCOUNTABILITY. 
11 
(a) MAINTENANCE OF EFFORT.—Not later than 30 
12 
days after the date of enactment of this Act, for each 
13 
amount that is distributed to a State or agency thereof 
14 
from an appropriation in this Act for a covered program, 
15 
the Governor of the State shall certify that the State will 
16 
maintain its effort with regard to State funding for the 
17 
types of projects that are funded by the appropriation. As 
18 
part of this certification, the Governor shall submit to the 
19 
covered agency a statement identifying the amount of 
20 
funds the State planned to expend as of the date of enact21 
ment of this Act from non-Federal sources in the period 
22 
beginning on the date of enactment of this Act through 
23 
September 30, 2010, for the types of projects that are 
24 
funded by the appropriation. 
25 


(b) PERIODIC REPORTS.— 

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1 


(1) IN GENERAL.—Notwithstanding any other 

2 


provision of law, each grant recipient shall submit to 

3 


the covered agency from which they received funding 

4 


periodic reports on the use of the funds appropriated 

5 


in this Act for covered programs. Such reports shall 
6 
be collected and compiled by the covered agency and 
7 
transmitted to Congress. 
8 
(2) CONTENTS OF REPORTS.—For amounts re9 
ceived under each covered program by a grant re10 
cipient under this Act, the grant recipient shall in11 
clude in the periodic reports information tracking— 
12 
(A) the amount of Federal funds appro13 
priated, allocated, obligated, and outlayed under 
14 
the appropriation; 
15 
(B) the number of projects that have been 
16 
put out to bid under the appropriation and the 
17 
amount of Federal funds associated with such 
18 
projects; 
19 
(C) the number of projects for which con20 
tracts have been awarded under the appropria21 


tion and the amount of Federal funds associ


22 


ated with such contracts; 

23 


(D) the number of projects for which work 
24 
has begun under such contracts and the 

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1 


amount of Federal funds associated with such 

2 


contracts; 

3 


(E) the number of projects for which work 

4 


has been completed under such contracts and 

5 


the amount of Federal funds associated with 
6 
such contracts; 
7 
(F) the number of jobs created or sus8 
tained by the Federal funds provided for 
9 
projects under the appropriation, including in10 
formation on job sectors and pay levels; and 
11 
(G) for each covered program report infor12 
mation tracking the actual aggregate expendi13 
tures by each grant recipient from non-Federal 
14 
sources for projects eligible for funding under 
15 
the program during the period beginning on the 
16 
date of enactment of this Act through Sep17 
tember 30, 2010, as compared to the level of 
18 
such expenditures that were planned to occur 
19 
during such period as of the date of enactment 
20 
of this Act. 
21 


(3) TIMING OF REPORTS.—Each grant recipient 

22 


shall submit the first of the periodic reports required 

23 


under this subsection not later than 30 days after 

24 


the date of enactment of this Act and shall submit 

25 


updated reports not later than 60 days, 120 days, 

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1 


180 days, 1 year, and 3 years after such date of en


2 


actment. 

3 


(c) DEFINITIONS.—In this section, the following defi4 
nitions apply: 
5 


(1) COVERED AGENCY.—The term ‘‘covered 
6 
agency’’ means the Federal Aviation Administration, 
7 
the Federal Highway Administration, the Federal 
8 
Railroad Administration, and the Federal Transit 
9 
Administration of the Department of Transpor10 
tation. 
11 
(2) COVERED PROGRAM.—The term ‘‘covered 
12 
program’’ means funds appropriated in this Act for 
13 
‘‘Grants-in-Aid for Airports’’ to the Federal Aviation 
14 
Administration; for ‘‘Highway Infrastructure Invest15 
ment’’ to the Federal Highway Administration; for 
16 
‘‘Capital Assistance for Intercity Passenger Rail 
17 
Service’’ to the Federal Railroad Administration; for 
18 
‘‘Transit Capital Assistance’’, ‘‘Fixed Guideway In19 
frastructure Investment’’, and ‘‘Capital Investment 
20 
Grants’’ to the Federal Transit Administration. 
21 


(3) GRANT RECIPIENT.—The term ‘‘grant re


22 


cipient’’ means a State or other recipient of assist


23 


ance provided under a covered program in this Act. 

24 


Such term does not include a Federal department or 
25 
agency. 

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1 
SEC. 12002. FHA LOAN LIMITS FOR 2009. 
2 


(a) LOAN LIMIT FLOOR BASED ON 2008 LEVELS.— 
3 
For mortgages for which the mortgagee issues credit ap4 
proval for the borrower during calendar year 2009, if the 
5 
dollar amount limitation on the principal obligation of a 
6 
mortgage determined under section 203(b)(2) of the Na7 
tional Housing Act (12 U.S.C. 1709(b)(2)) for any size 
8 
residence for any area is less than such dollar amount lim9 
itation that was in effect for such size residence for such 
10 
area for 2008 pursuant to section 202 of the Economic 
11 
Stimulus Act of 2008 (Public Law 110-185; 122 Stat. 
12 
620), notwithstanding any other provision of law, the max13 
imum dollar amount limitation on the principal obligation 
14 
of a mortgage for such size residence for such area for 
15 
purposes of such section 203(b)(2) shall be considered (ex16 
cept for purposes of section 255(g) of such Act (12 U.S.C. 
17 
1715z–20(g))) to be such dollar amount limitation in ef18 
fect for such size residence for such area for 2008. 
19 
(b) DISCRETIONARY AUTHORITY FOR SUB-AREAS.— 
20 
Notwithstanding any other provision of law, if the Sec21 
retary of Housing and Urban Development determines, for 
22 
any geographic area that is smaller than an area for which 
23 
dollar amount limitations on the principal obligation of a 
24 
mortgage are determined under section 203(b)(2) of the 
25 
National Housing Act, that a higher such maximum dollar 
26 
amount limitation is warranted for any particular size or 

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1 
sizes of residences in such sub-area by higher median 
2 
home prices in such sub-area, the Secretary may, for mort3 
gages for which the mortgagee issues credit approval for 
4 
the borrower during calendar year 2009, increase the max5 
imum dollar amount limitation for such size or sizes of 
6 
residences for such sub-area that is otherwise in effect (in7 
cluding pursuant to subsection (a) of this section), but in 
8 
no case to an amount that exceeds the amount specified 
9 
in section 202(a)(2) of the Economic Stimulus Act of 
10 
2008. 
11 
SEC. 12003. GSE CONFORMING LOAN LIMITS FOR 2009. 
12 
(a) LOAN LIMIT FLOOR BASED ON 2008 LEVELS.— 
13 
For mortgages originated during calendar year 2009, if 
14 
the limitation on the maximum original principal obliga15 
tion of a mortgage that may purchased by the Federal 
16 
National Mortgage Association or the Federal Home Loan 
17 
Mortgage Corporation determined under section 302(b)(2) 
18 
of the Federal National Mortgage Association Charter Act 
19 
(12 U.S.C. 1717(b)(2)) or section 305(a)(2) of the Fed20 
eral Home Loan Mortgage Corporation Act (12 U.S.C. 
21 
1754(a)(2)), respectively, for any size residence for any 
22 
area is less than such maximum original principal obliga23 
tion limitation that was in effect for such size residence 
24 
for such area for 2008 pursuant to section 201 of the Eco25 
nomic Stimulus Act of 2008 (Public Law 110-185; 122 

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1 
Stat. 619), notwithstanding any other provision of law, the 
2 
limitation on the maximum original principal obligation of 
3 
a mortgage for such Association and Corporation for such 
4 
size residence for such area shall be such maximum limita5 
tion in effect for such size residence for such area for 
6 
2008. 
7 
(b) DISCRETIONARY AUTHORITY FOR SUB-AREAS.— 
8 
Notwithstanding any other provision of law, if the Direc9 
tor of the Federal Housing Finance Agency determines, 
10 
for any geographic area that is smaller than an area for 
11 
which limitations on the maximum original principal obli12 
gation of a mortgage are determined for the Federal Na13 
tional Mortgage Association or the Federal Home Loan 
14 
Mortgage Corporation, that a higher such maximum origi15 
nal principal obligation limitation is warranted for any 
16 
particular size or sizes of residences in such sub-area by 
17 
higher median home prices in such sub-area, the Director 
18 
may, for mortgages originated during 2009, increase the 
19 
maximum original principal obligation limitation for such 
20 
size or sizes of residences for such sub-area that is other21 
wise in effect (including pursuant to subsection (a) of this 
22 
section) for such Association and Corporation, but in no 
23 
case to an amount that exceeds the amount specified in 
24 
the matter following the comma in section 201(a)(1)(B) 
25 
of the Economic Stimulus Act of 2008. 

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237 

1 
SEC. 12004. FHA REVERSE MORTGAGE LOAN LIMITS FOR 
2 
2009. 
3 


For mortgages for which the mortgagee issues credit 
4 
approval for the borrower during calendar year 2009, the 
5 
second sentence of section 255(g) of the National Housing 
6 
Act (12 U.S.C. 171520(g)) shall be considered to require 
7 
that in no case may the benefits of insurance under such 
8 
section 255 exceed 150 percent of the maximum dollar 
9 
amount in effect under the sixth sentence of section 
10 
305(a)(2) of the Federal Home Loan Mortgage Corpora11 
tion Act (12 U.S.C. 1454(a)(2)). 
12 
TITLE XIII—STATE FISCAL 
13 
STABILIZATION FUND 
14 
DEPARTMENT OF EDUCATION 
15 
STATE FISCAL STABILIZATION FUND 
16 
For necessary expenses for a State Fiscal Stabiliza17 
tion Fund, $79,000,000,000, which shall be administered 
18 
by the Department of Education, of which 
19 
$39,500,000,000 shall become available on July 1, 2009 
20 
and remain available through September 30, 2010, and 
21 
$39,500,000,000 shall become available on July 1, 2010 
22 
and remain available through September 30, 2011: Pro23 
vided, That the provisions of section 1103 of this Act shall 
24 
not apply to the funds reserved under section 13001(c) 
25 
of this title: Provided further, That the amount made 
26 
available under section 13001(b) of this title for adminis


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1 
tration and oversight shall take the place of the set-aside 
2 
under section 1106 of this Act. 
3 


GENERAL PROVISIONS, THIS TITLE 

4 
SEC. 13001. ALLOCATIONS. 
5 


(a) OUTLYING AREAS.—From each year’s appropria6 
tion to carry out this title, the Secretary of Education 
7 
shall first allocate one half of 1 percent to the outlying 
8 
areas on the basis of their respective needs, as determined 
9 
by the Secretary, for activities consistent with this title 
10 
under such terms and conditions as the Secretary may de11 
termine. 
12 
(b) ADMINISTRATION AND OVERSIGHT.—The Sec13 
retary may, in addition, reserve up to $12,500,000 each 
14 
year for administration and oversight of this title, includ15 
ing for program evaluation. 
16 
(c) RESERVATION FOR ADDITIONAL PROGRAMS.— 
17 
After reserving funds under subsections (a) and (b), the 
18 
Secretary shall reserve $7,500,000,000 each year for 
19 
grants under sections 13006 and 13007. 
20 
(d) STATE ALLOCATIONS.—After carrying out sub21 
sections (a), (b), and (c), the Secretary shall allocate the 
22 
remaining funds made available to carry out this title to 
23 
the States as follows: 
24 


(1) 61 percent on the basis of their relative 

25 


population of individuals aged 5 through 24. 

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1 


(2) 39 percent on the basis of their relative 

2 


total population. 

3 


(e) STATE GRANTS.—From funds allocated under 
4 
subsection (d), the Secretary shall make grants to the 
5 
Governor of each State. 
6 
(f) REALLOCATION.—The Governor shall return to 
7 
the Secretary any funds received under subsection (e) that 
8 
the Governor does not obligate within one year of receiving 
9 
a grant, and the Secretary shall reallocate such funds to 
10 
the remaining States in accordance with subsection (d). 
11 
SEC. 13002. STATE USES OF FUNDS. 
12 
(a) EDUCATION FUND.— 
13 
(1) IN GENERAL.—For each fiscal year, the 
14 
Governor shall use at least 61 percent of the State’s 
15 
allocation under section 13001 for the support of el16 
ementary, secondary, and postsecondary education. 
17 
(2) RESTORING 2008 STATE SUPPORT FOR EDU18 
CATION.— 
19 
(A) IN GENERAL.—The Governor shall 
20 
first use the funds described in paragraph (1)— 
21 


(i) to provide the amount of funds, 

22 


through the State’s principal elementary 

23 


and secondary funding formula, that is 

24 


needed to restore State support for elemen


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240 

1 


tary and secondary education to the fiscal 

2 


year 2008 level; and 

3 


(ii) to provide the amount of funds to 

4 


public institutions of higher education in 

5 


the State that is needed to restore State 
6 
support for postsecondary education to the 
7 
fiscal year 2008 level. 
8 
(B) SHORTFALL.—If the Governor deter9 
mines that the amount of funds available under 
10 
paragraph (1) is insufficient to restore State 
11 
support for education to the levels described in 
12 
clauses (i) and (ii) of subparagraph (A), the 
13 
Governor shall allocate those funds between 
14 
those clauses in proportion to the relative short15 
fall in State support for the education sectors 
16 
described in those clauses. 
17 
(3) SUBGRANTS TO IMPROVE BASIC PROGRAMS 
18 
OPERATED BY LOCAL EDUCATIONAL AGENCIES.— 
19 
After carrying out paragraph (2), the Governor shall 
20 
use any funds remaining under paragraph (1) to 
21 


provide local educational agencies in the State with 

22 


subgrants based on their relative shares of funding 

23 


under part A of title I of the Elementary and Sec


24 


ondary Education Act of 1965 (20 U.S.C. 6311 et 

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241 

1 


seq.) for the most recent year for which data are 

2 


available. 

3 


(b) OTHER GOVERNMENT SERVICES.—For each fis4 
cal year, the Governor may use up to 39 percent of the 
5 
State’s allocation under section 1301 for public safety and 
6 
other government services, which may include assistance 
7 
for elementary and secondary education and public institu8 
tions of higher education. 
9 
SEC. 13003. USES OF FUNDS BY LOCAL EDUCATIONAL 
10 
AGENCIES. 
11 
(a) IN GENERAL.—A local educational agency that 
12 
receives funds under this title may use the funds for any 
13 
activity authorized by the Elementary and Secondary Edu14 
cation Act of 1965 (20 U.S.C. 6301 et seq.) (‘‘ESEA’’), 
15 
the Individuals with Disabilities Education Act (20 U.S.C. 
16 
1400 et seq.) (‘‘IDEA’’), or the Carl D. Perkins Career 
17 
and Technical Education Act of 2006 (20 U.S.C. 2301 
18 
et seq.) (‘‘the Perkins Act’’). 
19 
(b) PROHIBITION.—A local educational agency may 
20 
not use funds received under this title for capital projects 
21 
unless authorized by ESEA, IDEA, or the Perkins Act. 
22 
SEC. 13004. USES OF FUNDS BY INSTITUTIONS OF HIGHER 
23 


EDUCATION. 

24 


(a) IN GENERAL.—A public institution of higher edu25 
cation that receives funds under this title shall use the 

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1 
funds for education and general expenditures, and in such 
2 
a way as to mitigate the need to raise tuition and fees 
3 
for in-State students. 
4 


(b) PROHIBITION.—An institution of higher edu5 
cation may not use funds received under this title to in6 
crease its endowment. 
7 
(c) ADDITIONAL PROHIBITION.—An institution of 
8 
higher education may not use funds received under this 
9 
title for construction, renovation, or facility repair. 
10 
SEC. 13005. STATE APPLICATIONS. 
11 
(a) IN GENERAL.—The Governor of a State desiring 
12 
to receive an allocation under section 13001 shall submit 
13 
an annual application at such time, in such manner, and 
14 
containing such information as the Secretary may reason15 
ably require. 
16 
(b) FIRST YEAR APPLICATION.—In the first of such 
17 
applications, the Governor shall— 
18 
(1) include the assurances described in sub19 
section (e); 
20 
(2) provide baseline data that demonstrates the 
21 


State’s current status in each of the areas described 

22 


in such assurances; and 

23 


(3) describe how the State intends to use its al24 
location. 

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1 


(c) SECOND YEAR APPLICATION.—In the second year 
2 
application, the Governor shall— 
3 


(1) include the assurances described in sub


4 


section (e); and 

5 


(2) describe how the State intends to use its al6 
location. 
7 
(d) INCENTIVE GRANT APPLICATION.—The Governor 
8 
of a State seeking a grant under section 13006 shall— 
9 
(1) submit an application for consideration; 
10 
(2) describe the status of the State’s progress 
11 
in each of the areas described in subsection (e), and 
12 
the strategies the State is employing to help ensure 
13 
that high-need students in the State continue mak14 
ing progress towards meeting the State’s student 
15 
academic achievement standards; 
16 
(3) describe how the State would use its grant 
17 
funding, including how it will allocate the funds to 
18 
give priority to high-need schools and local edu19 
cational agencies; and 
20 
(4) include a plan for evaluating its progress in 
21 


closing achievement gaps. 

22 


(e) ASSURANCES.—An application under subsection 
23 
(b) or (c) shall include the following assurances: 
24 


(1) MAINTENANCE OF EFFORT.— 

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1 


(A) ELEMENTARY AND SECONDARY EDU


2 


CATION.—The State will, in each of fiscal years 

3 


2009 and 2010, maintain State support for ele


4 


mentary and secondary education at least at 

5 


the level of such support in fiscal year 2006. 
6 
(B) HIGHER EDUCATION.—The State will, 
7 
in each of fiscal years 2009 and 2010, maintain 
8 
State support for public institutions of higher 
9 
education (not including support for capital 
10 
projects or for research and development) at 
11 
least at the level of such support in fiscal year 
12 
2006. 
13 
(2) ACHIEVING EQUITY IN TEACHER DISTRIBU14 
TION.—The State will take actions to comply with 
15 
section 1111(b)(8)(C) of ESEA (20 U.S.C. 
16 
6311(b)(8)(C)) in order to address inequities in the 
17 
distribution of teachers between high-and low-pov18 
erty schools, and to ensure that low-income and mi19 
nority children are not taught at higher rates than 
20 
other children by inexperienced, unqualified, or out21 


of-field teachers. 

22 


(3) IMPROVING COLLECTION AND USE OF 

23 


DATA.—The State will establish a longitudinal data 

24 


system that includes the elements described in sec


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1 


tion 6401(e)(2)(D) of the America COMPETES Act 

2 


(20 U.S.C. 9871). 

3 


(4) ASSESSMENTS.—The State— 

4 


(A) will enhance the quality of academic 

5 


assessments described in section 1111(b)(3) of 
6 
ESEA (20 U.S.C. 6311(b)(3)) through activi7 
ties such as those described in section 6112(a) 
8 
of such Act (20 U.S.C. 7301a(a)); and 
9 
(B) will comply with the requirements of 
10 
paragraphs 3(C)(ix) and (6) of section 1111(b) 
11 
of ESEA (20 U.S.C. 6311(b)) and section 
12 
612(a)(16) of IDEA (20 U.S.C. 1412(a)(16)) 
13 
related to the inclusion of children with disabil14 
ities and limited English proficient students in 
15 
State assessments, the development of valid and 
16 
reliable assessments for those students, and the 
17 
provision of accommodations that enable their 
18 
participation in State assessments. 
19 
SEC. 13006. STATE INCENTIVE GRANTS. 
20 
(a) IN GENERAL.—From the total amount reserved 
21 
under section 13001(c) that is not used for section 13007, 
22 
the Secretary shall, in fiscal year 2010, make grants to 
23 
States that have made significant progress in meeting the 
24 
objectives of paragraphs (2), (3), and (4) of section 
25 
13005(e). 

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1 


(b) BASIS FOR GRANTS.—The Secretary shall deter2 
mine which States receive grants under this section, and 
3 
the amount of those grants, on the basis of information 
4 
provided in State applications under section 13005 and 
5 
such other criteria as the Secretary determines appro6 
priate. 
7 
(c) SUBGRANTS TO LOCAL EDUCATIONAL AGEN8 
CIES.—Each State receiving a grant under this section 
9 
shall use at least 50 percent of the grant to provide local 
10 
educational agencies in the State with subgrants based on 
11 
their relative shares of funding under part A of title I of 
12 
ESEA (20 U.S.C. 6311 et seq.) for the most recent year. 
13 
SEC. 13007. INNOVATION FUND. 
14 
(a) IN GENERAL.— 
15 
(1) PROGRAM ESTABLISHED.—From the total 
16 
amount reserved under section 13001(c), the Sec17 
retary may reserve up to $325,000,000 each year to 
18 
establish an Innovation Fund, which shall consist of 
19 
academic achievement awards that recognize States, 
20 
local educational agencies, or schools that meet the 
21 


requirements described in subsection (b). 
22 
(2) BASIS FOR AWARDS.—The Secretary shall 
23 


make awards to States, local educational agencies, 

24 


or schools that have made significant gains in clos


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247 

1 


ing the achievement gap as described in subsection 

2 


(b)(1)— 

3 


(A) to allow such States, local educational 

4 


agencies, and schools to expand their work and 

5 


serve as models for best practices; 
6 
(B) to allow such States, local educational 
7 
agencies, and schools to work in partnership 
8 
with the private sector and the philanthropic 
9 
community; and 
10 
(C) to identify and document best practices 
11 
that can be shared, and taken to scale based on 
12 
demonstrated success. 
13 
(b) ELIGIBILITY.—To be eligible for such an award, 
14 
a State, local educational agency, or school shall— 
15 
(1) have significantly closed the achievement 
16 
gaps between groups of students described in section 
17 
1111(b)(2) of ESEA (20 U.S.C. 6311(b)(2)); 
18 
(2) have exceeded the State’s annual measur19 
able objectives consistent with such section 
20 
1111(b)(2) for 2 or more consecutive years or have 
21 


demonstrated success in significantly increasing stu


22 


dent academic achievement for all groups of stu


23 


dents described in such section through another 

24 


measure, such as measures described in section 

25 


1111(c)(2) of ESEA; 

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248 

1 


(3) have made significant improvement in other 

2 


areas, such as graduation rates or increased recruit


3 


ment and placement of high-quality teachers and 

4 


school leaders, as demonstrated with meaningful 

5 


data; and 
6 
(4) demonstrate that they have established 
7 
partnerships with the private sector, which may in8 
clude philanthropic organizations, and that the pri9 
vate sector will provide matching funds in order to 
10 
help bring results to scale. 
11 
SEC. 13008. STATE REPORTS. 
12 
For each year of the program under this title, a State 
13 
receiving funds under this title shall submit a report to 
14 
the Secretary, at such time and in such manner as the 
15 
Secretary may require, that describes— 
16 
(1) the uses of funds provided under this title 
17 
within the State; 
18 
(2) how the State distributed the funds it re19 
ceived under this title; 
20 
(3) the number of jobs that the Governor esti21 


mates were saved or created with funds the State re


22 


ceived under this title; 

23 


(4) tax increases that the Governor estimates 

24 


were averted because of the availability of funds 

25 


from this title; 

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1 


(5) the State’s progress in reducing inequities 

2 


in the distribution of teachers, in implementing a 

3 


State student longitudinal data system, and in devel


4 


oping and implementing valid and reliable assess


5 


ments for limited English proficient students and 
6 
children with disabilities; 
7 
(6) the tuition and fee increases for in-State 
8 
students imposed by public institutions of higher 
9 
education in the State during the period of avail10 
ability of funds under this title, and a description of 
11 
any actions taken by the State to limit those in12 
creases; and 
13 
(7) the extent to which public institutions of 
14 
higher education maintained, increased, or decreased 
15 
enrollment of in-State students, including students 
16 
eligible for Pell Grants or other need-based financial 
17 
assistance. 
18 
SEC. 13009. EVALUATION. 
19 
The Comptroller General of the United States shall 
20 
conduct evaluations of the programs under sections 13006 
21 
and 13007 which shall include, but not be limited to, the 
22 
criteria used for the awards made, the States selected for 
23 
awards, award amounts, how each State used the award 
24 
received, and the impact of this funding on the progress 
25 
made toward closing achievement gaps. 

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250 

1 
SEC. 13010. SECRETARY’S REPORT TO CONGRESS. 
2 


The Secretary shall submit a report to the Committee 
3 
on Education and Labor of the House of Representatives, 
4 
the Committee on Health, Education, Labor, and Pen5 
sions of the Senate, and the Committees on Appropria6 
tions of the House of Representatives and of the Senate, 
7 
not less than 6 months following the submission of State 
8 
reports, that evaluates the information provided in the 
9 
State reports under section 13008. 
10 
SEC. 13011. PROHIBITION ON PROVISION OF CERTAIN AS11 
SISTANCE. 
12 
No recipient of funds under this title shall use such 
13 
funds to provide financial assistance to students to attend 
14 
private elementary or secondary schools. 
15 
SEC. 13012. DEFINITIONS. 
16 
Except as otherwise provided in this title, as used in 
17 
this title— 
18 
(1) the term ‘‘institution of higher education’’ 
19 
has the meaning given such term in section 101 of 
20 
the Higher Education Act of 1965 (20 U.S.C. 
21 
1001); 
22 


(2) the term ‘‘Secretary’’ means the Secretary 

23 


of Education; 

24 


(3) the term ‘‘State’’ means each of the 50 

25 


States, the District of Columbia, and the Common


26 


wealth of Puerto Rico; and 

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251 

1 


(4) any other term used in this title that is de


2 


fined in section 9101 of ESEA (20 U.S.C. 7801) 

3 


shall have the meaning given the term in that sec4 
tion. 
5 


DIVISION B—OTHER 
6 
PROVISIONS 
7 
TITLE I—TAX PROVISIONS 
8 
SEC. 1000. SHORT TITLE, ETC. 
9 
(a) SHORT TITLE.—This title may be cited as the 
10 
‘‘American Recovery and Reinvestment Tax Act of 2009’’. 
11 
(b) REFERENCE.—Except as otherwise expressly pro12 
vided, whenever in this title an amendment or repeal is 
13 
expressed in terms of an amendment to, or repeal of, a 
14 
section or other provision, the reference shall be consid15 
ered to be made to a section or other provision of the In16 
ternal Revenue Code of 1986. 
17 
(c) TABLE OF CONTENTS.—The table of contents for 
18 
this title is as follows: 

Sec. 1000. Short title, etc. 

Subtitle A—Making Work Pay 

Sec. 1001. Making work pay credit. 

Subtitle B—Additional Tax Relief for Families With Children 

Sec. 1101. Increase in earned income tax credit. 
Sec. 1102. Increase of refundable portion of child credit. 


Subtitle C—American Opportunity Tax Credit 

Sec. 1201. American opportunity tax credit. 

Subtitle D—Housing Incentives 

Sec. 1301. Waiver of requirement to repay first-time homebuyer credit. 

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252 

Sec. 1302. Coordination of low-income housing credit and low-income housing 
grants. 
Subtitle E—Tax Incentives for Business 

PART 1—TEMPORARY INVESTMENT INCENTIVES 
Sec. 1401. Special allowance for certain property acquired during 2009. 
Sec. 1402. Temporary increase in limitations on expensing of certain depre


ciable business assets. 
PART 2—5-YEAR CARRYBACK OF OPERATING LOSSES 
Sec. 1411. 5-year carryback of operating losses. 
Sec. 1412. Exception for TARP recipients. 
PART 3—INCENTIVES FOR NEW JOBS 
Sec. 1421. Incentives to hire unemployed veterans and disconnected youth. 
PART 4—CLARIFICATION OF REGULATIONS RELATED TO LIMITATIONS ON 
CERTAIN BUILT-IN LOSSES FOLLOWING AN OWNERSHIP CHANGE 
Sec. 1431. Clarification of regulations related to limitations on certain built-in 
losses following an ownership change. 
Subtitle F—Fiscal Relief for State and Local Governments 
PART 1—IMPROVED MARKETABILITY FOR TAX-EXEMPT BONDS 
Sec. 1501. De minimis safe harbor exception for tax-exempt interest expense of 
financial institutions. 
Sec. 1502. Modification of small issuer exception to tax-exempt interest expense 
allocation rules for financial institutions. 

Sec. 1503. Temporary modification of alternative minimum tax limitations on 
tax-exempt bonds. 
PART 2—TAX CREDIT BONDS FOR SCHOOLS 

Sec. 1511. Qualified school construction bonds. 
Sec. 1512. Extension and expansion of qualified zone academy bonds. 
PART 3—TAXABLE BOND OPTION FOR GOVERNMENTAL BONDS 
Sec. 1521. Taxable bond option for governmental bonds. 

PART 4—RECOVERY ZONE BONDS 
Sec. 1531. Recovery zone bonds. 
Sec. 1532. Tribal economic development bonds. 

PART 5—REPEAL OF WITHHOLDING TAX ON GOVERNMENT CONTRACTORS 
Sec. 1541. Repeal of withholding tax on government contractors. 
Subtitle G—Energy Incentives 
PART 1—RENEWABLE ENERGY INCENTIVES 

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253 

Sec. 1601. Extension of credit for electricity produced from certain renewable 
resources. 

Sec. 1602. Election of investment credit in lieu of production credit. 

Sec. 1603. Repeal of certain limitations on credit for renewable energy property. 


Sec. 1604. Coordination with renewable energy grants. 

PART 2—INCREASED ALLOCATIONS OF NEW CLEAN RENEWABLE ENERGY 
BONDS AND QUALIFIED ENERGY CONSERVATION BONDS 


Sec. 1611. Increased limitation on issuance of new clean renewable energy 
bonds. 

Sec. 1612. Increased limitation and expansion of qualified energy conservation 
bonds. 

PART 3—ENERGY CONSERVATION INCENTIVES 

Sec. 1621. Extension and modification of credit for nonbusiness energy property. 


Sec. 1622. Modification of credit for residential energy efficient property. 

Sec. 1623. Temporary increase in credit for alternative fuel vehicle refueling 
property. 

PART 4—ENERGY RESEARCH INCENTIVES 

Sec. 1631. Increased research credit for energy research. 

Subtitle H—Other Provisions 

PART 1—APPLICATION OF CERTAIN LABOR STANDARDS TO PROJECTS 
FINANCED WITH CERTAIN TAX-FAVORED BONDS 


Sec. 1701. Application of certain labor standards to projects financed with certain 
tax-favored bonds. 

PART 2—GRANTS TO PROVIDE FINANCING FOR LOW-INCOME HOUSING 

Sec. 1711. Grants to States for low-income housing projects in lieu of low-income 
housing credit allocations for 2009. 

PART 3—GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU OF TAX 
CREDITS 


Sec. 1721. Grants for specified energy property in lieu of tax credits. 

PART 4—STUDY OF ECONOMIC, EMPLOYMENT, AND RELATED EFFECTS OF 
THIS ACT 


Sec. 1731. Study of economic, employment, and related effects of this Act. 

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1 


Subtitle A—Making Work Pay 

2 
SEC. 1001. MAKING WORK PAY CREDIT. 
3 


(a) IN GENERAL.—Subpart C of part IV of sub4 
chapter A of chapter 1 is amended by inserting after sec5 
tion 36 the following new section: 
6 
‘‘SEC. 36A. MAKING WORK PAY CREDIT. 
7 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli8 
gible individual, there shall be allowed as a credit against 
9 
the tax imposed by this subtitle for the taxable year an 
10 
amount equal to the lesser of— 
11 
‘‘(1) 6.2 percent of earned income of the tax12 
payer, or 
13 
‘‘(2) $500 ($1,000 in the case of a joint re14 
turn). 
15 
‘‘(b) LIMITATION BASED ON MODIFIED ADJUSTED 
16 
GROSS INCOME.— 
17 
‘‘(1) IN GENERAL.—The amount allowable as a 
18 
credit under subsection (a) (determined without re19 
gard to this paragraph) for the taxable year shall be 
20 
reduced (but not below zero) by 2 percent of so 
21 


much of the taxpayer’s modified adjusted gross in


22 


come as exceeds $75,000 ($150,000 in the case of 

23 


a joint return). 

24 


‘‘(2) MODIFIED ADJUSTED GROSS INCOME.— 

25 


For purposes of subparagraph (A), the term ‘modi


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255 

1 


fied adjusted gross income’ means the adjusted 

2 


gross income of the taxpayer for the taxable year in


3 


creased by any amount excluded from gross income 

4 


under section 911, 931, or 933. 

5 


‘‘(c) DEFINITIONS.—For purposes of this section— 
6 
‘‘(1) ELIGIBLE INDIVIDUAL.—The term ‘eligible 
7 
individual’ means any individual other than— 
8 
‘‘(A) any nonresident alien individual, 
9 
‘‘(B) any individual with respect to whom 
10 
a deduction under section 151 is allowable to 
11 
another taxpayer for a taxable year beginning 
12 
in the calendar year in which the individual’s 
13 
taxable year begins, and 
14 
‘‘(C) an estate or trust. 
15 
Such term shall not include any individual unless the 
16 
requirements of section 32(c)(1)(E) are met with re17 
spect to such individual. 
18 
‘‘(2) EARNED INCOME.—The term ‘earned in19 
come’ has the meaning given such term by section 
20 
32(c)(2), except that such term shall not include net 
21 


earnings from self-employment which are not taken 

22 


into account in computing taxable income. For pur


23 


poses of the preceding sentence, any amount ex


24 


cluded from gross income by reason of section 112 

25 


shall be treated as earned income which is taken 

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256 

1 


into account in computing taxable income for the 

2 


taxable year. 

3 


‘‘(d) TERMINATION.—This section shall not apply to 
4 
taxable years beginning after December 31, 2010.’’. 
5 


(b) TREATMENT OF POSSESSIONS.— 
6 
(1) PAYMENTS TO POSSESSIONS.— 
7 
(A) MIRROR CODE POSSESSION.—The Sec8 
retary of the Treasury shall pay to each posses9 
sion of the United States with a mirror code 
10 
tax system amounts equal to the loss to that 
11 
possession by reason of the amendments made 
12 
by this section with respect to taxable years be13 
ginning in 2009 and 2010. Such amounts shall 
14 
be determined by the Secretary of the Treasury 
15 
based on information provided by the govern16 
ment of the respective possession. 
17 
(B) OTHER POSSESSIONS.—The Secretary 
18 
of the Treasury shall pay to each possession of 
19 
the United States which does not have a mirror 
20 
code tax system amounts estimated by the Sec21 


retary of the Treasury as being equal to the ag


22 


gregate benefits that would have been provided 

23 


to residents of such possession by reason of the 

24 


amendments made by this section for taxable 

25 


years beginning in 2009 and 2010 if a mirror 

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257 

1 


code tax system had been in effect in such pos


2 


session. The preceding sentence shall not apply 

3 


with respect to any possession of the United 

4 


States unless such possession has a plan, which 

5 


has been approved by the Secretary of the 
6 
Treasury, under which such possession will 
7 
promptly distribute such payments to the resi8 
dents of such possession. 
9 
(2) COORDINATION WITH CREDIT ALLOWED 
10 
AGAINST UNITED STATES INCOME TAXES.—No cred11 
it shall be allowed against United States income 
12 
taxes for any taxable year under section 36A of the 
13 
Internal Revenue Code of 1986 (as added by this 
14 
section) to any person— 
15 
(A) to whom a credit is allowed against 
16 
taxes imposed by the possession by reason of 
17 
the amendments made by this section for such 
18 
taxable year, or 
19 
(B) who is eligible for a payment under a 
20 
plan described in paragraph (1)(B) with respect 
21 


to such taxable year. 

22 


(3) DEFINITIONS AND SPECIAL RULES.— 
23 
(A) POSSESSION OF THE UNITED 
24 


STATES.—For purposes of this subsection, the 

25 


term ‘‘possession of the United States’’ includes 

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258 


1 


the Commonwealth of Puerto Rico and the 

2 


Commonwealth of the Northern Mariana Is


3 


lands. 

4 


(B) MIRROR CODE TAX SYSTEM.—For pur


5 


poses of this subsection, the term ‘‘mirror code 
6 
tax system’’ means, with respect to any posses7 
sion of the United States, the income tax sys8 
tem of such possession if the income tax liabil9 
ity of the residents of such possession under 
10 
such system is determined by reference to the 
11 
income tax laws of the United States as if such 
12 
possession were the United States. 
13 
(C) TREATMENT OF PAYMENTS.—For pur14 
poses of section 1324(b)(2) of title 31, United 
15 
States Code, the payments under this sub16 
section shall be treated in the same manner as 
17 
a refund due from the credit allowed under sec18 
tion 36A of the Internal Revenue Code of 1986 
19 
(as added by this section). 
20 
(c) REFUNDS DISREGARDED IN THE ADMINISTRA21 
TION OF FEDERAL PROGRAMS AND FEDERALLY AS22 
SISTED PROGRAMS.—Any credit or refund allowed or 
23 
made to any individual by reason of section 36A of the 
24 
Internal Revenue Code of 1986 (as added by this section) 
25 
or by reason of subsection (b) of this section shall not be 

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259 
1 
taken into account as income and shall not be taken into 
2 
account as resources for the month of receipt and the fol3 
lowing 2 months, for purposes of determining the eligi4 
bility of such individual or any other individual for benefits 
5 
or assistance, or the amount or extent of benefits or assist6 
ance, under any Federal program or under any State or 
7 
local program financed in whole or in part with Federal 
8 
funds. 
9 
(d) CONFORMING AMENDMENTS.— 
10 
(1) Section 6211(b)(4)(A) is amended by insert11 
ing ‘‘36A,’’ after ‘‘36,’’. 
12 
(2) Section 1324(b)(2) of title 31, United 
13 
States Code, is amended by inserting ‘‘36A,’’ after 
14 
‘‘36,’’. 
15 
(3) The table of sections for subpart C of part 
16 
IV of subchapter A of chapter 1 is amended by in17 
serting after the item relating to section 36 the fol18 
lowing new item: 

‘‘Sec. 36A. Making work pay credit.’’. 

19 
(e) EFFECTIVE DATE.—This section shall apply to 
20 
taxable years beginning after December 31, 2008. 

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260 

1 


Subtitle B—Additional Tax Relief 

2 


for Families With Children 

3 
SEC. 1101. INCREASE IN EARNED INCOME TAX CREDIT. 
4 


(a) IN GENERAL.—Subsection (b) of section 32 is 
5 
amended by adding at the end the following new para6 
graph: 
7 
‘‘(3) SPECIAL RULES FOR 2009 AND 2010.—In 
8 
the case of any taxable year beginning in 2009 or 
9 
2010— 
10 
‘‘(A) INCREASED CREDIT PERCENTAGE 
11 
FOR 3 OR MORE QUALIFYING CHILDREN.—In 
12 
the case of a taxpayer with 3 or more qualifying 
13 
children, the credit percentage is 45 percent. 
14 
‘‘(B) REDUCTION OF MARRIAGE PEN15 
ALTY.— 
16 
‘‘(i) IN GENERAL.—The dollar amount 
17 
in effect under paragraph (2)(B) shall be 
18 
$5,000. 
19 
‘‘(ii) INFLATION ADJUSTMENT.—In 
20 
the case of any taxable year beginning in 
21 


2010, the $5,000 amount in clause (i) 

22 


shall be increased by an amount equal to— 

23 


‘‘(I) such dollar amount, multi24 
plied by 

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261 

1 


‘‘(II) the cost of living adjust


2 


ment determined under section 1(f)(3) 

3 


for the calendar year in which the tax


4 


able year begins determined by sub


5 


stituting ‘calendar year 2008’ for ‘cal6 
endar year 1992’ in subparagraph (B) 
7 
thereof. 
8 
‘‘(iii) ROUNDING.—Subparagraph (A) 
9 
of subsection (j)(2) shall apply after taking 
10 
into account any increase under clause 
11 
(ii).’’. 
12 
(b) EFFECTIVE DATE.—The amendments made by 
13 
this section shall apply to taxable years beginning after 
14 
December 31, 2008. 
15 
SEC. 1102. INCREASE OF REFUNDABLE PORTION OF CHILD 
16 
CREDIT. 
17 
(a) IN GENERAL.—Paragraph (4) of section 24(d) is 
18 
amended to read as follows: 
19 
‘‘(4) SPECIAL RULE FOR 2009 AND 2010.—Not20 
withstanding paragraph (3), in the case of any tax21 


able year beginning in 2009 or 2010, the dollar 

22 


amount in effect for such taxable year under para


23 


graph (1)(B)(i) shall be zero.’’. 

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262 

1 


(b) EFFECTIVE DATE.—The amendments made by 
2 
this section shall apply to taxable years beginning after 
3 
December 31, 2008. 
4 


Subtitle C—American Opportunity 

5 


Tax Credit 

6 
SEC. 1201. AMERICAN OPPORTUNITY TAX CREDIT. 
7 
(a) IN GENERAL.—Section 25A (relating to Hope 
8 
scholarship credit) is amended by redesignating subsection 
9 
(i) as subsection (j) and by inserting after subsection (h) 
10 
the following new subsection: 
11 
‘‘(i) AMERICAN OPPORTUNITY TAX CREDIT.—In the 
12 
case of any taxable year beginning in 2009 or 2010— 
13 
‘‘(1) INCREASE IN CREDIT.—The Hope Scholar14 
ship Credit shall be an amount equal to the sum 
15 
of— 
16 
‘‘(A) 100 percent of so much of the quali17 
fied tuition and related expenses paid by the 
18 
taxpayer during the taxable year (for education 
19 
furnished to the eligible student during any 
20 
academic period beginning in such taxable year) 
21 


as does not exceed $2,000, plus 

22 


‘‘(B) 25 percent of such expenses so paid 

23 


as exceeds $2,000 but does not exceed $4,000. 

24 


‘‘(2) CREDIT ALLOWED FOR FIRST 4 YEARS OF 

25 


POST-SECONDARY EDUCATION.—Subparagraphs (A) 

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263 

1 


and (C) of subsection (b)(2) shall be applied by sub


2 


stituting ‘4’ for ‘2’. 
3 
‘‘(3) QUALIFIED TUITION AND RELATED EX4 


PENSES TO INCLUDE REQUIRED COURSE MATE


5 


RIALS.—Subsection (f)(1)(A) shall be applied by 
6 
substituting ‘tuition, fees, and course materials’ for 
7 
‘tuition and fees’. 
8 
‘‘(4) INCREASE IN AGI LIMITS FOR HOPE 
9 
SCHOLARSHIP CREDIT.—In lieu of applying sub10 
section (d) with respect to the Hope Scholarship 
11 
Credit, such credit (determined without regard to 
12 
this paragraph) shall be reduced (but not below 
13 
zero) by the amount which bears the same ratio to 
14 
such credit (as so determined) as— 
15 
‘‘(A) the excess of— 
16 
‘‘(i) the taxpayer’s modified adjusted 
17 
gross income (as defined in subsection 
18 
(d)(3)) for such taxable year, over 
19 
‘‘(ii) $80,000 ($160,000 in the case of 
20 
a joint return), bears to 
21 


‘‘(B) $10,000 ($20,000 in the case of a 

22 


joint return). 

23 


‘‘(5) CREDIT ALLOWED AGAINST ALTERNATIVE 

24 


MINIMUM TAX.—In the case of a taxable year to 

25 


which section 26(a)(2) does not apply, so much of 

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264 

1 


the credit allowed under subsection (a) as is attrib


2 


utable to the Hope Scholarship Credit shall not ex


3 


ceed the excess of— 

4 


‘‘(A) the sum of the regular tax liability 

5 


(as defined in section 26(b)) plus the tax im6 
posed by section 55, over 
7 
‘‘(B) the sum of the credits allowable 
8 
under this subpart (other than this subsection 
9 
and sections 23, 25D, and 30D) and section 27 
10 
for the taxable year. 
11 
Any reference in this section or section 24, 25, 26, 
12 
25B, 904, or 1400C to a credit allowable under this 
13 
subsection shall be treated as a reference to so much 
14 
of the credit allowable under subsection (a) as is at15 
tributable to the Hope Scholarship Credit. 
16 
‘‘(6) PORTION OF CREDIT MADE REFUND17 
ABLE.—40 percent of so much of the credit allowed 
18 
under subsection (a) as is attributable to the Hope 
19 
Scholarship Credit (determined after application of 
20 
paragraph (4) and without regard to this paragraph 
21 


and section 26(a)(2) or paragraph (5), as the case 

22 


may be) shall be treated as a credit allowable under 

23 


subpart C (and not allowed under subsection (a)). 

24 


The preceding sentence shall not apply to any tax


25 


payer for any taxable year if such taxpayer is a child 

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265 

1 


to whom subsection (g) of section 1 applies for such 

2 


taxable year. 

3 


‘‘(7) COORDINATION WITH MIDWESTERN DIS


4 


ASTER AREA BENEFITS.—In the case of a taxpayer 

5 


with respect to whom section 702(a)(1)(B) of the 
6 
Heartland Disaster Tax Relief Act of 2008 applies 
7 
for any taxable year, such taxpayer may elect to 
8 
waive the application of this subsection to such tax9 
payer for such taxable year.’’. 
10 
(b) CONFORMING AMENDMENTS.— 
11 
(1) Section 24(b)(3)(B) is amended by inserting 
12 
‘‘25A(i),’’ after ‘‘23,’’. 
13 
(2) Section 25(e)(1)(C)(ii) is amended by in14 
serting ‘‘25A(i),’’ after ‘‘24,’’. 
15 
(3) Section 26(a)(1) is amended by inserting 
16 
‘‘25A(i),’’ after ‘‘24,’’. 
17 
(4) Section 25B(g)(2) is amended by inserting 
18 
‘‘25A(i),’’ after ‘‘23,’’. 
19 
(5) Section 904(i) is amended by inserting 
20 
‘‘25A(i),’’ after ‘‘24,’’. 
21 


(6) Section 1400C(d)(2) is amended by insert


22 


ing ‘‘25A(i),’’ after ‘‘24,’’. 

23 


(7) Section 1324(b)(2) of title 31, United 

24 


States Code, is amended by inserting ‘‘25A,’’ before 
25 
‘‘35’’. 

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266 

1 


(c) EFFECTIVE DATE.—The amendments made by 
2 
this section shall apply to taxable years beginning after 
3 
December 31, 2008. 
4 
(d) APPLICATION OF EGTRRA SUNSET.—The 
5 
amendment made by subsection (b)(1) shall be subject to 
6 
title IX of the Economic Growth and Tax Relief Reconcili7 
ation Act of 2001 in the same manner as the provision 
8 
of such Act to which such amendment relates. 
9 
(e) TREASURY STUDIES REGARDING EDUCATION IN10 
CENTIVES.— 
11 
(1) STUDY REGARDING COORDINATION WITH 
12 
NON-TAX EDUCATIONAL INCENTIVES.—The Sec13 
retary of the Treasury, or the Secretary’s delegate, 
14 
shall study how to coordinate the credit allowed 
15 
under section 25A of the Internal Revenue Code of 
16 
1986 with the Federal Pell Grant program under 
17 
section 401 of the Higher Education Act of 1965. 
18 
(2) STUDY REGARDING IMPOSITION OF COMMU19 
NITY SERVICE REQUIREMENTS.—The Secretary of 
20 
the Treasury, or the Secretary’s delegate, shall study 
21 


the feasibility of requiring students to perform com


22 


munity service as a condition of taking their tuition 

23 


and related expenses into account under section 25A 

24 


of the Internal Revenue Code of 1986. 

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267 

1 


(3) REPORT.—Not later than 1 year after the 

2 


date of the enactment of this Act, the Secretary of 

3 


the Treasury, or the Secretary’s delegate, shall re


4 


port to Congress on the results of the studies con


5 


ducted under this paragraph. 

6 
Subtitle D—Housing Incentives 

7 
SEC. 1301. WAIVER OF REQUIREMENT TO REPAY FIRST


8 
TIME HOMEBUYER CREDIT. 

9 
(a) IN GENERAL.—Paragraph (4) of section 36(f) is 
10 
amended by adding at the end the following new subpara11 
graph: 
12 
‘‘(D) WAIVER OF RECAPTURE FOR PUR13 
CHASES IN 2009.—In the case of any credit al14 
lowed with respect to the purchase of a prin15 
cipal residence after December 31, 2008, and 
16 
before July 1, 2009— 
17 
‘‘(i) paragraph (1) shall not apply, 
18 
and 
19 
‘‘(ii) paragraph (2) shall apply only if 
20 
the disposition or cessation described in 
21 


paragraph (2) with respect to such resi


22 


dence occurs during the 36-month period 

23 


beginning on the date of the purchase of 

24 


such residence by the taxpayer.’’. 

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268 

1 


(b) CONFORMING AMENDMENT.—Subsection (g) of 
2 
section 36 is amended by striking ‘‘subsection (c)’’ and 
3 
inserting ‘‘subsections (c) and (f)(4)(D)’’. 
4 


(c) EFFECTIVE DATE.—The amendments made by 
5 
this section shall apply to residences purchased after De6 
cember 31, 2008. 
7 
SEC. 1302. COORDINATION OF LOW-INCOME HOUSING 
8 
CREDIT AND LOW-INCOME HOUSING GRANTS. 
9 
Subsection (i) of section 42 of the Internal Revenue 
10 
Code of 1986 is amended by adding at the end the fol11 
lowing new paragraph: 
12 
‘‘(9) COORDINATION WITH LOW-INCOME HOUS13 
ING GRANTS.— 
14 
‘‘(A) REDUCTION IN STATE HOUSING 
15 
CREDIT CEILING FOR LOW-INCOME HOUSING 
16 
GRANTS RECEIVED IN 2009.—For purposes of 
17 
this section, the amounts described in clauses 
18 
(i) through (iv) of subsection (h)(3)(C) with re19 
spect to any State for 2009 shall each be re20 
duced by so much of such amount as is taken 
21 


into account in determining the amount of any 

22 


grant to such State under section 1711 of the 

23 


American Recovery and Reinvestment Tax Act 
24 
of 2009. 

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269 

1 


‘‘(B) SPECIAL RULE FOR BASIS.—Basis of 

2 


a qualified low-income building shall not be re


3 


duced by the amount of any grant described in 

4 


subparagraph (A).’’. 

5 


Subtitle E—Tax Incentives for 
6 
Business 
7 
PART 1—TEMPORARY INVESTMENT INCENTIVES 
8 
SEC. 1401. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY 
9 
ACQUIRED DURING 2009. 
10 
(a) IN GENERAL.—Paragraph (2) of section 168(k) 
11 
is amended— 
12 
(1) by striking ‘‘January 1, 2010’’ and insert13 
ing ‘‘January 1, 2011’’, and 
14 
(2) by striking ‘‘January 1, 2009’’ each place 
15 
it appears and inserting ‘‘January 1, 2010’’. 
16 
(b) CONFORMING AMENDMENTS.— 
17 
(1) The heading for subsection (k) of section 
18 
168 is amended by striking ‘‘JANUARY 1, 2009’’ and 
19 
inserting ‘‘JANUARY 1, 2010’’. 
20 
(2) The heading for clause (ii) of section 
21 


168(k)(2)(B) is amended by striking ‘‘PRE-JANUARY 

22 


1, 2009’’ and inserting ‘‘PRE-JANUARY 1, 2010’’. 

23 


(3) Subparagraph (D) of section 168(k)(4) is 

24 


amended— 

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270 

1 


(A) by striking ‘‘and’’ at the end of clause 
2 
(i), 
3 


(B) by redesignating clause (ii) as clause 

4 


(v), and 

5 


(C) by inserting after clause (i) the fol6 
lowing new clauses: 
7 
‘‘(ii) ‘April 1, 2008’ shall be sub8 
stituted for ‘January 1, 2008’ in subpara9 
graph (A)(iii)(I) thereof, 
10 
‘‘(iii) ‘January 1, 2009’ shall be sub11 
stituted for ‘January 1, 2010’ each place it 
12 
appears, 
13 
‘‘(iv) ‘January 1, 2010’ shall be sub14 
stituted for ‘January 1, 2011’ in subpara15 
graph (A)(iv) thereof, and’’. 
16 
(4) Subparagraph (B) of section 168(l)(5) is 
17 
amended by striking ‘‘January 1, 2009’’ and insert18 
ing ‘‘January 1, 2010’’. 
19 
(5) Subparagraph (B) of section 1400N(d)(3) 
20 
is amended by striking ‘‘January 1, 2009’’ and in21 


serting ‘‘January 1, 2010’’. 

22 


(c) EFFECTIVE DATES.— 

23 


(1) IN GENERAL.—Except as provided in para


24 


graph (2), the amendments made by this section 

25 


shall apply to property placed in service after De


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271 

1 


cember 31, 2008, in taxable years ending after such 
2 
date. 
3 
(2) TECHNICAL AMENDMENT.—Section 
4 


168(k)(4)(D)(ii) of the Internal Revenue Code of 

5 


1986, as added by subsection (b)(3)(C), shall apply 
6 
to taxable years ending after March 31, 2008. 
7 
SEC. 1402. TEMPORARY INCREASE IN LIMITATIONS ON EX8 
PENSING OF CERTAIN DEPRECIABLE BUSI9 
NESS ASSETS. 
10 
(a) IN GENERAL.—Paragraph (7) of section 179(b) 
11 
is amended— 
12 
(1) by striking ‘‘2008’’ and inserting ‘‘2008, or 
13 
2009’’, and 
14 
(2) by striking ‘‘2008’’ in the heading thereof 
15 
and inserting ‘‘2008, AND 2009’’. 
16 
(b) EFFECTIVE DATE.—The amendments made by 
17 
this section shall apply to taxable years beginning after 
18 
December 31, 2008. 
19 
PART 2—5-YEAR CARRYBACK OF OPERATING 
20 
LOSSES 
21 
SEC. 1411. 5-YEAR CARRYBACK OF OPERATING LOSSES. 
22 


(a) IN GENERAL.—Subparagraph (H) of section 
23 
172(b)(1) is amended to read as follows: 
24 


‘‘(H) CARRYBACK FOR 2008 AND 2009 NET 

25 


OPERATING LOSSES.— 

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272 

1 


‘‘(i) IN GENERAL.—In the case of an 

2 


applicable 2008 or 2009 net operating loss 

3 


with respect to which the taxpayer has 

4 


elected the application of this subpara


5 


graph— 
6 
‘‘(I) such net operating loss shall 
7 
be reduced by 10 percent of such loss 
8 
(determined without regard to this 
9 
subparagraph), 
10 
‘‘(II) subparagraph (A)(i) shall 
11 
be applied by substituting any whole 
12 
number elected by the taxpayer which 
13 
is more than 2 and less than 6 for ‘2’, 
14 
‘‘(III) subparagraph (E)(ii) shall 
15 
be applied by substituting the whole 
16 
number which is one less than the 
17 
whole number substituted under sub18 
clause (II) for ‘2’, and 
19 
‘‘(IV) subparagraph (F) shall not 
20 
apply. 
21 


‘‘(ii) APPLICABLE 2008 OR 2009 NET 

22 


OPERATING LOSS.—For purposes of this 

23 


subparagraph, the term ‘applicable 2008 

24 


or 2009 net operating loss’ means— 

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273 

1 


‘‘(I) the taxpayer’s net operating 

2 


loss for any taxable year ending in 

3 


2008 or 2009, or 

4 


‘‘(II) if the taxpayer elects to 

5 


have this subclause apply in lieu of 
6 
subclause (I), the taxpayer’s net oper7 
ating loss for any taxable year begin8 
ning in 2008 or 2009. 
9 
‘‘(iii) ELECTION.—Any election under 
10 
this subparagraph shall be made in such 
11 
manner as may be prescribed by the Sec12 
retary, and shall be made by the due date 
13 
(including extension of time) for filing the 
14 
taxpayer’s return for the taxable year of 
15 
the net operating loss. Any such election, 
16 
once made, shall be irrevocable. 
17 
‘‘(iv) COORDINATION WITH ALTER18 
NATIVE TAX NET OPERATING LOSS DEDUC19 
TION.—In the case of a taxpayer who 
20 
elects to have clause (ii)(II) apply, section 
21 


56(d)(1)(A)(ii) shall be applied by sub


22 


stituting ‘ending during 2001 or 2002 or 

23 


beginning during 2008 or 2009’ for ‘end


24 


ing during 2001, 2002, 2008, or 2009’.’’. 

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274 

1 


(b) ALTERNATIVE TAX NET OPERATING LOSS DE2 
DUCTION.—Subclause (I) of section 56(d)(1)(A)(ii) is 
3 
amended to read as follows: 
4 


‘‘(I) the amount of such deduc


5 


tion attributable to the sum of 
6 
carrybacks of net operating losses 
7 
from taxable years ending during 
8 
2001, 2002, 2008, or 2009 and 
9 
carryovers of net operating losses to 
10 
such taxable years, or’’. 
11 
(c) LOSS FROM OPERATIONS OF LIFE INSURANCE 
12 
COMPANIES.—Subsection (b) of section 810 is amended 
13 
by adding at the end the following new paragraph: 
14 
‘‘(4) CARRYBACK FOR 2008 AND 2009 LOSSES.— 
15 
‘‘(A) IN GENERAL.—In the case of an ap16 
plicable 2008 or 2009 loss from operations with 
17 
respect to which the taxpayer has elected the 
18 
application of this paragraph— 
19 
‘‘(i) such loss from operations shall be 
20 
reduced by 10 percent of such loss (deter21 


mined without regard to this paragraph), 
22 
and 
23 


‘‘(ii) paragraph (1)(A) shall be ap


24 


plied, at the election of the taxpayer, by 

25 


substituting ‘5’ or ‘4’ for ‘3’. 

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275 

1 


‘‘(B) APPLICABLE 2008 OR 2009 LOSS FROM 

2 


OPERATIONS.—For purposes of this paragraph, 

3 


the term ‘applicable 2008 or 2009 loss from op


4 


erations’ means— 

5 


‘‘(i) the taxpayer’s loss from oper6 
ations for any taxable year ending in 2008 
7 
or 2009, or 
8 
‘‘(ii) if the taxpayer elects to have this 
9 
clause apply in lieu of clause (i), the tax10 
payer’s loss from operations for any tax11 
able year beginning in 2008 or 2009. 
12 
‘‘(C) ELECTION.—Any election under this 
13 
paragraph shall be made in such manner as 
14 
may be prescribed by the Secretary, and shall 
15 
be made by the due date (including extension of 
16 
time) for filing the taxpayer’s return for the 
17 
taxable year of the loss from operations. Any 
18 
such election, once made, shall be irrevocable. 
19 
‘‘(D) COORDINATION WITH ALTERNATIVE 
20 
TAX NET OPERATING LOSS DEDUCTION.—In the 
21 


case of a taxpayer who elects to have subpara


22 


graph (B)(ii) apply, section 56(d)(1)(A)(ii) shall 

23 


be applied by substituting ‘ending during 2001 

24 


or 2002 or beginning during 2008 or 2009’ for 

25 


‘ending during 2001, 2002, 2008, or 2009’.’’. 

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276 

1 


(d) CONFORMING AMENDMENT.—Section 172 is 
2 
amended by striking subsection (k). 
3 


(e) EFFECTIVE DATE.— 

4 


(1) IN GENERAL.—Except as otherwise pro


5 


vided in this subsection, the amendments made by 
6 
this section shall apply to net operating losses aris7 
ing in taxable years ending after December 31, 
8 
2007. 
9 
(2) ALTERNATIVE TAX NET OPERATING LOSS 
10 
DEDUCTION.—The amendment made by subsection 
11 
(b) shall apply to taxable years ending after 1997. 
12 
(3) LOSS FROM OPERATIONS OF LIFE INSUR13 
ANCE COMPANIES.—The amendment made by sub14 
section (d) shall apply to losses from operations aris15 
ing in taxable years ending after December 31, 
16 
2007. 
17 
(4) TRANSITIONAL RULE.—In the case of a net 
18 
operating loss (or, in the case of a life insurance 
19 
company, a loss from operations) for a taxable year 
20 
ending before the date of the enactment of this 
21 
Act— 
22 


(A) any election made under section 

23 


172(b)(3) or 810(b)(3) of the Internal Revenue 

24 


Code of 1986 with respect to such loss may 

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277 


1 


(notwithstanding such section) be revoked be


2 


fore the applicable date, 

3 


(B) any election made under section 

4 


172(b)(1)(H) or 810(b)(4) of such Code with 

5 


respect to such loss shall (notwithstanding such 
6 
section) be treated as timely made if made be7 
fore the applicable date, and 
8 
(C) any application under section 6411(a) 
9 
of such Code with respect to such loss shall be 
10 
treated as timely filed if filed before the appli11 
cable date. 
12 
For purposes of this paragraph, the term ‘‘applica13 
ble date’’ means the date which is 60 days after the 
14 
date of the enactment of this Act. 
15 
SEC. 1412. EXCEPTION FOR TARP RECIPIENTS. 
16 
The amendments made by this part shall not apply 
17 
to— 
18 
(1) any taxpayer if— 
19 
(A) the Federal Government acquires, at 
20 
any time, an equity interest in the taxpayer 
21 


pursuant to the Emergency Economic Stabiliza


22 


tion Act of 2008, or 

23 


(B) the Federal Government acquires, at 

24 


any time, any warrant (or other right) to ac


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278 

1 


quire any equity interest with respect to the 

2 


taxpayer pursuant to such Act, 

3 


(2) the Federal National Mortgage Association 

4 


and the Federal Home Loan Mortgage Corporation, 
5 
and 
6 
(3) any taxpayer which at any time in 2008 or 
7 
2009 is a member of the same affiliated group (as 
8 
defined in section 1504 of the Internal Revenue 
9 
Code of 1986, determined without regard to sub10 
section (b) thereof) as a taxpayer described in para11 
graph (1) or (2). 
12 
PART 3—INCENTIVES FOR NEW JOBS 
13 
SEC. 1421. INCENTIVES TO HIRE UNEMPLOYED VETERANS 
14 
AND DISCONNECTED YOUTH. 
15 
(a) IN GENERAL.—Subsection (d) of section 51 is 
16 
amended by adding at the end the following new para17 
graph: 
18 
‘‘(14) CREDIT ALLOWED FOR UNEMPLOYED 
19 
VETERANS AND DISCONNECTED YOUTH HIRED IN 
20 
2009 OR 2010.— 
21 


‘‘(A) IN GENERAL.—Any unemployed vet


22 


eran or disconnected youth who begins work for 

23 


the employer during 2009 or 2010 shall be 

24 


treated as a member of a targeted group for 

25 


purposes of this subpart. 

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279 

1 


‘‘(B) DEFINITIONS.—For purposes of this 

2 


paragraph— 
3 
‘‘(i) UNEMPLOYED VETERAN.—The 
4 


term ‘unemployed veteran’ means any vet


5 


eran (as defined in paragraph (3)(B), de6 
termined without regard to clause (ii) 
7 
thereof) who is certified by the designated 
8 
local agency as— 
9 
‘‘(I) having been discharged or 
10 
released from active duty in the 
11 
Armed Forces during 2008, 2009, or 
12 
2010, and 
13 
‘‘(II) being in receipt of unem14 
ployment compensation under State or 
15 
Federal law for not less than 4 weeks 
16 
during the 1-year period ending on 
17 
the hiring date. 
18 
‘‘(ii) DISCONNECTED YOUTH.—The 
19 
term ‘disconnected youth’ means any indi20 
vidual who is certified by the designated 
21 


local agency— 

22 


‘‘(I) as having attained age 16 

23 


but not age 25 on the hiring date, 

24 


‘‘(II) as not regularly attending 

25 


any secondary, technical, or post-sec


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280 

1 


ondary school during the 6-month pe


2 


riod preceding the hiring date, 

3 


‘‘(III) as not regularly employed 

4 


during such 6-month period, and 

5 


‘‘(IV) as not readily employable 
6 
by reason of lacking a sufficient num7 
ber of basic skills.’’. 
8 
(b) EFFECTIVE DATE.—The amendments made by 
9 
this section shall apply to individuals who begin work for 
10 
the employer after December 31, 2008. 
11 
PART 4—CLARIFICATION OF REGULATIONS RE12 
LATED TO LIMITATIONS ON CERTAIN BUILT13 
IN LOSSES FOLLOWING AN OWNERSHIP 
14 
CHANGE 
15 
SEC. 1431. CLARIFICATION OF REGULATIONS RELATED TO 
16 
LIMITATIONS ON CERTAIN BUILT-IN LOSSES 
17 
FOLLOWING AN OWNERSHIP CHANGE. 
18 
(a) FINDINGS.—Congress finds as follows: 
19 
(1) The delegation of authority to the Secretary 
20 
of the Treasury under section 382(m) of the Inter21 


nal Revenue Code of 1986 does not authorize the 

22 


Secretary to provide exemptions or special rules that 

23 


are restricted to particular industries or classes of 

24 


taxpayers. 

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281 

1 


(2) Internal Revenue Service Notice 2008–83 is 

2 


inconsistent with the congressional intent in enact


3 


ing such section 382(m). 

4 


(3) The legal authority to prescribe Internal 

5 


Revenue Service Notice 2008–83 is doubtful. 
6 
(4) However, as taxpayers should generally be 
7 
able to rely on guidance issued by the Secretary of 
8 
the Treasury legislation is necessary to clarify the 
9 
force and effect of Internal Revenue Service Notice 
10 
2008–83 and restore the proper application under 
11 
the Internal Revenue Code of 1986 of the limitation 
12 
on built-in losses following an ownership change of 
13 
a bank. 
14 
(b) DETERMINATION OF FORCE AND EFFECT OF IN15 
TERNAL REVENUE SERVICE NOTICE 2008–83 EXEMPT16 
ING BANKS FROM LIMITATION ON CERTAIN BUILT–IN 
17 
LOSSES FOLLOWING OWNERSHIP CHANGE.— 
18 
(1) IN GENERAL.—Internal Revenue Service 
19 
Notice 2008–83— 
20 
(A) shall be deemed to have the force and 
21 


effect of law with respect to any ownership 

22 


change (as defined in section 382(g) of the In


23 


ternal Revenue Code of 1986) occurring on or 

24 


before January 16, 2009, and 

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1 


(B) shall have no force or effect with re


2 


spect to any ownership change after such date. 
3 
(2) BINDING CONTRACTS.—Notwithstanding 
4 


paragraph (1), Internal Revenue Service Notice 

5 


2008–83 shall have the force and effect of law with 
6 
respect to any ownership change (as so defined) 
7 
which occurs after January 16, 2009 if such 
8 
change— 
9 
(A) is pursuant to a written binding con10 
tract entered into on or before such date, or 
11 
(B) is pursuant to a written agreement en12 
tered into on or before such date and such 
13 
agreement was described on or before such date 
14 
in a public announcement or in a filing with the 
15 
Securities and Exchange Commission required 
16 
by reason of such ownership change. 

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1 


Subtitle F—Fiscal Relief for State 

2 


and Local Governments 

3 


PART 1—IMPROVED MARKETABILITY FOR TAX


4 


EXEMPT BONDS 
5 
SEC. 1501. DE MINIMIS SAFE HARBOR EXCEPTION FOR TAX6 
EXEMPT INTEREST EXPENSE OF FINANCIAL 
7 
INSTITUTIONS. 
8 
(a) IN GENERAL.—Subsection (b) of section 265 is 
9 
amended by adding at the end the following new para10 
graph: 
11 
‘‘(7) DE MINIMIS EXCEPTION FOR BONDS 
12 
ISSUED DURING 2009 OR 2010.— 
13 
‘‘(A) IN GENERAL.—In applying paragraph 
14 
(2)(A), there shall not be taken into account 
15 
tax-exempt obligations issued during 2009 or 
16 
2010. 
17 
‘‘(B) LIMITATION.—The amount of tax-ex18 
empt obligations not taken into account by rea19 
son of subparagraph (A) shall not exceed 2 per20 
cent of the amount determined under para21 


graph (2)(B). 

22 


‘‘(C) REFUNDINGS.—For purposes of this 

23 


paragraph, a refunding bond (whether a current 

24 


or advance refunding) shall be treated as issued 

25 


on the date of the issuance of the refunded 

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1 


bond (or in the case of a series of refundings, 

2 


the original bond).’’. 

3 


(b) TREATMENT AS FINANCIAL INSTITUTION PREF4 
ERENCE ITEM.—Clause (iv) of section 291(e)(1)(B) is 
5 
amended by adding at the end the following: ‘‘That por6 
tion of any obligation not taken into account under para7 
graph (2)(A) of section 265(b) by reason of paragraph (7) 
8 
of such section shall be treated for purposes of this section 
9 
as having been acquired on August 7, 1986.’’. 
10 
(c) EFFECTIVE DATE.—The amendments made by 
11 
this section shall apply to obligations issued after Decem12 
ber 31, 2008. 
13 
SEC. 1502. MODIFICATION OF SMALL ISSUER EXCEPTION 
14 
TO TAX-EXEMPT INTEREST EXPENSE ALLOCA15 
TION RULES FOR FINANCIAL INSTITUTIONS. 
16 
(a) IN GENERAL.—Paragraph (3) of section 265(b) 
17 
(relating to exception for certain tax-exempt obligations) 
18 
is amended by adding at the end the following new sub19 
paragraph: 
20 
‘‘(G) SPECIAL RULES FOR OBLIGATIONS 
21 


ISSUED DURING 2009 AND 2010.— 
22 
‘‘(i) INCREASE IN LIMITATION.—In 
23 


the case of obligations issued during 2009 

24 


or 2010, subparagraphs (C)(i), (D)(i), and 

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1 


(D)(iii)(II) shall each be applied by sub


2 


stituting ‘$30,000,000’ for ‘$10,000,000’. 

3 


‘‘(ii) QUALIFIED 501(C)(3) BONDS 

4 


TREATED AS ISSUED BY EXEMPT ORGANI


5 


ZATION.—In the case of a qualified 
6 
501(c)(3) bond (as defined in section 145) 
7 
issued during 2009 or 2010, this para8 
graph shall be applied by treating the 
9 
501(c)(3) organization for whose benefit 
10 
such bond was issued as the issuer. 
11 
‘‘(iii) SPECIAL RULE FOR QUALIFIED 
12 
FINANCINGS.—In the case of a qualified fi13 
nancing issue issued during 2009 or 
14 
2010— 
15 
‘‘(I) subparagraph (F) shall not 
16 
apply, and 
17 
‘‘(II) any obligation issued as a 
18 
part of such issue shall be treated as 
19 
a qualified tax-exempt obligation if 
20 
the requirements of this paragraph 
21 


are met with respect to each qualified 

22 


portion of the issue (determined by 

23 


treating each qualified portion as a 

24 


separate issue issued by the qualified 

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1 


borrower with respect to which such 

2 


portion relates). 

3 


‘‘(iv) QUALIFIED FINANCING ISSUE.— 

4 


For purposes of this subparagraph, the 

5 


term ‘qualified financing issue’ means any 
6 
composite, pooled, or other conduit financ7 
ing issue the proceeds of which are used 
8 
directly or indirectly to make or finance 
9 
loans to one or more ultimate borrowers 
10 
each of whom is a qualified borrower. 
11 
‘‘(v) QUALIFIED PORTION.—For pur12 
poses of this subparagraph, the term 
13 
‘qualified portion’ means that portion of 
14 
the proceeds which are used with respect 
15 
to each qualified borrower under the issue. 
16 
‘‘(vi) QUALIFIED BORROWER.—For 
17 
purposes of this subparagraph, the term 
18 
‘qualified borrower’ means a borrower 
19 
which is a State or political subdivision 
20 
thereof or an organization described in sec21 


tion 501(c)(3) and exempt from taxation 

22 


under section 501(a).’’. 

23 


(b) EFFECTIVE DATE.—The amendments made by 
24 
this section shall apply to obligations issued after Decem25 
ber 31, 2008. 

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1 
SEC. 1503. TEMPORARY MODIFICATION OF ALTERNATIVE 
2 


MINIMUM TAX LIMITATIONS ON TAX-EXEMPT 

3 


BONDS. 

4 


(a) INTEREST ON PRIVATE ACTIVITY BONDS ISSUED 
5 
DURING 2009 AND 2010 NOT TREATED AS TAX PREF6 
ERENCE ITEM.—Subparagraph (C) of section 57(a)(5) is 
7 
amended by adding at the end a new clause: 
8 
‘‘(vi) EXCEPTION FOR BONDS ISSUED 
9 
IN 2009 AND 2010.—For purposes of clause 
10 
(i), the term ‘private activity bond’ shall 
11 
not include any bond issued after Decem12 
ber 31, 2008, and before January 1, 2011. 
13 
For purposes of the preceding sentence, a 
14 
refunding bond (whether a current or ad15 
vance refunding) shall be treated as issued 
16 
on the date of the issuance of the refunded 
17 
bond (or in the case of a series of 
18 
refundings, the original bond).’’. 
19 
(b) NO ADJUSTMENT TO ADJUSTED CURRENT 
20 
EARNINGS FOR INTEREST ON TAX-EXEMPT BONDS 
21 
ISSUED AFTER 2008.—Subparagraph (B) of section 
22 
56(g)(4) is amended by adding at the end the following 
23 
new clause: 
24 
‘‘(iv) TAX EXEMPT INTEREST ON 
25 


BONDS ISSUED IN 2009 AND 2010.—Clause 

26 


(i) shall not apply in the case of any inter-

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1 


est on a bond issued after December 31, 

2 


2008, and before January 1, 2011. For 

3 


purposes of the preceding sentence, a re


4 


funding bond (whether a current or ad


5 


vance refunding) shall be treated as issued 
6 
on the date of the issuance of the refunded 
7 
bond (or in the case of a series of 
8 
refundings, the original bond).’’. 
9 
(c) EFFECTIVE DATE.—The amendments made by 
10 
this section shall apply to obligations issued after Decem11 
ber 31, 2008. 
12 
PART 2—TAX CREDIT BONDS FOR SCHOOLS 
13 
SEC. 1511. QUALIFIED SCHOOL CONSTRUCTION BONDS. 
14 
(a) IN GENERAL.—Subpart I of part IV of sub15 
chapter A of chapter 1 is amended by adding at the end 
16 
the following new section: 
17 
‘‘SEC. 54F. QUALIFIED SCHOOL CONSTRUCTION BONDS. 
18 
‘‘(a) QUALIFIED SCHOOL CONSTRUCTION BOND.— 
19 
For purposes of this subchapter, the term ‘qualified school 
20 
construction bond’ means any bond issued as part of an 
21 
issue if— 
22 


‘‘(1) 100 percent of the available project pro


23 


ceeds of such issue are to be used for the construc


24 


tion, rehabilitation, or repair of a public school facil


25 


ity or for the acquisition of land on which such a fa-

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1 


cility is to be constructed with part of the proceeds 

2 


of such issue, 

3 


‘‘(2) the bond is issued by a State or local gov


4 


ernment within the jurisdiction of which such school 

5 


is located, and 
6 
‘‘(3) the issuer designates such bond for pur7 
poses of this section. 
8 
‘‘(b) LIMITATION ON AMOUNT OF BONDS DES9 
IGNATED.—The maximum aggregate face amount of 
10 
bonds issued during any calendar year which may be des11 
ignated under subsection (a) by any issuer shall not exceed 
12 
the sum of— 
13 
‘‘(1) the limitation amount allocated under sub14 
section (d) for such calendar year to such issuer, 
15 
and 
16 
‘‘(2) if such issuer is a large local educational 
17 
agency (as defined in subsection (e)(4)) or is issuing 
18 
on behalf of such an agency, the limitation amount 
19 
allocated under subsection (e) for such calendar year 
20 
to such agency. 
21 


‘‘(c) NATIONAL LIMITATION ON AMOUNT OF BONDS 
22 
DESIGNATED.—There is a national qualified school con23 
struction bond limitation for each calendar year. Such lim24 
itation is— 
25 


‘‘(1) $11,000,000,000 for 2009, 

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1 


‘‘(2) $11,000,000,000 for 2010, and 

2 


‘‘(3) except as provided in subsection (f), zero 

3 


after 2010. 

4 


‘‘(d) 60 PERCENT OF LIMITATION ALLOCATED 
5 
AMONG STATES.— 
6 
‘‘(1) IN GENERAL.—60 percent of the limitation 
7 
applicable under subsection (c) for any calendar year 
8 
shall be allocated by the Secretary among the States 
9 
in proportion to the respective numbers of children 
10 
in each State who have attained age 5 but not age 
11 
18 for the most recent fiscal year ending before such 
12 
calendar year. The limitation amount allocated to a 
13 
State under the preceding sentence shall be allocated 
14 
by the State to issuers within such State. 
15 
‘‘(2) MINIMUM ALLOCATIONS TO STATES.— 
16 
‘‘(A) IN GENERAL.—The Secretary shall 
17 
adjust the allocations under this subsection for 
18 
any calendar year for each State to the extent 
19 
necessary to ensure that the sum of— 
20 
‘‘(i) the amount allocated to such 
21 


State under this subsection for such year, 
22 
and 
23 


‘‘(ii) the aggregate amounts allocated 

24 


under subsection (e) to large local edu


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291 

1 


cational agencies in such State for such 
2 
year, 
3 


is not less than an amount equal to such 

4 


State’s adjusted minimum percentage of the 

5 


amount to be allocated under paragraph (1) for 
6 
the calendar year. 
7 
‘‘(B) ADJUSTED MINIMUM PERCENTAGE.— 
8 
A State’s adjusted minimum percentage for any 
9 
calendar year is the product of— 
10 
‘‘(i) the minimum percentage de11 
scribed in section 1124(d) of the Elemen12 
tary and Secondary Education Act of 1965 
13 
(20 U.S.C. 6334(d)) for such State for the 
14 
most recent fiscal year ending before such 
15 
calendar year, multiplied by 
16 
‘‘(ii) 1.68. 
17 
‘‘(3) ALLOCATIONS TO CERTAIN POSSES18 
SIONS.—The amount to be allocated under para19 
graph (1) to any possession of the United States 
20 
other than Puerto Rico shall be the amount which 
21 


would have been allocated if all allocations under 

22 


paragraph (1) were made on the basis of respective 

23 


populations of individuals below the poverty line (as 

24 


defined by the Office of Management and Budget). 

25 


In making other allocations, the amount to be allo


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292 

1 


cated under paragraph (1) shall be reduced by the 

2 


aggregate amount allocated under this paragraph to 

3 


possessions of the United States. 

4 


‘‘(4) ALLOCATIONS FOR INDIAN SCHOOLS.—In 

5 


addition to the amounts otherwise allocated under 
6 
this subsection, $200,000,000 for calendar year 
7 
2009, and $200,000,000 for calendar year 2010, 
8 
shall be allocated by the Secretary of the Interior for 
9 
purposes of the construction, rehabilitation, and re10 
pair of schools funded by the Bureau of Indian Af11 
fairs. In the case of amounts allocated under the 
12 
preceding sentence, Indian tribal governments (as 
13 
defined in section 7701(a)(40)) shall be treated as 
14 
qualified issuers for purposes of this subchapter. 
15 
‘‘(e) 40 PERCENT OF LIMITATION ALLOCATED 
16 
AMONG LARGEST SCHOOL DISTRICTS.— 
17 
‘‘(1) IN GENERAL.—40 percent of the limitation 
18 
applicable under subsection (c) for any calendar year 
19 
shall be allocated under paragraph (2) by the Sec20 
retary among local educational agencies which are 
21 


large local educational agencies for such year. 

22 


‘‘(2) ALLOCATION FORMULA.—The amount to 

23 


be allocated under paragraph (1) for any calendar 

24 


year shall be allocated among large local educational 

25 


agencies in proportion to the respective amounts 

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1 


each such agency received for Basic Grants under 

2 


subpart 2 of part A of title I of the Elementary and 

3 


Secondary Education Act of 1965 (20 U.S.C. 6331 

4 


et seq.) for the most recent fiscal year ending before 

5 


such calendar year. 
6 
‘‘(3) ALLOCATION OF UNUSED LIMITATION TO 
7 
STATE.—The amount allocated under this subsection 
8 
to a large local educational agency for any calendar 
9 
year may be reallocated by such agency to the State 
10 
in which such agency is located for such calendar 
11 
year. Any amount reallocated to a State under the 
12 
preceding sentence may be allocated as provided in 
13 
subsection (d)(1). 
14 
‘‘(4) LARGE LOCAL EDUCATIONAL AGENCY.— 
15 
For purposes of this section, the term ‘large local 
16 
educational agency’ means, with respect to a cal17 
endar year, any local educational agency if such 
18 
agency is— 
19 
‘‘(A) among the 100 local educational 
20 
agencies with the largest numbers of children 
21 


aged 5 through 17 from families living below 

22 


the poverty level, as determined by the Sec


23 


retary using the most recent data available 

24 


from the Department of Commerce that are 

25 


satisfactory to the Secretary, or 

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1 


‘‘(B) 1 of not more than 25 local edu


2 


cational agencies (other than those described in 

3 


subparagraph (A)) that the Secretary of Edu


4 


cation determines (based on the most recent 

5 


data available satisfactory to the Secretary) are 
6 
in particular need of assistance, based on a low 
7 
level of resources for school construction, a high 
8 
level of enrollment growth, or such other factors 
9 
as the Secretary deems appropriate. 
10 
‘‘(f) CARRYOVER OF UNUSED LIMITATION.—If for 
11 
any calendar year— 
12 
‘‘(1) the amount allocated under subsection (d) 
13 
to any State, exceeds 
14 
‘‘(2) the amount of bonds issued during such 
15 
year which are designated under subsection (a) pur16 
suant to such allocation, 
17 
the limitation amount under such subsection for such 
18 
State for the following calendar year shall be increased 
19 
by the amount of such excess. A similar rule shall apply 
20 
to the amounts allocated under subsection (d)(4) or (e).’’. 
21 


(b) CONFORMING AMENDMENTS.— 

22 


(1) Paragraph (1) of section 54A(d) is amended 

23 


by striking ‘‘or’’ at the end of subparagraph (C), by 

24 


inserting ‘‘or’’ at the end of subparagraph (D), and 

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295 

1 


by inserting after subparagraph (D) the following 

2 


new subparagraph: 
3 
‘‘(E) a qualified school construction 
4 


bond,’’. 

5 


(2) Subparagraph (C) of section 54A(d)(2) is 
6 
amended by striking ‘‘and’’ at the end of clause (iii), 
7 
by striking the period at the end of clause (iv) and 
8 
inserting ‘‘, and’’, and by adding at the end the fol9 
lowing new clause: 
10 
‘‘(v) in the case of a qualified school 
11 
construction bond, a purpose specified in 
12 
section 54F(a)(1).’’. 
13 
(3) The table of sections for subpart I of part 
14 
IV of subchapter A of chapter 1 is amended by add15 
ing at the end the following new item: 

‘‘Sec. 54F. Qualified school construction bonds.’’. 
16 
(c) EFFECTIVE DATE.—The amendments made by 
17 
this section shall apply to obligations issued after Decem18 
ber 31, 2008. 
19 
SEC. 1512. EXTENSION AND EXPANSION OF QUALIFIED 
20 


ZONE ACADEMY BONDS. 

21 


(a) IN GENERAL.—Section 54E(c)(1) is amended by 
22 
striking ‘‘and 2009’’ and inserting ‘‘and $1,400,000,000 
23 
for 2009 and 2010’’. 

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1 


(b) EFFECTIVE DATE.—The amendment made by 
2 
this section shall apply to obligations issued after Decem3 
ber 31, 2008. 
4 


PART 3—TAXABLE BOND OPTION FOR 

5 


GOVERNMENTAL BONDS 
6 
SEC. 1521. TAXABLE BOND OPTION FOR GOVERNMENTAL 
7 
BONDS. 
8 
(a) IN GENERAL.—Part IV of subchapter A of chap9 
ter 1 is amended by adding at the end the following new 
10 
subpart: 
11 
‘‘Subpart J—Taxable Bond Option for Governmental 
12 
Bonds 

‘‘Sec. 54AA. Taxable bond option for governmental bonds. 

13 
‘‘SEC. 54AA. TAXABLE BOND OPTION FOR GOVERNMENTAL 
14 
BONDS. 
15 
‘‘(a) IN GENERAL.—If a taxpayer holds a taxable 
16 
governmental bond on one or more interest payment dates 
17 
of the bond during any taxable year, there shall be allowed 
18 
as a credit against the tax imposed by this chapter for 
19 
the taxable year an amount equal to the sum of the credits 
20 
determined under subsection (b) with respect to such 
21 
dates. 
22 


‘‘(b) AMOUNT OF CREDIT.—The amount of the credit 
23 
determined under this subsection with respect to any in24 
terest payment date for a taxable governmental bond is 

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297 
1 
35 percent of the amount of interest payable by the issuer 
2 
with respect to such date. 
3 


‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.— 

4 


‘‘(1) IN GENERAL.—The credit allowed under 

5 


subsection (a) for any taxable year shall not exceed 
6 
the excess of— 
7 
‘‘(A) the sum of the regular tax liability 
8 
(as defined in section 26(b)) plus the tax im9 
posed by section 55, over 
10 
‘‘(B) the sum of the credits allowable 
11 
under this part (other than subpart C and this 
12 
subpart). 
13 
‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the 
14 
credit allowable under subsection (a) exceeds the 
15 
limitation imposed by paragraph (1) for such taxable 
16 
year, such excess shall be carried to the succeeding 
17 
taxable year and added to the credit allowable under 
18 
subsection (a) for such taxable year (determined be19 
fore the application of paragraph (1) for such suc20 
ceeding taxable year). 
21 


‘‘(d) TAXABLE GOVERNMENTAL BOND.— 

22 


‘‘(1) IN GENERAL.—For purposes of this sec


23 


tion, the term ‘taxable governmental bond’ means 

24 


any obligation (other than a private activity bond) 
25 
if— 

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298 

1 


‘‘(A) the interest on such obligation would 

2 


(but for this section) be excludable from gross 

3 


income under section 103, and 

4 


‘‘(B) the issuer makes an irrevocable elec


5 


tion to have this section apply. 
6 
‘‘(2) APPLICABLE RULES.—For purposes of ap7 
plying paragraph (1)— 
8 
‘‘(A) a taxable governmental bond shall not 
9 
be treated as federally guaranteed by reason of 
10 
the credit allowed under subsection (a) or sec11 
tion 6432, 
12 
‘‘(B) the yield on a taxable governmental 
13 
bond shall be determined without regard to the 
14 
credit allowed under subsection (a), and 
15 
‘‘(C) a bond shall not be treated as a tax16 
able governmental bond if the issue price has 
17 
more than a de minimis amount (determined 
18 
under rules similar to the rules of section 
19 
1273(a)(3)) of premium over the stated prin20 
cipal amount of the bond. 
21 


‘‘(e) INTEREST PAYMENT DATE.—For purposes of 
22 
this section, the term ‘interest payment date’ means any 
23 
date on which the holder of record of the taxable govern24 
mental bond is entitled to a payment of interest under 
25 
such bond. 

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299 

1 


‘‘(f) SPECIAL RULES.— 

2 


‘‘(1) INTEREST ON TAXABLE GOVERNMENTAL 
3 
BONDS INCLUDIBLE IN GROSS INCOME FOR FED4 


ERAL INCOME TAX PURPOSES.—For purposes of this 

5 


title, interest on any taxable governmental bond 
6 
shall be includible in gross income. 
7 
‘‘(2) APPLICATION OF CERTAIN RULES.—Rules 
8 
similar to the rules of subsections (f), (g), (h), and 
9 
(i) of section 54A shall apply for purposes of the 
10 
credit allowed under subsection (a). 
11 
‘‘(g) SPECIAL RULE FOR QUALIFIED BONDS ISSUED 
12 
BEFORE 2011.—In the case of a qualified bond issued be13 
fore January 1, 2011— 
14 
‘‘(1) ISSUER ALLOWED REFUNDABLE CRED15 
IT.—In lieu of any credit allowed under this section 
16 
with respect to such bond, the issuer of such bond 
17 
shall be allowed a credit as provided in section 6432. 
18 
‘‘(2) QUALIFIED BOND.—For purposes of this 
19 
subsection, the term ‘qualified bond’ means any tax20 
able governmental bond issued as part of an issue 
21 
if— 
22 


‘‘(A) 100 percent of the available project 

23 


proceeds (as defined in section 54A) of such 

24 


issue are to be used for capital expenditures, 
25 
and 

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300 

1 


‘‘(B) the issuer makes an irrevocable elec


2 


tion to have this subsection apply. 

3 


‘‘(h) REGULATIONS.—The Secretary may prescribe 
4 
such regulations and other guidance as may be necessary 
5 
or appropriate to carry out this section and section 
6 
6432.’’. 
7 
(b) CREDIT FOR QUALIFIED BONDS ISSUED BEFORE 
8 
2011.—Subchapter B of chapter 65, as amended by this 
9 
Act, is amended by adding at the end the following new 
10 
section: 
11 
‘‘SEC. 6432. CREDIT FOR QUALIFIED BONDS ALLOWED TO 
12 
ISSUER. 
13 
‘‘(a) IN GENERAL.—In the case of a qualified bond 
14 
issued before January 1, 2011, the issuer of such bond 
15 
shall be allowed a credit with respect to each interest pay16 
ment under such bond which shall be payable by the Sec17 
retary as provided in subsection (b). 
18 
‘‘(b) PAYMENT OF CREDIT.—The Secretary shall pay 
19 
(contemporaneously with each interest payment date 
20 
under such bond) to the issuer of such bond (or to any 
21 
person who makes such interest payments on behalf of the 
22 
issuer) 35 percent of the interest payable under such bond 
23 
on such date. 

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301 

1 


‘‘(c) APPLICATION OF ARBITRAGE RULES.—For pur2 
poses of section 148, the yield on a qualified bond shall 
3 
be reduced by the credit allowed under this section. 
4 


‘‘(d) INTEREST PAYMENT DATE.—For purposes of 
5 
this subsection, the term ‘interest payment date’ means 
6 
each date on which interest is payable by the issuer under 
7 
the terms of the bond. 
8 
‘‘(e) QUALIFIED BOND.—For purposes of this sub9 
section, the term ‘qualified bond’ has the meaning given 
10 
such term in section 54AA(h).’’. 
11 
(c) CONFORMING AMENDMENTS.— 
12 
(1) Section 1324(b)(2) of title 31, United 
13 
States Code, is amended by striking ‘‘or 6428’’ and 
14 
inserting ‘‘6428, or 6432,’’. 
15 
(2) Section 54A(c)(1)(B) is amended by strik16 
ing ‘‘subpart C’’ and inserting ‘‘subparts C and J’’. 
17 
(3) Sections 54(c)(2), 1397E(c)(2), and 
18 
1400N(l)(3)(B) are each amended by striking ‘‘and 
19 
I’’ and inserting ‘‘, I, and J’’. 
20 
(4) Section 6401(b)(1) is amended by striking 
21 


‘‘and I’’ and inserting ‘‘I, and J’’. 

22 


(5) The table of subparts for part IV of sub


23 


chapter A of chapter 1 is amended by adding at the 

24 


end the following new item: 

‘‘Subpart J. Taxable bond option for governmental bonds.’’. 

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302 

1 


(6) The table of sections for subchapter B of 

2 


chapter 65, as amended by this Act, is amended by 

3 


adding at the end the following new item: 

‘‘Sec. 6432. Credit for qualified bonds allowed to issuer on advance basis.’’. 

4 


(d) TRANSITIONAL COORDINATION WITH STATE 
5 
LAW.—Except as otherwise provided by a State after the 
6 
date of the enactment of this Act, the interest on any tax7 
able governmental bond (as defined in section 54AA of 
8 
the Internal Revenue Code of 1986, as added by this sec9 
tion) and the amount of any credit determined under such 
10 
section with respect to such bond shall be treated for pur11 
poses of the income tax laws of such State as being exempt 
12 
from Federal income tax. 
13 
(e) EFFECTIVE DATE.—The amendments made by 
14 
this section shall apply to obligations issued after the date 
15 
of the enactment of this Act. 
16 
PART 4—RECOVERY ZONE BONDS 
17 
SEC. 1531. RECOVERY ZONE BONDS. 
18 
(a) IN GENERAL.—Subchapter Y of chapter 1 is 
19 
amended by adding at the end the following new part: 
20 


‘‘PART III—RECOVERY ZONE BONDS 

‘‘Sec. 1400U–1. Allocation of recovery zone bonds. 
‘‘Sec. 1400U–2. Recovery zone economic development bonds. 
‘‘Sec. 1400U–3. Recovery zone facility bonds. 


21 
‘‘SEC. 1400U–1. ALLOCATION OF RECOVERY ZONE BONDS. 
22 


‘‘(a) ALLOCATIONS.— 

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303 


1 


‘‘(1) IN GENERAL.—The Secretary shall allo


2 


cate the national recovery zone economic develop


3 


ment bond limitation and the national recovery zone 

4 


facility bond limitation among the States in the pro


5 


portion that each such State’s 2008 State employ6 
ment decline bears to the aggregate of the 2008 
7 
State employment declines for all of the States. 
8 
‘‘(2) 2008 STATE EMPLOYMENT DECLINE.—For 
9 
purposes of this subsection, the term ‘2008 State 
10 
employment decline’ means, with respect to any 
11 
State, the excess (if any) of— 
12 
‘‘(A) the number of individuals employed 
13 
in such State determined for December 2007, 
14 
over 
15 
‘‘(B) the number of individuals employed 
16 
in such State determined for December 2008. 
17 
‘‘(3) ALLOCATIONS BY STATES.— 
18 
‘‘(A) IN GENERAL.—Each State with re19 
spect to which an allocation is made under 
20 
paragraph (1) shall reallocate such allocation 
21 


among the counties and large municipalities in 

22 


such State in the proportion the each such 

23 


county’s or municipality’s 2008 employment de


24 


cline bears to the aggregate of the 2008 em-

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304 

1 


ployment declines for all the counties and mu


2 


nicipalities in such State. 

3 


‘‘(B) LARGE MUNICIPALITIES.—For pur


4 


poses of subparagraph (A), the term ‘large mu


5 


nicipality’ means a municipality with a popu6 
lation of more than 100,000. 
7 
‘‘(C) DETERMINATION OF LOCAL EMPLOY8 
MENT DECLINES.—For purposes of this para9 
graph, the employment decline of any munici10 
pality or county shall be determined in the 
11 
same manner as determining the State employ12 
ment decline under paragraph (2), except that 
13 
in the case of a municipality any portion of 
14 
which is in a county, such portion shall be 
15 
treated as part of such municipality and not 
16 
part of such county. 
17 
‘‘(4) NATIONAL LIMITATIONS.— 
18 
‘‘(A) RECOVERY ZONE ECONOMIC DEVEL19 
OPMENT BONDS.—There is a national recovery 
20 
zone economic development bond limitation of 
21 


$10,000,000,000. 

22 


‘‘(B) RECOVERY ZONE FACILITY BONDS.— 

23 


There is a national recovery zone facility bond 

24 


limitation of $15,000,000,000. 

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305 

1 


‘‘(b) RECOVERY ZONE.—For purposes of this part, 
2 
the term ‘recovery zone’ means— 
3 


‘‘(1) any area designated by the issuer as hav


4 


ing significant poverty, unemployment, home fore


5 


closures, or general distress, and 
6 
‘‘(2) any area for which a designation as an em7 
powerment zone or renewal community is in effect. 
8 
‘‘SEC. 1400U–2. RECOVERY ZONE ECONOMIC DEVELOPMENT 
9 
BONDS. 
10 
‘‘(a) IN GENERAL.—In the case of a recovery zone 
11 
economic development bond— 
12 
‘‘(1) such bond shall be treated as a qualified 
13 
bond for purposes of section 6432, and 
14 
‘‘(2) subsection (b) of such section shall be ap15 
plied by substituting ‘55 percent’ for ‘35 percent’. 
16 
‘‘(b) RECOVERY ZONE ECONOMIC DEVELOPMENT 
17 
BOND.— 
18 
‘‘(1) IN GENERAL.—For purposes of this sec19 
tion, the term ‘recovery zone economic development 
20 
bond’ means any taxable governmental bond (as de21 


fined in section 54AA(d)) issued before January 1, 

22 


2011, as part of issue if— 

23 


‘‘(A) 100 percent of the available project 

24 


proceeds (as defined in section 54A) of such 

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306 

1 


issue are to be used for one or more qualified 

2 


economic development purposes, and 

3 


‘‘(B) the issuer designates such bond for 

4 


purposes of this section. 

5 


‘‘(2) LIMITATION ON AMOUNT OF BONDS DES6 
IGNATED.—The maximum aggregate face amount of 
7 
bonds which may be designated by any issuer under 
8 
paragraph (1) shall not exceed the amount of the re9 
covery zone economic development bond limitation 
10 
allocated to such issuer under section 1400U–1. 
11 
‘‘(c) QUALIFIED ECONOMIC DEVELOPMENT PUR12 
POSE.—For purposes of this section, the term ‘qualified 
13 
economic development purpose’ means expenditures for 
14 
purposes of promoting development or other economic ac15 
tivity in a recovery zone, including— 
16 
‘‘(1) capital expenditures paid or incurred with 
17 
respect to property located in such zone, 
18 
‘‘(2) expenditures for public infrastructure and 
19 
construction of public facilities, and 
20 
‘‘(3) expenditures for job training and edu21 


cational programs. 

22 
‘‘SEC. 1400U–3. RECOVERY ZONE FACILITY BONDS. 
23 


‘‘(a) IN GENERAL.—For purposes of part IV of sub24 
chapter B (relating to tax exemption requirements for 

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307 
1 
State and local bonds), the term ‘exempt facility bond’ in2 
cludes any recovery zone facility bond. 
3 


‘‘(b) RECOVERY ZONE FACILITY BOND.— 

4 


‘‘(1) IN GENERAL.—For purposes of this sec


5 


tion, the term ‘recovery zone facility bond’ means 
6 
any bond issued as part of an issue if— 
7 
‘‘(A) 95 percent or more of the net pro8 
ceeds (as defined in section 150(a)(3)) of such 
9 
issue are to be used for recovery zone property, 
10 
‘‘(B) such bond is issued before January 1, 
11 
2011, and 
12 
‘‘(C) the issuer designates such bond for 
13 
purposes of this section. 
14 
‘‘(2) LIMITATION ON AMOUNT OF BONDS DES15 
IGNATED.—The maximum aggregate face amount of 
16 
bonds which may be designated by any issuer under 
17 
paragraph (1) shall not exceed the amount of recov18 
ery zone facility bond limitation allocated to such 
19 
issuer under section 1400U–1. 
20 
‘‘(c) RECOVERY ZONE PROPERTY.—For purposes of 
21 
this section— 
22 


‘‘(1) IN GENERAL.—The term ‘recovery zone 

23 


property’ means any property to which section 168 

24 


applies (or would apply but for section 179) if— 

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308 

1 


‘‘(A) such property was acquired by the 

2 


taxpayer by purchase (as defined in section 

3 


179(d)(2)) after the date on which the designa


4 


tion of the recovery zone took effect, 

5 


‘‘(B) the original use of which in the recov6 
ery zone commences with the taxpayer, and 
7 
‘‘(C) substantially all of the use of which 
8 
is in the recovery zone and is in the active con9 
duct of a qualified business by the taxpayer in 
10 
such zone. 
11 
‘‘(2) QUALIFIED BUSINESS.—The term ‘quali12 
fied business’ means any trade or business except 
13 
that— 
14 
‘‘(A) the rental to others of real property 
15 
located in a recovery zone shall be treated as a 
16 
qualified business only if the property is not 
17 
residential rental property (as defined in section 
18 
168(e)(2)), and 
19 
‘‘(B) such term shall not include any trade 
20 
or business consisting of the operation of any 
21 


facility described in section 144(c)(6)(B). 
22 
‘‘(3) SPECIAL RULES FOR SUBSTANTIAL REN23 


OVATIONS AND SALE-LEASEBACK.—Rules similar to 

24 


the rules of subsections (a)(2) and (b) of section 

25 


1397D shall apply for purposes of this subsection. 

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309 

1 


‘‘(d) NONAPPLICATION OF CERTAIN RULES.—Sec2 
tions 146 (relating to volume cap) and 147(d) (relating 
3 
to acquisition of existing property not permitted) shall not 
4 
apply to any recovery zone facility bond.’’. 
5 


(b) CLERICAL AMENDMENT.—The table of parts for 
6 
subchapter Y of chapter 1 of such Code is amended by 
7 
adding at the end the following new item: 

‘‘PART III. RECOVERY ZONE BONDS.’’. 

8 
(c) EFFECTIVE DATE.—The amendments made by 
9 
this section shall apply to obligations issued after the date 
10 
of the enactment of this Act. 
11 
SEC. 1532. TRIBAL ECONOMIC DEVELOPMENT BONDS. 
12 
(a) IN GENERAL.—Section 7871 is amended by add13 
ing at the end the following new subsection: 
14 
‘‘(f) TRIBAL ECONOMIC DEVELOPMENT BONDS.— 
15 
‘‘(1) ALLOCATION OF LIMITATION.— 
16 
‘‘(A) IN GENERAL.—The Secretary shall 
17 
allocate the national tribal economic develop18 
ment bond limitation among the Indian tribal 
19 
governments in such manner as the Secretary, 
20 


in consultation with the Secretary of the Inte


21 


rior, determines appropriate. 

22 


‘‘(B) NATIONAL LIMITATION.—There is a 

23 


national tribal economic development bond limi


24 


tation of $2,000,000,000. 

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310 


1 


‘‘(2) BONDS TREATED AS EXEMPT FROM 

2 


TAX.—In the case of a tribal economic development 

3 


bond— 

4 


‘‘(A) notwithstanding subsection (c), such 

5 


bond shall be treated for purposes of this title 
6 
in the same manner as if such bond were issued 
7 
by a State, and 
8 
‘‘(B) section 146 shall not apply. 
9 
‘‘(3) TRIBAL ECONOMIC DEVELOPMENT 
10 
BOND.— 
11 
‘‘(A) IN GENERAL.—For purposes of this 
12 
section, the term ‘tribal economic development 
13 
bond’ means any bond issued by an Indian trib14 
al government— 
15 
‘‘(i) the interest on which is not ex16 
empt from tax under section 103 by reason 
17 
of subsection (c) (determined without re18 
gard to this subsection) but would be so 
19 
exempt if issued by a State or local govern20 
ment, and 
21 


‘‘(ii) which is designated by the In


22 


dian tribal government as a tribal eco


23 


nomic development bond for purposes of 

24 


this subsection. 

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311 

1 


‘‘(B) EXCEPTIONS.—The term tribal eco


2 


nomic development bond shall not include any 

3 


bond issued as part of an issue if any portion 

4 


of the proceeds of such issue are used to fi


5 


nance— 
6 
‘‘(i) any portion of a building in which 
7 
class II or class III gaming (as defined in 
8 
section 4 of the Indian Gaming Regulatory 
9 
Act) is conducted or housed or any other 
10 
property actually used in the conduct of 
11 
such gaming, or 
12 
‘‘(ii) any facility located outside the 
13 
Indian reservation (as defined in section 
14 
168(j)(6)). 
15 
‘‘(C) LIMITATION ON AMOUNT OF BONDS 
16 
DESIGNATED.—The maximum aggregate face 
17 
amount of bonds which may be designated by 
18 
any Indian tribal government under subpara19 
graph (A) shall not exceed the amount of na20 
tional tribal economic development bond limita21 


tion allocated to such government under para


22 


graph (1).’’. 

23 


(b) STUDY.—The Secretary of the Treasury, or the 
24 
Secretary’s delegate, shall conduct a study of the effects 
25 
of the amendment made by subsection (a). Not later than 

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312 
1 
1 year after the date of the enactment of this Act, the 
2 
Secretary of the Treasury, or the Secretary’s delegate, 
3 
shall report to Congress on the results of the studies con4 
ducted under this paragraph, including the Secretary’s 
5 
recommendations regarding such amendment. 
6 
(c) EFFECTIVE DATE.—The amendment made by 
7 
subsection (a) shall apply to obligations issued after the 
8 
date of the enactment of this Act. 
9 
PART 5—REPEAL OF WITHHOLDING TAX ON 
10 
GOVERNMENT CONTRACTORS 
11 
SEC. 1541. REPEAL OF WITHHOLDING TAX ON GOVERN12 
MENT CONTRACTORS. 
13 
Section 3402 is amended by striking subsection (t). 
14 
Subtitle G—Energy Incentives 
15 
PART 1—RENEWABLE ENERGY INCENTIVES 
16 
SEC. 1601. EXTENSION OF CREDIT FOR ELECTRICITY PRO17 
DUCED FROM CERTAIN RENEWABLE RE18 
SOURCES. 
19 
(a) IN GENERAL.—Subsection (d) of section 45 is 
20 
amended— 
21 


(1) by striking ‘‘2010’’ in paragraph (1) and in


22 


serting ‘‘2013’’, 

23 


(2) by striking ‘‘2011’’ each place it appears in 

24 


paragraphs (2), (3), (4), (6), (7) and (9) and insert


25 


ing ‘‘2014’’, and 

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313 

1 


(3) by striking ‘‘2012’’ in paragraph (11)(B) 

2 


and inserting ‘‘2014’’. 

3 


(b) TECHNICAL AMENDMENT.—Paragraph (5) of 
4 
section 45(d) is amended by striking ‘‘and before’’ and 
5 
all that follows and inserting ‘‘ and before October 3, 
6 
2008.’’. 
7 
(c) EFFECTIVE DATE.— 
8 
(1) IN GENERAL.—The amendments made by 
9 
subsection (a) shall apply to property placed in serv10 
ice after the date of the enactment of this Act. 
11 
(2) TECHNICAL AMENDMENT.—The amendment 
12 
made by subsection (b) shall take effect as if in13 
cluded in section 102 of the Energy Improvement 
14 
and Extension Act of 2008. 
15 
SEC. 1602. ELECTION OF INVESTMENT CREDIT IN LIEU OF 
16 
PRODUCTION CREDIT. 
17 
(a) IN GENERAL.—Subsection (a) of section 48 is 
18 
amended by adding at the end the following new para19 
graph: 
20 
‘‘(5) ELECTION TO TREAT QUALIFIED FACILI21 


TIES AS ENERGY PROPERTY.— 

22 


‘‘(A) IN GENERAL.—In the case of any 

23 


qualified investment credit facility placed in 

24 


service in 2009 or 2010— 

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314 

1 


‘‘(i) such facility shall be treated as 

2 


energy property for purposes of this sec


3 


tion, and 

4 


‘‘(ii) the energy percentage with re


5 


spect to such property shall be 30 percent. 
6 
‘‘(B) DENIAL OF PRODUCTION CREDIT.— 
7 
No credit shall be allowed under section 45 for 
8 
any taxable year with respect to any qualified 
9 
investment credit facility. 
10 
‘‘(C) QUALIFIED INVESTMENT CREDIT FA11 
CILITY.—For purposes of this paragraph, the 
12 
term ‘qualified investment credit facility’ means 
13 
any facility described in paragraph (1), (2), (3), 
14 
(4), (6), (7), (9), or (11) of section 45(d) if no 
15 
credit has been allowed under section 45 with 
16 
respect to such facility and the taxpayer makes 
17 
an irrevocable election to have this paragraph 
18 
apply to such facility.’’. 
19 
(b) EFFECTIVE DATE.—The amendments made by 
20 
this section shall apply to facilities placed in service after 
21 
December 31, 2008. 
22 
SEC. 1603. REPEAL OF CERTAIN LIMITATIONS ON CREDIT 
23 


FOR RENEWABLE ENERGY PROPERTY. 

24 


(a) REPEAL OF LIMITATION ON CREDIT FOR QUALI25 
FIED SMALL WIND ENERGY PROPERTY.—Paragraph (4) 

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315 
1 
of section 48(c) is amended by striking subparagraph (B) 
2 
and by redesignating subparagraphs (C) and (D) as sub3 
paragraphs (B) and (C). 
4 


(b) REPEAL OF LIMITATION ON PROPERTY FI5 
NANCED BY SUBSIDIZED ENERGY FINANCING.— 
6 
(1) IN GENERAL.—Subsection (a) of section 48 
7 
is amended by striking paragraph (4). 
8 
(2) CONFORMING AMENDMENTS.— 
9 
(A) Section 25C(e)(1) is amended by strik10 
ing ‘‘(8), and (9)’’ and inserting ‘‘and (8)’’. 
11 
(B) Section 25D(e) is amended by striking 
12 
paragraph (9). 
13 
(c) EFFECTIVE DATE.— 
14 
(1) IN GENERAL.—Except as provided in para15 
graph (2),the amendment made by this section shall 
16 
apply to periods after December 31, 2008, under 
17 
rules similar to the rules of section 48(m) of the In18 
ternal Revenue Code of 1986 (as in effect on the day 
19 
before the date of the enactment of the Revenue 
20 
Reconciliation Act of 1990). 
21 


(2) CONFORMING AMENDMENTS.—The amend


22 


ments made by subsection (b)(2) shall apply to tax


23 


able years beginning after December 31, 2008. 

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316 


1 
SEC. 1604. COORDINATION WITH RENEWABLE ENERGY 
2 


GRANTS. 

3 


Section 48 is amended by adding at the end the fol4 
lowing new subsection: 
5 
‘‘(d) COORDINATION WITH DEPARTMENT OF EN6 
ERGY GRANTS.—In the case of any property with respect 
7 
to which the Secretary of Energy makes a grant under 
8 
section 1721 of the American Recovery and Reinvestment 
9 
Tax Act of 2009— 
10 
‘‘(1) DENIAL OF PRODUCTION AND INVEST11 
MENT CREDITS.—No credit shall be determined 
12 
under this section or section 45 with respect to such 
13 
property for the taxable year in which such grant is 
14 
made or any subsequent taxable year. 
15 
‘‘(2) RECAPTURE OF CREDITS FOR PROGRESS 
16 
EXPENDITURES MADE BEFORE GRANT.—If a credit 
17 
was determined under this section with respect to 
18 
such property for any taxable year ending before 
19 
such grant is made— 
20 
‘‘(A) the tax imposed under subtitle A on 
21 


the taxpayer for the taxable year in which such 

22 


grant is made shall be increased by so much of 

23 


such credit as was allowed under section 38, 

24 


‘‘(B) the general business carryforwards 

25 


under section 39 shall be adjusted so as to re-

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317 

1 


capture the portion of such credit which was 

2 


not so allowed, and 

3 


‘‘(C) the amount of such grant shall be de


4 


termined without regard to any reduction in the 

5 


basis of such property by reason of such credit. 
6 
‘‘(3) TREATMENT OF GRANTS.—Any such grant 
7 
shall— 
8 
‘‘(A) not be includible in the gross income 
9 
of the taxpayer, but 
10 
‘‘(B) shall be taken into account in deter11 
mining the basis of the property to which such 
12 
grant relates, except that the basis of such 
13 
property shall be reduced under section 50(c) in 
14 
the same manner as a credit allowed under sub15 
section (a).’’. 
16 
PART 2—INCREASED ALLOCATIONS OF NEW 
17 
CLEAN RENEWABLE ENERGY BONDS AND 
18 
QUALIFIED ENERGY CONSERVATION BONDS 
19 
SEC. 1611. INCREASED LIMITATION ON ISSUANCE OF NEW 
20 
CLEAN RENEWABLE ENERGY BONDS. 
21 


Subsection (c) of section 54C is amended by adding 
22 
at the end the following new paragraph: 
23 


‘‘(4) ADDITIONAL LIMITATION.—The national 

24 


new clean renewable energy bond limitation shall be 

25 


increased by $1,600,000,000. Such increase shall be 

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318 

1 


allocated by the Secretary consistent with the rules 

2 


of paragraphs (2) and (3).’’. 

3 
SEC. 1612. INCREASED LIMITATION AND EXPANSION OF 
4 


QUALIFIED ENERGY CONSERVATION BONDS. 

5 


(a) INCREASED LIMITATION.—Subsection (e) of sec6 
tion 54D is amended by adding at the end the following 
7 
new paragraph: 
8 
‘‘(4) ADDITIONAL LIMITATION.—The national 
9 
qualified energy conservation bond limitation shall 
10 
be increased by $2,400,000,000. Such increase shall 
11 
be allocated by the Secretary consistent with the 
12 
rules of paragraphs (1), (2), and (3).’’. 
13 
(b) LOANS AND GRANTS TO IMPLEMENT GREEN 
14 
COMMUNITY PROGRAMS.— 
15 
(1) IN GENERAL.—Subparagraph (A) of section 
16 
54D(f)(1) is amended by inserting ‘‘(or loans or 
17 
grants for capital expenditures to implement any 
18 
green community program)’’ after ‘‘Capital expendi19 
tures’’. 
20 
(2) BONDS TO IMPLEMENT GREEN COMMUNITY 
21 


PROGRAMS NOT TREATED AS PRIVATE ACTIVITY 
22 
BONDS FOR PURPOSES OF LIMITATIONS ON QUALI23 
FIED ENERGY CONSERVATION BONDS .—Subsection 
24 


(e) of section 54D is amended by adding at the end 

25 


the following new paragraph: 

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1 
‘‘(4) BONDS TO IMPLEMENT GREEN COMMU2 
NITY PROGRAMS NOT TREATED AS PRIVATE ACTIV3 


ITY BONDS.—For purposes of paragraph (3) and 

4 


subsection (f)(2), a bond shall not be treated as a 

5 


private activity bond solely because proceeds of the 
6 
issue of which such bond is a part are to be used 
7 
for loans or grants for capital expenditures to imple8 
ment any green community program.’’. 
9 
(c) EFFECTIVE DATE.—The amendments made by 
10 
this section shall apply to obligations issued after the date 
11 
of the enactment of this Act. 
12 
PART 3—ENERGY CONSERVATION INCENTIVES 
13 
SEC. 1621. EXTENSION AND MODIFICATION OF CREDIT FOR 
14 
NONBUSINESS ENERGY PROPERTY. 
15 
(a) IN GENERAL.—Section 25C is amended by strik16 
ing subsections (a) and (b) and inserting the following new 
17 
subsections: 
18 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in19 
dividual, there shall be allowed as a credit against the tax 
20 
imposed by this chapter for the taxable year an amount 
21 
equal to 30 percent of the sum of— 
22 


‘‘(1) the amount paid or incurred by the tax


23 


payer during such taxable year for qualified energy 

24 


efficiency improvements, and 

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1 


‘‘(2) the amount of the residential energy prop


2 


erty expenditures paid or incurred by the taxpayer 

3 


during such taxable year. 

4 


‘‘(b) LIMITATION.—The aggregate amount of the 
5 
credits allowed under this section for taxable years begin6 
ning in 2009 and 2010 with respect to any taxpayer shall 
7 
not exceed $1,500.’’. 
8 
(b) EXTENSION.—Section 25C(g)(2) is amended by 
9 
striking ‘‘December 31, 2009’’ and inserting ‘‘December 
10 
31, 2010’’. 
11 
(c) EFFECTIVE DATE.—The amendments made by 
12 
this section shall apply to taxable years beginning after 
13 
December 31, 2008. 
14 
SEC. 1622. MODIFICATION OF CREDIT FOR RESIDENTIAL 
15 
ENERGY EFFICIENT PROPERTY. 
16 
(a) REMOVAL OF CREDIT LIMITATION FOR PROP17 
ERTY PLACED IN SERVICE.— 
18 
(1) IN GENERAL.—Paragraph (1) of section 
19 
25D(b) is amended to read as follows: 
20 
‘‘(1) MAXIMUM CREDIT FOR FUEL CELLS.—In 
21 


the case of any qualified fuel cell property expendi


22 


ture, the credit allowed under subsection (a) (deter


23 


mined without regard to subsection (c)) for any tax


24 


able year shall not exceed $500 with respect to each 

25 


half kilowatt of capacity of the qualified fuel cell 

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1 


property (as defined in section 48(c)(1)) to which 

2 


such expenditure relates.’’. 

3 


(2) CONFORMING AMENDMENT.—Paragraph (4) 

4 


of section 25D(e) is amended— 

5 


(A) by striking all that precedes subpara6 
graph (B) and inserting the following: 
7 
‘‘(4) FUEL CELL EXPENDITURE LIMITATIONS 
8 
IN CASE OF JOINT OCCUPANCY.—In the case of any 
9 
dwelling unit with respect to which qualified fuel cell 
10 
property expenditures are made and which is jointly 
11 
occupied and used during any calendar year as a 
12 
residence by two or more individuals the following 
13 
rules shall apply: 
14 
‘‘(A) MAXIMUM EXPENDITURES FOR FUEL 
15 
CELLS.—The maximum amount of such ex16 
penditures which may be taken into account 
17 
under subsection (a) by all such individuals 
18 
with respect to such dwelling unit during such 
19 
calendar year shall be $1,667 in the case of 
20 
each half kilowatt of capacity of qualified fuel 
21 


cell property (as defined in section 48(c)(1)) 

22 


with respect to which such expenditures re


23 


late.’’, and 

24 


(B) by striking subparagraph (C). 

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1 


(b) EFFECTIVE DATE.—The amendments made by 
2 
this section shall apply to taxable years beginning after 
3 
December 31, 2008. 
4 
SEC. 1623. TEMPORARY INCREASE IN CREDIT FOR ALTER5 


NATIVE FUEL VEHICLE REFUELING PROP6 
ERTY. 
7 
(a) IN GENERAL.—Section 30C(e) is amended by 
8 
adding at the end the following new paragraph: 
9 
‘‘(6) SPECIAL RULE FOR PROPERTY PLACED IN 
10 
SERVICE DURING 2009 AND 2010.—In the case of 
11 
property placed in service in taxable years beginning 
12 
after December 31, 2008, and before January 1, 
13 
2011— 
14 
‘‘(A) in the case of any such property 
15 
which does not relate to hydrogen— 
16 
‘‘(i) subsection (a) shall be applied by 
17 
substituting ‘50 percent’ for ‘30 percent’, 
18 
‘‘(ii) subsection (b)(1) shall be applied 
19 
by substituting ‘$50,000’ for ‘$30,000’, 
20 
and 
21 


‘‘(iii) subsection (b)(2) shall be ap


22 


plied by substituting ‘$2,000’ for ‘$1,000’, 
23 
and 
24 


‘‘(B) in the case of any such property 

25 


which relates to hydrogen, subsection (b) shall 

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1 


be applied by substituting ‘$200,000’ for 

2 


‘$30,000’.’’. 

3 


(b) EFFECTIVE DATE.—The amendment made by 
4 
this section shall apply to taxable years beginning after 
5 
December 31, 2008. 
6 
PART 4—ENERGY RESEARCH INCENTIVES 
7 
SEC. 1631. INCREASED RESEARCH CREDIT FOR ENERGY RE8 
SEARCH. 
9 
(a) IN GENERAL.—Section 41 is amended by redesig10 
nating subsection (h) as subsection (i) and by inserting 
11 
after subsection (g) the following new subsection: 
12 
‘‘(h) ENERGY RESEARCH CREDIT.—In the case of 
13 
any taxable year beginning in 2009 or 2010— 
14 
‘‘(1) IN GENERAL.—The credit determined 
15 
under subsection (a)(1) shall be increased by 20 per16 
cent of the qualified energy research expenses for 
17 
the taxable year. 
18 
‘‘(2) QUALIFIED ENERGY RESEARCH EX19 
PENSES.—For purposes of this subsection, the term 
20 
‘qualified energy research expenses’ means so much 
21 


of the taxpayer’s qualified research expenses as are 

22 


related to the fields of fuel cells and battery tech


23 


nology, renewable energy, energy conservation tech


24 


nology, efficient transmission and distribution of 

25 


electricity, and carbon capture and sequestration. 

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1 


‘‘(3) COORDINATION WITH OTHER RESEARCH 

2 


CREDITS.— 

3 


‘‘(A) INCREMENTAL CREDIT.—The amount 

4 


of qualified energy research expenses taken into 

5 


account under subsection (a)(1)(A) shall not ex6 
ceed the base amount. 
7 
‘‘(B) ALTERNATIVE SIMPLIFIED CREDIT.— 
8 
For purposes of subsection (c)(5), the amount 
9 
of qualified energy research expenses taken into 
10 
account for the taxable year for which the cred11 
it is being determined shall not exceed— 
12 
‘‘(i) in the case of subsection 
13 
(c)(5)(A), 50 percent of the average quali14 
fied research expenses for the 3 taxable 
15 
years preceding the taxable year for which 
16 
the credit is being determined, and 
17 
‘‘(ii) in the case of subsection 
18 
(c)(5)(B)(ii), zero. 
19 
‘‘(C) BASIC RESEARCH AND ENERGY RE20 
SEARCH CONSORTIUM PAYMENTS.—Any amount 
21 


taken into account under paragraph (1) shall 

22 


not be taken into account under paragraph (2) 

23 


or (3) of subsection (a).’’. 

24 


(b) CONFORMING AMENDMENT.—Subparagraph (B) 
25 
of section 41(i)(1)(B), as redesignated by subsection (a), 

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325 
1 
is amended by inserting ‘‘(in the case of the increase in 
2 
the credit determined under subsection (h), December 31, 
3 
2010)’’ after ‘‘December 31, 2009’’. 
4 


(c) EFFECTIVE DATE.—The amendments made by 
5 
this section shall apply to taxable years beginning after 
6 
December 31, 2008. 
7 
Subtitle H—Other Provisions 
8 
PART 1—APPLICATION OF CERTAIN LABOR 
9 
STANDARDS TO PROJECTS FINANCED WITH 
10 
CERTAIN TAX-FAVORED BONDS 
11 
SEC. 1701. APPLICATION OF CERTAIN LABOR STANDARDS 
12 
TO PROJECTS FINANCED WITH CERTAIN TAX13 
FAVORED BONDS. 
14 
Subchapter IV of chapter 31 of the title 40, United 
15 
States Code, shall apply to projects financed with the pro16 
ceeds of— 
17 
(1) any qualified clean renewable energy bond 
18 
(as defined in section 54C of the Internal Revenue 
19 
Code of 1986) issued after the date of the enact20 
ment of this Act, 
21 


(2) any qualified energy conservation bond (as 

22 


defined in section 54D of the Internal Revenue Code 

23 


of 1986) issued after the date of the enactment of 
24 
this Act, 

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1 


(3) any qualified zone academy bond (as de


2 


fined in section 54E of the Internal Revenue Code 

3 


of 1986) issued after the date of the enactment of 

4 


this Act, 

5 


(4) any qualified school construction bond (as 
6 
defined in section 54F of the Internal Revenue Code 
7 
of 1986), and 
8 
(5) any recovery zone economic development 
9 
bond (as defined in section 1400U–2 of the Internal 
10 
Revenue Code of 1986). 
11 
PART 2—GRANTS TO PROVIDE FINANCING FOR 
12 
LOW-INCOME HOUSING 
13 
SEC. 1711. GRANTS TO STATES FOR LOW-INCOME HOUSING 
14 
PROJECTS IN LIEU OF LOW-INCOME HOUS15 
ING CREDIT ALLOCATIONS FOR 2009. 
16 
(a) IN GENERAL.—The Secretary of the Treasury 
17 
shall make a grant to the housing credit agency of each 
18 
State in an amount equal to such State’s low-income hous19 
ing grant election amount. 
20 
(b) LOW-INCOME HOUSING GRANT ELECTION 
21 
AMOUNT.—For purposes of this section, the term ‘‘low22 
income housing grant election amount’’ means, with re23 
spect to any State, such amount as the State may elect 
24 
which does not exceed 85 percent of the product of— 
25 


(1) the sum of— 

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1 


(A) 100 percent of the State housing credit 
2 
ceiling for 2009 which is attributable to 
3 


amounts described in clauses (i) and (iii) of sec


4 


tion 42(h)(3)(C) of the Internal Revenue Code 

5 


of 1986, and 
6 
(B) 40 percent of the State housing credit 
7 
ceiling for 2009 which is attributable to 
8 
amounts described in clauses (ii) and (iv) of 
9 
such section, multiplied by 
10 
(2) 10. 
11 
(c) SUBAWARDS FOR LOW-INCOME BUILDINGS.— 
12 
(1) IN GENERAL.—A State housing credit agen13 
cy receiving a grant under this section shall use such 
14 
grant to make subawards to finance the construction 
15 
or acquisition and rehabilitation of qualified low-in16 
come buildings. A subaward under this section may 
17 
be made to finance a qualified low-income building 
18 
with or without an allocation under section 42 of the 
19 
Internal Revenue Code of 1986, except that a State 
20 
housing credit agency may make subawards to fi21 


nance qualified low-income buildings without an allo


22 


cation only if it makes a determination that such use 

23 


will increase the total funds available to the State to 

24 


build and rehabilitate affordable housing. In com


25 


plying with such determination requirement, a State 

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1 


housing credit agency shall establish a process in 

2 


which applicants that are allocated credits are re


3 


quired to demonstrate good faith efforts to obtain 

4 


investment commitments for such credits before the 

5 


agency makes such subawards. 
6 
(2) SUBAWARDS SUBJECT TO SAME REQUIRE7 
MENTS AS LOW-INCOME HOUSING CREDIT ALLOCA8 
TIONS.—Any such subaward with respect to any 
9 
qualified low-income building shall be made in the 
10 
same manner and shall be subject to the same limi11 
tations (including rent, income, and use restrictions 
12 
on such building) as an allocation of housing credit 
13 
dollar amount allocated by such State housing credit 
14 
agency under section 42 of the Internal Revenue 
15 
Code of 1986, except that such subawards shall not 
16 
be limited by, or otherwise affect (except as provided 
17 
in subsection (h)(3)(J) of such section), the State 
18 
housing credit ceiling applicable to such agency. 
19 
(3) COMPLIANCE AND ASSET MANAGEMENT.— 
20 
The State housing credit agency shall perform asset 
21 


management functions to ensure compliance with 

22 


section 42 of the Internal Revenue Code of 1986 

23 


and the long-term viability of buildings funded by 

24 


any subaward under this section. The State housing 

25 


credit agency may collect reasonable fees from a 

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329 

1 


subaward recipient to cover expenses associated with 

2 


the performance of its duties under this paragraph. 

3 


The State housing credit agency may retain an 

4 


agent or other private contractor to satisfy the re


5 


quirements of this paragraph. 
6 
(4) RECAPTURE.—The State housing credit 
7 
agency shall impose conditions or restrictions, in8 
cluding a requirement providing for recapture, on 
9 
any subaward under this section so as to assure that 
10 
the building with respect to which such subaward is 
11 
made remains a qualified low-income building during 
12 
the compliance period. Any such recapture shall be 
13 
payable to the Secretary of the Treasury for deposit 
14 
in the general fund of the Treasury and may be en15 
forced by means of liens or such other methods as 
16 
the Secretary of the Treasury determines appro17 
priate. 
18 
(d) RETURN OF UNUSED GRANT FUNDS.—Any grant 
19 
funds not used to make subawards under this section be20 
fore January 1, 2011, shall be returned to the Secretary 
21 
of the Treasury on such date. Any subawards returned 
22 
to the State housing credit agency on or after such date 
23 
shall be promptly returned to the Secretary of the Treas24 
ury. Any amounts returned to the Secretary of the Treas


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1 
ury under this subsection shall be deposited in the general 
2 
fund of the Treasury. 
3 


(e) DEFINITIONS.—Any term used in this section 
4 
which is also used in section 42 of the Internal Revenue 
5 
Code of 1986 shall have the same meaning for purposes 
6 
of this section as when used in such section 42. Any ref7 
erence in this section to the Secretary of the Treasury 
8 
shall be treated as including the Secretary’s delegate. 
9 
(f) APPROPRIATIONS.—There is hereby appropriated 
10 
to the Secretary of the Treasury such sums as may be 
11 
necessary to carry out this section. 
12 
PART 3—GRANTS FOR SPECIFIED ENERGY 
13 
PROPERTY IN LIEU OF TAX CREDITS 
14 
SEC. 1721. GRANTS FOR SPECIFIED ENERGY PROPERTY IN 
15 
LIEU OF TAX CREDITS. 
16 
(a) IN GENERAL.—Upon application, the Secretary 
17 
of Energy shall, within 60 days of the application and sub18 
ject to the requirements of this section, provide a grant 
19 
to each person who places in service specified energy prop20 
erty during 2009 or 2010 to reimburse such person for 
21 
a portion of the expense of such facility as provided in 
22 
subsection (b). 
23 


(b) GRANT AMOUNT.— 

24 


(1) IN GENERAL.—The amount of the grant 

25 


under subsection (a) with respect to any specified 

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1 


energy property shall be the applicable percentage of 

2 


the basis of such facility. 

3 


(2) APPLICABLE PERCENTAGE.—For purposes 

4 


of paragraph (1), the term ‘‘applicable percentage’’ 

5 


means— 
6 
(A) 30 percent in the case of any property 
7 
described in paragraphs (1) through (4) of sub8 
section (c), and 
9 
(B) 10 percent in the case of any other 
10 
property. 
11 
(3) DOLLAR LIMITATIONS.—In the case of 
12 
property described in paragraph (2), (6), or (7) of 
13 
subsection (c), the amount of any grant under this 
14 
section with respect to such property shall not ex15 
ceed the limitation described in section 48(c)(1)(B), 
16 
48(c)(2)(B), or 48(c)(3)(B) of the Internal Revenue 
17 
Code of 1986, respectively, with respect to such 
18 
property. 
19 
(c) SPECIFIED ENERGY PROPERTY.—For purposes 
20 
of this section, the term ‘‘specified energy property’’ 
21 
means any of the following: 
22 


(1) QUALIFIED FACILITIES.—Any facility de


23 


scribed in paragraph (1), (2), (3), (4), (6), (7), (9), 

24 


or (11) of section 45(d) of the Internal Revenue 

25 


Code of 1986. 

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1 


(2) QUALIFIED FUEL CELL PROPERTY.—Any 

2 


qualified fuel cell property (as defined in section 

3 


48(c)(1) of such Code). 

4 


(3) SOLAR PROPERTY.—Any property described 

5 


in clause (i) or (ii) of section 48(a)(3)(A) of such 
6 
Code. 
7 
(4) QUALIFIED SMALL WIND ENERGY PROP8 
ERTY.—Any qualified small wind energy property 
9 
(as defined in section 48(c)(4) of such Code). 
10 
(5) GEOTHERMAL PROPERTY.—Any property 
11 
described in clause (iii) of section 48(a)(3)(A) of 
12 
such Code. 
13 
(6) QUALIFIED MICROTURBINE PROPERTY.— 
14 
Any qualified microturbine property (as defined in 
15 
section 48(c)(2) of such Code). 
16 
(7) COMBINED HEAT AND POWER SYSTEM 
17 
PROPERTY.—Any combined heat and power system 
18 
property (as defined in section 48(c)(3) of such 
19 
Code). 
20 
(8) GEOTHERMAL HEATPUMP PROPERTY.—Any 
21 
property described in clause (vii) of section 
22 


48(a)(3)(A) of such Code. 

23 


(d) APPLICATION OF CERTAIN RULES.—In making 
24 
grants under this section, the Secretary of Energy shall 
25 
apply rules similar to the rules of section 50 of the Inter-

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333 
1 
nal Revenue Code of 1986. In applying such rules, if the 
2 
facility is disposed of, or otherwise ceases to be a qualified 
3 
renewable energy facility, the Secretary of Energy shall 
4 
provide for the recapture of the appropriate percentage of 
5 
the grant amount in such manner as the Secretary of En6 
ergy determines appropriate. 
7 
(e) EXCEPTION FOR CERTAIN NON-TAXPAYERS.— 
8 
The Secretary of Energy shall not make any grant under 
9 
this section to any Federal, State, or local government (or 
10 
any political subdivision, agency, or instrumentality there11 
of) or any organization described in section 501(c) of the 
12 
Internal Revenue Code of 1986 and exempt from tax 
13 
under section 501(a) of such Code. 
14 
(f) DEFINITIONS.—Terms used in this section which 
15 
are also used in section 45 or 48 of the Internal Revenue 
16 
Code of 1986 shall have the same meaning for purposes 
17 
of this section as when used in such section 45 or 48. 
18 
Any reference in this section to the Secretary of the Treas19 
ury shall be treated as including the Secretary’s delegate. 
20 
(g) COORDINATION BETWEEN DEPARTMENTS OF 
21 
TREASURY AND ENERGY.—The Secretary of the Treasury 
22 
shall provide the Secretary of Energy with such technical 
23 
assistance as the Secretary of Energy may require in car24 
rying out this section. The Secretary of Energy shall pro25 
vide the Secretary of the Treasury with such information 

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334 
1 
as the Secretary of the Treasury may require in carrying 
2 
out the amendment made by section 1604. 
3 


(h) APPROPRIATIONS.—There is hereby appropriated 
4 
to the Secretary of Energy such sums as may be necessary 
5 
to carry out this section. 
6 
(i) TERMINATION.—The Secretary of Energy shall 
7 
not make any grant to any person under this section un8 
less the application of such person for such grant is re9 
ceived before October 1, 2011. 
10 
PART 4—STUDY OF ECONOMIC, EMPLOYMENT, 
11 
AND RELATED EFFECTS OF THIS ACT 
12 
SEC. 1731. STUDY OF ECONOMIC, EMPLOYMENT, AND RE13 
LATED EFFECTS OF THIS ACT. 
14 
On February 1, 2010, and every 3 months thereafter 
15 
in calendar year 2010, the Comptroller General of the 
16 
United States shall submit to the Committee on Ways and 
17 
Means a written report on the most recent national (and, 
18 
where available, State-by-State) information on— 
19 
(1) the economic effects of this Act; 
20 
(2) the employment effects of this Act, includ21 
ing— 
22 


(A) a comparison of the number of jobs 

23 


preserved and the number of jobs created as a 

24 


result of this Act; and 

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335 

1 


(B) a comparison of the numbers of jobs 

2 


preserved and the number of jobs created in 

3 


each of the public and private sectors; 

4 


(3) the share of tax and non-tax expenditures 

5 


provided under this Act that were spent or saved, by 
6 
group and income class; 
7 
(4) how the funds provided to States under this 
8 
Act have been spent, including a breakdown of— 
9 
(A) funds used for services provided to citi10 
zens; and 
11 
(B) wages and other compensation for 
12 
public employees; and 
13 
(5) a description of any funds made available 
14 
under this Act that remain unspent, and the reasons 
15 
why. 
16 
TITLE II—ASSISTANCE FOR UN17 
EMPLOYED WORKERS AND 
18 
STRUGGLING FAMILIES 
19 
SEC. 2000. SHORT TITLE. 
20 
This title may be cited as the ‘‘Assistance for Unem21 
ployed Workers and Struggling Families Act’’. 

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336 

1 


Subtitle A—Unemployment 

2 


Insurance 

3 
SEC. 2001. EXTENSION OF EMERGENCY UNEMPLOYMENT 
4 


COMPENSATION PROGRAM. 

5 


(a) IN GENERAL.—Section 4007 of the Supplemental 
6 
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 
7 
3304 note), as amended by section 4 of the Unemployment 
8 
Compensation Extension Act of 2008 (Public Law 1109 
449; 122 Stat. 5015), is amended— 
10 
(1) by striking ‘‘March 31, 2009’’ each place it 
11 
appears and inserting ‘‘December 31, 2009’’; 
12 
(2) in the heading for subsection (b)(2), by 
13 
striking ‘‘MARCH 31, 2009’’ and inserting ‘‘DECEM14 
BER 31, 2009’’; and 
15 
(3) in subsection (b)(3), by striking ‘‘August 
16 
27, 2009’’ and inserting ‘‘May 31, 2010’’. 
17 
(b) FINANCING PROVISIONS.—Section 4004 of such 
18 
Act is amended by adding at the end the following: 
19 
‘‘(e) TRANSFER OF FUNDS.—Notwithstanding any 
20 
other provision of law, the Secretary of the Treasury shall 
21 
transfer from the general fund of the Treasury (from 
22 
funds not otherwise appropriated)— 
23 


‘‘(1) to the extended unemployment compensa


24 


tion account (as established by section 905 of the 

25 


Social Security Act) such sums as the Secretary of 

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337 

1 


Labor estimates to be necessary to make payments 

2 


to States under this title by reason of the amend


3 


ments made by section 2001(a) of the Assistance for 

4 


Unemployed Workers and Struggling Families Act; 
5 
and 
6 
‘‘(2) to the employment security administration 
7 
account (as established by section 901 of the Social 
8 
Security Act) such sums as the Secretary of Labor 
9 
estimates to be necessary for purposes of assisting 
10 
States in meeting administrative costs by reason of 
11 
the amendments referred to in paragraph (1). 
12 
There are appropriated from the general fund of the 
13 
Treasury, without fiscal year limitation, the sums referred 
14 
to in the preceding sentence and such sums shall not be 
15 
required to be repaid.’’. 
16 
SEC. 2002. INCREASE IN UNEMPLOYMENT COMPENSATION 
17 
BENEFITS. 
18 
(a) FEDERAL-STATE AGREEMENTS.—Any State 
19 
which desires to do so may enter into and participate in 
20 
an agreement under this section with the Secretary of 
21 
Labor (hereinafter in this section referred to as the ‘‘Sec22 
retary’’). Any State which is a party to an agreement 
23 
under this section may, upon providing 30 days’ written 
24 
notice to the Secretary, terminate such agreement. 
25 


(b) PROVISIONS OF AGREEMENT.— 

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338 

1 


(1) ADDITIONAL COMPENSATION.—Any agree


2 


ment under this section shall provide that the State 

3 


agency of the State will make payments of regular 

4 


compensation to individuals in amounts and to the 

5 


extent that they would be determined if the State 
6 
law of the State were applied, with respect to any 
7 
week for which the individual is (disregarding this 
8 
section) otherwise entitled under the State law to re9 
ceive regular compensation, as if such State law had 
10 
been modified in a manner such that the amount of 
11 
regular compensation (including dependents’ allow12 
ances) payable for any week shall be equal to the 
13 
amount determined under the State law (before the 
14 
application of this paragraph) plus an additional 
15 
$25. 
16 
(2) ALLOWABLE METHODS OF PAYMENT.—Any 
17 
additional compensation provided for in accordance 
18 
with paragraph (1) shall be payable either— 
19 
(A) as an amount which is paid at the 
20 
same time and in the same manner as any reg21 


ular compensation otherwise payable for the 

22 


week involved; or 

23 


(B) at the option of the State, by pay


24 


ments which are made separately from, but on 

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339 

1 


the same weekly basis as, any regular com


2 


pensation otherwise payable. 

3 


(c) NONREDUCTION RULE.—An agreement under 
4 
this section shall not apply (or shall cease to apply) with 
5 
respect to a State upon a determination by the Secretary 
6 
that the method governing the computation of regular 
7 
compensation under the State law of that State has been 
8 
modified in a manner such that— 
9 
(1) the average weekly benefit amount of reg10 
ular compensation which will be payable during the 
11 
period of the agreement (determined disregarding 
12 
any additional amounts attributable to the modifica13 
tion described in subsection (b)(1)) will be less than 
14 
(2) the average weekly benefit amount of reg15 
ular compensation which would otherwise have been 
16 
payable during such period under the State law, as 
17 
in effect on December 31, 2008. 
18 
(d) PAYMENTS TO STATES.— 
19 
(1) IN GENERAL.— 
20 
(A) FULL REIMBURSEMENT.—There shall 
21 


be paid to each State which has entered into an 

22 


agreement under this section an amount equal 

23 


to 100 percent of— 

24 


(i) the total amount of additional 

25 


compensation (as described in subsection 

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340 


1 


(b)(1)) paid to individuals by the State 

2 


pursuant to such agreement; and 

3 


(ii) any additional administrative ex


4 


penses incurred by the State by reason of 

5 


such agreement (as determined by the Sec6 
retary). 
7 
(B) TERMS OF PAYMENTS.—Sums payable 
8 
to any State by reason of such State’s having 
9 
an agreement under this section shall be pay10 
able, either in advance or by way of reimburse11 
ment (as determined by the Secretary), in such 
12 
amounts as the Secretary estimates the State 
13 
will be entitled to receive under this section for 
14 
each calendar month, reduced or increased, as 
15 
the case may be, by any amount by which the 
16 
Secretary finds that his estimates for any prior 
17 
calendar month were greater or less than the 
18 
amounts which should have been paid to the 
19 
State. Such estimates may be made on the 
20 
basis of such statistical, sampling, or other 
21 


method as may be agreed upon by the Secretary 

22 


and the State agency of the State involved. 
23 
(2) CERTIFICATIONS.—The Secretary shall 
24 


from time to time certify to the Secretary of the 

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1 


Treasury for payment to each State the sums pay


2 


able to such State under this section. 

3 


(3) APPROPRIATION.—There are appropriated 

4 


from the general fund of the Treasury, without fiscal 

5 


year limitation, such sums as may be necessary for 
6 
purposes of this subsection. 
7 
(e) APPLICABILITY.— 
8 
(1) IN GENERAL.—An agreement entered into 
9 
under this section shall apply to weeks of unemploy10 
ment— 
11 
(A) beginning after the date on which such 
12 
agreement is entered into; and 
13 
(B) ending before January 1, 2010. 
14 
(2) TRANSITION RULE FOR INDIVIDUALS RE15 
MAINING ENTITLED TO REGULAR COMPENSATION AS 
16 
OF JANUARY 1, 2010.—In the case of any individual 
17 
who, as of the date specified in paragraph (1)(B), 
18 
has not yet exhausted all rights to regular com19 
pensation under the State law of a State with re20 
spect to a benefit year that began before such date, 
21 


additional compensation (as described in subsection 

22 


(b)(1)) shall continue to be payable to such indi


23 


vidual for any week beginning on or after such date 

24 


for which the individual is otherwise eligible for reg


25 


ular compensation with respect to such benefit year. 

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1 


(3) TERMINATION.—Notwithstanding any other 

2 


provision of this subsection, no additional compensa


3 


tion (as described in subsection (b)(1)) shall be pay


4 


able for any week beginning after June 30, 2010. 

5 


(f) FRAUD AND OVERPAYMENTS.—The provisions of 
6 
section 4005 of the Supplemental Appropriations Act, 
7 
2008 (Public Law 110–252; 122 Stat. 2356) shall apply 
8 
with respect to additional compensation (as described in 
9 
subsection (b)(1)) to the same extent and in the same 
10 
manner as in the case of emergency unemployment com11 
pensation. 
12 
(g) APPLICATION TO OTHER UNEMPLOYMENT BENE13 
FITS.— 
14 
(1) IN GENERAL.—Each agreement under this 
15 
section shall include provisions to provide that the 
16 
purposes of the preceding provisions of this section 
17 
shall be applied with respect to unemployment bene18 
fits described in subsection (h)(3) to the same extent 
19 
and in the same manner as if those benefits were 
20 
regular compensation. 
21 


(2) ELIGIBILITY AND TERMINATION RULES.— 

22 


Additional compensation (as described in subsection 
23 
(b)(1))— 
24 


(A) shall not be payable, pursuant to this 

25 


subsection, with respect to any unemployment 

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343 

1 


benefits described in subsection (h)(3) for any 

2 


week beginning on or after the date specified in 

3 


subsection (e)(1)(B), except in the case of an 

4 


individual who was eligible to receive additional 

5 


compensation (as so described) in connection 
6 
with any regular compensation or any unem7 
ployment benefits described in subsection (h)(3) 
8 
for any period of unemployment ending before 
9 
such date; and 
10 
(B) shall in no event be payable for any 
11 
week beginning after the date specified in sub12 
section (e)(3). 
13 
(h) DISREGARD OF ADDITIONAL COMPENSATION FOR 
14 
PURPOSES OF MEDICAID AND SCHIP.—The monthly 
15 
equivalent of any additional compensation paid under this 
16 
section shall be disregarded in considering the amount of 
17 
income of an individual for any purposes under title XIX 
18 
and title XXI of the Social Security Act. 
19 
(i) DEFINITIONS.—For purposes of this section— 
20 
(1) the terms ‘‘compensation’’, ‘‘regular com21 


pensation’’, ‘‘benefit year’’, ‘‘State’’, ‘‘State agency’’, 

22 


‘‘State law’’, and ‘‘week’’ have the respective mean


23 


ings given such terms under section 205 of the Fed


24 


eral-State Extended Unemployment Compensation 

25 


Act of 1970 (26 U.S.C. 3304 note); 

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1 


(2) the term ‘‘emergency unemployment com


2 


pensation’’ means emergency unemployment com


3 


pensation under title IV of the Supplemental Appro


4 


priations Act, 2008 (Public Law 110–252; 122 Stat. 

5 


2353); and 
6 
(3) any reference to unemployment benefits de7 
scribed in this paragraph shall be considered to refer 
8 
to— 
9 
(A) extended compensation (as defined by 
10 
section 205 of the Federal-State Extended Un11 
employment Compensation Act of 1970); and 
12 
(B) unemployment compensation (as de13 
fined by section 85(b) of the Internal Revenue 
14 
Code of 1986) provided under any program ad15 
ministered by a State under an agreement with 
16 
the Secretary. 
17 
SEC. 2003. SPECIAL TRANSFERS FOR UNEMPLOYMENT 
18 
COMPENSATION MODERNIZATION. 
19 
(a) IN GENERAL.—Section 903 of the Social Security 
20 
Act (42 U.S.C. 1103) is amended by adding at the end 
21 
the following: 
22 
‘‘Special Transfers in Fiscal Years 2009, 2010, and 2011 
23 


for Modernization 

24 


‘‘(f)(1)(A) In addition to any other amounts, the Sec25 
retary of Labor shall provide for the making of unemploy


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1 
ment compensation modernization incentive payments 
2 
(hereinafter ‘incentive payments’) to the accounts of the 
3 
States in the Unemployment Trust Fund, by transfer from 
4 
amounts reserved for that purpose in the Federal unem5 
ployment account, in accordance with succeeding provi6 
sions of this subsection. 
7 
‘‘(B) The maximum incentive payment allowable 
8 
under this subsection with respect to any State shall, as 
9 
determined by the Secretary of Labor, be equal to the 
10 
amount obtained by multiplying $7,000,000,000 by the 
11 
same ratio as would apply under subsection (a)(2)(B) for 
12 
purposes of determining such State’s share of any excess 
13 
amount (as described in subsection (a)(1)) that would 
14 
have been subject to transfer to State accounts, as of Oc15 
tober 1, 2008, under the provisions of subsection (a). 
16 
‘‘(C) Of the maximum incentive payment determined 
17 
under subparagraph (B) with respect to a State— 
18 
‘‘(i) one-third shall be transferred to the ac19 
count of such State upon a certification under para20 
graph (4)(B) that the State law of such State meets 
21 


the requirements of paragraph (2); and 

22 


‘‘(ii) the remainder shall be transferred to the 

23 


account of such State upon a certification under 

24 


paragraph (4)(B) that the State law of such State 

25 


meets the requirements of paragraph (3). 

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346 

1 


‘‘(2) The State law of a State meets the requirements 
2 
of this paragraph if such State law— 
3 


‘‘(A) uses a base period that includes the most 

4 


recently completed calendar quarter before the start 

5 


of the benefit year for purposes of determining eligi6 
bility for unemployment compensation; or 
7 
‘‘(B) provides that, in the case of an individual 
8 
who would not otherwise be eligible for unemploy9 
ment compensation under the State law because of 
10 
the use of a base period that does not include the 
11 
most recently completed calendar quarter before the 
12 
start of the benefit year, eligibility shall be deter13 
mined using a base period that includes such cal14 
endar quarter. 
15 
‘‘(3) The State law of a State meets the requirements 
16 
of this paragraph if such State law includes provisions to 
17 
carry out at least 2 of the following subparagraphs: 
18 
‘‘(A) An individual shall not be denied regular 
19 
unemployment compensation under any State law 
20 
provisions relating to availability for work, active 
21 


search for work, or refusal to accept work, solely be


22 


cause such individual is seeking only part-time work 

23 


(as defined by the Secretary of Labor), except that 

24 


the State law provisions carrying out this subpara


25 


graph may exclude an individual if a majority of the 

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347 

1 


weeks of work in such individual’s base period do 

2 


not include part-time work (as so defined). 

3 


‘‘(B) An individual shall not be disqualified 

4 


from regular unemployment compensation for sepa


5 


rating from employment if that separation is for any 
6 
compelling family reason. For purposes of this sub7 
paragraph, the term ‘compelling family reason’ 
8 
means the following: 
9 
‘‘(i) Domestic violence, verified by such 
10 
reasonable and confidential documentation as 
11 
the State law may require, which causes the in12 
dividual reasonably to believe that such individ13 
ual’s continued employment would jeopardize 
14 
the safety of the individual or of any member 
15 
of the individual’s immediate family (as defined 
16 
by the Secretary of Labor). 
17 
‘‘(ii) The illness or disability of a member 
18 
of the individual’s immediate family (as those 
19 
terms are defined by the Secretary of Labor). 
20 
‘‘(iii) The need for the individual to accom21 


pany such individual’s spouse— 

22 


‘‘(I) to a place from which it is im


23 


practical for such individual to commute; 
24 
and 

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348 


1 


‘‘(II) due to a change in location of 

2 


the spouse’s employment. 

3 


‘‘(C) Weekly unemployment compensation is 

4 


payable under this subparagraph to any individual 

5 


who is unemployed (as determined under the State 
6 
unemployment compensation law), has exhausted all 
7 
rights to regular unemployment compensation under 
8 
the State law, and is enrolled and making satisfac9 
tory progress in a State-approved training program 
10 
or in a job training program authorized under the 
11 
Workforce Investment Act of 1998. Such programs 
12 
shall prepare individuals who have been separated 
13 
from a declining occupation, or who have been invol14 
untarily and indefinitely separated from employment 
15 
as a result of a permanent reduction of operations 
16 
at the individual’s place of employment, for entry 
17 
into a high-demand occupation. The amount of un18 
employment compensation payable under this sub19 
paragraph to an individual for a week of unemploy20 
ment shall be equal to the individual’s average week21 


ly benefit amount (including dependents’ allowances) 

22 


for the most recent benefit year, and the total 
23 
amount of unemployment compensation payable 
24 


under this subparagraph to any individual shall be 

25 


equal to at least 26 times the individual’s average 

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349 

1 


weekly benefit amount (including dependents’ allow


2 


ances) for the most recent benefit year. 

3 


‘‘(D) Dependents’ allowances are provided, in 

4 


the case of any individual who is entitled to receive 

5 


regular unemployment compensation and who has 
6 
any dependents (as defined by State law), in an 
7 
amount equal to at least $15 per dependent per 
8 
week, subject to any aggregate limitation on such al9 
lowances which the State law may establish (but 
10 
which aggregate limitation on the total allowance for 
11 
dependents paid to an individual may not be less 
12 
than $50 for each week of unemployment or 50 per13 
cent of the individual’s weekly benefit amount for 
14 
the benefit year, whichever is less). 
15 
‘‘(4)(A) Any State seeking an incentive payment 
16 
under this subsection shall submit an application therefor 
17 
at such time, in such manner, and complete with such in18 
formation as the Secretary of Labor may within 60 days 
19 
after the date of the enactment of this subsection prescribe 
20 
(whether by regulation or otherwise), including informa21 
tion relating to compliance with the requirements of para22 
graph (2) or (3), as well as how the State intends to use 
23 
the incentive payment to improve or strengthen the State’s 
24 
unemployment compensation program. The Secretary of 
25 
Labor shall, within 30 days after receiving a complete ap


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350 
1 
plication, notify the State agency of the State of the Sec2 
retary’s findings with respect to the requirements of para3 
graph (2) or (3) (or both). 
4 


‘‘(B)(i) If the Secretary of Labor finds that the State 
5 
law provisions (disregarding any State law provisions 
6 
which are not then currently in effect as permanent law 
7 
or which are subject to discontinuation) meet the require8 
ments of paragraph (2) or (3), as the case may be, the 
9 
Secretary of Labor shall thereupon make a certification 
10 
to that effect to the Secretary of the Treasury, together 
11 
with a certification as to the amount of the incentive pay12 
ment to be transferred to the State account pursuant to 
13 
that finding. The Secretary of the Treasury shall make 
14 
the appropriate transfer within 7 days after receiving such 
15 
certification. 
16 
‘‘(ii) For purposes of clause (i), State law provisions 
17 
which are to take effect within 12 months after the date 
18 
of their certification under this subparagraph shall be con19 
sidered to be in effect as of the date of such certification. 
20 
‘‘(C)(i) No certification of compliance with the re21 
quirements of paragraph (2) or (3) may be made with re22 
spect to any State whose State law is not otherwise eligible 
23 
for certification under section 303 or approvable under 
24 
section 3304 of the Federal Unemployment Tax Act. 

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351 

1 


‘‘(ii) No certification of compliance with the require2 
ments of paragraph (3) may be made with respect to any 
3 
State whose State law is not in compliance with the re4 
quirements of paragraph (2). 
5 


‘‘(iii) No application under subparagraph (A) may be 
6 
considered if submitted before the date of the enactment 
7 
of this subsection or after the latest date necessary (as 
8 
specified by the Secretary of Labor) to ensure that all in9 
centive payments under this subsection are made before 
10 
October 1, 2011. 
11 
‘‘(5)(A) Except as provided in subparagraph (B), any 
12 
amount transferred to the account of a State under this 
13 
subsection may be used by such State only in the payment 
14 
of cash benefits to individuals with respect to their unem15 
ployment (including for dependents’ allowances and for 
16 
unemployment compensation under paragraph (3)(C)), ex17 
clusive of expenses of administration. 
18 
‘‘(B) A State may, subject to the same conditions as 
19 
set forth in subsection (c)(2) (excluding subparagraph (B) 
20 
thereof, and deeming the reference to ‘subsections (a) and 
21 
(b)’ in subparagraph (D) thereof to include this sub22 
section), use any amount transferred to the account of 
23 
such State under this subsection for the administration 
24 
of its unemployment compensation law and public employ25 
ment offices. 

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1 


‘‘(6) Out of any money in the Federal unemployment 
2 
account not otherwise appropriated, the Secretary of the 
3 
Treasury shall reserve $7,000,000,000 for incentive pay4 
ments under this subsection. Any amount so reserved shall 
5 
not be taken into account for purposes of any determina6 
tion under section 902, 910, or 1203 of the amount in 
7 
the Federal unemployment account as of any given time. 
8 
Any amount so reserved for which the Secretary of the 
9 
Treasury has not received a certification under paragraph 
10 
(4)(B) by the deadline described in paragraph (4)(C)(iii) 
11 
shall, upon the close of fiscal year 2011, become unre12 
stricted as to use as part of the Federal unemployment 
13 
account. 
14 
‘‘(7) For purposes of this subsection, the terms ‘ben15 
efit year’, ‘base period’, and ‘week’ have the respective 
16 
meanings given such terms under section 205 of the Fed17 
eral-State Extended Unemployment Compensation Act of 
18 
1970 (26 U.S.C. 3304 note). 
19 
‘‘Special Transfer in Fiscal Year 2009 for Administration 
20 
‘‘(g)(1) In addition to any other amounts, the Sec21 
retary of the Treasury shall transfer from the employment 
22 
security administration account to the account of each 
23 
State in the Unemployment Trust Fund, within 30 days 
24 
after the date of the enactment of this subsection, the 

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353 
1 
amount determined with respect to such State under para2 
graph (2). 
3 


‘‘(2) The amount to be transferred under this sub4 
section to a State account shall (as determined by the Sec5 
retary of Labor and certified by such Secretary to the Sec6 
retary of the Treasury) be equal to the amount obtained 
7 
by multiplying $500,000,000 by the same ratio as deter8 
mined under subsection (f)(1)(B) with respect to such 
9 
State. 
10 
‘‘(3) Any amount transferred to the account of a 
11 
State as a result of the enactment of this subsection may 
12 
be used by the State agency of such State only in the pay13 
ment of expenses incurred by it for— 
14 
‘‘(A) the administration of the provisions of its 
15 
State law carrying out the purposes of subsection 
16 
(f)(2) or any subparagraph of subsection (f)(3); 
17 
‘‘(B) improved outreach to individuals who 
18 
might be eligible for regular unemployment com19 
pensation by virtue of any provisions of the State 
20 
law which are described in subparagraph (A); 
21 


‘‘(C) the improvement of unemployment benefit 

22 


and unemployment tax operations, including re


23 


sponding to increased demand for unemployment 

24 


compensation; and 

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354 

1 


‘‘(D) staff-assisted reemployment services for 

2 


unemployment compensation claimants.’’. 

3 


(b) REGULATIONS.—The Secretary of Labor may 
4 
prescribe any regulations, operating instructions, or other 
5 
guidance necessary to carry out the amendment made by 
6 
subsection (a). 
7 
Subtitle B—Assistance for 
8 
Vulnerable Individuals 
9 
SEC. 2101. EMERGENCY FUND FOR TANF PROGRAM. 
10 
(a) IN GENERAL.—Section 403 of the Social Security 
11 
Act (42 U.S.C. 603) is amended by adding at the end the 
12 
following: 
13 
‘‘(c) EMERGENCY FUND.— 
14 
‘‘(1) ESTABLISHMENT.—There is established in 
15 
the Treasury of the United States a fund which 
16 
shall be known as the ‘Emergency Contingency 
17 
Fund for State Temporary Assistance for Needy 
18 
Families Programs’ (in this subsection referred to as 
19 
the ‘Emergency Fund’). 
20 
‘‘(2) DEPOSITS INTO FUND.—Out of any money 
21 


in the Treasury of the United States not otherwise 

22 


appropriated, there are appropriated such sums as 

23 


are necessary for payment to the Emergency Fund. 

24 


‘‘(3) GRANTS.— 

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1 


‘‘(A) GRANT RELATED TO CASELOAD IN


2 


CREASES.— 

3 


‘‘(i) IN GENERAL.—For each calendar 

4 


quarter in fiscal year 2009 or 2010, the 

5 


Secretary shall make a grant from the 
6 
Emergency Fund to each State that— 
7 
‘‘(I) requests a grant under this 
8 
subparagraph for the quarter; and 
9 
‘‘(II) meets the requirement of 
10 
clause (ii) for the quarter. 
11 
‘‘(ii) CASELOAD INCREASE REQUIRE12 
MENT.—A State meets the requirement of 
13 
this clause for a quarter if the average 
14 
monthly assistance caseload of the State 
15 
for the quarter exceeds the average month16 
ly assistance caseload of the State for the 
17 
corresponding quarter in the emergency 
18 
fund base year of the State. 
19 
‘‘(iii) AMOUNT OF GRANT.—Subject to 
20 
paragraph (5), the amount of the grant to 
21 


be made to a State under this subpara


22 


graph for a quarter shall be 80 percent of 

23 


the amount (if any) by which the total ex


24 


penditures of the State for basic assistance 

25 


(as defined by the Secretary) in the quar


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356 

1 


ter, whether under the State program 

2 


funded under this part or as qualified 

3 


State expenditures, exceeds the total ex


4 


penditures of the State for such assistance 

5 


for the corresponding quarter in the emer6 
gency fund base year of the State. 
7 
‘‘(B) GRANT RELATED TO INCREASED EX8 
PENDITURES FOR NON-RECURRENT SHORT 
9 
TERM BENEFITS.— 
10 
‘‘(i) IN GENERAL.—For each calendar 
11 
quarter in fiscal year 2009 or 2010, the 
12 
Secretary shall make a grant from the 
13 
Emergency Fund to each State that— 
14 
‘‘(I) requests a grant under this 
15 
subparagraph for the quarter; and 
16 
‘‘(II) meets the requirement of 
17 
clause (ii) for the quarter. 
18 
‘‘(ii) NON-RECURRENT SHORT TERM 
19 
EXPENDITURE REQUIREMENT.—A State 
20 
meets the requirement of this clause for a 
21 


quarter if the total expenditures of the 

22 


State for non-recurrent short term benefits 

23 


in the quarter, whether under the State 

24 


program funded under this part or as 

25 


qualified State expenditures, exceeds the 

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357 

1 


total such expenditures of the State for 

2 


non-recurrent short term benefits in the 

3 


corresponding quarter in the emergency 

4 


fund base year of the State. 

5 


‘‘(iii) AMOUNT OF GRANT.—Subject to 
6 
paragraph (5), the amount of the grant to 
7 
be made to a State under this subpara8 
graph for a quarter shall be an amount 
9 
equal to 80 percent of the excess described 
10 
in clause (ii). 
11 
‘‘(C) GRANT RELATED TO INCREASED EX12 
PENDITURES FOR SUBSIDIZED EMPLOYMENT.— 
13 
‘‘(i) IN GENERAL.—For each calendar 
14 
quarter in fiscal year 2009 or 2010, the 
15 
Secretary shall make a grant from the 
16 
Emergency Fund to each State that— 
17 
‘‘(I) requests a grant under this 
18 
subparagraph for the quarter; and 
19 
‘‘(II) meets the requirement of 
20 
clause (ii) for the quarter. 
21 
‘‘(ii) SUBSIDIZED EMPLOYMENT EX22 
PENDITURE REQUIREMENT.—A State 
23 


meets the requirement of this clause for a 

24 


quarter if the total expenditures of the 

25 


State for subsidized employment in the 

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1 


quarter, whether under the State program 

2 


funded under this part or as qualified 

3 


State expenditures, exceeds the total of 

4 


such expenditures of the State in the cor


5 


responding quarter in the emergency fund 
6 
base year of the State. 
7 
‘‘(iii) AMOUNT OF GRANT.—Subject to 
8 
paragraph (5), the amount of the grant to 
9 
be made to a State under this subpara10 
graph for a quarter shall be an amount 
11 
equal to 80 percent of the excess described 
12 
in clause (ii). 
13 
‘‘(4) AUTHORITY TO MAKE NECESSARY ADJUST14 
MENTS TO DATA AND COLLECT NEEDED DATA.—In 
15 
determining the size of the caseload of a State and 
16 
the expenditures of a State for basic assistance, non17 
recurrent short-term benefits, and subsidized em18 
ployment, during any period for which the State re19 
quests funds under this subsection, and during the 
20 
emergency fund base year of the State, the Sec21 


retary may make appropriate adjustments to the 

22 


data to ensure that the data reflect expenditures 

23 


under the State program funded under this part and 

24 


qualified State expenditures. The Secretary may de


25 


velop a mechanism for collecting expenditure data, 

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359 

1 


including procedures which allow States to make 

2 


reasonable estimates, and may set deadlines for 

3 


making revisions to the data. 

4 


‘‘(5) LIMITATION.—The total amount payable 

5 


to a single State under subsection (b) and this sub6 
section for a fiscal year shall not exceed 25 percent 
7 
of the State family assistance grant. 
8 
‘‘(6) LIMITATIONS ON USE OF FUNDS.—A State 
9 
to which an amount is paid under this subsection 
10 
may use the amount only as authorized by section 
11 
404. 
12 
‘‘(7) TIMING OF IMPLEMENTATION.—The Sec13 
retary shall implement this subsection as quickly as 
14 
reasonably possible, pursuant to appropriate guid15 
ance to States. 
16 
‘‘(8) DEFINITIONS.—In this subsection: 
17 
‘‘(A) AVERAGE MONTHLY ASSISTANCE 
18 
CASELOAD.—The term ‘average monthly assist19 
ance caseload’ means, with respect to a State 
20 
and a quarter, the number of families receiving 
21 


assistance during the quarter under the State 

22 


program funded under this part or as qualified 

23 


State expenditures, subject to adjustment under 

24 


paragraph (4). 

25 


‘‘(B) EMERGENCY FUND BASE YEAR.— 

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1 


‘‘(i) IN GENERAL.—The term ‘emer


2 


gency fund base year’ means, with respect 

3 


to a State and a category described in 

4 


clause (ii), whichever of fiscal year 2007 or 

5 


2008 is the fiscal year in which the 
6 
amount described by the category with re7 
spect to the State is the lesser. 
8 
‘‘(ii) CATEGORIES DESCRIBED.—The 
9 
categories described in this clause are the 
10 
following: 
11 
‘‘(I) The average monthly assist12 
ance caseload of the State. 
13 
‘‘(II) The total expenditures of 
14 
the State for non-recurrent short term 
15 
benefits, whether under the State pro16 
gram funded under this part or as 
17 
qualified State expenditures. 
18 
‘‘(III) The total expenditures of 
19 
the State for subsidized employment, 
20 
whether under the State program 
21 


funded under this part or as qualified 

22 


State expenditures. 

23 


‘‘(C) QUALIFIED STATE EXPENDITURES.— 

24 


The term ‘qualified State expenditures’ has the 

25 


meaning given the term in section 409(a)(7).’’. 

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1 


(b) TEMPORARY MODIFICATION OF CASELOAD RE2 
DUCTION CREDIT.—Section 407(b)(3)(A)(i) of such Act 
3 
(42 U.S.C. 607(b)(3)(A)(i)) is amended by inserting ‘‘(or 
4 
if the immediately preceding fiscal year is fiscal year 2009 
5 
or 2010, then, at State option, during the emergency fund 
6 
base year of the State with respect to the average monthly 
7 
assistance caseload of the State (within the meaning of 
8 
section 403(c)(8)(B)))’’ before ‘‘under the State’’. 
9 
(c) EFFECTIVE DATE.—The amendments made by 
10 
this section shall take effect on the date of the enactment 
11 
of this Act. 
12 
SEC. 2102. ONE-TIME EMERGENCY PAYMENT TO SSI RECIPI13 
ENTS. 
14 
(a) PAYMENT AUTHORITY.— 
15 
(1) IN GENERAL.—At the earliest practicable 
16 
date in calendar year 2009 but not later than 120 
17 
days after the date of the enactment of this section, 
18 
the Commissioner of Social Security shall make a 
19 
one-time payment to each individual who is deter20 
mined by the Commissioner in calendar year 2009 to 
21 


be an individual who— 

22 


(A) is entitled to a cash benefit under the 

23 


supplemental security income program under 

24 


title XVI of the Social Security Act (other than 

25 


pursuant to section 1611(e)(1)(B) of such Act) 

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1 


for at least 1 day in the calendar month in 

2 


which the first payment under this section is to 

3 


be made; or 

4 


(B)(i) was entitled to such a cash benefit 

5 


(other than pursuant to section 1611(e)(1)(B) 
6 
of such Act) for at least 1 day in the 2-month 
7 
period preceding that calendar month; and 
8 
(ii) whose entitlement to that benefit 
9 
ceased in that 2-month period solely because 
10 
the income of the individual (and the income of 
11 
the spouse, if any, of the individual) exceeded 
12 
the applicable income limit described in para13 
graph (1)(A) or (2)(A) of section 1611(a) of 
14 
such Act. 
15 
(2) AMOUNT OF PAYMENT.—Subject to sub16 
section (b)(1) of this section, the amount of the pay17 
ment shall be— 
18 
(A) in the case of an individual eligible for 
19 
a payment under this section who does not have 
20 
a spouse eligible for such a payment, an 
21 


amount equal to the average of the cash bene


22 


fits payable in the aggregate under section 

23 


1611 or 1619(a) of the Social Security Act to 

24 


eligible individuals who do not have an eligible 

25 


spouse, for the most recent month for which 

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363 

1 


data on payment of the benefits are available, 

2 


as determined by the Commissioner of Social 

3 


Security; or 

4 


(B) in the case of an individual eligible for 

5 


a payment under this section who has a spouse 
6 
eligible for such a payment, an amount equal to 
7 
the average of the cash benefits payable in the 
8 
aggregate under section 1611 or 1619(a) of the 
9 
Social Security Act to eligible individuals who 
10 
have an eligible spouse, for the most recent 
11 
month for which data on payment of the bene12 
fits are available, as so determined. 
13 
(b) ADMINISTRATIVE PROVISIONS.— 
14 
(1) AUTHORITY TO WITHHOLD PAYMENT TO 
15 
RECOVER PRIOR OVERPAYMENT OF SSI BENEFITS.— 
16 
The Commissioner of Social Security may withhold 
17 
part or all of a payment otherwise required to be 
18 
made under subsection (a) of this section to an indi19 
vidual, in order to recover a prior overpayment of 
20 
benefits to the individual under the supplemental se21 


curity income program under title XVI of the Social 

22 


Security Act, subject to the limitations of section 

23 


1631(b) of such Act. 

24 


(2) PAYMENT TO BE DISREGARDED IN DETER


25 


MINING UNDERPAYMENTS UNDER THE SSI PRO-

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1 


GRAM.—A payment under subsection (a) shall be 

2 


disregarded in determining whether there has been 

3 


an underpayment of benefits under the supplemental 

4 


security income program under title XVI of the So


5 


cial Security Act. 
6 
(3) NONASSIGNMENT.—The provisions of sec7 
tion 1631(d) of the Social Security Act shall apply 
8 
with respect to payments under this section to the 
9 
same extent as they apply in the case of title XVI 
10 
of such Act. 
11 
(c) PAYMENTS TO BE DISREGARDED FOR PURPOSES 
12 
OF ALL FEDERAL AND FEDERALLY ASSISTED PRO13 
GRAMS.—A payment under subsection (a) shall not be re14 
garded as income to the recipient, and shall not be re15 
garded as a resource of the recipient for the month of re16 
ceipt and the following 6 months, for purposes of deter17 
mining the eligibility of any individual for benefits or as18 
sistance, or the amount or extent of benefits or assistance, 
19 
under any Federal program or under any State or local 
20 
program financed in whole or in part with Federal funds. 
21 


(d) APPROPRIATION.—Out of any sums in the Treas22 
ury of the United States not otherwise appropriated, there 
23 
are appropriated such sums as may be necessary to carry 
24 
out this section. 

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365 

1 
SEC. 2103. TEMPORARY RESUMPTION OF PRIOR CHILD 
2 


SUPPORT LAW. 

3 


During the period that begins with October 1, 2008, 
4 
and ends with September 30, 2010, section 455(a)(1) of 
5 
the Social Security Act shall be applied and administered 
6 
as if the phrase ‘‘from amounts paid to the State under 
7 
section 458 or’’ did not appear in such section. 
8 
TITLE III—HEALTH INSURANCE 
9 
ASSISTANCE FOR THE UNEM10 
PLOYED 
11 
SEC. 3001. SHORT TITLE AND TABLE OF CONTENTS OF 
12 
TITLE. 
13 
(a) SHORT TITLE OF TITLE.—This title may be cited 
14 
as the ‘‘Health Insurance Assistance for the Unemployed 
15 
Act of 2009’’. 
16 
(b) TABLE OF CONTENTS OF TITLE.—The table of 
17 
contents of this title is as follows: 

Sec. 3001. Short title and table of contents of title. 
Sec. 3002. Premium assistance for COBRA benefits and extension of COBRA 
benefits for older or long-term employees. 
Sec. 3003. Temporary optional Medicaid coverage for the unemployed. 

18 
SEC. 3002. PREMIUM ASSISTANCE FOR COBRA BENEFITS 
19 


AND EXTENSION OF COBRA BENEFITS FOR 

20 


OLDER OR LONG-TERM EMPLOYEES. 

21 


(a) PREMIUM ASSISTANCE FOR COBRA CONTINU22 
ATION COVERAGE FOR INDIVIDUALS AND THEIR FAMI23 
LIES.— 

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1 


(1) PROVISION OF PREMIUM ASSISTANCE.— 
2 
(A) REDUCTION OF PREMIUMS PAY3 


ABLE.—In the case of any premium for a pe


4 


riod of coverage beginning on or after the date 

5 


of the enactment of this Act for COBRA con6 
tinuation coverage with respect to any assist7 
ance eligible individual, such individual shall be 
8 
treated for purposes of any COBRA continu9 
ation provision as having paid the amount of 
10 
such premium if such individual pays 35 per11 
cent of the amount of such premium (as deter12 
mined without regard to this subsection). 
13 
(B) PREMIUM REIMBURSEMENT.—For pro14 
visions providing the balance of such premium, 
15 
see section 6431 of the Internal Revenue Code 
16 
of 1986, as added by paragraph (12). 
17 
(2) LIMITATION OF PERIOD OF PREMIUM AS18 
SISTANCE.— 
19 
(A) IN GENERAL.—Paragraph (1)(A) shall 
20 
not apply with respect to any assistance eligible 
21 


individual for months of coverage beginning on 

22 


or after the earlier of— 

23 


(i) the first date that such individual 

24 


is eligible for coverage under any other 

25 


group health plan (other than coverage 

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367 

1 


consisting of only dental, vision, coun


2 


seling, or referral services (or a combina


3 


tion thereof), coverage under a health re4 
imbursement arrangement or a health 
5 


flexible spending arrangement, or coverage 
6 
of treatment that is furnished in an on-site 
7 
medical facility maintained by the em8 
ployer and that consists primarily of first9 
aid services, prevention and wellness care, 
10 
or similar care (or a combination thereof)) 
11 
or is eligible for benefits under title XVIII 
12 
of the Social Security Act, or 
13 
(ii) the earliest of— 
14 
(I) the date which is 12 months 
15 
after the first day of the first month 
16 
that paragraph (1)(A) applies with re17 
spect to such individual, 
18 
(II) the date following the expira19 
tion of the maximum period of con20 
tinuation coverage required under the 
21 


applicable COBRA continuation cov


22 


erage provision, or 

23 


(III) the date following the expi


24 


ration of the period of continuation 

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1 


coverage allowed under paragraph 

2 


(4)(B)(ii). 
3 
(B) TIMING OF ELIGIBILITY FOR ADDI4 


TIONAL COVERAGE.—For purposes of subpara


5 


graph (A)(i), an individual shall not be treated 
6 
as eligible for coverage under a group health 
7 
plan before the first date on which such indi8 
vidual could be covered under such plan. 
9 
(C) NOTIFICATION REQUIREMENT.—An 
10 
assistance eligible individual shall notify in writ11 
ing the group health plan with respect to which 
12 
paragraph (1)(A) applies if such paragraph 
13 
ceases to apply by reason of subparagraph 
14 
(A)(i). Such notice shall be provided to the 
15 
group health plan in such time and manner as 
16 
may be specified by the Secretary of Labor. 
17 
(3) ASSISTANCE ELIGIBLE INDIVIDUAL.—For 
18 
purposes of this section, the term ‘‘assistance eligible 
19 
individual’’ means any qualified beneficiary if— 
20 
(A) at any time during the period that be21 


gins with September 1, 2008, and ends with 

22 


December 31, 2009, such qualified beneficiary 

23 


is eligible for COBRA continuation coverage, 

24 


(B) such qualified beneficiary elects such 

25 


coverage, and 

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369 


1 


(C) the qualifying event with respect to the 

2 


COBRA continuation coverage consists of the 

3 


involuntary termination of the covered employ


4 


ee’s employment and occurred during such pe5 
riod. 
6 
(4) EXTENSION OF ELECTION PERIOD AND EF7 
FECT ON COVERAGE.— 
8 
(A) IN GENERAL.—Notwithstanding sec9 
tion 605(a) of the Employee Retirement Income 
10 
Security Act of 1974, section 4980B(f)(5)(A) of 
11 
the Internal Revenue Code of 1986, section 
12 
2205(a) of the Public Health Service Act, and 
13 
section 8905a(c)(2) of title 5, United States 
14 
Code, in the case of an individual who is a 
15 
qualified beneficiary described in paragraph 
16 
(3)(A) as of the date of the enactment of this 
17 
Act and has not made the election referred to 
18 
in paragraph (3)(B) as of such date, such indi19 
vidual may elect the COBRA continuation cov20 
erage under the COBRA continuation coverage 
21 


provisions containing such sections during the 

22 


60-day period commencing with the date on 

23 


which the notification required under paragraph 

24 


(7)(C) is provided to such individual. 

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370 

1 


(B) COMMENCEMENT OF COVERAGE; NO 

2 


REACH-BACK.—Any COBRA continuation cov


3 


erage elected by a qualified beneficiary during 

4 


an extended election period under subparagraph 

5 


(A)— 
6 
(i) shall commence on the date of the 
7 
enactment of this Act, and 
8 
(ii) shall not extend beyond the period 
9 
of COBRA continuation coverage that 
10 
would have been required under the appli11 
cable COBRA continuation coverage provi12 
sion if the coverage had been elected as re13 
quired under such provision. 
14 
(C) PREEXISTING CONDITIONS.—With re15 
spect to a qualified beneficiary who elects 
16 
COBRA continuation coverage pursuant to sub17 
paragraph (A), the period— 
18 
(i) beginning on the date of the quali19 
fying event, and 
20 
(ii) ending with the day before the 
21 


date of the enactment of this Act, 

22 


shall be disregarded for purposes of deter


23 


mining the 63-day periods referred to in section 

24 


701)(2) of the Employee Retirement Income 

25 


Security Act of 1974, section 9801(c)(2) of the 

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1 


Internal Revenue Code of 1986, and section 

2 


2701(c)(2) of the Public Health Service Act. 

3 


(5) EXPEDITED REVIEW OF DENIALS OF PRE


4 


MIUM ASSISTANCE.—In any case in which an indi


5 


vidual requests treatment as an assistance eligible 
6 
individual and is denied such treatment by the group 
7 
health plan by reason of such individual’s ineligi8 
bility for COBRA continuation coverage, the Sec9 
retary of Labor (or the Secretary of Health and 
10 
Human services in connection with COBRA continu11 
ation coverage which is provided other than pursu12 
ant to part 6 of subtitle B of title I of the Employee 
13 
Retirement Income Security Act of 1974), in con14 
sultation with the Secretary of the Treasury, shall 
15 
provide for expedited review of such denial. An indi16 
vidual shall be entitled to such review upon applica17 
tion to such Secretary in such form and manner as 
18 
shall be provided by such Secretary. Such Secretary 
19 
shall make a determination regarding such individ20 
ual’s eligibility within 10 business days after receipt 
21 


of such individual’s application for review under this 

22 


paragraph. 
23 
(6) DISREGARD OF SUBSIDIES FOR PURPOSES 
24 
OF FEDERAL AND STATE PROGRAMS.—Notwith25 


standing any other provision of law, any premium 

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372 


1 


reduction with respect to an assistance eligible indi


2 


vidual under this subsection shall not be considered 

3 


income or resources in determining eligibility for, or 

4 


the amount of assistance or benefits provided under, 

5 


any other public benefit provided under Federal law 
6 
or the law of any State or political subdivision there7 
of. 
8 
(7) NOTICES TO INDIVIDUALS.— 
9 
(A) GENERAL NOTICE.— 
10 
(i) IN GENERAL.—In the case of no11 
tices provided under section 606(4) of the 
12 
Employee Retirement Income Security Act 
13 
of 1974 (29 U.S.C. 1166(4)), section 
14 
4980B(f)(6)(D) of the Internal Revenue 
15 
Code of 1986, section 2206(4) of the Pub16 
lic Health Service Act (42 U.S.C. 300bb17 
6(4)), or section 8905a(f)(2)(A) of title 5, 
18 
United States Code, with respect to indi19 
viduals who, during the period described in 
20 
paragraph (3)(A), become entitled to elect 
21 


COBRA continuation coverage, such no


22 


tices shall include an additional notifica


23 


tion to the recipient of the availability of 

24 


premium reduction with respect to such 

25 


coverage under this subsection. 

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1 


(ii) ALTERNATIVE NOTICE.—In the 

2 


case of COBRA continuation coverage to 

3 


which the notice provision under such sec


4 


tions does not apply, the Secretary of 

5 


Labor, in consultation with the Secretary 
6 
of the Treasury and the Secretary of 
7 
Health and Human Services, shall, in co8 
ordination with administrators of the 
9 
group health plans (or other entities) that 
10 
provide or administer the COBRA continu11 
ation coverage involved, provide rules re12 
quiring the provision of such notice. 
13 
(iii) FORM.—The requirement of the 
14 
additional notification under this subpara15 
graph may be met by amendment of exist16 
ing notice forms or by inclusion of a sepa17 
rate document with the notice otherwise 
18 
required. 
19 
(B) SPECIFIC REQUIREMENTS.—Each ad20 
ditional notification under subparagraph (A) 
21 


shall include— 

22 


(i) the forms necessary for estab


23 


lishing eligibility for premium reduction 

24 


under this subsection, 

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374 

1 


(ii) the name, address, and telephone 

2 


number necessary to contact the plan ad


3 


ministrator and any other person main


4 


taining relevant information in connection 

5 


with such premium reduction, 
6 
(iii) a description of the extended elec7 
tion period provided for in paragraph 
8 
(4)(A), 
9 
(iv) a description of the obligation of 
10 
the qualified beneficiary under paragraph 
11 
(2)(C) to notify the plan providing continu12 
ation coverage of eligibility for subsequent 
13 
coverage under another group health plan 
14 
or eligibility for benefits under title XVIII 
15 
of the Social Security Act and the penalty 
16 
provided for failure to so notify the plan, 
17 
and 
18 
(v) a description, displayed in a 
19 
prominent manner, of the qualified bene20 
ficiary’s right to a reduced premium and 
21 


any conditions on entitlement to the re


22 


duced premium. 

23 


(C) NOTICE RELATING TO RETROACTIVE 

24 


COVERAGE.—In the case of an individual de


25 


scribed in paragraph (3)(A) who has elected 

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375 

1 


COBRA continuation coverage as of the date of 

2 


enactment of this Act or an individual described 

3 


in paragraph (4)(A), the administrator of the 

4 


group health plan (or other entity) involved 

5 


shall provide (within 60 days after the date of 
6 
enactment of this Act) for the additional notifi7 
cation required to be provided under subpara8 
graph (A). 
9 
(D) MODEL NOTICES.—Not later than 30 
10 
days after the date of enactment of this Act, 
11 
the Secretary of the Labor, in consultation with 
12 
the Secretary of the Treasury and the Secretary 
13 
of Health and Human Services, shall prescribe 
14 
models for the additional notification required 
15 
under this paragraph. 
16 
(8) SAFEGUARDS.—The Secretary of the Treas17 
ury shall provide such rules, procedures, regulations, 
18 
and other guidance as may be necessary and appro19 
priate to prevent fraud and abuse under this sub20 
section. 
21 


(9) OUTREACH.—The Secretary of Labor, in 

22 


consultation with the Secretary of the Treasury and 

23 


the Secretary of Health and Human Services, shall 

24 


provide outreach consisting of public education and 

25 


enrollment assistance relating to premium reduction 

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376 

1 


provided under this subsection. Such outreach shall 

2 


target employers, group health plan administrators, 

3 


public assistance programs, States, insurers, and 

4 


other entities as determined appropriate by such 

5 


Secretaries. Such outreach shall include an initial 
6 
focus on those individuals electing continuation cov7 
erage who are referred to in paragraph (7)(C). In8 
formation on such premium reduction, including en9 
rollment, shall also be made available on website of 
10 
the Departments of Labor, Treasury, and Health 
11 
and Human Services. 
12 
(10) DEFINITIONS.—For purposes of this sub13 
section— 
14 
(A) ADMINISTRATOR.—The term ‘‘admin15 
istrator’’ has the meaning given such term in 
16 
section 3(16) of the Employee Retirement In17 
come Security Act of 1974. 
18 
(B) COBRA CONTINUATION COVERAGE.— 
19 
The term ‘‘COBRA continuation coverage’’ 
20 
means continuation coverage provided pursuant 
21 


to part 6 of subtitle B of title I of the Em


22 


ployee Retirement Income Security Act of 1974 

23 


(other than under section 609), title XXII of 

24 


the Public Health Service Act, section 4980B of 

25 


the Internal Revenue Code of 1986 (other than 

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377 

1 


subsection (f)(1) of such section insofar as it 

2 


relates to pediatric vaccines), or section 8905a 

3 


of title 5, United States Code, or under a State 

4 


program that provides continuation coverage 

5 


comparable to such continuation coverage. Such 
6 
term does not include coverage under a health 
7 
flexible spending arrangement. 
8 
(C) COBRA CONTINUATION PROVISION.— 
9 
The term ‘‘COBRA continuation provision’’ 
10 
means the provisions of law described in sub11 
paragraph (B). 
12 
(D) COVERED EMPLOYEE.—The term 
13 
‘‘covered employee’’ has the meaning given such 
14 
term in section 607(2) of the Employee Retire15 
ment Income Security Act of 1974. 
16 
(E) QUALIFIED BENEFICIARY.—The term 
17 
‘‘qualified beneficiary’’ has the meaning given 
18 
such term in section 607(3) of the Employee 
19 
Retirement Income Security Act of 1974. 
20 
(F) GROUP HEALTH PLAN.—The term 
21 


‘‘group health plan’’ has the meaning given 

22 


such term in section 607(1) of the Employee 

23 


Retirement Income Security Act of 1974. 

24 


(G) STATE.—The term ‘‘State’’ includes 

25 


the District of Columbia, the Commonwealth of 

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378 

1 


Puerto Rico, the Virgin Islands, Guam, Amer


2 


ican Samoa, and the Commonwealth of the 

3 


Northern Mariana Islands. 

4 


(11) REPORTS.— 

5 


(A) INTERIM REPORT.—The Secretary of 
6 
the Treasury shall submit an interim report to 
7 
the Committee on Education and Labor, the 
8 
Committee on Ways and Means, and the Com9 
mittee on Energy and Commerce of the House 
10 
of Representatives and the Committee on 
11 
Health, Education, Labor, and Pensions and 
12 
the Committee on Finance of the Senate re13 
garding the premium reduction provided under 
14 
this subsection that includes— 
15 
(i) the number of individuals provided 
16 
such assistance as of the date of the re17 
port; and 
18 
(ii) the total amount of expenditures 
19 
incurred (with administrative expenditures 
20 
noted separately) in connection with such 
21 


assistance as of the date of the report. 

22 


(B) FINAL REPORT.—As soon as prac


23 


ticable after the last period of COBRA continu


24 


ation coverage for which premium reduction is 

25 


provided under this section, the Secretary of the 

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379 

1 


Treasury shall submit a final report to each 

2 


Committee referred to in subparagraph (A) that 

3 


includes— 

4 


(i) the number of individuals provided 

5 


premium reduction under this section; 
6 
(ii) the average dollar amount 
7 
(monthly and annually) of premium reduc8 
tions provided to such individuals; and 
9 
(iii) the total amount of expenditures 
10 
incurred (with administrative expenditures 
11 
noted separately) in connection with pre12 
mium reduction under this section. 
13 
(12) COBRA PREMIUM ASSISTANCE.— 
14 
(A) IN GENERAL.—Subchapter B of chap15 
ter 65 of the Internal Revenue Code of 1986 is 
16 
amended by adding at the end the following 
17 
new section: 
18 
‘‘SEC. 6431. COBRA PREMIUM ASSISTANCE. 
19 
‘‘(a) IN GENERAL.—The entity to whom premiums 
20 
are payable under COBRA continuation coverage shall be 
21 
reimbursed for the amount of premiums not paid by plan 
22 
beneficiaries by reason of section 3002(a) of the Health 
23 
Insurance Assistance for the Unemployed Act of 2009. 
24 
Such amount shall be treated as a credit against the re25 
quirement of such entity to make deposits of payroll taxes 

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380 
1 
and the liability of such entity for payroll taxes. To the 
2 
extent that such amount exceeds the amount of such 
3 
taxes, the Secretary shall pay to such entity the amount 
4 
of such excess. No payment may be made under this sub5 
section to an entity with respect to any assistance eligible 
6 
individual until after such entity has received the reduced 
7 
premium from such individual required under section 
8 
3002(a)(1)(A) of such Act. 
9 
‘‘(b) PAYROLL TAXES.—For purposes of this section, 
10 
the term ‘payroll taxes’ means— 
11 
‘‘(1) amounts required to be deducted and with12 
held for the payroll period under section 3401 (relat13 
ing to wage withholding), 
14 
‘‘(2) amounts required to be deducted for the 
15 
payroll period under section 3102 (relating to FICA 
16 
employee taxes), and 
17 
‘‘(3) amounts of the taxes imposed for the pay18 
roll period under section 3111 (relating to FICA em19 
ployer taxes). 
20 
‘‘(c) TREATMENT OF CREDIT.—Except as otherwise 
21 
provided by the Secretary, the credit described in sub22 
section (a) shall be applied as though the employer had 
23 
paid to the Secretary, on the day that the qualified bene24 
ficiary’s premium payment is received, an amount equal 
25 
to such credit. 

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381 
1 
‘‘(d) TREATMENT OF PAYMENT.—For purposes of 
2 
section 1324(b)(2) of title 31, United States Code, any 
3 
payment under this section shall be treated in the same 
4 
manner as a refund of the credit under section 35. 
5 


‘‘(e) REPORTING.— 
6 
‘‘(1) IN GENERAL.—Each entity entitled to re7 
imbursement under subsection (a) for any period 
8 
shall submit such reports as the Secretary may re9 
quire, including— 
10 
‘‘(A) an attestation of involuntary termi11 
nation of employment for each covered em12 
ployee on the basis of whose termination entitle13 
ment to reimbursement is claimed under sub14 
section (a), and 
15 
‘‘(B) a report of the amount of payroll 
16 
taxes offset under subsection (a) for the report17 
ing period and the estimated offsets of such 
18 
taxes for the subsequent reporting period in 
19 
connection with reimbursements under sub20 
section (a). 
21 


‘‘(2) TIMING OF REPORTS RELATING TO 
22 
AMOUNT OF PAYROLL TAXES.—Reports required 
23 


under paragraph (1)(B) shall be submitted at the 

24 


same time as deposits of taxes imposed by chapters 

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382 

1 


21, 22, and 24 or at such time as is specified by the 

2 


Secretary. 

3 


‘‘(f) REGULATIONS.—The Secretary may issue such 
4 
regulations or other guidance as may be necessary or ap5 
propriate to carry out this section, including the require6 
ment to report information or the establishment of other 
7 
methods for verifying the correct amounts of payments 
8 
and credits under this section. The Secretary shall issue 
9 
such regulations or guidance with respect to the applica10 
tion of this section to group health plans that are multiem11 
ployer plans (as defined in section 3(37) of the Employee 
12 
Retirement Income Security Act of 1974).’’. 
13 
(B) SOCIAL SECURITY TRUST FUNDS HELD 
14 
HARMLESS.—In determining any amount trans15 
ferred or appropriated to any fund under the 
16 
Social Security Act, section 6431 of the Inter17 
nal Revenue Code of 1986 shall not be taken 
18 
into account. 
19 
(C) CLERICAL AMENDMENT.—The table of 
20 
sections for subchapter B of chapter 65 of the 
21 


Internal Revenue Code of 1986 is amended by 

22 


adding at the end the following new item: 

‘‘Sec. 6431. COBRA premium assistance.’’. 

23 


(D) EFFECTIVE DATE.—The amendments 

24 


made by this paragraph shall apply to pre


25 


miums to which subsection (a)(1)(A) applies. 

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383 


1 


(13) PENALTY FOR FAILURE TO NOTIFY 

2 


HEALTH PLAN OF CESSATION OF ELIGIBILITY FOR 

3 


PREMIUM ASSISTANCE.— 

4 


(A) IN GENERAL.—Part I of subchapter B 

5 


of chapter 68 of the Internal Revenue Code of 
6 
1986 is amended by adding at the end the fol7 
lowing new section: 
8 
‘‘SEC. 6720C. PENALTY FOR FAILURE TO NOTIFY HEALTH 
9 
PLAN OF CESSATION OF ELIGIBILITY FOR 
10 
COBRA PREMIUM ASSISTANCE. 
11 
‘‘(a) IN GENERAL.—Any person required to notify a 
12 
group health plan under section 3002(a)(2)(C)) of the 
13 
Health Insurance Assistance for the Unemployed Act of 
14 
2009 who fails to make such a notification at such time 
15 
and in such manner as the Secretary of Labor may require 
16 
shall pay a penalty of 110 percent of the premium reduc17 
tion provided under such section after termination of eligi18 
bility under such subsection. 
19 
‘‘(b) REASONABLE CAUSE EXCEPTION.—No penalty 
20 
shall be imposed under subsection (a) with respect to any 
21 
failure if it is shown that such failure is due to reasonable 
22 
cause and not to willful neglect.’’. 
23 


(B) CLERICAL AMENDMENT.—The table of 

24 


sections of part I of subchapter B of chapter 68 

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384 

1 


of such Code is amended by adding at the end 

2 


the following new item: 

‘‘Sec. 6720C. Penalty for failure to notify health plan of cessation of eligibility 
for COBRA premium assistance.’’. 

3 


(C) EFFECTIVE DATE.—The amendments 

4 


made by this paragraph shall apply to failures 
5 
occurring after the date of the enactment of 
6 
this Act. 
7 
(14) COORDINATION WITH HCTC.— 
8 
(A) IN GENERAL.—Subsection (g) of sec9 
tion 35 of the Internal Revenue Code of 1986 
10 
is amended by redesignating paragraph (9) as 
11 
paragraph (10) and inserting after paragraph 
12 
(8) the following new paragraph: 
13 
‘‘(9) COBRA PREMIUM ASSISTANCE.—In the 
14 
case of an assistance eligible individual who receives 
15 
premium reduction for COBRA continuation cov16 
erage under section 3002(a) of the Health Insurance 
17 
Assistance for the Unemployed Act of 2009 for any 
18 
month during the taxable year, such individual shall 
19 
not be treated as an eligible individual, a certified 
20 


individual, or a qualifying family member for pur


21 


poses of this section or section 7527 with respect to 

22 


such month.’’. 

23 


(B) EFFECTIVE DATE.—The amendment 

24 


made by subparagraph (A) shall apply to tax-

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385 

1 


able years ending after the date of the enact


2 


ment of this Act. 
3 
(15) EXCLUSION OF COBRA PREMIUM ASSIST4 


ANCE FROM GROSS INCOME.— 

5 


(A) IN GENERAL.—Part III of subchapter 
6 
B of chapter 1 of the Internal Revenue Code of 
7 
1986 is amended by inserting after section 
8 
139B the following new section: 
9 
‘‘SEC. 139C. COBRA PREMIUM ASSISTANCE. 
10 
‘‘In the case of an assistance eligible individual (as 
11 
defined in section 3002 of the Health Insurance Assist12 
ance for the Unemployed Act of 2009), gross income does 
13 
not include any premium reduction provided under sub14 
section (a) of such section.’’. 
15 
(B) CLERICAL AMENDMENT.—The table of 
16 
sections for part III of subchapter B of chapter 
17 
1 of such Code is amended by inserting after 
18 
the item relating to section 139B the following 
19 
new item: 

‘‘Sec. 139C. COBRA premium assistance.’’. 

20 


(C) EFFECTIVE DATE.—The amendments 

21 


made by this paragraph shall apply to taxable 

22 


years ending after the date of the enactment of 
23 
this Act. 
24 


(b) EXTENSION OF COBRA BENEFITS FOR OLDER 
25 
OR LONG-TERM EMPLOYEES.— 

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386 

1 


(1) ERISA AMENDMENT.—Section 602(2)(A) 

2 


of the Employee Retirement Income Security Act of 

3 


1974 is amended by adding at the end the following 

4 


new clauses: 

5 


‘‘(x) SPECIAL RULE FOR OLDER OR 
6 
LONG-TERM EMPLOYEES GENERALLY.—In 
7 
the case of a qualifying event described in 
8 
section 603(2) with respect to a covered 
9 
employee who (as of such qualifying event) 
10 
has attained age 55 or has completed 10 
11 
or more years of service with the entity 
12 
that is the employer at the time of the 
13 
qualifying event, clauses (i) and (ii) shall 
14 
not apply. For purposes of this clause, in 
15 
the case of a group health plan that is a 
16 
multiemployer plan, service by the covered 
17 
employee performed for 2 or more employ18 
ers during periods for which such employ19 
ers contributed to such plan shall be treat20 
ed as service performed for the entity re21 


ferred to in the preceding sentence. 
22 
‘‘(xi) YEAR OF SERVICE.— For pur23 


poses of this subparagraph, the term ‘year 

24 


of service’ shall have the meaning provided 

25 


in section 202(a)(3).’’. 

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387 


1 


(2) IRC AMENDMENT.—Clause (i) of section 

2 


4980B(f)(2)(B) of the Internal Revenue Code of 

3 


1986 is amended by adding at the end the following 

4 


new subclauses: 

5 


‘‘(X) SPECIAL RULE FOR OLDER 
6 
OR LONG-TERM EMPLOYEES GEN7 
ERALLY.—In the case of a qualifying 
8 
event described in paragraph (3)(B) 
9 
with respect to a covered employee 
10 
who (as of such qualifying event) has 
11 
attained age 55 or has completed 10 
12 
or more years of service with the enti13 
ty that is the employer at the time of 
14 
the qualifying event, subclauses (I) 
15 
and (II) shall not apply. For purposes 
16 
of this subclause, in the case of a 
17 
group health plan that is a multiem18 
ployer plan (as defined in section 
19 
3(37) of the Employee Retirement In20 
come Security Act of 1974), service by 
21 


the covered employee performed for 2 

22 


or more employers during periods for 

23 


which such employers contributed to 

24 


such plan shall be treated as service 

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388 

1 


performed for the entity referred to in 

2 


the preceding sentence. 
3 
‘‘(XI) YEAR OF SERVICE.— For 
4 


purposes of this clause, the term ‘year 

5 


of service’ shall have the meaning pro6 
vided in section 202(a)(3) of the Em7 
ployee Retirement Income Security 
8 
Act of 1974.’’. 
9 
(3) PHSA AMENDMENT.—Section 2202(2)(A) 
10 
of the Public Health Service Act is amended by add11 
ing at the end the following new clauses: 
12 
‘‘(viii) SPECIAL RULE FOR OLDER OR 
13 
LONG-TERM EMPLOYEES GENERALLY.—In 
14 
the case of a qualifying event described in 
15 
section 2203(2) with respect to a covered 
16 
employee who (as of such qualifying event) 
17 
has attained age 55 or has completed 10 
18 
or more years of service with the entity 
19 
that is the employer at the time of the 
20 
qualifying event, clauses (i) and (ii) shall 
21 


not apply. For purposes of this clause, in 

22 


the case of a group health plan that is a 

23 


multiemployer plan (as defined in section 

24 


3(37) of the Employee Retirement Income 

25 


Security Act of 1974), service by the cov


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389 

1 


ered employee performed for 2 or more 

2 


employers during periods for which such 

3 


employers contributed to such plan shall be 

4 


treated as service performed for the entity 

5 


referred to in the preceding sentence. 
6 
‘‘(ix) YEAR OF SERVICE.— For pur7 
poses of this subparagraph, the term ‘year 
8 
of service’ shall have the meaning provided 
9 
in section 202(a)(3) of the Employee Re10 
tirement Income Security Act of 1974.’’. 
11 
(4) EFFECTIVE DATE OF AMENDMENTS.—The 
12 
amendments made by this subsection shall apply to 
13 
periods of coverage which would (without regard to 
14 
the amendments made by this section) end on or 
15 
after the date of the enactment of this Act. 
16 
SEC. 3003. TEMPORARY OPTIONAL MEDICAID COVERAGE 
17 
FOR THE UNEMPLOYED. 
18 
(a) IN GENERAL.—Section 1902 of the Social Secu19 
rity Act (42 U.S.C. 1396b) is amended— 
20 
(1) in subsection (a)(10)(A)(ii)— 
21 


(A) by striking ‘‘or’’ at the end of sub


22 


clause (XVIII); 

23 


(B) by adding ‘‘or’’ at the end of subclause 

24 


(XIX); and 

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390 

1 


(C) by adding at the end the following new 

2 


subclause 

3 


‘‘(XX) who are described in sub


4 


section (dd)(1) (relating to certain un


5 


employed individuals and their fami6 
lies);’’; and 
7 
(2) by adding at the end the following new sub8 
section: 
9 
‘‘(dd)(1) Individuals described in this paragraph 
10 
are— 
11 
‘‘(A) individuals who— 
12 
‘‘(i) are within one or more of the categories de13 
scribed in paragraph (2), as elected under the State 
14 
plan; and 
15 
‘‘(ii) meet the applicable requirements of para16 
graph (3); and 
17 
‘‘(B) individuals who— 
18 
‘‘(i) are the spouse, or dependent child under 
19 
19 years of age, of an individual described in sub20 
paragraph (A); and 
21 


‘‘(ii) meet the requirement of paragraph (3)(B). 

22 


‘‘(2) The categories of individuals described in this 
23 
paragraph are each of the following: 
24 


‘‘(A)(i) Individuals who are receiving unemploy


25 


ment compensation benefits; and 

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391 

1 


‘‘(ii) individuals who were receiving, but have 

2 


exhausted, unemployment compensation benefits on 

3 


or after July 1, 2008. 

4 


‘‘(B) Individuals who are involuntarily unem


5 


ployed and were involuntarily separated from em6 
ployment on or after September 1, 2008, and before 
7 
January 1, 2011, whose family gross income does 
8 
not exceed a percentage specified by the State (not 
9 
to exceed 200 percent) of the income official poverty 
10 
line (as defined by the Office of Management and 
11 
Budget, and revised annually in accordance with sec12 
tion 673(2) of the Omnibus Budget Reconciliation 
13 
Act of 1981) applicable to a family of the size in14 
volved, and who, but for subsection 
15 
(a)(10)(A)(ii)(XX), are not eligible for medical as16 
sistance under this title or health assistance under 
17 
title XXI. 
18 
‘‘(C) Individuals who are involuntarily unem19 
ployed and were involuntarily separated from em20 
ployment on or after September 1, 2008, and before 
21 


January 1, 2011, who are members of households 

22 


participating in the supplemental nutrition assist


23 


ance program established under the Food and Nutri


24 


tion Act of 2008 (7 U.S.C. 2011 et seq), and who, 

25 


but for subsection (a)(10)(A)(ii)(XX), are not eligi


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392 

1 


ble for medical assistance under this title or health 

2 


assistance under title XXI. 

3 


‘‘(3) The requirements of this paragraph with respect 
4 
to an individual are the following: 
5 


‘‘(A) In the case of individuals within a cat6 
egory described in subparagraph (A)(i) of paragraph 
7 
(2), the individual was involuntarily separated from 
8 
employment on or after September 1, 2008, and be9 
fore January 1, 2011, or meets such comparable re10 
quirement as the Secretary specifies through rule, 
11 
guidance, or otherwise in the case of an individual 
12 
who was an independent contractor. 
13 
‘‘(B) The individual is not otherwise covered 
14 
under creditable coverage, as defined in section 
15 
2701(c) of the Public Health Service Act (42 U.S.C. 
16 
300gg(c)), but applied without regard to paragraph 
17 
(1)(F) of such section and without regard to cov18 
erage provided by reason of the application of sub19 
section (a)(10)(A)(ii)(XX). 
20 
‘‘(4)(A) No income or resources test shall be applied 
21 
with respect to any category of individuals described in 
22 
subparagraph (A) or (C) of paragraph (2) who are eligible 
23 
for medical assistance only by reason of the application 
24 
of subsection (a)(10)(A)(ii)(XX). 

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393 

1 


‘‘(B) Nothing in this subsection shall be construed 
2 
to prevent a State from imposing a resource test for the 
3 
category of individuals described in paragraph (2)(B)). 
4 


‘‘(C) In the case of individuals described in paragra