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H.R. 1 (111th): American Recovery and Reinvestment Act of 2009

The text of the bill below is as of Jan 28, 2009 (Passed the House (Engrossed)).

Source: GPO

I

111th CONGRESS

1st Session

H. R. 1

IN THE HOUSE OF REPRESENTATIVES

AN ACT

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.

Short Title

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

2.

Table of contents

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 Education

Title X—Military Construction and Veterans Affairs

Title XI—Department of State

Title XII—Transportation, and Housing and Urban Development

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 Unemployed

Title IV—Health Information Technology

Title V—Medicaid Provisions

Title VI—Broadband Communications

Title VII—Energy

3.

Purposes and principles

(a)

Statement of purposes

The purposes of this Act include the following:

(1)

To preserve and create jobs and promote economic recovery.

(2)

To assist those most impacted by the recession.

(3)

To provide investments needed to increase economic efficiency by spurring technological advances in science and health.

(4)

To invest in transportation, environmental protection, and other infrastructure that will provide long-term economic benefits.

(5)

To stabilize State and local government budgets, in order to minimize and avoid reductions in essential services and counterproductive state and local tax increases.

(b)

General principles concerning use of funds

The President and the heads of Federal departments and agencies shall manage and expend the funds made available in this Act so as to achieve the purposes specified in subsection (a), including commencing expenditures and activities as quickly as possible consistent with prudent management.

4.

References

Except as expressly provided otherwise, any reference to this Act contained in any division of this Act shall be treated as referring only to the provisions of that division.

5.

Emergency designations

(a)

In general

Each amount in this Act is designated as an emergency requirement and necessary to meet emergency needs pursuant to section 204(a) of S. Con. Res. 21 (110th Congress) and section 301(b)(2) of S. Con. Res. 70 (110th Congress), the concurrent resolutions on the budget for fiscal years 2008 and 2009.

(b)

Pay-as-you-go

All applicable provisions in this Act are designated as an emergency for purposes of pay-as-you-go principles.

A

Appropriation Provisions

1001.

Statement of appropriations

The following sums in this Act are appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 2009, and for other purposes.

I

General Provisions

A

Use of Funds

1101.

Relationship to other appropriations

Each amount appropriated or made available in this Act is in addition to amounts otherwise appropriated for the fiscal year involved. Enactment of this Act shall have no effect on the availability of amounts under the Continuing Appropriations Resolution, 2009 (division A of Public Law 110–329).

1102.

Preference for quick-start activities

In using funds made available in this Act for infrastructure investment, recipients shall give preference to activities that can be started and completed expeditiously, including a goal of using at least 50 percent of the funds for activities that can be initiated not later than 120 days after the date of the enactment of this Act. Recipients shall also use grant funds in a manner that maximizes job creation and economic benefit.

1103.

Requirement of timely award of grants

(a)

Formula grants

Formula grants using funds made available in this Act shall be awarded not later than 30 days after the date of the enactment of this Act (or, in the case of appropriations not available upon enactment, not later than 30 days after the appropriation becomes available for obligation), unless expressly provided otherwise in this Act.

(b)

Competitive grants

Competitive grants using funds made available in this Act shall be awarded not later than 90 days after the date of the enactment of this Act (or, in the case of appropriations not available upon enactment, not later than 90 days after the appropriation becomes available for obligation), unless expressly provided otherwise in this Act.

(c)

Additional period for new programs

The time limits specified in subsections (a) and (b) may each be extended by up to 30 days in the case of grants for which funding was not provided in fiscal year 2008.

1104.

Use it or lose it requirements for grantees

(a)

Deadline for binding commitments

Each recipient of a grant made using amounts made available in this Act in any account listed in subsection (c) shall enter into contracts or other binding commitments not later than 1 year after the date of the enactment of this Act (or not later than 9 months after the grant is awarded, if later) to make use of 50 percent of the funds awarded, and shall enter into contracts or other binding commitments not later than 2 years after the date of the enactment of this Act (or not later than 21 months after the grant is awarded, if later) to make use of the remaining funds. In the case of activities to be carried out directly by a grant recipient (rather than by contracts, subgrants, or other arrangements with third parties), a certification by the recipient specifying the amounts, planned timing, and purpose of such expenditures shall be deemed a binding commitment for purposes of this section.

(b)

Redistribution of uncommitted funds

The head of the Federal department or agency involved shall recover or deobligate any grant funds not committed in accordance with subsection (a), and redistribute such funds to other recipients eligible under the grant program and able to make use of such funds in a timely manner (including binding commitments within 120 days after the reallocation).

(c)

Appropriations to which this section applies

This section shall apply to grants made using amounts appropriated in any of the following accounts within this Act:

(1)

Environmental Protection Agency—State and Tribal Assistance Grants.

(2)

Department of Transportation—Federal Aviation Administration—Grants-in-Aid for Airports.

(3)

Department of Transportation—Federal Railroad Administration—Capital Assistance for Intercity Passenger Rail Service.

(4)

Department of Transportation—Federal Transit Administration—Capital Investment Grants.

(5)

Department of Transportation—Federal Transit Administration—Fixed Guideway Infrastructure Investment.

(6)

Department of Transportation—Federal Transit Administration—Transit Capital Assistance.

(7)

Department of Housing and Urban Development—Public and Indian Housing—Public Housing Capital Fund.

(8)

Department of Housing and Urban Development—Public and Indian Housing—Elderly, Disabled, and Section 8 Assisted Housing Energy Retrofit.

(9)

Department of Housing and Urban Development—Public and Indian Housing—Native American Housing Block Grants.

(10)

Department of Housing and Urban Development—Community Planning and Development—HOME Investment Partnerships Program.

(11)

Department of Housing and Urban Development—Community Planning and Development—Self-Help and Assisted Homeownership Opportunity Program.

1105.

Period of availability

(a)

In general

All funds appropriated in this Act shall remain available for obligation until September 30, 2010, unless expressly provided otherwise in this Act.

(b)

Reobligation

Amounts that are not needed or cannot be used under title X of this Act for the activity for which originally obligated may be deobligated and, notwithstanding the limitation on availability specified in subsection (a), reobligated for other activities that have received funding from the same account or appropriation in such title.

1106.

Set-aside for management and oversight

Unless other provision is made in this Act (or in other applicable law) for such expenses, up to 0.5 percent of each amount appropriated in this Act may be used for the expenses of management and oversight of the programs, grants, and activities funded by such appropriation, and may be transferred by the head of the Federal department or agency involved to any other appropriate account within the department or agency for that purpose. Funds set aside under this section shall remain available for obligation until September 30, 2012.

1107.

Appropriations for Inspectors General

In addition to funds otherwise made available in this Act, there are hereby appropriated the following sums to the specified Offices of Inspector General, to remain available until September 30, 2013, for oversight and audit of programs, grants, and projects funded under this Act:

(1)

Department of Agriculture—Office of Inspector General, $22,500,000.

(2)

Department of Commerce—Office of Inspector General, $10,000,000.

(3)

Department of Defense—Office of the Inspector General, $15,000,000.

(4)

Department of Education—Departmental Management—Office of the Inspector General, $14,000,000.

(5)

Department of Energy—Office of Inspector General, $15,000,000.

(6)

Department of Health and Human Services—Office of the Secretary—Office of Inspector General, $19,000,000.

(7)

Department of Homeland Security—Office of Inspector General, $2,000,000.

(8)

Department of Housing and Urban Development—Management and Administration—Office of Inspector General, $15,000,000.

(9)

Department of the Interior—Office of Inspector General, $15,000,000.

(10)

Department of Justice—Office of Inspector General, $2,000,000.

(11)

Department of Labor—Departmental Management—Office of Inspector General, $6,000,000.

(12)

Department of Transportation—Office of Inspector General, $20,000,000.

(13)

Department of Veterans Affairs—Office of Inspector General, $1,000,000.

(14)

Environmental Protection Agency—Office of Inspector General, $20,000,000.

(15)

General Services Administration—General Activities—Office of Inspector General, $15,000,000.

(16)

National Aeronautics and Space Administration—Office of Inspector General, $2,000,000.

(17)

National Science Foundation—Office of Inspector General, $2,000,000.

(18)

Small Business Administration—Office of Inspector General, $10,000,000.

(19)

Social Security Administration—Office of Inspector General, $2,000,000.

(20)

Corporation for National and Community Service—Office of Inspector General, $1,000,000.

1108.

Appropriation for Government Accountability Office

There is hereby appropriated as an additional amount for Government Accountability Office—Salaries and Expenses $25,000,000, for oversight activities relating to this Act.

1109.

Prohibited uses

None of the funds appropriated or otherwise made available in this Act may be used for any casino or other gambling establishment, aquarium, zoo, golf course, or swimming pool.

1110.

Use of American iron and steel

(a)

In general

None of the funds appropriated or otherwise made available by this Act may be used for a project for the construction, alteration, maintenance, or repair of a public building or public work unless all of the iron and steel used in the project is produced in the United States.

(b)

Exceptions

Subsection (a) shall not apply in any case in which the head of the Federal department or agency involved finds that—

(1)

applying subsection (a) would be inconsistent with the public interest;

(2)

iron and steel are not produced in the United States in sufficient and reasonably available quantities and of a satisfactory quality; or

(3)

inclusion of iron and steel produced in the United States will increase the cost of the overall project by more than 25 percent.

(c)

Written justification for waiver

If the head of a Federal department or agency determines that it is necessary to waive the application of subsection (a) based on a finding under subsection (b), the head of the department or agency shall publish in the Federal Register a detailed written justification as to why the provision is being waived.

(d)

Definitions

In this section, the terms public building and public work have the meanings given such terms in section 1 of the Buy American Act (41 U.S.C. 10c) and include airports, bridges, canals, dams, dikes, pipelines, railroads, multiline mass transit systems, roads, tunnels, harbors, and piers.

1111.

Wage rate requirements

Notwithstanding any other provision of law and in a manner consistent with other provisions in this Act, all laborers and mechanics employed by contractors and subcontractors on projects funded directly by or assisted in whole or in part by and through the Federal Government pursuant to this Act shall be paid wages at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code. With respect to the labor standards specified in this section, the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States Code.

1112.

Additional assurance of appropriate use of funds

None of the funds provided by this Act may be made available to the State of Illinois, or any agency of the State, unless: (1) the use of such funds by the State is approved in legislation enacted by the State after the date of the enactment of this Act; or (2) Rod R. Blagojevich no longer holds the office of Governor of the State of Illinois. The preceding sentence shall not apply to any funds provided directly to a unit of local government: (1) by a Federal department or agency; or (2) by an established formula from the State.

1113.

Persistent Poverty Counties

(a)

Allocation Requirement

Of the amount appropriated in this Act for Department of Agriculture—Rural Development Programs—Rural Community Advancement Program, at least 10 percent shall be allocated for assistance in persistent poverty counties.

(b)

Definition

For purposes of this section, the term persistent poverty counties means any county that has had 20 percent or more of its population living in poverty over the past 30 years, as measured by the 1980, 1990, and 2000 decennial censuses.

1114.

Required participation in E-verify program

None of the funds made available in this Act may be used to enter into a contract with an entity that does not participate in the E-verify program described in section 401(b) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note).

1115.

Additional funding distribution and assurance of appropriate use of funds

(a)

Certification by Governor

Not later than 45 days after the date of enactment of this Act, for funds provided to any State or agency thereof, the Governor of the State shall certify that the State will request and use funds provided by this Act.

(b)

Acceptance by State legislature

If funds provided to any State in any division of this Act are not accepted for use by the Governor, then acceptance by the State legislature, by means of the adoption of a concurrent resolution, shall be sufficient to provide funding to such State.

(c)

Distribution

After the adoption of a State legislature’s concurrent resolution, funding to the State will be for distribution to local governments, councils of government, public entities, and public-private entities within the State either by formula or at the State’s discretion.

B

Accountability in Recovery Act Spending

1

Transparency and Oversight Requirements

1201.

Transparency requirements

(a)

Requirements for Federal agencies

Each Federal agency shall publish on the website Recovery.gov (as established under section 1226 of this subtitle)—

(1)

a plan for using funds made available in this Act to the agency; and

(2)

all announcements for grant competitions, allocations of formula grants, and awards of competitive grants using those funds.

(b)

Requirements for Federal, State, and local government agencies

(1)

Infrastructure investment funding

With respect to funds made available under this Act for infrastructure investments to Federal, State, or local government agencies, the following requirements apply:

(A)

Each such agency shall notify the public of funds obligated to particular infrastructure investments by posting the notification on the website Recovery.gov.

(B)

The notification required by subparagraph (A) shall include the following:

(i)

A description of the infrastructure investment funded.

(ii)

The purpose of the infrastructure investment.

(iii)

The total cost of the infrastructure investment.

(iv)

The rationale of the agency for funding the infrastructure investment with funds made available under this Act.

(v)

The name of the person to contact at the agency if there are concerns with the infrastructure investment and, with respect to Federal agencies, an email address for the Federal official in the agency whom the public can contact.

(vi)

In the case of State or local agencies, a certification from the Governor, mayor, or other chief executive, as appropriate, that the infrastructure investment has received the full review and vetting required by law and that the chief executive accepts responsibility that the infrastructure investment is an appropriate use of taxpayer dollars. A State or local agency may not receive infrastructure investment funding from funds made available in this Act unless this certification is made.

(2)

Operational funding

With respect to funds made available under this Act in the form of grants for operational purposes to State or local government agencies or other organizations, the agency or organization shall publish on the website Recovery.gov a description of the intended use of the funds, including the number of jobs sustained or created.

(c)

Availability on Internet of contracts and grants

Each contract awarded or grant issued using funds made available in this Act shall be posted on the Internet and linked to the website Recovery.gov. Proprietary data that is required to be kept confidential under applicable Federal or State law or regulation shall be redacted before posting.

1202.

Inspector General reviews

(a)

Reviews

Any inspector general of a Federal department or executive agency shall review, as appropriate, any concerns raised by the public about specific investments using funds made available in this Act. Any findings of an inspector general resulting from such a review shall be relayed immediately to the head of each department and agency. In addition, the findings of such reviews, along with any audits conducted by any inspector general of funds made available in this Act, shall be posted on the Internet and linked to the website Recovery.gov.

(b)

Examination of records

The Inspector General of the agency concerned may examine any records related to obligations of funds made available in this Act.

1203.

Government Accountability Office reviews and reports

(a)

Reviews and reports

The Comptroller General of the United States shall conduct bimonthly reviews and prepare reports on such reviews on the use by selected States and localities of funds made available in this Act. Such reports, along with any audits conducted by the Comptroller General of such funds, shall be posted on the Internet and linked to the website Recovery.gov.

(b)

Examination of records

The Comptroller General may examine any records related to obligations of funds made available in this Act.

1204.

Council of Economic Advisers Reports

The Chairman of the Council of Economic Advisers, in consultation with the Director of the Office of Management and Budget and the Secretary of the Treasury, shall submit quarterly reports to Congress detailing the estimated impact of programs under this Act on employment, economic growth, and other key economic indicators.

1205.

Special contracting provisions

The Federal Acquisition Regulation shall apply to contracts awarded with funds made available in this Act. To the maximum extent possible, such contracts shall be awarded as fixed-price contracts through the use of competitive procedures. Existing contracts so awarded may be utilized in order to obligate such funds expeditiously. Any contract awarded with such funds that is not fixed-price and not awarded using competitive procedures shall be posted in a special section of the website Recovery.gov.

2

Accountability and Transparency Board

1221.

Establishment of the Accountability and Transparency Board

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

1222.

Composition of Board

(a)

Membership

The Board shall be composed of seven members as follows:

(1)

The Chief Performance Officer of the President, who shall chair the Board.

(2)

Six members designated by the President from the inspectors general and deputy secretaries of the Departments of Education, Energy, Health and Human Services, Transportation, and other Federal departments and agencies to which funds are made available in this Act.

(b)

Terms

Each member of the Board shall serve for a term to be determined by the President.

1223.

Functions of the Board

(a)

Oversight

The Board shall coordinate and conduct oversight of spending under this Act to prevent waste, fraud, and abuse. In addition to responsibilities set forth in this subtitle, the responsibilities of the Board shall include the following:

(1)

Ensuring that the reporting of information regarding contract and grants under this Act meets applicable standards and specifies the purpose of the contract or grant and measures of performance.

(2)

Verifying that competition requirements applicable to contracts and grants under this Act and other applicable Federal law have been satisfied.

(3)

Investigating spending under this Act to determine whether wasteful spending, poor contract or grant management, or other abuses are occurring.

(4)

Reviewing whether there are sufficient qualified acquisition and grant personnel overseeing spending under this Act.

(5)

Reviewing whether acquisition and grant personnel receive adequate training and whether there are appropriate mechanisms for interagency collaboration.

(b)

Reports

(1)

Flash and other reports

The Board shall submit to Congress reports, to be known as flash reports, on potential management and funding problems that require immediate attention. The Board also shall submit to Congress such other reports as the Board considers appropriate on the use and benefits of funds made available in this Act.

(2)

Quarterly

The Board shall submit to the President and Congress quarterly reports summarizing its findings and the findings of agency inspectors general and may issue additional reports as appropriate.

(3)

Annually

On an annual basis, the Board shall prepare a consolidated report on the use of funds under this Act. All reports shall be publicly available and shall be posted on the Internet website Recovery.gov, except that portions of reports may be redacted if the portions would disclose information that is protected from public disclosure under section 552 of title 5, United States Code (popularly known as the Freedom of Information Act).

(c)

Recommendations to agencies

The Board shall make recommendations to Federal agencies on measures to prevent waste, fraud, and abuse. A Federal agency shall, within 30 days after receipt of any such recommendation, submit to the Board, the President, and the congressional committees of jurisdiction a report on whether the agency agrees or disagrees with the recommendations and what steps, if any, the agency plans to take to implement the recommendations.

1224.

Powers of the Board

(a)

Coordination of audits and investigations by agency inspectors general

The Board shall coordinate the audits and investigations of spending under this Act by agency inspectors general.

(b)

Conduct of reviews by Board

The Board may conduct reviews of spending under this Act and may collaborate on such reviews with any inspector general.

(c)

Meetings

The Board may, for the purpose of carrying out its duties under this Act, hold public meetings, sit and act at times and places, and receive information as the Board considers appropriate. The Board shall meet at least once a month.

(d)

Obtaining official data

The Board may secure directly from any department or agency of the United States information necessary to enable it to carry out its duties under this Act. Upon request of the Chairman of the Board, the head of that department or agency shall furnish that information to the Board.

(e)

Contracts

The Board may enter into contracts to enable the Board to discharge its duties under this Act.

1225.

Staffing

(a)

Executive director

The Chairman of the Board may appoint and fix the compensation of an executive director and other personnel as may be required to carry out the functions of the Board. The Director shall be paid at the rate of basic pay for level IV of the Executive Schedule.

(b)

Staff of Federal agencies

Upon request of the Board, the head of any Federal department or agency may detail any Federal official or employee, including officials and employees of offices of inspector general, to the Board without reimbursement from the Board, and such detailed staff shall retain the rights, status, and privileges of his or her regular employment without interruption.

(c)

Office space

Office space shall be provided to the Board within the Executive Office of the President.

1226.

Recovery.gov

(a)

Requirement To establish website

The Board shall establish and maintain a website on the Internet to be named Recovery.gov, to foster greater accountability and transparency in the use of funds made available in this Act.

(b)

Purpose

Recovery.gov shall be a portal or gateway to key information related to this Act and provide a window to other Government websites with related information.

(c)

Matters covered

In establishing the website Recovery.gov, the Board shall ensure the following:

(1)

The website shall provide materials explaining what this Act means for citizens. The materials shall be easy to understand and regularly updated.

(2)

The website shall provide accountability information, including a database of findings from audits, inspectors general, and the Government Accountability Office.

(3)

The website shall provide data on relevant economic, financial, grant, and contract information in user-friendly visual presentations to enhance public awareness of the use funds made available in this Act.

(4)

The website shall provide detailed data on contracts awarded by the Government for purposes of carrying out this Act, including information about the competitiveness of the contracting process, notification of solicitations for contracts to be awarded, and information about the process that was used for the award of contracts.

(5)

The website shall include printable reports on funds made available in this Act obligated by month to each State and congressional district.

(6)

The website shall provide a means for the public to give feedback on the performance of contracts awarded for purposes of carrying out this Act.

(7)

The website shall be enhanced and updated as necessary to carry out the purposes of this subtitle.

(8)

The website shall provide, by location, links to and information on how to access job opportunities created at or by entities receiving funding under this Act, including, if possible, links to or information about local employment agencies; state, local and other public agencies receiving funding; and private firms contracted to perform work funded by this Act.

1227.

Preservation of the independence of inspectors general

Inspectors general shall retain independent authority to determine whether to conduct an audit or investigation of spending under this Act. If the Board requests that an inspector general conduct or refrain from conducting an audit or investigation and the inspector general rejects the request in whole or in part, the inspector general shall, within 30 days after receipt of the request, submit to the Board, the agency head, and the congressional committees of jurisdiction a report explaining why the inspector general has rejected the request in whole or in part.

1228.

Coordination with the Comptroller General and State auditors

The Board shall coordinate its oversight activities with the Comptroller General of the United States and State auditor generals.

1229.

Independent Advisory Panel

(a)

Establishment

There is established a panel to be known as the Independent Advisory Panel to advise the Board.

(b)

Membership

The Panel shall be composed of five members appointed by the President from among individuals with expertise in economics, public finance, contracting, accounting, or other relevant fields.

(c)

Functions

The Panel shall make recommendations to the Board on actions the Board could take to prevent waste, fraud, and abuse in Federal spending under this Act.

(d)

Travel expenses

Each member of the Panel shall receive travel expenses, including per diem in lieu of subsistence, in accordance with applicable provisions under subchapter I of chapter 57 of title 5, United States Code.

1230.

Funding

There is hereby appropriated to the Board $14,000,000 to carry out this subtitle.

1231.

Board termination

The Board shall terminate 12 months after 90 percent of the funds made available under this Act have been expended, as determined by the Director of the Office of Management and Budget.

3

Additional Accountability and Transparency Provisions

1241.

Limitation on the length of certain noncompetitive contracts

No contract entered into using funds made available in this Act pursuant to the authority provided in section 303(c)(2) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 253(c)(2)) that is for an amount greater than the simplified acquisition threshold (as defined in section 4(11) of the Office of Federal Procurement Policy Act (41 U.S.C. (4)(11))—

(1)

may exceed the time necessary—

(A)

to meet the unusual and compelling requirements of the work to be performed under the contract; and

(B)

for the executive agency to enter into another contract for the required goods or services through the use of competitive procedures; and

(2)

may exceed one year unless the head of the executive agency entering into such contract determines that exceptional circumstances apply.

1242.

Access of Government Accountability Office and offices of Inspector General to certain employees

(a)

Access

Each contract awarded using funds made available in this Act shall provide that the Comptroller General and his representatives, and any representatives of an appropriate inspector general appointed under section 3 or 8G of the Inspector General Act of 1978 (5 U.S.C. App.), are authorized—

(1)

to examine any records of the contractor or any of its subcontractors, or any State or local agency administering such contract, that directly pertain to, and involve transactions relating to, the contract or subcontract; and

(2)

to interview any current employee regarding such transactions.

(b)

Relationship to existing authority

Nothing in this section shall be interpreted to limit or restrict in any way any existing authority of the Comptroller General or an Inspector General.

1243.

Protecting State and Local Government and Contractor Whistleblowers

(a)

Prohibition of reprisals

An employee of any non-Federal employer receiving funds made available in this Act may not be discharged, demoted, or otherwise discriminated against as a reprisal for disclosing to the Board, an inspector general, the Comptroller General, a member of Congress, or a Federal agency head, or their representatives, information that the employee reasonably believes is evidence of—

(1)

gross mismanagement of an executive agency contract or grant;

(2)

a gross waste of executive agency funds;

(3)

a substantial and specific danger to public health or safety; or

(4)

a violation of law related to an executive agency contract (including the competition for or negotiation of a contract) or grant awarded or issued to carry out this Act.

(b)

Investigation of complaints

(1)

A person who believes that the person has been subjected to a reprisal prohibited by subsection (a) may submit a complaint to the inspector general of the executive agency that awarded the contract or issued the grant. Unless the inspector general determines that the complaint is frivolous, the inspector general shall investigate the complaint and, upon completion of such investigation, submit a report of the findings of the investigation to the person, the person’s employer, the head of the Federal agency that awarded the contract or issued the grant, and the Board.

(2)
(A)

Except as provided under subparagraph (B), the inspector general shall make a determination that a complaint is frivolous or submit a report under paragraph (1) within 180 days after receiving the complaint.

(B)

If the inspector general is unable to complete an investigation in time to submit a report within the 180-day period specified in subparagraph (A) and the person submitting the complaint agrees to an extension of time, the inspector general shall submit a report under paragraph (1) within such additional period of time as shall be agreed upon between the inspector general and the person submitting the complaint.

(c)

Remedy and enforcement authority

(1)

Not later than 30 days after receiving an inspector general report pursuant to subsection (b), the head of the agency concerned shall determine whether there is sufficient basis to conclude that the non-Federal employer has subjected the complainant to a reprisal prohibited by subsection (a) and shall either issue an order denying relief or shall take one or more of the following actions:

(A)

Order the employer to take affirmative action to abate the reprisal.

(B)

Order the employer to reinstate the person to the position that the person held before the reprisal, together with the compensation (including back pay), employment benefits, and other terms and conditions of employment that would apply to the person in that position if the reprisal had not been taken.

(C)

Order the employer to pay the complainant an amount equal to the aggregate amount of all costs and expenses (including attorneys’ fees and expert witnesses’ fees) that were reasonably incurred by the complainant for, or in connection with, bringing the complaint regarding the reprisal, as determined by the head of the agency.

(2)

If the head of an executive agency issues an order denying relief under paragraph (1) or has not issued an order within 210 days after the submission of a complaint under subsection (b), or in the case of an extension of time under paragraph (b)(2)(B), not later than 30 days after the expiration of the extension of time, and there is no showing that such delay is due to the bad faith of the complainant, the complainant shall be deemed to have exhausted all administrative remedies with respect to the complaint, and the complainant may bring a de novo action at law or equity against the employer to seek compensatory damages and other relief available under this section in the appropriate district court of the United States, which shall have jurisdiction over such an action without regard to the amount in controversy. Such an action shall, at the request of either party to the action, be tried by the court with a jury.

(3)

An inspector general determination and an agency head order denying relief under paragraph (2) shall be admissible in evidence in any de novo action at law or equity brought pursuant to this subsection.

(4)

Whenever a person fails to comply with an order issued under paragraph (1), the head of the agency shall file an action for enforcement of such order in the United States district court for a district in which the reprisal was found to have occurred. In any action brought under this paragraph, the court may grant appropriate relief, including injunctive relief and compensatory and exemplary damages.

(5)

Any person adversely affected or aggrieved by an order issued under paragraph (1) may obtain review of the order’s conformance with this subsection, and any regulations issued to carry out this section, in the United States court of appeals for a circuit in which the reprisal is alleged in the order to have occurred. No petition seeking such review may be filed more than 60 days after issuance of the order by the head of the agency. Review shall conform to chapter 7 of title 5.

(d)

Construction

Nothing in this section may be construed to authorize the discharge of, demotion of, or discrimination against an employee for a disclosure other than a disclosure protected by subsection (a) or to modify or derogate from a right or remedy otherwise available to the employee.

(e)

Definitions

(1)

Non-Federal employer receiving funds under this Act

The term non-Federal employer receiving funds made available in this Act means—

(A)

with respect to a Federal contract awarded or Federal grant issued to carry out this Act, the contractor or grantee, as the case may be, if the contractor or grantee is an employer; or

(B)

a State or local government, if the State or local government has received funds made available in this Act.

(2)

Executive agency

The term executive agency has the meaning given that term in section 4 of the Office of Federal Procurement Policy Act (41 U.S.C. 403).

(3)

State or local government

The term State or local government means—

(A)

the government of each of the several States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, or any other territory or possession of the United States; or

(B)

the government of any political subdivision of a government listed in subparagraph (A).

4

Further Accountability and Transparency Provisions

1261.

Short title; table of contents

(a)

Short title

This part may be cited as the Whistleblower Protection Enhancement Act of 2009.

(b)

Table of contents

The table of contents for this part is as follows:

Part 4—Further Accountability and Transparency Provisions

Sec. 1261. Short title; table of contents.

Sec. 1262. Clarification of disclosures covered.

Sec. 1263. Definitional amendments.

Sec. 1264. Rebuttable presumption.

Sec. 1265. Nondisclosure policies, forms, and agreements.

Sec. 1266. Exclusion of agencies by the President.

Sec. 1267. Disciplinary action.

Sec. 1268. Government Accountability Office study on revocation of security clearances.

Sec. 1269. Alternative recourse.

Sec. 1270. National security whistleblower rights.

Sec. 1271. Enhancement of contractor employee whistleblower protections.

Sec. 1272. Prohibited personnel practices affecting the Transportation Security Administration.

Sec. 1273. Clarification of whistleblower rights relating to scientific and other research.

Sec. 1274. Effective date.

1262.

Clarification of disclosures covered

(a)

In general

Section 2302(b)(8) of title 5, United States Code, is amended—

(1)

in subparagraph (A)—

(A)

by striking which the employee or applicant reasonably believes evidences and inserting , without restriction as to time, place, form, motive, context, forum, or prior disclosure made to any person by an employee or applicant, including a disclosure made in the ordinary course of an employee’s duties, that the employee or applicant reasonably believes is evidence of; and

(B)

in clause (i), by striking a violation and inserting any violation; and

(2)

in subparagraph (B)—

(A)

by striking which the employee or applicant reasonably believes evidences and inserting , without restriction as to time, place, form, motive, context, forum, or prior disclosure made to any person by an employee or applicant, including a disclosure made in the ordinary course of an employee’s duties, of information that the employee or applicant reasonably believes is evidence of; and

(B)

in clause (i), by striking a violation and inserting any violation (other than a violation of this section).

(b)

Prohibited personnel practices under section 2302(b)(9)

Title 5, United States Code, is amended in subsections (a)(3), (b)(4)(A), and (b)(4)(B)(i) of section 1214 and in subsections (a) and (e)(1) of section 1221 by inserting or 2302(b)(9)(B)–(D) after section 2302(b)(8) each place it appears.

1263.

Definitional amendments

(a)

Disclosure

Section 2302(a)(2) of title 5, United States Code, is amended—

(1)

in subparagraph (B)(ii), by striking and at the end;

(2)

in subparagraph (C)(iii), by striking the period at the end and inserting ; and; and

(3)

by adding at the end the following:

(D)

disclosure means a formal or informal communication, but does not include a communication concerning policy decisions that lawfully exercise discretionary authority unless the employee or applicant providing the disclosure reasonably believes that the disclosure evidences—

(i)

any violation of any law, rule, or regulation; or

(ii)

gross mismanagement, a gross waste of funds, an abuse of authority, or a substantial and specific danger to public health or safety.

.

(b)

Clear and convincing evidence

Sections 1214(b)(4)(B)(ii) and 1221(e)(2) of title 5, United States Code, are amended by adding at the end the following: For purposes of the preceding sentence, clear and convincing evidence means evidence indicating that the matter to be proved is highly probable or reasonably certain..

1264.

Rebuttable presumption

Section 2302(b) of title 5, United States Code, is amended by adding at the end the following: For purposes of paragraph (8), any presumption relating to the performance of a duty by an employee who has authority to take, direct others to take, recommend, or approve any personnel action may be rebutted by substantial evidence. For purposes of paragraph (8), a determination as to whether an employee or applicant reasonably believes that such employee or applicant has disclosed information that evidences any violation of law, rule, regulation, gross mismanagement, a gross waste of funds, an abuse of authority, or a substantial and specific danger to public health or safety shall be made by determining whether a disinterested observer with knowledge of the essential facts known to or readily ascertainable by the employee or applicant could reasonably conclude that the actions of the Government evidence such violations, mismanagement, waste, abuse, or danger..

1265.

Nondisclosure policies, forms, and agreements

(a)

Personnel Action

Section 2302(a)(2)(A) of title 5, United States Code, is amended—

(1)

in clause (x), by striking and at the end;

(2)

by redesignating clause (xi) as clause (xii); and

(3)

by inserting after clause (x) the following:

(xi)

the implementation or enforcement of any nondisclosure policy, form, or agreement; and

.

(b)

Prohibited Personnel Practice

Section 2302(b) of title 5, United States Code, is amended—

(1)

in paragraph (11), by striking or at the end;

(2)

by redesignating paragraph (12) as paragraph (14); and

(3)

by inserting after paragraph (11) the following:

(12)

implement or enforce any nondisclosure policy, form, or agreement, if such policy, form, or agreement does not contain the following statement: These provisions are consistent with and do not supersede, conflict with, or otherwise alter the employee obligations, rights, or liabilities created by Executive Order No. 12958; section 7211 of title 5, United States Code (governing disclosures to Congress); section 1034 of title 10, United States Code (governing disclosures to Congress by members of the military); section 2302(b)(8) of title 5, United States Code (governing disclosures of illegality, waste, fraud, abuse, or public health or safety threats); the Intelligence Identities Protection Act of 1982 (50 U.S.C. 421 and following) (governing disclosures that could expose confidential Government agents); and the statutes which protect against disclosures that could compromise national security, including sections 641, 793, 794, 798, and 952 of title 18, United States Code, and section 4(b) of the Subversive Activities Control Act of 1950 (50 U.S.C. 783(b)). The definitions, requirements, obligations, rights, sanctions, and liabilities created by such Executive order and such statutory provisions are incorporated into this agreement and are controlling.;

(13)

conduct, or cause to be conducted, an investigation, other than any ministerial or nondiscretionary factfinding activities necessary for the agency to perform its mission, of an employee or applicant for employment because of any activity protected under this section; or

.

1266.

Exclusion of agencies by the President

Section 2302(a)(2)(C) of title 5, United States Code, is amended by striking clause (ii) and inserting the following:

(ii)
(I)

the Federal Bureau of Investigation, the Central Intelligence Agency, the Defense Intelligence Agency, the National Geospatial-Intelligence Agency, or the National Security Agency; or

(II)

as determined by the President, any Executive agency or unit thereof the principal function of which is the conduct of foreign intelligence or counterintelligence activities, if the determination (as that determination relates to a personnel action) is made before that personnel action; or

.

1267.

Disciplinary action

Section 1215(a)(3) of title 5, United States Code, is amended to read as follows:

(3)
(A)

A final order of the Board may impose—

(i)

disciplinary action consisting of removal, reduction in grade, debarment from Federal employment for a period not to exceed 5 years, suspension, or reprimand;

(ii)

an assessment of a civil penalty not to exceed $1,000; or

(iii)

any combination of disciplinary actions described under clause (i) and an assessment described under clause (ii).

(B)

In any case in which the Board finds that an employee has committed a prohibited personnel practice under paragraph (8) or (9) of section 2302(b), the Board shall impose disciplinary action if the Board finds that the activity protected under such paragraph (8) or (9) (as the case may be) was the primary motivating factor, unless that employee demonstrates, by a preponderance of the evidence, that the employee would have taken, failed to take, or threatened to take or fail to take the same personnel action, in the absence of such protected activity.

.

1268.

Government Accountability Office study on revocation of security clearances

(a)

Requirement

The Comptroller General shall conduct a study of security clearance revocations, taking effect after 1996, with respect to personnel that filed claims under chapter 12 of title 5, United States Code, in connection therewith. The study shall consist of an examination of the number of such clearances revoked, the number restored, and the relationship, if any, between the resolution of claims filed under such chapter and the restoration of such clearances.

(b)

Report

Not later than 270 days after the date of the enactment of this Act, the Comptroller General shall submit to the Committee on Oversight and Government Reform of the House of Representatives and the Committee on Homeland Security and Governmental Affairs of the Senate a report on the results of the study required by subsection (a).

1269.

Alternative recourse

(a)

In general

Section 1221 of title 5, United States Code, is amended by adding at the end the following:

(k)
(1)

If, in the case of an employee, former employee, or applicant for employment who seeks corrective action (or on behalf of whom corrective action is sought) from the Merit Systems Protection Board based on an alleged prohibited personnel practice described in section 2302(b)(8) or 2302(b)(9)(B)–(D), no final order or decision is issued by the Board within 180 days after the date on which a request for such corrective action has been duly submitted (or, in the event that a final order or decision is issued by the Board, whether within that 180-day period or thereafter, then, within 90 days after such final order or decision is issued, and so long as such employee, former employee, or applicant has not filed a petition for judicial review of such order or decision under subsection (h))—

(A)

such employee, former employee, or applicant may, after providing written notice to the Board, bring an action at law or equity for de novo review in the appropriate United States district court, which shall have jurisdiction over such action without regard to the amount in controversy, and which action shall, at the request of either party to such action, be tried by the court with a jury; and

(B)

in any such action, the court—

(i)

shall apply the standards set forth in subsection (e); and

(ii)

may award any relief which the court considers appropriate, including any relief described in subsection (g).

An appeal from a final decision of a district court in an action under this paragraph may, at the election of the appellant, be taken to the Court of Appeals for the Federal Circuit (which shall have jurisdiction of such appeal), in lieu of the United States court of appeals for the circuit embracing the district in which the action was brought.
(2)

For purposes of this subsection, the term appropriate United States district court, as used with respect to an alleged prohibited personnel practice, means the United States district court for the district in which the prohibited personnel practice is alleged to have been committed, the judicial district in which the employment records relevant to such practice are maintained and administered, or the judicial district in which resides the employee, former employee, or applicant for employment allegedly affected by such practice.

(3)

This subsection applies with respect to any appeal, petition, or other request for corrective action duly submitted to the Board, whether pursuant to section 1214(b)(2), the preceding provisions of this section, section 7513(d), or any otherwise applicable provisions of law, rule, or regulation.

.

(b)

Review of MSPB decisions

Section 7703(b) of such title 5 is amended—

(1)

in the first sentence of paragraph (1), by striking the United States Court of Appeals for the Federal Circuit and inserting the appropriate United States court of appeals; and

(2)

by adding at the end the following:

(3)

For purposes of the first sentence of paragraph (1), the term appropriate United States court of appeals means the United States Court of Appeals for the Federal Circuit, except that in the case of a prohibited personnel practice described in section 2302(b)(8) or 2302(b)(9)(B)–(D) (other than a case that, disregarding this paragraph, would otherwise be subject to paragraph (2)), such term means the United States Court of Appeals for the Federal Circuit and any United States court of appeals having jurisdiction over appeals from any United States district court which, under section 1221(k)(2), would be an appropriate United States district court for purposes of such prohibited personnel practice.

.

(c)

Compensatory damages

Section 1221(g)(1)(A)(ii) of such title 5 is amended by striking all after travel expenses, and inserting any other reasonable and foreseeable consequential damages, and compensatory damages (including attorney’s fees, interest, reasonable expert witness fees, and costs)..

(d)

Conforming amendments

(1)

Section 1221(h) of such title 5 is amended by adding at the end the following:

(3)

Judicial review under this subsection shall not be available with respect to any decision or order as to which the employee, former employee, or applicant has filed a petition for judicial review under subsection (k).

.

(2)

Section 7703(c) of such title 5 is amended by striking court. and inserting court, and in the case of a prohibited personnel practice described in section 2302(b)(8) or 2302(b)(9)(B)–(D) brought under any provision of law, rule, or regulation described in section 1221(k)(3), the employee or applicant shall have the right to de novo review in accordance with section 1221(k)..

1270.

National security whistleblower rights

(a)

In general

Chapter 23 of title 5, United States Code, is amended by inserting after section 2303 the following:

2303a.

National security whistleblower rights

(a)

Prohibition of reprisals

(1)

In general

In addition to any rights provided in section 2303 of this title, title VII of Public Law 105–272, or any other provision of law, an employee or former employee in a covered agency may not be discharged, demoted, or otherwise discriminated against (including by denying, suspending, or revoking a security clearance, or by otherwise restricting access to classified or sensitive information) as a reprisal for making a disclosure described in paragraph (2).

(2)

Disclosures described

A disclosure described in this paragraph is any disclosure of covered information which is made—

(A)

by an employee or former employee in a covered agency (without restriction as to time, place, form, motive, context, or prior disclosure made to any person by an employee or former employee, including a disclosure made in the course of an employee’s duties); and

(B)

to an authorized Member of Congress, an authorized official of an Executive agency, or the Inspector General of the covered agency in which such employee or former employee is or was employed.

(b)

Investigation of complaints

An employee or former employee in a covered agency who believes that such employee or former employee has been subjected to a reprisal prohibited by subsection (a) may submit a complaint to the Inspector General and the head of the covered agency. The Inspector General shall investigate the complaint and, unless the Inspector General determines that the complaint is frivolous, submit a report of the findings of the investigation within 120 days to the employee or former employee (as the case may be) and to the head of the covered agency.

(c)

Remedy

(1)

Within 180 days of the filing of the complaint, the head of the covered agency shall, taking into consideration the report of the Inspector General under subsection (b) (if any), determine whether the employee or former employee has been subjected to a reprisal prohibited by subsection (a), and shall either issue an order denying relief or shall implement corrective action to return the employee or former employee, as nearly as possible, to the position he would have held had the reprisal not occurred, including voiding any directive or order denying, suspending, or revoking a security clearance or otherwise restricting access to classified or sensitive information that constituted a reprisal, as well as providing back pay and related benefits, medical costs incurred, travel expenses, any other reasonable and foreseeable consequential damages, and compensatory damages (including attorney’s fees, interest, reasonable expert witness fees, and costs). If the head of the covered agency issues an order denying relief, he shall issue a report to the employee or former employee detailing the reasons for the denial.

(2)
(A)

If the head of the covered agency, in the process of implementing corrective action under paragraph (1), voids a directive or order denying, suspending, or revoking a security clearance or otherwise restricting access to classified or sensitive information that constituted a reprisal, the head of the covered agency may re-initiate procedures to issue a directive or order denying, suspending, or revoking a security clearance or otherwise restricting access to classified or sensitive information only if those re-initiated procedures are based exclusively on national security concerns and are unrelated to the actions constituting the original reprisal.

(B)

In any case in which the head of a covered agency re-initiates procedures under subparagraph (A), the head of the covered agency shall issue an unclassified report to its Inspector General and to authorized Members of Congress (with a classified annex, if necessary), detailing the circumstances of the agency’s re-initiated procedures and describing the manner in which those procedures are based exclusively on national security concerns and are unrelated to the actions constituting the original reprisal. The head of the covered agency shall also provide periodic updates to the Inspector General and authorized Members of Congress detailing any significant actions taken as a result of those procedures, and shall respond promptly to inquiries from authorized Members of Congress regarding the status of those procedures.

(3)

If the head of the covered agency has not made a determination under paragraph (1) within 180 days of the filing of the complaint (or he has issued an order denying relief, in whole or in part, whether within that 180-day period or thereafter, then, within 90 days after such order is issued), the employee or former employee may bring an action at law or equity for de novo review to seek any corrective action described in paragraph (1) in the appropriate United States district court (as defined by section 1221(k)(2)), which shall have jurisdiction over such action without regard to the amount in controversy. An appeal from a final decision of a district court in an action under this paragraph may, at the election of the appellant, be taken to the Court of Appeals for the Federal Circuit (which shall have jurisdiction of such appeal), in lieu of the United States court of appeals for the circuit embracing the district in which the action was brought.

(4)

An employee or former employee adversely affected or aggrieved by an order issued under paragraph (1), or who seeks review of any corrective action determined under paragraph (1), may obtain judicial review of such order or determination in the United States Court of Appeals for the Federal Circuit or any United States court of appeals having jurisdiction over appeals from any United States district court which, under section 1221(k)(2), would be an appropriate United States district court. No petition seeking such review may be filed more than 60 days after issuance of the order or the determination to implement corrective action by the head of the agency. Review shall conform to chapter 7.

(5)
(A)

If, in any action for damages or relief under paragraph (3) or (4), an Executive agency moves to withhold information from discovery based on a claim that disclosure would be inimical to national security by asserting the privilege commonly referred to as the state secrets privilege, and if the assertion of such privilege prevents the employee or former employee from establishing an element in support of the employee’s or former employee’s claim, the court shall resolve the disputed issue of fact or law in favor of the employee or former employee, provided that an Inspector General investigation under subsection (b) has resulted in substantial confirmation of that element, or those elements, of the employee’s or former employee’s claim.

(B)

In any case in which an Executive agency asserts the privilege commonly referred to as the state secrets privilege, whether or not an Inspector General has conducted an investigation under subsection (b), the head of that agency shall, at the same time it asserts the privilege, issue a report to authorized Members of Congress, accompanied by a classified annex if necessary, describing the reasons for the assertion, explaining why the court hearing the matter does not have the ability to maintain the protection of classified information related to the assertion, detailing the steps the agency has taken to arrive at a mutually agreeable settlement with the employee or former employee, setting forth the date on which the classified information at issue will be declassified, and providing all relevant information about the underlying substantive matter.

(d)

Applicability to non-covered agencies

An employee or former employee in an Executive agency (or element or unit thereof) that is not a covered agency shall, for purposes of any disclosure of covered information (as described in subsection (a)(2)) which consists in whole or in part of classified or sensitive information, be entitled to the same protections, rights, and remedies under this section as if that Executive agency (or element or unit thereof) were a covered agency.

(e)

Construction

Nothing in this section may be construed—

(1)

to authorize the discharge of, demotion of, or discrimination against an employee or former employee for a disclosure other than a disclosure protected by subsection (a) or (d) of this section or to modify or derogate from a right or remedy otherwise available to an employee or former employee; or

(2)

to preempt, modify, limit, or derogate any rights or remedies available to an employee or former employee under any other provision of law, rule, or regulation (including the Lloyd-La Follette Act).

No court or administrative agency may require the exhaustion of any right or remedy under this section as a condition for pursuing any other right or remedy otherwise available to an employee or former employee under any other provision of law, rule, or regulation (as referred to in paragraph (2)).
(f)

Definitions

For purposes of this section—

(1)

the term covered information, as used with respect to an employee or former employee, means any information (including classified or sensitive information) which the employee or former employee reasonably believes evidences—

(A)

any violation of any law, rule, or regulation; or

(B)

gross mismanagement, a gross waste of funds, an abuse of authority, or a substantial and specific danger to public health or safety;

(2)

the term covered agency means—

(A)

the Federal Bureau of Investigation, the Office of the Director of National Intelligence, the Central Intelligence Agency, the Defense Intelligence Agency, the National Geospatial-Intelligence Agency, the National Security Agency, and the National Reconnaissance Office; and

(B)

any other Executive agency, or element or unit thereof, determined by the President under section 2302(a)(2)(C)(ii)(II) to have as its principal function the conduct of foreign intelligence or counterintelligence activities;

(3)

the term authorized Member of Congress means—

(A)

with respect to covered information about sources and methods of the Central Intelligence Agency, the Director of National Intelligence, and the National Intelligence Program (as defined in section 3(6) of the National Security Act of 1947), a member of the House Permanent Select Committee on Intelligence, the Senate Select Committee on Intelligence, or any other committees of the House of Representatives or Senate to which this type of information is customarily provided;

(B)

with respect to special access programs specified in section 119 of title 10, an appropriate member of the Congressional defense committees (as defined in such section); and

(C)

with respect to other covered information, a member of the House Permanent Select Committee on Intelligence, the Senate Select Committee on Intelligence, the House Committee on Oversight and Government Reform, the Senate Committee on Homeland Security and Governmental Affairs, or any other committees of the House of Representatives or the Senate that have oversight over the program which the covered information concerns; and

(4)

the term authorized official of an Executive agency shall have such meaning as the Office of Personnel Management shall by regulation prescribe, except that such term shall, with respect to any employee or former employee in an agency, include the head, the general counsel, and the ombudsman of such agency.

.

(b)

Clerical Amendment

The table of sections for chapter 23 of title 5, United States Code, is amended by inserting after the item relating to section 2303 the following:

2303a. National security whistleblower rights.

.

1271.

Enhancement of contractor employee whistleblower protections

(a)

Civilian agency contracts

Section 315(c) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 265(c)) is amended—

(1)

in paragraph (1), by striking If the head and all that follows through actions: and inserting the following: Not later than 180 days after submission of a complaint under subsection (b), the head of the executive agency concerned shall determine whether the contractor concerned has subjected the complainant to a reprisal prohibited by subsection (a) and shall either issue an order denying relief or shall take one or more of the following actions:; and

(2)

by redesignating paragraph (3) as paragraph (4) and adding after paragraph (2) the following new paragraph (3):

(3)

If the head of an executive agency has not issued an order within 180 days after the submission of a complaint under subsection (b) and there is no showing that such delay is due to the bad faith of the complainant, the complainant shall be deemed to have exhausted his administrative remedies with respect to the complaint, and the complainant may bring an action at law or equity for de novo review to seek compensatory damages and other relief available under this section in the appropriate district court of the United States, which shall have jurisdiction over such an action without regard to the amount in controversy, and which action shall, at the request of either party to such action, be tried by the court with a jury.

.

(b)

Armed services contracts

Section 2409(c) of title 10, United States Code, is amended—

(1)

in paragraph (1), by striking If the head and all that follows through actions: and inserting the following: Not later than 180 days after submission of a complaint under subsection (b), the head of the agency concerned shall determine whether the contractor concerned has subjected the complainant to a reprisal prohibited by subsection (a) and shall either issue an order denying relief or shall take one or more of the following actions:; and

(2)

by redesignating paragraph (3) as paragraph (4) and adding after paragraph (2) the following new paragraph (3):

(3)

If the head of an agency has not issued an order within 180 days after the submission of a complaint under subsection (b) and there is no showing that such delay is due to the bad faith of the complainant, the complainant shall be deemed to have exhausted his administrative remedies with respect to the complaint, and the complainant may bring an action at law or equity for de novo review to seek compensatory damages and other relief available under this section in the appropriate district court of the United States, which shall have jurisdiction over such an action without regard to the amount in controversy, and which action shall, at the request of either party to such action, be tried by the court with a jury.

.

1272.

Prohibited personnel practices affecting the Transportation Security Administration

(a)

In General

Chapter 23 of title 5, United States Code, is amended—

(1)

by redesignating sections 2304 and 2305 as sections 2305 and 2306, respectively; and

(2)

by inserting after section 2303a (as inserted by section 1270) the following:

2304.

Prohibited personnel practices affecting the Transportation Security Administration

(a)

In General

Notwithstanding any other provision of law, any individual holding or applying for a position within the Transportation Security Administration shall be covered by—

(1)

the provisions of section 2302(b)(1), (8), and (9);

(2)

any provision of law implementing section 2302(b)(1), (8), or (9) by providing any right or remedy available to an employee or applicant for employment in the civil service; and

(3)

any rule or regulation prescribed under any provision of law referred to in paragraph (1) or (2).

(b)

Rule of Construction

Nothing in this section shall be construed to affect any rights, apart from those described in subsection (a), to which an individual described in subsection (a) might otherwise be entitled under law.

(c)

Effective Date

This section shall take effect as of the date of the enactment of this section.

.

(b)

Clerical Amendment

The table of sections for chapter 23 of title 5, United States Code, is amended by striking the items relating to sections 2304 and 2305, respectively, and by inserting the following:

2304. Prohibited personnel practices affecting the Transportation Security Administration.

2305. Responsibility of the Government Accountability Office.

2306. Coordination with certain other provisions of law.

.

1273.

Clarification of whistleblower rights relating to scientific and other research

(a)

In general

Section 2302 of title 5, United States Code, is amended by adding at the end the following:

(f)

As used in section 2302(b)(8), the term abuse of authority includes—

(1)

any action that compromises the validity or accuracy of federally funded research or analysis;

(2)

the dissemination of false or misleading scientific, medical, or technical information;

(3)

any action that restricts or prevents an employee or any person performing federally funded research or analysis from publishing in peer-reviewed journals or other scientific publications or making oral presentations at professional society meetings or other meetings of their peers; and

(4)

any action that discriminates for or against any employee or applicant for employment on the basis of religion, as defined by section 1273(b) of the Whistleblower Protection Enhancement Act of 2009.

.

(b)

Definition

As used in section 2302(f)(3) of title 5, United States Code (as amended by subsection (a)), the term on the basis of religion means—

(1)

prohibiting personal religious expression by Federal employees to the greatest extent possible, consistent with requirements of law and interests in workplace efficiency;

(2)

requiring religious participation or non-participation as a condition of employment, or permitting religious harassment;

(3)

failing to accommodate employees' exercise of their religion;

(4)

failing to treat all employees with the same respect and consideration, regardless of their religion (or lack thereof);

(5)

restricting personal religious expression by employees in the Federal workplace except where the employee's interest in the expression is outweighed by the government's interest in the efficient provision of public services or where the expression intrudes upon the legitimate rights of other employees or creates the appearance, to a reasonable observer, of an official endorsement of religion;

(6)

regulating employees' personal religious expression on the basis of its content or viewpoint, or suppressing employees' private religious speech in the workplace while leaving unregulated other private employee speech that has a comparable effect on the efficiency of the workplace, including ideological speech on politics and other topics;

(7)

failing to exercise their authority in an evenhanded and restrained manner, and with regard for the fact that Americans are used to expressions of disagreement on controversial subjects, including religious ones;

(8)

failing to permit an employee to engage in private religious expression in personal work areas not regularly open to the public to the same extent that they may engage in nonreligious private expression, subject to reasonable content- and viewpoint-neutral standards and restrictions;

(9)

failing to permit an employee to engage in religious expression with fellow employees, to the same extent that they may engage in comparable nonreligious private expression, subject to reasonable and content-neutral standards and restrictions;

(10)

failing to permit an employee to engage in religious expression directed at fellow employees, and may even attempt to persuade fellow employees of the correctness of their religious views, to the same extent as those employees may engage in comparable speech not involving religion;

(11)

inhibiting an employee from urging a colleague to participate or not to participate in religious activities to the same extent that, consistent with concerns of workplace efficiency, they may urge their colleagues to engage in or refrain from other personal endeavors, except that the employee must refrain from such expression when a fellow employee asks that it stop or otherwise demonstrates that it is unwelcome;

(12)

failing to prohibit expression that is part of a larger pattern of verbal attacks on fellow employees (or a specific employee) not sharing the faith of the speaker;

(13)

preventing an employee from—

(A)

wearing personal religious jewelry absent special circumstances (such as safety concerns) that might require a ban on all similar nonreligious jewelry; or

(B)

displaying religious art and literature in their personal work areas to the same extent that they may display other art and literature, so long as the viewing public would reasonably understand the religious expression to be that of the employee acting in her personal capacity, and not that of the government itself;

(14)

prohibiting an employee from using their private time to discuss religion with willing coworkers in public spaces to the same extent as they may discuss other subjects, so long as the public would reasonably understand the religious expression to be that of the employees acting in their personal capacities;

(15)

discriminating against an employee on the basis of their religion, religious beliefs, or views concerning their religion by promoting, refusing to promote, hiring, refusing to hire, or otherwise favoring or disfavoring, an employee or potential employee because of his or her religion, religious beliefs, or views concerning religion, or by explicitly or implicitly, insisting that the employee participate in religious activities as a condition of continued employment, promotion, salary increases, preferred job assignments, or any other incidents of employment or insisting that an employee refrain from participating in religious activities outside the workplace except pursuant to otherwise legal, neutral restrictions that apply to employees' off-duty conduct and expression in general (such as restrictions on political activities prohibited by the Hatch Act);

(16)

prohibiting a supervisor's religious expression where it is not coercive and is understood to be his or her personal view, in the same way and to the same extent as other constitutionally valued speech;

(17)

permitting a hostile environment, or religious harassment, in the form of religiously discriminatory intimidation, or pervasive or severe religious ridicule or insult, whether by supervisors or fellow workers, as determined by its frequency or repetitiveness, and severity;

(18)

failing to accommodate an employee’s exercise of their religion unless such accommodation would impose an undue hardship on the conduct of the agency's operations, based on real rather than speculative or hypothetical cost and without disfavoring other, nonreligious accommodations; and

(19)

in those cases where an agency's work rule imposes a substantial burden on a particular employee's exercise of religion, failing to grant the employee an exemption from that rule, absent a compelling interest in denying the exemption and where there is no less restrictive means of furthering that interest.

(c)

Rule of construction

Nothing in this section shall be construed to create any new right, benefit, or trust responsibility, substantive or procedural, enforceable at law or equity by a party against the United States, its agencies, its officers, or any person.

1274.

Effective date

This part shall take effect 30 days after the date of the enactment of this Act, except as provided in the amendment made by section 1272(a)(2).

II

Agriculture, Nutrition, and Rural Development

Department of Agriculture

Agriculture Buildings and Facilities and Rental Payments

For an additional amount for Agriculture Buildings and Facilities and Rental Payments, $44,000,000, for necessary construction, repair, and improvement activities: Provided, That section 1106 of this Act shall not apply to this appropriation.

Agricultural Research Service

Buildings and Facilities

For an additional amount for Buildings and Facilities, $209,000,000, for work on deferred maintenance at Agricultural Research Service facilities: Provided, That priority in the use of such funds shall be given to critical deferred maintenance, to projects that can be completed, and to activities that can commence promptly following enactment of this Act.

Farm Service Agency

Salaries and Expenses

For an additional amount for Salaries and Expenses, $245,000,000, for the purpose of maintaining and modernizing the information technology system: Provided, That section 1106 of this Act shall not apply to this appropriation.

Natural Resources Conservation Service

Watershed and Flood Prevention Operations

For an additional amount for Watershed and Flood Prevention Operations, $350,000,000, of which $175,000,000 is for necessary expenses to purchase and restore floodplain easements as authorized by section 403 of the Agricultural Credit Act of 1978 (16 U.S.C. 2203) (except that no more than $50,000,000 of the amount provided for the purchase of floodplain easements may be obligated for projects in any one State): Provided, That section 1106 of this Act shall not apply to this appropriation: Provided further, That priority in the use of such funds shall be given to projects that can be fully funded and completed with the funds appropriated in this Act, and to activities that can commence promptly following enactment of this Act.

Watershed Rehabilitation Program

For an additional amount for Watershed Rehabilitation Program, $50,000,000, for necessary expenses to carry out rehabilitation of structural measures: Provided, That section 1106 of this Act shall not apply to this appropriation: Provided further, That priority in the use of such funds shall be given to projects that can be fully funded and completed with the funds appropriated in this Act, and to activities that can commence promptly following enactment of this Act.

Rural Development Programs

Rural Community Advancement Program

(Including Transfers of Funds)

For an additional amount for gross obligations for the principal amount of direct and guaranteed loans as authorized by sections 306 and 310B and described in sections 381E(d)(1), 381E(d)(2), and 381E(d)(3) of the Consolidated Farm and Rural Development Act, to be available from the rural community advancement program, as follows: $5,838,000,000, of which $1,102,000,000 is for rural community facilities direct loans, of which $2,000,000,000 is for business and industry guaranteed loans, and of which $2,736,000,000 is for rural water and waste disposal direct loans.

For an additional amount for the cost of direct loans, loan guarantees, and grants, including the cost of modifying loans, as defined in section 502 of the Congressional Budget Act of 1974, as follows: $1,800,000,000, of which $63,000,000 is for rural community facilities direct loans, of which $137,000,000 is for rural community facilities grants authorized under section 306(a) of the Consolidated Farm and Rural Development Act, of which $87,000,000 is for business and industry guaranteed loans, of which $13,000,000 is for rural business enterprise grants authorized under section 310B of the Consolidated Farm and Rural Development Act, of which $400,000,000 is for rural water and waste disposal direct loans, and of which $1,100,000,000 is for rural water and waste disposal grants authorized under section 306(a): Provided, That the amounts appropriated under this heading shall be transferred to, and merged with, the appropriation for Rural Housing Service, Rural Community Facilities Program Account, the appropriation for Rural Business-Cooperative Service, Rural Business Program Account, and the appropriation for Rural Utilities Service, Rural Water and Waste Disposal Program Account: Provided further, That priority for awarding such funds shall be given to project applications that demonstrate that, if the application is approved, all project elements will be fully funded: Provided further, That priority for awarding such funds shall be given to project applications for activities that can be completed if the requested funds are provided: Provided further, That priority for awarding such funds shall be given to activities that can commence promptly following enactment of this Act.

In addition to other available funds, the Secretary of Agriculture may use not more than 3 percent of the funds made available under this account for administrative costs to carry out loans, loan guarantees, and grants funded under this account, which shall be transferred and merged with the appropriation for Rural Development, Salaries and Expenses and shall remain available until September 30, 2012: Provided, That the authority provided in this paragraph shall apply to appropriations under this heading in lieu of the provisions of section 1106 of this Act.

Funds appropriated by this Act to the Rural Community Advancement Program for rural community facilities, rural business, and rural water and waste disposal direct loans, loan guarantees and grants may be transferred among these programs: Provided, That the Committees on Appropriations of the House of Representatives and the Senate shall be notified at least 15 days in advance of any transfer.

Rural Housing Service

Rural Housing Insurance Fund Program Account

(Including Transfers of Funds)

For an additional amount of gross obligations for the principal amount of direct and guaranteed loans as authorized by title V of the Housing Act of 1949, to be available from funds in the rural housing insurance fund, as follows: $22,129,000,000 for loans to section 502 borrowers, of which $4,018,000,000 shall be for direct loans, and of which $18,111,000,000 shall be for unsubsidized guaranteed loans.

For an additional amount for the cost of direct and guaranteed loans, including the cost of modifying loans, as defined in section 502 of the Congressional Budget Act of 1974, as follows: section 502 loans, $500,000,000, of which $270,000,000 shall be for direct loans, and of which $230,000,000 shall be for unsubsidized guaranteed loans.

In addition to other available funds, the Secretary of Agriculture may use not more than 3 percent of the funds made available under this account for administrative costs to carry out loans and loan guarantees funded under this account, of which $1,750,000 will be committed to agency projects associated with maintaining the compliance, safety, and soundness of the portfolio of loans guaranteed through the section 502 guaranteed loan program: Provided, These funds shall be transferred and merged with the appropriation for Rural Development, Salaries and Expenses: Provided further, That the authority provided in this paragraph shall apply to appropriations under this heading in lieu of the provisions of section 1106 of this Act.

Funds appropriated by this Act to the Rural Housing Insurance Fund Program account for section 502 direct loans and unsubsidized guaranteed loans may be transferred between these programs: Provided, That the Committees on Appropriations of the House of Representatives and the Senate shall be notified at least 15 days in advance of any transfer.

Rural Utilities Service

Distance Learning, Telemedicine, and Broadband Program

(Including Transfers of Funds)

For an additional amount for the cost of broadband loans and loan guarantees, as authorized by the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.) and for grants, $2,825,000,000: Provided, That the cost of direct and guaranteed loans shall be as defined in section 502 of the Congressional Budget Act of 1974: Provided further, That, notwithstanding title VI of the Rural Electrification Act of 1936, this amount is available for grants, loans and loan guarantees for open access broadband infrastructure in any area of the United States: Provided further, That at least 75 percent of the area to be served by a project receiving funds from such grants, loans or loan guarantees shall be in a rural area without sufficient access to high speed broadband service to facilitate rural economic development, as determined by the Secretary of Agriculture: Provided further, That priority for awarding funds made available under this paragraph shall be given to projects that provide service to the most rural residents that do not have access to broadband service: Provided further, That priority shall be given for project applications from borrowers or former borrowers under title II of the Rural Electrification Act of 1936 and for project applications that include such borrowers or former borrowers: Provided further, That notwithstanding section 1103 of this Act, 50 percent of the grants, loans, and loan guarantees made available under this heading shall be awarded not later than September 30, 2009: Provided further, That priority for awarding such funds shall be given to project applications that demonstrate that, if the application is approved, all project elements will be fully funded: Provided further, That priority for awarding such funds shall be given to project applications for activities that can be completed if the requested funds are provided: Provided further, That priority for awarding such funds shall be given to activities that can commence promptly following enactment of this Act: Provided further, That no area of a project funded with amounts made available under this paragraph may receive funding to provide broadband service under the Broadband Deployment Grant Program: Provided further, That the Secretary shall submit a report on planned spending and actual obligations describing the use of these funds not later than 90 days after the date of enactment of this Act, and quarterly thereafter until all funds are obligated, to the Committees on Appropriations of the House of Representatives and the Senate.

In addition to other available funds, the Secretary may use not more than 3 percent of the funds made available under this account for administrative costs to carry out loans, loan guarantees, and grants funded under this account, which shall be transferred and merged with the appropriation for Rural Development, Salaries and Expenses and shall remain available until September 30, 2012: Provided, That the authority provided in this paragraph shall apply to appropriations under this heading in lieu of the provisions of section 1106 of this Act.

Food and Nutrition Service

Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)

For an additional amount for the special supplemental nutrition program as authorized by section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 1786), $100,000,000, for the purposes specified in section 17(h)(10)(B)(ii) for the Secretary of Agriculture to provide assistance to State agencies to implement new management information systems or improve existing management information systems for the program.

Emergency Food Assistance Program

For an additional amount for the emergency food assistance program as authorized by section 27(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 2036(a)) and section 204(a)(1) of the Emergency Food Assistance Act of 1983 (7 U.S.C. 7508(a)(1)), $150,000,000, of which $100,000,000 is for the purchase of commodities and of which $50,000,000 is for costs associated with the distribution of commodities.

General Provisions, This Title

2001.

Temporary Increase in Benefits under the Supplemental Nutrition Assistance Program

(a)

Maximum Benefit Increase

(1)

In general

Beginning the first month that begins not less than 25 days after the date of enactment of this Act, the value of benefits determined under section 8(a) of the Food and Nutrition Act of 2008 and consolidated block grants for Puerto Rico and American Samoa determined under section 19(a) of such Act shall be calculated using 113.6 percent of the June 2008 value of the thrifty food plan as specified under section 3(o) of such Act.

(2)

Termination

(A)

The authority provided by this subsection shall terminate after September 30, 2009.

(B)

Notwithstanding subparagraph (A), the Secretary of Agriculture may not reduce the value of the maximum allotment below the level in effect for fiscal year 2009 as a result of paragraph (1).

(b)

Requirements for the secretary

In carrying out this section, the Secretary shall—

(1)

consider the benefit increases described in subsection (a) to be a mass change;

(2)

require a simple process for States to notify households of the increase in benefits;

(3)

consider section 16(c)(3)(A) of the Food and Nutrition Act of 2008 (7 U.S.C. 2025(c)(3)(A)) to apply to any errors in the implementation of this section, without regard to the 120-day limit described in that section; and

(4)

have the authority to take such measures as necessary to ensure the efficient administration of the benefits provided in this section.

(c)

Administrative Expenses

(1)

In general

For the costs of State administrative expenses associated with carrying out this section, the Secretary shall make available $150,000,000 in each of fiscal years 2009 and 2010, to remain available through September 30, 2012, of which $4,500,000 is for necessary expenses of the Food and Nutrition Service for management and oversight of the program and for monitoring the integrity and evaluating the effects of the payments made under this section.

(2)

Availability of funds

Funds described in paragraph (1) shall be made available as grants to State agencies based on each State’s share of households that participate in the Supplemental Nutrition Assistance Program as reported to the Department of Agriculture for the 12-month period ending with June, 2008.

(d)

Treatment of Jobless Workers

Beginning with the first month that begins not less than 25 days after the date of enactment of this Act, and for each subsequent month through September 30, 2010, jobless adults who comply with work registration and employment and training requirements under section 6, section 20, or section 26 of the Food and Nutrition Act of 2008 (7 U.S.C. 2015, 2029, or 2035) shall not be disqualified from the Supplemental Nutrition Assistance Program because of the provisions of section 6(o)(2) of such Act (7 U.S.C. 2015(o)(2)). Beginning on October 1, 2010, for the purposes of section 6(o), a State agency shall disregard any period during which an individual received Supplemental Nutrition Assistance Program benefits prior to October 1, 2010.

(e)

Funding

There is appropriated to the Secretary of Agriculture such sums as are necessary to carry out this section, to remain available until expended. Section 1106 of this Act shall not apply to this appropriation.

2002.

Afterschool feeding program for at-risk children

Section 17(r) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1766(r)) is amended by striking paragraph (5).

III

Commerce, Justice, and Science

A

Commerce

Department of Commerce

Economic Development Administration

Economic Development Assistance Programs

(Including Transfer of Funds)

For an additional amount for Economic Development Assistance Programs, $250,000,000: Provided, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall not exceed 2 percent instead of the percentage specified in such section: Provided further, That the amount set aside pursuant to the previous proviso shall be transferred to and merged with the appropriation for Salaries and Expenses for purposes of program administration and oversight: Provided further, That up to $50,000,000 may be transferred to federally authorized regional economic development commissions.

Bureau of the Census

Periodic Censuses and Programs

For an additional amount for Periodic Censuses and Programs, $1,000,000,000: Provided, That section 1106 of this Act shall not apply to funds provided under this heading.

National Telecommunications and Information Administration

Salaries and Expenses

For an additional amount for Salaries and Expenses, $350,000,000, to remain available until September 30, 2011: Provided, That funds shall be available to establish the State Broadband Data and Development Grant Program, as authorized by Public Law 110–385, for the development and implementation of statewide initiatives to identify and track the availability and adoption of broadband services within each State, and to develop and maintain a nationwide broadband inventory map, as authorized by section 6001 of division B of this Act.

Wireless and Broadband Deployment Grant Programs

(including Transfer of Funds)

For necessary expenses related to the Wireless and Broadband Deployment Grant Programs established by section 6002 of division B of this Act, $2,825,000,000, of which $1,000,000,000 shall be for Wireless Deployment Grants and $1,825,000,000 shall be for Broadband Deployment Grants: Provided, That the National Telecommunications and Information Administration shall submit a report on planned spending and actual obligations describing the use of these funds not later than 120 days after the date of enactment of this Act, and an update report not later than 60 days following the initial report, to the Committees on Appropriations of the House of Representatives and the Senate, the Committee on Energy and Commerce of the House of Representatives, and the Committee on Commerce, Science, and Transportation of the Senate: Provided further, That notwithstanding section 1103 of this Act, 50 percent of the grants made available under this heading shall be awarded not later than September 30, 2009: Provided further, That up to 20 percent of the funds provided under this heading for Wireless Deployment Grants and Broadband Deployment Grants may be transferred between these programs: Provided further, That the Committees on Appropriations of the House of Representatives and the Senate shall be notified at least 15 days in advance of any transfer.

Digital-to-Analog Converter Box Program

Notwithstanding any other provision of law, and in addition to amounts otherwise provided in any other Act, for costs associated with the Digital-to-Analog Converter Box Program, $650,000,000, to be available until September 30, 2009: Provided, That these funds shall be available for coupons and related activities, including but not limited to education, consumer support and outreach, as deemed appropriate and necessary to ensure a timely conversion of analog to digital television.

National Institute of Standards and Technology

Scientific and Technical Research And Services

For an additional amount for Scientific and Technical Research and Services, $100,000,000.

Industrial Technology Services

For an additional amount for Industrial Technology Services, $100,000,000, of which $70,000,000 shall be available for the necessary expenses of the Technology Innovation Program and $30,000,000 shall be available for the necessary expenses of the Hollings Manufacturing Extension Partnership.

Construction of Research Facilities

For an additional amount for Construction of Research Facilities, as authorized by sections 13 through 15 of the Act of March 13, 1901 (15 U.S.C. 278c–278e), $300,000,000, for a competitive construction grant program for research science buildings: Provided further, That for peer-reviewed grants made under this heading, the time limitation provided in section 1103(b) of this Act shall be 120 days.

National Oceanic and Atmospheric Administration

Operations, Research, and Facilities

For an additional amount for Operations, Research, and Facilities, $400,000,000, for habitat restoration and mitigation activities.

Procurement, Acquisition and Construction

For an additional amount for Procurement, Acquisition and Construction, $600,000,000, for accelerating satellite development and acquisition, acquiring climate sensors and climate modeling capacity, and establishing climate data records: Provided further, That not less than $140,000,000 shall be available for climate data modeling.

B

Justice

Department of Justice

State and Local Law Enforcement Activities

Office of Justice Programs

State and Local Law Enforcement Assistance

For an additional amount for State and Local Law Enforcement Assistance, $3,000,000,000, to be available for the Edward Byrne Memorial Justice Assistance Grant Program as authorized by subpart 1 of part E of title I of the Omnibus Crime Control and Safe Streets Act of 1968, (except that section 1001(c), and the special rules for Puerto Rico under section 505(g), of such Act shall not apply for purposes of this Act): Provided, That section 1106 of this Act shall not apply to funds provided under this heading.

Community Oriented Policing Services

For an additional amount for Community Oriented Policing Services, $1,000,000,000, to be available for grants under section 1701 of title I of the 1968 Act (42 U.S.C. 3796dd) for the hiring and rehiring of additional career law enforcement officers under part Q of such title notwithstanding subsection (i) of such section: Provided, That for peer-reviewed grants made under this heading, the time limitation provided in section 1103(b) of this Act shall be 120 days.

General Provisions, This Subtitle

3201.

Waiver of matching requirement and salary limit under COPS program

Sections 1701(g) and 1704(c) of the Omnibus Crime Control and Safe Street Act of 1968 (42 U.S.C. 3796dd(g) and 3796dd–3(c)) shall not apply with respect to funds appropriated in this or any other Act making appropriations for fiscal year 2009 or 2010 for Community Oriented Policing Services authorized under part Q of such Act of 1968.

C

Science

National Aeronautics and Space Administration

Science

For an additional amount for Science, $400,000,000, of which not less than $250,000,000 shall be solely for accelerating the development of the tier 1 set of Earth science climate research missions recommended by the National Academies Decadal Survey.

Aeronautics

For an additional amount for Aeronautics, $150,000,000.

Cross Agency Support Programs

For an additional amount for Cross Agency Support Programs, for necessary expenses for restoration and mitigation of National Aeronautics and Space Administration owned infrastructure and facilities related to the consequences of hurricanes, floods, and other natural disasters occurring during 2008 for which the President declared a major disaster under title IV of the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1974, $50,000,000.

National Science Foundation

Research And Related Activities

For an additional amount for Research and Related Activities, $2,500,000,000: Provided, That $300,000,000 shall be available solely for the Major Research Instrumentation program and $200,000,000 shall be for activities authorized by title II of Public Law 100–570 for academic research facilities modernization: Provided, That for peer-reviewed grants made under this heading, the time limitation provided in section 1103(b) of this Act shall be 120 days.

Education and Human Resources

For an additional amount for Education and Human Resources, $100,000,000: Provided, That $60,000,000 shall be for activities authorized by section 7030 of Public Law 110–69 and $40,000,000 shall be for activities authorized by section 9 of the National Science Foundation Authorization Act of 2002 (42 U.S.C. 1862n).

Major Research Equipment and Facilities Construction

For an additional amount for Major Research Equipment and Facilities Construction, $400,000,000, which shall be available only for approved projects.

IV

Defense

Department of Defense

Facility Infrastructure Investments, Defense

For expenses, not otherwise provided for, to improve, repair and modernize Department of Defense facilities, restore and modernize Army barracks, and invest in the energy efficiency of Department of Defense facilities, $4,500,000,000, for Facilities Sustainment, Restoration and Modernization programs of the Department of Defense (including minor construction and major maintenance and repair), which shall be available as follows:

(1)

Operation and Maintenance, Army, $1,490,804,000.

(2)

Operation and Maintenance, Navy, $624,380,000.

(3)

Operation and Maintenance, Marine Corps, $128,499,000.

(4)

Operation and Maintenance, Air Force, $1,236,810,000.

(5)

Defense Health Program, $454,658,000.

(6)

Operation and Maintenance, Army Reserve, $110,899,000.

(7)

Operation and Maintenance, Navy Reserve, $62,162,000.

(8)

Operation and Maintenance, Marine Corps Reserve, $45,038,000.

(9)

Operation and Maintenance, Air Force Reserve, $14,881,000.

(10)

Operation and Maintenance, Army National Guard, $302,700,000.

(11)

Operation and Maintenance, Air National Guard, $29,169,000.

Energy Research and Development, Defense

For expenses, not otherwise provided for, for research, development, test and evaluation programs for improvements in energy generation, transmission, regulation, use, and storage, for military installations, military vehicles, and other military equipment, $350,000,000, which shall be available as follows:

(1)

Research, Development, Test and Evaluation, Army, $87,500,000.

(2)

Research, Development, Test and Evaluation, Navy, $87,500,000.

(3)

Research, Development, Test and Evaluation, Air Force, $87,500,000.

(4)

Research, Development, Test and Evaluation, Defense-Wide, $87,500,000

V

Energy and Water

Department of the Army

Corps of Engineers—Civil

Construction

For an additional amount for Construction, $2,000,000,000: Provided, That section 102 of Public Law 109–103 (33 U.S.C. 2221) shall not apply to funds provided in this paragraph: Provided further, That notwithstanding any other provision of law, funds provided in this paragraph shall not be cost shared with the Inland Waterways Trust Fund as authorized in Public Law 99–662: Provided further, That funds provided in this paragraph may only be used for programs, projects or activities previously funded: Provided further, That the Corps of Engineers is directed to prioritize funding for activities based on the ability to accelerate existing contracts or fully fund project elements and contracts for such elements in a time period of 2 years after the date of enactment of this Act giving preference to projects and activities that are labor intensive: Provided further, That funds provided in this paragraph shall be used for elements of projects, programs or activities that can be completed using funds provided herein: Provided further, That funds appropriated in this paragraph may be used by the Secretary of the Army, acting through the Chief of Engineers, to undertake work authorized to be carried out in accordance with one or more of section 14 of the Flood Control Act of 1946 (33 U.S.C. 701r), section 205 of the Flood Control Act of 1948 (33 U.S.C. 701s), section 206 of the Water Resources Development Act of 1996 (33 U.S.C. 2330), and section 1135 of the Water Resources Development Act of 1986 (33 U.S.C. 2309a), notwithstanding the program cost limitations set forth in those sections: Provided further, That the limitation concerning total project costs in section 902 of the Water Resources Development Act of 1986, as amended (33 U.S.C. 2280), shall not apply during fiscal year 2009 to any project that received funds provided in this title: Provided further, That for projects that are being completed with funds appropriated in this Act that are otherwise expired or lapsed for obligation, expired or lapsed funds appropriated in this Act may be used to pay the cost of associated supervision, inspection, overhead, engineering and design on those projects and on subsequent claims, if any: Provided further, That the Secretary of the Army shall submit a quarterly report to the Committees on Appropriations of the House of Representatives and the Senate detailing the allocation, obligation and expenditures of these funds, beginning not later than 45 days after enactment of this Act.

Mississippi River and Tributaries

For an additional amount for Mississippi River and Tributaries, $250,000,000: Provided, That funds provided in this paragraph may only be used for programs, projects, or activities previously funded: Provided further, That the Corps of Engineers is directed to prioritize funding for activities based on the ability to accelerate existing contracts or fully fund project elements and contracts for such elements in a time period of 2 years after the date of enactment of this Act giving preference to projects and activities that are labor intensive: Provided further, That funds provided in this paragraph shall be used for elements of projects, programs, or activities that can be completed using funds provided herein: Provided further, That for projects that are being completed with funds appropriated in this Act that are otherwise expired or lapsed for obligation, expired or lapsed funds appropriated in this Act may be used to pay the cost of associated supervision, inspection, overhead, engineering and design on those projects and on subsequent claims, if any: Provided further, That the Secretary of the Army shall submit a quarterly report to the Committees on Appropriations of the House of Representatives and the Senate detailing the allocation, obligation and expenditures of these funds, beginning not later than 45 days after enactment of this Act.

Operation and Maintenance

For an additional amount for Operation and Maintenance, $2,225,000,000: Provided, That the Corps of Engineers is directed to prioritize funding for activities based on the ability to accelerate existing contracts or fully fund project elements and contracts for such elements in a time period of 2 years after the date of enactment of this Act giving preference to projects and activities that are labor intensive: Provided further, That funds provided in this paragraph shall be used for elements of projects, programs, or activities that can be completed using funds provided herein: Provided further, That for projects that are being completed with funds appropriated in this Act that are otherwise expired or lapsed for obligation, expired or lapsed funds appropriated in this Act may be used to pay the cost of associated supervision, inspection, overhead, engineering and design on those projects and on subsequent claims, if any: Provided further, That the Secretary of the Army shall submit a quarterly report to the Committees on Appropriations of the House of Representatives and the Senate detailing the allocation, obligation and expenditures of these funds, beginning not later than 45 days after enactment of this Act.

Regulatory Program

For an additional amount for Regulatory Program, $25,000,000.

Department of the Interior

Bureau of Reclamation

Water and Related Resources

For an additional amount for Water and Related Resources, $500,000,000: Provided, That of the amount appropriated under this heading, not less than $126,000,000 shall be used for water reclamation and reuse projects authorized under title XVI of Public Law 102–575: Provided further, That of the amount appropriated under this heading, not less than $80,000,000 shall be used for rural water projects and these funds shall be expended primarily on water intake and treatment facilities of such projects: Provided further, That the costs of reimbursable activities, other than for maintenance and rehabilitation, carried out with funds made available under this heading shall be repaid pursuant to existing authorities and agreements: Provided further, That the costs of maintenance and rehabilitation activities carried out with funds provided in this Act shall be repaid pursuant to existing authority, except the length of repayment period shall be determined on needs-based criteria to be established and adopted by the Commissioner of the Bureau of Reclamation, but in no case shall the repayment period exceed 25 years.

Department of Energy

Energy Programs

Energy Efficiency and Renewable Energy

For an additional amount for Energy Efficiency and Renewable Energy, $18,500,000,000, which shall be used as follows:

(1)

$2,000,000,000 shall be for expenses necessary for energy efficiency and renewable energy research, development, demonstration and deployment activities, to accelerate the development of technologies, to include advanced batteries, of which not less than $800,000,000 is for biomass and $400,000,000 is for geothermal technologies.

(2)

$500,000,000 shall be for expenses necessary to implement the programs authorized under part E of title III of the Energy Policy and Conservation Act (42 U.S.C. 6341 et seq.).

(3)

$1,000,000,000 shall be for the cost of grants to institutional entities for energy sustainability and efficiency under section 399A of the Energy Policy and Conservation Act (42 U.S.C. 6371h–1).

(4)

$6,200,000,000 shall be for the Weatherization Assistance Program under part A of title IV of the Energy Conservation and Production Act (42 U.S.C. 6861 et seq.).

(5)

$3,500,000,000 shall be for Energy Efficiency and Conservation Block Grants, for implementation of programs authorized under subtitle E of title V of the Energy Independence and Security Act of 2007 (42 U.S.C. 17151 et seq.).

(6)

$3,400,000,000 shall be for the State Energy Program authorized under part D of title III of the Energy Policy and Conservation Act (42 U.S.C. 6321).

(7)

$200,000,000 shall be for expenses necessary to implement the programs authorized under section 131 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17011).

(8)

$300,000,000 shall be for expenses necessary to implement the program authorized under section 124 of the Energy Policy Act of 2005 (42 U.S.C. 15821) and the Energy Star program.

(9)

$400,000,000 shall be for expenses necessary to implement the program authorized under section 721 of the Energy Policy Act of 2005 (42 U.S.C. 16071).

(10)

$1,000,000,000 shall be for expenses necessary for the manufacturing of advanced batteries authorized under section 136(b)(1)(B) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17013(b)(1)(B)):

Provided, That notwithstanding section 3304 of title 5, United States Code, and without regard to the provisions of sections 3309 through 3318 of such title 5, the Secretary of Energy may, upon a determination that there is a severe shortage of candidates or a critical hiring need for particular positions, recruit and directly appoint highly qualified individuals into the competitive service: Provided further, That such authority shall not apply to positions in the Excepted Service or the Senior Executive Service: Provided further, That any action authorized herein shall be consistent with the merit principles of section 2301 of such title 5, and the Department shall comply with the public notice requirements of section 3327 of such title 5.

Electricity Delivery and Energy Reliability

For an additional amount for Electricity Delivery and Energy Reliability, $4,500,000,000: Provided, That funds shall be available for expenses necessary for electricity delivery and energy reliability activities to modernize the electric grid, enhance security and reliability of the energy infrastructure, energy storage research, development, demonstration and deployment, and facilitate recovery from disruptions to the energy supply, and for implementation of programs authorized under title XIII of the Energy Independence and Security Act of 2007 (42 U.S.C. 17381 et seq.): Provided further, That of such amounts, $100,000,000 shall be for worker training: Provided further, That the Secretary of Energy may use or transfer amounts provided under this heading to carry out new authority for transmission improvements, if such authority is enacted in any subsequent Act, consistent with existing fiscal management practices and procedures.

Advanced Battery Loan Guarantee Program

For the cost of guaranteed loans as authorized by section 135 of the Energy Independence and Security Act of 2007 (42 U.S.C. 17012), $1,000,000,000, to remain available until expended: Provided, That of such amount, $10,000,000 shall be used for administrative expenses in carrying out the guaranteed loan program, and shall be in lieu of the amount set aside under section 1106 of this Act: Provided further, That the cost of such loans, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974.

Institutional Loan Guarantee Program

For the cost of guaranteed loans as authorized by section 399A of the Energy Policy and Conservation Act (42 U.S.C. 6371h–1), $500,000,000: Provided, That of such amount, $10,000,000 shall be used for administrative expenses in carrying out the guaranteed loan program, and shall be in lieu of the amount set aside under section 1106 of this Act: Provided further, That the cost of such loans, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974.

Innovative Technology Loan Guarantee Program

For an additional amount for Innovative Technology Loan Guarantee Program for the cost of guaranteed loans authorized by section 1705 of the Energy Policy Act of 2005, $8,000,000,000: Provided, That of such amount, $25,000,000 shall be used for administrative expenses in carrying out the guaranteed loan program, and shall be in lieu of the amount set aside under section 1106 of this Act: Provided further, That the cost of such loans, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974.

Fossil Energy

For an additional amount for Fossil Energy, $2,400,000,000 for necessary expenses to demonstrate carbon capture and sequestration technologies as authorized under section 702 of the Energy Independence and Security Act of 2007.

Science

For an additional amount for Science, $2,000,000,000: Provided, That of such amounts, not less than $400,000,000 shall be used for the Advanced Research Projects Agency—Energy authorized under section 5012 of the America COMPETES Act (42 U.S.C. 16538): Provided further, That of such amounts, not less than $100,000,000 shall be used for advanced scientific computing.

Environmental and Other Defense Activities

Defense Environmental Cleanup

For an additional amount for Defense Environmental Cleanup, $500,000,000: Provided, That such amounts shall be used for elements of projects, programs, or activities that can be completed using funds provided herein.

General Provisions, This Title

5001.

Western Area Power Administration Borrowing Authority

The Hoover Power Plant Act of 1984 (Public Law 98–381) is amended by adding at the end the following:

III

Borrowing Authority

301.

Western Area Power Administration Borrowing Authority

(a)

Definitions

In this section—

(1)

Administrator

The term ‘Administrator’ means the Administrator of the Western Area Power Administration.

(2)

Secretary

The term ‘Secretary’ means the Secretary of the Treasury.

(b)

Authority

(1)

In general

Notwithstanding any other provision of law, subject to paragraphs (2) through (5)—

(A)

the Western Area Power Administration may borrow funds from the Treasury; and

(B)

the Secretary shall, without further appropriation and without fiscal year limitation, loan to the Western Area Power Administration, on such terms as may be fixed by the Administrator and the Secretary, such sums (not to exceed, in the aggregate (including deferred interest), $3,250,000,000 in outstanding repayable balances at any 1 time) as, in the judgment of the Administrator, are from time to time required for the purpose of—

(i)

constructing, financing, facilitating, or studying construction of new or upgraded electric power transmission lines and related facilities with at least 1 terminus within the area served by the Western Area Power Administration; and

(ii)

delivering or facilitating the delivery of power generated by renewable energy resources constructed or reasonably expected to be constructed after the date of enactment of this section.

(2)

Interest

The rate of interest to be charged in connection with any loan made pursuant to this subsection shall be fixed by the Secretary, taking into consideration market yields on outstanding marketable obligations of the United States of comparable maturities as of the date of the loan.

(3)

Refinancing

The Western Area Power Administration may refinance loans taken pursuant to this section within the Treasury.

(4)

Participation

The Administrator may permit other entities to participate in projects financed under this section.

(5)

Congressional review of disbursement

Effective upon the date of enactment of this section, the Administrator shall have the authority to have utilized $1,750,000,000 at any one time. If the Administrator seeks to borrow funds above $1,750,000,000, the funds will be disbursed unless there is enacted, within 90 calendar days of the first such request, a joint resolution that rescinds the remainder of the balance of the borrowing authority provided in this section.

(c)

Transmission line and related facility projects

(1)

In general

For repayment purposes, each transmission line and related facility project in which the Western Area Power Administration participates pursuant to this section shall be treated as separate and distinct from—

(A)

each other such project; and

(B)

all other Western Area Power Administration power and transmission facilities.

(2)

Proceeds

The Western Area Power Administration shall apply the proceeds from the use of the transmission capacity from an individual project under this section to the repayment of the principal and interest of the loan from the Treasury attributable to that project, after reserving such funds as the Western Area Power Administration determines are necessary—

(A)

to pay for any ancillary services that are provided; and

(B)

to meet the costs of operating and maintaining the new project from which the revenues are derived.

(3)

Source of revenue

Revenue from the use of projects under this section shall be the only source of revenue for—

(A)

repayment of the associated loan for the project; and

(B)

payment of expenses for ancillary services and operation and maintenance.

(4)

Limitation on authority

Nothing in this section confers on the Administrator any obligation to provide ancillary services to users of transmission facilities developed under this section.

(d)

Certification

(1)

In general

For each project in which the Western Area Power Administration participates pursuant to this section, the Administrator shall certify, prior to committing funds for any such project, that—

(A)

the project is in the public interest;

(B)

the project will not adversely impact system reliability or operations, or other statutory obligations; and

(C)

it is reasonable to expect that the proceeds from the project shall be adequate to make repayment of the loan.

(2)

Forgiveness of balances

(A)

In general

If, at the end of the useful life of a project, there is a remaining balance owed to the Treasury under this section, the balance shall be forgiven.

(B)

Unconstructed projects

Funds expended to study projects that are considered pursuant to this section but that are not constructed shall be forgiven.

(C)

Notification

The Administrator shall notify the Secretary of such amounts as are to be forgiven under this paragraph.

(e)

Public Processes

(1)

Policies and practices

Prior to requesting any loans under this section, the Administrator shall use a public process to develop practices and policies that implement the authority granted by this section.

(2)

Requests for interests

In the course of selecting potential projects to be funded under this section, the Administrator shall seek requests for interest from entities interested in identifying potential projects through one or more notices published in the Federal Register.

.

5002.

Bonneville Power Administration

For the purposes of providing funds to assist in financing the construction, acquisition, and replacement of the transmission system of the Bonneville Power Administration and to implement the authority of the Administrator under the Pacific Northwest Electric Power Planning and Conservation Act (16 U.S.C. 839 et seq.), an additional $3,250,000,000 in borrowing authority is made available under the Federal Columbia River Transmission System Act (16 U.S.C. 838 et seq.), to remain outstanding at any time.

5003.

Appropriations Transfer Authority

Not to exceed 20 percent of the amounts made available in this Act to the Department of Energy for Energy Efficiency and Renewable Energy, Electricity Delivery and Energy Reliability, and Advanced Battery Loan Guarantee Program may be transferred within and between such accounts, except that no amount specified under any such heading may be increased or decreased by more than a total of 20 percent by such transfers, and notification of such transfers shall be submitted promptly to the Committees on Appropriations of the House of Representatives and the Senate.

VI

Financial Services and General Government

A

General Services

General Services Administration

Federal Buildings Fund

Limitations on Availability of Revenue

(Including Transfer of Funds)

For an additional amount to be deposited in the Federal Buildings Fund, $7,700,000,000 for real property activities with priority given to activities that can commence promptly following enactment of this Act; of which up to $1,000,000,000 shall be used for construction, repair, and alteration of border facilities and land ports of entry; of which not less than $6,000,000,000 shall be used for construction, repair, and alteration of Federal buildings for projects that will create the greatest impact on energy efficiency and conservation; of which $108,000,000 shall remain available until September 30, 2012, and shall be used for rental of space costs associated with the construction, repair, and alteration of these projects; Provided, That of the amounts provided, $160,000,000 shall remain available until September 30, 2012, and shall be for building operations in support of the activities described in this paragraph: Provided further, That the preceding proviso shall apply to this appropriation in lieu of the provisions of section 1106 of this Act: Provided further, That the Administrator of General Services is authorized to initiate design, construction, repair, alteration, leasing, and other projects through existing authorities of the Administrator: Provided further, That the Administrator shall submit a detailed plan, by project, regarding the use of funds to the Committees on Appropriations of the House of Representatives and the Senate within 30 days after enactment of this Act, and shall provide notification to the Committees within 15 days prior to any changes regarding the use of these funds: Provided further, That the Administrator shall report to the Committees on the obligation of these funds on a quarterly basis beginning on June 30, 2009: Provided further, That of the amounts provided, $4,000,000 shall be transferred to and merged with Government-Wide Policy, for the Office of Federal High-Performance Green Buildings as authorized in the Energy Independence and Security Act of 2007 (Public Law 110–140).

Energy Efficient Federal Motor Vehicle Fleet Procurement

For capital expenditures and necessary expenses of the General Services Administration’s Motor Vehicle Acquisition and Motor Vehicle Leasing programs for the acquisition of motor vehicles, including plug-in and alternative fuel vehicles, $600,000,000: Provided, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall be 1 percent instead of the percentage specified in such section: Provided further, That none of these funds may be obligated until the Administrator of General Services submits to the Committees on Appropriations of the House of Representatives and the Senate, within 90 days after enactment of this Act, a plan for expenditure of the funds that details the current inventory of the Federal fleet owned by the General Services Administration, as well as other Federal agencies, and the strategy to expend these funds to replace a portion of the Federal fleet with the goal of substantially increasing energy efficiency over the current status, including increasing fuel efficiency and reducing emissions: Provided further, That the Administrator shall report to the Committees on the obligation of these funds on a quarterly basis beginning on June 30, 2009.

B

Small Business

Small Business Administration

Business Loans Program Account

(Including Transfers of Funds)

For the cost of direct loans and loan guarantees authorized by sections 6202 through 6205 of this Act, $426,000,000: Provided, That such cost, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974. In addition, for administrative expenses to carry out the direct loan and loan guarantee programs authorized by this Act, $4,000,000, which may be transferred to and merged with the appropriations for Salaries and Expenses: Provided, That this sentence shall apply to this appropriation in lieu of the provisions of section 1106 of this Act.

General Provisions, This Subtitle

6201.

Economic stimulus lending program for small businesses

(a)

Purpose

The purpose of this section is to permit the Small Business Administration to guarantee up to 95 percent of qualifying small business loans made by eligible lenders.

(b)

Definitions

For purposes of this section:

(1)

The term Administrator means the Administrator of the Small Business Administration.

(2)

The term qualifying small business loan means any loan to a small business concern that would be eligible for a loan guarantee under section 7(a) of the Small Business Act (15 U.S.C. 636) or title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 and following).

(3)

The term small business concern has the same meaning as provided by section 3 of the Small Business Act (15 U.S.C. 632).

(c)

Application

In order to participate in the loan guarantee program under this section a lender shall submit an application to the Administrator for the guarantee of up to 95 percent of the principal amount of a qualifying small business loan. The Administrator shall approve or deny each such application within 5 business days after receipt thereof. The Administrator may not delegate to lenders the authority to approve or disapprove such applications.

(d)

Fees

The Administrator may charge fees for guarantees issued under this section. Such fees shall not exceed the fees permitted for loan guarantees under section 7(a) of the Small Business Act (15 U.S.C. 631 and following).

(e)

Interest rates

The Administrator may not guarantee under this section any loan that bears interest at a rate higher than 3 percent above the higher of either of the following as quoted in the Wall Street Journal on the first business day of the week in which such guarantee is issued:

(1)

The London interbank offered rate (LIBOR) for a 3-month period.

(2)

The Prime Rate.

(f)

Qualified borrowers

(1)

Aliens unlawfully present in the United States

A loan guarantee may not be made under this section for a loan made to a concern if an individual who is an alien unlawfully present in the United States—

(A)

has an ownership interest in that concern; or

(B)

has an ownership interest in another concern that itself has an ownership interest in that concern.

(2)

Firms in violation of immigration laws

No loan guarantee may be made under this section for a loan to any entity found, based on a determination by the Secretary of Homeland Security or the Attorney General to have engaged in a pattern or practice of hiring, recruiting or referring for a fee, for employment in the United States an alien knowing the person is an unauthorized alien.

(g)

Criminal background checks

Prior to the approval of any loan guarantee under this section, the Administrator may verify the applicant's criminal background, or lack thereof, through the best available means, including, if possible, use of the National Crime Information Center computer system at the Federal Bureau of Investigation.

(h)

Application of other law

Nothing in this section shall be construed to exempt any activity of the Administrator under this section from the Federal Credit Reform Act of 1990 (title V of the Congressional Budget and Impoundment Control Act of 1974; 2 U.S.C. 661 and following).

(i)

Sunset

Loan guarantees may not be issued under this section after the date 90 days after the date of establishment (as determined by the Administrator) of the economic recovery program under section 6204.

(j)

Small Business Act provisions

The provisions of the Small Business Act applicable to loan guarantees under section 7 of that Act shall apply to loan guarantees under this section except as otherwise provided in this section.

(k)

Authorization

There are authorized to be appropriated such sums as may be necessary to carry out this section.

6202.

Establishment of SBA secondary market lending authority

(a)

Purpose

The purpose of this section is to provide the Small Business Administration with the authority to establish a Secondary Market Lending Authority within the SBA to make loans to the systemically important SBA secondary market broker-dealers who operate the SBA secondary market.

(b)

Definitions

For purposes of this section:

(1)

The term Administrator means the Administrator of the SBA.

(2)

The term SBA means the Small Business Administration.

(3)

The terms Secondary Market Lending Authority and Authority mean the office established under subsection (c).

(4)

The term SBA secondary market means the market for the purchase and sale of loans originated, underwritten, and closed under the Small Business Act.

(5)

The term Systemically Important Secondary Market Broker-Dealers mean those entities designated under subsection (c)(1) as vital to the continued operation of the SBA secondary market by reason of their purchase and sale of the government guaranteed portion of loans, or pools of loans, originated, underwritten, and closed under the Small Business Act.

(c)

Responsibilities, Authorities, Organization, and Limitations

(1)

Designation of systemically important SBA secondary market broker-dealers

The Administrator shall establish a process to designate, in consultation with the Board of Governors of the Federal Reserve and the Secretary of the Treasury, Systemically Important Secondary Market Broker-Dealers.

(2)

Establishment of SBA Secondary Market Lending Authority

(A)

Organization

(i)

The Administrator shall establish within the SBA an office to provide loans to Systemically Important Secondary Market Broker-dealers to be used for the purpose of financing the inventory of the government guaranteed portion of loans, originated, underwritten, and closed under the Small Business Act or pools of such loans.

(ii)

The Administrator shall appoint a Director of the Authority who shall report to the Administrator.

(iii)

The Administrator is authorized to hire such personnel as are necessary to operate the Authority.

(iv)

The Administrator may contract such Authority operations as he determines necessary to qualified third-party companies or individuals.

(v)

The Administrator is authorized to contract with private sector fiduciary and custodial agents as necessary to operate the Authority.

(B)

Loans

(i)

The Administrator shall establish by rule a process under which Systemically Important SBA Secondary Market Broker-Dealers designated under paragraph (1) may apply to the Administrator for loans under this section.

(ii)

The rule under clause (i) shall provide a process for the Administrator to consider and make decisions regarding whether or not to extend a loan applied for under this section. Such rule shall include provisions to assure each of the following:

(I)

That loans made under this section are for the sole purpose of financing the inventory of the government guaranteed portion of loans, originated, underwritten, and closed under the Small Business Act or pools of such loans.

(II)

That loans made under this section are fully collateralized to the satisfaction of the Administrator.

(III)

That there is no limit to the frequency in which a borrower may borrow under this section unless the Administrator determines that doing so would create an undue risk of loss to the agency or the United States.

(IV)

That there is no limit on the size of a loan, subject to the discretion of the Administrator.

(iii)

Interest on loans under this section shall not exceed the Federal Funds target rate as established by the Federal Reserve Board of Governors plus 25 basis points.

(iv)

The rule under this section shall provide for such loan documents, legal covenants, collateral requirements and other required documentation as necessary to protect the interests of the agency, the United States, and the taxpayer.

(v)

The Administrator shall establish custodial accounts to safeguard any collateral pledged to the SBA in connection with a loan under this section.

(vi)

The Administrator shall establish a process to disburse and receive funds to and from borrowers under this section.

(C)

Limitations on use of loan proceeds by systemically important secondary market broker-dealers

The Administrator shall ensure that borrowers under this section are using funds provided under this section only for the purpose specified in subparagraph (B)(ii)(I). If the Administrator finds that such funds were used for any other purpose, the Administrator shall—

(i)

require immediate repayment of outstanding loans;

(ii)

prohibit the borrower, its affiliates, or any future corporate manifestation of the borrower from using the Authority; and

(iii)

take any other actions the Administrator, in consultation with the Attorney General of the United States, deems appropriate.

(d)

Report to congress

The Administrator shall submit a report to Congress not later than the third business day of each month containing a statement of each of the following:

(1)

The aggregate loan amounts extended during the preceding month under this section.

(2)

The aggregate loan amounts repaid under this section during the proceeding month.

(3)

The aggregate loan amount outstanding under this section.

(4)

The aggregate value of assets held as collateral under this section.

(5)

The amount of any defaults or delinquencies on loans made under this section.

(6)

The identity of any borrower found by the Administrator to misuse funds made available under this section.

(7)

Any other information the Administrator deems necessary to fully inform Congress of undue risk of financial loss to the United States in connection with loans made under this section.

(e)

Duration

The authority of this section shall remain in effect for a period of 2 years after the date of enactment of this section.

(f)

Funding

Such sums as necessary are authorized to be appropriated to carry out the provisions of this section.

(g)

Budget treatment

Nothing in this section shall be construed to exempt any activity of the Administrator under this section from the Federal Credit Reform Act of 1990 (title V of the Congressional Budget and Impoundment Control Act of 1974; 2 U.S.C. 661 and following).

(h)

Emergency rulemaking authority

The Administrator shall promulgate regulations under this section within 15 days after the date of enactment of enactment of this section. In promulgating these regulations, the Administrator the notice requirements of section 553(b) of title 5 of the United States Code shall not apply.

6203.

Establishment of SBA Secondary Market Guarantee Authority

(a)

Purpose

The purpose of this section is to provide the Administrator with the authority to establish the SBA Secondary Market Guarantee Authority within the SBA to provide a Federal guarantee for pools of first lien 504 loans that are to be sold to third-party investors.

(b)

Definitions

For purposes of this section:

(1)

The term Administrator means the Administrator of the Small Business Administration.

(2)

The term first lien position 504 loan means the first mortgage position, non-federally guaranteed loans made by private sector lenders made under title V of the Small Business Investment Act.

(c)

Establishment of Authority

(1)

Organization

(A)

The Administrator shall establish a Secondary Market Guarantee Authority within the Small Business Administration.

(B)

The Administrator shall appoint a Director of the Authority who shall report to the Administrator.

(C)

The Administrator is authorized to hire such personnel as are necessary to operate the Authority and may contract such operations of the Authority as necessary to qualified third-party companies or individuals.

(D)

The Administrator is authorized to contract with private sector fiduciary and custodial agents as necessary to operate the Authority.

(2)

Guarantee process

(A)

The Administrator shall establish, by rule, a process in which private sector entities may apply to the Administration for a Federal guarantee on pools of first lien position 504 loans that are to be sold to third-party investors.

(B)

The Administrator shall appoint a Director of the Authority who shall report to the Administrator.

(C)

The Administrator is authorized to hire such personnel as are necessary to operate the Authority and may contract such operations of the Authority as necessary to qualified third-party companies or individuals.

(D)

The Administrator is authorized to contract with private sector fiduciary and custodial agents as necessary to operate the Authority.

(3)

Responsibilities

(A)

The Administrator shall establish, by rule, a process in which private sector entities may apply to the SBA for a Federal guarantee on pools of first lien position 504 loans that are to be sold to third-party investors.

(B)

The rule under this section shall provide for a process for the Administrator to consider and make decisions regarding whether to extend a Federal guarantee referred to in clause (i). Such rule shall also provide that:

(i)

The seller of the pools purchasing a guarantee under this section retains not less than 5 percent of the dollar amount of the pools to be sold to third-party investors.

(ii)

The seller of such pools shall absorb any and all losses resulting from a shortage or excess of monthly cash flows.

(iii)

The Administrator shall receive a monthly fee of not more than 50 basis points on the outstanding balance of the dollar amount of the pools that are guaranteed.

(iv)

The Administrator may guarantee not more than $3,000,000,0000 of pools under this authority.

(C)

The Administrator shall establish documents, legal covenants, and other required documentation to protect the interests of the United States.

(D)

The Administrator shall establish a process to receive and disburse funds to entities under the authority established in this section.

(d)

Limitations

(1)

The Administrator shall ensure that entities purchasing a guarantee under this section are using such guarantee for the purpose of selling 504 first lien position pools to third-party investors.

(2)

If the Administrator finds that any such guarantee was used for a purpose other than that specified in paragraph (1), the Administrator shall—

(A)

terminate such guarantee immediately,

(B)

prohibit the purchaser of the guarantee or its affiliates (within the meaning of the regulations under 13 CFR 121.103) from using the authority of this section in the future; and

(C)

take any other actions the Administrator, in consultation with the Attorney General of the United States deems appropriate.

(e)

Oversight

The Administrator shall submit a report to Congress not later than the third business day of each month setting forth each of the following:

(1)

The aggregate amount of guarantees extended under this section during the proceeding month.

(2)

The aggregate amount of guarantees outstanding.

(3)

Defaults and payments on defaults made under this section.

(4)

The identity of each purchaser of a guarantee found by the Administrator to have misused guarantees under this section.

(5)

Any other information the Administrator deems necessary to fully inform Congress of undue risk to the United States associated with the issuance of guarantees under this section.

(f)

Duration of program

The authority of this section shall terminate on the date 2 years after the date of enactment of this section.

(g)

Funding

Such sums as necessary are authorized to be appropriated to carry out the provisions of this section.

(h)

Budget treatment

Nothing in this section shall be construed to exempt any activity of the Administrator under this section from the Federal Credit Reform Act of 1990 (title V of the Congressional Budget and Impoundment Control Act of 1974; 2 U.S.C. 661 and following).

(i)

Emergency rulemaking authority

The Administrator shall issue regulations under this section within 15 days after the date of enactment of this section. The notice requirements of section 553(b) of Title 5, United States Code shall not apply to the promulgation of such regulations.

6204.

Economic recovery program

(a)

Purpose

The purpose of this section is to establish a new lending and refinancing authority within the Small Business Administration.

(b)

Definitions

For purposes of this section:

(1)

The term Administrator means the Administrator of the Small Business Administration.

(2)

The term small business concern has the same meaning as provided by section 3 of the Small Business Act (15 U.S.C. 632).

(c)

Refinancing authority

(1)

In general

Upon application from a lender (and with consent of the borrower), the Administrator may refinance existing non-Small Business Administration or Small Business Administration loans (including loans under sections 7(a) and 504 of the Small Business Act) made to small business concerns.

(2)

Eligible loans

In order to be eligible for refinancing under this section—

(A)

the amount of the loan refinanced may not exceed $10,000,000 and a first lien must be conveyed to the Administrator;

(B)

the lender shall offer to accept from the Administrator as full repayment of the loan an amount equal to less than 100 percent but more than 85 percent of the remaining balance of the principal of the loan; and

(C)

the loan to be refinanced was made before the date of enactment of this Act and for a purpose that would have been eligible for a loan under any Small Business Administration lending program.

(3)

Terms

The term of the refinancing by the Administrator under this section shall not be less than remaining term on the loan that is refinanced but shall not exceed a term of 20 years. The rate of interest on the loan refinanced under this section shall be fixed by the Administrator at a level that the Administrator determines will result in manageable monthly payments for the borrower.

(4)

Limit

The Administrator may not refinance amounts under this section that are greater than the amount the lender agrees to accept from the Administrator as full repayment of the loan as provided in paragraph (2)(B).

(d)

Underwriting and other loan services

(1)

In general

The Administrator is authorized to engage in underwriting, loan closing, funding, and servicing of loans made to small business concerns and to guarantee loans made by other entities to small business concerns.

(2)

Application process

The Administrator shall by rule establish a process in which small business concerns may submit applications to the Administrator for the purposes of securing a loan under this subsection. The Administrator shall, at a minimum, collect all information necessary to determine the creditworthiness and repayment ability of the borrower.

(3)

Participation of lenders

(A)

The Administrator shall by rule establish a process in which the Administrator makes available loan applications and all accompanying information to lenders for the purpose of such lenders originating, underwriting, closing, and servicing such loans.

(B)

Lenders are eligible to receive loan applications and accompanying information under this paragraph if they participate in the programs established in section 7(a) of the Small Business Act (15 U.S.C. 636) or title V of the Small Business Investment Act (15 U.S.C. 695).

(C)

The Administrator shall first make available such loan applications and accompanying information to lenders within 100 miles of a loan applicant’s principal office.

(D)

If a lender described in subparagraph (C) does not agree to originate, underwrite, close, and service such loans within 5 business days of receiving the loan applications, the Administrator shall subsequently make available such loan applications and accompanying information to lenders in the Preferred Lenders Program under section 7(a)(2)(C)(ii) of the Small Business Act (15 U.S.C. 636).

(E)

If a lender described in subparagraph (C) or (D) does not agree to originate, underwrite, close, and service such loans within 10 business days of receiving the loan applications, the Administrator may originate, underwrite, close, and service such loans as described in paragraph (1) of this subsection.

(4)

Asset sales

The Administrator shall offer to sell loans made or refinanced by the Administrator under this section. Such sales shall be made through semi-annual public solicitation (in the Federal Register and in other media) of offers to purchase. The Administrator may contract with vendors for due diligence, asset valuation, and other services related to such sales. The Administrator may not sell any loan under this section for less than 90 percent of the net present value of the loan, as determined and certified by a qualified third-party.

(5)

Loans not sold

The Administrator shall maintain and service loans made by the Administrator under this section that are not sold through the asset sales under this section.

(e)

Duration

The authority of this section shall terminate on the date two years after the date on which the program under this section becomes operational (as determined by the Administrator).

(f)

Application of other law

Nothing in this section shall be construed to exempt any activity of the Administrator under this section from the Federal Credit Reform Act of 1990 (title V of the Congressional Budget and Impoundment Control Act of 1974; 2 U.S.C. 661 and following).

(g)

Qualified loans

(1)

Aliens unlawfully present in the United States

A loan to any concern shall not be subject to this section if an individual who is an alien unlawfully present in the United States—

(A)

has an ownership interest in that concern; or

(B)

has an ownership interest in another concern that itself has an ownership interest in that concern.

(2)

Firms in violation of immigration laws

No loan shall be subject to this section if the borrower is an entity found, based on a determination by the Secretary of Homeland Security or the Attorney General to have engaged in a pattern or practice of hiring, recruiting or referring for a fee, for employment in the United States an alien knowing the person is an unauthorized alien.

(h)

Reports

The Administrator shall submit a report to Congress semi-annually setting forth the aggregate amount of loans and geographic dispersion of such loans made, underwritten, closed, funded, serviced, sold, guaranteed, or held by the Administrator under the authority of this section. Such report shall also set forth information concerning loan defaults, prepayments, and recoveries related to loans ,made under the authority of this section.

(i)

Authorization

There are authorized to be appropriated such sums as may be necessary to carry out this section.

6205.

Stimulus for community development lending

(a)

Refinancing under the local development business loan program

Section 502 of the Small Business Investment Act of 1958 (15 U.S.C. 696) is amended by adding at the end the following:

(7)

Permissible debt refinancing

(A)

In general

Any financing approved under this title may include a limited amount of debt refinancing.

(B)

Expansions

If the project involves expansion of a small business concern which has existing indebtedness collateralized by fixed assets, any amount of existing indebtedness that does not exceed ½ of the project cost of the expansion may be refinanced and added to the expansion cost, if—

(i)

the proceeds of the indebtedness were used to acquire land, including a building situated thereon, to construct a building thereon, or to purchase equipment;

(ii)

the borrower has been current on all payments due on the existing debt for not less than 1 year preceding the date of refinancing; and

(iii)

the financing under section 504 will provide better terms or rate of interest than exists on the debt at the time of refinancing.

.

(b)

Job creation goals

Section 501(e)(1) and section 501(e)(2) of the Small Business Investment Act (15 U.S.C. 695) are each amended by striking $50,000 and inserting $65,000 .

6206.

Increasing Small Business Investment

(a)

Simplified maximum leverage limits

Section 303(b) of the Small Business Investment Act of 1958 (15 U.S.C. 683(b)) is amended—

(1)

by striking so much of paragraph (2) as precedes subparagraphs (C) and (D) and inserting the following:

(2)

Maximum leverage

(A)

In general

The maximum amount of outstanding leverage made available to any one company licensed under section 301(c) of this Act may not exceed the lesser of—

(i)

300 percent of such company’s private capital; or

(ii)

$150,000,000.

(B)

Multiple licenses under common control

The maximum amount of outstanding leverage made available to two or more companies licensed under section 301(c) of this Act that are commonly controlled (as determined by the Administrator) and not under capital impairment may not exceed $225,000,000.

; and

(2)

by striking paragraph (4).

(b)

Simplified aggregate investment limitations

Section 306(a) of the Small Business Investment Act of 1958 (15 U.S.C. 686(a)) is amended to read as follows:

(a)

Percentage limitation on private capital

If any small business investment company has obtained financing from the Administrator and such financing remains outstanding, the aggregate amount of securities acquired and for which commitments may be issued by such company under the provisions of this title for any single enterprise shall not, without the approval of the Administrator, exceed 10 percent of the sum of—

(1)

the private capital of such company; and

(2)

the total amount of leverage projected by the company in the company’s business plan that was approved by the Administrator at the time of the grant of the company’s license.

.

6207.

GAO report

(a)

Report

Not later than 30 days after the enactment of this Act, the Comptroller General of the United States shall report to the Congress on the actions of the Administrator in implementing the authority established in sections 6201 through 6206 of this Act.

(b)

Included item

The report under this section shall include a summary of the activity of the Administrator under this section and an analysis of whether he is accomplishing the purpose of increasing liquidity in the secondary market for Small Business Administration loans.

VII

Homeland Security

Department of Homeland Security

U.S. Customs and Border Protection

Salaries and Expenses

For an additional amount for Salaries and Expenses, $100,000,000, for non-intrusive detection technology to be deployed at sea ports of entry.

Construction

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

Transportation Security Administration

Aviation Security

For an additional amount for Aviation Security, $500,000,000, for the purchase and installation of explosive detection systems and emerging checkpoint technologies: Provided, That the Assistant Secretary of Homeland Security (Transportation Security Administration) shall prioritize the award of these funds to accelerate the installations at locations with completed design plans and to expeditiously award new letters of intent.

Coast Guard

Alteration of Bridges

For an additional amount for Alteration of Bridges, $150,000,000, for alteration or removal of obstructive bridges, as authorized by section 6 of the Truman-Hobbs Act (33 U.S.C. 516): Provided, That the Coast Guard shall award these funds to those bridges that are ready to proceed to construction.

Federal Emergency Management Agency

Emergency Food and Shelter

For an additional amount for Emergency Food and Shelter, $200,000,000, to carry out the emergency food and shelter program pursuant to title III of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11331 et seq.): Provided, That for the purposes of this appropriation, the redistribution required by section 1104(b) shall be carried out by the Federal Emergency Management Agency and the National Board, who may reallocate and obligate any funds that are unclaimed or returned to the program: Provided further, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall be 3.5 percent instead of the percentage specified in such section.

General Provisions, This Title

7001.

Extension of programs

Section 401(b) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note) is amended by striking 11-year period and inserting 16-year period.

7002.

Protection of Social Security Administration programs

(a)

Funding under agreement

Effective for fiscal years beginning on or after October 1, 2008, the Commissioner of Social Security and the Secretary of Homeland Security shall enter into and maintain an agreement which shall—

(1)

provide funds to the Commissioner for the full costs of the responsibilities of the Commissioner under section 404 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note), including (but not limited to)—

(A)

acquiring, installing, and maintaining technological equipment and systems necessary for the fulfillment of the responsibilities of the Commissioner under such section 404, but only that portion of such costs that are attributable exclusively to such responsibilities; and

(B)

responding to individuals who contest a tentative nonconfirmation provided by the basic pilot confirmation system established under such section;

(2)

provide such funds quarterly in advance of the applicable quarter based on estimating methodology agreed to by the Commissioner and the Secretary (except in such instances where the delayed enactment of an annual appropriation may preclude such quarterly payments); and

(3)

require an annual accounting and reconciliation of the actual costs incurred and the funds provided under the agreement, which shall be reviewed by the Office of Inspector General of the Social Security Administration and the Department of Homeland Security.

(b)

Continuation of employment verification in absence of timely agreement

In any case in which the agreement required under subsection (a) for any fiscal year beginning on or after October 1, 2008, has not been reached as of October 1 of such fiscal year, the latest agreement between the Commissioner and the Secretary of Homeland Security providing for funding to cover the costs of the responsibilities of the Commissioner under section 404 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note) shall be deemed in effect on an interim basis for such fiscal year until such time as an agreement required under subsection (a) is subsequently reached, except that the terms of such interim agreement shall be modified by the Director of the Office of Management and Budget to adjust for inflation and any increase or decrease in the volume of requests under the basic pilot confirmation system. In any case in which an interim agreement applies for any fiscal year under this subsection, the Commissioner and the Secretary shall, not later than October 1 of such fiscal year, notify the Committee on Ways and Means, the Committee on the Judiciary, and the Committee on Appropriations of the House of Representatives and the Committee on Finance, the Committee on the Judiciary, and the Committee on Appropriations of the Senate of the failure to reach the agreement required under subsection (a) for such fiscal year. Until such time as the agreement required under subsection (a) has been reached for such fiscal year, the Commissioner and the Secretary shall, not later than the end of each 90-day period after October 1 of such fiscal year, notify such Committees of the status of negotiations between the Commissioner and the Secretary in order to reach such an agreement.

7003.

GAO study of basic pilot confirmation system

(a)

In general

As soon as practicable after the date of the enactment of this Act, the Comptroller General of the United States shall conduct a study regarding erroneous tentative nonconfirmations under the basic pilot confirmation system established under section 404(a) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note).

(b)

Matters To be studied

In the study required under subsection (a), the Comptroller General shall determine and analyze—

(1)

the causes of erroneous tentative nonconfirmations under the basic pilot confirmation system;

(2)

the processes by which such erroneous tentative nonconfirmations are remedied; and

(3)

the effect of such erroneous tentative nonconfirmations on individuals, employers, and Federal agencies.

(c)

Report

Not later than 2 years after the date of the enactment of this Act, the Comptroller General shall submit the results of the study required under subsection (a) to the Committee on Ways and Means and the Committee on the Judiciary of the House of Representatives and the Committee on Finance and the Committee on the Judiciary of the Senate.

7004.

GAO study of effects of basic pilot program on small entities

(a)

In general

Not later than 2 years after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the Committees on the Judiciary of the United States House of Representatives and the Senate a report containing the Comptroller General's analysis of the effects of the basic pilot program described in section 403(a) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note) on small entities (as defined in section 601 of title 5, United States Code). The report shall detail—

(1)

the costs of compliance with such program on small entities;

(2)

a description and an estimate of the number of small entities enrolled and participating in such program or an explanation of why no such estimate is available;

(3)

the projected reporting, recordkeeping and other compliance requirements of such program on small entities;

(4)

factors that impact small entities' enrollment and participation in such program, including access to appropriate technology, geography, entity size, and class of entity; and

(5)

the steps, if any, the Secretary of Homeland Security has taken to minimize the economic impact of participating in such program on small entities.

(b)

Direct and indirect effects

The report shall cover, and treat separately, direct effects (such as wages, time, and fees spent on compliance) and indirect effects (such as the effect on cash flow, sales, and competitiveness).

(c)

Specific contents

The report shall provide specific and separate details with respect to—

(1)

small businesses (as defined in section 601 of title 5, United States Code) with fewer than 50 employees; and

(2)

small entities operating in States that have mandated use of the basic pilot program.

7005.

Waiver of matching requirement under SAFER program

Subparagraph (E) of section 34(a)(1) of the Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 2229a(a)(1)(E)) shall not apply with respect to funds appropriated in this or any other Act making appropriations for fiscal year 2009 or 2010 for grants under such section 34.

7006.

Procurement for Department of Homeland Security

(a)

Requirement

Except as provided in subsections (c) through (e), funds appropriated or otherwise available to the Department of Homeland Security may not be used for the procurement of an item described in subsection (b) if the item is not grown, reprocessed, reused, or produced in the United States.

(b)

Covered items

An item referred to in subsection (a) is any of the following, if the item is directly related to the national security interests of the United States:

(1)

An article or item of—

(A)

clothing and the materials and components thereof, other than sensors, electronics, or other items added to, and not normally associated with, clothing (and the materials and components thereof);

(B)

tents, tarpaulins, or covers;

(C)

cotton and other natural fiber products, woven silk or woven silk blends, spun silk yarn for cartridge cloth, synthetic fabric or coated synthetic fabric (including all textile fibers and yarns that are for use in such fabrics), canvas products, or wool (whether in the form of fiber or yarn or contained in fabrics, materials, or manufactured articles); or

(D)

any item of individual equipment manufactured from or containing such fibers, yarns, fabrics, or materials.

(c)

Availability exception

Subsection (a) does not apply to the extent that the Secretary of Homeland Security determines that satisfactory quality and sufficient quantity of any such article or item described in subsection (b)(1) grown, reprocessed, reused, or produced in the United States cannot be procured as and when needed.

(d)

Exception for certain procurements outside the united states

Subsection (a) does not apply to the following:

(1)

Procurements by vessels in foreign waters.

(2)

Emergency procurements.

(e)

Exception for small purchases

Subsection (a) does not apply to purchases for amounts not greater than the simplified acquisition threshold referred to in section 2304(g) of title 10, United States Code.

(f)

Applicability to Contracts and Subcontracts for Procurement of Commercial Items

This section is applicable to contracts and subcontracts for the procurement of commercial items notwithstanding section 34 of the Office of Federal Procurement Policy Act (41 U.S.C. 430).

(g)

Geographic coverage

In this section, the term United States includes the possessions of the United States.

(h)

Notification required within 7 days after contract award if certain exceptions applied

In the case of any contract for the procurement of an item described in subsection (b)(1), if the Secretary of Homeland Security applies an exception set forth in subsection (c) with respect to that contract, the Secretary shall, not later than 7 days after the award of the contract, post a notification that the exception has been applied on the Internet site maintained by the General Services Administration know as FedBizOps.gov (or any successor site).

(i)

Training during fiscal year 2008

(1)

In general

The Secretary of Homeland Security shall ensure that each member of the acquisition workforce in the Department of Homeland Security who participates personally and substantially in the acquisition of textiles on a regular basis receives training during fiscal year 2009 on the requirements of this section and the regulations implementing this section.

(2)

Inclusion of information in new training programs

The Secretary shall ensure that any training program for the acquisition work force developed or implemented after the date of the enactment of this Act includes comprehensive information on the requirements described in paragraph (1).

(j)

Consistency with international agreements

(1)

In general

No provision of this section shall apply to the extent the Secretary of Homeland Security, in consultation with the United States Trade Representative, determines that it is in inconsistent with United States obligations under an international agreement.

(2)

Report

The Secretary of Homeland Security shall submit a report each year to Congress containing, with respect to the year covered by the report—

(A)

a list of each provision of this section that did not apply during that year pursuant to a determination by the Secretary under paragraph (1); and

(B)

a list of each contract awarded by the Department of Homeland Security during that year without regard to a provision in this section because that provision was made inapplicable pursuant to such a determination.

(k)

Effective date

This section applies with respect to contracts entered into by the Department of Homeland Security after the date of the enactment of this Act.

VIII

Interior and Environment

Department of the Interior

Bureau of Land Management

Construction

(Including Transfers of Funds)

For an additional amount for Construction, $325,000,000, for priority road, bridge, and trail repair or decommissioning, critical deferred maintenance projects, facilities construction and renovation, hazardous fuels reduction, and remediation of abandoned mine or well sites: Provided, That funds may be transferred to other appropriate accounts of the Bureau of Land management: Provided further, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall be not more than 5 percent instead of the percentage specified in such section.

United States Fish and Wildlife Service

Construction

(Including Transfer of Funds)

For an additional amount for Construction, $300,000,000, for priority road and bridge repair and replacement, and critical deferred maintenance and improvement projects on National Wildlife Refuges, National Fish Hatcheries, and other Service properties: Provided, That funds may be transferred to Resource Management: Provided further, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall be not more than 5 percent instead of the percentage specified in such section.

National Park Service

Construction

(Including Transfer of Funds)

For an additional amount for Construction, $1,700,000,000, for projects to address critical deferred maintenance needs within the National Park System, including roads, bridges and trails, and for other critical infrastructure projects: Provided, That funds may be transferred to Operation of the National Park System: Provided further, That $200,000,000 of these funds shall be for projects related to the preservation and repair of historical and cultural resources within the National Park System: Provided further, That $15,000,000 of these funds shall be transferred to the “Historic Preservation Fund” for historic preservation projects at historically black colleges and universities as authorized by the Historic Preservation Fund Act of 1996 and the Omnibus Parks and Public Lands Act of 1996, except that any matching requirements otherwise required for such projects are waived: Provided further, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall be not more than 5 percent instead of the percentage specified in such section.

Centennial Challenge

To carry out provisions of section 814(g) of Public Law 104–333 relating to challenge cost share agreements, $100,000,000, for National Park Service Centennial Challenge signature projects and programs: Provided, That not less than 50 percent of the total cost of each project or program is derived from non-Federal sources in the form of donated cash, assets, in-kind services, or a pledge of donation guaranteed by an irrevocable letter of credit: Provided further, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall be not more than 5 percent instead of the percentage specified in such section.

United States Geological Survey

Surveys, Investigations, and Research

For an additional amount for Surveys, Investigations, and Research, $200,000,000, for repair and restoration of facilities; equipment replacement and upgrades including stream gages, and seismic and volcano monitoring systems; national map activities; and other critical deferred maintenance and improvement projects: Provided, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall be not more than 5 percent instead of the percentage specified in such section.

Bureau of Indian Affairs

Construction

(Including Transfer of Funds)

For an additional amount for Construction, $500,000,000, for priority repair and replacement of schools, detention centers, roads, bridges, employee housing, and critical deferred maintenance projects: Provided, That not less than $250,000,000 shall be used for new and replacement schools and detention centers: Provided further, That funds may be transferred to Operation of Indian Programs: Provided further, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall be not more than 5 percent instead of the percentage specified in such section.

Environmental Protection Agency

Hazardous Substance Superfund

For an additional amount for Hazardous Substance Superfund, $800,000,000, which shall be used for the Superfund Remedial program: Provided, That amounts available by law from this appropriation for management and administration shall take the place of the set-aside under section 1106 of this Act.

Leaking Underground Storage Tank Trust Fund Program

For an additional amount for Leaking Underground Storage Tank Trust Fund Program, to carry out leaking underground storage tank cleanup activities authorized by subtitle I of the Solid Waste Disposal Act, $200,000,000, which shall be used to carry out leaking underground storage tank cleanup activities authorized by section 9003(h) of the Solid Waste Disposal Act, except that such funds shall not be subject to the State matching requirements in section 9003(h)(7)(B): Provided, That amounts available by law from this appropriation for management and administration shall take the place of the set-aside under section 1106 of this Act.

State and Tribal Assistance Grants

For an additional amount for State and Tribal Assistance Grants, $8,400,000,000, which shall be used as follows:

(1)

$6,000,000,000 shall be for capitalization grants for the Clean Water State Revolving Funds under title VI of the Federal Water Pollution Control Act (33 U.S.C. 1381 et seq.), except that such funds shall not be subject to the State matching requirements in paragraphs (2) and (3) of section 602(b) of such Act or to the Federal cost share limitations in section 202 of such Act: Provided, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall be not more than 2 percent instead of the percentage specified in such section: Provided further, That, notwithstanding the limitation on amounts specified in section 518(c) of the Federal Water Pollution Control Act, up to a total of 1.5 percent of such funds may be reserved by the Administrator of the Environmental Protection Agency for grants under section 518(c) of such Act: Provided further, That the requirements of section 513 of such Act shall apply to the construction of treatment works carried out in whole or in part with assistance made available under this heading by a Clean Water State Revolving Fund under title VI of such Act, or with assistance made available under section 205(m) of such Act, or both: Provided further, That, notwithstanding the requirements of section 603(d) of such Act, each State shall use 50 percent of the amount of the capitalization grant received by the State under title VI of such Act to provide assistance, in the form of additional subsidization, including forgiveness of principal, negative interest loans, and grants, to municipalities (as defined in section 502 of such Act) for projects that are included on the State’s priority list established under section 603(g) of such Act, of which 80 percent shall be for projects to benefit municipalities that meet affordability criteria as determined by the Governor of the State and 20 percent shall be for projects to address water-efficiency goals, address energy-efficiency goals, mitigate stormwater runoff, or encourage environmentally sensitive project planning, design, and construction, to the extent that there are sufficient project applications eligible for such assistance.

(2)

$2,000,000,000 shall be for capitalization grants for the Drinking Water State Revolving Funds under section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j–12), except that such funds shall not be subject to the State matching requirements of section 1452(e) of such Act: Provided, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall be not more than 2 percent instead of the percentage specified in such section: Provided further, That section 1452(k) of the Safe Drinking Water Act shall not apply to such funds: Provided further, That the requirements of section 1450(e) of such Act (42 U.S.C. 300j–9(e)) shall apply to the construction carried out in whole or part with assistance made available under this heading by a Drinking Water State Revolving fund under section 1452 of such Act: Provided further, That, notwithstanding the requirements of section 1452(a)(2) of such Act, each State shall use 50 percent of the amount of the capitalization grant received by the State under section 1452 of such Act to provide assistance, in the form of additional subsidization, including forgiveness of principal, negative interest loans, and grants, to municipalities (as defined in section 1401 of such Act) for projects that are included on the State’s priority list established under section 1452(b)(3) of such Act.

(3)

$300,000,000 shall be for grants under title VII, Subtitle G of the Energy Policy Act of 2005: Provided, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall be not more than 3 percent instead of the percentage specified in such section.

(4)

$100,000,000 shall be to carry out section 104(k) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980: Provided, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall be not more than 3 percent instead of the percentage specified in such section.

Department of Agriculture

Forest Service

Capital Improvement and Maintenance

(Including Transfer of Funds)

For an additional amount for Capital Improvement and Maintenance, $650,000,000, for reconstruction, capital improvement, decommissioning, and maintenance of forest roads, bridges and trails; alternative energy technologies, energy efficiency enhancements and deferred maintenance at Federal facilities; and for remediation of abandoned mine sites, removal of fish passage barriers, and other critical habitat, forest improvement and watershed enhancement projects on Federal lands and waters: Provided, That funds may be transferred to National Forest System: Provided further, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall be not more than 5 percent instead of the percentage specified in such section.

Wildland Fire Management

(Including Transfers of Funds)

For an additional amount for Wildland Fire Management, $850,000,000, of which $300,000,000 is for hazardous fuels reduction, forest health, wood to energy grants and rehabilitation and restoration activities on Federal lands, and of which $550,000,000 is for State fire assistance hazardous fuels projects, volunteer fire assistance, cooperative forest health projects, city forest enhancements, and wood to energy grants on State and private lands: Provided, That amounts in this paragraph may be transferred to State and Private Forestry and National Forest System: Provided further, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall be not more than 5 percent instead of the percentage specified in such section.

Department of Health and Human Services

Indian Health Service

Indian Health Facilities

For an additional amount for Indian Health Facilities, $550,000,000, for priority health care facilities construction projects and deferred maintenance, and the purchase of equipment and related services, including but not limited to health information technology: Provided, That notwithstanding any other provision of law, the amounts available under this paragraph shall be allocated at the discretion of the Director of the Indian Health Service: Provided further, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall be not more than 5 percent instead of the percentage specified in such section.

Other Related Agencies

Smithsonian Institution

Facilities Capital

(Including Transfer of Funds)

For an additional amount for Facilities Capital, $150,000,000, for deferred maintenance projects, and for repair, revitalization, and alteration of facilities owned or occupied by the Smithsonian Institution, by contract or otherwise, as authorized by section 2 of the Act of August 22, 1949 (63 Stat. 623): Provided, That funds may be transferred to Salaries and Expenses: Provided further, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall be not more than 5 percent instead of the percentage specified in such section.

National Foundation on the Arts and the Humanities

National Endowment for the Arts

Grants and Administration

For an additional amount for Grants and Administration, $50,000,000, to be distributed in direct grants to fund arts projects and activities which preserve jobs in the non-profit arts sector threatened by declines in philanthropic and other support during the current economic downturn: Provided, That 40 percent of such funds shall be distributed to State arts agencies and regional arts organizations in a manner similar to the agency’s current practice and 60 percent of such funds shall be for competitively selected arts projects and activities according to sections 2 and 5(c) of the National Foundation on the Arts and Humanities Act of 1965 (20 U.S.C. 951, 954(c)): Provided further, That matching requirements under section 5(e) of such Act shall be waived: Provided further, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall be not more than 5 percent instead of the percentage specified in such section.

IX

Labor, Health and Human Services, and Education

A

Labor

Department of Labor

Employment and Training Administration

Training and Employment Services

For an additional amount for Training and Employment Services for activities under the Workforce Investment Act of 1998 (WIA), $4,000,000,000, which shall be available for obligation on the date of enactment of this Act, as follows:

(1)

$500,000,000 for grants to the States for adult employment and training activities.

(2)

$1,200,000,000 for grants to the States for youth activities, including summer jobs for youth: Provided, That the work readiness performance indicator described in section 136(b)(2)(A)(ii)(I) of the WIA shall be the only measure of performance used to assess the effectiveness of summer jobs for youth provided with such funds: Provided further, That with respect to the youth activities provided with such funds, section 101(13)(A) of the WIA shall be applied by substituting age 24 for age 21: Provided further, That no portion of the additional funds provided herein shall be reserved to carry out section 127(b)(1)(A) of the WIA: Provided further, That for purposes of section 127(b)(1)(C)(iv) of the WIA, such funds shall be allotted as if the total amount of funding available for youth activities in the fiscal year does not exceed $1,000,000,000.

(3)

$1,000,000,000 for grants to the States for dislocated worker employment and training activities.

(4)

$500,000,000 for the dislocated workers assistance national reserve to remain available for Federal obligation through June 30, 2010: Provided, That such funds shall be made available for grants only to eligible entities that serve areas of high unemployment or high poverty and only for the purposes described in subsection 173(a)(1) of the WIA: Provided further, That the Secretary of Labor shall ensure that applicants for such funds demonstrate how income support, child care, and other supportive services necessary for an individual’s participation in job training will be provided.

(5)

$50,000,000 for YouthBuild activities, which shall remain available for Federal obligation through June 30, 2010.

(6)

$750,000,000 for a program of competitive grants for worker training and placement in high growth and emerging industry sectors (including projects funded under section 6002 of division B of this Act): Provided, That $500,000,000 shall be for research, labor exchange and job training projects that prepare workers for careers in the energy efficiency and renewable energy industries specified in section 171(e)(1)(B)(ii) of the WIA (as amended by the Green Jobs Act of 2007): Provided further, That in awarding grants from those funds not designated in the preceding proviso, the Secretary of Labor shall give priority to projects that prepare workers for careers in the health care sector: Provided further, That the provisions of section 1103 of this Act shall not apply to this appropriation:

Provided, That the additional funds provided to States under this heading are not subject to section 191(a) of the WIA: Provided further, That notwithstanding section 1106 of this Act, there shall be no amount set aside from the appropriations made in subsections (1) through (3) under this heading and the amount set aside for subsections (4) through (6) shall be up to 1 percent instead of the percentage specified in such section.

Community Service Employment for Older Americans

For an additional amount for Community Service Employment for Older Americans to carry out title V of the Older Americans Act of 1965, $120,000,000, which shall be available for obligation on the date of enactment of this Act: Provided, That funds shall be allotted within 30 days of such enactment to current grantees in proportion to their allotment in program year 2008.

State Unemployment Insurance and Employment Service Operations

For an additional amount for State Unemployment Insurance and Employment Service Operations for grants to the States in accordance with section 6 of the Wagner-Peyser Act, $500,000,000, which may be expended from the Employment Security Administration Account in the Unemployment Trust Fund, and which shall be available for obligation on the date of enactment of this Act: Provided, That such funds shall remain available to the States through September 30, 2010: Provided further, That, with respect to such funds, section 6(b)(1) of such Act shall be applied by substituting one-third for two-thirds in subparagraph (A), with the remaining one-third of the sums to be allotted in accordance with section 132(b)(2)(B)(ii)(III) of the Workforce Investment Act of 1998: Provided further, That not less than $250,000,000 of the amount provided under this heading shall be used by States for reemployment services for unemployment insurance claimants (including the integrated Employment Service and Unemployment Insurance information technology required to identify and serve the needs of such claimants): Provided further, That the Secretary of Labor shall establish planning and reporting procedures necessary to provide oversight of funds used for reemployment services.

Departmental Management

Salaries and Expenses

(Including Transfer of Funds)

For an additional amount for Departmental Management, $80,000,000, for the enforcement of worker protection laws and regulations, oversight, and coordination activities related to the infrastructure and unemployment insurance investments in this Act: Provided, That the Secretary of Labor may transfer such sums as necessary to Employment and Standards Administration, Occupational Safety and Health Administration, and Employment and Training Administration—Program Administration for enforcement, oversight, and coordination activities: Provided further, That the provisions of section 1106 of this Act shall not apply to this appropriation.

Office of Job Corps

For an additional amount for Office of Job Corps, $300,000,000, for construction, rehabilitation and acquisition of Job Corps Centers, which shall be available upon the date of enactment of this Act and remain available for obligation through June 30, 2010: Provided, That section 1552(a) of title 31, United States Code shall not apply to up to 30 percent of such funds, if such funds are used for a multi-year lease agreement that will result in construction activities that can commence within 120 days of enactment of this Act: Provided further, That notwithstanding section 3324(a) of title 31, United States Code, the funds referred to in the preceding proviso may be used for advance, progress, and other payments: Provided further, That the Secretary of Labor may transfer up to 15 percent of such funds to meet the operational needs of such centers, which may include the provision of additional training for careers in the energy efficiency and renewable energy industries: Provided further, That priority should be given to activities that can commence promptly following enactment and to those projects that will create the greatest impact on the energy efficiency of Job Corps facilities: Provided further, That the Secretary shall provide to the Committees on Appropriations of the House of Representatives and the Senate a report on the actual obligations, expenditures, and unobligated balances for each activity funded under this heading not later than September 30, 2009 and quarterly thereafter as long as funding provided under this heading is available for obligation or expenditure.

General Provisions, This Subtitle

9101.

Eligible employees in the recreational marine industry

Section 2(3)(F) of the Longshore and Harbor Workers’ Compensation Act (33 U.S.C. 902(3)(F)) is amended—

(1)

by striking , repair, or dismantle; and

(2)

by striking the semicolon and inserting , or individuals employed to repair any recreational vessel, or to dismantle any part of a recreational vessel in connection with the repair of such vessel;.

B

Health and Human Services

Department of Health and Human Services

Health Resources and Services

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

(1)

$500,000,000, of which $250,000,000 shall not be available until October 1, 2009, shall be for grants to health centers authorized under section 330 of the Public Health Service Act (PHS Act).

(2)

$1,000,000,000 shall be available for renovation and repair of health centers authorized under section 330 of the PHS Act and for the acquisition by such centers of health information technology systems: Provided, That the timeframe for the award of grants pursuant to section 1103(b) of this Act shall not be later than 180 days after the date of enactment of this Act instead of the timeframe specified in such section.

(3)

$88,000,000 shall be for fit-out and other costs related to moving into a facility to be secured through a competitive lease procurement to replace or renovate a headquarters building for Public Health Service agencies and other components of the Department of Health and Human Services.

(4)

$600,000,000, of which $300,000,000 shall not be available until October 1, 2009, shall be for the training of nurses and primary care physicians and dentists as authorized under titles VII and VIII of the PHS Act, for the provision of health care personnel under the National Health Service Corps program authorized under title III of the PHS Act, and for the patient navigator program authorized under title III of the PHS Act.

Centers for Disease Control and Prevention

Disease Control, Research, and Training

For an additional amount for “Disease Control, Research, and Training” for equipment, construction, and renovation of facilities, including necessary repairs and improvements to leased laboratories, $462,000,000: Provided, That notwithstanding any other provision of law, the Centers for Disease Control and Prevention may award a single contract or related contracts for development and construction of facilities that collectively include the full scope of the project: Provided further, That the solicitation and contract shall contain the clause “availability of funds” found at 48 CFR 52.232–18: Provided further, That in accordance with applicable authorities, policies, and procedures, the Centers for Disease Control and Prevention shall acquire real property, and make any necessary improvements thereon, to relocate and consolidate property and facilities of the National Institute for Occupational Safety and Health.

National Institutes of Health

National Center for Research Resources

For an additional amount for National Center for Research Resources, $1,500,000,000 for grants or contracts under section 481A of the Public Health Service Act to renovate or repair existing non-Federal research facilities: Provided, That sections 481A(c)(1)(B)(ii), paragraphs (1), (3), and (4) of section 481A(e), and section 481B of such Act shall not apply to the use of such funds: Provided further, That the references to “20 years” in subsections (c)(1)(B)(i) and (f) of section 481A of such Act are deemed to be references to “10 years” for purposes of using such funds: Provided further, That the National Center for Research Resources may also use such funds to provide, under the authority of section 301 and title IV of such Act, shared instrumentation and other capital research equipment to recipients of grants and contracts under section 481A of such Act and other appropriate entities: Provided further, That the Director of the Center shall provide to the Committees on Appropriations of the House of Representatives and the Senate an annual report indicating the number of institutions receiving awards of a grant or contract under section 481A of such Act, the proposed use of the funding, the average award size, a list of grant or contract recipients, and the amount of each award: Provided further, That the Center, in obligating such funds, shall require that each entity that applies for a grant or contract under section 481A for any project shall include in its application an assurance described in section 1621(b)(1)(I) of the Public Health Service Act: Provided further, That the Center shall give priority in the award of grants and contracts under section 481A of such Act to those applications that are expected to generate demonstrable energy-saving or beneficial environmental effects: Provided further, That the provisions of section 1103 of this Act shall not apply to the peer-reviewed grants awarded under this heading.

Office of the Director

(Including Transfer of Funds)

For an additional amount for “Office of the Director”, $1,500,000,000, of which $750,000,000 shall not be available until October 1, 2009: Provided, That such funds shall be transferred to the Institutes and Centers of the National Institutes of Health and to the Common Fund established under section 402A(c)(1) of the Public Health Service Act in proportion to the appropriations otherwise made to such Institutes, Centers, and Common Fund for fiscal year 2009: Provided further, That these funds shall be used to support additional scientific research and shall be merged with and be available for the same purposes as the appropriation or fund to which transferred: Provided further, That this transfer authority is in addition to any other transfer authority available to the National Institutes of Health: Provided further, That none of these funds may be transferred to “National Institutes of Health—Buildings and Facilities”, the Center for Scientific Review, the Center for Information Technology, the Clinical Center, the Global Fund for HIV/AIDS, Tuberculosis and Malaria, or the Office of the Director (except for the transfer to the Common Fund): Provided further, That the provisions of section 1103 of this Act shall not apply to the peer-reviewed grants awarded under this heading.

Buildings and Facilities

For an additional amount for “Buildings and Facilities”, $500,000,000, to fund high priority repair and improvement projects for National Institutes of Health facilities on the Bethesda, Maryland campus and other agency locations.

Agency for Healthcare Research and Quality

Healthcare Research and Quality

(Including Transfer of Funds)

For an additional amount for “Healthcare Research and Quality” to carry out titles III and IX of the Public Health Service Act, part A of title XI of the Social Security Act, and section 1013 of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, $700,000,000 for comparative effectiveness research: Provided, That of the amount appropriated in this paragraph, $400,000,000 shall be transferred to the Office of the Director of the National Institutes of Health (“Office of the Director”) to conduct or support comparative effectiveness research: Provided further, That funds transferred to the Office of the Director may be transferred to the national research institutes and national centers of the National Institutes of Health and to the Common Fund established under section 402A(c)(1) of the Public Health Service Act: Provided further, That this transfer authority is in addition to any other transfer authority available to the National Institutes of Health: Provided further, That the provisions of section 1103 of this Act shall not apply to the peer-reviewed grants awarded under this paragraph: Provided further, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall be not more than 1 percent instead of the percentage specified in such section.

In addition, $400,000,000 shall be available for comparative effectiveness research to be allocated at the discretion of the Secretary of Health and Human Services (“Secretary”): Provided, That the funding appropriated in this paragraph shall be used to accelerate the development and dissemination of research assessing the comparative effectiveness of health care treatments and strategies, including through efforts that: (1) conduct, support, or synthesize research that compares the clinical outcomes, effectiveness, and appropriateness of items, services, and procedures that are used to prevent, diagnose, or treat diseases, disorders, and other health conditions; and (2) encourage the development and use of clinical registries, clinical data networks, and other forms of electronic health data that can be used to generate or obtain outcomes data: Provided further, That the Secretary shall enter into a contract with the Institute of Medicine, for which no more than $1,500,000 shall be made available from funds provided in this paragraph, to produce and submit a report to the Congress and the Secretary by not later than June 30, 2009, that includes recommendations on the national priorities for comparative effectiveness research to be conducted or supported with the funds provided in this paragraph and that considers input from stakeholders: Provided further, That the Secretary shall consider any recommendations of the Federal Coordinating Council for Comparative Effectiveness Research established by section 9201 of this Act and any recommendations included in the Institute of Medicine report pursuant to the preceding proviso in designating activities to receive funds provided in this paragraph and may make grants and contracts with appropriate entities, which may include agencies within the Department of Health and Human Services and other governmental agencies, as well as private sector entities, that have demonstrated experience and capacity to achieve the goals of comparative effectiveness research: Provided further, That the Secretary shall publish information on grants and contracts awarded with the funds provided under this heading within a reasonable time of the obligation of funds for such grants and contracts and shall disseminate research findings from such grants and contracts to clinicians, patients, and the general public, as appropriate: Provided further, That, to the extent feasible, the Secretary shall ensure that the recipients of the funds provided by this paragraph offer an opportunity for public comment on the research: Provided further, That the provisions of section 1103 of this Act shall not apply to the peer-reviewed grants awarded under this paragraph: Provided further, That the Secretary shall provide the Committees on Appropriations of the House of Representatives and the Senate, the Committee on Energy and Commerce and the Committee on Ways and Means of the House of Representatives, and the Committee on Health, Education, Labor, and Pensions and the Committee on Finance of the Senate with an annual report on the research conducted or supported through the funds provided under this heading: Provided further, That the Secretary, jointly with the Directors of the Agency for Healthcare Research and Quality and the National Institutes of Health, shall provide the Committees on Appropriations of the House of Representatives and the Senate a fiscal year 2009 operating plan for the funds appropriated under this heading prior to making any Federal obligations of such funds in fiscal year 2009, but not later than 90 days after the date of enactment of this Act, and a fiscal year 2010 operating plan for such funds prior to making any Federal obligations of such funds in fiscal year 2010, but not later than November 1, 2009, that detail the type of research being conducted or supported, including the priority conditions addressed; and specify the allocation of resources within the Department of Health and Human Services: Provided further, That the Secretary jointly with the Directors of the Agency for Healthcare Research and Quality and the National Institutes of Health, shall provide to the Committees on Appropriations of the House of Representatives and the Senate a report on the actual obligations, expenditures, and unobligated balances for each activity funded under this heading not later than November 1, 2009, and every 6 months thereafter as long as funding provided under this heading is available for obligation or expenditure.

Administration for Children and Families

Low-Income Home Energy Assistance

For an additional amount for “Low-Income Home Energy Assistance” for making payments under section 2602(b) and section 2602(d) of the Low-Income Home Energy Assistance Act of 1981, $1,000,000,000, which shall become available on October 1, 2009: Provided, That the provisions of section 1106 of this Act shall not apply to this appropriation.

Payments to States for the Child Care and Development Block Grant

For an additional amount for “Payments to States for the Child Care and Development Block Grant”, $2,000,000,000, of which $1,000,000,000 shall become available on October 1, 2009, which shall be used to supplement, not supplant State general revenue funds for child care assistance for low-income families: Provided, That the provisions of section 1106 of this Act shall not apply to this appropriation.

Children and Families Services Programs

For an additional amount for “Children and Families Services Programs”, $3,200,000,000, which shall be used as follows:

(1)

$1,000,000,000 for carrying out activities under the Head Start Act, of which $500,000,000 shall become available on October 1, 2009.

(2)

$1,100,000,000 for expansion of Early Head Start programs, as described in section 645A of the Head Start Act, of which $550,000,000 shall become available on October 1, 2009: Provided, That of the funds provided in this sentence, up to 10 percent shall be available for the provision of training and technical assistance to such programs consistent with section 645A(g)(2) of such Act, and up to 3 percent shall be available for monitoring the operation of such programs consistent with section 641A of such Act: Provided further, That the preceding proviso shall apply to this appropriation in lieu of the provisions of section 1106 of this Act: Provided further, That the provisions of section 1103 of this Act shall not apply to this appropriation.

(3)

$1,000,000,000 for carrying out activities under sections 674 through 679 of the Community Services Block Grant Act, of which $500,000,000 shall become available on October 1, 2009, and of which no part shall be subject to paragraphs (2) and (3) of section 674(b) of such Act: Provided, That notwithstanding section 675C(a)(1) of such Act, 100 percent of the funds made available to a State from this additional amount shall be distributed to eligible entities as defined in section 673(1) of such Act: Provided further, That for services furnished under such Act during fiscal years 2009 and 2010, States may apply the last sentence of section 673(2) of such Act by substituting “200 percent” for “125 percent”: Provided further, That the provisions of section 1106 of this Act shall not apply to this appropriation.

(4)

$100,000,000 for carrying out activities under section 1110 of the Social Security Act, of which $50,000,000 shall become available on October 1, 2009: Provided, That the Secretary of Health and Human Services shall distribute such amount under the Compassion Capital Fund to eligible faith-based and community organizations: Provided further, That the provisions of section 1106 of this Act shall not apply to this appropriation.

Administration on Aging

Aging Services Programs

For an additional amount for “Aging Services Programs” under section 311, and subparts 1 and 2 of part C, of title III of the Older Americans Act of 1965, $200,000,000, of which $100,000,000 shall become available on October 1, 2009: Provided, That the provisions of section 1106 of this Act shall not apply to this appropriation.

Office of the Secretary

Office of the National Coordinator for Health Information Technology

(Including Transfer of Funds)

For an additional amount for “Office of the National Coordinator for Health Information Technology” to carry out section 9202 of this Act, $2,000,000,000, to remain available until expended: Provided, That of such amount, the Secretary of Health and Human Services shall transfer $20,000,000 to the Director of the National Institute of Standards and Technology in the Department of Commerce for continued work on advancing health care information enterprise integration through activities such as technical standards analysis and establishment of conformance testing infrastructure, so long as such activities are coordinated with the Office of the National Coordinator for Health Information Technology: Provided further, That the provisions of section 1103 of this Act shall not apply to this appropriation: Provided further, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall be 0.25 percent instead of the percentage specified in such section: Provided further, That funds available under this heading shall become available for obligation only upon submission of an annual operating plan by the Secretary to the Committees on Appropriations of the House of Representatives and the Senate: Provided further, That the fiscal year 2009 operating plan shall be provided not later than 90 days after enactment of this Act and that subsequent annual operating plans shall be provided not later than November 1 of each year: Provided further, That these operating plans shall describe how expenditures are aligned with the specific objectives, milestones, and metrics of the Federal Health Information Technology Strategic Plan, including any subsequent updates to the Plan; the allocation of resources within the Department of Health and Human Services and other Federal agencies; and the identification of programs and activities that are supported: Provided further, That the Secretary shall provide to the Committees on Appropriations of the House of Representatives and the Senate a report on the actual obligations, expenditures, and unobligated balances for each major set of activities not later than November 1, 2009, and every 6 months thereafter as long as funding provided under this heading is available for obligation or expenditure: Provided further, That the Comptroller General of the United States shall review on an annual basis the expenditures from funds provided under this heading to determine if such funds are used in a manner consistent with the purpose and requirements under this heading.

Public Health and Social Services Emergency Fund

(Including Transfer of Funds)

For an additional amount for “Public Health and Social Services Emergency Fund” to support advanced research and development pursuant to section 319L of the Public Health Service Act, $430,000,000: Provided, That the provisions of section 1103 of this Act shall not apply to this appropriation.

For an additional amount for “Public Health and Social Services Emergency Fund” to prepare for and respond to an influenza pandemic, including the development and purchase of vaccine, antivirals, necessary medical supplies, diagnostics, and other surveillance tools, $420,000,000: Provided, That the provisions of section 1103 of this Act shall not apply to this appropriation: Provided further, That products purchased with these funds may, at the discretion of the Secretary of Health and Human Services (“Secretary”), be deposited in the Strategic National Stockpile: Provided further, That notwithstanding section 496(b) of the Public Health Service Act, funds may be used for the construction or renovation of privately owned facilities for the production of pandemic influenza vaccine and other biologics, where the Secretary finds such a contract necessary to secure sufficient supplies of such vaccines or biologics: Provided further, That funds appropriated in this paragraph may be transferred to other appropriation accounts of the Department of Health and Human Services, as determined by the Secretary to be appropriate, to be used for the purposed specified in this sentence.

For an additional amount for “Public Health and Social Services Emergency Fund” to improve information technology security at the Department of Health and Human Services, $50,000,000: Provided, That the Secretary shall prepare and submit a report by not later than November 1, 2009, and by not later than 15 days after the end of each month thereafter, updating the status of actions taken and funds obligated in this and previous appropriations Acts for pandemic influenza preparedness and response activities, biomedical advanced research and development activities, Project BioShield, and Cyber Security.

Prevention and Wellness Fund

(Including Transfer of Funds)

For necessary expenses for a “Prevention and Wellness Fund” to be administered through the Department of Health and Human Services Office of the Secretary, $3,000,000,000: Provided, That the provisions of section 1103 of this Act shall not apply to this appropriation: Provided further, That of the amount appropriated under this heading not less than $2,350,000,000 shall be transferred to the Centers for Disease Control and Prevention as follows:

(1)

Not less than $954,000,000 shall be used as an additional amount to carry out the immunization program authorized by section 317(a), (j), and (k)(1) of the Public Health Service Act (“section 317 immunization program”), of which $649,900,000 shall be available on October 1, 2009.

(2)

Not less than $296,000,000 shall be used as an additional amount to carry out Part A of title XIX of the Public Health Service Act, of which $148,000,000 shall be available on October 1, 2009.

(3)

Not less than $545,000,000 shall be used as an additional amount to carry out chronic disease, health promotion, and genomics programs, as jointly determined by the Secretary of Health and Human Services (“Secretary”) and the Director of the Centers for Disease Control and Prevention (“Director”).

(4)

Not less than $335,000,000 shall be used as an additional amount to carry out domestic HIV/AIDS, viral hepatitis, sexually-transmitted diseases, and tuberculosis prevention programs, as jointly determined by the Secretary and the Director.

(5)

Not less than $60,000,000 shall be used as an additional amount to carry out environmental health programs, as jointly determined by the Secretary and the Director.

(6)

Not less than $50,000,000 shall be used as an additional amount to carry out injury prevention and control programs, as jointly determined by the Secretary and the Director.

(7)

Not less than $30,000,000 shall be used as an additional amount for public health workforce development activities, as jointly determined by the Secretary and the Director.

(8)

Not less than $40,000,000 shall be used as an additional amount for the National Institute for Occupational Safety and Health to carry out research activities within the National Occupational Research Agenda.

(9)

Not less than $40,000,000 shall be used as an additional amount for the National Center for Health Statistics:

Provided further, That of the amount appropriated under this heading not less than $150,000,000 shall be available for an additional amount to carry out activities to implement a national action plan to prevent healthcare-associated infections, as determined by the Secretary, of which not less $50,000,000 shall be provided to States to implement healthcare-associated infection reduction strategies: Provided further, That of the amount appropriated under this heading $500,000,000 shall be used to carry out evidence-based clinical and community-based prevention and wellness strategies and public health workforce development activities authorized by the Public Health Service Act, as determined by the Secretary, that deliver specific, measurable health outcomes that address chronic and infectious disease rates and health disparities, which shall include evidence-based interventions in obesity, diabetes, heart disease, cancer, tobacco cessation and smoking prevention, and oral health, and which may be used for the Healthy Communities program administered by the Centers for Disease Control and Prevention and other existing community-based programs administered by the Department of Health and Human Services: Provided further, That funds appropriated in the preceding proviso may be transferred to other appropriation accounts of the Department of Health and Human Services, as determined by the Secretary to be appropriate: Provided further, That the Secretary shall, directly or through contracts with public or private entities, provide for annual evaluations of programs carried out with funds provided under this heading in order to determine the quality and effectiveness of the programs: Provided further, That the Secretary shall, not later than 1 year after the date of enactment of this Act, submit to the Committees on Appropriations of the House of Representatives and the Senate, the Committee on Energy and Commerce of the House of Representatives, and the Committee on Health, Education, Labor, and Pensions of the Senate, a report: (1) summarizing the annual evaluations of programs from the preceding proviso; and (2) making recommendations concerning future spending on prevention and wellness activities, including any recommendations made by the United States Preventive Services Task Force in the area of clinical preventive services and the Task Force on Community Preventive Services in the area of community preventive services: Provided further, That the Secretary shall enter into a contract with the Institute of Medicine, for which no more than $1,500,000 shall be made available from funds provided in this paragraph, to produce and submit a report to the Congress and the Secretary by no later than 1 year after the date of enactment of this Act that includes recommendations on the national priorities for clinical and community-based prevention and wellness activities that will have a positive impact in preventing illness or reducing healthcare costs and that considers input from stakeholders: Provided further, That the Secretary shall provide to the Committees on Appropriations of the House of Representatives and the Senate a fiscal year 2009 operating plan for the Prevention and Wellness Fund prior to making any Federal obligations of funds provided under this heading in fiscal year 2009 (excluding funds to carry out the section 317 immunization program), but not later than 90 days after the date of enactment of this Act, and a fiscal year 2010 operating plan for the Prevention and Wellness Fund prior to making any Federal obligations of funds provided under this heading in fiscal year 2010 (excluding funds to carry out the section 317 immunization program), but not later than November 1, 2009, that indicate the prevention priorities to be addressed; provide measurable goals for each prevention priority; detail the allocation of resources within the Department of Health and Human Services; and identify which programs or activities are supported, including descriptions of any new programs or activities: Provided further, That the Secretary shall provide to the Committees on Appropriations of the House of Representatives and the Senate a report on the actual obligations, expenditures, and unobligated balances for each activity funded under this heading not later than November 1, 2009, and every 6 months thereafter as long as funding provided under this heading is available for obligation or expenditure.

General Provisions, This Subtitle

9201.

Federal Coordinating Council for Comparative Effectiveness Research

(a)

Establishment

There is hereby established a Federal Coordinating Council for Comparative Effectiveness Research (in this section referred to as the Council).

(b)

Purpose; Duties

The Council shall—

(1)

assist the offices and agencies of the Federal Government, including the Departments of Health and Human Services, Veterans Affairs, and Defense, and other Federal departments or agencies, to coordinate the conduct or support of comparative effectiveness and related health services research; and

(2)

advise the President and Congress on—

(A)

strategies with respect to the infrastructure needs of comparative effectiveness research within the Federal Government;

(B)

appropriate organizational expenditures for comparative effectiveness research by relevant Federal departments and agencies; and

(C)

opportunities to assure optimum coordination of comparative effectiveness and related health services research conducted or supported by relevant Federal departments and agencies, with the goal of reducing duplicative efforts and encouraging coordinated and complementary use of resources.

(c)

Membership

(1)

Number and Appointment

The Council shall be composed of not more than 15 members, all of whom are senior Federal officers or employees with responsibility for health-related programs, appointed by the President, acting through the Secretary of Health and Human Services (in this section referred to as the Secretary). Members shall first be appointed to the Council not later than 30 days after the date of the enactment of this Act.

(2)

Members

(A)

In General

The members of the Council shall include one senior officer or employee from each of the following agencies:

(i)

The Agency for Healthcare Research and Quality.

(ii)

The Centers for Medicare and Medicaid Services.

(iii)

The National Institutes of Health.

(iv)

The Office of the National Coordinator for Health Information Technology.

(v)

The Food and Drug Administration.

(vi)

The Veterans Health Administration within the Department of Veterans Affairs.

(vii)

The office within the Department of Defense responsible for management of the Department of Defense Military Health Care System.

(B)

Qualifications

At least half of the members of the Council shall be physicians or other experts with clinical expertise.

(3)

Chairman; Vice Chairman

The Secretary shall serve as Chairman of the Council and shall designate a member to serve as Vice Chairman.

(d)

Reports

(1)

Initial Report

Not later than June 30, 2009, the Council shall submit to the President and the Congress a report containing information describing Federal activities on comparative effectiveness research and recommendations for additional investments in such research conducted or supported from funds made available for allotment by the Secretary for comparative effectiveness research in this Act.

(2)

Annual Report

The Council shall submit to the President and Congress an annual report regarding its activities and recommendations concerning the infrastructure needs, appropriate organizational expenditures and opportunities for better coordination of comparative effectiveness research by relevant Federal departments and agencies.

(e)

Staffing; Support

From funds made available for allotment by the Secretary for comparative effectiveness research in this Act, the Secretary shall make available not more than 1 percent to the Council for staff and administrative support.

9202.

Investment in Health Information Technology

(a)

In General

The Secretary of Health and Human Services shall invest in the infrastructure necessary to allow for and promote the electronic exchange and use of health information for each individual in the United States consistent with the goals outlined in the Strategic Plan developed by the Office of the National Coordinator for Health Information Technology. Such investment shall include investment in at least the following:

(1)

Health information technology architecture that will support the nationwide electronic exchange and use of health information in a secure, private, and accurate manner, including connecting health information exchanges, and which may include updating and implementing the infrastructure necessary within different agencies of the Department of Health and Human Services to support the electronic use and exchange of health information.

(2)

Integration of health information technology, including electronic medical records, into the initial and ongoing training of health professionals and others in the healthcare industry who would be instrumental to improving the quality of healthcare through the smooth and accurate electronic use and exchange of health information as determined by the Secretary.

(3)

Training on and dissemination of information on best practices to integrate health information technology, including electronic records, into a provider’s delivery of care, including community health centers receiving assistance under section 330 of the Public Health Service Act and providers participating in one or more of the programs under titles XVIII, XIX, and XXI of the Social Security Act (relating to Medicare, Medicaid, and the State Children’s Health Insurance Program).

(4)

Infrastructure and tools for the promotion of telemedicine, including coordination among Federal agencies in the promotion of telemedicine.

(5)

Promotion of the interoperability of clinical data repositories or registries.

The Secretary shall implement paragraph (3) in coordination with State agencies administering the Medicaid program and the State Children’s Health Insurance Program.
(b)

Limitation

None of the funds appropriated to carry out this section may be used to make significant investments in, or provide significant funds for, the acquisition of hardware or software or for the use of an electronic health or medical record, or significant components thereof, unless such investments or funds are for certified products that would permit the full and accurate electronic exchange and use of health information in a medical record, including standards for security, privacy, and quality improvement functions adopted by the Office of the National Coordinator for Health Information Technology.

(c)

Report

The Secretary shall annually report to the Committees on Energy and Commerce, on Ways and Means, on Science and Technology, and on Appropriations of the House of Representatives and the Committees on Finance, on Health, Education, Labor, and Pensions, and on Appropriations of the Senate on the uses of these funds and their impact on the infrastructure for the electronic exchange and use of health information.

C

Education

Department of Education

Education for the Disadvantaged

For an additional amount for “Education for the Disadvantaged” to carry out title I of the Elementary and Secondary Education Act of 1965 (“ESEA”), $13,000,000,000: Provided, That $5,500,000,000 shall be available for targeted grants under section 1125 of the ESEA, of which $2,750,000,000 shall become available on July 1, 2009, and shall remain available through September 30, 2010, and $2,750,000,000 shall become available on July 1, 2010, and shall remain available through September 30, 2011: Provided further, That $5,500,000,000 shall be available for education finance incentive grants under section 1125A of the ESEA, of which $2,750,000,000 shall become available on July 1, 2009, and shall remain available through September 30, 2010, and $2,750,000,000 shall become available on July 1, 2010, and shall remain available through September 30, 2011: Provided further, That $2,000,000,000 shall be for school improvement grants under section 1003(g) of the ESEA, of which $1,000,000,000 shall become available on July 1, 2009, and shall remain available through September 30, 2010, and $1,000,000,000 shall become available on July 1, 2010, and shall remain available through September 30, 2011: Provided further, That the provisions of section 1106 of this Act shall not apply to this appropriation.

Impact Aid

For an additional amount for “Impact Aid” to carry out section 8007 of title VIII of the Elementary and Secondary Education Act of 1965, $100,000,000, which shall remain available through September 30, 2010: Provided, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall be 1 percent instead of the percentage specified in such section.

School Improvement Programs

For an additional amount for “School Improvement Programs” to carry out subpart 1, part D of title II of the Elementary and Secondary Education Act of 1965 (“ESEA”), and subtitle B of title VII of the McKinney-Vento Homeless Assistance Act, $1,066,000,000: Provided, That $1,000,000,000 shall be available for subpart 1, part D of title II of the ESEA, of which $500,000,000 shall become available on July 1, 2009, and shall remain available through September 30, 2010, and $500,000,000 shall become available on July 1, 2010, and remain available through September 30, 2011: Provided further, That the provisions of section 1106 of this Act shall not apply to these funds: Provided further, That $66,000,000 shall be available for subtitle B of title VII of the McKinney-Vento Homeless Assistance Act, of which $33,000,000 shall become available on July 1, 2009, and shall remain available through September 30, 2010, and $33,000,000 shall become available on July 1, 2010, and remain available through September 30, 2011.

Innovation and Improvement

For an additional amount for “Innovation and Improvement” to carry out subpart 1, part D and subpart 2, part B of title V of the Elementary and Secondary Education Act of 1965 (“ESEA”), $225,000,000: Provided, That $200,000,000 shall be available for subpart 1, part D of title V of the ESEA: Provided further, That these funds shall be expended as directed in the fifth, sixth, and seventh provisos under the heading “Innovation and Improvement” in the Department of Education Appropriations Act, 2008: Provided further, That a portion of these funds shall also be used for a rigorous national evaluation by the Institute of Education Sciences, utilizing randomized controlled methodology to the extent feasible, that assesses the impact of performance-based teacher and principal compensation systems supported by the funds provided in this Act on teacher and principal recruitment and retention in high-need schools and subjects: Provided further, That $25,000,000 shall be available for subpart 2, part B of title V of the ESEA: Provided further, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall be 1 percent instead of the percentage specified in such section.

Special Education

For an additional amount for “Special Education” for carrying out section 611 and part C of the Individuals with Disabilities Education Act (IDEA), $13,600,000,000: Provided, That $13,000,000,000 shall be available for section 611 of the IDEA, of which $6,000,000,000 shall become available on July 1, 2009, and remain available through September 30, 2010, and $7,000,000,000 shall become available on July 1, 2010, and remain available through September 30, 2011: Provided further, That $600,000,000 shall be available for part C of the IDEA, of which $300,000,000 shall become available on July 1, 2009, and remain available through September 30, 2010, and $300,000,000 shall become available on July 1, 2010, and remain available through September 30, 2011: Provided further, That by July 1, 2009, the Secretary of Education shall reserve the amount needed for grants under section 643(e) of the IDEA from funds available for obligation on July 1, 2009, with any remaining funds to be allocated in accordance with section 643(c) of the IDEA: Provided further, That by July 1, 2010, the Secretary shall reserve the amount needed for grants under section 643(e) of the IDEA from funds available for obligation on July 1, 2010, with any remaining funds to be allocated in accordance with section 643(c) of the IDEA: Provided further, That if every State, as defined by section 602(31) of the IDEA, reaches its maximum allocation under section 611(d)(3)(B)(iii) of the IDEA, and there are remaining funds, such funds shall be proportionally allocated to each State subject to the maximum amounts contained in section 611(a)(2) of the IDEA: Provided further, That the provisions of section 1106 of this Act shall not apply to this appropriation.

Rehabilitation Services and Disability Research

For an additional amount for Rehabilitation Services and Disability Research for providing grants to States to carry out the Vocational Rehabilitation Services program under part B of title I and parts B and C of chapter 1 and chapter 2 of title VII of the Rehabilitation Act of 1973, $700,000,000: Provided, That $500,000,000 shall be available for part B of title I of the Rehabilitation Act, of which $250,000,000 shall become available on October 1, 2009: Provided further, That funds provided herein shall not be considered in determining the amount required to be appropriated under section 100(b)(1) of the Rehabilitation Act of 1973 in any fiscal year: Provided further, That, notwithstanding section 7(14)(A), the Federal share of the costs of vocational rehabilitation services provided with the funds provided herein shall be 100 percent: Provided further, That the provisions of section 1106 of this Act shall not apply to these funds: Provided further, That $200,000,000 shall be available for parts B and C of chapter 1 and chapter 2 of title VII of the Rehabilitation Act, of which $100,000,000 shall become available on October 1, 2009: Provided further, That $34,775,000 shall be for State Grants, $114,581,000 shall be for independent living centers, and $50,644,000 shall be for services for older blind individuals.

Student Financial Assistance

For an additional amount for Student Financial Assistance to carry out subpart 1 of part A and part C of title IV of the Higher Education Act of 1965 (HEA), $16,126,000,000, which shall remain available through September 30, 2011: Provided, That $15,636,000,000 shall be available for subpart 1of part A of title IV of the HEA: Provided further, That $490,000,000 shall be available for part C of title IV of the HEA, of which $245,000,000 shall become available on October 1, 2009: Provided further, That the provisions of section 1106 of this Act shall not apply to this appropriation.

The maximum Pell Grant for which a student shall be eligible during award year 2009–2010 shall be $4,860.

Student Aid Administration

For an additional amount for “Student Aid Administration” to carry out part D of title I, and subparts 1, 3, and 4 of part A, and parts B, C, D, and E of title IV of the Higher Education Act of 1965, $50,000,000, which shall remain available through September 30, 2011: Provided, That such amount shall also be available for an independent audit of programs and activities authorized under section 459A of such Act: Provided further, That the provisions of section 1106 of this Act shall not apply to this appropriation.

Higher Education

For an additional amount for “Higher Education” to carry out part A of title II of the Higher Education Act of 1965, $100,000,000: Provided, That section 203(c)(1) of such Act shall not apply to awards made with these funds.

Institute of Education Sciences

For an additional amount for Institute of Education Sciences to carry out section 208 of the Educational Technical Assistance Act, $250,000,000, which may be used for Statewide data systems that include postsecondary and workforce information, of which up to $5,000,000 may be used for State data coordinators and for awards to public or private organizations or agencies to improve data coordination: Provided, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall be 1 percent instead of the percentage specified in such section.

School Modernization, Renovation, and Repair

For carrying out section 9301 of this Act, $14,000,000,000: Provided, That amount available under section 9301 of this Act for administration and oversight shall take the place of the set-aside under section 1106 of this Act.

Higher Education Modernization, Renovation, and Repair

For carrying out section 9302 of this Act, $6,000,000,000: Provided, That amount available under section 9302 of this Act for administration and oversight shall take the place of the set-aside under section 1106 of this Act.

General Provisions, This Subtitle

9301.

21st Century Green High-Performing Public School Facilities

(a)

Definitions

In this section:

(1)

The term Bureau-funded school has the meaning given to such term in section 1141 of the Education Amendments of 1978 (25 U.S.C. 2021).

(2)

The term charter school has the meaning given such term in section 5210 of the Elementary and Secondary Education Act of 1965.

(3)

The term local educational agency

(A)

has the meaning given to that term in section 9101 of the Elementary and Secondary Education Act of 1965, and shall also include the Recovery School District of Louisiana and the New Orleans Public Schools; and

(B)

includes any public charter school that constitutes a local educational agency under State law.

(4)

The term outlying area

(A)

means the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands; and

(B)

includes the freely associated states of the Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of Palau.

(5)

The term public school facilities includes charter schools.

(6)

The term State means each of the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico.

(7)

The term LEED Green Building Rating System means the United States Green Building Council Leadership in Energy and Environmental Design green building rating standard referred to as the LEED Green Building Rating System.

(8)

The term Energy Star means the Energy Star program of the United States Department of Energy and the United States Environmental Protection Agency.

(9)

The term CHPS Criteria means the green building rating program developed by the Collaborative for High Performance Schools.

(10)

The term Green Globes means the Green Building Initiative environmental design and rating system referred to as Green Globes.

(b)

Purpose

Grants under this section shall be for the purpose of modernizing, renovating, or repairing public school facilities, based on their need for such improvements, to be safe, healthy, high-performing, and up-to-date technologically.

(c)

Allocation of Funds

(1)

Reservations

(A)

In general

From the amount appropriated to carry out this section, the Secretary of Education shall reserve 1 percent of such amount, consistent with the purpose described in subsection (b)—

(i)

to provide assistance to the outlying areas; and

(ii)

for payments to the Secretary of the Interior to provide assistance to Bureau-funded schools.

(B)

Administration and Oversight

The Secretary may, in addition, reserve up to $6,000,000 of such amount for administration and oversight of this section.

(2)

Allocation to States

(A)

State-by-State Allocation

Of the amount appropriated to carry out this section, and not reserved under paragraph (1), each State shall be allocated an amount in proportion to the amount received by all local educational agencies in the State under part A of title I of the Elementary and Secondary Education Act of 1965 for fiscal year 2008 relative to the total amount received by all local educational agencies in every State under such part for such fiscal year.

(B)

State Administration

A State may reserve up to 1 percent of its allocation under subparagraph (A) to carry out its responsibilities under this section, including—

(i)

providing technical assistance to local educational agencies;

(ii)

developing, within 6 months of receiving its allocation under subparagraph (A), a plan to develop a database that includes an inventory of public school facilities in the State and the modernization, renovation, and repair needs of, energy use by, and the carbon footprint of such schools; and

(iii)

developing a school energy efficiency quality plan.

(C)

Grants to Local Educational Agencies

From the amount allocated to a State under subparagraph (A), each local educational agency in the State that meets the requirements of section 1112(a) of the Elementary and Secondary Education Act of 1965 shall receive an amount in proportion to the amount received by such local educational agency under part A of title I of that Act for fiscal year 2008 relative to the total amount received by all local educational agencies in the State under such part for such fiscal year, except that no local educational agency that received funds under part A of title I of that Act for such fiscal year shall receive a grant of less than $5,000.

(D)

Special Rule

Section 1122(c)(3) of the Elementary and Secondary Education Act of 1965 shall not apply to subparagraph (A) or (C).

(3)

Special Rules

(A)

Distributions by Secretary

The Secretary of Education shall make and distribute the reservations and allocations described in paragraphs (1) and (2) not later than 30 days after the date of the enactment of this Act.

(B)

Distributions by States

A State shall make and distribute the allocations described in paragraph (2)(C) within 30 days of receiving such funds from the Secretary.

(d)

Use it or lose it requirements

(1)

Deadline for binding commitments

Each local educational agency receiving funds under this section shall enter into contracts or other binding commitments not later than 1 year after the date of the enactment of this Act (or not later than 9 months after such funds are awarded, if later) to make use of 50 percent of such funds, and shall enter into contracts or other binding commitments not later than 2 years after the date of the enactment of this Act (or not later than 21 months after such funds are awarded, if later) to make use of the remaining funds. In the case of activities to be carried out directly by a local educational agency (rather than by contracts, subgrants, or other arrangements with third parties), a certification by the agency specifying the amounts, planned timing, and purpose of such expenditures shall be deemed a binding commitment for purposes of this subsection.

(2)

Redistribution of uncommitted funds

A State shall recover or deobligate any funds not committed in accordance with paragraph (1), and redistribute such funds to other local educational agencies eligible under this section and able to make use of such funds in a timely manner (including binding commitments within 120 days after the reallocation).

(e)

Allowable Uses of Funds

A local educational agency receiving a grant under this section shall use the grant for modernization, renovation, or repair of public school facilities, including—

(1)

repairing, replacing, or installing roofs, including extensive, intensive or semi-intensive green roofs, electrical wiring, plumbing systems, sewage systems, lighting systems, or components of such systems, windows, or doors, including security doors;

(2)

repairing, replacing, or installing heating, ventilation, air conditioning systems, or components of such systems (including insulation), including indoor air quality assessments;

(3)

bringing public schools into compliance with fire, health, and safety codes, including professional installation of fire/life safety alarms, including modernizations, renovations, and repairs that ensure that schools are prepared for emergencies, such as improving building infrastructure to accommodate security measures;

(4)

modifications necessary to make public school facilities accessible to comply with the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) and section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), except that such modifications shall not be the primary use of the grant;

(5)

asbestos or polychlorinated biphenyls abatement or removal from public school facilities;

(6)

implementation of measures designed to reduce or eliminate human exposure to lead-based paint hazards through methods including interim controls, abatement, or a combination of each;

(7)

implementation of measures designed to reduce or eliminate human exposure to mold or mildew;

(8)

upgrading or installing educational technology infrastructure to ensure that students have access to up-to-date educational technology;

(9)

technology activities that are carried out in connection with school repair and renovation, including—

(A)

wiring;

(B)

acquiring hardware and software;

(C)

acquiring connectivity linkages and resources; and

(D)

acquiring microwave, fiber optics, cable, and satellite transmission equipment;

(10)

modernization, renovation, or repair of science and engineering laboratory facilities, libraries, and career and technical education facilities, including those related to energy efficiency and renewable energy, and improvements to building infrastructure to accommodate bicycle and pedestrian access;

(11)

renewable energy generation and heating systems, including solar, photovoltaic, wind, geothermal, or biomass, including wood pellet, systems or components of such systems;

(12)

other modernization, renovation, or repair of public school facilities to—

(A)

improve teachers’ ability to teach and students’ ability to learn;

(B)

ensure the health and safety of students and staff;

(C)

make them more energy efficient; or

(D)

reduce class size; and

(13)

required environmental remediation related to public school modernization, renovation, or repair described in paragraphs (1) through (12).

(f)

Impermissible Uses of Funds

No funds received under this section may be used for—

(1)

payment of maintenance costs; or

(2)

stadiums or other facilities primarily used for athletic contests or exhibitions or other events for which admission is charged to the general public.

(g)

Supplement, Not Supplant

A local educational agency receiving a grant under this section shall use such Federal funds only to supplement and not supplant the amount of funds that would, in the absence of such Federal funds, be available for modernization, renovation, or repair of public school facilities.

(h)

Prohibition Regarding State Aid

A State shall not take into consideration payments under this section in determining the eligibility of any local educational agency in that State for State aid, or the amount of State aid, with respect to free public education of children.

(i)

Special Rule on Contracting

Each local educational agency receiving a grant under this section shall ensure that, if the agency carries out modernization, renovation, or repair through a contract, the process for any such contract ensures the maximum number of qualified bidders, including local, small, minority, and women- and veteran-owned businesses, through full and open competition.

(j)

Special Rule on Use of Iron and Steel Produced in the United States

(1)

In General

A local educational agency shall not obligate or expend funds received under this section for a project for the modernization, renovation, or repair of a public school facility unless all of the iron and steel used in such project is produced in the United States.

(2)

Exceptions

The provisions of paragraph (1) shall not apply in any case in which the local educational agency finds that—

(A)

their application would be inconsistent with the public interest;

(B)

iron and steel are not produced in the United States in sufficient and reasonably available quantities and of a satisfactory quality; or

(C)

inclusion of iron and steel produced in the United States will increase the cost of the overall project contract by more than 25 percent.

(k)

Application of GEPA

The grant program under this section is an applicable program (as that term is defined in section 400 of the General Education Provisions Act (20 U.S.C. 1221)) subject to section 439 of such Act (20 U.S.C. 1232b).

(l)

Charter Schools

A local educational agency receiving an allocation under this section shall use an equitable portion of that allocation for allowable activities benefitting charter schools within its jurisdiction, as determined based on the percentage of students from low-income families in the schools of the agency who are enrolled in charter schools and on the needs of those schools as determined by the agency.

(m)

Green Schools

(1)

In General

A local educational agency shall use not less than 25 percent of the funds received under this section for public school modernization, renovation, or repairs that are certified, verified, or consistent with any applicable provisions of—

(A)

the LEED Green Building Rating System;

(B)

Energy Star;

(C)

the CHPS Criteria;

(D)

Green Globes; or

(E)

an equivalent program adopted by the State or another jurisdiction with authority over the local educational agency.

(2)

Technical Assistance

The Secretary, in consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, shall provide outreach and technical assistance to States and school districts concerning the best practices in school modernization, renovation, and repair, including those related to student academic achievement and student and staff health, energy efficiency, and environmental protection.

(n)

Youthbuild Programs

The Secretary of Education, in consultation with the Secretary of Labor, shall work with recipients of funds under this section to promote appropriate opportunities for participants in a YouthBuild program (as defined in section 173A of the Workforce Investment Act of 1998 (29 U.S.C. 2918a)) to gain employment experience on modernization, renovation, and repair projects funded under this section.

(o)

Reporting

(1)

Reports by Local Educational Agencies

Local educational agencies receiving a grant under this section shall compile, and submit to the State educational agency (which shall compile and submit such reports to the Secretary), a report describing the projects for which such funds were used, including—

(A)

the number of public schools in the agency, including the number of charter schools;

(B)

the total amount of funds received by the local educational agency under this section and the amount of such funds expended, including the amount expended for modernization, renovation, and repair of charter schools;

(C)

the number of public schools in the agency with a metro-centric locale code of 41, 42, or 43 as determined by the National Center for Education Statistics and the percentage of funds received by the agency under this section that were used for projects at such schools;

(D)

the number of public schools in the agency that are eligible for schoolwide programs under section 1114 of the Elementary and Secondary Education Act of 1965 and the percentage of funds received by the agency under this section that were used for projects at such schools;

(E)

the cost of each project, which, if any, of the standards described in subsection (k)(1) the project met, and any demonstrable or expected academic, energy, or environmental benefits as a result of the project;

(F)

if flooring was installed, whether—

(i)

it was low- or no-VOC (Volatile Organic Compounds) flooring;

(ii)

it was made from sustainable materials; and

(iii)

use of flooring described in clause (i) or (ii) was cost effective; and

(G)

the total number and amount of contracts awarded, and the number and amount of contracts awarded to local, small, minority-owned, women-owned, and veteran-owned businesses.

(2)

Reports by Secretary

Not later than December 31, 2011, the Secretary of Education shall submit to the Committees on Education and Labor and Appropriations of the House of Representatives and the Committees on Health, Education, Labor, and Pensions and Appropriations of the Senate a report on grants made under this section, including the information described in paragraph (1), the types of modernization, renovation, and repair funded, and the number of students impacted, including the number of students counted under section 1113(a)(5) of the Elementary and Secondary Education Act of 1965.

9302.

Higher Education Modernization, Renovation, and Repair

(a)

Purpose

Grants awarded under this section shall be for the purpose of modernizing, renovating, and repairing institution of higher education facilities that are primarily used for instruction, research, or student housing.

(b)

Grants to State Higher Education Agencies

(1)

Formula

From the amounts appropriated to carry out this section, the Secretary of Education shall allocate funds to State higher education agencies based on the number of students attending institutions of higher education, with the State higher education agency in each State receiving an amount that is in proportion to the number of full-time equivalent undergraduate students attending institutions of higher education in such State for the most recent fiscal year for which there are data available, relative to the total number of full-time equivalent undergraduate students attending institutions of higher education in all States for such fiscal year.

(2)

Application

To be eligible to receive an allocation from the Secretary under paragraph (1), a State higher education agency shall submit an application to the Secretary at such time and in such manner as the Secretary may reasonably require.

(3)

Reallocation

Amounts allocated to a State higher education agency under this section that are not obligated by such agency within 6 months of the date the agency receives such amounts shall be returned to the Secretary, and the Secretary shall reallocate such amounts to State higher education agencies in other States on the same basis as the original allocations under paragraph (1)(B).

(4)

Administration and oversight expenses

From the amounts appropriated to carry out this section, not more than $6,000,000 shall be available to the Secretary for administrative and oversight expenses related to carrying out this section.

(c)

Use of Grants by State Higher Education Agencies

(1)

Subgrants to Institutions of Higher Education

(A)

In General

Except as provided in paragraph (2), each State higher education agency receiving an allocation under subsection (b)(1) shall use the amount allocated to award subgrants to institutions of higher education within the State to carry out projects in accordance with subsection (d)(1).

(B)

Subgrant Award Allocation

A State higher education agency shall award subgrants to institutions of higher education under this section based on the demonstrated need of each institution for facility modernization, renovation, and repair.

(C)

Priority Considerations

In awarding subgrants under this section, each State higher education agency shall give priority consideration to institutions of higher education with any of the following characteristics:

(i)

The institution is eligible for Federal assistance under title III or title V of the Higher Education Act of 1965.

(ii)

The institution was impacted by a major disaster or emergency declared by the President (as defined in section 102(2) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122(2))), including an institution affected by a Gulf hurricane disaster, as such term is defined in section 824(g)(1) of the Higher Education Act of 1965 (20 U.S.C. 11611–3(g)(1)).

(iii)

The institution demonstrates that the proposed project or projects to be carried out with a subgrant under this section will increase the energy efficiency of the institution’s facilities and comply with the LEED Green Building Rating System.

(2)

Administrative and Oversight Expenses

Of the allocation amount received under subsection (b)(1), a State higher education agency may reserve not more than 5 percent of such amount, or $500,000, whichever is less, for administrative and oversight expenses related to carrying out this section.

(d)

Use of Subgrants by Institutions of Higher Education

(1)

Permissible Uses of Funds

An institution of higher education receiving a subgrant under this section shall use such subgrant to modernize, renovate, or repair facilities of the institution that are primarily used for instruction, research, or student housing, which may include any of the following:

(A)

Repair, replacement, or installation of roofs, electrical wiring, plumbing systems, sewage systems, or lighting systems.

(B)

Repair, replacement, or installation of heating, ventilation, or air conditioning systems (including insulation).

(C)

Compliance with fire and safety codes, including—

(i)

professional installation of fire or life safety alarms; and

(ii)

modernizations, renovations, and repairs that ensure that the institution’s facilities are prepared for emergencies, such as improving building infrastructure to accommodate security measures.

(D)

Retrofitting necessary to increase the energy efficiency of the institution’s facilities.

(E)

Renovations to the institution’s facilities necessary to comply with accessibility requirements in the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) and section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794).

(F)

Abatement or removal of asbestos from the institution’s facilities.

(G)

Modernization, renovation, and repair relating to improving science and engineering laboratories, libraries, and instructional facilities.

(H)

Upgrading or installation of educational technology infrastructure.

(I)

Installation or upgrading of renewable energy generation and heating systems, including solar, photovoltaic, wind, biomass (including wood pellet), or geothermal systems, or components of such systems.

(J)

Other modernization, renovation, or repair projects that are primarily for instruction, research, or student housing.

(2)

Green School Requirement

An institution of higher education receiving a subgrant under this section shall use not less than 25 percent of such subgrant to carry out projects for modernization, renovation, or repair that are certified, verified, or consistent with the applicable provisions of—

(A)

the LEED Green Building Rating System;

(B)

Energy Star;

(C)

the CHPS Criteria;

(D)

Green Globes; or

(E)

an equivalent program adopted by the State or the State higher education agency.

(3)

Prohibited Uses of Funds

No funds awarded under this section may be used for—

(A)

the maintenance of systems, equipment, or facilities, including maintenance associated with any permissible uses of funds described in paragraph (1);

(B)

modernization, renovation, or repair of stadiums or other facilities primarily used for athletic contests or exhibitions or other events for which admission is charged to the general public;

(C)

modernization, renovation, or repair of facilities—

(i)

used for sectarian instruction, religious worship, or a school or department of divinity; or

(ii)

in which a substantial portion of the functions of the facilities are subsumed in a religious mission; or

(D)

construction of new facilities.

(4)

Use it or lose it requirements

(A)

Deadline for binding commitments

Each institution of higher education receiving a subgrant under this section shall enter into contracts or other binding commitments not later than 1 year after the date of the enactment of this Act (or not later than 9 months after the subgrant is awarded, if later) to make use of 50 percent of the funds awarded, and shall enter into contracts or other binding commitments not later than 2 years after the date of the enactment of this Act (or not later than 21 months after the subgrant is awarded, if later) to make use of the remaining funds. In the case of activities to be carried out directly by an institution of higher education receiving such a subgrant (rather than by contracts, subgrants, or other arrangements with third parties), a certification by the institution specifying the amounts, planned timing, and purpose of such expenditures shall be deemed a binding commitment for purposes of this section.

(B)

Redistribution of uncommitted funds

A State higher education agency shall recover or deobligate any subgrant funds not committed in accordance with subparagraph (A), and redistribute such funds to other institutions of higher education that are—

(i)

eligible for subgrants under this section; and

(ii)

able to make use of such funds in a timely manner (including binding commitments within 120 days after the reallocation).

(e)

Application of GEPA

The grant program authorized in this section is an applicable program (as that term is defined in section 400 of the General Education Provisions Act (20 U.S.C. 1221)) subject to section 439 of such Act (20 U.S.C. 1232b). The Secretary shall, notwithstanding section 437 of such Act (20 U.S.C. 1232) and section 553 of title 5, United States Code, establish such program rules as may be necessary to implement such grant program by notice in the Federal Register.

(f)

Reporting

(1)

Reports by Institutions

Not later than September 30, 2011, each institution of higher education receiving a subgrant under this section shall submit to the State higher education agency awarding such subgrant a report describing the projects for which such subgrant was received, including—

(A)

a description of each project carried out, or planned to be carried out, with such subgrant, including the types of modernization, renovation, and repair to be completed by each such project;

(B)

the total amount of funds received by the institution under this section and the amount of such funds expended, as of the date of the report, on the such projects;

(C)

the actual or planned cost of each such project and any demonstrable or expected academic, energy, or environmental benefits resulting from such project; and

(D)

the total number of contracts, and amount of funding for such contracts, awarded by the institution to carry out such projects, as of the date of such report, including the number of contracts, and amount of funding for such contracts, awarded to local, small, minority-owned, women-owned, and veteran-owned businesses, as such terms are defined by the Small Business Act.

(2)

Reports by States

Not later than December 31, 2011, each State higher education agency receiving a grant under this section shall submit to the Secretary a report containing a compilation of all of the reports under paragraph (1) submitted to the agency by institutions of higher education.

(3)

Reports by the Secretary

Not later than March 31, 2012, the Secretary shall submit to the Committee on Education and Labor in the House of Representatives and the Committee on Health, Education, Labor, and Pensions in the Senate and Committees on Appropriations of the House of Representatives and the Senate a report on grants and subgrants made under this section, including the information described in paragraph (1).

(g)

Definitions

In this section:

(1)

Chps Criteria

The term CHPS Criteria means the green building rating program developed by the Collaborative for High Performance Schools.

(2)

Energy Star

The term Energy Star means the Energy Star program of the United States Department of Energy and the United States Environmental Protection Agency.

(3)

Green Globes

The term Green Globes means the Green Building Initiative environmental design and rating system referred to as Green Globes.

(4)

Institution of Higher Education

The term institution of higher education has the meaning given such term in section 101 of the Higher Education Act of 1965.

(5)

LEED Green Building Rating System

The term LEED Green Building Rating System means the United States Green Building Council Leadership in Energy and Environmental Design green building rating standard referred to as the LEED Green Building Rating System.

(6)

Secretary

The term Secretary means the Secretary of Education.

(7)

State

The term State has the meaning given such term in section 103 of the Higher Education Act of 1965 (20 U.S.C. 1003).

(8)

State higher education agency

The term State higher education agency has the meaning given such term in section 103 of the Higher Education Act of 1965 (20 U.S.C. 1003).

9303.

Mandatory Pell Grants

Section 401(b)(9)(A) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(9)(A)) is amended—

(1)

in clause (ii), by striking $2,090,000,000 and inserting $2,733,000,000; and

(2)

in clause (iii), by striking $3,030,000,000 and inserting $3,861,000,000.

9304.

Increase Student Loan Limits

(a)

Amendments

Section 428H(d) of the Higher Education Act of 1965 (20 U.S.C. 1078–8(d)) is amended—

(1)

in paragraph (3)—

(A)

in subparagraph (A), by striking $2,000 and inserting $4,000; and

(B)

in subparagraph (B), by striking $31,000 and inserting $39,000; and

(2)

in paragraph (4)—

(A)

in subparagraph (A)—

(i)

in clause (i)(I) and clause (iii)(I), by striking $6,000 each place it appears and inserting $8,000; and

(ii)

in clause (ii)(I) and clause (iii)(II), by striking $7,000 each place it appears and inserting $9,000; and

(B)

in subparagraph (B), by striking $57,500 and inserting $65,500.

(b)

Effective Date

The amendments made by this section shall be effective for loans first disbursed on or after January 1, 2009.

9305.

Student Lender Special Allowance

(a)

Temporary Calculation Rule

Section 438(b)(2)(I) of the Higher Education Act of 1965 (20 U.S.C. 1087–1(b)(2)(I)) is amended by adding at the end the following new clause:

(vii)

Temporary calculation rule during unstable commercial paper markets

(I)

Calculation based on libor

For the calendar quarter beginning on October 1, 2008, and ending on December 31, 2008, in computing the special allowance paid pursuant to this subsection with respect to loans for which the first disbursement is made on or after January 1, 2000, clause (i)(I) of this subparagraph shall be applied by substituting the rate that is the average rate of the 3-month London Inter Bank Offered Rate (LIBOR) for United States dollars in effect for each of the days in such quarter as compiled and released by the British Bankers Association, minus 0.13 percent, for the average of the bond equivalent rates of the quotes of the 3-month commercial paper (financial) rates in effect for each of the days in such quarter as reported by the Federal Reserve in Publication H–15 (or its successor) for such 3-month period.

(II)

Participation interests

Notwithstanding subclause (I) of this clause, the special allowance paid on any loan held by a lender that has sold participation interests in such loan to the Secretary shall be the rate computed under this subparagraph without regard to subclause (I) of this clause, unless the lender agrees that the participant’s yield with respect to such participation interest is to be calculated in accordance with subclause (I) of this clause.

.

(b)

Conforming Amendments

Section 438(b)(2)(I) of the Higher Education Act of 1965 (20 U.S.C. 1087–1(b)(2)(I)) is further amended—

(1)

in clause (i)(II), by striking such average bond equivalent rate and inserting the rate determined under subclause (I); and

(2)

in clause (v)(III), by striking (iv), and (vi) and inserting (iv), (vi), and (vii).

D

Related Agencies

Corporation for National and Community Service

Operating Expenses

For an additional amount for Operating Expenses to carry out the Domestic Volunteer Service Act of 1973 and the National and Community Service Act of 1990 (1990 Act), $160,000,000, which shall be used to expand existing AmeriCorps grants: Provided, That funds made available under this heading may be used to provide adjustments to awards made prior to September 30, 2010 in order to waive the match requirement authorized in section 121(e)(4) of part I of subtitle C of the 1990 Act, if the Chief Executive Officer of the Corporation for National and Community Service (CEO) determines that the grantee has reduced capacity to meet this requirement: Provided further, That in addition to requirements identified herein, funds provided under this heading shall be subject to the terms and conditions under which funds are appropriated in fiscal year 2009: Provided further, That the CEO shall provide the Committees on Appropriations of the House of Representatives and the Senate a fiscal year 2009 operating plan for the funds appropriated under this heading prior to making any Federal obligations of such funds in fiscal year 2009, but not later than 90 days after the date of enactment of this Act, and a fiscal year 2010 operating plan for such funds prior to making any Federal obligations of such funds in fiscal year 2010, but not later than November 1, 2009, that detail the allocation of resources and the increased number of volunteers supported by the AmeriCorps programs: Provided further, That the CEO shall provide to the Committees on Appropriations of the House of Representatives and the Senate a report on the actual obligations, expenditures, and unobligated balances for each activity funded under this heading not later than November 1, 2009, and every 6 months thereafter as long as funding provided under this heading is available for obligation or expenditure.

National Service Trust

(Including Transfer of Funds)

For an additional amount for National Service Trust established under subtitle D of title I of the National and Community Service Act of 1990 (1990 Act), $40,000,000, which shall remain available until expended: Provided, That the Corporation for National and Community Service may transfer additional funds from the amount provided within Operating Expenses for grants made under subtitle C of the 1990 Act to this appropriation upon determination that such transfer is necessary to support the activities of national service participants and after notice is transmitted to the Committees on Appropriations of the House of Representatives and the Senate: Provided further, That the amount appropriated for or transferred to the National Service Trust may be invested under section 145(b) of the 1990 Act without regard to the requirement to apportion funds under 31 U.S.C. 1513(b).

Social Security Administration

Limitation on Administrative Expenses

(Including Transfer of Funds)

For an additional amount for Limitation on Administrative Expenses, $900,000,000, which shall be used as follows:

(1)

$400,000,000 for the construction and associated costs to establish a new National Computer Center, which may include lease or purchase of real property: Provided, That the construction plan and site selection for such center shall be subject to review and approval by the Office of Management and Budget: Provided further, That the Committees on Appropriations of the House of Representatives and the Senate shall be notified 15 days in advance of the lease or purchase of such site: Provided further, That such center shall continue to be a government-operated facility.

(2)

$500,000,000 for processing disability and retirement workloads: Provided, That up to $40,000,000 may be used by the Commissioner of Social Security for health information technology research and activities to facilitate the adoption of electronic medical records in disability claims, including the transfer of funds to Supplemental Security Income Program to carry out activities under section 1110 of the Social Security Act.

X

Military Construction and Veterans Affairs

Department of Defense

Military Construction, Army

For an additional amount for Military Construction, Army, $920,000,000: Provided, That notwithstanding any other provision of law, such funds may be obligated and expended to carry out planning and design and military construction projects in the United States not otherwise authorized by law: Provided further, That of the amount provided under this heading, $600,000,000 shall be for training and recruit troop housing, $220,000,000 shall be for permanent party troop housing, and $100,000,000 shall be for child development centers: Provided further, That not later than 30 days after the date of enactment of this Act, the Secretary of Defense shall submit to the Committees on Appropriations of the House of Representatives and the Senate an expenditure plan for funds provided under this heading.

Military Construction, Navy and Marine Corps

For an additional amount for Military Construction, Navy and Marine Corps, $350,000,000: Provided, That notwithstanding any other provision of law, such funds may be obligated and expended to carry out planning and design and military construction projects in the United States not otherwise authorized by law: Provided further, That of the amount provided under this heading, $170,000,000 shall be for sailor and marine housing and $180,000,000 shall be for child development centers: Provided further, That not later than 30 days after the date of enactment of this Act, the Secretary of Defense shall submit to the Committees on Appropriations of the House of Representatives and the Senate an expenditure plan for funds provided under this heading.

Military Construction, Air Force

For an additional amount for Military Construction, Air Force, $280,000,000: Provided, That notwithstanding any other provision of law, such funds may be obligated and expended to carry out planning and design and military construction projects in the United States not otherwise authorized by law: Provided further, That of the amount provided under this heading, $200,000,000 shall be for airmen housing and $80,000,000 shall be for child development centers: Provided further, That not later than 30 days after the date of enactment of this Act, the Secretary of Defense shall submit to the Committees on Appropriations of the House of Representatives and the Senate an expenditure plan for funds provided under this heading.

Military Construction, Defense-Wide

For an additional amount for Military Construction, Defense-Wide, $3,750,000,000, for the construction of hospitals and ambulatory surgery centers: Provided, That notwithstanding any other provision of law, such funds may be obligated and expended to carry out planning and design and military construction projects in the United States not otherwise authorized by law: Provided further, That not later than 30 days after the date of enactment of this Act, the Secretary of Defense shall submit to the Committees on Appropriations of the House of Representatives and the Senate an expenditure plan for funds provided under this heading.

Military Construction, Army National Guard

For an additional amount for Military Construction, Army National Guard, $140,000,000: Provided, That notwithstanding any other provision of law, such funds may be obligated and expended to carry out planning and design and military construction projects in the United States not otherwise authorized by law: Provided further, That not later than 30 days after the date of enactment of this Act, the Secretary of Defense shall submit to the Committees on Appropriations of the House of Representatives and the Senate an expenditure plan for funds provided under this heading.

Military Construction, Air National Guard

For an additional amount for Military Construction, Air National Guard, $70,000,000: Provided, That notwithstanding any other provision of law, such funds may be obligated and expended to carry out planning and design and military construction projects in the United States not otherwise authorized by law: Provided further, That not later than 30 days after the date of enactment of this Act, the Secretary of Defense shall submit to the Committees on Appropriations of the House of Representatives and the Senate an expenditure plan for funds provided under this heading.

Military Construction, Army Reserve

For an additional amount for Military Construction, Army Reserve, $100,000,000: Provided, That notwithstanding any other provision of law, such funds may be obligated and expended to carry out planning and design and military construction projects in the United States not otherwise authorized by law: Provided further, That not later than 30 days after the date of enactment of this Act, the Secretary of Defense shall submit to the Committees on Appropriations of the House of Representatives and the Senate an expenditure plan for funds provided under this heading.

Military Construction, Navy Reserve

For an additional amount for Military Construction, Navy Reserve, $30,000,000: Provided, That notwithstanding any other provision of law, such funds may be obligated and expended to carry out planning and design and military construction projects in the United States not otherwise authorized by law: Provided further, That not later than 30 days after the date of enactment of this Act, the Secretary of Defense shall submit to the Committees on Appropriations of the House of Representatives and the Senate an expenditure plan for funds provided under this heading.

Military Construction, Air Force Reserve

For an additional amount for Military Construction, Air Force Reserve, $60,000,000: Provided, That notwithstanding any other provision of law, such funds may be obligated and expended to carry out planning and design and military construction projects in the United States not otherwise authorized by law: Provided further, That not later than 30 days after the date of enactment of this Act, the Secretary of Defense shall submit to the Committees on Appropriations of the House of Representatives and the Senate an expenditure plan for funds provided under this heading.

Department of Defense Base Closure Account 1990

For an additional amount to be deposited into the Department of Defense Base Closure Account 1990, established by section 2906(a)(1) of the Defense Base Closure and Realignment Act of 1990 (10 U.S.C. 2687 note), $300,000,000: Provided, That not later than 30 days after the date of enactment of this Act, the Secretary of Defense shall submit to the Committees on Appropriations of the House of Representatives and the Senate an expenditure plan for funds provided under this heading.

Department of Veterans Affairs

Veterans Health Administration

Medical Facilities

For an additional amount for Medical Facilities for non-recurring maintenance, including energy projects, $950,000,000: Provided, That not later than 30 days after the date of enactment of this Act, the Secretary of Veterans Affairs shall submit to the Committees on Appropriations of the House of Representatives and the Senate an expenditure plan for funds provided under this heading.

National Cemetery Administration

For an additional amount for National Cemetery Administration for monument and memorial repairs, $50,000,000: Provided, That not later than 30 days after the date of enactment of this Act, the Secretary of Veterans Affairs shall submit to the Committees on Appropriations of the House of Representatives and the Senate an expenditure plan for funds provided under this heading.

XI

Department of State

Department of State

Administration of Foreign Affairs

Capital Investment Fund

For an additional amount for Capital Investment Fund, $276,000,000, of which up to $120,000,000 shall be available for the design and construction of a backup information management facility in the United States to support mission-critical operations and projects, and up to $98,527,000 shall be available to carry out the Department of State’s responsibilities under the Comprehensive National Cybersecurity Initiative: Provided, That the Secretary of State shall submit to the Committees on Appropriations of the House of Representatives and the Senate within 90 days of enactment of this Act a detailed spending plan for funds appropriated under this heading.

International Commissions

International Boundary and Water Commission, United States and Mexico

Construction

(Including Transfer of Funds)

For an additional amount for Construction for the water quantity program to meet immediate repair and rehabilitation requirements, $224,000,000: Provided, That up to $2,000,000 may be transferred to, and merged with, funds available under the heading International Boundary and Water Commission, United States and Mexico—Salaries and Expenses, and such amount shall be in lieu of amounts available under section 1106 of this Act: Provided, That the Secretary of State shall submit to the Committees on Appropriations of the House of Representatives and the Senate within 90 days of enactment of this Act a detailed spending plan for funds appropriated under this heading.

XII

Transportation, and Housing and Urban Development

Department of Transportation

Federal Aviation Administration

Grants-in-Aid for Airports

For an additional amount for Grants-in-Aid for Airports, to enable the Secretary of Transportation to make grants for discretionary projects as authorized by subchapter I of chapter 471 and subchapter I of chapter 475 of title 49, United States Code, $3,000,000,000: Provided, That such funds shall not be subject to apportionment formulas, special apportionment categories, or minimum percentages under chapter 471: Provided further, That the conditions, certifications, and assurances required for grants under subchapter I of chapter 471 of such title apply: Provided further, That for purposes of applying section 1104 of this Act to this appropriation, the deadline for grantees to enter into contracts or other binding commitments to make use of not less than 50 percent of the funds awarded shall be 90 days after award of the grant.

Federal Highway Administration

Highway Infrastructure Investment

For projects and activities eligible under section 133 of title 23, United States Code, section 144 of such title (without regard to subsection (g)), and sections 103, 119, 134, 148, and 149 of such title, $30,000,000,000, of which $300,000,000 shall be for Indian reservation roads under section 204 of such title; $250,000,000 shall be for park roads and parkways under section 204 of such title; $20,000,000 shall be for highway surface transportation and technology training under section 140(b) of such title; and $20,000,000 shall be for disadvantaged business enterprises bonding assistance under section 332(e) of title 49, United States Code: Provided, That the amount set aside from this appropriation pursuant to section 1106 of this Act shall not be more than 0.2 percent of the funds made available under this heading instead of the percentage specified in such section: Providedfurther, That, after making the set-asides authorized by the previous provisos, the funds made available under this heading shall be distributed among the States, and Puerto Rico, American Samoa, Guam, the Virgin Islands, and the Commonwealth of the Northern Mariana Islands, in the same ratio as the obligation limitation for fiscal year 2008 was distributed among the States in accordance with the formula specified in section 120(a)(6) of division K of Public Law 110–161, but, in the case of the Puerto Rico Highway Program and the Territorial Highway Program, under section 120(a)(5) of such division: Provided further, That 45 percent of the funds distributed to a State under this heading shall be suballocated within the State in the manner and for the purposes described in section 133(d) of title 23, United States Code, (without regard to the comparison to fiscal year 2005 in paragraph (2)): Provided further, That in selecting projects to be funded, recipients shall give priority to projects that can award contracts within 90 days of enactment of this Act, are included in an approved Statewide Transportation Improvement Program (STIP) and/or Metropolitan Transportation Improvement Program (TIP), are projected for completion within a three-year time frame, and are located in economically distressed areas as defined by section 301 of the Public Works and Economic Development Act of 1965, as amended (42 U.S.C. 3161): Provided further, That funds made available under this heading shall be administered as if apportioned under chapter 1 of title 23, United States Code, except for funds made available for Indian reservation roads and park roads and parkways which shall be administered in accordance with chapter 2 of title 23, United States Code: Provided further, That the Federal share payable on account of any project or activity carried out with funds made available under this heading shall, at the option of the recipient, be up to 100 percent of the total cost thereof: Provided further, That funds made available by this Act shall not be obligated for the purposes authorized under section 115(b) of title 23, United States Code: Provided further, That the provisions of section 1101(b) of Public Law 109–59 shall apply to funds made available under this heading: Provided further, That, in lieu of the redistribution required by section 1104(b) of this Act, if less than 50 percent of the funds made available to each State and territory under this heading are obligated within 90 days after the date of distribution of those funds to the States and territories, then the portion of the 50 percent of the total funding distributed to the State or territory that has not been obligated shall be redistributed, in the manner described in section 120(c) of division K of Public Law 110–161, to those States and territories that have obligated at least 50 percent of the funds made available under this heading and are able to obligate amounts in addition to those previously distributed, except that, for those funds suballocated within the State, if less than 50 percent of the funds so suballocated within the State are obligated within 75 days of suballocation, then the portion of the 50 percent of funding so suballocated that has not been obligated will be returned to the State for use anywhere in the State prior to being redistributed in accordance with the first part of this proviso: Provided further, That, in lieu of the redistribution required by section 1104(b) of this Act, any funds made available under this heading that are not obligated by August 1, 2010, shall be redistributed, in the manner described in section 120(c) of division K of Public Law 110–161, to those States able to obligate amounts in addition to those previously distributed, except that funds suballocated within the State that are not obligated by June 1, 2010, will be returned to the State for use anywhere in the State prior to being redistributed in accordance with the first part of this proviso: Provided further, That notwithstanding section 1103 of this Act, funds made available under this heading shall be apportioned not later than 7 days after the date of enactment of this Act.

Federal Railroad Administration

Capital Assistance for Intercity Passenger Rail Service

For an additional amount for “Capital Assistance for Intercity Passenger Rail Service” to enable the Secretary of Transportation to make grants for capital costs as authorized by chapter 244 of title 49 United States Code, $300,000,000: Provided, That notwithstanding section 1103 of this Act, the Secretary shall give preference to projects for the repair, rehabilitation, upgrade, or purchase of railroad assets or infrastructure that can be awarded within 90 days of enactment of this Act: Provided further, That in awarding grants for the acquisition of a piece of rolling stock or locomotive, the Secretary shall give preference to FRA-compliant rolling stock and locomotives: Provided further, That the Secretary shall give preference to projects that support the development of intercity high speed rail service: Provided further, That the Federal share shall be, at the option of the recipient, up to 100 percent.

Capital and Debt Service Grants to the National Railroad Passenger Corporation

For an additional amount for “Capital and Debt Service Grants to the National Railroad Passenger Corporation” (Amtrak) to enable the Secretary of Transportation to make capital grants to Amtrak as authorized by section 101(c) of the Passenger Rail Investment and Improvement Act of 2008 (Public Law 110–432), $800,000,000: Provided, That priority shall be given to projects for the repair, rehabilitation, or upgrade of railroad assets or infrastructure: Provided further, That none of the funds under this heading shall be used to subsidize the operating losses of Amtrak: Provided further, Notwithstanding section 1103 of this Act, funds made available under this heading shall be awarded not later than 7 days after the date of enactment of this Act.

Federal Transit Administration

Transit Capital Assistance

For transit capital assistance grants, $6,000,000,000 (increased by $1,500,000,000), of which $5,400,000,000 (increased by $1,350,000,000) shall be for grants under section 5307 of title 49, United States Code and shall be apportioned in accordance with section 5336 of such title (other than subsections (i)(1) and (j)) but may not be combined or commingled with any other funds apportioned under such section 5336, and of which $600,000,000 (increased by $150,000,000) shall be for grants under section 5311 of such title and shall be apportioned in accordance with such section 5311 but may not be combined or commingled with any other funds apportioned under that section: Provided, That of the funds provided for section 5311 under this heading, 3 percent shall be made available for section 5311(c)(1): Provided further, That applicable chapter 53 requirements shall apply except that the Federal share of the costs for which a grant is made under this heading shall be, at the option of the recipient, up to 100 percent: Provided further, In lieu of the requirements of section 1103 of this Act, funds made available under this heading shall be apportioned not later than 7 days after the date of enactment of this Act: Provided further, That for purposes of applying section 1104 of this Act to this appropriation, the deadline for grantees to enter into obligations to make use of not less than 50 percent of the funds awarded shall be 90 days after apportionment: Provided further, That the provisions of section 1101(b) of Public Law 109–59 shall apply to funds made available under this heading: Provided further, That notwithstanding any other provision of law, of the funds apportioned in accordance with section 5336, up to three-quarters of 1 percent shall be available for administrative expenses and program management oversight and of the funds apportioned in accordance with section 5311, up to one-half of 1 percent shall be available for administrative expenses and program management oversight and both amounts shall remain available for obligation until September 30, 2012: Provided further, That the preceding proviso shall apply in lieu of the provisions in section 1106 of this Act.

Fixed Guideway Infrastructure Investment

For an amount for capital expenditures authorized under section 5309(b)(2) of title 49, United States Code, $2,000,000,000: Provided, That the Secretary of Transportation shall apportion funds under this heading pursuant to the formula set forth in section 5337 of title 49, United States Code: Provided further, That the funds appropriated under this heading shall not be commingled with funds available under the Formula and Bus Grants account: Provided further, In lieu of the requirements of section 1103 of this Act, funds made available under this heading shall be apportioned not later than 7 days after the date of enactment of this Act: Provided further, That for purposes of applying section 1104 of this Act to this appropriation, the deadline for grantees to enter into obligations to make use of not less than 50 percent of the funds awarded shall be 90 days after apportionment: Provided further, That applicable chapter 53 requirements shall apply except that the Federal share of the costs for which a grant is made under this heading shall be, at the option of the recipient, up to 100 percent: Provided further, That the provisions of section 1101(b) of Public Law 109–59 shall apply to funds made available under this heading: Provided further, That notwithstanding any other provision of law, up to 1 percent of the funds under this heading shall be available for administrative expenses and program management oversight and shall remain available for obligation until September 30, 2012: Provided further, That the preceding proviso shall apply in lieu of the provisions in section 1106 of this Act.

Capital Investment Grants

For an additional amount for Capital Investment Grants, as authorized under section 5338(c)(4) of title 49, United States Code, and allocated under section 5309(m)(2)(A) of such title, to enable the Secretary of Transportation to make discretionary grants as authorized by section 5309(d) and (e) of such title, $1,000,000,000 (increased by $1,500,000,000): Provided, That such amount shall be allocated without regard to the limitation under section 5309(m)(2)(A)(i): Provided further, That in selecting projects to be funded, priority shall be given to projects that are currently in construction or are able to award contracts based on bids within 90 days of enactment of this Act: Provided further, That for purposes of applying section 1104 of this Act to this appropriation, the deadline for grantees to enter into contracts or other binding commitments to make use of not less than 50 percent of the funds awarded shall be 90 days after award: Provided further, That the provisions of section 1101(b) of Public Law 109–59 shall apply to funds made available under this heading: Provided further, That applicable chapter 53 requirements shall apply, except that notwithstanding any other provision of law, up to 1 percent of the funds under this heading shall be available for administrative expenses and program management oversight and shall remain available for obligation until September 30, 2012: Provided further, That the preceding proviso shall apply in lieu of the provisions in section 1106 of this Act.

Department of Housing and Urban Development

Public and Indian Housing

Public Housing Capital Fund

For an additional amount for Public Housing Capital Fund to carry out capital and management activities for public housing agencies, as authorized under section 9 of the United States Housing Act of 1937 (42 U.S.C. 1437g) (the Act), $5,000,000,000: Provided, That the Secretary of Housing and Urban Development shall distribute at least $4,000,000,000 of this amount by the same formula used for amounts made available in fiscal year 2008: Provided further, That public housing authorities shall give priority to capital projects that can award contracts based on bids within 120 days from the date the funds are made available to the public housing authorities: Provided further, That public housing agencies shall give priority consideration to the rehabilitation of vacant rental units: Provided further, That notwithstanding any other provision of the Act or regulations: (1) funding provided herein may not be used for Operating Fund activities pursuant to section 9(g) of the Act; and (2) any restriction of funding to replacement housing uses shall be inapplicable: Provided further, That public housing agencies shall prioritize capital projects underway or already in their 5-year plans: Provided further, That of the amount provided under this heading, the Secretary may obligate up to $1,000,000,000, for competitive grants to public housing authorities for activities including: (1) investments that leverage private sector funding or financing for housing renovations and energy conservation retrofit investments; (2) rehabilitation of units using sustainable materials and methods that improve energy efficiency, reduce energy costs, or preserve and improve units with good access to public transportation or employment centers; (3) increase the availability of affordable rental housing by expediting rehabilitation projects to bring vacant units into use or by filling the capital investment gap for redevelopment or replacement housing projects which have been approved or are otherwise ready to proceed but are stalled due to the inability to obtain anticipated private capital; or (4) address the needs of seniors and persons with disabilities through improvements to housing and related facilities which attract or promote the coordinated delivery of supportive services: Provided further, That the Secretary may waive statutory or regulatory provisions related to the obligation and expenditure of capital funds if necessary to facilitate the timely expenditure of funds (except for requirements related to fair housing, nondiscrimination, labor standards, and the environment).

Elderly, Disabled, and Section 8 Assisted Housing Energy Retrofit

For grants or loans to owners of properties receiving project-based assistance pursuant to section 202 of the Housing Act of 1959 (12 U.S.C. 17012), section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013), or section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f), to accomplish energy retrofit investments, $2,500,000,000: Provided, That such loans or grants shall be provided through the Office of Affordable Housing Preservation of the Department of Housing and Urban Development, on such terms and conditions as the Secretary of Housing and Urban Development deems appropriate: Provided further, That eligible owners must have at least a satisfactory management review rating, be in substantial compliance with applicable performance standards and legal requirements, and commit to an additional period of affordability determined by the Secretary: Provided further, That the Secretary shall undertake appropriate underwriting and oversight with respect to such transactions: Provided further, That the Secretary may set aside funds made available under this heading for an efficiency incentive payable upon satisfactory completion of energy retrofit investments, and may provide additional incentives if such investments resulted in extraordinary job creation for low-income and very low-income persons: Provided further, that of the funds provided under this heading, 1 percent shall be available only for staffing, training, technical assistance, technology, monitoring, research and evaluation activities.

Native American Housing Block Grants

For an additional amount for “Native American Housing Block Grants”, as authorized under title I of the Native American Housing Assistance and Self-Determination Act of 1996 (NAHASDA) (25 U.S.C. 4111 et seq.), $500,000,000: Provided, That $250,000,000 of the amount appropriated under this heading shall be distributed according to the same funding formula used in fiscal year 2008: Provided further, That in selecting projects to be funded, recipients shall give priority to projects that can award contracts based on bids within 120 days from the date that funds are available to the recipients: Provided further, That in allocating the funds appropriated under this heading, the Secretary of Housing and Urban Development shall not require an additional action plan from grantees: Provided further, That the Secretary may obligate $250,000,000 of the amount appropriated under this heading for competitive grants to eligible entities that apply for funds as authorized under NAHASDA: Provided further, That in awarding competitive funds, the Secretary shall give priority to projects that will spur construction and rehabilitation and will create employment opportunities for low-income and unemployed persons.

Community Planning and Development

Community Development Fund

For an additional amount for Community Development Fund $1,000,000,000, to carry out the community development block grant program under title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.): Provided, That the amount appropriated in this paragraph shall be distributed according to the same funding formula used in fiscal year 2008: Provided further, That in allocating the funds appropriated in this paragraph, the Secretary of Housing and Urban Development shall not require an additional action plan from grantees: Provided further, That in selecting projects to be funded, recipients shall give priority to projects that can award contracts based on bids within 120 days from the date the funds are made available to the recipients; Provided further, That in administering funds provided in this paragraph, the Secretary may waive any provision of any statute or regulation that the Secretary administers in connection with the obligation by the Secretary or the use by the recipient of these funds (except for requirements related to fair housing, nondiscrimination, labor standards, and the environment), upon a finding that such waiver is required to facilitate the timely use of such funds and would not be inconsistent with the overall purpose of the statute.

For a further additional amount for Community Development Fund, $4,190,000,000, to be used for neighborhood stabilization activities related to emergency assistance for the redevelopment of abandoned and foreclosed homes as authorized under division B, title III of the Housing and Economic Recovery Act of 2008 (Public Law 110–289), of which—

(1)

not less than $3,440,000,000 shall be allocated by a competition for which eligible entities shall be States, units of general local government, and nonprofit entities or consortia of nonprofit entities: Provided, That the award criteria for such competition shall include grantee capacity, leveraging potential, targeted impact of foreclosure prevention, and any additional factors determined by the Secretary of Housing and Urban Development: Provided further, that the Secretary may establish a minimum grant size: Providedfurther, That amounts made available under this Section may be used to: (A) establish financing mechanisms for purchase and redevelopment of foreclosed-upon homes and residential properties, including such mechanisms as soft-seconds, loan loss reserves, and shared-equity loans for low- and moderate-income homebuyers; (B) purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon, in order to sell or rent such homes and properties; (C) establish and operate land banks for homes that have been foreclosed upon; (D) demolish foreclosed properties that have become blighted structures; and (E) redevelop demolished or vacant foreclosed properties in order to sell or rent such properties; and

(2)

up to $750,000,000 shall be awarded by competition to nonprofit entities or consortia of nonprofit entities to provide community stabilization assistance by: (A) accelerating state and local government and nonprofit productivity; (B) increasing the scale and efficiency of property transfers of foreclosed and vacant residential properties from financial institutions and government entities to qualified local housing providers in order to return the properties to productive affordable housing use; (C) building industry and property management capacity; and (D) partnering with private sector real estate developers and contractors and leveraging private sector capital: Provided further, That such community stabilization assistance shall be provided primarily in States and areas with high rates of defaults and foreclosures to support the acquisition, rehabilitation and property management of single-family and multi-family homes and to work in partnership with the private sector real estate industry and to leverage available private and public funds for those purposes: Provided further, That for purposes of this paragraph qualified local housing providers shall be nonprofit organizations with demonstrated capabilities in real estate development or acquisition and rehabilitation or property management of single- or multi-family homes, or local or state governments or instrumentalities of such governments: Provided further, That qualified local housing providers shall be expected to utilize and leverage additional local nonprofit, governmental, for-profit and private resources:

Provided further, That in the case of any foreclosure on any dwelling or residential real property acquired with any amounts made available under this heading, any successor in interest in such property pursuant to the foreclosure shall assume such interest subject to: (1) the provision by such successor in interest of a notice to vacate to any bona fide tenant at least 90 days before the effective date of such notice; and (2) the rights of any bona fide tenant, as of the date of such notice of foreclosure: (A) under any bona fide lease entered into before the notice of foreclosure to occupy the premises until the end of the remaining term of the lease, except that a successor in interest may terminate a lease effective on the date of sale of the unit to a purchaser who will occupy the unit as a primary residence, subject to the receipt by the tenant of the 90-day notice under this paragraph; or (B) without a lease or with a lease terminable at will under State law, subject to the receipt by the tenant of the 90-day notice under this paragraph, except that nothing in this paragraph shall affect the requirements for termination of any Federal- or State-subsidized tenancy or of any State or local law that provides longer time periods or other additional protections for tenants: Provided further, That, for purposes of this paragraph, a lease or tenancy shall be considered bona fide only if: (1) the mortgagor under the contract is not the tenant; (2) the lease or tenancy was the result of an arms-length transaction; and (3) the lease or tenancy requires the receipt of rent that is not substantially less than fair market rent for the property: Provided further, That the recipient of any grant or loan from amounts made available under this heading may not refuse to lease a dwelling unit in housing assisted with such loan or grant to a holder of a voucher or certificate of eligibility under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f) because of the status of the prospective tenant as such a holder: Provided further, That in the case of any qualified foreclosed housing for which funds made available under this heading are used and in which a recipient of assistance under section 8(o) of the U.S. Housing Act of 1937 resides at the time of acquisition or financing, the owner and any successor in interest shall be subject to the lease and to the housing assistance payments contract for the occupied unit: Provided further, That vacating the property prior to sale shall not constitute good cause for termination of the tenancy unless the property is unmarketable while occupied or unless the owner or subsequent purchaser desires the unit for personal or family use: Provided further, That this paragraph shall not preempt any State or local law that provides more protection for tenants: Provided further, That amounts made available under this heading may be used for the costs of demolishing foreclosed housing that is deteriorated or unsafe: Provided further, That the amount for demolition of such housing may not exceed 10 percent of amounts allocated under this paragraph to States and units of general local government: Provided further, That no amounts from a grant made under this paragraph may be used to demolish any public housing (as such term is defined in section 3 of the United States Housing Act of 1937 (42 U.S.C. 1437a)): Provided further, That section 2301(d)(4) of the Housing and Economic Recovery Act of 2008 (Public Law 110–289) is repealed.

HOME Investment Partnerships Program

For an additional amount for HOME Investment Partnerships Program as authorized under Title II of the Cranston-Gonzalez National Affordable Housing Act (the Act), $1,500,000,000: Provided, That the amount appropriated under this heading shall be distributed according to the same funding formula used in fiscal year 2008: Provided further, That the Secretary of Housing and Urban Development may waive statutory or regulatory provisions related to the obligation of such funds if necessary to facilitate the timely expenditure of funds (except for requirements related to fair housing, nondiscrimination, labor standards, and the environment): Provided further, That in selecting projects to be funded, recipients shall give priority to projects that can award contracts based on bids within 120 days from the date that funds are available to the recipients.

Self-Help and Assisted Homeownership Opportunity Program

For an additional amount for Self-Help and Assisted Homeownership Opportunity Program, as authorized under section 11 of the Housing Opportunity Program Extension Act of 1996, $10,000,000: Provided, That in awarding competitive grant funds, the Secretary of Housing and Urban Development shall give priority to the provision and rehabilitation of sustainable, affordable single and multifamily units in low-income, high-need rural areas: Provided further, That in selecting projects to be funded, grantees shall give priority to projects that can award contracts based on bids within 120 days from the date the funds are made available to the grantee.

Homeless Assistance Grants

For an additional amount for Homeless Assistance Grants, for the emergency shelter grants program as authorized under subtitle B of tile IV of the McKinney-Vento Homeless Assistance Act, $1,500,000,000: Provided, That in addition to homeless prevention activities specified in the emergency shelter grant program, funds provided under this heading may be used for the provision of short-term or medium-term rental assistance; housing relocation and stabilization services including housing search, mediation or outreach to property owners, legal services, credit repair, resolution of security or utility deposits, utility payments, rental assistance for a final month at a location, and moving costs assistance; or other appropriate homelessness prevention activities; Provided further, That these funds shall be allocated pursuant to the formula authorized by section 413 of such Act: Provided further, That the Secretary of Housing and Urban Development may waive statutory or regulatory provisions related to the obligation and use of emergency shelter grant funds necessary to facilitate the timely expenditure of funds.

Office of Healthy Homes and Lead Hazard Control

Lead Hazard Reduction

For an additional amount for Lead Hazard Reduction, for the Lead Hazard Reduction Program as authorized by section 1011 of the Residential Lead-Based Paint Hazard Reduction Act of 1992, $100,000,000: Provided, That for purposes of environmental review, pursuant to the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and other provisions of law that further the purposes of such Act, a grant under the Healthy Homes Initiative, Operation Lead Elimination Action Plan (LEAP), or the Lead Technical Studies program under this heading or under prior appropriations Acts for such purposes under this heading, shall be considered to be funds for a special project for purposes of section 305(e) of the Multifamily Housing Property Disposition Reform Act of 1994: Provided further, That of the total amount made available under this heading, $30,000,000 shall be made available on a competitive basis for areas with the highest lead paint abatement needs.

General Provisions, This Title

12001.

Maintenance of effort and reporting requirements to ensure transparency and accountability

(a)

Maintenance of effort

Not later than 30 days after the date of enactment of this Act, for each amount that is distributed to a State or agency thereof from an appropriation in this Act for a covered program, the Governor of the State shall certify that the State will maintain its effort with regard to State funding for the types of projects that are funded by the appropriation. As part of this certification, the Governor shall submit to the covered agency a statement identifying the amount of funds the State planned to expend as of October 1, 2008, from non-Federal sources in the period beginning on the date of enactment of this Act through September 30, 2010, for the types of projects that are funded by the appropriation.

(b)

Failure to maintain effort

If a Governor is unable to certify that Federal funds will not supplant non-Federal funds pursuant to subsection (a), then the Federal funds apportioned to that State under this Act that will supplant non-Federal funds will be recaptured by the appropriate Federal agency and redistributed to States or agencies that can spend the Federal funds without supplanting non-Federal funds.

(c)

Periodic reports

(1)

In general

Notwithstanding any other provision of law, each grant recipient shall submit to the covered agency from which they received funding periodic reports on the use of the funds appropriated in this Act for covered programs. Such reports shall be collected and compiled by the covered agency and transmitted to Congress.

(2)

Contents of reports

For amounts received under each covered program by a grant recipient under this Act, the grant recipient shall include in the periodic reports information tracking—

(A)

the amount of Federal funds appropriated, allocated, obligated, and outlayed under the appropriation;

(B)

the number of projects that have been put out to bid under the appropriation and the amount of Federal funds associated with such projects;

(C)

the number of projects for which contracts have been awarded under the appropriation and the amount of Federal funds associated with such contracts;

(D)

the number of projects for which work has begun under such contracts and the amount of Federal funds associated with such contracts;

(E)

the number of projects for which work has been completed under such contracts and the amount of Federal funds associated with such contracts;

(F)

the number of jobs created or sustained by the Federal funds provided for projects under the appropriation, including information on job sectors and pay levels; and

(G)

for each covered program report information tracking the actual aggregate expenditures by each grant recipient from non-Federal sources for projects eligible for funding under the program during the period beginning on the date of enactment of this Act through September 30, 2010, as compared to the level of such expenditures that were planned to occur during such period as of the date of enactment of this Act.

(3)

Timing of reports

Each grant recipient shall submit the first of the periodic reports required under this subsection not later than 30 days after the date of enactment of this Act and shall submit updated reports not later than 60 days, 120 days, 180 days, 1 year, and 3 years after such date of enactment.

(d)

Definitions

In this section, the following definitions apply:

(1)

Covered agency

The term covered agency means the Federal Aviation Administration, the Federal Highway Administration, the Federal Railroad Administration, and the Federal Transit Administration of the Department of Transportation.

(2)

Covered program

The term covered program means funds appropriated in this Act for Grants-in-Aid for Airports to the Federal Aviation Administration; for Highway Infrastructure Investment to the Federal Highway Administration; for Capital Assistance for Intercity Passenger Rail Service to the Federal Railroad Administration; for Transit Capital Assistance, Fixed Guideway Infrastructure Investment, and Capital Investment Grants to the Federal Transit Administration.

(3)

Grant recipient

The term grant recipient means a State or other recipient of assistance provided under a covered program in this Act. Such term does not include a Federal department or agency.

12002.

FHA loan limits for 2009

(a)

Loan limit floor based on 2008 levels

For mortgages for which the mortgagee issues credit approval for the borrower during calendar year 2009, if the dollar amount limitation on the principal obligation of a mortgage determined under section 203(b)(2) of the National Housing Act (12 U.S.C. 1709(b)(2)) for any size residence for any area is less than such dollar amount limitation that was in effect for such size residence for such area for 2008 pursuant to section 202 of the Economic Stimulus Act of 2008 (Public Law 110–185; 122 Stat. 620), notwithstanding any other provision of law, the maximum dollar amount limitation on the principal obligation of a mortgage for such size residence for such area for purposes of such section 203(b)(2) shall be considered (except for purposes of section 255(g) of such Act (12 U.S.C. 1715z–20(g))) to be such dollar amount limitation in effect for such size residence for such area for 2008.

(b)

Discretionary authority for sub-areas

Notwithstanding any other provision of law, if the Secretary of Housing and Urban Development determines, for any geographic area that is smaller than an area for which dollar amount limitations on the principal obligation of a mortgage are determined under section 203(b)(2) of the National Housing Act, that a higher such maximum dollar amount limitation is warranted for any particular size or sizes of residences in such sub-area by higher median home prices in such sub-area, the Secretary may, for mortgages for which the mortgagee issues credit approval for the borrower during calendar year 2009, increase the maximum dollar amount limitation for such size or sizes of residences for such sub-area that is otherwise in effect (including pursuant to subsection (a) of this section), but in no case to an amount that exceeds the amount specified in section 202(a)(2) of the Economic Stimulus Act of 2008.

12003.

GSE conforming loan limits for 2009

(a)

Loan limit floor based on 2008 levels

For mortgages originated during calendar year 2009, if the limitation on the maximum original principal obligation of a mortgage that may purchased by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation determined under section 302(b)(2) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1717(b)(2)) or section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1754(a)(2)), respectively, for any size residence for any area is less than such maximum original principal obligation limitation that was in effect for such size residence for such area for 2008 pursuant to section 201 of the Economic Stimulus Act of 2008 (Public Law 110–185; 122 Stat. 619), notwithstanding any other provision of law, the limitation on the maximum original principal obligation of a mortgage for such Association and Corporation for such size residence for such area shall be such maximum limitation in effect for such size residence for such area for 2008.

(b)

Discretionary authority for sub-areas

Notwithstanding any other provision of law, if the Director of the Federal Housing Finance Agency determines, for any geographic area that is smaller than an area for which limitations on the maximum original principal obligation of a mortgage are determined for the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, that a higher such maximum original principal obligation limitation is warranted for any particular size or sizes of residences in such sub-area by higher median home prices in such sub-area, the Director may, for mortgages originated during 2009, increase the maximum original principal obligation limitation for such size or sizes of residences for such sub-area that is otherwise in effect (including pursuant to subsection (a) of this section) for such Association and Corporation, but in no case to an amount that exceeds the amount specified in the matter following the comma in section 201(a)(1)(B) of the Economic Stimulus Act of 2008.

12004.

FHA reverse mortgage loan limits for 2009

For mortgages for which the mortgagee issues credit approval for the borrower during calendar year 2009, the second sentence of section 255(g) of the National Housing Act (12 U.S.C. 171520(g)) shall be considered to require that in no case may the benefits of insurance under such section 255 exceed 150 percent of the maximum dollar amount in effect under the sixth sentence of section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)).

XIII

State Fiscal Stabilization Fund

Department of Education

State Fiscal Stabilization Fund

For necessary expenses for a State Fiscal Stabilization Fund, $79,000,000,000, which shall be administered by the Department of Education, of which $39,500,000,000 shall become available on July 1, 2009, and remain available through September 30, 2010, and $39,500,000,000 shall become available on July 1, 2010, and remain available through September 30, 2011: Provided, That the provisions of section 1103 of this Act shall not apply to the funds reserved under section 13001(c) of this title: Provided further, That the amount made available under section 13001(b) of this title for administration and oversight shall take the place of the set-aside under section 1106 of this Act.

General Provisions, This Title

13001.

Allocations

(a)

Outlying areas

From each year’s appropriation to carry out this title, the Secretary of Education shall first allocate one half of 1 percent to the outlying areas on the basis of their respective needs, as determined by the Secretary, for activities consistent with this title under such terms and conditions as the Secretary may determine.

(b)

Administration and oversight

The Secretary may, in addition, reserve up to $12,500,000 each year for administration and oversight of this title, including for program evaluation.

(c)

Reservation for additional programs

After reserving funds under subsections (a) and (b), the Secretary shall reserve $7,500,000,000 each year for grants under sections 13006 and 13007.

(d)

State allocations

After carrying out subsections (a), (b), and (c), the Secretary shall allocate the remaining funds made available to carry out this title to the States as follows:

(1)

61 percent on the basis of their relative population of individuals aged 5 through 24.

(2)

39 percent on the basis of their relative total population.

(e)

State grants

From funds allocated under subsection (d), the Secretary shall make grants to the Governor of each State.

(f)

Reallocation

The Governor shall return to the Secretary any funds received under subsection (e) that the Governor does not obligate within one year of receiving a grant, and the Secretary shall reallocate such funds to the remaining States in accordance with subsection (d).

13002.

State uses of funds

(a)

Education fund

(1)

In general

For each fiscal year, the Governor shall use at least 61 percent of the State’s allocation under section 13001 for the support of elementary, secondary, and postsecondary education.

(2)

Restoring 2008 State support for education

(A)

In general

The Governor shall first use the funds described in paragraph (1)—

(i)

to provide the amount of funds, through the State’s principal elementary and secondary funding formula, that is needed to restore State support for elementary and secondary education to the fiscal year 2008 level; and

(ii)

to provide the amount of funds to public institutions of higher education in the State that is needed to restore State support for postsecondary education to the fiscal year 2008 level.

(B)

Shortfall

If the Governor determines that the amount of funds available under paragraph (1) is insufficient to restore State support for education to the levels described in clauses (i) and (ii) of subparagraph (A), the Governor shall allocate those funds between those clauses in proportion to the relative shortfall in State support for the education sectors described in those clauses.

(3)

Subgrants to improve basic programs operated by local educational agencies

After carrying out paragraph (2), the Governor shall use any funds remaining under paragraph (1) to provide local educational agencies in the State with subgrants based on their relative shares of funding under part A of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.) for the most recent year for which data are available.

(b)

Other government services

For each fiscal year, the Governor may use up to 39 percent of the State’s allocation under section 1301 for public safety and other government services, which may include assistance for elementary and secondary education and public institutions of higher education.

13003.

Uses of funds by local educational agencies

(a)

In general

A local educational agency that receives funds under this title may use the funds for any activity authorized by the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.) (ESEA), the Individuals with Disabilities Education Act (20 U.S.C. 1400 et seq.) (IDEA), or the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2301 et seq.) (the Perkins Act).

(b)

Prohibition

A local educational agency may not use funds received under this title for capital projects unless authorized by ESEA, IDEA, or the Perkins Act.

13004.

Uses of funds by institutions of higher education

(a)

In general

A public institution of higher education that receives funds under this title shall use the funds for education and general expenditures, and in such a way as to mitigate the need to raise tuition and fees for in-State students.

(b)

Prohibition

An institution of higher education may not use funds received under this title to increase its endowment.

(c)

Additional prohibition

An institution of higher education may not use funds received under this title for construction, renovation, or facility repair.

13005.

State applications

(a)

In general

The Governor of a State desiring to receive an allocation under section 13001 shall submit an annual application at such time, in such manner, and containing such information as the Secretary may reasonably require.

(b)

First year application

In the first of such applications, the Governor shall—

(1)

include the assurances described in subsection (e);

(2)

provide baseline data that demonstrates the State’s current status in each of the areas described in such assurances; and

(3)

describe how the State intends to use its allocation.

(c)

Second year application

In the second year application, the Governor shall—

(1)

include the assurances described in subsection (e); and

(2)

describe how the State intends to use its allocation.

(d)

Incentive grant application

The Governor of a State seeking a grant under section 13006 shall—

(1)

submit an application for consideration;

(2)

describe the status of the State’s progress in each of the areas described in subsection (e), and the strategies the State is employing to help ensure that high-need students in the State continue making progress towards meeting the State’s student academic achievement standards;

(3)

describe how the State would use its grant funding, including how it will allocate the funds to give priority to high-need schools and local educational agencies; and

(4)

include a plan for evaluating its progress in closing achievement gaps.

(e)

Assurances

An application under subsection (b) or (c) shall include the following assurances:

(1)

Maintenance of effort

(A)

Elementary and secondary education

The State will, in each of fiscal years 2009 and 2010, maintain State support for elementary and secondary education at least at the level of such support in fiscal year 2006.

(B)

Higher education

The State will, in each of fiscal years 2009 and 2010, maintain State support for public institutions of higher education (not including support for capital projects or for research and development) at least at the level of such support in fiscal year 2006.

(2)

Achieving equity in teacher distribution

The State will take actions to comply with section 1111(b)(8)(C) of ESEA (20 U.S.C. 6311(b)(8)(C)) in order to address inequities in the distribution of teachers between high-and low-poverty schools, and to ensure that low-income and minority children are not taught at higher rates than other children by inexperienced, unqualified, or out-of-field teachers.

(3)

Improving collection and use of data

The State will establish a longitudinal data system that includes the elements described in section 6401(e)(2)(D) of the America COMPETES Act (20 U.S.C. 9871).

(4)

Assessments

The State—

(A)

will enhance the quality of academic assessments described in section 1111(b)(3) of ESEA (20 U.S.C. 6311(b)(3)) through activities such as those described in section 6112(a) of such Act (20 U.S.C. 7301a(a)); and

(B)

will comply with the requirements of paragraphs 3(C)(ix) and (6) of section 1111(b) of ESEA (20 U.S.C. 6311(b)) and section 612(a)(16) of IDEA (20 U.S.C. 1412(a)(16)) related to the inclusion of children with disabilities and limited English proficient students in State assessments, the development of valid and reliable assessments for those students, and the provision of accommodations that enable their participation in State assessments.

13006.

State incentive grants

(a)

In general

From the total amount reserved under section 13001(c) that is not used for section 13007, the Secretary shall, in fiscal year 2010, make grants to States that have made significant progress in meeting the objectives of paragraphs (2), (3), and (4) of section 13005(e).

(b)

Basis for grants

The Secretary shall determine which States receive grants under this section, and the amount of those grants, on the basis of information provided in State applications under section 13005 and such other criteria as the Secretary determines appropriate.

(c)

Subgrants to local educational agencies

Each State receiving a grant under this section shall use at least 50 percent of the grant to provide local educational agencies in the State with subgrants based on their relative shares of funding under part A of title I of ESEA (20 U.S.C. 6311 et seq.) for the most recent year.

13007.

Innovation fund

(a)

In general

(1)

Program established

From the total amount reserved under section 13001(c), the Secretary may reserve up to $325,000,000 each year to establish an Innovation Fund, which shall consist of academic achievement awards that recognize States, local educational agencies, or schools that meet the requirements described in subsection (b).

(2)

Basis for awards

The Secretary shall make awards to States, local educational agencies, or schools that have made significant gains in closing the achievement gap as described in subsection (b)(1)—

(A)

to allow such States, local educational agencies, and schools to expand their work and serve as models for best practices;

(B)

to allow such States, local educational agencies, and schools to work in partnership with the private sector and the philanthropic community; and

(C)

to identify and document best practices that can be shared, and taken to scale based on demonstrated success.

(b)

Eligibility

To be eligible for such an award, a State, local educational agency, or school shall—

(1)

have significantly closed the achievement gaps between groups of students described in section 1111(b)(2) of ESEA (20 U.S.C. 6311(b)(2));

(2)

have exceeded the State’s annual measurable objectives consistent with such section 1111(b)(2) for 2 or more consecutive years or have demonstrated success in significantly increasing student academic achievement for all groups of students described in such section through another measure, such as measures described in section 1111(c)(2) of ESEA;

(3)

have made significant improvement in other areas, such as graduation rates or increased recruitment and placement of high-quality teachers and school leaders, as demonstrated with meaningful data; and

(4)

demonstrate that they have established partnerships with the private sector, which may include philanthropic organizations, and that the private sector will provide matching funds in order to help bring results to scale.

13008.

State reports

For each year of the program under this title, a State receiving funds under this title shall submit a report to the Secretary, at such time and in such manner as the Secretary may require, that describes—

(1)

the uses of funds provided under this title within the State;

(2)

how the State distributed the funds it received under this title;

(3)

the number of jobs that the Governor estimates were saved or created with funds the State received under this title;

(4)

tax increases that the Governor estimates were averted because of the availability of funds from this title;

(5)

the State’s progress in reducing inequities in the distribution of teachers, in implementing a State student longitudinal data system, and in developing and implementing valid and reliable assessments for limited English proficient students and children with disabilities;

(6)

the tuition and fee increases for in-State students imposed by public institutions of higher education in the State during the period of availability of funds under this title, and a description of any actions taken by the State to limit those increases; and

(7)

the extent to which public institutions of higher education maintained, increased, or decreased enrollment of in-State students, including students eligible for Pell Grants or other need-based financial assistance.

13009.

Evaluation

The Comptroller General of the United States shall conduct evaluations of the programs under sections 13006 and 13007 which shall include, but not be limited to, the criteria used for the awards made, the States selected for awards, award amounts, how each State used the award received, and the impact of this funding on the progress made toward closing achievement gaps.

13010.

Secretary’s report to Congress

The Secretary shall submit a report to the Committee on Education and Labor of the House of Representatives, the Committee on Health, Education, Labor, and Pensions of the Senate, and the Committees on Appropriations of the House of Representatives and of the Senate, not less than 6 months following the submission of State reports, that evaluates the information provided in the State reports under section 13008.

13011.

Prohibition on provision of certain assistance

No recipient of funds under this title shall use such funds to provide financial assistance to students to attend private elementary or secondary schools.

13012.

Definitions

Except as otherwise provided in this title, as used in this title—

(1)

the term “institution of higher education” has the meaning given such term in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001);

(2)

the term Secretary means the Secretary of Education;

(3)

the term “State” means each of the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico; and

(4)

any other term used in this title that is defined in section 9101 of ESEA (20 U.S.C. 7801) shall have the meaning given the term in that section.

B

Other Provisions

I

Tax Provisions

1000.

Short title, etc

(a)

Short title

This title may be cited as the American Recovery and Reinvestment Tax Act of 2009.

(b)

Reference

Except as otherwise expressly provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.

(c)

Table of contents

The table of contents for 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.

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 depreciable 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

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.

A

Making work pay

1001.

Making work pay credit

(a)

In general

Subpart C of part IV of subchapter A of chapter 1 is amended by inserting after section 36 the following new section:

36A.

Making work pay credit

(a)

Allowance of credit

In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the lesser of—

(1)

6.2 percent of earned income of the taxpayer, or

(2)

$500 ($1,000 in the case of a joint return).

(b)

Limitation based on modified adjusted gross income

(1)

In general

The amount allowable as a credit under subsection (a) (determined without regard to this paragraph) for the taxable year shall be reduced (but not below zero) by 2 percent of so much of the taxpayer’s modified adjusted gross income as exceeds $75,000 ($150,000 in the case of a joint return).

(2)

Modified adjusted gross income

For purposes of subparagraph (A), the term modified adjusted gross income means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933.

(c)

Definitions

For purposes of this section—

(1)

Eligible individual

The term eligible individual means any individual other than—

(A)

any nonresident alien individual,

(B)

any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, and

(C)

an estate or trust.

Such term shall not include any individual unless the requirements of section 32(c)(1)(E) are met with respect to such individual.
(2)

Earned income

The term earned income has the meaning given such term by section 32(c)(2), except that such term shall not include net earnings from self-employment which are not taken into account in computing taxable income. For purposes of the preceding sentence, any amount excluded from gross income by reason of section 112 shall be treated as earned income which is taken into account in computing taxable income for the taxable year.

(d)

Termination

This section shall not apply to taxable years beginning after December 31, 2010.

.

(b)

Treatment of Possessions

(1)

Payments to possessions

(A)

Mirror code possession

The Secretary of the Treasury shall pay to each possession of the United States with a mirror code tax system amounts equal to the loss to that possession by reason of the amendments made by this section with respect to taxable years beginning in 2009 and 2010. Such amounts shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession.

(B)

Other possessions

The Secretary of the Treasury shall pay to each possession of the United States which does not have a mirror code tax system amounts estimated by the Secretary of the Treasury as being equal to the aggregate benefits that would have been provided to residents of such possession by reason of the amendments made by this section for taxable years beginning in 2009 and 2010 if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply with respect to any possession of the United States unless such possession has a plan, which has been approved by the Secretary of the Treasury, under which such possession will promptly distribute such payments to the residents of such possession.

(2)

Coordination with credit allowed against United States income taxes

No credit shall be allowed against United States income taxes for any taxable year under section 36A of the Internal Revenue Code of 1986 (as added by this section) to any person—

(A)

to whom a credit is allowed against taxes imposed by the possession by reason of the amendments made by this section for such taxable year, or

(B)

who is eligible for a payment under a plan described in paragraph (1)(B) with respect to such taxable year.

(3)

Definitions and special rules

(A)

Possession of the United States

For purposes of this subsection, the term possession of the United States includes the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands.

(B)

Mirror code tax system

For purposes of this subsection, the term mirror code tax system means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States.

(C)

Treatment of payments

For purposes of section 1324(b)(2) of title 31, United States Code, the payments under this subsection shall be treated in the same manner as a refund due from the credit allowed under section 36A of the Internal Revenue Code of 1986 (as added by this section).

(c)

Refunds disregarded in the administration of Federal Programs and Federally assisted programs

Any credit or refund allowed or made to any individual by reason of section 36A of the Internal Revenue Code of 1986 (as added by this section) or by reason of subsection (b) of this section shall not be taken into account as income and shall not be taken into account as resources for the month of receipt and the following 2 months, for purposes of determining the eligibility of such individual or any other individual for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds.

(d)

Conforming amendments

(1)

Section 6211(b)(4)(A) is amended by inserting 36A, after 36,.

(2)

Section 1324(b)(2) of title 31, United States Code, is amended by inserting 36A, after 36,.

(3)

The table of sections for subpart C of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 36 the following new item:

Sec. 36A. Making work pay credit.

.

(e)

Effective date

This section shall apply to taxable years beginning after December 31, 2008.

B

Additional tax relief for families with children

1101.

Increase in earned income tax credit

(a)

In general

Subsection (b) of section 32 is amended by adding at the end the following new paragraph:

(3)

Special rules for 2009 and 2010

In the case of any taxable year beginning in 2009 or 2010—

(A)

Increased credit percentage for 3 or more qualifying children

In the case of a taxpayer with 3 or more qualifying children, the credit percentage is 45 percent.

(B)

Reduction of marriage penalty

(i)

In general

The dollar amount in effect under paragraph (2)(B) shall be $5,000.

(ii)

Inflation adjustment

In the case of any taxable year beginning in 2010, the $5,000 amount in clause (i) shall be increased by an amount equal to—

(I)

such dollar amount, multiplied by

(II)

the cost of living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins determined by substituting calendar year 2008 for calendar year 1992 in subparagraph (B) thereof.

(iii)

Rounding

Subparagraph (A) of subsection (j)(2) shall apply after taking into account any increase under clause (ii).

.

(b)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2008.

1102.

Increase of refundable portion of child credit

(a)

In general

Paragraph (4) of section 24(d) is amended to read as follows:

(4)

Special rule for 2009 and 2010

Notwithstanding paragraph (3), in the case of any taxable year beginning in 2009 or 2010, the dollar amount in effect for such taxable year under paragraph (1)(B)(i) shall be zero.

.

(b)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2008.

C

American opportunity tax credit

1201.

American opportunity tax credit

(a)

In general

Section 25A (relating to Hope scholarship credit) is amended by redesignating subsection (i) as subsection (j) and by inserting after subsection (h) the following new subsection:

(i)

American opportunity tax credit

In the case of any taxable year beginning in 2009 or 2010—

(1)

Increase in credit

The Hope Scholarship Credit shall be an amount equal to the sum of—

(A)

100 percent of so much of the qualified tuition and related expenses paid by the taxpayer during the taxable year (for education furnished to the eligible student during any academic period beginning in such taxable year) as does not exceed $2,000, plus

(B)

25 percent of such expenses so paid as exceeds $2,000 but does not exceed $4,000.

(2)

Credit allowed for first 4 years of post-secondary education

Subparagraphs (A) and (C) of subsection (b)(2) shall be applied by substituting 4 for 2.

(3)

Qualified tuition and related expenses to include required course materials

Subsection (f)(1)(A) shall be applied by substituting tuition, fees, and course materials for tuition and fees.

(4)

Increase in AGI limits for Hope scholarship credit

In lieu of applying subsection (d) with respect to the Hope Scholarship Credit, such credit (determined without regard to this paragraph) shall be reduced (but not below zero) by the amount which bears the same ratio to such credit (as so determined) as—

(A)

the excess of—

(i)

the taxpayer’s modified adjusted gross income (as defined in subsection (d)(3)) for such taxable year, over

(ii)

$80,000 ($160,000 in the case of a joint return), bears to

(B)

$10,000 ($20,000 in the case of a joint return).

(5)

Credit allowed against alternative minimum tax

In the case of a taxable year to which section 26(a)(2) does not apply, so much of the credit allowed under subsection (a) as is attributable to the Hope Scholarship Credit shall not exceed the excess of—

(A)

the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over

(B)

the sum of the credits allowable under this subpart (other than this subsection and sections 23, 25D, and 30D) and section 27 for the taxable year.

Any reference in this section or section 24, 25, 26, 25B, 904, or 1400C to a credit allowable under this subsection shall be treated as a reference to so much of the credit allowable under subsection (a) as is attributable to the Hope Scholarship Credit.
(6)

Portion of credit made refundable

40 percent of so much of the credit allowed under subsection (a) as is attributable to the Hope Scholarship Credit (determined after application of paragraph (4) and without regard to this paragraph and section 26(a)(2) or paragraph (5), as the case may be) shall be treated as a credit allowable under subpart C (and not allowed under subsection (a)). The preceding sentence shall not apply to any taxpayer for any taxable year if such taxpayer is a child to whom subsection (g) of section 1 applies for such taxable year.

(7)

Coordination with Midwestern disaster area benefits

In the case of a taxpayer with respect to whom section 702(a)(1)(B) of the Heartland Disaster Tax Relief Act of 2008 applies for any taxable year, such taxpayer may elect to waive the application of this subsection to such taxpayer for such taxable year.

.

(b)

Conforming amendments

(1)

Section 24(b)(3)(B) is amended by inserting 25A(i), after 23,.

(2)

Section 25(e)(1)(C)(ii) is amended by inserting 25A(i), after 24,.

(3)

Section 26(a)(1) is amended by inserting 25A(i), after 24,.

(4)

Section 25B(g)(2) is amended by inserting 25A(i), after 23,.

(5)

Section 904(i) is amended by inserting 25A(i), after 24,.

(6)

Section 1400C(d)(2) is amended by inserting 25A(i), after 24,.

(7)

Section 1324(b)(2) of title 31, United States Code, is amended by inserting 25A, before 35.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2008.

(d)

Application of EGTRRA sunset

The amendment made by subsection (b)(1) shall be subject to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 in the same manner as the provision of such Act to which such amendment relates.

(e)

Treasury studies regarding education incentives

(1)

Study regarding coordination with non-tax educational incentives

The Secretary of the Treasury, or the Secretary’s delegate, shall study how to coordinate the credit allowed under section 25A of the Internal Revenue Code of 1986 with the Federal Pell Grant program under section 401 of the Higher Education Act of 1965.

(2)

Study regarding imposition of community service requirements

The Secretary of the Treasury, or the Secretary’s delegate, shall study the feasibility of requiring students to perform community service as a condition of taking their tuition and related expenses into account under section 25A of the Internal Revenue Code of 1986.

(3)

Report

Not later than 1 year after the date of the enactment of this Act, the Secretary of the Treasury, or the Secretary’s delegate, shall report to Congress on the results of the studies conducted under this paragraph.

D

Housing incentives

1301.

Waiver of requirement to repay first-time homebuyer credit

(a)

In general

Paragraph (4) of section 36(f) is amended by adding at the end the following new subparagraph:

(D)

Waiver of recapture for purchases in 2009

In the case of any credit allowed with respect to the purchase of a principal residence after December 31, 2008, and before July 1, 2009—

(i)

paragraph (1) shall not apply, and

(ii)

paragraph (2) shall apply only if the disposition or cessation described in paragraph (2) with respect to such residence occurs during the 36-month period beginning on the date of the purchase of such residence by the taxpayer.

.

(b)

Conforming amendment

Subsection (g) of section 36 is amended by striking subsection (c) and inserting subsections (c) and (f)(4)(D).

(c)

Effective date

The amendments made by this section shall apply to residences purchased after December 31, 2008.

1302.

Coordination of low-income housing credit and low-income housing grants

Subsection (i) of section 42 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(9)

Coordination with low-income housing grants

(A)

Reduction in State housing credit ceiling for low-income housing grants received in 2009

For purposes of this section, the amounts described in clauses (i) through (iv) of subsection (h)(3)(C) with respect to any State for 2009 shall each be reduced by so much of such amount as is taken into account in determining the amount of any grant to such State under section 1711 of the American Recovery and Reinvestment Tax Act of 2009.

(B)

Special rule for basis

Basis of a qualified low-income building shall not be reduced by the amount of any grant described in subparagraph (A).

.

E

Tax incentives for business

1

Temporary investment incentives

1401.

Special allowance for certain property acquired during 2009

(a)

In general

Paragraph (2) of section 168(k) is amended—

(1)

by striking January 1, 2010 and inserting January 1, 2011, and

(2)

by striking January 1, 2009 each place it appears and inserting January 1, 2010.

(b)

Conforming amendments

(1)

The heading for subsection (k) of section 168 is amended by striking January 1, 2009 and inserting January 1, 2010.

(2)

The heading for clause (ii) of section 168(k)(2)(B) is amended by striking pre-January 1, 2009 and inserting pre-January 1, 2010.

(3)

Subparagraph (D) of section 168(k)(4) is amended—

(A)

by striking and at the end of clause (i),

(B)

by redesignating clause (ii) as clause (v), and

(C)

by inserting after clause (i) the following new clauses:

(ii)

April 1, 2008 shall be substituted for January 1, 2008 in subparagraph (A)(iii)(I) thereof,

(iii)

January 1, 2009 shall be substituted for January 1, 2010 each place it appears,

(iv)

January 1, 2010 shall be substituted for January 1, 2011 in subparagraph (A)(iv) thereof, and

.

(4)

Subparagraph (B) of section 168(l)(5) is amended by striking January 1, 2009 and inserting January 1, 2010.

(5)

Subparagraph (B) of section 1400N(d)(3) is amended by striking January 1, 2009 and inserting January 1, 2010.

(c)

Effective dates

(1)

In general

Except as provided in paragraph (2), the amendments made by this section shall apply to property placed in service after December 31, 2008, in taxable years ending after such date.

(2)

Technical amendment

Section 168(k)(4)(D)(ii) of the Internal Revenue Code of 1986, as added by subsection (b)(3)(C), shall apply to taxable years ending after March 31, 2008.

1402.

Temporary increase in limitations on expensing of certain depreciable business assets

(a)

In general

Paragraph (7) of section 179(b) is amended—

(1)

by striking 2008 and inserting 2008, or 2009, and

(2)

by striking 2008 in the heading thereof and inserting 2008, and 2009.

(b)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2008.

2

5-year carryback of operating losses

1411.

5-year carryback of operating losses

(a)

In general

Subparagraph (H) of section 172(b)(1) is amended to read as follows:

(H)

Carryback for 2008 and 2009 net operating losses

(i)

In general

In the case of an applicable 2008 or 2009 net operating loss with respect to which the taxpayer has elected the application of this subparagraph—

(I)

such net operating loss shall be reduced by 10 percent of such loss (determined without regard to this subparagraph),

(II)

subparagraph (A)(i) shall be applied by substituting any whole number elected by the taxpayer which is more than 2 and less than 6 for 2,

(III)

subparagraph (E)(ii) shall be applied by substituting the whole number which is one less than the whole number substituted under subclause (II) for 2, and

(IV)

subparagraph (F) shall not apply.

(ii)

Applicable 2008 or 2009 net operating loss

For purposes of this subparagraph, the term applicable 2008 or 2009 net operating loss means—

(I)

the taxpayer’s net operating loss for any taxable year ending in 2008 or 2009, or

(II)

if the taxpayer elects to have this subclause apply in lieu of subclause (I), the taxpayer’s net operating loss for any taxable year beginning in 2008 or 2009.

(iii)

Election

Any election under this subparagraph shall be made in such manner as may be prescribed by the Secretary, and shall be made by the due date (including extension of time) for filing the taxpayer’s return for the taxable year of the net operating loss. Any such election, once made, shall be irrevocable.

(iv)

Coordination with alternative tax net operating loss deduction

In the case of a taxpayer who elects to have clause (ii)(II) apply, section 56(d)(1)(A)(ii) shall be applied by substituting ending during 2001 or 2002 or beginning during 2008 or 2009 for ending during 2001, 2002, 2008, or 2009.

.

(b)

Alternative tax net operating loss deduction

Subclause (I) of section 56(d)(1)(A)(ii) is amended to read as follows:

(I)

the amount of such deduction attributable to the sum of carrybacks of net operating losses from taxable years ending during 2001, 2002, 2008, or 2009 and carryovers of net operating losses to such taxable years, or

.

(c)

Loss from operations of life insurance companies

Subsection (b) of section 810 is amended by adding at the end the following new paragraph:

(4)

Carryback for 2008 and 2009 losses

(A)

In general

In the case of an applicable 2008 or 2009 loss from operations with respect to which the taxpayer has elected the application of this paragraph—

(i)

such loss from operations shall be reduced by 10 percent of such loss (determined without regard to this paragraph), and

(ii)

paragraph (1)(A) shall be applied, at the election of the taxpayer, by substituting 5 or 4 for 3.

(B)

Applicable 2008 or 2009 loss from operations

For purposes of this paragraph, the term applicable 2008 or 2009 loss from operations means—

(i)

the taxpayer’s loss from operations for any taxable year ending in 2008 or 2009, or

(ii)

if the taxpayer elects to have this clause apply in lieu of clause (i), the taxpayer’s loss from operations for any taxable year beginning in 2008 or 2009.

(C)

Election

Any election under this paragraph shall be made in such manner as may be prescribed by the Secretary, and shall be made by the due date (including extension of time) for filing the taxpayer’s return for the taxable year of the loss from operations. Any such election, once made, shall be irrevocable.

(D)

Coordination with alternative tax net operating loss deduction

In the case of a taxpayer who elects to have subparagraph (B)(ii) apply, section 56(d)(1)(A)(ii) shall be applied by substituting ending during 2001 or 2002 or beginning during 2008 or 2009 for ending during 2001, 2002, 2008, or 2009.

.

(d)

Conforming amendment

Section 172 is amended by striking subsection (k).

(e)

Effective date

(1)

In general

Except as otherwise provided in this subsection, the amendments made by this section shall apply to net operating losses arising in taxable years ending after December 31, 2007.

(2)

Alternative tax net operating loss deduction

The amendment made by subsection (b) shall apply to taxable years ending after 1997.

(3)

Loss from operations of life insurance companies

The amendment made by subsection (d) shall apply to losses from operations arising in taxable years ending after December 31, 2007.

(4)

Transitional rule

In the case of a net operating loss (or, in the case of a life insurance company, a loss from operations) for a taxable year ending before the date of the enactment of this Act—

(A)

any election made under section 172(b)(3) or 810(b)(3) of the Internal Revenue Code of 1986 with respect to such loss may (notwithstanding such section) be revoked before the applicable date,

(B)

any election made under section 172(b)(1)(H) or 810(b)(4) of such Code with respect to such loss shall (notwithstanding such section) be treated as timely made if made before the applicable date, and

(C)

any application under section 6411(a) of such Code with respect to such loss shall be treated as timely filed if filed before the applicable date.

For purposes of this paragraph, the term applicable date means the date which is 60 days after the date of the enactment of this Act.
1412.

Exception for TARP recipients

The amendments made by this part shall not apply to—

(1)

any taxpayer if—

(A)

the Federal Government acquires, at any time, an equity interest in the taxpayer pursuant to the Emergency Economic Stabilization Act of 2008, or

(B)

the Federal Government acquires, at any time, any warrant (or other right) to acquire any equity interest with respect to the taxpayer pursuant to such Act,

(2)

the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, and

(3)

any taxpayer which at any time in 2008 or 2009 is a member of the same affiliated group (as defined in section 1504 of the Internal Revenue Code of 1986, determined without regard to subsection (b) thereof) as a taxpayer described in paragraph (1) or (2).

3

Incentives for new jobs

1421.

Incentives to hire unemployed veterans and disconnected youth

(a)

In general

Subsection (d) of section 51 is amended by adding at the end the following new paragraph:

(14)

Credit allowed for unemployed veterans and disconnected youth hired in 2009 or 2010

(A)

In general

Any unemployed veteran or disconnected youth who begins work for the employer during 2009 or 2010 shall be treated as a member of a targeted group for purposes of this subpart.

(B)

Definitions

For purposes of this paragraph—

(i)

Unemployed veteran

The term unemployed veteran means any veteran (as defined in paragraph (3)(B), determined without regard to clause (ii) thereof) who is certified by the designated local agency as—

(I)

having been discharged or released from active duty in the Armed Forces during 2008, 2009, or 2010, and

(II)

being in receipt of unemployment compensation under State or Federal law for not less than 4 weeks during the 1-year period ending on the hiring date.

(ii)

Disconnected youth

The term disconnected youth means any individual who is certified by the designated local agency—

(I)

as having attained age 16 but not age 25 on the hiring date,

(II)

as not regularly attending any secondary, technical, or post-secondary school during the 6-month period preceding the hiring date,

(III)

as not regularly employed during such 6-month period, and

(IV)

as not readily employable by reason of lacking a sufficient number of basic skills.

.

(b)

Effective date

The amendments made by this section shall apply to individuals who begin work for the employer after December 31, 2008.

4

Clarification of regulations related to limitations on certain built-In losses following an ownership change

1431.

Clarification of regulations related to limitations on certain built-in losses following an ownership change

(a)

Findings

Congress finds as follows:

(1)

The delegation of authority to the Secretary of the Treasury under section 382(m) of the Internal Revenue Code of 1986 does not authorize the Secretary to provide exemptions or special rules that are restricted to particular industries or classes of taxpayers.

(2)

Internal Revenue Service Notice 2008–83 is inconsistent with the congressional intent in enacting such section 382(m).

(3)

The legal authority to prescribe Internal Revenue Service Notice 2008–83 is doubtful.

(4)

However, as taxpayers should generally be able to rely on guidance issued by the Secretary of the Treasury legislation is necessary to clarify the force and effect of Internal Revenue Service Notice 2008–83 and restore the proper application under the Internal Revenue Code of 1986 of the limitation on built-in losses following an ownership change of a bank.

(b)

Determination of force and effect of Internal Revenue Service Notice 2008–83 exempting banks from limitation on certain built-in losses following ownership change

(1)

In general

Internal Revenue Service Notice 2008–83—

(A)

shall be deemed to have the force and effect of law with respect to any ownership change (as defined in section 382(g) of the Internal Revenue Code of 1986) occurring on or before January 16, 2009, and

(B)

shall have no force or effect with respect to any ownership change after such date.

(2)

Binding contracts

Notwithstanding paragraph (1), Internal Revenue Service Notice 2008–83 shall have the force and effect of law with respect to any ownership change (as so defined) which occurs after January 16, 2009 if such change—

(A)

is pursuant to a written binding contract entered into on or before such date, or

(B)

is pursuant to a written agreement entered into on or before such date and such agreement was described on or before such date in a public announcement or in a filing with the Securities and Exchange Commission required by reason of such ownership change.

F

Fiscal relief for State and local governments

1

Improved marketability for tax-exempt bonds

1501.

De minimis safe harbor exception for tax-exempt interest expense of financial institutions

(a)

In general

Subsection (b) of section 265 is amended by adding at the end the following new paragraph:

(7)

De minimis exception for bonds issued during 2009 or 2010

(A)

In general

In applying paragraph (2)(A), there shall not be taken into account tax-exempt obligations issued during 2009 or 2010.

(B)

Limitation

The amount of tax-exempt obligations not taken into account by reason of subparagraph (A) shall not exceed 2 percent of the amount determined under paragraph (2)(B).

(C)

Refundings

For purposes of this paragraph, a refunding bond (whether a current or advance refunding) shall be treated as issued on the date of the issuance of the refunded bond (or in the case of a series of refundings, the original bond).

.

(b)

Treatment as financial institution preference item

Clause (iv) of section 291(e)(1)(B) is amended by adding at the end the following: That portion of any obligation not taken into account under paragraph (2)(A) of section 265(b) by reason of paragraph (7) of such section shall be treated for purposes of this section as having been acquired on August 7, 1986..

(c)

Effective date

The amendments made by this section shall apply to obligations issued after December 31, 2008.

1502.

Modification of small issuer exception to tax-exempt interest expense allocation rules for financial institutions

(a)

In general

Paragraph (3) of section 265(b) (relating to exception for certain tax-exempt obligations) is amended by adding at the end the following new subparagraph:

(G)

Special rules for obligations issued during 2009 and 2010

(i)

Increase in limitation

In the case of obligations issued during 2009 or 2010, subparagraphs (C)(i), (D)(i), and (D)(iii)(II) shall each be applied by substituting $30,000,000 for $10,000,000.

(ii)

Qualified 501(c)(3) bonds treated as issued by exempt organization

In the case of a qualified 501(c)(3) bond (as defined in section 145) issued during 2009 or 2010, this paragraph shall be applied by treating the 501(c)(3) organization for whose benefit such bond was issued as the issuer.

(iii)

Special rule for qualified financings

In the case of a qualified financing issue issued during 2009 or 2010—

(I)

subparagraph (F) shall not apply, and

(II)

any obligation issued as a part of such issue shall be treated as a qualified tax-exempt obligation if the requirements of this paragraph are met with respect to each qualified portion of the issue (determined by treating each qualified portion as a separate issue issued by the qualified borrower with respect to which such portion relates).

(iv)

Qualified financing issue

For purposes of this subparagraph, the term qualified financing issue means any composite, pooled, or other conduit financing issue the proceeds of which are used directly or indirectly to make or finance loans to one or more ultimate borrowers each of whom is a qualified borrower.

(v)

Qualified portion

For purposes of this subparagraph, the term qualified portion means that portion of the proceeds which are used with respect to each qualified borrower under the issue.

(vi)

Qualified borrower

For purposes of this subparagraph, the term qualified borrower means a borrower which is a State or political subdivision thereof or an organization described in section 501(c)(3) and exempt from taxation under section 501(a).

.

(b)

Effective date

The amendments made by this section shall apply to obligations issued after December 31, 2008.

1503.

Temporary modification of alternative minimum tax limitations on tax-exempt bonds

(a)

Interest on private activity bonds issued during 2009 and 2010 not treated as tax preference item

Subparagraph (C) of section 57(a)(5) is amended by adding at the end a new clause:

(vi)

Exception for bonds issued in 2009 and 2010

For purposes of clause (i), the term private activity bond shall not include any bond issued after December 31, 2008, and before January 1, 2011. For purposes of the preceding sentence, a refunding bond (whether a current or advance refunding) shall be treated as issued on the date of the issuance of the refunded bond (or in the case of a series of refundings, the original bond).

.

(b)

No adjustment to adjusted current earnings for interest on tax-exempt bonds issued after 2008

Subparagraph (B) of section 56(g)(4) is amended by adding at the end the following new clause:

(iv)

Tax exempt interest on bonds issued in 2009 and 2010

Clause (i) shall not apply in the case of any interest on a bond issued after December 31, 2008, and before January 1, 2011. For purposes of the preceding sentence, a refunding bond (whether a current or advance refunding) shall be treated as issued on the date of the issuance of the refunded bond (or in the case of a series of refundings, the original bond).

.

(c)

Effective date

The amendments made by this section shall apply to obligations issued after December 31, 2008.

2

Tax credit bonds for schools

1511.

Qualified school construction bonds

(a)

In general

Subpart I of part IV of subchapter A of chapter 1 is amended by adding at the end the following new section:

54F.

Qualified school construction bonds

(a)

Qualified school construction bond

For purposes of this subchapter, the term qualified school construction bond means any bond issued as part of an issue if—

(1)

100 percent of the available project proceeds of such issue are to be used for the construction, rehabilitation, or repair of a public school facility or for the acquisition of land on which such a facility is to be constructed with part of the proceeds of such issue,

(2)

the bond is issued by a State or local government within the jurisdiction of which such school is located, and

(3)

the issuer designates such bond for purposes of this section.

(b)

Limitation on amount of bonds designated

The maximum aggregate face amount of bonds issued during any calendar year which may be designated under subsection (a) by any issuer shall not exceed the sum of—

(1)

the limitation amount allocated under subsection (d) for such calendar year to such issuer, and

(2)

if such issuer is a large local educational agency (as defined in subsection (e)(4)) or is issuing on behalf of such an agency, the limitation amount allocated under subsection (e) for such calendar year to such agency.

(c)

National limitation on amount of bonds designated

There is a national qualified school construction bond limitation for each calendar year. Such limitation is—

(1)

$11,000,000,000 for 2009,

(2)

$11,000,000,000 for 2010, and

(3)

except as provided in subsection (f), zero after 2010.

(d)

60 percent of limitation allocated among States

(1)

In general

60 percent of the limitation applicable under subsection (c) for any calendar year shall be allocated by the Secretary among the States in proportion to the respective numbers of children in each State who have attained age 5 but not age 18 for the most recent fiscal year ending before such calendar year. The limitation amount allocated to a State under the preceding sentence shall be allocated by the State to issuers within such State.

(2)

Minimum allocations to States

(A)

In general

The Secretary shall adjust the allocations under this subsection for any calendar year for each State to the extent necessary to ensure that the sum of—

(i)

the amount allocated to such State under this subsection for such year, and

(ii)

the aggregate amounts allocated under subsection (e) to large local educational agencies in such State for such year,

is not less than an amount equal to such State’s adjusted minimum percentage of the amount to be allocated under paragraph (1) for the calendar year.
(B)

Adjusted minimum percentage

A State’s adjusted minimum percentage for any calendar year is the product of—

(i)

the minimum percentage described in section 1124(d) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6334(d)) for such State for the most recent fiscal year ending before such calendar year, multiplied by

(ii)

1.68.

(3)

Allocations to certain possessions

The amount to be allocated under paragraph (1) to any possession of the United States other than Puerto Rico shall be the amount which would have been allocated if all allocations under paragraph (1) were made on the basis of respective populations of individuals below the poverty line (as defined by the Office of Management and Budget). In making other allocations, the amount to be allocated under paragraph (1) shall be reduced by the aggregate amount allocated under this paragraph to possessions of the United States.

(4)

Allocations for Indian schools

In addition to the amounts otherwise allocated under this subsection, $200,000,000 for calendar year 2009, and $200,000,000 for calendar year 2010, shall be allocated by the Secretary of the Interior for purposes of the construction, rehabilitation, and repair of schools funded by the Bureau of Indian Affairs. In the case of amounts allocated under the preceding sentence, Indian tribal governments (as defined in section 7701(a)(40)) shall be treated as qualified issuers for purposes of this subchapter.

(e)

40 percent of limitation allocated among largest school districts

(1)

In general

40 percent of the limitation applicable under subsection (c) for any calendar year shall be allocated under paragraph (2) by the Secretary among local educational agencies which are large local educational agencies for such year.

(2)

Allocation formula

The amount to be allocated under paragraph (1) for any calendar year shall be allocated among large local educational agencies in proportion to the respective amounts each such agency received for Basic Grants under subpart 2 of part A of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6331 et seq.) for the most recent fiscal year ending before such calendar year.

(3)

Allocation of unused limitation to State

The amount allocated under this subsection to a large local educational agency for any calendar year may be reallocated by such agency to the State in which such agency is located for such calendar year. Any amount reallocated to a State under the preceding sentence may be allocated as provided in subsection (d)(1).

(4)

Large local educational agency

For purposes of this section, the term large local educational agency means, with respect to a calendar year, any local educational agency if such agency is—

(A)

among the 100 local educational agencies with the largest numbers of children aged 5 through 17 from families living below the poverty level, as determined by the Secretary using the most recent data available from the Department of Commerce that are satisfactory to the Secretary, or

(B)

1 of not more than 25 local educational agencies (other than those described in subparagraph (A)) that the Secretary of Education determines (based on the most recent data available satisfactory to the Secretary) are in particular need of assistance, based on a low level of resources for school construction, a high level of enrollment growth, or such other factors as the Secretary deems appropriate.

(f)

Carryover of unused limitation

If for any calendar year—

(1)

the amount allocated under subsection (d) to any State, exceeds

(2)

the amount of bonds issued during such year which are designated under subsection (a) pursuant to such allocation,

the limitation amount under such subsection for such State for the following calendar year shall be increased by the amount of such excess. A similar rule shall apply to the amounts allocated under subsection (d)(4) or (e).

.

(b)

Conforming amendments

(1)

Paragraph (1) of section 54A(d) is amended by striking or at the end of subparagraph (C), by inserting or at the end of subparagraph (D), and by inserting after subparagraph (D) the following new subparagraph:

(E)

a qualified school construction bond,

.

(2)

Subparagraph (C) of section 54A(d)(2) is amended by striking and at the end of clause (iii), by striking the period at the end of clause (iv) and inserting , and, and by adding at the end the following new clause:

(v)

in the case of a qualified school construction bond, a purpose specified in section 54F(a)(1).

.

(3)

The table of sections for subpart I of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item:

Sec. 54F. Qualified school construction bonds.

.

(c)

Effective date

The amendments made by this section shall apply to obligations issued after December 31, 2008.

1512.

Extension and expansion of qualified zone academy bonds

(a)

In general

Section 54E(c)(1) is amended by striking and 2009 and inserting and $1,400,000,000 for 2009 and 2010.

(b)

Effective date

The amendment made by this section shall apply to obligations issued after December 31, 2008.

3

Taxable bond option for governmental bonds

1521.

Taxable bond option for governmental bonds

(a)

In general

Part IV of subchapter A of chapter 1 is amended by adding at the end the following new subpart:

J

Taxable bond option for governmental bonds

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

54AA.

Taxable bond option for governmental bonds

(a)

In general

If a taxpayer holds a taxable governmental bond on one or more interest payment dates of the bond during any taxable year, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the credits determined under subsection (b) with respect to such dates.

(b)

Amount of credit

The amount of the credit determined under this subsection with respect to any interest payment date for a taxable governmental bond is 35 percent of the amount of interest payable by the issuer with respect to such date.

(c)

Limitation based on amount of tax

(1)

In general

The credit allowed under subsection (a) for any taxable year shall not exceed the excess of—

(A)

the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over

(B)

the sum of the credits allowable under this part (other than subpart C and this subpart).

(2)

Carryover of unused credit

If the credit allowable under subsection (a) exceeds the limitation imposed by paragraph (1) for such taxable year, such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such taxable year (determined before the application of paragraph (1) for such succeeding taxable year).

(d)

Taxable governmental bond

(1)

In general

For purposes of this section, the term taxable governmental bond means any obligation (other than a private activity bond) if—

(A)

the interest on such obligation would (but for this section) be excludable from gross income under section 103, and

(B)

the issuer makes an irrevocable election to have this section apply.

(2)

Applicable rules

For purposes of applying paragraph (1)—

(A)

a taxable governmental bond shall not be treated as federally guaranteed by reason of the credit allowed under subsection (a) or section 6432,

(B)

the yield on a taxable governmental bond shall be determined without regard to the credit allowed under subsection (a), and

(C)

a bond shall not be treated as a taxable governmental bond if the issue price has more than a de minimis amount (determined under rules similar to the rules of section 1273(a)(3)) of premium over the stated principal amount of the bond.

(e)

Interest payment date

For purposes of this section, the term interest payment date means any date on which the holder of record of the taxable governmental bond is entitled to a payment of interest under such bond.

(f)

Special rules

(1)

Interest on taxable governmental bonds includible in gross income for Federal income tax purposes

For purposes of this title, interest on any taxable governmental bond shall be includible in gross income.

(2)

Application of certain rules

Rules similar to the rules of subsections (f), (g), (h), and (i) of section 54A shall apply for purposes of the credit allowed under subsection (a).

(g)

Special rule for qualified bonds issued before 2011

In the case of a qualified bond issued before January 1, 2011—

(1)

Issuer allowed refundable credit

In lieu of any credit allowed under this section with respect to such bond, the issuer of such bond shall be allowed a credit as provided in section 6432.

(2)

Qualified bond

For purposes of this subsection, the term qualified bond means any taxable governmental bond issued as part of an issue if—

(A)

100 percent of the available project proceeds (as defined in section 54A) of such issue are to be used for capital expenditures, and

(B)

the issuer makes an irrevocable election to have this subsection apply.

(h)

Regulations

The Secretary may prescribe such regulations and other guidance as may be necessary or appropriate to carry out this section and section 6432.

.

(b)

Credit for qualified bonds issued before 2011

Subchapter B of chapter 65, as amended by this Act, is amended by adding at the end the following new section:

6432.

Credit for qualified bonds allowed to issuer

(a)

In general

In the case of a qualified bond issued before January 1, 2011, the issuer of such bond shall be allowed a credit with respect to each interest payment under such bond which shall be payable by the Secretary as provided in subsection (b).

(b)

Payment of credit

The Secretary shall pay (contemporaneously with each interest payment date under such bond) to the issuer of such bond (or to any person who makes such interest payments on behalf of the issuer) 35 percent of the interest payable under such bond on such date.

(c)

Application of arbitrage rules

For purposes of section 148, the yield on a qualified bond shall be reduced by the credit allowed under this section.

(d)

Interest payment date

For purposes of this subsection, the term interest payment date means each date on which interest is payable by the issuer under the terms of the bond.

(e)

Qualified bond

For purposes of this subsection, the term qualified bond has the meaning given such term in section 54AA(h).

.

(c)

Conforming amendments

(1)

Section 1324(b)(2) of title 31, United States Code, is amended by striking or 6428 and inserting 6428, or 6432,.

(2)

Section 54A(c)(1)(B) is amended by striking subpart C and inserting subparts C and J.

(3)

Sections 54(c)(2), 1397E(c)(2), and 1400N(l)(3)(B) are each amended by striking and I and inserting , I, and J.

(4)

Section 6401(b)(1) is amended by striking and I and inserting I, and J.

(5)

The table of subparts for part IV of subchapter A of chapter 1 is amended by adding at the end the following new item:

Subpart J. Taxable bond option for governmental bonds.

.

(6)

The table of sections for subchapter B of chapter 65, as amended by this Act, is amended by adding at the end the following new item:

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

.

(d)

Transitional coordination with State law

Except as otherwise provided by a State after the date of the enactment of this Act, the interest on any taxable governmental bond (as defined in section 54AA of the Internal Revenue Code of 1986, as added by this section) and the amount of any credit determined under such section with respect to such bond shall be treated for purposes of the income tax laws of such State as being exempt from Federal income tax.

(e)

Effective date

The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.

4

Recovery zone bonds

1531.

Recovery zone bonds

(a)

In general

Subchapter Y of chapter 1 is amended by adding at the end the following new 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.

1400U–1.

Allocation of recovery zone bonds

(a)

Allocations

(1)

In general

The Secretary shall allocate the national recovery zone economic development bond limitation and the national recovery zone facility bond limitation among the States in the proportion that each such State’s 2008 State employment decline bears to the aggregate of the 2008 State employment declines for all of the States.

(2)

2008 State employment decline

For purposes of this subsection, the term 2008 State employment decline means, with respect to any State, the excess (if any) of—

(A)

the number of individuals employed in such State determined for December 2007, over

(B)

the number of individuals employed in such State determined for December 2008.

(3)

Allocations by States

(A)

In general

Each State with respect to which an allocation is made under paragraph (1) shall reallocate such allocation among the counties and large municipalities in such State in the proportion the each such county’s or municipality’s 2008 employment decline bears to the aggregate of the 2008 employment declines for all the counties and municipalities in such State.

(B)

Large municipalities

For purposes of subparagraph (A), the term large municipality means a municipality with a population of more than 100,000.

(C)

Determination of local employment declines

For purposes of this paragraph, the employment decline of any municipality or county shall be determined in the same manner as determining the State employment decline under paragraph (2), except that in the case of a municipality any portion of which is in a county, such portion shall be treated as part of such municipality and not part of such county.

(4)

National limitations

(A)

Recovery zone economic development bonds

There is a national recovery zone economic development bond limitation of $10,000,000,000.

(B)

Recovery zone facility bonds

There is a national recovery zone facility bond limitation of $15,000,000,000.

(b)

Recovery zone

For purposes of this part, the term recovery zone means—

(1)

any area designated by the issuer as having significant poverty, unemployment, home foreclosures, or general distress, and

(2)

any area for which a designation as an empowerment zone or renewal community is in effect.

1400U–2.

Recovery zone economic development bonds

(a)

In general

In the case of a recovery zone economic development bond—

(1)

such bond shall be treated as a qualified bond for purposes of section 6432, and

(2)

subsection (b) of such section shall be applied by substituting 55 percent for 35 percent.

(b)

Recovery zone economic development bond

(1)

In general

For purposes of this section, the term recovery zone economic development bond means any taxable governmental bond (as defined in section 54AA(d)) issued before January 1, 2011, as part of issue if—

(A)

100 percent of the available project proceeds (as defined in section 54A) of such issue are to be used for one or more qualified economic development purposes, and

(B)

the issuer designates such bond for purposes of this section.

(2)

Limitation on amount of bonds designated

The maximum aggregate face amount of bonds which may be designated by any issuer under paragraph (1) shall not exceed the amount of the recovery zone economic development bond limitation allocated to such issuer under section 1400U–1.

(c)

Qualified economic development purpose

For purposes of this section, the term qualified economic development purpose means expenditures for purposes of promoting development or other economic activity in a recovery zone, including—

(1)

capital expenditures paid or incurred with respect to property located in such zone,

(2)

expenditures for public infrastructure and construction of public facilities, and

(3)

expenditures for job training and educational programs.

1400U–3.

Recovery zone facility bonds

(a)

In general

For purposes of part IV of subchapter B (relating to tax exemption requirements for State and local bonds), the term exempt facility bond includes any recovery zone facility bond.

(b)

Recovery zone facility bond

(1)

In general

For purposes of this section, the term recovery zone facility bond means any bond issued as part of an issue if—

(A)

95 percent or more of the net proceeds (as defined in section 150(a)(3)) of such issue are to be used for recovery zone property,

(B)

such bond is issued before January 1, 2011, and

(C)

the issuer designates such bond for purposes of this section.

(2)

Limitation on amount of bonds designated

The maximum aggregate face amount of bonds which may be designated by any issuer under paragraph (1) shall not exceed the amount of recovery zone facility bond limitation allocated to such issuer under section 1400U–1.

(c)

Recovery zone property

For purposes of this section—

(1)

In general

The term recovery zone property means any property to which section 168 applies (or would apply but for section 179) if—

(A)

such property was acquired by the taxpayer by purchase (as defined in section 179(d)(2)) after the date on which the designation of the recovery zone took effect,

(B)

the original use of which in the recovery zone commences with the taxpayer, and

(C)

substantially all of the use of which is in the recovery zone and is in the active conduct of a qualified business by the taxpayer in such zone.

(2)

Qualified business

The term qualified business means any trade or business except that—

(A)

the rental to others of real property located in a recovery zone shall be treated as a qualified business only if the property is not residential rental property (as defined in section 168(e)(2)), and

(B)

such term shall not include any trade or business consisting of the operation of any facility described in section 144(c)(6)(B).

(3)

Special rules for substantial renovations and sale-leaseback

Rules similar to the rules of subsections (a)(2) and (b) of section 1397D shall apply for purposes of this subsection.

(d)

Nonapplication of certain rules

Sections 146 (relating to volume cap) and 147(d) (relating to acquisition of existing property not permitted) shall not apply to any recovery zone facility bond.

.

(b)

Clerical amendment

The table of parts for subchapter Y of chapter 1 of such Code is amended by adding at the end the following new item:

Part III. Recovery zone bonds.

.

(c)

Effective date

The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.

1532.

Tribal economic development bonds

(a)

In general

Section 7871 is amended by adding at the end the following new subsection:

(f)

Tribal economic development bonds

(1)

Allocation of limitation

(A)

In general

The Secretary shall allocate the national tribal economic development bond limitation among the Indian tribal governments in such manner as the Secretary, in consultation with the Secretary of the Interior, determines appropriate.

(B)

National limitation

There is a national tribal economic development bond limitation of $2,000,000,000.

(2)

Bonds treated as exempt from tax

In the case of a tribal economic development bond—

(A)

notwithstanding subsection (c), such bond shall be treated for purposes of this title in the same manner as if such bond were issued by a State, and

(B)

section 146 shall not apply.

(3)

Tribal economic development bond

(A)

In general

For purposes of this section, the term tribal economic development bond means any bond issued by an Indian tribal government—

(i)

the interest on which is not exempt from tax under section 103 by reason of subsection (c) (determined without regard to this subsection) but would be so exempt if issued by a State or local government, and

(ii)

which is designated by the Indian tribal government as a tribal economic development bond for purposes of this subsection.

(B)

Exceptions

The term tribal economic development bond shall not include any bond issued as part of an issue if any portion of the proceeds of such issue are used to finance—

(i)

any portion of a building in which class II or class III gaming (as defined in section 4 of the Indian Gaming Regulatory Act) is conducted or housed or any other property actually used in the conduct of such gaming, or

(ii)

any facility located outside the Indian reservation (as defined in section 168(j)(6)).

(C)

Limitation on amount of bonds designated

The maximum aggregate face amount of bonds which may be designated by any Indian tribal government under subparagraph (A) shall not exceed the amount of national tribal economic development bond limitation allocated to such government under paragraph (1).

.

(b)

Study

The Secretary of the Treasury, or the Secretary’s delegate, shall conduct a study of the effects of the amendment made by subsection (a). Not later than 1 year after the date of the enactment of this Act, the Secretary of the Treasury, or the Secretary’s delegate, shall report to Congress on the results of the studies conducted under this paragraph, including the Secretary’s recommendations regarding such amendment.

(c)

Effective date

The amendment made by subsection (a) shall apply to obligations issued after the date of the enactment of this Act.

5

Repeal of withholding tax on government contractors

1541.

Repeal of withholding tax on government contractors

Section 3402 is amended by striking subsection (t).

G

Energy incentives

1

Renewable energy incentives

1601.

Extension of credit for electricity produced from certain renewable resources

(a)

In general

Subsection (d) of section 45 is amended—

(1)

by striking 2010 in paragraph (1) and inserting 2013,

(2)

by striking 2011 each place it appears in paragraphs (2), (3), (4), (6), (7) and (9) and inserting 2014, and

(3)

by striking 2012 in paragraph (11)(B) and inserting 2014.

(b)

Technical amendment

Paragraph (5) of section 45(d) is amended by striking and before and all that follows and inserting and before October 3, 2008..

(c)

Effective date

(1)

In general

The amendments made by subsection (a) shall apply to property placed in service after the date of the enactment of this Act.

(2)

Technical amendment

The amendment made by subsection (b) shall take effect as if included in section 102 of the Energy Improvement and Extension Act of 2008.

1602.

Election of investment credit in lieu of production credit

(a)

In general

Subsection (a) of section 48 is amended by adding at the end the following new paragraph:

(5)

Election to treat qualified facilities as energy property

(A)

In general

In the case of any qualified investment credit facility placed in service in 2009 or 2010—

(i)

such facility shall be treated as energy property for purposes of this section, and

(ii)

the energy percentage with respect to such property shall be 30 percent.

(B)

Denial of production credit

No credit shall be allowed under section 45 for any taxable year with respect to any qualified investment credit facility.

(C)

Qualified investment credit facility

For purposes of this paragraph, the term qualified investment credit facility means any facility described in paragraph (1), (2), (3), (4), (6), (7), (9), or (11) of section 45(d) if no credit has been allowed under section 45 with respect to such facility and the taxpayer makes an irrevocable election to have this paragraph apply to such facility.

.

(b)

Effective date

The amendments made by this section shall apply to facilities placed in service after December 31, 2008.

1603.

Repeal of certain limitations on credit for renewable energy property

(a)

Repeal of limitation on credit for qualified small wind energy property

Paragraph (4) of section 48(c) is amended by striking subparagraph (B) and by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C).

(b)

Repeal of limitation on property financed by subsidized energy financing

(1)

In general

Subsection (a) of section 48 is amended by striking paragraph (4).

(2)

Conforming amendments

(A)

Section 25C(e)(1) is amended by striking (8), and (9) and inserting and (8).

(B)

Section 25D(e) is amended by striking paragraph (9).

(c)

Effective date

(1)

In general

Except as provided in paragraph (2),the amendment made by this section shall apply to periods after December 31, 2008, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).

(2)

Conforming amendments

The amendments made by subsection (b)(2) shall apply to taxable years beginning after December 31, 2008.

1604.

Coordination with renewable energy grants

Section 48 is amended by adding at the end the following new subsection:

(d)

Coordination with Department of Energy grants

In the case of any property with respect to which the Secretary of Energy makes a grant under section 1721 of the American Recovery and Reinvestment Tax Act of 2009

(1)

Denial of production and investment credits

No credit shall be determined under this section or section 45 with respect to such property for the taxable year in which such grant is made or any subsequent taxable year.

(2)

Recapture of credits for progress expenditures made before grant

If a credit was determined under this section with respect to such property for any taxable year ending before such grant is made—

(A)

the tax imposed under subtitle A on the taxpayer for the taxable year in which such grant is made shall be increased by so much of such credit as was allowed under section 38,

(B)

the general business carryforwards under section 39 shall be adjusted so as to recapture the portion of such credit which was not so allowed, and

(C)

the amount of such grant shall be determined without regard to any reduction in the basis of such property by reason of such credit.

(3)

Treatment of grants

Any such grant shall—

(A)

not be includible in the gross income of the taxpayer, but

(B)

shall be taken into account in determining the basis of the property to which such grant relates, except that the basis of such property shall be reduced under section 50(c) in the same manner as a credit allowed under subsection (a).

.

2

Increased allocations of new clean renewable energy bonds and qualified energy conservation bonds

1611.

Increased limitation on issuance of new clean renewable energy bonds

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

(4)

Additional limitation

The national new clean renewable energy bond limitation shall be increased by $1,600,000,000. Such increase shall be allocated by the Secretary consistent with the rules of paragraphs (2) and (3).

.

1612.

Increased limitation and expansion of qualified energy conservation bonds

(a)

Increased limitation

Subsection (e) of section 54D is amended by adding at the end the following new paragraph:

(4)

Additional limitation

The national qualified energy conservation bond limitation shall be increased by $2,400,000,000. Such increase shall be allocated by the Secretary consistent with the rules of paragraphs (1), (2), and (3).

.

(b)

Loans and grants to implement green community programs

(1)

In general

Subparagraph (A) of section 54D(f)(1) is amended by inserting (or loans or grants for capital expenditures to implement any green community program) after Capital expenditures.

(2)

Bonds to implement green community programs not treated as private activity bonds for purposes of limitations on qualified energy conservation bonds

Subsection (e) of section 54D is amended by adding at the end the following new paragraph:

(4)

Bonds to implement green community programs not treated as private activity bonds

For purposes of paragraph (3) and subsection (f)(2), a bond shall not be treated as a private activity bond solely because proceeds of the issue of which such bond is a part are to be used for loans or grants for capital expenditures to implement any green community program.

.

(c)

Effective date

The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.

3

Energy conservation incentives

1621.

Extension and modification of credit for nonbusiness energy property

(a)

In general

Section 25C is amended by striking subsections (a) and (b) and inserting the following new subsections:

(a)

Allowance of credit

In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 30 percent of the sum of—

(1)

the amount paid or incurred by the taxpayer during such taxable year for qualified energy efficiency improvements, and

(2)

the amount of the residential energy property expenditures paid or incurred by the taxpayer during such taxable year.

(b)

Limitation

The aggregate amount of the credits allowed under this section for taxable years beginning in 2009 and 2010 with respect to any taxpayer shall not exceed $1,500.

.

(b)

Extension

Section 25C(g)(2) is amended by striking December 31, 2009 and inserting December 31, 2010.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2008.

1622.

Modification of credit for residential energy efficient property

(a)

Removal of credit limitation for property placed in service

(1)

In general

Paragraph (1) of section 25D(b) is amended to read as follows:

(1)

Maximum credit for fuel cells

In the case of any qualified fuel cell property expenditure, the credit allowed under subsection (a) (determined without regard to subsection (c)) for any taxable year shall not exceed $500 with respect to each half kilowatt of capacity of the qualified fuel cell property (as defined in section 48(c)(1)) to which such expenditure relates.

.

(2)

Conforming amendment

Paragraph (4) of section 25D(e) is amended—

(A)

by striking all that precedes subparagraph (B) and inserting the following:

(4)

Fuel cell expenditure limitations in case of joint occupancy

In the case of any dwelling unit with respect to which qualified fuel cell property expenditures are made and which is jointly occupied and used during any calendar year as a residence by two or more individuals the following rules shall apply:

(A)

Maximum expenditures for fuel cells

The maximum amount of such expenditures which may be taken into account under subsection (a) by all such individuals with respect to such dwelling unit during such calendar year shall be $1,667 in the case of each half kilowatt of capacity of qualified fuel cell property (as defined in section 48(c)(1)) with respect to which such expenditures relate.

, and

(B)

by striking subparagraph (C).

(b)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2008.

1623.

Temporary increase in credit for alternative fuel vehicle refueling property

(a)

In general

Section 30C(e) is amended by adding at the end the following new paragraph:

(6)

Special rule for property placed in service during 2009 and 2010

In the case of property placed in service in taxable years beginning after December 31, 2008, and before January 1, 2011—

(A)

in the case of any such property which does not relate to hydrogen—

(i)

subsection (a) shall be applied by substituting 50 percent for 30 percent,

(ii)

subsection (b)(1) shall be applied by substituting $50,000 for $30,000, and

(iii)

subsection (b)(2) shall be applied by substituting $2,000 for $1,000, and

(B)

in the case of any such property which relates to hydrogen, subsection (b) shall be applied by substituting $200,000 for $30,000.

.

(b)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2008.

4

Energy research incentives

1631.

Increased research credit for energy research

(a)

In general

Section 41 is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection:

(h)

Energy research credit

In the case of any taxable year beginning in 2009 or 2010—

(1)

In general

The credit determined under subsection (a)(1) shall be increased by 20 percent of the qualified energy research expenses for the taxable year.

(2)

Qualified energy research expenses

For purposes of this subsection, the term qualified energy research expenses means so much of the taxpayer’s qualified research expenses as are related to the fields of fuel cells and battery technology, renewable energy, energy conservation technology, efficient transmission and distribution of electricity, and carbon capture and sequestration.

(3)

Coordination with other research credits

(A)

Incremental credit

The amount of qualified energy research expenses taken into account under subsection (a)(1)(A) shall not exceed the base amount.

(B)

Alternative simplified credit

For purposes of subsection (c)(5), the amount of qualified energy research expenses taken into account for the taxable year for which the credit is being determined shall not exceed—

(i)

in the case of subsection (c)(5)(A), 50 percent of the average qualified research expenses for the 3 taxable years preceding the taxable year for which the credit is being determined, and

(ii)

in the case of subsection (c)(5)(B)(ii), zero.

(C)

Basic research and energy research consortium payments

Any amount taken into account under paragraph (1) shall not be taken into account under paragraph (2) or (3) of subsection (a).

.

(b)

Conforming amendment

Subparagraph (B) of section 41(i)(1)(B), as redesignated by subsection (a), is amended by inserting (in the case of the increase in the credit determined under subsection (h), December 31, 2010) after December 31, 2009.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2008.

H

Other provisions

1

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

1701.

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

Subchapter IV of chapter 31 of the title 40, United States Code, shall apply to projects financed with the proceeds of—

(1)

any qualified clean renewable energy bond (as defined in section 54C of the Internal Revenue Code of 1986) issued after the date of the enactment of this Act,

(2)

any qualified energy conservation bond (as defined in section 54D of the Internal Revenue Code of 1986) issued after the date of the enactment of this Act,

(3)

any qualified zone academy bond (as defined in section 54E of the Internal Revenue Code of 1986) issued after the date of the enactment of this Act,

(4)

any qualified school construction bond (as defined in section 54F of the Internal Revenue Code of 1986), and

(5)

any recovery zone economic development bond (as defined in section 1400U–2 of the Internal Revenue Code of 1986).

2

Grants to provide financing for low-income housing

1711.

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

(a)

In general

The Secretary of the Treasury shall make a grant to the housing credit agency of each State in an amount equal to such State’s low-income housing grant election amount.

(b)

Low-income housing grant election amount

For purposes of this section, the term low-income housing grant election amount means, with respect to any State, such amount as the State may elect which does not exceed 85 percent of the product of—

(1)

the sum of—

(A)

100 percent of the State housing credit ceiling for 2009 which is attributable to amounts described in clauses (i) and (iii) of section 42(h)(3)(C) of the Internal Revenue Code of 1986, and

(B)

40 percent of the State housing credit ceiling for 2009 which is attributable to amounts described in clauses (ii) and (iv) of such section, multiplied by

(2)

10.

(c)

Subawards for low-income buildings

(1)

In general

A State housing credit agency receiving a grant under this section shall use such grant to make subawards to finance the construction or acquisition and rehabilitation of qualified low-income buildings. A subaward under this section may be made to finance a qualified low-income building with or without an allocation under section 42 of the Internal Revenue Code of 1986, except that a State housing credit agency may make subawards to finance qualified low-income buildings without an allocation only if it makes a determination that such use will increase the total funds available to the State to build and rehabilitate affordable housing. In complying with such determination requirement, a State housing credit agency shall establish a process in which applicants that are allocated credits are required to demonstrate good faith efforts to obtain investment commitments for such credits before the agency makes such subawards.

(2)

Subawards subject to same requirements as low-income housing credit allocations

Any such subaward with respect to any qualified low-income building shall be made in the same manner and shall be subject to the same limitations (including rent, income, and use restrictions on such building) as an allocation of housing credit dollar amount allocated by such State housing credit agency under section 42 of the Internal Revenue Code of 1986, except that such subawards shall not be limited by, or otherwise affect (except as provided in subsection (h)(3)(J) of such section), the State housing credit ceiling applicable to such agency.

(3)

Compliance and asset management

The State housing credit agency shall perform asset management functions to ensure compliance with section 42 of the Internal Revenue Code of 1986 and the long-term viability of buildings funded by any subaward under this section. The State housing credit agency may collect reasonable fees from a subaward recipient to cover expenses associated with the performance of its duties under this paragraph. The State housing credit agency may retain an agent or other private contractor to satisfy the requirements of this paragraph.

(4)

Recapture

The State housing credit agency shall impose conditions or restrictions, including a requirement providing for recapture, on any subaward under this section so as to assure that the building with respect to which such subaward is made remains a qualified low-income building during the compliance period. Any such recapture shall be payable to the Secretary of the Treasury for deposit in the general fund of the Treasury and may be enforced by means of liens or such other methods as the Secretary of the Treasury determines appropriate.

(d)

Return of unused grant funds

Any grant funds not used to make subawards under this section before January 1, 2011, shall be returned to the Secretary of the Treasury on such date. Any subawards returned to the State housing credit agency on or after such date shall be promptly returned to the Secretary of the Treasury. Any amounts returned to the Secretary of the Treasury under this subsection shall be deposited in the general fund of the Treasury.

(e)

Definitions

Any term used in this section which is also used in section 42 of the Internal Revenue Code of 1986 shall have the same meaning for purposes of this section as when used in such section 42. Any reference in this section to the Secretary of the Treasury shall be treated as including the Secretary’s delegate.

(f)

Appropriations

There is hereby appropriated to the Secretary of the Treasury such sums as may be necessary to carry out this section.

3

Grants for specified energy property in lieu of tax credits

1721.

Grants for specified energy property in lieu of tax credits

(a)

In general

Upon application, the Secretary of Energy shall, within 60 days of the application and subject to the requirements of this section, provide a grant to each person who places in service specified energy property during 2009 or 2010 to reimburse such person for a portion of the expense of such facility as provided in subsection (b).

(b)

Grant amount

(1)

In general

The amount of the grant under subsection (a) with respect to any specified energy property shall be the applicable percentage of the basis of such facility.

(2)

Applicable percentage

For purposes of paragraph (1), the term applicable percentage means—

(A)

30 percent in the case of any property described in paragraphs (1) through (4) of subsection (c), and

(B)

10 percent in the case of any other property.

(3)

Dollar limitations

In the case of property described in paragraph (2), (6), or (7) of subsection (c), the amount of any grant under this section with respect to such property shall not exceed the limitation described in section 48(c)(1)(B), 48(c)(2)(B), or 48(c)(3)(B) of the Internal Revenue Code of 1986, respectively, with respect to such property.

(c)

Specified energy property

For purposes of this section, the term specified energy property means any of the following:

(1)

Qualified facilities

Any facility described in paragraph (1), (2), (3), (4), (6), (7), (9), or (11) of section 45(d) of the Internal Revenue Code of 1986.

(2)

Qualified fuel cell property

Any qualified fuel cell property (as defined in section 48(c)(1) of such Code).

(3)

Solar property

Any property described in clause (i) or (ii) of section 48(a)(3)(A) of such Code.

(4)

Qualified small wind energy property

Any qualified small wind energy property (as defined in section 48(c)(4) of such Code).

(5)

Geothermal property

Any property described in clause (iii) of section 48(a)(3)(A) of such Code.

(6)

Qualified microturbine property

Any qualified microturbine property (as defined in section 48(c)(2) of such Code).

(7)

Combined heat and power system property

Any combined heat and power system property (as defined in section 48(c)(3) of such Code).

(8)

Geothermal heatpump property

Any property described in clause (vii) of section 48(a)(3)(A) of such Code.

(d)

Application of certain rules

In making grants under this section, the Secretary of Energy shall apply rules similar to the rules of section 50 of the Internal Revenue Code of 1986. In applying such rules, if the facility is disposed of, or otherwise ceases to be a qualified renewable energy facility, the Secretary of Energy shall provide for the recapture of the appropriate percentage of the grant amount in such manner as the Secretary of Energy determines appropriate.

(e)

Exception for certain non-taxpayers

The Secretary of Energy shall not make any grant under this section to any Federal, State, or local government (or any political subdivision, agency, or instrumentality thereof) or any organization described in section 501(c) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code.

(f)

Definitions

Terms used in this section which are also used in section 45 or 48 of the Internal Revenue Code of 1986 shall have the same meaning for purposes of this section as when used in such section 45 or 48. Any reference in this section to the Secretary of the Treasury shall be treated as including the Secretary’s delegate.

(g)

Coordination between Departments of Treasury and Energy

The Secretary of the Treasury shall provide the Secretary of Energy with such technical assistance as the Secretary of Energy may require in carrying out this section. The Secretary of Energy shall provide the Secretary of the Treasury with such information as the Secretary of the Treasury may require in carrying out the amendment made by section 1604.

(h)

Appropriations

There is hereby appropriated to the Secretary of Energy such sums as may be necessary to carry out this section.

(i)

Termination

The Secretary of Energy shall not make any grant to any person under this section unless the application of such person for such grant is received before October 1, 2011.

4

Study of economic, employment, and related effects of this Act

1731.

Study of economic, employment, and related effects of this Act

On February 1, 2010, and every 3 months thereafter in calendar year 2010, the Comptroller General of the United States shall submit to the Committee on Ways and Means a written report on the most recent national (and, where available, State-by-State) information on—

(1)

the economic effects of this Act;

(2)

the employment effects of this Act, including—

(A)

a comparison of the number of jobs preserved and the number of jobs created as a result of this Act; and

(B)

a comparison of the numbers of jobs preserved and the number of jobs created in each of the public and private sectors;

(3)

the share of tax and non-tax expenditures provided under this Act that were spent or saved, by group and income class;

(4)

how the funds provided to States under this Act have been spent, including a breakdown of—

(A)

funds used for services provided to citizens; and

(B)

wages and other compensation for public employees; and

(5)

a description of any funds made available under this Act that remain unspent, and the reasons why.

II

Assistance for Unemployed Workers and Struggling Families

2000.

Short title

This title may be cited as the Assistance for Unemployed Workers and Struggling Families Act.

A

Unemployment Insurance

2001.

Extension of emergency unemployment compensation program

(a)

In general

Section 4007 of the Supplemental Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 3304 note), as amended by section 4 of the Unemployment Compensation Extension Act of 2008 (Public Law 110–449; 122 Stat. 5015), is amended—

(1)

by striking March 31, 2009 each place it appears and inserting December 31, 2009;

(2)

in the heading for subsection (b)(2), by striking march 31, 2009 and inserting december 31, 2009; and

(3)

in subsection (b)(3), by striking August 27, 2009 and inserting May 31, 2010.

(b)

Financing provisions

Section 4004 of such Act is amended by adding at the end the following:

(e)

Transfer of funds

Notwithstanding any other provision of law, the Secretary of the Treasury shall transfer from the general fund of the Treasury (from funds not otherwise appropriated)—

(1)

to the extended unemployment compensation account (as established by section 905 of the Social Security Act) such sums as the Secretary of Labor estimates to be necessary to make payments to States under this title by reason of the amendments made by section 2001(a) of the Assistance for Unemployed Workers and Struggling Families Act; and

(2)

to the employment security administration account (as established by section 901 of the Social Security Act) such sums as the Secretary of Labor estimates to be necessary for purposes of assisting States in meeting administrative costs by reason of the amendments referred to in paragraph (1).

There are appropriated from the general fund of the Treasury, without fiscal year limitation, the sums referred to in the preceding sentence and such sums shall not be required to be repaid.

.

2002.

Increase in unemployment compensation benefits

(a)

Federal-State agreements

Any State which desires to do so may enter into and participate in an agreement under this section with the Secretary of Labor (hereinafter in this section referred to as the Secretary). Any State which is a party to an agreement under this section may, upon providing 30 days’ written notice to the Secretary, terminate such agreement.

(b)

Provisions of agreement

(1)

Additional compensation

Any agreement under this section shall provide that the State agency of the State will make payments of regular compensation to individuals in amounts and to the extent that they would be determined if the State law of the State were applied, with respect to any week for which the individual is (disregarding this section) otherwise entitled under the State law to receive regular compensation, as if such State law had been modified in a manner such that the amount of regular compensation (including dependents’ allowances) payable for any week shall be equal to the amount determined under the State law (before the application of this paragraph) plus an additional $25.

(2)

Allowable methods of payment

Any additional compensation provided for in accordance with paragraph (1) shall be payable either—

(A)

as an amount which is paid at the same time and in the same manner as any regular compensation otherwise payable for the week involved; or

(B)

at the option of the State, by payments which are made separately from, but on the same weekly basis as, any regular compensation otherwise payable.

(c)

Nonreduction rule

An agreement under this section shall not apply (or shall cease to apply) with respect to a State upon a determination by the Secretary that the method governing the computation of regular compensation under the State law of that State has been modified in a manner such that—

(1)

the average weekly benefit amount of regular compensation which will be payable during the period of the agreement (determined disregarding any additional amounts attributable to the modification described in subsection (b)(1)) will be less than

(2)

the average weekly benefit amount of regular compensation which would otherwise have been payable during such period under the State law, as in effect on December 31, 2008.

(d)

Payments to States

(1)

In general

(A)

Full reimbursement

There shall be paid to each State which has entered into an agreement under this section an amount equal to 100 percent of—

(i)

the total amount of additional compensation (as described in subsection (b)(1)) paid to individuals by the State pursuant to such agreement; and

(ii)

any additional administrative expenses incurred by the State by reason of such agreement (as determined by the Secretary).

(B)

Terms of payments

Sums payable to any State by reason of such State’s having an agreement under this section shall be payable, either in advance or by way of reimbursement (as determined by the Secretary), in such amounts as the Secretary estimates the State will be entitled to receive under this section for each calendar month, reduced or increased, as the case may be, by any amount by which the Secretary finds that his estimates for any prior calendar month were greater or less than the amounts which should have been paid to the State. Such estimates may be made on the basis of such statistical, sampling, or other method as may be agreed upon by the Secretary and the State agency of the State involved.

(2)

Certifications

The Secretary shall from time to time certify to the Secretary of the Treasury for payment to each State the sums payable to such State under this section.

(3)

Appropriation

There are appropriated from the general fund of the Treasury, without fiscal year limitation, such sums as may be necessary for purposes of this subsection.

(e)

Applicability

(1)

In general

An agreement entered into under this section shall apply to weeks of unemployment—

(A)

beginning after the date on which such agreement is entered into; and

(B)

ending before January 1, 2010.

(2)

Transition rule for individuals remaining entitled to regular compensation as of January 1, 2010

In the case of any individual who, as of the date specified in paragraph (1)(B), has not yet exhausted all rights to regular compensation under the State law of a State with respect to a benefit year that began before such date, additional compensation (as described in subsection (b)(1)) shall continue to be payable to such individual for any week beginning on or after such date for which the individual is otherwise eligible for regular compensation with respect to such benefit year.

(3)

Termination

Notwithstanding any other provision of this subsection, no additional compensation (as described in subsection (b)(1)) shall be payable for any week beginning after June 30, 2010.

(f)

Fraud and overpayments

The provisions of section 4005 of the Supplemental Appropriations Act, 2008 (Public Law 110–252; 122 Stat. 2356) shall apply with respect to additional compensation (as described in subsection (b)(1)) to the same extent and in the same manner as in the case of emergency unemployment compensation.

(g)

Application to other unemployment benefits

(1)

In general

Each agreement under this section shall include provisions to provide that the purposes of the preceding provisions of this section shall be applied with respect to unemployment benefits described in subsection (h)(3) to the same extent and in the same manner as if those benefits were regular compensation.

(2)

Eligibility and termination rules

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

(A)

shall not be payable, pursuant to this subsection, with respect to any unemployment benefits described in subsection (h)(3) for any week beginning on or after the date specified in subsection (e)(1)(B), except in the case of an individual who was eligible to receive additional compensation (as so described) in connection with any regular compensation or any unemployment benefits described in subsection (h)(3) for any period of unemployment ending before such date; and

(B)

shall in no event be payable for any week beginning after the date specified in subsection (e)(3).

(h)

Disregard of additional compensation for purposes of Medicaid and SCHIP

The monthly equivalent of any additional compensation paid under this section shall be disregarded in considering the amount of income of an individual for any purposes under title XIX and title XXI of the Social Security Act.

(i)

Definitions

For purposes of this section—

(1)

the terms compensation, regular compensation, benefit year, State, State agency, State law, and week have the respective meanings given such terms under section 205 of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note);

(2)

the term emergency unemployment compensation means emergency unemployment compensation under title IV of the Supplemental Appropriations Act, 2008 (Public Law 110–252; 122 Stat. 2353); and

(3)

any reference to unemployment benefits described in this paragraph shall be considered to refer to—

(A)

extended compensation (as defined by section 205 of the Federal-State Extended Unemployment Compensation Act of 1970); and

(B)

unemployment compensation (as defined by section 85(b) of the Internal Revenue Code of 1986) provided under any program administered by a State under an agreement with the Secretary.

2003.

Special transfers for unemployment compensation modernization

(a)

In general

Section 903 of the Social Security Act (42 U.S.C. 1103) is amended by adding at the end the following:

(f)

Special transfers in fiscal years 2009, 2010, and 2011 for modernization

(1)
(A)

In addition to any other amounts, the Secretary of Labor shall provide for the making of unemployment compensation modernization incentive payments (hereinafter incentive payments) to the accounts of the States in the Unemployment Trust Fund, by transfer from amounts reserved for that purpose in the Federal unemployment account, in accordance with succeeding provisions of this subsection.

(B)

The maximum incentive payment allowable under this subsection with respect to any State shall, as determined by the Secretary of Labor, be equal to the amount obtained by multiplying $7,000,000,000 by the same ratio as would apply under subsection (a)(2)(B) for purposes of determining such State’s share of any excess amount (as described in subsection (a)(1)) that would have been subject to transfer to State accounts, as of October 1, 2008, under the provisions of subsection (a).

(C)

Of the maximum incentive payment determined under subparagraph (B) with respect to a State—

(i)

one-third shall be transferred to the account of such State upon a certification under paragraph (4)(B) that the State law of such State meets the requirements of paragraph (2); and

(ii)

the remainder shall be transferred to the account of such State upon a certification under paragraph (4)(B) that the State law of such State meets the requirements of paragraph (3).

(2)

The State law of a State meets the requirements of this paragraph if such State law—

(A)

uses a base period that includes the most recently completed calendar quarter before the start of the benefit year for purposes of determining eligibility for unemployment compensation; or

(B)

provides that, in the case of an individual who would not otherwise be eligible for unemployment compensation under the State law because of the use of a base period that does not include the most recently completed calendar quarter before the start of the benefit year, eligibility shall be determined using a base period that includes such calendar quarter.

(3)

The State law of a State meets the requirements of this paragraph if such State law includes provisions to carry out at least 2 of the following subparagraphs:

(A)

An individual shall not be denied regular unemployment compensation under any State law provisions relating to availability for work, active search for work, or refusal to accept work, solely because such individual is seeking only part-time work (as defined by the Secretary of Labor), except that the State law provisions carrying out this subparagraph may exclude an individual if a majority of the weeks of work in such individual’s base period do not include part-time work (as so defined).

(B)

An individual shall not be disqualified from regular unemployment compensation for separating from employment if that separation is for any compelling family reason. For purposes of this subparagraph, the term compelling family reason means the following:

(i)

Domestic violence, verified by such reasonable and confidential documentation as the State law may require, which causes the individual reasonably to believe that such individual’s continued employment would jeopardize the safety of the individual or of any member of the individual’s immediate family (as defined by the Secretary of Labor).

(ii)

The illness or disability of a member of the individual’s immediate family (as those terms are defined by the Secretary of Labor).

(iii)

The need for the individual to accompany such individual’s spouse—

(I)

to a place from which it is impractical for such individual to commute; and

(II)

due to a change in location of the spouse’s employment.

(C)

Weekly unemployment compensation is payable under this subparagraph to any individual who is unemployed (as determined under the State unemployment compensation law), has exhausted all rights to regular unemployment compensation under the State law, and is enrolled and making satisfactory progress in a State-approved training program or in a job training program authorized under the Workforce Investment Act of 1998. Such programs shall prepare individuals who have been separated from a declining occupation, or who have been involuntarily and indefinitely separated from employment as a result of a permanent reduction of operations at the individual’s place of employment, for entry into a high-demand occupation. The amount of unemployment compensation payable under this subparagraph to an individual for a week of unemployment shall be equal to the individual’s average weekly benefit amount (including dependents’ allowances) for the most recent benefit year, and the total amount of unemployment compensation payable under this subparagraph to any individual shall be equal to at least 26 times the individual’s average weekly benefit amount (including dependents’ allowances) for the most recent benefit year.

(D)

Dependents' allowances are provided, in the case of any individual who is entitled to receive regular unemployment compensation and who has any dependents (as defined by State law), in an amount equal to at least $15 per dependent per week, subject to any aggregate limitation on such allowances which the State law may establish (but which aggregate limitation on the total allowance for dependents paid to an individual may not be less than $50 for each week of unemployment or 50 percent of the individual's weekly benefit amount for the benefit year, whichever is less).

(4)
(A)

Any State seeking an incentive payment under this subsection shall submit an application therefor at such time, in such manner, and complete with such information as the Secretary of Labor may within 60 days after the date of the enactment of this subsection prescribe (whether by regulation or otherwise), including information relating to compliance with the requirements of paragraph (2) or (3), as well as how the State intends to use the incentive payment to improve or strengthen the State’s unemployment compensation program. The Secretary of Labor shall, within 30 days after receiving a complete application, notify the State agency of the State of the Secretary’s findings with respect to the requirements of paragraph (2) or (3) (or both).

(B)
(i)

If the Secretary of Labor finds that the State law provisions (disregarding any State law provisions which are not then currently in effect as permanent law or which are subject to discontinuation) meet the requirements of paragraph (2) or (3), as the case may be, the Secretary of Labor shall thereupon make a certification to that effect to the Secretary of the Treasury, together with a certification as to the amount of the incentive payment to be transferred to the State account pursuant to that finding. The Secretary of the Treasury shall make the appropriate transfer within 7 days after receiving such certification.

(ii)

For purposes of clause (i), State law provisions which are to take effect within 12 months after the date of their certification under this subparagraph shall be considered to be in effect as of the date of such certification.

(C)
(i)

No certification of compliance with the requirements of paragraph (2) or (3) may be made with respect to any State whose State law is not otherwise eligible for certification under section 303 or approvable under section 3304 of the Federal Unemployment Tax Act.

(ii)

No certification of compliance with the requirements of paragraph (3) may be made with respect to any State whose State law is not in compliance with the requirements of paragraph (2).

(iii)

No application under subparagraph (A) may be considered if submitted before the date of the enactment of this subsection or after the latest date necessary (as specified by the Secretary of Labor) to ensure that all incentive payments under this subsection are made before October 1, 2011.

(5)
(A)

Except as provided in subparagraph (B), any amount transferred to the account of a State under this subsection may be used by such State only in the payment of cash benefits to individuals with respect to their unemployment (including for dependents’ allowances and for unemployment compensation under paragraph (3)(C)), exclusive of expenses of administration.

(B)

A State may, subject to the same conditions as set forth in subsection (c)(2) (excluding subparagraph (B) thereof, and deeming the reference to subsections (a) and (b) in subparagraph (D) thereof to include this subsection), use any amount transferred to the account of such State under this subsection for the administration of its unemployment compensation law and public employment offices.

(6)

Out of any money in the Federal unemployment account not otherwise appropriated, the Secretary of the Treasury shall reserve $7,000,000,000 for incentive payments under this subsection. Any amount so reserved shall not be taken into account for purposes of any determination under section 902, 910, or 1203 of the amount in the Federal unemployment account as of any given time. Any amount so reserved for which the Secretary of the Treasury has not received a certification under paragraph (4)(B) by the deadline described in paragraph (4)(C)(iii) shall, upon the close of fiscal year 2011, become unrestricted as to use as part of the Federal unemployment account.

(7)

For purposes of this subsection, the terms benefit year, base period, and week have the respective meanings given such terms under section 205 of the Federal-State Extended Unemployment Compensation Act of 1970 (26 U.S.C. 3304 note).

(g)

Special transfer in fiscal year 2009 for administration

(1)

In addition to any other amounts, the Secretary of the Treasury shall transfer from the employment security administration account to the account of each State in the Unemployment Trust Fund, within 30 days after the date of the enactment of this subsection, the amount determined with respect to such State under paragraph (2).

(2)

The amount to be transferred under this subsection to a State account shall (as determined by the Secretary of Labor and certified by such Secretary to the Secretary of the Treasury) be equal to the amount obtained by multiplying $500,000,000 by the same ratio as determined under subsection (f)(1)(B) with respect to such State.

(3)

Any amount transferred to the account of a State as a result of the enactment of this subsection may be used by the State agency of such State only in the payment of expenses incurred by it for—

(A)

the administration of the provisions of its State law carrying out the purposes of subsection (f)(2) or any subparagraph of subsection (f)(3);

(B)

improved outreach to individuals who might be eligible for regular unemployment compensation by virtue of any provisions of the State law which are described in subparagraph (A);

(C)

the improvement of unemployment benefit and unemployment tax operations, including responding to increased demand for unemployment compensation; and

(D)

staff-assisted reemployment services for unemployment compensation claimants.

.

(b)

Regulations

The Secretary of Labor may prescribe any regulations, operating instructions, or other guidance necessary to carry out the amendment made by subsection (a).

B

Assistance for Vulnerable Individuals

2101.

Emergency fund for TANF program

(a)

In general

Section 403 of the Social Security Act (42 U.S.C. 603) is amended by adding at the end the following:

(c)

Emergency fund

(1)

Establishment

There is established in the Treasury of the United States a fund which shall be known as the Emergency Contingency Fund for State Temporary Assistance for Needy Families Programs (in this subsection referred to as the Emergency Fund).

(2)

Deposits into fund

Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated such sums as are necessary for payment to the Emergency Fund.

(3)

Grants

(A)

Grant related to caseload increases

(i)

In general

For each calendar quarter in fiscal year 2009 or 2010, the Secretary shall make a grant from the Emergency Fund to each State that—

(I)

requests a grant under this subparagraph for the quarter; and

(II)

meets the requirement of clause (ii) for the quarter.

(ii)

Caseload increase requirement

A State meets the requirement of this clause for a quarter if the average monthly assistance caseload of the State for the quarter exceeds the average monthly assistance caseload of the State for the corresponding quarter in the emergency fund base year of the State.

(iii)

Amount of grant

Subject to paragraph (5), the amount of the grant to be made to a State under this subparagraph for a quarter shall be 80 percent of the amount (if any) by which the total expenditures of the State for basic assistance (as defined by the Secretary) in the quarter, whether under the State program funded under this part or as qualified State expenditures, exceeds the total expenditures of the State for such assistance for the corresponding quarter in the emergency fund base year of the State.

(B)

Grant related to increased expenditures for non-recurrent short term benefits

(i)

In general

For each calendar quarter in fiscal year 2009 or 2010, the Secretary shall make a grant from the Emergency Fund to each State that—

(I)

requests a grant under this subparagraph for the quarter; and

(II)

meets the requirement of clause (ii) for the quarter.

(ii)

Non-recurrent short term expenditure requirement

A State meets the requirement of this clause for a quarter if the total expenditures of the State for non-recurrent short term benefits in the quarter, whether under the State program funded under this part or as qualified State expenditures, exceeds the total such expenditures of the State for non-recurrent short term benefits in the corresponding quarter in the emergency fund base year of the State.

(iii)

Amount of grant

Subject to paragraph (5), the amount of the grant to be made to a State under this subparagraph for a quarter shall be an amount equal to 80 percent of the excess described in clause (ii).

(C)

Grant related to increased expenditures for subsidized employment

(i)

In general

For each calendar quarter in fiscal year 2009 or 2010, the Secretary shall make a grant from the Emergency Fund to each State that—

(I)

requests a grant under this subparagraph for the quarter; and

(II)

meets the requirement of clause (ii) for the quarter.

(ii)

Subsidized employment expenditure requirement

A State meets the requirement of this clause for a quarter if the total expenditures of the State for subsidized employment in the quarter, whether under the State program funded under this part or as qualified State expenditures, exceeds the total of such expenditures of the State in the corresponding quarter in the emergency fund base year of the State.

(iii)

Amount of grant

Subject to paragraph (5), the amount of the grant to be made to a State under this subparagraph for a quarter shall be an amount equal to 80 percent of the excess described in clause (ii).

(4)

Authority to make necessary adjustments to data and collect needed data

In determining the size of the caseload of a State and the expenditures of a State for basic assistance, non-recurrent short-term benefits, and subsidized employment, during any period for which the State requests funds under this subsection, and during the emergency fund base year of the State, the Secretary may make appropriate adjustments to the data to ensure that the data reflect expenditures under the State program funded under this part and qualified State expenditures. The Secretary may develop a mechanism for collecting expenditure data, including procedures which allow States to make reasonable estimates, and may set deadlines for making revisions to the data.

(5)

Limitation

The total amount payable to a single State under subsection (b) and this subsection for a fiscal year shall not exceed 25 percent of the State family assistance grant.

(6)

Limitations on use of funds

A State to which an amount is paid under this subsection may use the amount only as authorized by section 404.

(7)

Timing of implementation

The Secretary shall implement this subsection as quickly as reasonably possible, pursuant to appropriate guidance to States.

(8)

Definitions

In this subsection:

(A)

Average monthly assistance caseload

The term average monthly assistance caseload means, with respect to a State and a quarter, the number of families receiving assistance during the quarter under the State program funded under this part or as qualified State expenditures, subject to adjustment under paragraph (4).

(B)

Emergency fund base year

(i)

In general

The term emergency fund base year means, with respect to a State and a category described in clause (ii), whichever of fiscal year 2007 or 2008 is the fiscal year in which the amount described by the category with respect to the State is the lesser.

(ii)

Categories described

The categories described in this clause are the following:

(I)

The average monthly assistance caseload of the State.

(II)

The total expenditures of the State for non-recurrent short term benefits, whether under the State program funded under this part or as qualified State expenditures.

(III)

The total expenditures of the State for subsidized employment, whether under the State program funded under this part or as qualified State expenditures.

(C)

Qualified State expenditures

The term qualified State expenditures has the meaning given the term in section 409(a)(7).

.

(b)

Temporary modification of caseload reduction credit

Section 407(b)(3)(A)(i) of such Act (42 U.S.C. 607(b)(3)(A)(i)) is amended by inserting (or if the immediately preceding fiscal year is fiscal year 2009 or 2010, then, at State option, during the emergency fund base year of the State with respect to the average monthly assistance caseload of the State (within the meaning of section 403(c)(8)(B))) before under the State.

(c)

Effective date

The amendments made by this section shall take effect on the date of the enactment of this Act.

2102.

One-time emergency payment to SSI recipients

(a)

Payment authority

(1)

In general

At the earliest practicable date in calendar year 2009 but not later than 120 days after the date of the enactment of this section, the Commissioner of Social Security shall make a one-time payment to each individual who is determined by the Commissioner in calendar year 2009 to be an individual who—

(A)

is entitled to a cash benefit under the supplemental security income program under title XVI of the Social Security Act (other than pursuant to section 1611(e)(1)(B) of such Act) for at least 1 day in the calendar month in which the first payment under this section is to be made; or

(B)
(i)

was entitled to such a cash benefit (other than pursuant to section 1611(e)(1)(B) of such Act) for at least 1 day in the 2-month period preceding that calendar month; and

(ii)

whose entitlement to that benefit ceased in that 2-month period solely because the income of the individual (and the income of the spouse, if any, of the individual) exceeded the applicable income limit described in paragraph (1)(A) or (2)(A) of section 1611(a) of such Act.