An amendment in the nature of a substitute numbered 11 printed in Part B of House Report 111-9 to strike everything after enacting clause and adds income tax rate deductions for bottom two income tax brackets, alternative minimum tax relief, small business deduction, bonus depreciation, small business expensing, expanded carryback of net operating losses, improved home buyer credit, unemployment benefit tax exemption, health insurance premium deduction, repeal of 3 percent withholdings requirement for government contractors, extension of unemployment benefits, and a Sense of Congress against tax increases to offset outlays.

AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009

  The SPEAKER pro tempore. Pursuant to House Resolution 92 and rule
XVIII, the Chair declares the House in the Committee of the Whole House
on the State of the Union for the further consideration of the bill,
H.R. 1.

                              {time}  1256


                     In the Committee of the Whole

  Accordingly, the House resolved itself into the Committee of the
Whole House on the State of the Union for the further consideration of
the bill (H.R. 1) making supplemental appropriations for job
preservation and creation, infrastructure investment, energy efficiency
and science, assistance to the unemployed, and State and local fiscal
stabilization, for fiscal year ending September 30, 2009, and for other
purposes, with Mr. Tierney in the chair.
  The Clerk read the title of the bill.
  The CHAIR. When the Committee of the Whole rose on Tuesday, January
27, 2009, all time for general debate pursuant to House Resolution 88
had expired.
  Pursuant to House Resolution 92, further general debate shall be
confined to the bill and amendments specified in that resolution and
shall not exceed 1 hour equally divided and controlled by the chairman
and ranking minority member of the Committee on Appropriations.
  The gentleman from Wisconsin (Mr. Obey) and the gentleman from
California (Mr. Lewis) each will control 30 minutes.
  The Chair recognizes the gentleman from Wisconsin.
  Mr. OBEY. Mr. Chairman, I yield to the gentlewoman from New York for
a unanimous consent request.
  (Mrs. MALONEY asked and was given permission to revise and extend her
remarks.)
  Mrs. MALONEY. I thank the gentleman for yielding and for his
leadership on this tremendously important bill, and I place in the
Record my statement in strong support of the American Recovery and
Reinvestment Act.
  Mr. Chair, the current economic crisis requires bold solutions that
address the enormity of our economic woes, and the American Recovery
and Reinvestment Plan will do just that.
  The $825 billion recovery package that we are voting on will create
or save an estimated 4 million jobs and will make key investments in
our future.
  But first and foremost, the economic recovery package focuses on
blunting the effects of the recession and helping families in need.
  In addition to increasing food stamp benefits and expanding
unemployment benefits, our plan protects health care coverage for
roughly 20 million Americans during this recession by increasing the
Federal Medicaid Assistance Percentage (FMAP) so that no state has to
cut eligibility for Medicaid and SCHIP, the children's health insurance
program, because of budget shortfalls.
  For my home state of New York it more than doubles the FMAP match
resulting in roughly $10.42 billion over 9 quarters. This is critical
funding for our state which is seeing an increase in caseloads as a
result of the recession.
  The recovery plan also invests in important needs that have been
neglected over the past eight years. America's school, roads, bridges,
and water systems are in disrepair and this is creating a drag on
economic growth.
  Our plan will spread job creation out over the next two years, which
will soften the downturn and foster a solid economic recovery.
  We have an historic opportunity to make the investments necessary to
modernize our public infrastructure, transition to a clean energy
economy, and make us more competitive in the 21st century.
  It's time to get our economy back on track. I urge my colleagues to
support the American Recovery and Reinvestment Plan.
  Mr. OBEY. Mr. Chairman, I yield myself 5 minutes.
  Mr. Chairman, this economy is in crisis. The financial system of the
country is in crisis. Retirement plans of millions of Americans have
been destroyed. Families are angered and terrified. They see layoffs
happening all around them. They and their friends are not only losing
their jobs, they are losing health coverage. They are losing their
ability to help their kids pay for college education.
  President Bush, when he saw the initial stages of the problem, got
Congress to give him $750 billion to try to calm the chaos on Wall
Street.

                              {time}  1300

  President Obama is now looking for action to help Main Street. This
package is designed to create jobs through construction and through
changing the way we do business in the field of energy. It attempts to
try to help victims of the recession by providing unemployment
insurance, by increasing their ability to get Medicaid coverage if they
lose their health care coverage and by increasing their ability to be
able to afford COBRA payments if they lose their health insurance. This
proposal is also aimed at rebuilding the economy, especially by
changing the way this economy works in the energy area, in the science
area and in the technology area. And I think we need to be about
getting that done.
  This bill is hugely expensive. But it is not nearly so costly as
continuing business as usual. It has a big price tag because we are
dealing with a big problem.
  Unfortunately, the debate has been incredibly trivialized. Last
night, for instance, we heard speaker after speaker discuss the need to
act. But then they would say, ``Well, I can't vote for this package
because it contains money for the arts or money for the Mall.'' I would
like to put those two items in perspective.
  The arts funding in this bill is a tiny fraction of this entire bill.
The arts expenditure in this bill represents about 6 cents out of every
$1,000 contained in this legislation. People ask, well, what does
funding for the arts have to do with jobs? It is very simple. People in
the arts field are losing their jobs just like anybody else. You have
local arts agencies, you have local orchestras, local symphonies and
local arts groups of all kinds who are shutting down, laying people
off, and in a number of instances going bankrupt. This is a small, tiny
effort to keep some of those people employed over the next 2 years. I
make no apology for it. We have an obligation to salvage as many jobs
as we can regardless of the fields in which people work.
  The second issue is the Mall. People say, ``Well, goodness gracious,
what on Earth does spending for the Mall have to do with creating
jobs?'' Well, Mr. Chairman, I would point out that, again, the funding
for the Mall represents about 25 cents of every $1,000 in this bill, a
tiny, tiny fraction. Three-quarters of that amount was directed at
trying to preserve the Jefferson Memorial which is slowly sinking into
the Tidal Basin and needs to be salvaged. But because these items have
become such distractions, we've decided to take several items out. So
the Mall is gone. We don't have to worry about refurbishing the Mall
any more. That will have to wait for another time.
  My point in discussing these two items is to simply express my regret
at the way this debate has been trivialized. But I also think that it
is revealing because I think it tells us what is really going on. And
in my view, what is going on is this. At least one of the leaders in
the Republican Caucus advised his caucus members that the way for the
Republican minority to behave was to behave ``like a thousand
mosquitoes'' to harass the majority. That may suit somebody's
legislative style. It would not suit mine.
  The CHAIR. The time of the gentleman has expired.
  Mr. OBEY. I yield myself 3 additional minutes.
  But I think that comment is revelatory because that, for all
practical purposes, is what we saw last night, many Members behaving
like mosquitoes, focusing on trivia and ignoring the big picture. Some
people will say, ``Oh, you're moving too fast.'' I would point out,
this work should have been done 3 and 4 months ago. Some of us tried in
September to pass a very small economic recovery package. The then-Bush
White House would have no part of it. They were not interested. So
we've had to wait until now. But it is now essential for us to move.
We've got to get this job on the road. Every week that we delay is
another 100,000 or more people unemployed. I don't think we want that
on any of our consciences.
  This package is aimed at creating jobs. It's aimed at helping people
who

[[Page H621]]

are most impacted by the recession. And it is aimed at trying to
modernize and freshen parts of the economy so that we can rebuild the
ability of middle-income families to actually increase their income
over time.
  Mr. Chairman, the main reason we're in this fix today is because over
the last almost 20 years or more, we have had very little wage growth
and very little income growth on the part of average working families
in this country. In fact, if you go back to the year 2001, 95 percent
of the income growth in this country has gone into the pockets of the
wealthiest 10 percent of American families. That means that the other
90 percent, the great middle American family swath, those families have
been trying to keep their heads above water. And how have they been
doing it? By borrowing. So they borrowed for housing. They borrowed for
tuition. They borrowed for health care. They borrowed for a lot of
other things. And now the rubber band has finally snapped. The markets
are in chaos, people are panicked, and we've got to try to do something
to stabilize the situation. We have to try to reinflate the purchasing
power of consumers, and we have to do it in such a way that we build an
opportunity for average working families to raise their income again so
that they aren't beset by the same economic problems that they were
beset by the last 10 years.
  With that, Mr. Chairman, I would urge an ``aye'' vote for this
package.
  I reserve the balance of my time.
  The CHAIR. The Chair recognizes the gentleman from California.
  Mr. LEWIS of California. Mr. Chairman, I very much appreciate your
recognizing this mosquito who is rising to urge people to look very,
very carefully at this package before they decide to vote ``yes'' or
``no,'' but specifically for those who really want to see our new
President have a chance at success over these next couple of years.
Indeed we are going to need as many people positively addressing this
huge package as we possibly can.
  The CHAIR. Does the gentleman from California wish to yield himself
such time as he may consume?
  Mr. LEWIS of California. I very much appreciate the Chairman asking
that question, and since you did, I will yield myself such time as I
may consume.
  I am very, very intrigued by my colleague suggesting that this bill
really shouldn't bother too many people because it's long overdue and
certainly desperately needed. And indeed, he was almost mocking some of
those questions raised yesterday about programs, people suggesting that
the money that we're talking about for the arts in some way is not
stimulus, that the money that we might put in the National Mall in some
ways isn't really meaningful stimulus. I have the bill here on my desk.
Someone wrote earlier that the cost of this bill is approximately $1.18
billion per page.
   It's about time we began to recognize that the money we're talking
about is not just huge in terms of numbers of dollars, but potentially
a very huge burden on future generations of Americans. As we debate
this stimulus package, we're throwing around an awful lot of big
numbers. But let's be very clear that these big numbers are real
dollars and that real families are involved. In my own family, we have
seven children, my wife and I, and from that some 11 grandchildren.
Those grandchildren are going to be paying for this all their lifetime,
long after the chairman and I are angels. If every American family were
asked equally to shoulder the burden of this $816 billion stimulus
package, it would be like asking to take on an additional $10,247 for
each family.
  Our constituents are already facing unprecedented economic
challenges. They want credible economic stimulus.
  I remember the chairman suggesting throughout this discussion that he
spent an awful lot of time with us in consultation looking for input as
to what ought to be in this package. I remember the first session that
he and I had in his office. It wasn't a long session, but it was a
stimulating one in which he suggested that the package that was going
to come forth would likely be designed to stimulate the economy to
create jobs. And he talked about infrastructure as being one of the
major items. My goodness. The infrastructure in this bill, the
infrastructure spending is something less than 10 percent of the whole
package. And for shovel-ready projects, it is smaller than that. I also
remember the second session I had with my chairman regarding this
matter. We spent almost a whole hour together in that discussion. He
asked if I had a pencil so I could write down some of the numbers. He
was going to describe what might be a part of the package. I was really
thrilled he was going to be that personal with his ranking member on
the committee and actually get involved so we would have a chance to
evaluate it. And my chairman, as he was watching me make notes and my
staff making notes, decided probably not to tell me that a day and a
half later he was issuing a 15-page press release before the bill had
been filed that went into a considerable amount of detail, considerably
more than he shared with either his ranking member or any of the rest
of the members, at least on my side of the aisle, in the Appropriations
Committee.
  It is my understanding that many a subcommittee chairman, or at least
their staff, were told very specifically that there was an embargo
relative to their communicating and sharing information with our
subcommittee staff people as well as subcommittee members. The minority
was not included in developing this package. And it has become a
horrendous package that is going to place a burden on the American
people for a lifetime.
  While Members are proceeding with nothing but good intentions in this
package, let us be mindful of the fact that this additional burden will
be placed squarely on the backs of our children. But also let us be
mindful of the fact that next week we are going to be considering an
omnibus package that involves over 410 billion additional dollars. And
we didn't get the work done. Indeed, that package is going to come to
us with all kinds of funding that should have been done and should be
available already. But the chairman chose to put that spending on the
shelf in order to develop this stimulus package with others in his
leadership.
  I presume what that really means is that within this bill is all
kinds of funding that had its beginning within those nine other bills
that now we are going to eventually get to next week. You combine TARP
with this package, you take a look at that 400 plus billion dollars,
people have been talking about additional interest costs--we are
talking about in a very short period of time over $1.5 trillion that
the majority is running forward with, with very little concern about
the impact that this might very well have on our grandchildren.

                              {time}  1315

  I must say that many of us feel a little sorry for what this work
will do to our families.
  Mr. Chairman, I reserve the balance of my time.
  Mr. OBEY. Mr. Chairman, I yield myself 1 minute.
  Mr. Chairman, the minority continually spouts the myth that the
minority was not allowed to be involved in the development of this
legislation. Here are the facts:
  In September, when we developed our first recovery package, I
specifically asked the ranking minority member of this committee to
please let us know what he felt ought to be in that package and what
shouldn't.
  In December, we held a hearing with a number of governors and other
witnesses on the issue of a stimulus or recovery package. The ranking
minority member urged Republican members of the committee not to show
up at that hearing, and only three did.
  In December again, I sent a letter to every member of the
Appropriations Committee, Republican and Democratic alike, asking them
for their input. We got a lot of suggestions from both sides of the
aisle, although obviously a number of the Republican members preferred
to provide their information on a confidential basis because they
evidently felt----
  The CHAIR. The time of the gentleman has expired.
  Mr. OBEY. I yield myself an additional minute. They evidently felt
they were being discouraged from participating so that it would be
easier for them to vote ``no'' on the final package.
  On January 11, I sat down with the ranking member of this committee
and discussed in general terms where I

[[Page H622]]

thought the bill was going and again urged that we be given any
information about what program levels they thought were appropriate;
got no real indication of interest.
  On January 13, I met and went over what we were thinking about doing
in detail with the ranking member of this committee. And again, we got
very little indication that there was any real interest at the top of
the power ladder in the Republican Caucus in having the Republicans
participate in this process.
  So if someone says, ``I'm sorry I was shut out,'' but it is they who
turned the key in the lock that kept them on the outside, that
certainly isn't our fault. We have tried to welcome any advice, any
suggestions from any source--not just Members of Congress, but others
in this society--and this product reflects that.
  Mr. LEWIS of California. Mr. Chairman, I yield myself such time as I
may consume.
  Mr. Chairman, I normally would not proceed in this fashion, but I
could have guessed that the chairman might react to some of those
remarks that I made--especially remarks about his falling over
backwards to cooperate with the minority--so I would like to take a
little time to be very specific about this.
  I appreciate Chairman Obey making the point that he reached out to
the minority on the stimulus package. He did reach out to me, as the
ranking member of the Appropriations Committee, and I made three
suggestions relating to how the bill could become a bill that many
Republicans could support.
  I suggested that Chairman Obey consider less spending, and especially
removing spending for those items that are not stimulus and should be
funded through the regular appropriations process. What happened?
Spending on programs that don't create jobs actually increased,
particularly those in the Labor, Health and Human Services Subcommittee
that Chairman Obey chairs himself.
  I suggested that Chairman Obey consider lowering the top line of
spending on this package. What happened? The top line on spending
actually increased.
  I suggested a greater emphasis on targeted tax cuts for low-income
families and small businesses. What happened? The tax relief portion of
this stimulus bill got smaller as the top line on spending increased.
  It's one thing to seek constructive input in the hopes of building
bipartisan consensus on a bill as important as this package, but that
clearly has not happened. Judging from the legislation as presently
written, it's quite clear that the majority's desire is less about
creating jobs and stimulating the economy and more about spending the
public's money.
  Do not for one minute believe that this bill reflects the input of
House Republicans or even many House Democrats. This bill was largely
written by two people. Any suggested negotiations on this legislation
occurred between the Speaker and my chairman, Mr. Obey. That's not a
negotiation, that is a travesty, a mockery, a sham. Wow! What a shame
to waste a historic opportunity to bring Republicans and Democrats
together to roll up our sleeves and work in a bipartisan fashion.
  It's not too late to make this a better bill, a bipartisan bill. As I
said in my opening remarks, I sincerely want the President to be
successful. The challenges we face do transcend politics. If the
President or his staff are listening, I ask them to pursue
bipartisanship so this can be a package both Democrats and Republicans
will support.
  I say one more time, travesty begins when there's a flat embargo at a
subcommittee level when our majority staff is told they shouldn't be
communicating with the minority staff. Bipartisanship is the best of
our committee, and if this pattern continues, our committee is not
going to be able to continue to produce products worthy of its name.
  Mr. Chairman, I reserve the balance of my time.
  Mr. OBEY. Mr. Chairman, I yield 2 minutes to the distinguished
majority whip.
  Mr. CLYBURN. I thank the gentleman for yielding time and thank him so
much for all that he's done to put together this great package.
  Mr. Chairman, I rise in strong support of this balanced, responsible
recovery package that will put America back to work. I want to thank--
in addition to Chairman Obey--Speaker Pelosi, Chairman Rangel, Chairman
Oberstar, Chairman Miller, Chairwoman Slaughter, and all the other
chairmen who have made sure that the bill reflected the pressing needs
of our economy.
  I also would like to thank the staffs who worked so diligently in
constructing this bill, particularly Amy Rosenbaum in the Speaker's
office, Beverly Pheto of the Appropriations Committee, Janice Mayes of
Ways and Means, and David Hensfelt of Transportation and
Infrastructure.
  I have listened intently to the opponents of this legislation, and
per their usual prescription, they tell us that only tax cuts can cure
this recession. But Mr. Chairman, what good is a tax cut when you don't
have a job? America works when Americans work.
  In South Carolina, my home State, the unemployment rate is 9.5
percent, the third highest in the Nation. More than 26,000 South
Carolinians joined the jobless ranks last month, raising the total
number of unemployed in the State to a record 210,000.
  Our package is balanced. It has middle class tax cuts, it has
business tax cuts, it has investments in our physical infrastructure.
It is the right mix of spending and tax breaks to get America working
again.
  This legislation is pro-growth and pro-business. Allow me to quote
from the letter that the National Association of Manufacturers sent
yesterday. ``We strongly support a number of provisions in the American
Recovery and Reinvestment Act. This legislation--which combines
targeted tax incentives and increased investments in areas critical to
our competitiveness--will help get our Nation's economy back on track
and ensure job creation and sustainable economic growth.''
  The CHAIR. The time of the gentleman has expired.
  Mr. OBEY. I yield 1 additional minute.
  Mr. CLYBURN. I also have a stack of letters from business
organizations, all endorsing this package, including the National Black
Chamber of Commerce, the Community Bankers, and the National
Association of Realtors.
  President Obama was joined by a dozen CEOs this morning who have
endorsed this package. We have a letter from 120 high-tech CEOs
endorsing the investments we make in our digital infrastructure.
  So in closing, Mr. Chairman, Fortune 100 CEOs from all sectors are
telling us that this is the right course of action. I urge my
colleagues to choose progress over partisanship. Vote ``yes'' on this
recovery package. And let's put Americans back to work.

                                              National Association


                                             of Manufacturers,

                                 Washington, DC, January 27, 2009.
     Hon. Nancy Pelosi,
     Speaker of the House, House of Representatives, Washington,
         DC.
     Hon. John Boehner,
     Minority Leader, House of Representatives, Washington, DC.
     Hon. Steny Hoyer,
     Majority Leader, House of Representatives, Washington, DC.
     Hon. Eric Cantor,
     Minority Whip, House of Representatives, Washington, DC.
     Hon. James Clyburn,
     Majority Whip, House of Representatives, Washington, DC.
       Dear Madam Speaker, Leader Hoyer, Leader Boehner,
     Congressman Clyburn, and Congressman Cantor: The National
     Association of Manufacturers (NAM) is gratified by the
     commitment of the bipartisan, bicameral Congressional
     leadership and the Obama Administration to move quickly on a
     legislative package to help get America working again.
     Manufacturers recognize that immediate action is needed to
     address the unprecedented challenges faced by all sectors of
     the economy.
       NAM members believe a balanced tax and investment package
     designed to have an immediate impact on job providers and the
     people who depend on them, will go a long way to spur
     economic revitalization. To this end, we strongly support a
     number of provisions in the American Recovery and
     Reinvestment Act scheduled for debate this week. This
     legislation--which combines targeted tax incentives and
     increased investment in areas critical to our
     competitiveness--will help get our nation's economy back on
     track and ensure job creation and sustainable economic
     growth.
       In particular, the NAM supports the following measures:
       Tax Relief for Struggling Companies: Net operating loss
     (NOL) relief has a proven

[[Page H623]]

     track record of helping companies through tough times.
     Extending the carry back period to five years will provide an
     immediate infusion of cash for struggling companies of all
     sizes, in a broad, cross-section of industries. The loss
     carry back extension will help companies retain jobs, make
     critical investments and, in some cases, simply keep their
     doors open.
       Broad Investment Incentives: Capital investment is key to
     sustainable economic growth and job creation. Extending the
     2008 ``enhanced'' expensing and ``bonus depreciation''
     provisions that allow all companies to take a current 50
     percent write-off will help spur needed investment.
       Housing: The housing market collapse remains at the core of
     our nation's economic crisis and it is critical that any
     economic recovery plan include proposals to stabilize and
     revitalize the housing industry. The proposed enhancements to
     the home buyers' tax credit will encourage people to reenter
     the housing market, helping to retain and create job
     opportunities in numerous housing-related industry sectors.
       Energy Efficiency and Renewable Energy: Energy efficiency
     upgrades can reduce energy costs. Proposed new incentives and
     extensions and enhancements of existing provisions will
     encourage investment in energy efficient equipment and
     sources of renewable energy. While we support an investment
     strategy to achieve energy efficiency, the NAM would oppose
     mandates that lock in higher energy costs for manufacturers.
     We continue to believe that the adequacy of domestic energy
     supply remains one of the biggest challenges impacting
     manufacturers and their decisions on where to locate.
       Highway, Aviation and Waterways: Providing additional
     funding to states and localities struggling to make progress
     on the growing backlog of transportation infrastructure
     projects will go a long way to strengthen our nation's
     transportation infrastructure, a critical priority for
     manufacturers. Similarly, funding a 21st century satellite-
     based air traffic control system will significantly enhance
     safety and energy efficiency while relieving congestion at
     our nation's crowded airports. Likewise, fully funding the
     Army Corps of Engineers water resources program will address
     millions of dollars of unmet needs related to high priority
     operations and maintenance along the inland waterway system.
       Water and Sewer Facilities: Funding to update and modernize
     our nation's drinking and wastewater infrastructure will help
     promote sound environmental policy and manufacturing
     competitiveness, while providing manufacturing and
     construction jobs.
       Health Information Technology: Rising health care costs are
     a significant concern because they limit manufacturers'
     ability to create new jobs or invest in new technologies,
     ideas, or products. New funding and incentives to promote the
     widespread adoption of a uniform, interoperable system of
     health information technology (HIT) will increase
     transparency, reduce medical costs and improve the quality of
     patient care.
       Workforce Development: Many unemployed workers are not
     trained in the techniques and technologies necessary to fill
     a number of the jobs existing today and those that would be
     created by the stimulus package. These technical jobs require
     either postsecondary training or specific skills, which is
     why this must be an important component of any economic
     stimulus.
       Broadband: Initiatives to promote the deployment of high-
     speed broadband infrastructure in unserved and underserved
     areas will help ensure that high-speed Internet service is
     available everywhere in America. Benefits will be felt
     immediately in business, education and healthcare.
       Basic R&D: Federal funding for basic research and
     development by the Department of Energy's Office of Science,
     the Department of Commerce's National Institute of Standards
     and Technology (NIST) and the National Science Foundation
     will support our nation's ability to strengthen innovation in
     industries, foster a green economy and create new jobs in
     cutting-edge technologies.
       The NAM recognizes that action by the House of
     Representatives will be a significant step. We urge you to
     move expeditiously to address our economic crisis. Throughout
     the debate in the House and Senate, we are committed to
     working with you to strengthen the American Recovery and
     Reinvestment Act with additional provisions that will also
     create jobs and have a highly beneficial impact on our
     economy, including needed pension changes, additional tax
     relief to accelerate clean coal technologies, incentives to
     bring foreign earnings back to the United States, expansion
     of domestic energy resources, such as offshore exploration,
     and expansion of our nuclear energy infrastructure.
       If the National Association of Manufacturers can provide
     any information on these or any other issues, please do not
     hesitate to call me at (202) 637-3000.
       Thank you for your leadership.
           Sincerely,
                                                      John Engler,
     President and CEO.
                                  ____



                                          Business Roundtable,

                                 Washington, DC, January 27, 2009.
       To Members of the U.S. House of Representatives: Business
     Roundtable supports the Administration and Congress' goal to
     develop an economic package to put our economy back on the
     path of long-term growth and urges swift action.
       In working with the Congress and Administration to put
     together this critically important economic package, Business
     Roundtable relied on several key principles that we believe
     are necessary to ensure growth and which are being
     incorporated into both the House and Senate bills: provide
     middle class tax relief, which will increase American
     families' net incomes and bolster consumer confidence; repair
     and modernize our infrastructure, which will help put
     Americans back to work and enhance American competitiveness;
     stabilize the deteriorating housing market; enhance access to
     education and training so American workers can develop the
     skills needed to take on new jobs and more effectively
     compete in the global economy; and stimulate business
     investment.
       We are facing one of the most difficult periods in the
     history of the U.S. economy. Business Roundtable believes
     that a stimulus package that targets projects that can be
     rapidly deployed in the economy is the quickest way to
     stabilize the economy and create new jobs. With more than two
     million jobs lost in 2008--and accelerating job losses in the
     past three months--decisive action is needed if we are to
     return our economy to a path for growth and full employment
     and provide American workers and families with the
     opportunity to enhance their standards of living.
       To be effective quickly, the stimulus package needs to
     focus on areas of the economy that provide maximum effects in
     terms of new jobs and investments that will enhance our
     nation's ability to compete in the global economy. At the
     same time, it must reject policies, such as ``Buy American''
     and other restrictions, which would lead to further net job
     loss or cause additional economic deterioration. It is also
     important that the economy's response to any stimulus
     initiatives be carefully measured to ensure we are on a path
     to long-term, sustainable growth before the initiatives are
     withdrawn. As the Congress moves forward in shaping the
     stimulus package, it must ensure that these objectives are
     met.
       We recognize that the stimulus package will increase an
     already significant deficit in 2009. Business Roundtable
     always has placed a high priority on deficit reduction as a
     means to achieving sustained economic growth. However, an
     increase in the deficit is an unavoidable outcome at this
     critical time if we are to avert a prolonged and potentially
     deep recession. Nevertheless, high deficits are unacceptable
     over the long term. Once we return to solid economic footing,
     the Congress, the Administration and private sector need to
     work together quickly to implement measures to control future
     spending, including a comprehensive ``top down'' review of
     all federal spending.
       Business Roundtable's highest priority is to drive
     sustained growth in the U.S. economy in order to achieve
     higher living standards for all Americans. Our membership
     includes the CEOs of leading U.S. corporations. With a
     combined workforce of nearly 10 million employees and $5
     trillion in annual revenues we are on the front-lines of the
     battle to prevent a prolonged and deep recession and to
     return the economy to strong growth with new jobs.
       We look forward to working further with the House and
     Senate to finalize an emergency economic package that will
     work for all Americans--our workers, families, communities
     and companies.
           Sincerely,
                                               John J. Castellani,
                                                        President.

  Mr. LEWIS of California. Mr. Chairman, I yield 2 minutes to the
gentleman from California (Mr. Calvert).
  Mr. CALVERT. Mr. Chairman, I rise in opposition to this so-called
stimulus bill which seems only to stimulate one sector of our economy--
the government.
  As a person who was a small business person--a realtor and
restauranteur and a member of small business organizations--I can tell
you that most small businesses out there are in opposition to this
legislation.
  There is no doubt that our country is going through some difficult
economic times. There are many steps Congress can and should take to
get our economy back on a path to prosperity. Unfortunately, it appears
that the majority party is using our current economic woes to grow
government spending to epic and historic proportions.
  By way of comparison, in 1934, government spending reached about 11
percent of GDP in response to the Great Depression, and if passed, this
stimulus bill will increase government spending to 23 percent of GDP.
The question remains, what will all this spending get the American
people? Will it truly provide more middle class jobs or improve
infrastructure? The answer, sadly, is no. The bill provides a mind-
boggling $365 billion for Labor, Health and Human Services programs.
  The strategy under this bill is to throw billions of dollars in every
bureaucratic direction, cross our fingers, and hope for the best. Not
only are we wagering our future with this bill, but we're crossing a
point of no return. This bill moves us dramatically closer

[[Page H624]]

to a welfare state. It is forcing people who are the backbone of our
economy, the middle class, into a troubling kind of public dependency.
  Mr. Chairman, let us take time to truly do what is right for the
American people and provide targeted and limited stimulus through tax
cuts and spending on ready-to-build infrastructure that will really put
Americans back to work immediately. That's what my constituents want,
that's what they deserve.
  Let's not exploit this economic crisis to push legislation that will
increase the size and scope of the Federal Government above and beyond
anything our country has seen in its 233 years.
  Mr. OBEY. Mr. Chairman, I yield 1 minute to the distinguished
majority leader.
  Mr. HOYER. I thank the chairman of Appropriations for yielding, and I
want to thank him for the extraordinary work he has done to put this
package together. I want to thank Mr. Lewis for the work that he has
done as well, even though he may not agree with the final product.
  I want to start by remarks--and I may take a little bit of time--I
want to start my remarks talking about bipartisanship, and how we got
here and why we're here.
  Over a year ago, it appeared to us that the economic program adopted
in 2001 and 2003 was not working. It also appeared to the
administration that it was not working. It appeared to Mr. Boehner that
it was not working, that we were in real trouble, and that we weren't
producing jobs. We had the worst 8 years of job production that we've
had in any administration since Herbert Hoover. And as a result of the
failure to produce jobs, our country was in great distress and our
people were challenged and at risk.
  And so the administration and the Democratic leadership of the
Congress and the Republican leadership of the Congress sat down at the
table together and came up with a program to stimulate the economy,
about $160 billion. And we worked together in a bipartisan fashion. It
was a Republican President, but a Democratic-led Congress--in fact,
agreed to the administration's increase in that program, as you recall,
because we had suggested $100 billion--and we worked in a bipartisan
fashion.
  And then in September, some months later, Secretary Paulson, the
Republican Secretary of the Treasury, came to us, met with the
leadership, and said we have a crisis. Indeed, we had invited him down
because we thought that there was real trouble. He said we have a
crisis, we need to act, and we need to act immediately. A Democratic-
led Congress responded to Secretary Paulson and said, we'll work with
you. We'll work with you because our country needs a joint response.
And we did that.
  And when that legislation came to the floor, very frankly, a majority
of Democrats supported the Republican administration's request; a
majority of his party in this House did not. We now have a Democratic
administration and a Democratic-led Congress, and I'm hopeful that
we'll have bipartisan work continuing to meet this crisis caused, from
my perspective, by the failure of policies that we've been pursuing
economically over the last 8 years.

                              {time}  1330

  I do not say that for the purposes of being partisan. I say that for
the purposes of our being instructed on what has worked and what has
not worked.
  As you know, we're dealing with one of the worst economic climates in
memory: 2.6 million jobs last year; the worst housing market since the
Great Depression; financial turmoil that has threatened the savings and
retirement of millions. That's the context in which this administration
is taking office.
  As we move to confront this crisis, we welcome the criticism of our
Republican friends and others. But let's put that criticism in some
context, again, not for a partisan sense but for a sense of instruction
of the perception of what worked and what did not. I would suggest
that, frankly, much of what I have heard from my Republican colleagues
over the last 20 years in terms of what would work and what would not
work was inaccurate.
  Let's remember President Bush's saying, ``My administration remains
focused on economic growth that will create more jobs.'' Let's remember
how the minority party reacted to the Clinton economic plan in 1993.
Newt Gingrich said of that plan that it would lead to ``a job-killing
recession.'' A leader of the Republican Party made that observation. He
was dead, flat, 100 percent wrong. In fact, we created 22 point some
odd million jobs in those 8 years, an average of 256,000 per month.
This administration has averaged less than 40. You need 100 to stay
even.
  John Boehner, the Republican leader, said at that point in time,
``The message is loud and clear, cut spending first and shrink the size
of this Federal Government,'' in opposing the economic program.
  In reality, the Democratic plan led to unprecedented economic growth.
We all know that. The 1990s were the best economic period of time
statistically that we have had in this country in the service of
anybody in this Congress including the Reagan years.
  Let's remember how Republicans reacted to Budget Reconciliation Act
in 1990 when George Bush the first was President of the United States.
Tom DeLay said, ``The Democratic package will destroy our economy.''
Now, the Democratic package was, of course, an accommodation made
between President Bush; Dick Darman, head of OMB; and ourselves. In
reality, that program, opposed overwhelmingly by Republicans, reduced
the budget deficit by approximately $482 billion.
  What we have seen from our Republican colleagues is history, frankly,
of overstatement of what their program would do and a great
understatement of what the programs and policies that we pursued would
do. I would suggest that we consider the representations being made
today in that context. Today, I hope that our Republican colleagues
will put that history aside and join with us to pass this bill and try
to help restore our prosperity.
  None of us have served in this Congress at a lower ebb of the economy
than today. Nobody in this Congress including John Dingell, the Dean of
the Congress of the United States.
  The American Recovery and Reinvestment Act is projected to create or
save 3 to 4 million jobs. What does it do? I know Mr. Obey has said
this, but let me repeat it. Tax relief, $275 billion to working
Americans and to small businesses. States will be helped. Policemen,
teachers won't have to be laid off so that we can keep our communities
safe and our children educated. Core investments in infrastructure. I
know we'd like to do more in infrastructure. The sad news is it's tough
to spend it quickly in the infrastructure field. We need to do more. We
will do more.
  Protecting vulnerable populations. People are in food lines
historically long. People are unemployed in historic numbers. States
are stretched with their Medicaid assistance to people who need health
care.
  In energy, we have all talked about energy independence. We had a big
debate last year about energy independence and how to get there. This
bill deals with energy independence and creating jobs in the course of
getting to energy independence.
  Health care, we all know John McCain talked about it in his campaign.
Barack Obama talked about it in his campaign. Everybody knows that if
we don't get soon to health care reform and health care progress, we
won't be able to afford the kind of health care that Americans need and
want accessible to them and their families.
  Education, training, we're not going to be competitive in this world
if we don't make sure our children are well educated. We're pricing
young people and their families out of an education. We can't afford to
do that or we won't compete with the Japanese, the Chinese, the
Germans, the Indians, and others.
  Mark Zandi, a former economic adviser to Senator McCain's
presidential election, found that ``the jobless rate will be more than
2 percentage points lower by the end of 2010 than without the fiscal
stimulus.''
  I'm sure almost every Member of the House could find something that
he or she thinks should not be in here. I know I could. I know others
could. Some people want more in, some people want less in. But,
frankly, most of the economists I have talked to think

[[Page H625]]

this is about the right mix. It may not be specifically what each wants
but about the right mix between tax cuts and spending.
  This legislation is a result of an honest, urgent effort to include
the best ideas from economic experts from across the spectrum as well
as both sides of the aisle. It's an effort that cannot become weighed
down by bipartisanship or parochial interests. There are no earmarks in
this bill. Overall, this plan contains what is widely viewed as the
right mix of spending and tax cuts to spur our economy. It will include
tax relief for 95 percent of working families; tax cuts for job-
creating small businesses; projects to put Americans to work renewing
our crumbling roads and bridges; and nutrition, unemployment, and
health care assistance to those families who are being hit hardest by
this recession.
  This administration inherited the situation in which we find
ourselves. The Democratic leadership tried to work with the Bush
administration to get us out of it. Hopefully, we will continue to do
that in a bipartisan fashion.
  The Congressional Budget Office estimates that two-thirds of the
recovery funds will be spent in the first 18 months, which means an
immediate jolt to our economy. And we will continue working with
President Obama to increase that number.
  The CBO also estimates that if we pass this bill, by the end of next
year, America will have up to 3.6 million more jobs, 3.6 million more
Americans working and being able to support their families.
  Besides creating jobs immediately, we will invest in new energy
technology, upgrade our schools with 21 Century classrooms, and
computerize health records to reduce costs and improve care.
  All of those are investments that promise growth and savings in the
years to come to ensure that our Nation does not slip back after
bringing us out of recession, which is what this is designed to do. We
don't want it to slip back. So we have medium-term investment as well
as short-term investment.
  Finally, we have included in the recovery plan unprecedented levels
of accountability and transparency so we and our constituents will know
that their tax dollars are being spent on getting us out of a
rescission, not siphoned off to the politically connected. So there
will be no earmarks or pet projects in this bill. The new
Accountability and Transparency Board will be working to keep waste and
fraud far away from this bill. And all of the plan's details, all, will
be published online so that we and our constituents can track the
success of these efforts to turn our economy back into the productive
engine that it's been in the past.
  I close the way I started. We worked in a bipartisan fashion with the
Bush administration. When they saw a crisis, we responded. The majority
of our Members supported the programs suggested, promoted by the Bush
administration. We did so because we believed it was in the best
interest of our country. We move on this bill because we believe it's
in the best interest of our country.
  So I ask all of us, Democrats and Republicans, but people who care
about their country, their constituents, our families and our children,
to join together. Lyndon Johnson said once, ``It's not difficult to do
the right thing; it's difficult to know what the right thing is.'' We
have worked together over the last months to try to come up with as
close to the right thing as we can.
  We urge all of the Members on this floor to vote for America, its
people, its economic health. Support this legislation.
  Mr. LEWIS of California. Mr. Chairman, I yield 2 minutes to the
gentleman from Texas (Mr. Culberson).
  Mr. CULBERSON. Mr. Chairman, this magnificent Capitol Building houses
the greatest legislative bodies ever created in the history of
humanity, which were created because of a terrible abuse of power in
this Nation's history. And this legislation we are being asked to vote
on today, this 647-page bill, represents one of the worst abuses of
power I think that we've probably ever seen in the history of the
Congress.
  The legislative process has been terribly abused in the creation of
this bill because in a short 15-day legislative period, a short 21
days, the new ruling majority of Congress has in a single bill spent
more money than the entire annual budget of the United States. In a
short 21-day period, with virtually no committee hearings and a hearing
in the Appropriations Committee which lasted a matter of hours and a
hearing in Ways and Means which lasted a matter of hours, they've
created a bill which spends over $800 billion. In a period of 21 days,
the new majority, this new President has spent about $1.5 trillion, in
the first 21 days. That's the change America, unfortunately, has to
look forward to.
  We already face, Mr. Chairman, in this country an $11 trillion
national debt, a $1.5 trillion deficit, about $60 trillion in unfunded
liabilities. The most urgent question facing us as a Nation is how do
we pay for this massive accumulation of debt? A debt-based economy, as
my friend Dennis Kucinich said, who often votes on the other end of the
spectrum but shares with me the concern I have for the debt we are
passing on to our kids.
  And it is utterly irresponsible, it is immensely destructive to the
financial health of our Nation to govern in a way that shuts out the
American people. Shutting out the minority doesn't mean shutting out a
representative. It means shutting out the people we represent.
  The CHAIR. The time of the gentleman has expired.
  Mr. LEWIS of California. Mr. Chairman, I yield the gentleman an
additional minute.
  Mr. CULBERSON. You're not shutting out John Culberson or Jerry Lewis
or Jack Kingston. You're shutting out the 651,000 people that I
represent. Every one of us has a job description as representative, an
obligation to be accountable, open, responsive, transparent to our
constituents. This legislative process works best when the American
people are truly involved and have an opportunity to be educated and
told what we are voting on. And this bill was written in secret by
dedicated professional staff people but not with the involvement of the
American people.
  We have already been notified formally by Moody's that they're
considering beginning the process of downgrading the AAA bond rating of
the United States. And before you reach the merits of the bill, Mr.
Chairman, we must remember the process that we all have a sacred
obligation to preserve. The involvement, the advice, the input of the
American people is essential.
  I urge the majority to stand by their promise to be open,
accountable, and transparent. Lay it all out there on the Internet for
everyone to see. What are you afraid of? You've got the votes. Give the
public a chance to be heard. Let them read the bill.
  Mr. OBEY. Mr. Chairman, I yield myself 30 seconds.
  We are on the Internet. That's all I would say to the gentleman.
  Mr. Chairman, I yield 2 minutes to the distinguished gentleman from
Connecticut (Mr. Larson).

                              {time}  1345

  Mr. LARSON of Connecticut. I thank the distinguished chairman for his
incredible work bringing this legislation forward.
  Last week, 2 million of our fellow citizens stood on our Nation's
front lawn and brought their aspirations and hope as they listened to
President Barack Obama. His message was clear and realistic and
hopeful.
  We face, as they do here in this Chamber this day, at this moment, a
rendezvous with reality, the crushing reality of what the last 8 years
has brought to our American citizens. Our budget deficits, trade
deficits and debt have reached record levels.
  Unemployment has reached its highest level in 15 years. On Monday of
this week alone, 71,000 jobs were lost. Inflation is on the rise.
States are facing enormous budget shortfalls and are being forced to
cut services. My own home State of Connecticut is facing a $1 billion
deficit just this year.
  Our economy is in a deep, cavernous hole. Our climb out will be
steep, but it will be steady, and it will take hard work and sacrifice
that the President called upon, but it will also take innovation by the
American people, an investment in this country that we are

[[Page H626]]

making in putting forward here today in this package, this package,
this effort. This work is for those citizens who are not concerned
about 15 days, they are living moment to moment and counting on us as
we face this daunting reality to bring recovery, investment and hope by
redressing the reality that our constituents, who we are sworn to
serve, face every day.
  Mr. LEWIS of California. Mr. Chairman, I yield 3 minutes to the
gentleman from Georgia (Mr. Kingston).
  Mr. KINGSTON. I thank the chairman, and I wanted to respond to some
of the comments that my Democrat friends have been making. Number one,
we do want to work with them on this package. We met with President
Obama yesterday to pledge our support of turning this economy around.
We have offered a lot of good ideas, ideas that the House Democrats
have not embraced as of yet, but we hope that they will, because we
think President Obama and we made some progress yesterday.
  One of the things we talked about is extending tax breaks for small
businesses so that they can create more jobs. We think that is very
important.
  We talked about easing the credit crisis so people can go out and
borrow money and make investments in new jobs. We also talked about
housing, stabilizing the housing market so that people can become
homeowners.
  One of the things that's not in this package is also tax credits for
small businesses to purchase health care for their employees. We think
that would be very, very helpful. And also ending some of the unfunded
mandates that are strapping our cities and local governments.
  We believe we have a lot of good ideas. We are very disappointed that
this committee, Appropriations, only had one hearing and we were shut
out of some of the subsequent negotiation and crafting of this bill
that we think could have been helpful to do on a bipartisan basis.
  Now Mr. Hoyer had talked about history and how stimulus bills work.
Let's talk about the stimulus bills and let's talk about recent
history. I don't need to go back to Ronald Reagan.
  Last year, 2008, $29 billion for Bear Stearns, $168 billion for the
other stimulus package we just passed in May, $200 billion for Fannie
Mae bailout, $85 billion for AIG bailout, $700 billion for the TARP,
the Wall Street bailout. If this kind of spending worked, we would be
in great shape in our economy right now. But we keep throwing more and
more money on the problem to the extent that this country now has a
$10.6 trillion national debt.
  In fact, the interest on this package alone, Mr. Chairman, will be
$347 billion a year. And so this really isn't just an $825 billion
package, this is a $1.1 trillion expenditure. Who is going to pay for
it? Not people here today but our children and our children's children.
We are digging a hole.
  And where does this money come from? Three sources. You can tax
people, and I can tell you the working man is taxed to death right now.
And I am glad there is some tax relief in here for some people, but not
tax relief for everybody in the middle-income bracket, which is what we
desperately need. The second way we can do that is to print the money.
We print money, and it just leads to inflation. Or we can borrow the
money. Right now we owe foreign governments $3 trillion, China being
the number one lender to us at 22 percent, followed by Japan and
followed by Great Britain. We are digging a huge hole.
  The CHAIR. The time of the gentleman has expired.
  Mr. LEWIS of California. I yield the gentleman 1 additional minute.
  Mr. KINGSTON. Let me say this. I do think there should be a balance
of tax credits and a balance of public works spending in this bill, but
it is sad that while the National Endowment For the Arts gets $50
million--I don't know what kind of job creation that's going to do--but
$50 million, we only spend 7 percent on shovel-ready projects in the
year 2009, only 7 percent, and total public work spending for roads,
highways and bridges is about 13 percent.
  We can do better, and I would like to work with the Democrats and the
President, as would all the other Republicans, and try to make a better
package than what we are looking at today.
  Mr. OBEY. Mr. Chairman, I have only one remaining speaker, the
Speaker herself.
  The CHAIR. The gentleman from Wisconsin has the right to close.
  Mr. LEWIS of California. Mr. Chairman, I have many people who want to
speak on the bill, but they don't happen to be present, and I am very
anxious to hear the close.
  I yield back the balance of my time.
  Mr. OBEY. I thank the gentleman for his cooperation, and I yield our
remaining time to the distinguished Speaker, the gentlewoman from
California.
  Ms. PELOSI. I thank the gentleman for yielding and I thank him for
his tremendous leadership.
  Mr. Chairman, one week and one day ago our new President delivered a
great inaugural address that offered hope to the American people and a
new direction for our Nation. President Obama pledged ``action bold and
swift, not only to create new jobs but to lay a new foundation for
growth.''
  Today we are passing historic legislation that honors the promises
our new President made from the steps of the Capitol, promises to make
the future better for our children and our grandchildren. Only 8 days
after the President's address, this House will act boldly and swiftly--
by passing the American Recovery and Reinvestment Act to create and
save 3 million jobs by rebuilding America.
  That is why the bill has the support of 146 eminent economists,
including five Nobel Prize winners who, in a letter to Congress this
week stated, and I quote, ``The plan proposes important investments
that can start to overcome the Nation's damaging loss of jobs by saving
or creating millions of jobs and put the United States back onto a
sustainable long-term growth path.''
  On the steps of the Capitol, President Obama pledged to ``build the
roads and bridges, the electric grids and digital lines that feed our
commerce and bind us together'' and to ``restore science to its
rightful place, and wield technology's wonders to raise health care's
quality and lower its cost.''
  Today, we are acting swiftly and boldly to do just that. To assert
America's role as a world leader in a competitive global economy, we
are renewing America's investments in basic research and development,
in health care IT and in deploying new technologies into the
marketplace.
  That is why this legislation has the support of more than 100 high-
tech CEOs and business leaders who have endorsed these job-creating
investments. As these innovative leaders expressed in their letter to
Congress supporting this bill, and I quote, ``Investments in America's
digital infrastructure will spur significant job creation in the
immediate term. An investment of $40 billion in America's IT network
infrastructure in 2009 will create more than 949,000 U.S. jobs, more
than half of which will be in small businesses.''
  Then President Obama pledged that we ``will harness the sun and the
wind and the soil to fuel our cars and run our factories.'' Today we
are acting swiftly and boldly to do just that. This act makes a
historic, job-creating investment in clean, efficient, American energy.
To put people back to work and reduce our dependence on foreign oil, we
set the goal of doubling our renewable energy production and renovating
public buildings to make them more energy efficient.
  That is why the Apollo Alliance, a coalition of many, many groups
committed to an energy independent future for our country and reversing
climate change, has said that this package is ``big, bold and will
serve as a down payment on long-neglected investments in a clean
energy, good jobs, made-in-America economy.''
  President Obama pledged to ``transform our schools and colleges and
universities to meet the demands of a new age.'' The American Recovery
and Renewal Act, which we are voting on today, will make bold
investments to provide children with a 21st century education, create
hundreds of thousands of jobs by investing in school and other
infrastructure, make college more affordable and build a top-notch
workforce trained for the jobs of the future. It's about the future.
  That is why the Committee for Education Funding, another coalition,
endorsed this bill saying, ``The package would retrain displaced and
unemployed workers, create new jobs by

[[Page H627]]

modernizing the country's classrooms, and increase America's
competitiveness in the global economy.''
  Education groups from across the spectrum and across the country,
from the American Association of Community Colleges to the United
States Student Association, support this bill.
  President Obama pledged that ``those of us who manage the public's
dollars will be held to account--to spend wisely, reform bad habits,
and do our business in the light of day--because only then can we
restore the vital trust between a people and their government.''
  This act that we are passing today has unprecedented accountability
measures built in, providing strong oversight, a historic degree of
public transparency and no earmarks. That is why the National Governors
Association strongly supports this legislation and our efforts to
ensure that these investments are effective uses of tax dollars.
  With the adoption of the bipartisan Platts-Van Hollen amendment
today, a broad-ranging coalition of public interest groups say we have
set ``a new standard of accountability and transparency by empowering
Federal employees to call attention to waste, fraud, and abuse of tax
dollars without fear of retaliation.''
  As we know, my colleagues, last year 2.6 million Americans lost their
jobs. Some say we are moving too quickly with this legislation. I say
this legislation is long overdue. For all the time that we do not pass
it, each month 500,000 Americans will lose their jobs. We simply cannot
wait. And we say to the families of America who are affected by this,
or fear to be, by this downturn in this economy, we are all in this
together. The success of America is dependent upon the success of
America's families. By investing in new jobs, science, innovation,
energy and education, and doing so with strict accountability and
fiscal responsibility, we are investing in America's families, which is
the best guarantee for the success of our Nation.
  My colleagues, the ship of state is difficult to turn, but that is
what we must do, and that is what President Obama called upon us to do
in his inaugural address, which I believe is a great blueprint for the
future. With swift and bold action today, we are doing just that. We
are moving the ship of state in a new direction in favor of the many,
not the few. With this vote today, we are taking America in a new
direction.
  I thank all of my colleagues who worked so hard to make this
legislation the great statement of values, principles and action that
it is. I urge a ``yes'' vote from our colleagues. I look forward to
working together in a bipartisan way as we go into the future in this
new direction under the leadership of our new President, President
Barack Obama.
  Mr. GENE GREEN of Texas. I want to thank you, the rest of Leadership,
and the chairmen of the committees that put this bill together for your
work to create a package that will create jobs, invest in America's
infrastructure needs, address pressing healthcare needs, and expand
opportunities for education and worker training. I strongly support the
provisions in the American Recovery and Reinvestment Act and urge my
colleagues to join me in supporting it.
  Our district and the surrounding areas in southeast Texas were
devastated by Hurricane Ike last September. People are getting back on
their feet, but there is still a significant need for additional
federal funding. I would have liked to seen that included in this
package as it is one of the most pressing recovery needs in our
country, but since it was not, I hope it can be included in either in
upcoming omnibus or supplemental appropriations bill.
  In Texas we've seen the unemployment rate jump from 4.2% a year ago
to 6% in December of 2008--the unemployment rate in the Houston-Baytown
area is 5.5% and will likely only rise with the significant drop in the
price of oil and refined product, and the impact that has on our energy
sector jobs. It is important we invest in this sector and this
legislation makes valuable contributions to diversify our nation's
energy and environmental resources.
  It makes critical improvements to the smart grid provisions
established in the Energy Independence and Security Act of 2007 by
eliminating the cap on the allowable number of smart grid demonstration
projects and increasing the grant funding available for these efforts.
  My hometown of Houston is a leader in moving toward smart grid
solutions. Center Point Energy, a leading energy delivery company in
Texas, will invest over $600 million in automatic metering systems, or
AMS, over the next five years to support smart grid infrastructure. AMS
technology is the first step in moving toward an automatic grid which
will allow consumers to manage and monitor the electric use in real-
time, reduce energy consumption, and improve grid reliability.
  I also support Representative Ed Markey's (D-MA) amendment to this
section that will expand the protocols smart grid projects can use to
obtain grants authorized in this bill.
  I am also pleased with the increase in funding and changes to the
Weatherization Assistance Program which will help low-income families
make their homes more energy efficient, as well as the additional $1
billion provided for the Low-Income Home Energy Assistance Program
(LIHEAP) that will help more Texans heat and cool their homes during
these troubled economic times.
  While I support the temporary Department of Energy loan guarantee
program created under Section 5003 for renewable energy and electric
transmission projects, I hope the Committee does not forget about the
strategic importance of funding the larger DOE loan guarantee program
so that other valuable projects can move forward that reduce carbon
emissions and that employ new innovative technologies.
  In addition to the extension of the renewable production tax credits,
I also believe Congress should provide a long-term extension of the
biodiesel blenders tax incentive to help this critical renewable energy
industry. Houston is home to several biodiesel producers that directly
or indirectly employ hundreds of workers in good-paying jobs, and over
50,000 jobs are currently supported by this industry nationwide.
Without a long-term extension of this tax credit, producers are not
able to provide the certainty required to bring in much needed capital
for renewable energy projects. In addition to creating and sustaining
jobs, the biodiesel industry helps our nation reduce greenhouse gas
emissions and is developing next generation feedstocks such as algae
that will further enhance our energy security.
  Finally, I appreciate the inclusion of an additional $100 million for
the National Estuary Program, which could help protect the Galveston
Bay Estuary Program. Galveston Bay is a critical ecosystem home to an
abundance of plant and animal species that are vital to our region's
way of life and local economy. These funds can be used for such useful
purposes as restoring wetlands or habitat restoration, and can be
leveraged with public and private sector funds to generate large
returns on investment. The Port of Houston Authority also actively
participates and supports this key environmental program.
  The legislation also makes significant investments in health care
services and coverage in this country during these tough economic
times.
  Unfortunately, when individuals lose their jobs they often cannot
afford medical care or COBRA premiums and often forgo treatment due to
the cost.
  AARA will provide COBRA premium assistance for 12 months for workers
who have been involuntarily terminated and their families. COBRA
premium assistance will allow individuals who would typically be unable
to afford COBRA maintain coverage and obtain medical treatment.
  States like my own have asked Congress for assistance with the States
Federal Medical Assistance Percentage to help assist them the rising
number of individuals needing Medicaid coverage. In order to avoid
state deficits, many states may have to reduce their standards for
Medicaid eligibility, which will actually increase the number of
uninsured.
  A temporary increase in FMAP funding until December 31, 2010 will
help avert this potential problem and allow states to continue to
provide Medicaid coverage to this uninsured population. The American
Recovery and Reinvestment Bill of 2009 contains a 4.9% increase in FMAP
for states. Texas, in particular, will benefit from an FMAP increase
and the temporary formula and hold harmless provision.
  AARA will also place a moratorium on 7 Medicaid regulations. My home
state of Texas is affected by all seven of these cuts but most affected
will be the payments for graduate education, Targeted Case Management
Rule, Cost Limits to Public Providers, Coverage for Rehabilitation
Services. These regulations would reduce funding to these valuable
programs and leave states in a significant budgetary crisis.
  AARA also provides valuable funding for Health Information
Technology. We're all aware of the benefits that improved IT would
bring the health care sector and the patients it serves. With
integrated information technology, patients could manage their
electronic health records and avoid having to haul multiple records to
their various physicians.
  If implemented correctly, Health IT can improve patient safety and
garner cost savings.

[[Page H628]]

The funds provided in AARA are an investment in the future of health
care in this country. Providers will have to pay some up front costs to
obtain the technology, but they will receive $40,000 to $60,000 in
financial incentives for adopting interoperable health IT systems.
  Another key component that this package contains provides an
investment of critical funds into our state and local transportation
agencies. This is the quickest way to create jobs immediately. The
Texas Department of Transportation alone has 853 ``shovel-ready''
projects. One of these projects in my district will create 1200-1350
new engineering and construction jobs in the Houston area in the next
ninety days. This is significant in an economy where thousands of job
cuts are announced every day.
  It is easy to make the case for an infusion of transportation dollars
when our state departments of transportation have run out of money.
However, some of my colleagues on the other side of the aisle are
asking why we should invest billions of dollars in education around the
country. The answer to this question is simple. Investing in our
children's education is investing in our economic competitiveness.
  When states came across hard fiscal times in the last year, education
funding is typically one of the first areas where they cut back.
Additionally, with the increase in foreclosures, property tax revenues
are down and cities have also cut back on financing critical education
services. If we do not invest in our children's education and give them
an opportunity at a better economic future, then we are setting
ourselves up even more federal spending on social services in the
future.
  By increasing the amount of the Pell Grant by $500, we give students
across the country the financial help they need to get the
certification or degree necessary to pursue and keep a job in this
economy. By investing in Head Start, we are setting a whole generation
of students on a path towards economic viability. Head Start has been
proven to help close the achievement gap between students of differing
socio-economic status across the country.
  Finally, I am encouraged that this bill will lower the child tax
credit eligibility level making it available to all working tax filers
with children. This will help our constituents put food on the table
and pay their essential bills as the cost of living continues to
increase.
  Mr. Chair, I again state my strong support for this package which
will provide an immediate infusion of funding into shovel-ready
projects, creating jobs and starting our economy on the road to
recovery, and I urge all my colleagues to join me in supporting the
American Recovery and Reinvestment Act.
   Mrs. MALONEY. Mr. Chair, the current economic crisis requires bold
solutions that address the enormity of our economic woes, and the
American Recovery and Reinvestment Plan will do just that.
  The $825 billion recovery package that we are voting on will create
or save an estimated 4 million jobs and will make key investments in
our future.
  But first and foremost, the economic recovery package focuses on
blunting the effects of the recession and helping families in need.
  In addition to increasing food stamp benefits and expanding
unemployment benefits, our plan protects health care coverage for
roughly 20 million Americans during this recession by increasing the
Federal Medicaid Assistance Percentage (FMAP) so that no state has to
cut eligibility for Medicaid and SCHIP, the children's health insurance
program, because of budget shortfalls.
  For my home state of New York it more than doubles the FMAP match
resulting in roughly $10.42 billion over 9 quarters. This is critical
funding for our state which is seeing an increase in caseloads as a
result of the recession.
  The recovery plan also invests in important needs that have been
neglected over the past eight years. America's school, roads, bridges,
and water systems are in disrepair and this is creating a drag on
economic growth.
  Our plan will spread job creation out over the next two years, which
will soften the downturn and foster a solid economic recovery.
  We have an historic opportunity to make the investments necessary to
modernize our public infrastructure, transition to a clean energy
economy, and make us more competitive in the 21st century.
  It's time to get our economy back on track. I urge my colleagues to
support the American Recovery and Reinvestment Plan.
  Mrs. LOWEY. Mr. Chair, I rise in support of H.R. 1, the American
Recovery and Reinvestment Act of 2009.
  In every part of our country, people are hurting from the economic
downturn. Our nation lost 2.6 million jobs last year, and just this
week major employers announced the elimination of 70,000 more. The need
for bold and aggressive federal action is clear.
  The American Recovery and Reinvestment Act will quickly stimulate the
economy and create and save three to four million jobs in critical
sectors of our economy like transportation and infrastructure, health
information technology, and green energy. It will provide vital
assistance to states like New York facing severe budget shortfalls and
tax relief to 95 percent of Americans. In addition, critical support
for education and health initiatives will bolster our economy in the
short and long term. Unprecedented accountability measures will provide
strong oversight and a historic degree of public transparency. I
continue my work to support initiatives critical to New York like water
treatment infrastructure and relief from the Alternative Minimum Tax.
  I commend President Obama for his leadership through this process.
Digging out of this economic hole will take time, and I am hopeful
Congress will quickly approve a final economic recovery package for
President Obama's signature.
  Mr. Chair, I urge all of my colleagues to support this vital
legislation.
  Ms. ESHOO. Mr. Chair, the legislation before us today is the first
step in an effort to pull our country out of an historic economic
crisis. Credit markets are frozen, consumer purchasing power is in
decline, and in the last four months we've lost nearly 2 million jobs,
with another 3 to 5 million likely disappearing in the coming months.
  At a 1959 campaign rally in Indianapolis John Kennedy said ``the
Chinese use two brush strokes to write the word `crisis'. One brush
stroke stands for danger; the other for opportunity. In a crisis, be
aware of the danger, but recognize the opportunity.''
  The opportunity we have today is to make a down payment on research
and innovation in our nation. We recognized this need in the Speaker's
Innovation Agenda and President Obama's inaugural address noted the
inventiveness of the American people and issued a call to ``dust
ourselves off and begin the work to remake our country.'' A successful
economic recovery plan must tap into the spirit of innovation that has
driven our country since its founding.
  This legislation does more than create jobs and stimulate the
economy. It invests $6 billion in broadband grants to elevate us from
16th in the world in broadband quality, behind countries like Slovenia,
Latvia, and Denmark. The country that invented the Internet should be
#1. While I'm pleased that broadband funding is included in this
package, we must do more and it must be more forward thinking.
  The Recovery and Reinvestment bill invests $20 billion in Health
Information Technology (HIT) to enhance patient safety, reduce medical
errors, improve the quality of care, and importantly, reduce healthcare
costs.
  We live in the Information Age but healthcare, one of the most
information-intensive segments of our economy, remains mired in a pen-
and-paper past. We can buy airline tickets from a home computer, we can
pay our income taxes online, and we can even buy a car with a few mouse
clicks, but our healthcare system remains dangerously disconnected.
Patient medical histories are largely disaggregated among various
treating physicians and they are often inaccessible to a new doctor or
even to the patients themselves.
  These inefficiencies in the healthcare information system create
unnecessary risks and costs. It's time to use technology to move toward
a model of integrated care, focusing on overall health and not simply
disease. Health IT promises to revolutionize the health care delivery
system and have a powerful effect on enhancing patient safety, reducing
medical errors, improving the quality of care, and reducing healthcare
costs.
  The recovery package also includes important building blocks for our
path toward energy independence. I'm pleased the bill makes critical
and sensible investments in our country by increasing funding and
implementation of Smart Grid projects, promoting renewable energy
research, and expanding the number of eligible participants in the
Weatherization Assistance Program.
  While millions of Americans are losing their jobs, and subsequently
their health insurance, we are also helping people maintain coverage
for themselves and their families. Subsidies for COBRA payments and
increased Medicaid assistance to states will help keep people insured
during this tumultuous time.
  I'm proud to support the American Recovery and Reinvestment Bill and
I urge my colleagues to do the same.
  Mr. KANJORSKI. Mr. Chair, I rise today to offer my thoughts about
H.R. 1, the American Recovery and Revitalization Act.
  I regret that I cannot support the legislation in its current form.
While I absolutely agree that we must stimulate our economy to help it
recover from its troubled state, I am concerned that this bill does not
represent an effective plan to ensure our economic recovery.
  We face the most challenging economic crisis since the Great
Depression, yet this bill merely throws money at the problem by ex-


[[Page H629]]

panding existing programs. We have not taken the time to fully
understand the nature and the full scope of the collapse of our
economy, and so we have not taken the time to understand how to target
the problems with innovative solutions. While I recognize the urgency
of the situation, we would do better to follow the advice of an old
civil engineer friend of mine who often cautioned that to do a job
correctly, it is better to go slow in the planning to allow you to go
fast in the implementation.
  Just one example of the difficulty we will have in getting this money
spent well was described in today's Washington Post, which quoted a
state energy office director lamenting how he was going to have to
figure out how to spend 35 times as much money as he normally gets in a
year, using new funds allocated in this stimulus. Pennsylvania's own
transportation department has indicated that its ``shovel-ready''
projects are not so ready that they can be started within the ninety
days sought by Transportation Chairman Oberstar, who rightfully is
seeking to expedite these funds to get spent as quickly as possible.
Having dealt with publicly-financed projects for more than forty years,
I can assure you that numerous federal, state and local regulations
will provide numerous obstacles to getting this money spent both
quickly and wisely. I sought to offer an amendment which would have
allowed a waiver of many of these restrictions because--to the best of
my knowledge--there is no provision in this bill to allow federal
administrators to waive regulations under these extraordinary
circumstances.
  My Republican colleagues raise a reasonable objection that they were
not fully included as the framework of this legislation was
constructed. Perhaps I am one of the few Democrats who will acknowledge
publicly that most Democrats were also not included. This is wrong.
When undertaking the most significant and certainly most expensive
program of my Congressional career and maybe in our Nation's history,
it is vitally important that all Members of Congress first understand
the problem we are addressing and then fully participate in determining
how best to solve that problem. It has been my experience that the most
successful policies are those which many minds have constructed.
  In addition to Members of Congress fully understanding what we are
trying to do and why, it is vitally important in a representative
democracy for the American people to understand both the problem and
the proposed solution. We rushed through the so-called TARP program
without educating the American people, and they are convinced it was a
bailout of Wall Street. I helped to draft the TARP program and voted
for it because I believed that it was absolutely essential that we act
immediately, despite the suspicions voiced by my constituents. The need
for an economic stimulus is indeed urgent, but it is not so much of an
emergency that we cannot afford to take the time to think so that we
can do it right.
  No piece of legislation is ever perfect; I recognize that compromise
is always necessary to reflect the diverse interests of a country as
heterogeneous as ours. Had we reached this bill through a more orderly,
bipartisan basis, I very well may have cast my vote for it. I still
hope that the Senate will make enough necessary corrections that I will
be able to support a final version. Let me now highlight my substantive
objections to this bill.
  First, infrastructure projects were an initial focus of a recovery
package, but that focus has dwindled to just $90 billion out of an $825
billion bill. For every $1 billion we spend in infrastructure, we
create upwards of 30,000 jobs. It seems to me that this is a proven
method of creating jobs and additional funds should be put towards this
area of spending.
  In addition, from my perspective, we need to focus more on helping
those who are unemployed or retired. While many people are struggling,
we must help those without jobs feed their families immediately. One of
the major tax provisions of this bill is the $500 tax credit for
individuals and $1,000 for couples. While this tax credit may provide
relief to working families, it will not help individuals who are
unemployed since the credit will be provided through a reduction in
payroll taxes for workers.
  Moreover, I am concerned about the disproportionate impact this bill
will have. Without doubt, much of the funding will go to large urban
areas, while areas like my Congressional District which are more rural,
will receive much less funding, even though our unemployment rate is
higher than the national average. Residents of my Congressional
district are struggling just as much as those living in urban areas.
  Finally, a recovery bill should include funding for localities. Many
counties, cities and municipalities across the country are facing
significant funding shortfalls as a result of the ongoing economic
downturn. These budget shortfalls have resulted in local officials
having to make difficult decisions about cutting jobs, reducing
services, or raising taxes on their citizens.
  That is why I offered an amendment to H.R. 1 to reinstate a General
Revenue Sharing program. More than 30 years ago, as our country
experienced another period of prolonged economic stress, we put in
place a General Revenue Sharing grant program. Between 1972 and 1986,
$83 billion was transferred from the federal government under this
program. This funding provided localities with a needed source of
revenue for undertaking job-creating infrastructure projects and
maintaining public safety networks. I am disappointed that this
amendment was not allowed under the rule.
  In closing, I support a recovery package that creates jobs and builds
our infrastructure. Americans and our economy are struggling and we
must act to help them. But, I strongly believe that we can make
improvements to this bill so it will be as effective and efficient as
possible in restoring our economy and helping Americans.
  Mr. Chair, I appreciate the opportunity to share my thoughts.
  Ms. HARMAN. Mr. Chair, the American economy is foundering in some
very troubled waters.
  Business after business--including some of the biggest names in
corporate America--is collapsing. Hundreds of thousands of Americans
have lost their jobs in the last few months alone--more than 55,000 in
just the last few days. The unemployment rate is skyrocketing,
approaching levels not seen in generations.
  Millions of Americans have lost their homes, and millions more may
lose theirs as adjustable rate mortgages reset and the foreclosure
crisis spreads. Lending has barely improved since the credit markets
froze last fall, despite a $350 million (and soon to be $700 million)
infusion of taxpayer funds.
  California has been particularly hard hit. 523,624 Californians lost
their homes last year--a five-fold increase from 2006 levels. The state
is running a $42 billion budget deficit, and may have little
alternative but to cut health and education funding to the bone. Los
Angeles County alone is looking at a $173 million shortfall in health
care funding next year--the amount it takes to keep the Harbor-UCLA
Medical Center operating.
  My constituents are hurting. Credit unions and small banks, which do
much of the day-to-day lending that keeps communities functioning, have
laid off hundreds of workers. Car dealerships that have been pillars of
the community for decades are closing. Reductions in state funding are
forcing school districts to consider drastic staff reductions.
  In times like these, the federal government has an obligation to take
swift, decisive action. The American Recovery and Reinvestment Act
includes the stimulus needed at this perilous moment, and I intend to
support it.
  A few provisions of the bill stand out as particularly crucial.
  This legislation includes nearly $200 billion to help states maintain
essential health care and education programs. In California, these
funds could be the vital lifeline that keeps hospitals operating,
avoids the layoffs of thousands of teachers, and helps the state stave
off bankruptcy.
  The bill includes a $20 billion investment in the development of
health information technology systems. Health IT will not only generate
thousands of new high-paying jobs, it will reduce costs of providing
care, help reduce errors, and provide a down-payment on the development
of a universal health care system.
  The bill includes $30 billion to help build a new clean energy
infrastructure that will grow green jobs now and lay the foundation for
long-term energy independence. The $11 billion investment to upgrade
our electric grid is an especially crucial first step toward the
deployment of energy efficiency programs, the widespread adoption of
electric vehicles, and the transmission of energy produced by renewable
sources.
  The bill also makes a long-overdue investment in our nation's
education system, with more than $150 billion going to Head Start,
kindergarten, public elementary and secondary schools, and college
programs. This spending--along with a renewed focus on performance
standards and new, creative approaches to teaching--will help ensure
that our children

[[Page H630]]

have the skills to compete in the global economy in the years to come.
  This is not a perfect bill. One can question whether some of this
spending would be more appropriately considered in an ordinary
appropriations bill, and whether a small uptick in paychecks caused by
tax cuts will lead to much new spending. I hope that the bill can be
improved as it moves through the legislative process.
  But the package is, on the whole, worthy of support. It may not be
the only step we must take to revitalize our economy, but it is a
necessary one. I urge its swift passage.
  Mr. REHBERG. Mr. Chair, while I'm going to vote against this
particular version of the so-called stimulus package, doing so does not
indicate that I don't support a real stimulus package that gives the
economy an instantaneous jolt.
  Nor does it mean that I am unwilling to work closely with my friends
on the other side of the aisle in the spirit of bipartisanship that
President Obama has urged us all to take.
  We worked together and got Children's Health Insurance done. That
issue, like this one, is important to Montana, and today I ask you to
come to the table and listen to the ideas that people from Montana have
to offer. It's what the President has asked us all to do.
  Working separately, we will fail. Working together, we can accomplish
more for the American people.
  Mr. TANNER. Mr. Chair, our nation faces very grim challenges.
Families in Tennessee and across the country are struggling to make
ends meet, and thousands of workers are losing their jobs. There have
been hundreds of job losses announced just this week in our district in
West and Middle Tennessee.
  It has become clear to many of us that inaction is not an option, and
that we must work to help create jobs and rebuild our economy. The
American Recovery and Reinvestment Act addresses the immediate economic
concerns of the American people and specifically Tennesseans.
  This legislation could create or save more than 63,000 jobs in our
state by the end of next year, according to analysis from independent
economist Mark Zandi of Moody's Economy.com.
  More than 95 percent of Tennessee taxpayers will receive direct tax
relief--$500 for single filers and $1000 for joint-filers--in 2009 and
2010 as a result of this bill. Many students and parents will be
eligible for additional tax credits to help pay for college so students
are prepared to enter the job market. Thousands of Tennesseans have
lost their jobs in recent months, and the American Recovery and
Reinvestment Act will ensure these hard-working men and women receive
assistance while looking for new jobs.
  To help create jobs, this legislation provides immediate tax cuts for
Tennessee small businesses, including incentives to make the capital
investments necessary for job growth. The bill allows employers unable
to sustain their profits in today's difficult economic climate to
recover some past tax payments to avoid closing their doors and laying
off workers.
  To further encourage job creation in our area, this legislation
includes more than $760 million to invest in infrastructure in
Tennessee, which could help us work on dozens of important economic
development improvements in West and Middle Tennessee, such as road
completions, bridge repairs and other transportation projects that fuel
job creation and help us recruit new industry.
  As we all know, high fuel prices over the past summer contributed in
part to our economic downturn. This legislation includes energy tax
credits and other provisions to help reduce our dependence on foreign
oil sources--which many of us see as a national security issue--and
diversify our country's energy sources to include alternative energy,
such as wind, solar, biomass and geothermal energy. This investment in
our long-term energy future will also provide immediate and much-needed
jobs in construction and engineering.
  Tennessee faces one of the largest budget deficits in our state's
history, which will lead to drastic reductions in the level of service
to state taxpayers, including possible cuts in the important economic
development investments that help create jobs. This legislation will
help our state meet some of those needs for Tennesseans. The bill also
expands local cities' and counties' access to tax credit bonds for
investments in schools, infrastructure, conservation and job training.
  At the request of those of us in the fiscally conservative Blue Dog
Coalition, this bill no longer includes some provisions that many of us
felt were unrelated to the immediate needs of our country's economy. In
particular, we insisted that the House remove language funding
contraceptives and new sod on the National Mall outside the U.S.
Capitol Building. These expenditures were clearly not related to short-
term economic growth and did not need to be addressed in legislation
designed to address immediate needs.
  The Blue Dog Coalition also saw this dialogue as an opportunity to
talk with the new Administration about our country's fiscal situation.
We have been assured that President Obama shares our commitment to
long-term fiscal reform and will work with us to weed out waste, fraud,
abuse and mismanagement in federal government spending after our
country has begun to overcome these most extraordinary challenges.
  In a letter to Appropriations Committee Chairman David Obey and
others, White House Office of Management and Budget Director Peter
Orszag wrote that ``[p]utting the country back on the path of fiscal
responsibility will mean tough choices and difficult trade-offs, but
for the long-term health of our economy, the President believes that
they must be made.'' I look forward to talking more with President
Obama about these shared goals.
  I realize that no member of this body--myself included--will be
entirely pleased with this bill as we are voting on it today. After
some improvements I discussed before and much reflection, however, I
have come to the conclusion that this House must take action to help
the American people meet the financial challenges facing them. For that
reason, I rise to support the American Recovery and Reinvestment Act
and am optimistic that it will help save and create Tennessee jobs.
  Mr. HONDA. Mr. Chair, I rise today in support of H.R. 1, the American
Recovery and Reinvestment Act. I thank my Chairman, Mr. Obey, for his
hard work and the hard work of his staff on the Appropriations
Committee's portion of the bill, and I thank the other committee chairs
and staff for their work on the other portions of this bill.
  This recovery package is the first crucial step in a concerted effort
to create and save up to 4 million jobs and jumpstart our economy while
transforming it for the 21st century.
  As a former teacher and principal, I firmly believe that education is
the key to our nation's future. H.R. 1 makes bold investments to
provide children with a 21st century education, create hundreds of
thousands of education related jobs, and build a top-notch workforce
trained for jobs of the future. The bill includes $20 billion for
school modernization, $79 billion in state fiscal relief to prevent the
layoff of teachers and other cutbacks in education, $13 billion to help
disadvantaged students reach high academic standards through Title I
grants, and $13 billion to help special needs children succeed through
IDEA special education grants.
  I had suggested some specific ideas that could provide a significant
``bang for our buck'' and stimulate the economy in the short-term while
also making a long-term investment in education, which unfortunately
did not make it into the bill. In particular, I think there is value in
the idea of prizes for educational innovation in areas of high need
such as multimedia video lessons, individualized interactive learning
software, rigorous assessments that measure critical thinking and
problem solving, longitudinal data systems, and affordable portable
computers. Small investments in prizes for achievements in each of
these areas, $10 million for each for a total of $50 million, can
leverage private contributions immediately and produce teaching tools
that will be useful for years to come. I plan to continue to seek
support for this and other novel approaches to education funding in the
coming year.
  As a representative from Silicon Valley, I am pleased that the bill
renews America's investment in basic research and development and in
deploying new technologies, including broadband internet access, into
the marketplace. Internet connectivity is essential to giving everyone
in America an equal chance to succeed. One particular area deserving
attention as we move forward is the usefulness of broadband access for
first responders. President Obama's inauguration was incident free
because the Washington region's first responders had access to a
dedicated wireless broadband network. Establishing similar systems
around the country could generate jobs and enhance public safety.
  Silicon Valley has been focusing an ever greater portion of its
resources on developing clean, efficient, renewable energy solutions,
and so I support the inclusion of investments and incentives for the
development and deployment of both renewable energy and energy
efficiency technologies. The steps we can take to help reduce our
dependence on fossil fuels will both save people much needed money and
put people to work. Some are as simple as installing attic insulation
in insufficiently efficient homes, others are more technically advanced
efforts to research and develop new energy technologies. I am glad this
bill includes all of these.
  I appreciate the inclusion of $300 million for Diesel Emissions
Reduction Act programs. These grants and loans will put people to work
retrofitting vehicles and manufacturing the needed equipment. Again,
this is both a good government measure, in that it will help achieve
clean air goals, and it is a temporary stimulative effort. My only
regret is the bill

[[Page H631]]

does not include even more funding--my state of California alone can
make use of $1.6 billion. If there is an opportunity to increase the
funding for DERA during conference, I would support that effort.
  In Silicon Valley, we face many of the same transportation challenges
as other communities across our nation--deteriorating roads and
bridges, traffic congestion, limited transit capacity, and limited
state and local funds that are keeping construction workers out of
work. H.R. 1 will create more than 800,000 jobs nationwide through
investment in transportation, with $30 billion for highway construction
and additional funding for transit and rail to reduce traffic
congestion.
  In these difficult economic times, all Americans are worried about
the rising cost of health care. H.R. 1 invests $20 billion in health
information technology, which will bring Silicon Valley innovation to
the health care field to cut red tape, prevent medical mistakes, and
help reduce health care costs. As the saying goes, ``an ounce of
prevention is worth a pound of cure,'' and this bill makes a real
investment of $3 billion in prevention, which will help reduce health
care spending, saving billions of dollars per year. I note that a few
diseases are singled out in the bill, and I have some concerns that all
of it could be taken up by HIV/AIDS programs, and look forward to
working with Chairman Obey and Secretary Daschle to ensure that some of
the funding is available for the Division of Viral Hepatitis in CDC.
  I would like to express my thanks to Chairman Obey for including of
$1 billion in sorely needed funding for the decennial census,
particularly for the $150 million for expanded communications and
outreach programs. Not only is this funding essential for good
government, but it will put people to work right away in essential
jobs. This funding is by definition temporary because the Census is a
periodic effort, so it meets all the criteria for an economic stimulus.
  Finally, I would like to highlight an area that is at the core of our
current economic crisis, housing affordability and the freeze up of the
credit markets. Well meaning efforts to develop affordable housing are
currently facing significant challenges in getting started because they
cannot find financing in today's credit markets. The Ways and Means
Committee has included some provisions related to the Low Income
Housing Tax Credit programs in the bill, including a grant program to
help fill the capital gap and get construction on these projects
started. I support the inclusion of appropriations for this grant
program to the level needed so that these tax credits can provide the
benefit they were designed to deliver.
  Again, I thank Chairman Obey, Chairman Rangel, Chairman Waxman, and
all of the other committee chairs and their staff for their hard work
on this legislation and their efforts to help all those across our
nation who desperately need the programs included in this bill and who
are calling upon us to return our nation's economy return to health.
  Mr. YOUNG of Florida. Mr. Chair, I rise to express my concerns about
H.R. 1, the American Recovery and Reinvestment Act of 2009. They are
concerns about its cost, estimated at more than $1.1 trillion; its
ability to really create jobs stimulate our economy; and about the
procedure with which it was written and brought before this House.
  The Congressional Budget Office estimates the cost of this
legislation at $815 billion. But that is before we factor in the cost
of the interest payments--totaling $347 billion over the next 10
years--that Americans will incur to finance this, the largest spending
bill every brought before Congress.
  And what do we get for our ``investment?'' Nobody knows how many
jobs, if any, this legislation will create. The Congressional Budget
Office estimates that only 15 percent of the spending in this bill will
even take place between now and the end of the fiscal year on September
30th. The agency further estimates that by the end of the next fiscal
year on September 30, 2010 that just half of the funds provided in this
legislation will be expended. One can only wonder how this legislation,
with the intended goal of creating sustainable jobs, can do so with
such a slow obligation of funds.
  Instead, this legislation puts our nation on the hook by creating 32
new programs totaling some $137 billion. This includes a $79 billion
State Fiscal Stabilization Fund at the Department of Education which
the State of Florida I represent and our public schools and their
students will not even qualify for because of the complicated formula
under which the funds will be given to the states.
  How many jobs will these new programs create? How would the money be
spent? Who would receive the money? These are all questions I would
have asked if our Appropriations Committee, which has the
responsibility of overseeing discretionary spending, had ever held a
single hearing on these programs. The truth is, none of our
subcommittees ever held a hearing on any of the programs in this bill.
This legislation was drafted by a small handful of members with little
if any input from Republican members of this House.
  President Obama met with the Republican members of the House Tuesday
to ask for bipartisan support for this stimulus legislation. Instead, I
sense there is bipartisan opposition to the process under which we
consider this legislation. Democrats and Republicans alike are on
record as saying we should slow down the process and do it right.
  We need only look back four months ago to the way in which the House
and Senate handled the $700 billion financial bailout to see what
happens when we act in haste, with little deliberation, and virtually
no input from the members of Congress. We wind up with wasteful federal
programs, managed by government bureaucrats, with little or no
oversight, and with few if any positive results.
  Last year, we considered legislation to help individual homeowners
with their mortgages. I supported that bill, because it tried to help
people keep their homes. Last October, we considered legislation to
bailout the financial industry and financial executives. I voted
against that legislation twice because it was a $700 billion mistake
that did not help people. Now we are on the verge of repeating that
mistake with a new $815 billion bailout that likewise does little to
help people get back on their feet and find work.
  Mr. Chair, no one in this chamber would deny that our nation faces
unprecedented economic challenges in the days and months ahead. Many of
my colleagues in this House who oppose this legislation want to provide
help to get Americans back to work. But we want to do it the right way
without driving our nation further into the economic doldrums and
passing the debt on to our children and our grandchildren.
  We also want to do so in a fiscally responsible manner. The
Congressional Budget Office, in its analysis of this legislation,
concluded that ``federal agencies, along with states and other
recipients of that funding, would find it difficult to properly manage
and oversee a rapid expansion of existing programs so as to expend the
added funds as quickly as they expend the resources provided for their
ongoing programs.''
  Let us heed the calling of the American people last November 4th.
They asked us to put the elections and politics behind us and start
working together to solve America's problems. President Obama came to
Congress this week to ask for our help. But we cannot help if we do not
have any input. We cannot help if we have no committee hearings. We
cannot help if our subcommittees do not have a hand in writing this
legislation. And we cannot help if we have little opportunity to amend
this bill when it is brought before the House. No legislation is
perfect, let alone one that will spend $815 billion and create 32 new
programs.
  Mr. Chair, let us vote down this legislation to send it back to the
committees and signal that the American people demand a thoughtful and
deliberative process in deciding how to spend their hard earned
dollars. This is their money, not ours, and we have the responsibility
to be good stewards of it.
  Mr. ETHERIDGE. Mr. Chair, I rise in support of H.R. 1, American
Recovery and Reinvestment Act of 2009. This package will stimulate our
economy, provide relief to struggling individuals and small businesses,
and create 3 to 4 million desperately needed jobs across our country.
  As of last week, the unemployment rate in my state of North Carolina
had jumped to 8.7 percent, the highest mark in a quarter century. Each
week, we hear more bad news about employment, with North Carolina
reporting nearly 16,000 new claims in the last week. A record of almost
400,000 North Carolinians are currently unemployed but seeking work.
These rates are rising all across our country while Americans continue
to face a faltering economy. In addition to the unemployed, there are
many who still have jobs but have seen wages or hours cut. I have heard
from North Carolinians from across the Second District about the urgent
need for action. H.R. 1 addresses the need through strategic
investments that will create new jobs and provide tax relief for 95
percent of Americans.
  As the former Superintendant of Schools in North Carolina, I am
especially pleased that this recovery bill invests in our future by
focusing on education. I am pleased that H.R. 1 includes the America's
Better Classrooms Act which provides tax credits to enable $25 billion
in school construction and modernization, an initiative I have been
working on with my colleagues for 12 years now. Along with $20 billion
in grant funding, these tax credits will enable local communities to
address overcrowding and deteriorating classrooms and make sure that
students have facilities that prepare them to enter the 21st Century
workforce. The tax credits will create 10,000 jobs in North Carolina
alone. In addition, H.R. 1 provides $21 billion for local school
districts for IDEA and education technology programs, as well as $79
billion in state fiscal relief to prevent cutbacks to key services
including education, a $500 increase to Pell Grants, and a new tax
credit to help students pay for higher education costs.

[[Page H632]]

  H.R. 1 will put Americans back to work with strategic investments to
create 3 to 4 million jobs. This bill primes the economic pump by
investing in many of our top priorities. H.R. 1 provides billions of
dollars to targeted infrastructure projects like new schools, improved
bridges and roads, modernized public buildings, and expanded mass
transit. These projects will create thousands of jobs while helping to
bring our nation's infrastructure into the 21st Century.
  H.R. 1 also helps our economy by investing heavily in alternative and
environmentally-friendly energy, like the biofuels we grow and produce
in North Carolina. In addition to the expansion of energy tax
provisions like the Production Tax Credit and Clean Renewable Energy
Bonds, this bill provides over $30 billion for transforming our energy
distribution and production systems and focuses on renewable energy and
technology. H.R. 1 also provides funds for energy efficient
retrofitting of public housing and buildings and weatherizing homes.
These initiatives boost a critical sector of our slumping economy and
lessen our dependence on foreign oil.
  As a Member of the Ways and Means Committee, I am especially proud of
the many tax provisions included in H.R. 1 that will provide immediate
and much-needed relief to millions of Americans. In fact, 95 percent of
Americans will receive tax relief that will show up directly in their
weekly paycheck through reduced withholding. The ``Making Work Pay''
provision in this recovery package will result in a refundable tax
credit of up to $500 for working individuals and $1000 for married
couples. This bill also extends and expands critical tax breaks like
the Earned Income Tax Credit and the child credit that target working
Americans. These provisions of provide relief to low and middle income
families while also putting dollars back into the economy to support
business activity. H.R. 1 also provides tax relief to the many small
businesses that form the backbone of our economy. This recovery package
extends bonus depreciation for small businesses, allowing them to
write-off more capital expenses made through 2009. It also includes 5-
year carryback of net operating losses which extends the period of time
businesses can use to minimize their tax liability. Finally, H.R. 1
creates new bond initiatives that provide for the recovery of cash-
strapped state and local governments and targets new bonds for the
economic recovery zones across the country that need the funding the
most.
  This is a bold package that creates jobs, spurs economic growth, and
provides relief to millions of struggling Americans. I support H.R. 1,
American Recovery and Reinvestment Act of 2009, and I urge my
colleagues to join me in voting for its passage.
  Mr. DICKS. Mr. Chair, the arts community in America not only
represents a tremendous cultural resource, it also serves to create
jobs in local communities all across our nation, an important factor as
we consider federal efforts to revive our economy. While some of my
colleagues may still not realize the significant number of people who
are employed directly and indirectly by the arts community in their
congressional districts, I have been encouraged by the vibrant debates
we have had in the House in recent years that have helped to broaden
the recognition of the arts sector as a major contributor to the
economic health of our nation. I have participated in all of those
debates regarding the budget for the National Endowment for the Arts,
and I am proud that the margin of support for the NEA has been steadily
increasing. One of the key factors in increasing that margin has been
the activism of the arts community in stressing the economic impact of
local arts programming and the jobs created through the growth and
development of museums, musical productions, dance, theater and public
art projects. In these debates it has been emphasized that each dollar
the federal government provides to NEA leverages another seven dollars
in private contributions, which in turn generate substantial investment
in local communities.
  The NEA portion of this economic stimulus legislation will fund small
grants to non-profit arts agencies that have been especially hard hit
by the economic crisis. The bill specifies that $50 million is ``to be
distributed to projects and activities which preserve jobs in the non-
profit arts sector threatened by declines in philanthropic and other
support.'' These funds are distributed either through formula grants to
the states or through the established competitive review system at the
NEA.
  The non-profit arts sector includes local theaters, opera companies,
orchestras, and other visual arts and music programs. These programs
play a vital role in all of our cities and towns, representing an
economic force with annual revenues estimated at more than $166
billion, supporting 5.7 million jobs. This activity results in billions
of dollars in tax revenue on the local, state and federal levels. In
the District I represent in the State of Washington, the latest study
conducted by Americans for the Arts found that there were 1,626 arts-
related businesses which employ 4,646 people.
  Unfortunately it is a sector of the economy which has been
inordinately impacted by the severe economic downturn we have been
experiencing in this past year. Beyond ticket sales and admissions
revenues, this sector is heavily dependent on philanthropic
contributions and on local government support. The downturn in the
stock market during the last year and the large declines in local and
state revenues have resulted in large cutbacks in both of these sources
of funding, and the result has been disastrous for many of our nation's
arts agencies and programs.
  We see tragic examples of how the economic crisis has impacted the
arts sector on a regular basis. A few examples of this growing problem
include:
  The Baltimore Opera Company has filed for Chapter 11 bankruptcy and
reduced its performance schedule.
  State support has been reduced for cultural agencies with Florida
reporting a 52 percent reduction, South Carolina 25 percent and New
Jersey by 22 percent.
  The Pasadena Symphony has curtailed its season due to budget
circumstances.
  And large businesses such as General Motors have significantly
reduced philanthropy for the arts. In Detroit alone this reduction has
had a very negative impact on the Michigan Opera Theater, the Detroit
Music Hall for Performing Arts and the Detroit Symphony.
  The amount in this bill is intended to provide small grants to try to
restore some of the jobs which have been lost in the arts communities
over the past year. I believe it's the right thing to do . . . it is
absolutely critical to maintain these vital programs during times of
personal and economic crisis in our nation. In addition to retaining
jobs, these funds will support programs which provide entertainment and
richness in the lives of our communities at a time when they are badly
needed. In the context of this large economic stimulus legislation, I
believe this is a prudent investment, and that it will contribute
measurably to restoring the fiscal health of our nation.
  I also want to insert an article that questions whether the stimulus
package includes $300,000 for a sculpture garden.

   Does the Stimulus Package Really Include $300,000 for a Sculpture
                                Garden?

       As part of their attack on the Democratic-led $835 billion
     economic stimulus package, some Republicans have attempted to
     discredit the plan by singling out examples of what they
     consider the most outrageous spending.
       In an interview with Fox News on Jan. 23, 2009, Rep. Eric
     Cantor, the House Republican Whip, said that in a meeting
     with President Obama, Cantor asked if he ``could use his
     influence on this process to try and get the pork barrel
     spending out of the bill. I mean, there's $300,000 for a
     sculpture garden in Miami.''
       But do a word search on ``sculpture'' in the 647-page
     stimulus bill now before the House and you'll come up blank.
     That's because it's not in there.
       So we asked Cantor's office where he came up with it.
       Here's how spokesman Neil Bradley explained it: The House
     stimulus bill includes $50 million for the National Endowment
     for the Arts. The bill states that the money would 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.''
       It's the lack of detail that particularly bothers Cantor,
     Bradley said.
       ``We don't know what they're going to spend it on,''
     Bradley said. ``There is no direction to the NEA on how to
     spend it.''
       So to give people an idea of how the NEA spends its money,
     Cantor's staff looked at some recent grants awarded by the
     NEA.
       And in 2008, the NEA gave $300,000 to the Vizcaya Museum
     and Gardens in Miami to restore an outdoor statuary. The
     Vizcaya estate is one of the country's most intact remaining
     examples from the American Renaissance, a period when the
     very wealthy built estates to look European. The $300,000
     grant was to help restore some of the outdoor sculptures--
     statues, urns and fountains--that had been severely
     deteriorating due to South Florida's salty, damp and
     subtropical climate, not to mention the hurricanes.
       But again, this was an NEA grant from last year. It is not
     in the proposed $835 billion stimulus package that is being
     pushed by President Obama and congressional Democrats. In
     fact, because the sculpture garden's money's already been
     granted, it's probably pretty safe to say that this is one
     project that specifically won't be part of the spending.
       We get the Cantor camp's argument that there are no
     specific projects tied to the funding in the proposed NEA
     allotment. When all is said and done, there may very well be
     plenty of NEA projects that some find objectionable or
     wasteful. This just isn't one of them.
       Kirstin Brost, a spokeswoman for Rep. Dave Obey, (D-Wis.),
     House Appropriations Committee Chairman, defended the
     proposed funding to the NEA.
       ``Artists need jobs just like everyone else,'' Brost said.
     ``Fifty million out of $825 billion

[[Page H633]]

     doesn't seem like an extreme amount to support our artists.''
       The bottom line here is that Cantor specifically identified
     the sculpture garden as part of the stimulus package when it
     just isn't--which his staff acknowledges. And he has made
     that false claim repeatedly. He was quoted saying something
     similar in a Richmond newspaper.
       That's not just sculpting the facts. That's Pants on Fire
     wrong.

  Ms. KILPATRICK of Michigan. Mr. Chair, the people of the 13th
Congressional District of Michigan, the State of Michigan, and our
nation voted for change. Perhaps more importantly, they want HOPE. The
American Recovery and Reinvestment Act of 2009 is a beginning, a down
payment, on turning around eight years worth of mismanagement,
misunderstanding, and missed opportunities with the people's purse.
This bill, which will soon be signed into law, is a bold, aggressive
investment in Americans and American industry. I enthusiastically and
emphatically endorse and support this bill and hope that the collective
wisdom of Congress ensures its quick passage.
  Investing in our nation's infrastructure not only rebuilds the
bridges, sewers, railroads, streets, avenues, and buildings of our
nation, but it also delivers employment and development opportunities.
We must provide help, healing, and hope to America's urban and rural
communities, communities that have lost more than 1\1/2\ million jobs
since November of 2008. Every billion dollars of investment in our
nation's infrastructure will create 30,000 jobs. Generating these jobs
will provide cities and counties with tax revenues that will help
ensure police officers, teachers, firefighters, and others have the
resources they need to work together to stabilize our communities.
These funds will also make our rail, highways, roads, bridges, water,
and electrical grid more flexible and accessible to local officials and
more affordable and reliable for our nation's senior citizens and
families. This new stimulus package includes several important
components valuable to families, businesses, and state and local
elected officials.
  This bill has no earmarks and it is not a perfect bill. I would have
preferred a newer version of the Comprehensive Employment Training Act
(CETA) that provided so many jobs to so many people in the late 1980s.
I hoped for stronger ``Buy American'' language for our automobile
manufacturers and steel, concrete, asphalt, and aggregate suppliers. As
Congress moves forward, I will continue to fight for these programs.
However, this bill is a down payment to the American people and
American business.
  This bill contains an increase in the Food Stamp Program, the most
efficient and effective economic stimulus of all. According to the
Center on Budget and Policy Priorities, ``food stamps are one of the
most effective forms of economic stimulus because low-income
individuals generally spend their available resources on meeting their
daily needs, such as shelter, food, and transportation. Therefore,
every dollar in food stamps that a low-income family receives enables
the family to spend an additional dollar on food or other items. USDA
research has found that $1 in food stamps generates $1.84 in total
economic activity.'' With 37 million Americans living in poverty and
250,000 homeless veterans sleeping in our streets, Congress' increase
in the Food Stamp program means very simply that people will be able to
eat.
  Today, the unemployment rate in many cities is over than eight
percent. The American Recovery and Reinvestment Act focuses on
addressing the needs of those who need assistance most by supporting
initiatives that will create jobs, keep families in their homes, and
provide all Americans with access to healthcare and higher education.
  The bill contains an increase in The Supplemental Security Income
(SSI) program. This program, which provides basic income support to
poor elderly individuals and people with disabilities, is so
desperately needed by our seniors and those with physical or mental
challenges. How is this an economic stimulus? Again, according to the
Center on Budget and Policy Priorities, ``because the beneficiaries of
this payment have very low incomes, they are likely to spend the
additional payment quickly, thereby providing effective stimulus.''
  The Emergency Shelter Grant program, administered by HUD, provides
formula grants to states and municipalities that may be used for
homelessness prevention, emergency shelters, and street outreach.
Twenty-five percent of the funds go to states; the rest go to our
cities and counties. These grants are desperately needed in Michigan, a
state with one of the highest rates of home foreclosure in our nation.
These grants directly help families avoid homelessness, pay overdue
rent or utility bills, and relocate into new apartments and homes.
These funds are typically spent very, very quickly, therefore boosting
the local economy. The Workforce Investment Act (WIA) provides funds to
cities and counties for job training and employment services for
dislocated workers, youth, and adults.
  This bill contains $300 billion worth of tax cuts that will enable
businesses to hire employees. It extends bonus depreciation that allows
businesses to recover the cost of capital expenditures over time
according to a depreciation schedule. This measure also extends
[expands] small business expensing, which helps small businesses
quickly recover the cost of specific capital expenses by choosing to
write-off the cost of these expenses in the year of acquisition in lieu
of recovering these costs over time through depreciation. Most
importantly, the bill has a tax cut that promotes the hiring of
unemployed veterans and disconnected youth. Under current law,
businesses are allowed to claim a work opportunity tax credit equal to
40 percent of the first $6,000 of wages paid to employees of one of
nine targeted groups. The bill would create two new targeted groups of
prospective employees: unemployed veterans and disconnected youth.
Furthermore, ninety-five percent of all Americans will receive a tax
break because of this bill.
  This bill gives local elected leaders authority to oversee and
administer the distribution of contracts, jobs, and funds. Local
officials, particularly mayors and county executives, face severe and
significant financial constraints as they try to resolve issues
plaguing their communities. Congress has determined that a significant
portion of the stimulus funds must remain in the hands of local
government officials to ensure that we support people who need jobs and
businesses that need contracting opportunities.

  This bill allows small businesses and businesses owned by women and
minorities to be able to compete fairly for contracts as primary
contractors as we rebuild our country. Too often, these businesses are
entirely excluded from the process or awarded smaller subcontracts by
larger companies that receive the majority of the contracts. Qualified
minority- and women-owned businesses must receive opportunities to
compete and become primary contractors where possible. This bill does
that. I am proud that this bill includes specific provisions that will
ensure that qualified minority- and women-owned businesses will be able
to compete and win.
  Furthermore, we must promote green jobs, which are the future of our
cities, counties, and states. We must explore renewable sources of
energy, including wind, solar, biomass, and geothermal energy. We
obtain more than 70% of the oil that we use from foreign sources; to
ensure our protection, we must become more energy independent. By
retrofitting buildings so that they are energy-efficient, developing
``smart'' electric grids, and extending local and state commuter rail,
mass transit, and freight railroads, we can create an additional two
million jobs, according to the Center for American Progress. We can
also preserve the planet for future generations, which will strengthen
national security. I am proud to have helped to lead the fight for
Advanced Battery technology funding that will preserve American jobs in
Michigan for the Big Three. I am also proud of the fact that this bill
includes funding that will rebuild and retrofit our nation's public
schools using green technology and American steel and iron.
  Finally, we must make sure that 100% of the stimulus plan dollars
uses American steel, lumber, electronics, cement, asphalt, and other
materials, services, and workers. This will stimulate the growth and
development of American companies and industries. This uniquely
American investment in our people and products will rebuild our nation,
revitalize our communities, renew our spirit, offer financial support
to cities, and put unemployed people back to work. While the ``Buy
American'' provisions in this bill are a good start, I will continue to
work during the 111th Congress for even stronger provisions that ensure
that American automobiles are used at American embassies throughout the
world, that American steel and iron is poured for our bridges and
buildings, and that Americans get the jobs that are fueled with
American tax dollars.
  I am proud to serve the people of the 13th Congressional District and
the entire State of Michigan as part of this historic 111th Congress.
We must use this moment to generate the momentum needed to improve
America's infrastructure. We must increase contracting opportunities to
local businesses, stimulate financial investments that will create jobs
for local citizens, and give hope to all Americans as we rebuild
America together.
  The American Recovery and Reinvestment Act is a timely, targeted, and
tremendous first step as Congress works to right the fiscal follies of
the past eight years. This bill is not the conclusion, but the
beginning, of the hope, change, and challenge that our President,
Barack Obama, illustrated in his Inauguration Address a little more
than a week ago. Congress must pass this bill so that we can preserve a
future not only for ourselves, but for

[[Page H634]]

our children and our children's children. America has not been at such
an economic precipice, and Congress has not had such an economic
challenge since the Great Depression. In the past three months, almost
two million jobs have been lost; the stock market continues its
downward death spiral; food banks cannot keep up with the demand from
homeless families, seniors, and children; home foreclosures are
skyrocketing; and more importantly, the American people demand results.
As the Bible says, and the President stated in his Inauguration
Address, it is time for us--Congress and Americans--to put away
childish things. It is time for Congress to pass the American Recovery
and Reinvestment Act of 2009.
  Mr. POSEY. Mr. Chair, we have before us an $825 billion bill (H.R.
1). With a figure this large it is a little hard to get our hands
around how much this is. One way to look at it is that it amounts to
spending $7,052 for every family in America. Looked at another way this
is enough money to pay for four years of college tuition to a private
college for every senior graduating from high school this year and next
and still have $150 billion left over. $825 billion is larger than the
economies of all but 10% of the countries in the world.
  As we consider this level of spending we must view it in the context
of our current out of control federal spending. Just three weeks ago,
the non-partisan Congressional Budget Office (CBO) projected that the
federal government will have a $1.2 trillion deficit this year. This
amounts to 8.3% of the Gross Domestic Product (GDP) which is far higher
than the pervious record of 5.9% set in 1934 at the height of the Great
Depression. In 2009, one out of every three dollars that the federal
government will spend will be borrowed and our grandchildren will be
stuck with the bill. And these figures do not even factor in the $825
billion in this bill. No country has ever borrowed and spent its way
into prosperity, which is what this bill proposes to do. Adding further
to this deficit as this bill does is unthinkable.
  I appreciate the frankness of my Democrat Chairman, Rep. Kanjorski
(D-PA) who said of his own party ``I think we've lost our way. . . .''
He went on to add, ``I think, to a large extent, many of the parts of
the stimulus are programs that are going to take years and years and
years to accomplish . . .''
  After examining the bill and CBO's analysis, I couldn't agree more
with my colleague. In fact, CBO estimates that only 7% of the
``stimulus'' will be spent in 2009. They report that only 38% of the
stimulus money will be spent in the first 2 years, leaving over 60% to
be spent three or more years down the road. In fact $3 billion will not
be spent until 2019--ten years from now. How does spending money ten
years from now or even three years from now stimulate the economy
today? Clearly, those writing this bill in the Speaker's office are out
of control.
  We were told that a stimulus should focus on ``shovel-ready''
initiatives that are ready to go. But less than 4% of the total cost of
this legislation consists of highway projects.
  This bill includes $5 billion for the Public Housing Capital Fund.
Yet, this fund already has an unspent balance of $7 billion. H.R. 1
also appropriates $1 billion for Community Development Block Grant
program, yet this program currently has $23 billion in unspent funds.
Why is this Congress adding spending to these cash rich accounts? If
they were serious about stimulating the economy Congress should simply
make them spend the money they already have. H.R. 1 takes steps to
roll-back provisions aimed at stopping ACORN--a group charged with
voter fraud--from getting federal housing funds. Some of the spending
is this bill parading as stimulus--like family planning spending--has
little to do with stimulating the economy and more to do with opening
the U.S. Treasury to political allies.
  I am concerned that this bill has welfare payments parading as tax
cuts. Tax cuts are supposed to go to those who pay taxes. H.R. 1
proposes to provide $145 billion in tax cuts for working families.
However, on closer inspection we find out that $45 billion of what is
labeled as a tax cut is instead a payment from the U.S. taxpayers to
those who do not pay taxes. Furthermore, the bill increases the
refundability of the child tax credit by $18 billion--increasing the
child tax credit payment to those who don't pay taxes.
  Let me also say that I appreciate all of the talk about the need to
work together in a bipartisan fashion. I was pleased that several
Republican amendments were adopted when portions of this bill were
considered in several Congressional Committees. I was deeply
disappointed that a number of the Republican Amendments disappeared
from the bill between the time it was passed in committee and brought
to the House floor for a vote. Bipartisanship is supposed to be a two-
way street, not simply a demand to show bipartisanship by accepting the
Speakers bill.
  If we really want to stimulate the economy we should focus on what
actually creates jobs in the country--small businesses. Small
businesses create 70% of the new jobs in America. Unfortunately, this
bill does virtually nothing to help small businesses.
  I will be voting against the speaker's bill and in support of the
Republican substitute. The bill that I am voting for will lower the 10%
tax rate to 5% and the 15% tax rate to $10%. This will give all
taxpaying Americans a tax cut. It will leave money in their pockets
that they can use it to meet their own family expenses. We include
small business tax relief, including a provision allowing small
businesses to write off up to $250,000 in capital expenditures. We
extend unemployment benefits through 2009 and we exempt these payments
from income taxes. We also include other job-creating provisions and we
do so without raising anyone's taxes. I have also cosponsored
legislation that would reduce the 28% tax rate to 23%. This will cut
taxes for individual and job-creating small businesses.
  Lower taxes, not higher borrowing, spending and debt will put our
economy back on track. I urge my colleagues to vote for lower taxes and
against higher spending and debt.
  Mr. BACA. Mr. Chair, I rise today to voice my strong support for H.R.
1, The American Recovery and Reinvestment Act.
  The United States is in the middle of its worst economic crisis in a
generation.
  In my district, in the Inland Empire of California--we have the fifth
highest rate of foreclosures in the nation; and the unemployment rate
has soared above 10%.
  Too many working families are caught in this economic tsunami;
  Everyday that we sit by and do nothing--more families are losing
their jobs, their homes, and their piece of the American Dream.
  We must act boldly, and we must act quickly.
  H.R. 1 contains the right mix of targeted government spending; and
tax cuts to American workers and business--that will create 4 million
jobs and get our economy moving again!
  As Chairman of the Agriculture Subcommittee on nutrition--I am
especially pleased that the stimulus package includes a $20 billion
increase in SNAP funding.
  This will help to put additional food on the table for over 30
million hungry people!
  It will also immediately stimulate our economy. USDA economists
estimate that this increase will result in $36 billion in new economic
activity.
  I urge my colleagues to support struggling families--and not sit idly
by in this time of crisis. Vote yes on H.R. 1.
  Mr. STARK. Mr. Chair, I rise in support of H.R. 1, the ``American
Recovery and Reinvestment Act of 2009.''
  American families are facing dire economic conditions. In my state of
California, unemployment is nearing 10% and tens of thousands of
families are losing their homes each month. Nationwide, family budgets
and state budgets are stretched to the breaking point. Parents are
forced to decide whether to pay for health care or the utility bill,
while school districts contemplate laying-off teachers and state
welfare and Medicaid caseloads expand. This crisis demands bold action
to get people working again, strengthen our safety net, and build
infrastructure for the 21st Century.
  I am not a proponent of all of the provisions in this bill--
especially the ill-conceived corporate tax breaks that will do nothing
to create jobs or jump-start our economy. The good, however, greatly
outweighs the bad.
  Among the good, I count the necessary spending to bolster state
Medicaid, Unemployment Insurance and Food Stamps programs. Economists
tell us that these steps are some of the most effective ways to
stimulate the economy. These provisions allow resources to go directly
to individuals who have been hurt by the recession and to bolster
weakened state budgets.
  This package will also create jobs right away by funding ``shovel
ready'' projects to improve mass transit, rebuild bridges and roads,
modernize our water systems, retrofit energy inefficient buildings, and
create a clean energy infrastructure.
  To ensure that our children are ready to compete in a global economy,
this legislation makes bold investments in education. These investments
include funding for school modernization, an expansion of the
successful Early Head Start program, child care assistance for an
additional 300,000 children, increased Pell Grants and refundable
education tax credits for college students, and a State Fiscal
Stabilization Fund to prevent teacher layoffs.
  As Chairman of the Ways and Means Health Subcommittee, I am most
excited about the health components we've included in this legislation.
When President Obama signs this bill, he will do more to advance the
cause of repairing our broken health system than the previous
Administration did in eight long years.
  By investing $20 billion in health information technology, this act
puts us on a path to a modern health care delivery system that improves
patient outcomes, increases provider

[[Page H635]]

efficiency, and decreases the cost of health care for all. In fact, the
Congressional Budget Office tells us that this bill will incentivize
90% of America's doctors and 70% of hospitals to adopt electronic
health records--resulting in lower health costs for both the public and
private sectors.
  I have received letters in support of this section from groups that
include the American Hospital Association, Families USA, Health Care
for America Now, the Healthcare Leadership Council, Information
Technology Association of America, the Coalition for Patient Privacy,
and many others. For example, Dr. John Halamka, Dean of Technology at
Harvard Medical School recently wrote about this legislation that:
``With appropriate policies and requirements to implement
Interoperable, certified EHRs, the dream of a fully electronic
healthcare system in the US will move forward more in the next few
years than in my entire career to date.''
  Not only will this investment in health IT improve our health care
system, but it will create high tech jobs for those who develop, train,
and utilize the software--one study estimates that 30,000 jobs will be
created for every $1 billion spent.
  I am proud of the work that has gone into the health IT portion of
this bill to invest in modernizing our health system, and I am excited
about the enormous advantage this gives us as we move later this year
to reform our health care system to cover everyone in America.
  This bill also takes important steps to protect the health insurance
of workers who have lost their jobs due to this economic crisis.
  COBRA health continuation coverage is a lifeline for many people
between jobs, but as anyone who has ever been on COBRA knows, it is
expensive. On average, the monthly premium for COBRA coverage is
$1069--an amount that exceeds many people's entire unemployment check.
  This bill contains a 65% COBRA subsidy for up to 12 months for people
who have been involuntarily terminated as a result of the recession.
Because COBRA doesn't cover everyone, the bill also includes an option
for states to temporarily open their Medicaid program--with 100%
federal funding--to provide health coverage for unemployed workers and
their families. Together, these provisions are projected to protect the
health care of more than 8 million Americans.
  In addition, this bill recognizes the special difficulties facing
older and long time workers in a recession. It provides the ability for
these workers to extend COBRA coverage beyond the standard 18 months
until such time as they have obtained new group coverage or have become
eligible for Medicare. This provision has no cost to the government,
but will provide what could be the only opportunity for longtime
workers to maintain their health coverage.
  There is no doubt that the economic hole our country has been put
into is deep. We will not pull ourselves out of it overnight. But the
legislation before us today will provide a direct jolt to our economy
and will protect those families who are struggling to get by. This is
the kind of bold action that Americans voted for last November, and I
urge all my colleagues to support this bill and get it to President
Obama to be signed into law.
  Mr. KIND. Mr. Chair, I rise today in support of H.R. 1, the American
Recovery and Reinvestment Act of 2009.
  Our country is in the midst of a crisis unlike anything we have seen
since the Great Depression. The number of Americans filing for
unemployment rose for every state last month, and the numbers for
January are not promising. Our credit markets are still frozen, meaning
businesses on Main Street are not able to borrow to make payroll.
Manufacturing production has hit a 28-year low. Individuals and
families are not able to pay their bills and all the while have watched
their retirement accounts dwindle.
  The bill before us today attempts to remedy these problems with a
timely, targeted, and temporary stimulus program to get the economy up
and running again, while at the same time addressing the negative
effects that the current recession has had on individual Americans.
This is not a time for Congress to be timid; we need bold action on
several fronts to get people back to work and get the economy back on
track. This plan is a nationwide effort to create jobs by investing in
clean energy, health care, education and infrastructure, while cutting
taxes for American families and businesses.
  As a member of the House Ways & Means Committee, I am proud of the
work that we did in assembling our part of the larger stimulus bill.
Our plan provides tax relief to working families, assistance with
healthcare costs, and extended and enhanced unemployment. The plan also
gives small and large businesses tax incentives to hire people and
purchase new capital.
  Specifically, H.R. 1 includes a tax cut to 95 percent of all
Americans through a refundable tax credit of $500 for individuals and
$1000 for families. Instead of a refund check in the mail, workers will
see an uptick in each of their paychecks when the tax cut takes effect.
This will provide extra money each pay period for workers to purchase
essential needs like food, clothing, and gas.
  The American Recovery and Reinvestment Act also includes several
small business tax items that will help stimulate the economy.
Specifically, the bill contains an extension of bonus depreciation and
small business expensing that was proven to be effective after the
first stimulus bill was passed in January 2007. The bill also includes
a provision that allows businesses that have suffered a net operating
loss to carry back that loss to offset their current year's tax
liability.
  I would like to commend the Senate Finance Committee for including a
provision that I have long championed in their version of this
legislation. The provision would allow S corporations that convert from
C status to sell assets they held at the time of conversion after 7
years--instead of 10, as required under current law--without incurring
the 35% ``built-in gains'' (BIG) tax. This fix, which appeared in my
broader S Corporation Modernization Act of 2007 (H.R. 4840), would
temporarily release capital that is sorely needed by small businesses
today. In fact, according to IRS statistics, hundreds of thousands of S
corporations are potentially sitting on billions of dollars in
appreciated assets that they cannot access or redeploy due to the
prohibitive tax implications of the BIG tax. I look forward to working
with Speaker Pelosi and Chairman Rangel to ensure that BIG relief
remains in the final recovery package sent to President Obama.

  In addition to the many important tax provisions included in the
American Recovery and Reinvestment Act, the bill also makes meaningful
and important changes in our health care system. First, this
legislation moves our hospitals and doctors towards a nationwide
interoperable electronic health records system, a step that will not
only improve the quality of care provided in this country but will help
us all save money.
  It is my hope that in implementing the Act's health information
technology (HIT) provisions, Secretary-nominee Daschle will strike a
careful balance on privacy standards to ensure that patients' personal
health information is fully protected without precluding important
activities from moving forward, such as quality improvement efforts,
medical research, and outcomes-based reimbursement. In addition, as HIT
adoption progresses under this legislation, it is crucial that Congress
remains vigilant to ensure that all providers--especially those in
rural areas, such as critical access hospitals--do not fall behind. We
must not allow a technology divide to emerge in this country's health
care system.
  In addition to the investment in HIT, H.R. 1 also includes important
funding for comparative effectiveness research, a crucial step that we
must take if we are to move this country towards a value and outcomes
based health care system. By arming both patients and providers with
the best available information, we can ensure that data and the
clinical evidence are guiding the care that is given. With both HIT and
comparative effectiveness research in place, we can finally begin to
control the over-utilization and poor decision-making that have pushed
the cost of health care in this country to untenable levels.
  As critically important as the investments under the American
Recovery and Reinvestment Act are to digging this country out of
recession and economic stagnation, we must not use it as an opportunity
to abandon fiscal discipline. In fact, the causes and roots of this
financial crisis make it more important now than it ever has been to
get the federal budget and our long-term unfunded obligations under
control. Once our economy returns to stable footing, I would strongly
urge Congress and President Obama to undertake significant budget
reform efforts to ensure that we are not leaving a legacy of debt for
our children and grandchildren.
  Our current economic crisis is an extraordinary challenge, but also
an extraordinary opportunity. If this country is to successfully
address the many, serious challenges we are currently facing--from an
expensive and failing health care system, to the need for a greater
reliance on American-made renewable energy--we cannot be blind to
fiscal realities. We must take a serious, thoughtful approach to the
money we both collect and spend as a federal government.
  I know that many are skeptical of this plan before us today. I am
skeptical as well. Though this package may not be perfect, I do not
believe we have the luxury to wait as more Americans lose their jobs
every day. This bill provides a shot in the arm for our economy which
will start lifting the spirits of Americans and stop the oncoming
economic chaos.
  Mr. Chair, I support this important legislation that will jump start
our economy and get Americans back to work.
  Mr. GARY G. MILLER of California. Mr. Chair, there is no debate that
the economy is

[[Page H636]]

in serious trouble and it is clear that quick, responsible action must
be taken to ensure struggling American families will be able to rebound
from the current recession. What is even clearer is the package, which
will ultimately be signed by the President, will not help struggling
Americans nearly fast enough. Rather, it devotes billions of dollars to
special interest groups' pet projects and commits vast sums of money to
long term spending priorities that do nothing to stimulate the economy.
What the American people need is a package that is timely, targeted,
and temporary, which is why I am voting against H.R. 1, the American
Recovery and Reinvestment Act.
  This massive piece of legislation--equivalent to the entire yearly
discretionary budget of the U.S. Congress--was developed in haste,
behind closed doors, and without the input that was promised to the
Minority party in Congress. The bill represents a litany of pork barrel
spending that will do nothing to help hard working American families
struggling to make ends meet. For example, this bill contains $600
million to buy new cars for the federal government, $50 million to fund
the National Endowment of the Arts, $44 million to repair the U.S.
Department of Agriculture Headquarters, $400 million for NASA to
conduct climate change research, and $335 million for sexually
transmitted disease education and prevention programs. These items
represent an increase in government spending, not job creation.
Further, the bill creates 32 more government programs, directs $248
billion in mandatory spending, and according to the non-partisan
Congressional Budget Office, only 40 percent of the discretionary funds
will be spent in the next year and a half.
  All in all, based on the Democrats' estimation of the number of jobs
they wish to create with this legislation, Congress will be spending
$275,000 per job created or saved. Americans should be asking; how will
we pay for all this spending once the economy recovers? The fact
remains that once this bill becomes law, the total federal deficit will
be approaching $2 trillion. We must make sure that the relief we
provide is immediate, effective, and temporary.
  To accomplish this we must focus the stimulus on providing tax relief
to struggling families and small businesses. Small businesses remain
the life blood of the American economy and we must ensure that
resources are in place to allow them to thrive. House Republicans
propose to allow small businesses to take a tax deduction equal to 20%
of their income, and allowing businesses to write asset depreciation
off on their taxes at an accelerated rate, which will immediately free
up funds for small businesses to retain and hire new employees. This is
in addition to retaining the net operating loss carryback and expensing
for small businesses, currently contained in the bill. To ensure
business only hire legal workers and U.S. citizens, I am pleased the
bill includes a four year reauthorization of the E-verify program and
will work to make it mandatory and permanent.
  Rather than a refundable credit based on payroll taxes, House
Republicans propose reducing the lowest individual tax rates from 15%
to 10% and from 10% to 5% As a result every taxpaying-family in America
will see an immediate increase in their income with an average benefit
of $500 in tax relief from the drop in the 10% bracket and $1,200 for
the drop in the 15% bracket. A married couple filing jointly could save
up to $3,200 a year in taxes. The Alternative Minimum Tax is again
threatening to affect millions of middle class Americans and needs to
be addressed immediately so taxpayers can be confident that this
burdensome tax will not strike them this year. Additionally, House
Republicans propose to make unemployment benefits tax free so that
those individuals between jobs can focus on providing for their
families.
  The stimulus proposal pending in Congress includes record levels of
government spending that will substantially increase the current
deficit. As stewards of the economy, Congress must ensure that the
proposals adopted here are the most effective at turning the economy
around. Wasteful spending and new government programs will only place
the American people at a greater risk in the future. Americans deserve
a stimulus package that addresses their needs, not a stimulus package
that devotes millions of dollars to pet projects and interest group
demands.
  Mr. HALL of Texas. Mr. Chair, I rise today to express my deep
disappointment at a missed opportunity in this Stimulus Bill. Before us
is a package that many claim will stimulate the American economy and
create jobs. But we are on the verge of losing thousands of highly
skilled American jobs and this bill has done nothing to address the
situation.
  As Ranking Member of the Science and Technology Committee, I am
particularly concerned about a section aimed at the National
Aeronautics and Space Administration. As many of us are aware, NASA is
currently on a path to retire the Space Shuttle in 2010 and develop the
next generation launch system, but without sufficient funding that
replacement system cannot be ready before 2015 at the earliest. During
this five year gap, America will pay cash to Russia to provide
transportation for our astronauts to our International Space Station.
  The bill calls for $600 million, but none of that money will help
close this impending gap. This one-time addition will not keep an
estimated 5,600 jobs from disappearing during the gap, and it will not
reduce our dependency on and payments to Russia. I want to be clear--
because this bill fails to include funding to reduce the gap, we will
be forced to lay off high tech workers in the United States while we
are paying Russia to do the job that these American workers used to do.
  Many Members of Congress have been concerned by this situation. Last
year's NASA Authorization Bill passed the House with a resounding vote
of 409-15 and authorized an additional $1 billion to accelerate the
development of the shuttle follow-on--known as Constellation System.
Unless the Constellation System can be delivered sooner than 2015, we
stand to lose thousands of highly-skilled aerospace jobs that will be
very difficult and costly to replace. The sooner these systems are
developed the sooner we eliminate our reliance on the Russians for
access to the International Space Station, and give our Nation the
systems necessary to explore beyond low-Earth orbit to the Moon and
beyond.
  Keeping American tax dollars working for us here at home would
stimulate the creation of highly-skilled, well-paid jobs in this
country. Furthermore these types of investments in our Nation's space
transportation infrastructure would continue to pay dividends and have
large multiplier effects throughout the economy by stimulating high-
tech manufacturing and networks of suppliers around the country. It is
exactly the kind of thing that should be part of this ``stimulus
package.'' Not funding the acceleration of the Constellation Systems
represents a failure of our national leadership that will be paid for
on the backs of American aerospace workers and with a loss of our
industrial competitiveness against our international competitors.
  It makes me sick that we are bailing out failed banks and
corporations while ignoring the support of a successful Space Station
and space program--a program that could defend our nation from space
and provide a cure for our most deadly diseases. By lessening the
utility of a Space Station that provides a platform for lifesaving
research, including growing white corpuscles that could be used to cure
cancer, we are weakening our competitiveness. We are allowing Russia to
reap the benefits of our space program--benefits that are badly needed
here at home. It is comparable to buying energy from Saudi Arabia and
other nations and not spending that same amount developing our own
natural resources, such as those found in ANWR, off the coasts of
Florida and California, and in the energy-rich Gulf of Mexico.
  I am told that the total budget for NASA is less than 1% of the
Federal budget (\7/10\ths to be exact). Surely, we can honor the
request that Congresswoman Kosmas had in her amendment that the Rules
Committee rejected--a request that would have narrowed the gap--
especially considering that we throw away billions on other nations
through foreign aid. President Monroe is famous for saying ``hands off
this hemisphere,'' but we should be saying ``hands on this hemisphere''
and protecting our own American citizens, and their jobs, first.
  Mr. SKELTON. Mr. Chair, as the House considers H.R. 1, the American
Economic Recovery and Reinvestment Act, let me express my support for
the measure, which would appropriate additional funds for important
rural development programs and invest in the future of the United
States.
  As a rural Missouri Congressman and Chairman of the House Armed
Services Committee, I have examined our current economic crisis through
the perspective of those who live in small town Missouri and through
the lens of national security.
  The United States is the world's indispensable nation. To remain so,
we must utilize all elements of national power--military, diplomatic,
and economic. Should our economy fail, it will dramatically undercut
America's military and diplomatic strength and make it far more
difficult to properly address international challenges.
  To confront the recession, Congress and the President have an
obligation to act boldly, yet wisely, to help avert the kind of
economic downturn that could have lasting, severe consequences for the
American people and for the future of our country.
  Our economy has been in decline since December 2007, and the downturn
has accelerated in recent months. Consumer confidence and spending have
fallen, businesses have shed millions of jobs, housing values have
diminished, and mortgage foreclosures have risen dramatically.
Economists from all political

[[Page H637]]

stripes warn us that without additional stimulus, deflation could sink
the American economy for years to come.
  While Congress and the Administration have acted over the past year
to battle the recession, more must be done immediately to create jobs,
to stimulate consumer spending, to promote small business development,
and to mitigate the housing crisis.
  I am pleased that the economic recovery bill being considered in the
House takes important steps toward stimulating the sluggish economy.
  The measure would invest heavily in our national infrastructure and
in the health, education, and safety of the American people; provide
important tax relief for working families and for businesses; and
strengthen the safety net for workers who have fallen on hard times.
  As someone who represents small town Missouri, I am particularly
pleased that the legislation would commit plentiful resources for
programs important to rural America, including rural water programs,
rural highways and infrastructure projects, school modernization
initiatives, Corps of Engineers projects, and Internet broadband
expansion.
  I also am grateful that the legislation would direct additional funds
toward critical military construction projects, including military
health care, child care, and housing facilities. These projects are so
very important to our military personnel and their families.
  While the economic recovery legislation is an important part of our
country's effort to stimulate the economy, it should not be perceived
as a silver bullet that will cure all economic ills.
  Congress and the Administration must continue to examine the global
economic turmoil and consider additional legislative solutions to it,
especially as it relates to the housing sector. I remain troubled that
mortgage foreclosures have risen sharply despite new laws that
encourage banks to renegotiate troubled mortgages. The housing crisis
is at the heart of our recession and more must be done on this front.
  I urge my colleagues to support the economic rescue bill and look
forward to working with the Senate to ensure the measure can be enacted
swiftly.
  Mr. DREIER. Mr. Chair, because the Committee on Education and Labor
did not mark up its portions of H.R. 1, I am including in the record,
at their request, their views on the portions of the bill that should
have been marked up by the Education and Labor Committee. Had the
Committee marked up the bill, these would have been included in the
Committee report. I hope that in the future, we can do a better job of
adhering to regular order so that it will not be necessary to take
these steps.

                        Minority Views on H.R. 1

              Committee on Education and Labor Republicans

       Although it is described by the Democratic majority as an
     ``economic stimulus package,'' this massive spending vehicle
     contains some of the most sweeping changes to the role of the
     federal government in elementary/secondary and postsecondary
     education policy in decades. And despite the far-reaching
     nature of the proposed policy shifts and spending expansions,
     these changes have not been approved or even reviewed by the
     U.S. House Committee on Education and Labor, the
     congressional committee with sole jurisdiction over these
     matters. Instead, less than a week after it was publicly
     released, Democrats are poised to approve a bill loaded with
     wasteful government spending; a bill that will not have the
     intended effect of creating jobs and stimulating our shaky
     economy; and a bill that makes broad, unprecedented education
     policy changes with little to no congressional guidance.
       Committee Republicans believe that Congress should pass a
     real economic stimulus package that will provide middle-class
     families, job seekers, small business owners, and the self-
     employed with reforms that will create jobs and put the
     economy back on track. Instead of giving billions of dollars
     to federal and state government bureaucrats to spend on pet
     programs created and supported by the Congressional
     leadership and the new Administration, we need to put more
     money in the hands of American families and businesses and
     empower them to help in our nation's economic recovery.


Will the Proposed Education Spending Measures Create Jobs and Stimulate
   the Economy, or Simply Saddle Our Children with Unmanageable Debt?

       The Democrats' spending package could provide more than
     $145 billion in new spending for elementary/secondary and
     postsecondary education. This staggering funding level is
     more than double the Department of Education's current
     discretionary budget for all of its programs and activities.
       In light of the fact that this bill is being considered
     outside of the normal authorization and appropriations
     processes, it is vitally important that we ask tough
     questions and demand satisfactory answers before committing
     hundreds of billions of taxpayer dollars to funding new and
     expanded programs. In each case, we must ask--
       ``Will every dollar allocated truly stimulate the
     economy?''
       ``Will the funding in the education portion of this bill
     actually create jobs?''
       ``How many private sector jobs will the bill create?''
       ``How long will these jobs last?''
       ``Is the funding sustainable once the initial infusion is
     gone?''
       ``Or will this simply create an unrealistic demand for
     federal dollars and expectations that will continue to drive
     our deficit into the trillions of dollars in the future?''
       ``Is the funding in the economic stimulus bill truly
     `emergency' spending, or could it wait and be considered
     through the normal legislative process?''
       Unfortunately, when one looks at the package proposed
     unilaterally by congressional Democrats and attempts to
     answer these questions, the only logical conclusion is that
     the spending in this bill will not provide the job creation
     or other benefits needed to support our economy in the short-
     term. Nor will it provide the necessary levels of immediate
     relief to struggling American families and businesses. The
     vast majority of spending being proposed would simply bloat
     the federal bureaucracy and expand the federal government's
     role in education in previously unseen directions.
       Perhaps the Washington Post said it best in an editorial
     that appeared just days before this massive spending plan is
     scheduled for a vote in the U.S. House. It said, ``Helping
     hire, equip and pay police, a $4 billion item under the bill,
     might be a good idea, but writing checks to individual
     households for the same amount would do more to stimulate the
     economy. Ditto for $16 billion in Pell Grants for college
     students, $2.1 billion for Head Start and $50 million for the
     National Endowment for the Arts. All of those ideas may have
     merit, but why do they belong in an emergency measure aimed
     to kick-start the economy? . . .
       ``[G]iven their cost, and the inherent difficulty of
     forecasting their impact, Congress should vet them through
     the normal legislative process, weigh them against other
     priorities and pay for them.''
       And although some of the money in the bill is intended for
     worthy goals that enjoy bipartisan support, such as those
     that will increase student awards in the Pell Grant program,
     the funding increase is slated to vanish after two years. For
     students entering college this year, with this temporary aid
     increase, we must ask: How will they make up the difference
     when the additional federal money is no longer there in two
     years? Either all low-income students will see their Pell
     Grants slashed by $500 or more, or Congress will need to find
     at least $16 billion each and every year going forward just
     to maintain this funding level. This scenario will not only
     play out on college campuses, but in states, school
     districts, public schools, Head Start centers, and local
     workforce centers all across the country that are slated to
     receive billions in temporary taxpayer dollars.
       It is fiscally irresponsible and unfair to students and the
     American taxpayer to hold out the promise of additional money
     only to pull it back, or to set up a situation in which
     federal spending--and along with it, the deficit--has nowhere
     to go but up to relieve the tremendous pressure to continue
     programs at exorbitantly high levels once the stimulus is no
     longer in effect.


    Unprecedented Expansion of Federal Government's Role in School
              Construction with No Congressional Oversight

       Over the past decade, the condition of local public school
     facilities has become an important component of the education
     debate in communities throughout the nation. In both cities
     and suburbs, students, parents, teachers, and many public
     officials argue that school buildings are overcrowded,
     unsafe, and obsolete. As a result, the amount being spent on
     school construction, modernization, and renovation has become
     a significant issue in many states and local school
     districts.
       While strongly supportive of public education,
     historically, the federal government has had an extremely
     limited, almost non-existent role in financing school
     infrastructure projects and facility improvement programs,
     which have been a state and local responsibility. The federal
     government has chosen to maintain this limited role in school
     construction while focusing on adequately funding programs
     that increase student achievement, primarily through the
     Title I program for low-income students, and on helping
     states provide a free, appropriate public education to those
     students with special needs under the Individuals with
     Disabilities Education Act (IDEA). It has also chosen to
     focus limited federal resources on providing lasting and
     permanent increases to the Pell Grant program that directly
     benefits low-income students pursuing a college education.
       Ignoring more than 40 years of deliberate effort by
     Congress to limit its focus to these national priorities
     since passage of the Elementary and Secondary Education Act,
     IDEA, and the Higher Education Act, the Democrats responsible
     for drafting this spending package have chosen to create an
     unprecedented $20 billion federal school construction
     program. The program would weaken efforts at the state level
     to fund school construction, dramatically increase the cost
     of building elementary and secondary schools and public
     colleges and universities, and dramatically expand the size
     and scope of the federal government.
       With the unmet need for school construction and renovation
     at the elementary and

[[Page H638]]

     secondary level estimated at $112 billion, and with states
     and local school districts spending an average of $20.7
     billion annually on school construction, it's a valid
     question to wonder how a new federal school construction
     program administered by the U.S. Department of Education
     (which received roughly $22 billion last year for all
     programs under the Office of Elementary and Secondary
     Education) could do a better job at building schools than
     state and local officials.
       One of the most troubling aspects of the massive new
     federal school construction program authorized in this so-
     called economic stimulus bill is that it will be subject to
     the requirements of the Depression-era Davis-Bacon Act, which
     requires construction projects to be paid using flawed
     ``prevailing wages'' and favors union wage workers. It is
     estimated that this requirement raises the costs of school
     construction by as much as one-third in some parts of the
     country, especially in those local communities that have
     lower costs and are not subject to the flawed prevailing wage
     structure.
       The federal government should maintain its longstanding
     focus on assisting states and local school districts to
     improve student academic achievement and providing low-income
     students with Pell Grants so that they can go to college. It
     should not undertake a $20 billion school construction
     experiment.


   Denying Students with Disabilities the Ability to Receive a High
             Quality Education at Public or Private Schools

       The proposed economic stimulus package prohibits states and
     school districts from using funds under the State
     Stabilization Fund from assisting students that attend
     private elementary or secondary schools. This provision
     directly contradicts the rights guaranteed to students with
     disabilities under the Individuals with Disabilities
     Education Act or IDEA, and affirmed by the U.S. Supreme
     Court. Under IDEA, parents of children with disabilities have
     the right to place their children in an education environment
     that best meets the needs of the particular student--
     regardless of whether it is a public or private school. Under
     the statute, states and school districts can also place
     children with a disability in a private school in order to
     meet the law's requirement that a disabled child be provided
     a free and appropriate public education. In both cases, IDEA
     requires that children in private schools receive special
     education and related services in order to enhance their
     education. The economic stimulus package, which would
     prohibit states and school districts from using funding under
     the bill to educate students with disabilities in private
     school settings, jeopardizes the fundamental and basic tenet
     of IDEA, which is to ensure that all students with
     disabilities, regardless of where they attend school, are
     entitled to the same high quality elementary and secondary
     education as their peers. The provision is a major reversal
     in the federal government's effort to ensure that services
     are provided to students with disabilities and one that
     should be removed from the package.


 New Federal Education Policy Mandates Jeopardize Money to States that
                        Want Federal Assistance

       The Democrats' economic stimulus package also includes $79
     billion for a new ``state stabilization fund'' to assist
     states in coping with their recent budget problems. Of the
     total funding, at least 61 percent must be spent in support
     of elementary/secondary and postsecondary education. In order
     for a state to receive assistance under this new program, it
     must: maintain state support for elementary/secondary
     education and postsecondary education at the level that it
     had in fiscal year 2006; address inequities in the
     distribution of teachers between high- and low-poverty
     schools; establish a statewide longitudinal data system;
     enhance reading and math assessments; and ensure that all
     students with disabilities and those who are Limited English
     Proficient (LEP) are included in state assessments and are
     offered proper accommodations to enable their participation
     in state assessments.
       According to current data on just three of the five
     requirements outlined above, many states will be unable to
     qualify for the additional money under the state
     stabilization fund. Certainly, none will qualify in the near-
     term. Hence, we have to determine that the state
     stabilization fund is not likely to lead to any job creation
     or stimulate the economy in any meaningful way.


                               conclusion

       Under the guise of economic stimulus, this spending package
     makes unprecedented changes in the direction of federal
     education policy without observing the regular legislative
     process. Even more troubling, it is doubtful that the funding
     will actually create jobs or stimulate the economy. It is far
     more likely that the high levels of spending in the bill will
     only stimulate expectations for future spending to levels
     that are unrealistic and unsustainable. Our children will be
     saddled with debt, our states and schools will be left
     holding the bag when the funding disappears, and our economy
     may be left worse off than it is now.
     Howard P. ``Buck'' McKeon.
     Peter Hoekstra.
     Mark E. Souder.
     Joe Wilson.
     John Kline.
     Rob Bishop of Utah.
     Brett Guthrie.
     David P. Roe.
  Mr. BACHUS. Mr. Chair, I and Mr. Neugebauer, Mr. Lucas, Mr. Manzullo,
Mrs. Biggert, Mr. Gary Miller of California, Mrs. Capito, Mr.
Hensarling, Mr. Garrett of New Jersey, Mr. Barrett of South Carolina,
Mrs. Bachmann, Mr. Marchant, Mr. Posey, Ms. Jenkins and Mr. Paulsen
submit the following for the Record:

                     Committee on Financial Services

                            Republican Views

                                   on

      H.R. 1, the American Recovery and Reinvestment Act of 2009,

                            January 28, 2009

        $15 billion of the $1.16 trillion in costs (debt plus
     servicing) associated with H.R. 1, the ``American Recovery
     and Reinvestment Act of 2009'' (ARRA), falls within the
     jurisdiction of the Committee on Financial Services. The
     stated goal of this legislation is to provide immediate
     stimulus to our ailing economy. It is, therefore, imperative
     that this legislation target funds to programs and
     organizations which offer the maximum immediate economic
     stimulus, and ensures that bad actors are not rewarded.
       Yet, several provisions included in the bill do not meet
     this standard. First, this legislation does not have
     important safeguards to prevent funds from being distributed
     to organizations--such as the Association of Community
     Organizations for Reform Now (ACORN)--implicated in illegal
     activities. Second, the $15 billion earmarked for existing
     housing programs in Title XII of ARRA cannot be spent in a
     timely and efficient manner that will provide the economic
     stimulus that is so sorely needed.
       The majority of the housing programs funded under the
     stimulus bill have large unexpended balances sitting in their
     accounts. While the funds have been obligated, the programs
     have very slow spend-out rates. According to the
     Appropriations Committee staff:
       Public Housing Capital Fund has $7 billion in unexpended
     balances ($2 B in 2008; $1.5 B 2007; $1 B 2006 and $500
     million in 2005). Given the backlog in the pipeline, there is
     a legitimate question whether this new $5 billion can be
     spent in a timely enough manner to have a stimulative effect
     on the economy.
       The Section 202 (elderly housing) program has an unexpended
     balance of $4.4 billion and the Section 811 (disabled
     housing) program has a $1 billion unexpended balance. This
     program allows for $2.5 billion in ``energy retrofit
     investments.'' While this may be a laudable long term goal,
     its relationship to economic stimulus seems tenuous.
       Native American Block Grants Program currently has $1
     billion in unexpended balances in its account; yet $500
     million, which is essentially another year's worth of funding
     for this program, is included in H.R. 1.
       The Neighborhood Stabilization Program, which was enacted
     seven months ago, has yet to disburse any of the $4 billion
     authorized under the program to states or localities eligible
     for funding. However, H.R. 1 includes another $4.19 billion
     for this program.
       We are concerned that H.R. 1 includes billions of dollars
     in new spending on existing programs that are clearly in need
     of reform. In addition, H.R. 1 rewrites the Neighborhood
     Stabilization Program that Congress enacted last year, which
     was designed as a one-time appropriation. There is
     considerable disagreement on the merits of the Neighborhood
     Stabilization Program, and no evidence that it works, given
     that no funds have been disbursed to date. In an editorial
     dated January 25, 2009, the Washington Post stated:
       For sheer irrationality, it would be hard to top the $4.19
     billion the bill would give to the Neighborhood Stabilization
     Program, on top of $4 billion authorized last year. This
     program gives local governments money to buy and rehabilitate
     homes that have been foreclosed on--thus giving lenders an
     incentive to foreclose on more houses.
       In addition to questioning the economic stimulus nature of
     the housing funds included in H.R. 1, we are concerned that
     the bill gives groups, such as ACORN, access to billions of
     taxpayer dollars. ACORN already qualifies for and receives
     millions of dollars in Federal funding as a HUD-certified
     housing counselor through HUD's HOME and Community
     Development Block Grant programs. According to a 2008
     analysis conducted by House Republicans, ACORN has received
     at least $53 million in direct Federal funding since 1994.
     The group receives millions more from the government through
     indirect funding from states and cities.
       At a time of financial distress, Congress should not reward
     bad actors that illegally manipulate our electoral process.
     Last Congress, language was included in the ``Housing and
     Economic Recovery Act of 2008'' (HERA) (Public Law 110-289)
     barring any group indicted for Federal election fraud or that
     hired an individual indicted for Federal election fraud from
     accessing funds made available through the Neighborhood
     Stabilization Program. This provision had the effect of
     rendering ACORN ineligible for assistance. Due to the changes
     to the Neighborhood Stabilization Program included in the
     economic stimulus bill, it is unclear whether those same
     safeguards and restrictions continue to apply.
       It is important that Congress take steps to revive our
     economy. However, H.R. 1--specifically the spending on
     housing programs in this legislation and the lack of
     safeguards--will not translate into the necessary

[[Page H639]]

     stimulus to get our economy moving again. Instead, we believe
     that allowing hard working American families to keep more of
     their earnings in the form of tax cuts will have a far more
     positive economic effect than any amount of government
     spending and borrowing. When individuals are able to take
     home more of their earnings, they will save, spend and invest
     more--all of which help stimulate the economy.

  Ms. GINNY BROWN-WAITE of Florida. I rise today in support of the
American taxpayer, not the American Recovery and Reinvestment Act.
  For months the American Recovery and Reinvestment Act was billed by
President Obama as a job creating, infrastructure improvement package.
  I know I wasn't the only one that heard the words ``shovel ready''
over and over again when I inquired about ways to help Florida's 5th
Congressional District.
  Despite the fact that this bill was crafted exclusively by President
Obama and Speaker Pelosi, we as a country were asked to give President
Obama a chance and were told that we should trust his judgment.
  President Obama has taken what should have been a bipartisan bill to
create jobs and packed it with ideological spending priorities from the
liberal left.
  The best way to stimulate the economy and create jobs is to cut tax
rates across the board, reduce the corporate tax rate, and better fund
organizations like the Small Business Administration and the Federal
Housing Administration. These concrete steps would stimulate job
growth, put money into consumers' hands quickly, and help prevent
future home foreclosures.
  Our Republican alternative, offered by Mr. Camp and Mr. Cantor, would
do just that. We eliminate all the pork-ridden projects, cancel out
billions in funds for projects not ready till 2012, and focus on
providing immediate relief to the American public.
  The bill before us today does virtually nothing to promote immediate
job growth or help struggling businesses. America's strength is based
on the hard work and ingenuity of its citizens, not throwing taxpayer
funds into yet another bureaucratic black hole.
  A real stimulus package should return tax dollars back to the people
that paid them, provide real incentives for American businesses to hire
new employees, and help people stay in their homes. The bill before the
House today does none of this; instead it focuses on make-work
government projects and pet projects of the liberal left.
  Mr. Chair, facts are stubborn things.
  Only $450 million of this bill (less than one half of one percent)
would go to capitalize a loan program for small business, even though
the facts show that small businesses are the backbone of our economy
and the key engine of job growth in this country.
  Furthermore, only seven percent of this package will actually be
spent on improving our nation's roads and infrastructure.
  Why would the Democrat Majority and President Obama not provide more
funding in this bill to help small business, to improve our roads and
repair our aging infrastructure?
  My only guess is that their idea of a ``stimulus'' plan means we
increase funding for a myriad of already bloated federal government
programs that should be dealt with in the appropriations process, not
an emergency jobs and infrastructure bill.
  Some of the most egregious examples of programs within the massive
spending bill include; $50 million for the National Endowment for the
Arts; $6.2 billion for a Weatherization Assistance Program; $150
million for the Smithsonian Facilities; $1.1 billion for Comparative
Effectiveness Research; $100 million for Lead-Based Paint Hazards. And
a long, long list of other misguided priorities.
  With these non-essential projects, the message that President Obama
is sending to the American taxpayer is that pork barrel policies are
here to stay, and that the era of Change in Washington is already dead.
  While the President and the Speaker have attempted to distract the
American public from the true intentions of this bill, the
Congressional Budget Office has called them to account.
  The non-partisan CBO found that only $26 billion in this bill would
be spent in 2009, and less than half of the total would be spent by the
end of 2011.
  What happened to ``shovel ready''?
  What happened to creating jobs with purpose?
  And speaking of jobs, wouldn't you think that the best way to create
jobs in this country would be to stimulate private sector investment
and growth?
  Sadly, this Administration feels that big government should get even
bigger, and if you run the numbers, even richer.
  According to a study of the bill published in the Wall Street Journal
today, each new government job created by the Democrat bill will cost
the American taxpayer $646,214.
  We all joke about the inefficiency of the federal government, but at
least we don't pay them $600,000 a year!
  Furthermore, one would hope that if the American public is being
asked to go another trillion dollars into debt that at least Florida
would get our fair share of funds in exchange.
  Sadly, when Democrat leaders drafted this bill they chose to give
Florida the absolute lowest dollars per capita of any state and the
second lowest dollars per capita for transportation of any state. If my
constituents are forced to take on that much new debt, they should at
least get something out of this bargain with the devil. Instead they
get shortchanged and still get stuck with the bill. That is not fair,
but is what we have come to expect from this Democrat leadership.
  The bottom line is that we can not spend our way out of this economic
mess.
  And by doubling down, my colleagues are making our hole that much
deeper.
  There is no doubt that our economy needs a kick start to put us back
on the path to prosperity. What we do not need, however, is yet another
pork ridden bailout that produces few jobs, sends billions of your
money to corrupt organizations like ACORN, and does nothing to put
money back in the hands of American taxpayers.
  Mr. Chair, I oppose the American Recovery and Reinvestment Act and I
encourage my colleagues to do the same.
  Mr. MURTHA. Mr. Chair, the American Recovery and Reinvestment Act of
2009 includes a total of $4.9 billion to address critical facility
maintenance and repair issues within the Department of Defense; invests
in energy efficiency at DoD facilities; and provides much needed
research into alternative energy sources for the Department.


                               FACILITIES

  The bill includes $4.5 billion to make major repairs and upgrades at
Defense Department facilities, which affects both the quality of life
for service personnel and their effectiveness in performing their
missions.
  Over the past two years, the Defense Subcommittee has found numerous
base facilities to be inadequate and/or in dire need of maintenance and
repair. These conditions are clearly illustrated by the problems we've
seen at Walter Reed Army Medical Center and the barracks at Ft. Bragg.
The Defense Department's annual budget requests have failed to address
these issues, and the latest estimates show that the facilities repair
backlog has reached $63 billion and continues to grow.
  The funds made available in this bill will provide the Defense
Department with: $154 million to rehabilitate Army barracks; $455
million to revitalize Military Medical Treatment Facilities; $2.1
billion to reduce the backlog of repairs to Defense facilities
throughout the country; and $1.8 billion to make DoD buildings more
energy efficient.


                            ENERGY RESEARCH

  The bill also includes $350 million to advance research and
development programs for fuel cells and batteries; alternative fuels;
hybrid energy sources; improved engines; and bio-fuels.
  The Department of Defense is one of the largest single energy
consumers in the world. The FY 2009 DoD Appropriations Act alone
provided $14.4 billion for the Department to purchase 136 million
barrels of refined petroleum products. In addition to the cost, the
need to store and transport fuel represents one of the most significant
logistical challenges for U.S. Military Forces.
  This research funding is essential to reducing the Defense
Department's dependence on petroleum, and the security risks that arise
from being dependent on a single energy source.
  I urge you to support this bill.
  Mr. SULLIVAN. Mr. Chair, today, the House is debating how best to
boost the nation's economy. I would like to underscore for my
colleagues the important relationship between healthcare and economic
vitality, and the importance of leveraging private matching funds to
address health care challenges in my district and throughout the
nation.
  Health status is a major determinant in a region's economic
viability, yet many parts of the country face shortages in health care
providers and services. These medically underserved areas often
experience significant disparities in life expectancy and incidence of
chronic disease, and the disparities are often most acutely felt by
minority or rural populations.
  Some surprising statistics in my district highlight the consequences
of this sort of discrepancy. While north Tulsa comprises 40% of the
region's population, only 4% of the region's physicians are located
there. Due to these shortages of health care services, we have seen a
fourteen year difference in life expectancy between north Tulsa and
south Tulsa. In addition, residents of north Tulsa have rates of cancer
and heart disease that are 30% higher than national averages.
  As Congress considers ways to stimulate the economy, I encourage my
colleagues to consider the significant health disparities that

[[Page H640]]

exist in medically underserved areas, particularly in rural areas and
areas with large minority populations. These regions need coherent
health care delivery systems--systems that integrate primary care,
preventive care, specialty care, and acute care, and that are connected
through a health care technology infrastructure. I also encourage that
in addition to directing federal funds to this effort, that we can also
leverage non-federal, private matching funds to bring this about.
Health care projects with strong community public-private partnerships
with the availability of private matching funds should be used as a
factor for distribution under the stimulus.
  While the legislation before us devotes significant funding to health
care, including community based wellness and prevention programs, we
should work to ensure that these programs are designed in such a
fashion as to provide comprehensive and systemic improvements to
medically underserved communities. It is my hope that in directing
federal funds to this effort, we can also leverage non-federal sources
to fund our health care safety net.
  As this legislation moves forward, I look forward to working with my
colleagues to address the health care disparities confronting
underserved communities in Oklahoma and around the country in a way
that not only improves the health of our constituents but the economy
as well.
  Mrs. CAPPS. Mr. Chair, I rise in support of the American Recovery and
Reinvestment Act.
  I am glad that we have taken seriously our challenge to pass an
economic stimulus bill right away so that we can take important steps
to protect ordinary Americans.
  I have been particularly concerned about the effect of the current
economic situation on health care access and am relieved to see that
the bill before us today takes excellent steps to address the health
care crisis.
  Most important, in my view, are the Medicaid provisions that will
ensure states can continue to provide Medicaid to their residents with,
at minimum, the current level of benefits.
  My home state of California, much like other states, is suffering a
budget crisis that is leading to proposals of slashing Medicaid
benefits.
  We must protect current benefits AND ensure that Medicaid and COBRA
are available for the high number of Americans who have lost their
jobs.
  This bill does an excellent job of doing that.
  I also want to applaud the inclusion of Health Information Technology
language, including essential privacy protections.
  Spurring adoption of HIT will reduce medical errors, allow physicians
and nurses to spend more time with their patients and create jobs.
  But I would be remiss if I didn't express disappointment in one
important item that was unfortunately not included in today's bill.
  The Energy & Commerce Committee, on which I serve, rightly included
language to make family planning services for low-income women a state
option.
  Currently, states must apply for a waiver, accompanied by the
uncertainty of future applications' success, in order to provide this
basic health care service for women who do not otherwise qualify for
Medicaid, but are low-income nonetheless.
  Through a campaign of misinformation perpetrated, I am sad to say, by
some of our own colleagues in Congress, we were forced to strip this
provision out in order to reinforce the message of the underlying bill.
  But make no mistake, the family planning provisions would have saved
hundreds of millions of dollars over the next several years.
  And you don't have to take my word for it, just ask the CBO, which
scored the provision as a savings.
  So I will remind my colleagues that we have lost an important
opportunity to improve health care services to the extent that this
bill originally intended to do and I vow to work with the White House
and Congressional leadership to ensure we fix this in the near future.
  Nonetheless, the remaining health care language is strong and will
provide tremendous relief to the millions of currently unemployed
Americans as well as those who rely on Medicaid.
  Mr. Chair, we also have a tremendous opportunity to put America on a
path to economic recovery by moving us toward energy security.
  Immediate investments in renewable energy production and rebuilding
our infrastructure to be greener will create hundreds of thousands of
jobs, save billions of dollars in energy costs, and reduce our carbon
footprint in the long term.
  And that's exactly what the bill before us today does.
  It creates new programs, and it makes important changes to others,
that will get Americans back to work.
  And the cash savings achieved through increased efficiency will go
back into local communities and could be used to pay mortgages and
other necessities continuing to improve the economy.
  I am also pleased to see that this bill will help our country prepare
for the DTV transition.
  By allocating funds to the converter box coupon program, hotline call
centers, and consumer education, we can ensure millions of Americans
are not left behind during this transition.
  Finally, this bill will enable people in un-served and underserved
areas of our country to harness the internet as a tool for economic,
social and civic empowerment by providing much needed funding for
broadband deployment and wireless voice service.
  So I want to applaud the Chairman for his excellent work on the
provisions that fall within our Committee's jurisdiction and urge my
colleagues to support it.
  Ms. EDDIE BERNICE JOHNSON of Texas. Mr. Chair, as snow drifts outside
our nation's Capitol, we acknowledge that we as a nation are in the
midst of an economic winter. I support H.R. 1, the American Recovery
and Reinvestment Act, because I believe that the federal and state
programs funded therein will provide needed stimulus to our economy.
  With record numbers of Americans unemployed, with our defense budget
stretched in war, with our children slipping in educational
competitiveness, and with the sick and elderly facing a deepening well
of poverty, it is time to act. Congress and the Administration have
swiftly assembled a package of wide-ranging support in many important
areas. I particularly support the science and educational stimulus
activities.
  Science and technology funding go directly to the high-tech
workforce. Investments in the Advanced Research Project Agency for
Energy will support research into energy sources and energy efficiency.
The bill also contains funding toward a more reliable, energy-efficient
electricity grid to keep up with tomorrow's technologies. It contains
money for the National Institute of Standards and Technology to fund
grants for research science buildings at colleges and universities.
Funding for the National Aeronautics and Space Administration will
enable more scientists to conduct climate change research. Investments
in scientific research are investments in our future. They will pay for
themselves ten-fold over future generations and very well could save
our planet from the destructive effects of global warming.
  Educational opportunities for all students are an imperative
investment in our future. This recovery package will make bold
investments to provide children with a 21st century education,
modernize our schools and colleges, and make college more affordable.
An investment of $14 billion for modernization of K-12 schools is badly
needed. The legislation also contains money to enable bright students
to go to college. It improves current higher education tax credits by
creating a new ``American Opportunity'' tax credit with a maximum of
$2,500, rather than the current maximum of $1,800. This expansion will
make college more affordable for millions of low- and moderate-income
students. It also provides additional support for the Head Start
program, which will provide important development services to 110,000
additional low-income preschool children. Furthermore, the bill
provides funds for competitive grants to provide financial incentives
for teachers who raise student achievement and close the achievement
gaps in high-need schools.
  We must invest in our nation's Historically Black Colleges and
Universities (HBCUs) and other Minority Serving Institutions.
Currently, there exists a ``digital divide'' between HBCU campuses and
their counterparts. There is a great need to update campus technology
and develop educational and technological opportunities for students
and staff. Because of their unique resources, HBCUs continue to be
extremely effective in producing African American graduates and
preparing them to compete in the global economy. HBCUs represent nine
of the top ten colleges that graduate the most African Americans who go
on to earn Ph.D.s. I request to insert data into the Record
demonstrating the important value that HBCUs add, when it comes to
minority education. The distinctive ability of HBCUs to provide
opportunity and advancement to African American students is undeniable
and is worthy of federal support.
  When Americans think of this landmark stimulus bill, shovel-ready
projects may immediately come to mind. However, investments in research
and in math and science education will pay long-term dividends. They
not only will create new jobs, but they will elevate our workforce by
providing an excellent education. These investments will open a world
of opportunities for millions who previously had none. This bill is an
investment in our future: tomorrow and for decades to come.

  Historically Black Colleges and Universities, as Well as the United
 Negro College Fund Serve a Predominantly Low-income, Minority Student
                               Population

       60 percent of UNCF students come from families with average
     incomes under $30,000.
       92 percent of UNCF students require financial assistance to
     attend college.

[[Page H641]]

       60 percent of UNCF students are the first in their families
     to attend college.
       Yet HBCUs continue to educate and graduate African American
     students at higher rates than other colleges and universities
     and with fewer resources.
       HBCUs represent less than 3 percent of all postsecondary
     institutions, but produce 18 percent of African American
     college graduates.
       In 2000, 40 percent of all African American students who
     received baccalaureate degrees in physics, chemistry,
     astronomy, environmental sciences, mathematics, and biology
     graduated from HBCUs.
       Between 1997 and 2001, more African American science and
     engineering doctoral recipients began their educations at
     UNCF institutions than at Berkeley, Harvard, the University
     of Pennsylvania, MIT, Brown, Stanford, Princeton, and Yale
     combined.
       HBCUs represent nine of the top 10 colleges graduating
     African American students who go on to earn PhDs.
     Approximately 40 percent of African Americans with PhDs
     earned their bachelors degrees from HBCUs.
       In 2004, five of the top 25 producers of African American
     medical school applicants were UNCF member institutions.
       85 percent of African American dentists and physicians
     earned degrees at HBCUs.
       Spelman and Bennett Colleges, the nation's only
     historically black women's colleges, account for more female
     African American doctorate-degree holders than the ``Seven
     Sisters'' institutions combined.
       Numerous studies have documented increased developmental
     gains and increased satisfaction among African American
     students who attend HBCUs compared to their counterparts who
     attend historically white institutions.
       HCBU graduates are more likely than graduates of other
     colleges to engage in social, political and philanthropic
     activities.
                                  ____


  HBCUs and UNCF Continue To Rise To Meet These Challenges, Although
  Their Federal Funding Is Disproportionately Low, Relative to Other
                    Institutions of Higher Education

       In October 2007, the National Science Foundation released
     data demonstrating a persistent disparity in the level of
     federal research and development (R&D) and science and
     engineering (S&E) funding awarded to HBCUs, as compared to
     majority institutions of higher education:
       In FY05, under federal S&E categories cutting across six
     federal agencies, HBCUs received collectively $479 million.
       This, compared to $28.3 billion received by all other
     institutions of higher education, represents about 1.7
     percent of total awards.
       In R&D, HBCUs received $294.2 million out of $25 billion
     awarded to all institutions of higher education, just over 1
     percent of the total.
       Of the $3.1 billion awarded by NSF for university R&D
     efforts, only $10.8 million went to HBCUs. This total
     represents less than 0.5 percent of overall federal funding.

  Mr. PASCRELL. Mr. Chair, as a member of the Ways and Means Committee,
I support the inclusion of the comparative effectiveness provision in
the American Recovery and Reinvestment Act. Agencies within the
Department of Health and Human Services, such as the Agency for Health
Care Research and Quality, are already undertaking comparative
effectiveness research under a 2003 provision. The Department has
worked diligently to conduct research that meets the priorities and
requests of the Medicare, Medicaid and SCHIP programs, but its
resources are too limited to conduct the types of comparative clinical
effectiveness studies Americans need to improve the quality of health
care they receive. This provision would expand on the 2003 directive to
move these efforts forward in a way that generates necessary
information for health care providers to ensure patients receive the
best care possible.
  This provision could help the United States begin to address
significant health problems, such as the type-2 diabetes epidemic. In
New Jersey, over 400,000 people have been diagnosed with diabetes. Even
more alarming, an additional 178,000 residents have the disease but are
unaware of it. It is a sad truth that, in New Jersey, diabetes is no
longer a rare condition and indeed has a significant and growing impact
on the health of my constituents.
  Of course, this epidemic is not confined to New Jersey alone. In the
United States, there are over 20 million individuals with type-2
diabetes, approximately 6 million of which are over age 65. Between 80
to 90 percent of patients diagnosed with type-2 diabetes are also
overweight. This provision would ensure that the Department of Health
and Human Services will now have the resources to conduct research
comparing treatments that emphasize weight loss and glycemic control to
those that emphasize glycemic control alone. Studies like this would
generate the information necessary to move the diabetes care paradigm
from subjective recommendations to evidence-based medicine that would
improve the care of all patients with type-2 diabetes. This is just one
example of the promise that comparative effectiveness research holds.
Additional studies would help identify the most effective treatments
for other serious health conditions.
  Because of the promise of comparative effectiveness research and the
opportunity it holds for improving the health of all Americans, Mr.
Chair, I support the provision and the underlying bill.
  Mr. CONYERS. Mr. Chair, today I rise in strong support of H.R. 1, the
American Recovery and Reinvestment Act of 2009. This stimulus package
injects targeted, temporary, and responsible investment in our economy
and, with a little luck and hard work, will pull our Nation back from
the brink of fiscal collapse.
  The jobs, training, and investment that will be created with this
stimulus will provide true relief to the weary American worker. As much
as the other side would like to convince us, building green schools
creates jobs; fixing crumbling aqueducts and sewer systems creates
jobs; installing energy efficient insulation in public buildings
creates jobs; even resodding the National Mall creates jobs. Even
better, our Nation will reap the benefits of this investment for years
to come; creating many additional jobs in the private sector as we
repave roadways and transform dilapidated communities into thriving
commerce-rich economic zones.
  Thank goodness this Congress and this President have thrown aside the
voodoo economic policies of the past 8 years. By voting for this Act,
we right American jobs policy by returning to a common-sense principle:
promoting work that produces American products and strengthens American
communities. Instead of simply cutting taxes for big corporations and
promoting policies that shift capital from one bank account to another,
this Act will leave behind real tangible benefits for the next
generation--a true legacy of achievement.
  As we debate this issue here today, Michigan's unemployment rate has
risen above 10 percent, local manufacturers are slashing tens of
thousands of jobs, and many are signing up for Medicaid and COBRA
insurance at unprecedented levels. The jobs created by this stimulus
are long-term jobs that provide solid wages to working-class Americans;
it is only these types of jobs that will pull Michigan out of its
economic malaise.
  This stimulus package is a historic solution to a historic problem;
it will likely be the biggest piece of legislation ever passed by this
body. Faced with such dire economic problems, we have to aim big. Two
notable economists, Paul Krugman and Jeffery Sachs have both voiced
their support for a large scale stimulus to avoid a ``L shaped''
recovery that would mirror Japan's stagnant growth and labor market of
the 1990s. In these gloomy economic times, hesitation and caution are
not a viable option. Now is the time to act decisively.
  Mr. Chair, H.R. 1 promotes sorely needed investment in
transportation. For example, it provides $30 billion for federal aid to
highway and bridge construction, $3 billion to airport improvement
projects, and $1.1 billion for Amtrak and intercity passenger rail
grants. These projects will offer additional much needed personal and
commercial movement options for my constituents.
  Additionally, as an ardent supporter of universal health care, I am
delighted that the American Recovery and Reinvestment Act will fund
many important programs that will reduce health costs. H.R. 1 will
provide $1 billion to renovate community clinics and $600 million to
address doctor shortages in urban areas by assisting medical school
students with their expenses if they agree to practice in underserved
communities as a part of the National Health Service Corps. To further
lower health care costs, H.R. 1 will create a Prevention and Wellness
Fund, where $3 billion will be allocated to fight preventable chronic
diseases. This will include grants to state and local public health
departments, immunization programs, and disease prevention initiatives.
Moreover, the bill will invest $20 billion to computerize medical
records to cut costs, extend COBRA healthcare for the unemployed with a
$30.3 billion investment, and will give $8.6 billion to expand Medicaid
coverage for the recently unemployed.

  H.R. 1 will also help provide quality education to all Americans. As
a direct response to the recent cut backs in educational funding and
staggering increases in college tuition, the bill will provide $79
billion to states and $41 billion to local school districts through
Title I, IDEA, the School Modernization and Repair Program, and the
education technology program. Furthermore, $15 billion will be given to
states as bonus grants if they can meet key performance measures.
Lastly, H.R. 1 increases individual Pell Grant allocations by $500.
  H.R. 1 will also help hard working Americans stay in their homes. The
bill will create a $5 billion Public Housing Capital Fund that will
repair and modernize public housing. $1.5 billion will be given to the
rehabilitate low-income housing using green technologies in the HOME
Investment Partnerships. In addition, $4.2 billion will help
communities purchase and rehabilitate foreclosed, vacant properties in
order to create more affordable housing and reduce neighborhood blight.

[[Page H642]]

  I could go on and on about the many worthy initiatives this bill
furthers. In particular, I am heartened that it makes wise investments
in preserving our public places, ending hunger, and promoting the
deployment of broadband Internet access. Needless to say, it is a
comprehensive bill and a vote for it is a vote to revitalize every
sector of our economy.
  For too long many have believed that the free market can fix
America's problem. We have been told that the only thing created by
public investment is more bureaucracy and an unwieldy national debt.
  Well, I am here to tell you that prudent targeted government
investment in the private and public sectors creates something else:
jobs. The minority had their chance to promote their version of the
economy when they controlled the Congress and the White House. And what
have they left us: unchecked spending that resulted in millions of jobs
lost, a lower standard of living, and the greatest levels of inequality
we have seen since the period of unchecked deregulation that
immediately preceded the Great Depression.
  The investments championed by President Franklin Delano Roosevelt led
us out of a period of despair and uncertainty and ushered in the
greatest period of sustained growth our Nation has ever experienced. We
did it once; we can do it again. H.R. 1 is the blueprint for such a
recovery and I urge my colleagues to support this legislation.

                              {time}  1400

  The CHAIR. All time for general debate has expired.
  Pursuant to House Resolution 92, the amendment printed in part A of
House Report 111-9 is adopted. The bill, as amended, shall be
considered as an original bill for the purpose of further amendment
under the 5-minute rule and shall be considered read.
  The text of the bill, as amended, is as follows:

                                 H.R. 1

       Be it enacted by the Senate and House of Representatives of
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

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

     SEC. 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

     SEC. 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.

     SEC. 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.

     SEC. 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.

                  DIVISION A--APPROPRIATION PROVISIONS

     SEC. 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.

                      TITLE I--GENERAL PROVISIONS

                        Subtitle A--Use of Funds

     SEC. 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).

     SEC. 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.

     SEC. 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.

     SEC. 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''.

[[Page H643]]

       (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''.

     SEC. 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.

     SEC. 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.

     SEC. 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.

     SEC. 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.

     SEC. 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.

     SEC. 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.

     SEC. 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.

     SEC. 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.

     SEC. 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.

     SEC. 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).

     SEC. 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.

          Subtitle B--Accountability in Recovery Act Spending

            PART 1--TRANSPARENCY AND OVERSIGHT REQUIREMENTS

     SEC. 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.

[[Page H644]]

       (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.

     SEC. 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.

     SEC. 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.

     SEC. 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.

     SEC. 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.

             PART 2--ACCOUNTABILITY AND TRANSPARENCY BOARD

     SEC. 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.

     SEC. 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.

     SEC. 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.

     SEC. 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.

     SEC. 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.

     SEC. 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

[[Page H645]]

     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.

     SEC. 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.

     SEC. 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.

     SEC. 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.

     SEC. 1230. FUNDING.

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

     SEC. 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.

     PART 3--ADDITIONAL ACCOUNTABILITY AND TRANSPARENCY PROVISIONS

     SEC. 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.

     SEC. 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.

     SEC. 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.--

[[Page H646]]

       (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).

        TITLE 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

[[Page H647]]

     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

     SEC. 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.

     SEC. 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).

               TITLE III--COMMERCE, JUSTICE, AND SCIENCE

                          Subtitle 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.

[[Page H648]]

                  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.

                          Subtitle 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

     SEC. 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.

                          Subtitle 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.

                           TITLE 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

                       TITLE 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

[[Page H649]]

     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.

[[Page H650]]

                     GENERAL PROVISIONS, THIS TITLE

     SEC. 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:

                    ``TITLE III--BORROWING AUTHORITY

     ``SEC. 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.''.

     SEC. 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.

     SEC. 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.

          TITLE VI--FINANCIAL SERVICES AND GENERAL GOVERNMENT

                      Subtitle 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.

[[Page H651]]

                       Subtitle 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

     SEC. 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.

     SEC. 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.

[[Page H652]]

       (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.

     SEC. 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.

     SEC. 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

[[Page H653]]

     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.

     SEC. 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 \1/2\ 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''.

     SEC. 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.''.

     SEC. 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.

                      TITLE 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

     SEC. 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''.

     SEC. 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

[[Page H654]]

     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.

     SEC. 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.

     SEC. 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.

     SEC. 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.

                  TITLE 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

[[Page H655]]

     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

[[Page H656]]

     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.

       TITLE IX--LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION

                           Subtitle 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; and
       (6) $750,000,000 for a program of competitive grants for
     worker training and placement in high growth and emerging
     industry sectors: 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

     SEC. 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;''.

                 Subtitle 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; and
       (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,

[[Page H657]]

     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

[[Page H658]]

     $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; and
       (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; and
       (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

[[Page H659]]

     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

     SEC. 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.

     SEC. 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 Childrens
     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.

                         Subtitle 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

[[Page H660]]

     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

     SEC. 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

[[Page H661]]

       (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;

[[Page H662]]

       (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.

     SEC. 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.

[[Page H663]]

       (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).

     SEC. 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''.

     SEC. 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.

     SEC. 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)''.

                      Subtitle 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

[[Page H664]]

     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; and
       (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.

          TITLE 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

[[Page H665]]

     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.

                     TITLE 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.

      TITLE 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 120
     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: Provided further, 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 120 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 180 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
     150 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 180 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

[[Page H666]]

     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, of
     which $5,400,000,000 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 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 180 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 180 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: 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 120 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 120 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

[[Page H667]]

     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:
     Provided further, 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.

[[Page H668]]

            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

     SEC. 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 the date of enactment of this Act
     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) 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.
       (c) 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.

     SEC. 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.

     SEC. 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.

     SEC. 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)).

              TITLE 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.

[[Page H669]]

                     GENERAL PROVISIONS, THIS TITLE

     SEC. 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).

     SEC. 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.

     SEC. 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.

     SEC. 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.

     SEC. 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.

     SEC. 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.

     SEC. 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));

[[Page H670]]

       (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.

     SEC. 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.

     SEC. 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.

     SEC. 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.

     SEC. 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.

     SEC. 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.

                      DIVISION B--OTHER PROVISIONS

                        TITLE I--TAX PROVISIONS

     SEC. 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.

                      Subtitle A--Making Work Pay

     SEC. 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:

     ``SEC. 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

[[Page H671]]

       ``(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.

      Subtitle B--Additional Tax Relief for Families With Children

     SEC. 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.

     SEC. 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.

              Subtitle C--American Opportunity Tax Credit

     SEC. 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

[[Page H672]]

     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.

                     Subtitle D--Housing Incentives

     SEC. 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.

     SEC. 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).''.

                Subtitle E--Tax Incentives for Business

                PART 1--TEMPORARY INVESTMENT INCENTIVES

     SEC. 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.

     SEC. 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.

              PART 2--5-YEAR CARRYBACK OF OPERATING LOSSES

     SEC. 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.

[[Page H673]]

       ``(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.

     SEC. 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).

                    PART 3--INCENTIVES FOR NEW JOBS

     SEC. 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.

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.

       (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.

       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.

       (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.

     SEC. 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

[[Page H674]]

     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.

     SEC. 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.

                  PART 2--TAX CREDIT BONDS FOR SCHOOLS

     SEC. 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:

     ``SEC. 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.

     SEC. 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''.

[[Page H675]]

       (b) Effective Date.--The amendment made by this section
     shall apply to obligations issued after December 31, 2008.

           PART 3--TAXABLE BOND OPTION FOR GOVERNMENTAL BONDS

     SEC. 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:

        ``Subpart J--Taxable Bond Option for Governmental Bonds

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

     ``SEC. 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:

     ``SEC. 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.

                      PART 4--RECOVERY ZONE BONDS

     SEC. 1531. RECOVERY ZONE BONDS.

       (a) In General.--Subchapter Y of chapter 1 is amended by
     adding at the end the following new part:

                    ``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.

     ``SEC. 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.

     ``SEC. 1400U-2. RECOVERY ZONE ECONOMIC DEVELOPMENT BONDS.

       ``(a) In General.--In the case of a recovery zone economic
     development bond--

[[Page H676]]

       ``(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.

     ``SEC. 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.

     SEC. 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.

      PART 5--REPEAL OF WITHHOLDING TAX ON GOVERNMENT CONTRACTORS

     SEC. 1541. REPEAL OF WITHHOLDING TAX ON GOVERNMENT
                   CONTRACTORS.

       Section 3402 is amended by striking subsection (t).

                     Subtitle G--Energy Incentives

                  PART 1--RENEWABLE ENERGY INCENTIVES

     SEC. 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.

     SEC. 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.

     SEC. 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).

[[Page H677]]

       (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.

     SEC. 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).''.

 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.

       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).''.

     SEC. 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.

                 PART 3--ENERGY CONSERVATION INCENTIVES

     SEC. 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.

     SEC. 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.

     SEC. 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.

                   PART 4--ENERGY RESEARCH INCENTIVES

     SEC. 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).''.

[[Page H678]]

       (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.

                      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.

       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).

       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.

       (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.

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

     SEC. 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.

[[Page H679]]

       (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.

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

     SEC. 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.

  TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES

     SEC. 2000. SHORT TITLE.

       This title may be cited as the ``Assistance for Unemployed
     Workers and Struggling Families Act''.

                   Subtitle A--Unemployment Insurance

     SEC. 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.''.

     SEC. 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

[[Page H680]]

     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.

     SEC. 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:

     ``Special Transfers in Fiscal Years 2009, 2010, and 2011 for
                             Modernization

       ``(f)(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.

[[Page H681]]

     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).

       ``Special Transfer in Fiscal Year 2009 for Administration

       ``(g)(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).

           Subtitle B--Assistance for Vulnerable Individuals

     SEC. 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.

     SEC. 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

[[Page H682]]

     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.
       (2) Amount of payment.--Subject to subsection (b)(1) of
     this section, the amount of the payment shall be--
       (A) in the case of an individual eligible for a payment
     under this section who does not have a spouse eligible for
     such a payment, an amount equal to the average of the cash
     benefits payable in the aggregate under section 1611 or
     1619(a) of the Social Security Act to eligible individuals
     who do not have an eligible spouse, for the most recent month
     for which data on payment of the benefits are available, as
     determined by the Commissioner of Social Security; or
       (B) in the case of an individual eligible for a payment
     under this section who has a spouse eligible for such a
     payment, an amount equal to the average of the cash benefits
     payable in the aggregate under section 1611 or 1619(a) of the
     Social Security Act to eligible individuals who have an
     eligible spouse, for the most recent month for which data on
     payment of the benefits are available, as so determined.
       (b) Administrative Provisions.--
       (1) Authority to withhold payment to recover prior
     overpayment of ssi benefits.--The Commissioner of Social
     Security may withhold part or all of a payment otherwise
     required to be made under subsection (a) of this section to
     an individual, in order to recover a prior overpayment of
     benefits to the individual under the supplemental security
     income program under title XVI of the Social Security Act,
     subject to the limitations of section 1631(b) of such Act.
       (2) Payment to be disregarded in determining underpayments
     under the ssi program.--A payment under subsection (a) shall
     be disregarded in determining whether there has been an
     underpayment of benefits under the supplemental security
     income program under title XVI of the Social Security Act.
       (3) Nonassignment.--The provisions of section 1631(d) of
     the Social Security Act shall apply with respect to payments
     under this section to the same extent as they apply in the
     case of title XVI of such Act.
       (c) Payments To Be Disregarded for Purposes of All Federal
     and Federally Assisted Programs.--A payment under subsection
     (a) shall not be regarded as income to the recipient, and
     shall not be regarded as a resource of the recipient for the
     month of receipt and the following 6 months, for purposes of
     determining the eligibility of any 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) Appropriation.--Out of any sums in the Treasury of the
     United States not otherwise appropriated, there are
     appropriated such sums as may be necessary to carry out this
     section.

     SEC. 2103. TEMPORARY RESUMPTION OF PRIOR CHILD SUPPORT LAW.

       During the period that begins with October 1, 2008, and
     ends with September 30, 2010, section 455(a)(1) of the Social
     Security Act shall be applied and administered as if the
     phrase ``from amounts paid to the State under section 458
     or'' did not appear in such section.

       TITLE III--HEALTH INSURANCE ASSISTANCE FOR THE UNEMPLOYED

     SEC. 3001. SHORT TITLE AND TABLE OF CONTENTS OF TITLE.

       (a) Short Title of Title.--This title may be cited as the
     ``Health Insurance Assistance for the Unemployed Act of
     2009''.
       (b) Table of Contents of Title.--The table of contents of
     this title is as follows:

Sec. 3001. Short title and table of contents of title.
Sec. 3002. Premium assistance for COBRA benefits and extension of COBRA
              benefits for older or long-term employees.
Sec. 3003. Temporary optional Medicaid coverage for the unemployed.

     SEC. 3002. PREMIUM ASSISTANCE FOR COBRA BENEFITS AND
                   EXTENSION OF COBRA BENEFITS FOR OLDER OR LONG-
                   TERM EMPLOYEES.

       (a) Premium Assistance for COBRA Continuation Coverage for
     Individuals and Their Families.--
       (1) Provision of premium assistance.--
       (A) Reduction of premiums payable.--In the case of any
     premium for a period of coverage beginning on or after the
     date of the enactment of this Act for COBRA continuation
     coverage with respect to any assistance eligible individual,
     such individual shall be treated for purposes of any COBRA
     continuation provision as having paid the amount of such
     premium if such individual pays 35 percent of the amount of
     such premium (as determined without regard to this
     subsection).
       (B) Premium reimbursement.--For provisions providing the
     balance of such premium, see section 6431 of the Internal
     Revenue Code of 1986, as added by paragraph (12).
       (2) Limitation of period of premium assistance.--
       (A) In general.--Paragraph (1)(A) shall not apply with
     respect to any assistance eligible individual for months of
     coverage beginning on or after the earlier of--
       (i) the first date that such individual is eligible for
     coverage under any other group health plan (other than
     coverage consisting of only dental, vision, counseling, or
     referral services (or a combination thereof), coverage under
     a health reimbursement arrangement or a health flexible
     spending arrangement, or coverage of treatment that is
     furnished in an on-site medical facility maintained by the
     employer and that consists primarily of first-aid services,
     prevention and wellness care, or similar care (or a
     combination thereof)) or is eligible for benefits under title
     XVIII of the Social Security Act, or
       (ii) the earliest of--

       (I) the date which is 12 months after the first day of the
     first month that paragraph (1)(A) applies with respect to
     such individual,
       (II) the date following the expiration of the maximum
     period of continuation coverage required under the applicable
     COBRA continuation coverage provision, or
       (III) the date following the expiration of the period of
     continuation coverage allowed under paragraph (4)(B)(ii).

       (B) Timing of eligibility for additional coverage.--For
     purposes of subparagraph (A)(i), an individual shall not be
     treated as eligible for coverage under a group health plan
     before the first date on which such individual could be
     covered under such plan.
       (C) Notification requirement.--An assistance eligible
     individual shall notify in writing the group health plan with
     respect to which paragraph (1)(A) applies if such paragraph
     ceases to apply by reason of subparagraph (A)(i). Such notice
     shall be provided to the group health plan in such time and
     manner as may be specified by the Secretary of Labor.
       (3) Assistance eligible individual.--For purposes of this
     section, the term ``assistance eligible individual'' means
     any qualified beneficiary if--
       (A) at any time during the period that begins with
     September 1, 2008, and ends with December 31, 2009, such
     qualified beneficiary is eligible for COBRA continuation
     coverage,
       (B) such qualified beneficiary elects such coverage, and
       (C) the qualifying event with respect to the COBRA
     continuation coverage consists of the involuntary termination
     of the covered employee's employment and occurred during such
     period.
       (4) Extension of election period and effect on coverage.--
       (A) In general.--Notwithstanding section 605(a) of the
     Employee Retirement Income Security Act of 1974, section
     4980B(f)(5)(A) of the Internal Revenue Code of 1986, section
     2205(a) of the Public Health Service Act, and section
     8905a(c)(2) of title 5, United States Code, in the case of an
     individual who is a qualified beneficiary described in
     paragraph (3)(A) as of the date of the enactment of this Act
     and has not made the election referred to in paragraph (3)(B)
     as of such date, such individual may elect the COBRA
     continuation coverage under the COBRA continuation coverage
     provisions containing such sections during the 60-day period
     commencing with the date on which the notification required
     under paragraph (7)(C) is provided to such individual.
       (B) Commencement of coverage; no reach-back.--Any COBRA
     continuation coverage elected by a qualified beneficiary
     during an extended election period under subparagraph (A)--
       (i) shall commence on the date of the enactment of this
     Act, and
       (ii) shall not extend beyond the period of COBRA
     continuation coverage that would have been required under the
     applicable COBRA continuation coverage provision if the
     coverage had been elected as required under such provision.
       (C) Preexisting conditions.--With respect to a qualified
     beneficiary who elects COBRA continuation coverage pursuant
     to subparagraph (A), the period--
       (i) beginning on the date of the qualifying event, and
       (ii) ending with the day before the date of the enactment
     of this Act,

     shall be disregarded for purposes of determining the 63-day
     periods referred to in section 701)(2) of the Employee
     Retirement Income Security Act of 1974, section 9801(c)(2) of
     the Internal Revenue Code of 1986, and section 2701(c)(2) of
     the Public Health Service Act.
       (5) Expedited review of denials of premium assistance.--In
     any case in which an individual requests treatment as an
     assistance eligible individual and is denied such treatment
     by the group health plan by reason of such individual's
     ineligibility for COBRA continuation coverage, the Secretary
     of Labor (or the Secretary of Health and Human services in
     connection with COBRA continuation coverage which is provided
     other than pursuant to part 6 of subtitle B of title I of the
     Employee Retirement Income Security Act of 1974), in
     consultation with the Secretary of the Treasury, shall
     provide for expedited review of such denial. An individual
     shall be entitled to such review upon application to such
     Secretary in such form and manner as shall be provided by
     such Secretary. Such Secretary shall make a determination
     regarding such individual's eligibility within 10 business
     days after receipt of such individual's application for
     review under this paragraph.
       (6) Disregard of subsidies for purposes of federal and
     state programs.--Notwithstanding any other provision of law,
     any premium reduction with respect to an assistance eligible
     individual under this subsection shall not be considered
     income or resources in determining eligibility for, or the
     amount of assistance or benefits provided under, any other
     public benefit provided under Federal law or the law of any
     State or political subdivision thereof.

[[Page H683]]

       (7) Notices to individuals.--
       (A) General notice.--
       (i) In general.--In the case of notices provided under
     section 606(4) of the Employee Retirement Income Security Act
     of 1974 (29 U.S.C. 1166(4)), section 4980B(f)(6)(D) of the
     Internal Revenue Code of 1986, section 2206(4) of the Public
     Health Service Act (42 U.S.C. 300bb-6(4)), or section
     8905a(f)(2)(A) of title 5, United States Code, with respect
     to individuals who, during the period described in paragraph
     (3)(A), become entitled to elect COBRA continuation coverage,
     such notices shall include an additional notification to the
     recipient of the availability of premium reduction with
     respect to such coverage under this subsection.
       (ii) Alternative notice.--In the case of COBRA continuation
     coverage to which the notice provision under such sections
     does not apply, the Secretary of Labor, in consultation with
     the Secretary of the Treasury and the Secretary of Health and
     Human Services, shall, in coordination with administrators of
     the group health plans (or other entities) that provide or
     administer the COBRA continuation coverage involved, provide
     rules requiring the provision of such notice.
       (iii) Form.--The requirement of the additional notification
     under this subparagraph may be met by amendment of existing
     notice forms or by inclusion of a separate document with the
     notice otherwise required.
       (B) Specific requirements.--Each additional notification
     under subparagraph (A) shall include--
       (i) the forms necessary for establishing eligibility for
     premium reduction under this subsection,
       (ii) the name, address, and telephone number necessary to
     contact the plan administrator and any other person
     maintaining relevant information in connection with such
     premium reduction,
       (iii) a description of the extended election period
     provided for in paragraph (4)(A),
       (iv) a description of the obligation of the qualified
     beneficiary under paragraph (2)(C) to notify the plan
     providing continuation coverage of eligibility for subsequent
     coverage under another group health plan or eligibility for
     benefits under title XVIII of the Social Security Act and the
     penalty provided for failure to so notify the plan, and
       (v) a description, displayed in a prominent manner, of the
     qualified beneficiary's right to a reduced premium and any
     conditions on entitlement to the reduced premium.
       (C) Notice relating to retroactive coverage.--In the case
     of an individual described in paragraph (3)(A) who has
     elected COBRA continuation coverage as of the date of
     enactment of this Act or an individual described in paragraph
     (4)(A), the administrator of the group health plan (or other
     entity) involved shall provide (within 60 days after the date
     of enactment of this Act) for the additional notification
     required to be provided under subparagraph (A).
       (D) Model notices.--Not later than 30 days after the date
     of enactment of this Act, the Secretary of the Labor, in
     consultation with the Secretary of the Treasury and the
     Secretary of Health and Human Services, shall prescribe
     models for the additional notification required under this
     paragraph.
       (8) Safeguards.--The Secretary of the Treasury shall
     provide such rules, procedures, regulations, and other
     guidance as may be necessary and appropriate to prevent fraud
     and abuse under this subsection.
       (9) Outreach.--The Secretary of Labor, in consultation with
     the Secretary of the Treasury and the Secretary of Health and
     Human Services, shall provide outreach consisting of public
     education and enrollment assistance relating to premium
     reduction provided under this subsection. Such outreach shall
     target employers, group health plan administrators, public
     assistance programs, States, insurers, and other entities as
     determined appropriate by such Secretaries. Such outreach
     shall include an initial focus on those individuals electing
     continuation coverage who are referred to in paragraph
     (7)(C). Information on such premium reduction, including
     enrollment, shall also be made available on website of the
     Departments of Labor, Treasury, and Health and Human
     Services.
       (10) Definitions.--For purposes of this subsection--
       (A) Administrator.--The term ``administrator'' has the
     meaning given such term in section 3(16) of the Employee
     Retirement Income Security Act of 1974.
       (B) COBRA continuation coverage.--The term ``COBRA
     continuation coverage'' means continuation coverage provided
     pursuant to part 6 of subtitle B of title I of the Employee
     Retirement Income Security Act of 1974 (other than under
     section 609), title XXII of the Public Health Service Act,
     section 4980B of the Internal Revenue Code of 1986 (other
     than subsection (f)(1) of such section insofar as it relates
     to pediatric vaccines), or section 8905a of title 5, United
     States Code, or under a State program that provides
     continuation coverage comparable to such continuation
     coverage. Such term does not include coverage under a health
     flexible spending arrangement.
       (C) COBRA continuation provision.--The term ``COBRA
     continuation provision'' means the provisions of law
     described in subparagraph (B).
       (D) Covered employee.--The term ``covered employee'' has
     the meaning given such term in section 607(2) of the Employee
     Retirement Income Security Act of 1974.
       (E) Qualified beneficiary.--The term ``qualified
     beneficiary'' has the meaning given such term in section
     607(3) of the Employee Retirement Income Security Act of
     1974.
       (F) Group health plan.--The term ``group health plan'' has
     the meaning given such term in section 607(1) of the Employee
     Retirement Income Security Act of 1974.
       (G) State.--The term ``State'' includes the District of
     Columbia, the Commonwealth of Puerto Rico, the Virgin
     Islands, Guam, American Samoa, and the Commonwealth of the
     Northern Mariana Islands.
       (11) Reports.--
       (A) Interim report.--The Secretary of the Treasury shall
     submit an interim report to the Committee on Education and
     Labor, the Committee on Ways and Means, and the Committee on
     Energy and Commerce of the House of Representatives and the
     Committee on Health, Education, Labor, and Pensions and the
     Committee on Finance of the Senate regarding the premium
     reduction provided under this subsection that includes--
       (i) the number of individuals provided such assistance as
     of the date of the report; and
       (ii) the total amount of expenditures incurred (with
     administrative expenditures noted separately) in connection
     with such assistance as of the date of the report.
       (B) Final report.--As soon as practicable after the last
     period of COBRA continuation coverage for which premium
     reduction is provided under this section, the Secretary of
     the Treasury shall submit a final report to each Committee
     referred to in subparagraph (A) that includes--
       (i) the number of individuals provided premium reduction
     under this section;
       (ii) the average dollar amount (monthly and annually) of
     premium reductions provided to such individuals; and
       (iii) the total amount of expenditures incurred (with
     administrative expenditures noted separately) in connection
     with premium reduction under this section.
       (12) COBRA premium assistance.--
       (A) In general.--Subchapter B of chapter 65 of the Internal
     Revenue Code of 1986 is amended by adding at the end the
     following new section:

     ``SEC. 6431. COBRA PREMIUM ASSISTANCE.

       ``(a) In General.--The entity to whom premiums are payable
     under COBRA continuation coverage shall be reimbursed for the
     amount of premiums not paid by plan beneficiaries by reason
     of section 3002(a) of the Health Insurance Assistance for the
     Unemployed Act of 2009. Such amount shall be treated as a
     credit against the requirement of such entity to make
     deposits of payroll taxes and the liability of such entity
     for payroll taxes. To the extent that such amount exceeds the
     amount of such taxes, the Secretary shall pay to such entity
     the amount of such excess. No payment may be made under this
     subsection to an entity with respect to any assistance
     eligible individual until after such entity has received the
     reduced premium from such individual required under section
     3002(a)(1)(A) of such Act.
       ``(b) Payroll Taxes.--For purposes of this section, the
     term `payroll taxes' means--
       ``(1) amounts required to be deducted and withheld for the
     payroll period under section 3401 (relating to wage
     withholding),
       ``(2) amounts required to be deducted for the payroll
     period under section 3102 (relating to FICA employee taxes),
     and
       ``(3) amounts of the taxes imposed for the payroll period
     under section 3111 (relating to FICA employer taxes).
       ``(c) Treatment of Credit.--Except as otherwise provided by
     the Secretary, the credit described in subsection (a) shall
     be applied as though the employer had paid to the Secretary,
     on the day that the qualified beneficiary's premium payment
     is received, an amount equal to such credit.
       ``(d) Treatment of Payment.--For purposes of section
     1324(b)(2) of title 31, United States Code, any payment under
     this section shall be treated in the same manner as a refund
     of the credit under section 35.
       ``(e) Reporting.--
       ``(1) In general.--Each entity entitled to reimbursement
     under subsection (a) for any period shall submit such reports
     as the Secretary may require, including--
       ``(A) an attestation of involuntary termination of
     employment for each covered employee on the basis of whose
     termination entitlement to reimbursement is claimed under
     subsection (a), and
       ``(B) a report of the amount of payroll taxes offset under
     subsection (a) for the reporting period and the estimated
     offsets of such taxes for the subsequent reporting period in
     connection with reimbursements under subsection (a).
       ``(2) Timing of reports relating to amount of payroll
     taxes.--Reports required under paragraph (1)(B) shall be
     submitted at the same time as deposits of taxes imposed by
     chapters 21, 22, and 24 or at such time as is specified by
     the Secretary.
       ``(f) Regulations.--The Secretary may issue such
     regulations or other guidance as may be necessary or
     appropriate to carry out this section, including the
     requirement to report information or the establishment of
     other methods for verifying the correct amounts of payments
     and credits under this section. The Secretary shall issue
     such regulations or guidance with respect to the application
     of this section to group health plans that are multiemployer
     plans (as defined in section 3(37) of the Employee Retirement
     Income Security Act of 1974).''.
       (B) Social security trust funds held harmless.--In
     determining any amount

[[Page H684]]

     transferred or appropriated to any fund under the Social
     Security Act, section 6431 of the Internal Revenue Code of
     1986 shall not be taken into account.
       (C) Clerical amendment.--The table of sections for
     subchapter B of chapter 65 of the Internal Revenue Code of
     1986 is amended by adding at the end the following new item:

``Sec. 6431. COBRA premium assistance.''.

       (D) Effective date.--The amendments made by this paragraph
     shall apply to premiums to which subsection (a)(1)(A)
     applies.
       (13) Penalty for failure to notify health plan of cessation
     of eligibility for premium assistance.--
       (A) In general.--Part I of subchapter B of chapter 68 of
     the Internal Revenue Code of 1986 is amended by adding at the
     end the following new section:

     ``SEC. 6720C. PENALTY FOR FAILURE TO NOTIFY HEALTH PLAN OF
                   CESSATION OF ELIGIBILITY FOR COBRA PREMIUM
                   ASSISTANCE.

       ``(a) In General.--Any person required to notify a group
     health plan under section 3002(a)(2)(C)) of the Health
     Insurance Assistance for the Unemployed Act of 2009 who fails
     to make such a notification at such time and in such manner
     as the Secretary of Labor may require shall pay a penalty of
     110 percent of the premium reduction provided under such
     section after termination of eligibility under such
     subsection.
       ``(b) Reasonable Cause Exception.--No penalty shall be
     imposed under subsection (a) with respect to any failure if
     it is shown that such failure is due to reasonable cause and
     not to willful neglect.''.
       (B) Clerical amendment.--The table of sections of part I of
     subchapter B of chapter 68 of such Code is amended by adding
     at the end the following new item:

``Sec. 6720C. Penalty for failure to notify health plan of cessation of
              eligibility for COBRA premium assistance.''.

       (C) Effective date.--The amendments made by this paragraph
     shall apply to failures occurring after the date of the
     enactment of this Act.
       (14) Coordination with hctc.--
       (A) In general.--Subsection (g) of section 35 of the
     Internal Revenue Code of 1986 is amended by redesignating
     paragraph (9) as paragraph (10) and inserting after paragraph
     (8) the following new paragraph:
       ``(9) COBRA premium assistance.--In the case of an
     assistance eligible individual who receives premium reduction
     for COBRA continuation coverage under section 3002(a) of the
     Health Insurance Assistance for the Unemployed Act of 2009
     for any month during the taxable year, such individual shall
     not be treated as an eligible individual, a certified
     individual, or a qualifying family member for purposes of
     this section or section 7527 with respect to such month.''.
       (B) Effective date.--The amendment made by subparagraph (A)
     shall apply to taxable years ending after the date of the
     enactment of this Act.
       (15) Exclusion of cobra premium assistance from gross
     income.--
       (A) In general.--Part III of subchapter B of chapter 1 of
     the Internal Revenue Code of 1986 is amended by inserting
     after section 139B the following new section:

     ``SEC. 139C. COBRA PREMIUM ASSISTANCE.

       ``In the case of an assistance eligible individual (as
     defined in section 3002 of the Health Insurance Assistance
     for the Unemployed Act of 2009), gross income does not
     include any premium reduction provided under subsection (a)
     of such section.''.
       (B) Clerical amendment.--The table of sections for part III
     of subchapter B of chapter 1 of such Code is amended by
     inserting after the item relating to section 139B the
     following new item:

``Sec. 139C. COBRA premium assistance.''.

       (C) Effective date.--The amendments made by this paragraph
     shall apply to taxable years ending after the date of the
     enactment of this Act.
       (b) Extension of COBRA Benefits for Older or Long-Term
     Employees.--
       (1) ERISA amendment.--Section 602(2)(A) of the Employee
     Retirement Income Security Act of 1974 is amended by adding
     at the end the following new clauses:
       ``(x) Special rule for older or long-term employees
     generally.--In the case of a qualifying event described in
     section 603(2) with respect to a covered employee who (as of
     such qualifying event) has attained age 55 or has completed
     10 or more years of service with the entity that is the
     employer at the time of the qualifying event, clauses (i) and
     (ii) shall not apply. For purposes of this clause, in the
     case of a group health plan that is a multiemployer plan,
     service by the covered employee performed for 2 or more
     employers during periods for which such employers contributed
     to such plan shall be treated as service performed for the
     entity referred to in the preceding sentence.
       ``(xi) Year of service.-- For purposes of this
     subparagraph, the term `year of service' shall have the
     meaning provided in section 202(a)(3).''.
       (2) IRC amendment.--Clause (i) of section 4980B(f)(2)(B) of
     the Internal Revenue Code of 1986 is amended by adding at the
     end the following new subclauses:

       ``(X) Special rule for older or long-term employees
     generally.--In the case of a qualifying event described in
     paragraph (3)(B) with respect to a covered employee who (as
     of such qualifying event) has attained age 55 or has
     completed 10 or more years of service with the entity that is
     the employer at the time of the qualifying event, subclauses
     (I) and (II) shall not apply. For purposes of this subclause,
     in the case of a group health plan that is a multiemployer
     plan (as defined in section 3(37) of the Employee Retirement
     Income Security Act of 1974), service by the covered employee
     performed for 2 or more employers during periods for which
     such employers contributed to such plan shall be treated as
     service performed for the entity referred to in the preceding
     sentence.
       ``(XI) Year of service.-- For purposes of this clause, the
     term `year of service' shall have the meaning provided in
     section 202(a)(3) of the Employee Retirement Income Security
     Act of 1974.''.

       (3) PHSA amendment.--Section 2202(2)(A) of the Public
     Health Service Act is amended by adding at the end the
     following new clauses:
       ``(viii) Special rule for older or long-term employees
     generally.--In the case of a qualifying event described in
     section 2203(2) with respect to a covered employee who (as of
     such qualifying event) has attained age 55 or has completed
     10 or more years of service with the entity that is the
     employer at the time of the qualifying event, clauses (i) and
     (ii) shall not apply. For purposes of this clause, in the
     case of a group health plan that is a multiemployer plan (as
     defined in section 3(37) of the Employee Retirement Income
     Security Act of 1974), service by the covered employee
     performed for 2 or more employers during periods for which
     such employers contributed to such plan shall be treated as
     service performed for the entity referred to in the preceding
     sentence.
       ``(ix) Year of service.-- For purposes of this
     subparagraph, the term `year of service' shall have the
     meaning provided in section 202(a)(3) of the Employee
     Retirement Income Security Act of 1974.''.
       (4) Effective date of amendments.--The amendments made by
     this subsection shall apply to periods of coverage which
     would (without regard to the amendments made by this section)
     end on or after the date of the enactment of this Act.

     SEC. 3003. TEMPORARY OPTIONAL MEDICAID COVERAGE FOR THE
                   UNEMPLOYED.

       (a) In General.--Section 1902 of the Social Security Act
     (42 U.S.C. 1396b) is amended--
       (1) in subsection (a)(10)(A)(ii)--
       (A) by striking ``or'' at the end of subclause (XVIII);
       (B) by adding ``or'' at the end of subclause (XIX); and
       (C) by adding at the end the following new subclause

       ``(XX) who are described in subsection (dd)(1) (relating to
     certain unemployed individuals and their families);''; and

       (2) by adding at the end the following new subsection:
       ``(dd)(1) Individuals described in this paragraph are--
       ``(A) individuals who--
       ``(i) are within one or more of the categories described in
     paragraph (2), as elected under the State plan; and
       ``(ii) meet the applicable requirements of paragraph (3);
     and
       ``(B) individuals who--
       ``(i) are the spouse, or dependent child under 19 years of
     age, of an individual described in subparagraph (A); and
       ``(ii) meet the requirement of paragraph (3)(B).
       ``(2) The categories of individuals described in this
     paragraph are each of the following:
       ``(A)(i) Individuals who are receiving unemployment
     compensation benefits; and
       ``(ii) individuals who were receiving, but have exhausted,
     unemployment compensation benefits on or after July 1, 2008.
       ``(B) Individuals who are involuntarily unemployed and were
     involuntarily separated from employment on or after September
     1, 2008, and before January 1, 2011, whose family gross
     income does not exceed a percentage specified by the State
     (not to exceed 200 percent) of the income official poverty
     line (as defined by the Office of Management and Budget, and
     revised annually in accordance with section 673(2) of the
     Omnibus Budget Reconciliation Act of 1981) applicable to a
     family of the size involved, and who, but for subsection
     (a)(10)(A)(ii)(XX), are not eligible for medical assistance
     under this title or health assistance under title XXI.
       ``(C) Individuals who are involuntarily unemployed and were
     involuntarily separated from employment on or after September
     1, 2008, and before January 1, 2011, who are members of
     households participating in the supplemental nutrition
     assistance program established under the Food and Nutrition
     Act of 2008 (7 U.S.C. 2011 et seq), and who, but for
     subsection (a)(10)(A)(ii)(XX), are not eligible for medical
     assistance under this title or health assistance under title
     XXI.
       ``(3) The requirements of this paragraph with respect to an
     individual are the following:
       ``(A) In the case of individuals within a category
     described in subparagraph (A)(i) of paragraph (2), the
     individual was involuntarily separated from employment on or
     after September 1, 2008, and before January 1, 2011, or meets
     such comparable requirement as the Secretary specifies
     through rule, guidance, or otherwise in the case of an
     individual who was an independent contractor.
       ``(B) The individual is not otherwise covered under
     creditable coverage, as defined in section 2701(c) of the
     Public Health Service Act (42 U.S.C. 300gg(c)), but applied
     without regard to paragraph (1)(F) of such section and
     without regard to coverage provided by

[[Page H685]]

     reason of the application of subsection (a)(10)(A)(ii)(XX).
       ``(4)(A) No income or resources test shall be applied with
     respect to any category of individuals described in
     subparagraph (A) or (C) of paragraph (2) who are eligible for
     medical assistance only by reason of the application of
     subsection (a)(10)(A)(ii)(XX).
       ``(B) Nothing in this subsection shall be construed to
     prevent a State from imposing a resource test for the
     category of individuals described in paragraph (2)(B)).
       ``(C) In the case of individuals described in paragraph
     (2)(A) or (2)(C), the requirements of subsections (i)(22) and
     (x) in section 1903 shall not apply.''.
       (b) 100 Percent Federal Matching Rate.--
       (1) FMAP for time-limited period.--The third sentence of
     section 1905(b) of such Act (42 U.S.C. 1396d(b)) is amended
     by inserting before the period at the end the following:
     ``and for items and services furnished on or after the date
     of enactment of this Act and before January 1, 2011, to
     individuals who are eligible for medical assistance only by
     reason of the application of section
     1902(a)(10)(A)(ii)(XX)''.
       (2) Certain enrollment-related administrative costs.--
     Notwithstanding any other provision of law, for purposes of
     applying section 1903(a) of the Social Security Act (42
     U.S.C. 1396b(a)), with respect to expenditures incurred on or
     after the date of the enactment of this Act and before
     January 1, 2011, for costs of administration (including
     outreach and the modification and operation of eligibility
     information systems) attributable to eligibility
     determination and enrollment of individuals who are eligible
     for medical assistance only by reason of the application of
     section 1902(a)(10)(A)(ii)(XX) of such Act, as added by
     subsection (a)(1), the Federal matching percentage shall be
     100 percent instead of the matching percentage otherwise
     applicable.
       (c) Conforming Amendments.--(1) Section 1903(f)(4) of such
     Act (42 U.S.C. 1396c(f)(4)) is amended by inserting
     ``1902(a)(10)(A)(ii)(XX), or'' after
     ``1902(a)(10)(A)(ii)(XIX),''.
       (2) Section 1905(a) of such Act (42 U.S.C. 1396d(a)) is
     amended, in the matter preceding paragraph (1)--
       (A) by striking ``or'' at the end of clause (xii);
       (B) by adding ``or'' at the end of clause (xiii); and
       (C) by inserting after clause (xiii) the following new
     clause:
       ``(xiv) individuals described in section 1902(dd)(1),''.

                TITLE IV--HEALTH INFORMATION TECHNOLOGY

     SEC. 4001. SHORT TITLE; TABLE OF CONTENTS OF TITLE.

       (a) Short Title.--This title may be cited as the ``Health
     Information Technology for Economic and Clinical Health Act''
     or the ``HITECH Act''.
       (b) Table of Contents of Title.--The table of contents of
     this title is as follows:

Sec. 4001. Short title; table of contents of title.

         Subtitle A--Promotion of Health Information Technology

     Part I--Improving Health Care Quality, Safety, and Efficiency

Sec. 4101. ONCHIT; standards development and adoption.

         ``TITLE XXX--HEALTH INFORMATION TECHNOLOGY AND QUALITY

``Sec. 3000. Definitions.

        ``Subtitle A--Promotion of Health Information Technology

``Sec. 3001. Office of the National Coordinator for Health Information
              Technology.
``Sec. 3002. HIT Policy Committee.
``Sec. 3003. HIT Standards Committee.
``Sec. 3004. Process for adoption of endorsed recommendations; adoption
              of initial set of standards, implementation
              specifications, and certification criteria.
``Sec. 3005. Application and use of adopted standards and
              implementation specifications by Federal agencies.
``Sec. 3006. Voluntary application and use of adopted standards and
              implementation specifications by private entities.
``Sec. 3007. Federal health information technology.
``Sec. 3008. Transitions.
``Sec. 3009. Relation to HIPAA privacy and security law.
``Sec. 3010. Authorization for appropriations.
Sec. 4102. Technical amendment.

 Part II--Application and Use of Adopted Health Information Technology
                           Standards; Reports

Sec. 4111. Coordination of Federal activities with adopted standards
              and implementation specifications.
Sec. 4112. Application to private entities.
Sec. 4113. Study and reports.

          Subtitle B--Testing of Health Information Technology

Sec. 4201. National Institute for Standards and Technology testing.
Sec. 4202. Research and development programs.

  Subtitle C--Incentives for the Use of Health Information Technology

                    Part I--Grants and Loans Funding

Sec. 4301. Grant, loan, and demonstration programs.

 ``Subtitle B--Incentives for the Use of Health Information Technology

``Sec. 3011. Immediate funding to strengthen the health information
              technology infrastructure.
``Sec. 3012. Health information technology implementation assistance.
``Sec. 3013. State grants to promote health information technology.
``Sec. 3014. Competitive grants to States and Indian tribes for the
              development of loan programs to facilitate the widespread
              adoption of certified EHR technology.
``Sec. 3015. Demonstration program to integrate information technology
              into clinical education.
``Sec. 3016. Information technology professionals on health care.
``Sec. 3017. General grant and loan provisions.
``Sec. 3018. Authorization for appropriations.

                       Part II--Medicare Program

Sec. 4311. Incentives for eligible professionals.
Sec. 4312. Incentives for hospitals.
Sec. 4313. Treatment of payments and savings; implementation funding.
Sec. 4314. Study on application of EHR payment incentives for providers
              not receiving other incentive payments.

                       Part III--Medicaid Funding

Sec. 4321. Medicaid provider HIT adoption and operation payments;
              implementation funding.
Sec. 4322. Medicaid nursing home grant program.

                          Subtitle D--Privacy

Sec. 4400. Definitions.

      Part I--Improved Privacy Provisions and Security Provisions

Sec. 4401. Application of security provisions and penalties to business
              associates of covered entities; annual guidance on
              security provisions.
Sec. 4402. Notification in the case of breach.
Sec. 4403. Education on Health Information Privacy.
Sec. 4404. Application of privacy provisions and penalties to business
              associates of covered entities.
Sec. 4405. Restrictions on certain disclosures and sales of health
              information; accounting of certain protected health
              information disclosures; access to certain information in
              electronic format.
Sec. 4406. Conditions on certain contacts as part of health care
              operations.
Sec. 4407. Temporary breach notification requirement for vendors of
              personal health records and other non-HIPAA covered
              entities.
Sec. 4408. Business associate contracts required for certain entities.
Sec. 4409. Clarification of application of wrongful disclosures
              criminal penalties.
Sec. 4410. Improved enforcement.
Sec. 4411. Audits.
Sec. 4412. Special rule for information to reduce medication errors and
              improve patient safety.

 Part II--Relationship to Other Laws; Regulatory References; Effective
                             Date; Reports

Sec. 4421. Relationship to other laws.
Sec. 4422. Regulatory references.
Sec. 4423. Effective date.
Sec. 4424. Studies, reports, guidance.

             Subtitle E--Miscellaneous Medicare Provisions

Sec. 4501. Moratoria on certain Medicare regulations.
Sec. 4502. Long-term care hospital technical corrections.

         Subtitle A--Promotion of Health Information Technology

     PART I--IMPROVING HEALTH CARE QUALITY, SAFETY, AND EFFICIENCY

     SEC. 4101. ONCHIT; STANDARDS DEVELOPMENT AND ADOPTION.

       The Public Health Service Act (42 U.S.C. 201 et seq.) is
     amended by adding at the end the following:

         ``TITLE XXX--HEALTH INFORMATION TECHNOLOGY AND QUALITY

     ``SEC. 3000. DEFINITIONS.

       ``In this title:
       ``(1) Certified ehr technology.--The term `certified EHR
     technology' means a qualified electronic health record that
     is certified pursuant to section 3001(c)(5) as meeting
     standards adopted under section 3004 that are applicable to
     the type of record involved (as determined by the Secretary,
     such as an ambulatory electronic health record for office-
     based physicians or an inpatient hospital electronic health
     record for hospitals).
       ``(2) Enterprise integration.--The term `enterprise
     integration' means the electronic linkage of health care
     providers, health plans, the government, and other interested
     parties, to enable the electronic exchange and use of health
     information among all the components in the health care
     infrastructure in accordance with applicable law, and such
     term includes related application protocols and other related
     standards.
       ``(3) Health care provider.--The term `health care
     provider' means a hospital, skilled nursing facility, nursing
     facility, home health entity or other long term care

[[Page H686]]

     facility, health care clinic, Federally qualified health
     center, group practice (as defined in section 1877(h)(4) of
     the Social Security Act), a pharmacist, a pharmacy, a
     laboratory, a physician (as defined in section 1861(r) of the
     Social Security Act), a practitioner (as described in section
     1842(b)(18)(C) of the Social Security Act), a provider
     operated by, or under contract with, the Indian Health
     Service or by an Indian tribe (as defined in the Indian Self-
     Determination and Education Assistance Act), tribal
     organization, or urban Indian organization (as defined in
     section 4 of the Indian Health Care Improvement Act), a rural
     health clinic, a covered entity under section 340B, an
     ambulatory surgical center described in section 1833(i) of
     the Social Security Act, and any other category of facility
     or clinician determined appropriate by the Secretary.
       ``(4) Health information.--The term `health information'
     has the meaning given such term in section 1171(4) of the
     Social Security Act.
       ``(5) Health information technology.--The term `health
     information technology' means hardware, software, integrated
     technologies and related licenses, intellectual property,
     upgrades, and packaged solutions sold as services that are
     specifically designed for use by health care entities for the
     electronic creation, maintenance, or exchange of health
     information.
       ``(6) Health plan.--The term `health plan' has the meaning
     given such term in section 1171(5) of the Social Security
     Act.
       ``(7) HIT policy committee.--The term `HIT Policy
     Committee' means such Committee established under section
     3002(a).
       ``(8) HIT standards committee.--The term `HIT Standards
     Committee' means such Committee established under section
     3003(a).
       ``(9) Individually identifiable health information.--The
     term `individually identifiable health information' has the
     meaning given such term in section 1171(6) of the Social
     Security Act.
       ``(10) Laboratory.--The term `laboratory' has the meaning
     given such term in section 353(a).
       ``(11) National coordinator.--The term `National
     Coordinator' means the head of the Office of the National
     Coordinator for Health Information Technology established
     under section 3001(a).
       ``(12) Pharmacist.--The term `pharmacist' has the meaning
     given such term in section 804(2) of the Federal Food, Drug,
     and Cosmetic Act.
       ``(13) Qualified electronic health record.--The term
     `qualified electronic health record' means an electronic
     record of health-related information on an individual that--
       ``(A) includes patient demographic and clinical health
     information, such as medical history and problem lists; and
       ``(B) has the capacity--
       ``(i) to provide clinical decision support;
       ``(ii) to support physician order entry;
       ``(iii) to capture and query information relevant to health
     care quality; and
       ``(iv) to exchange electronic health information with, and
     integrate such information from other sources.
       ``(14) State.--The term `State' means each of the several
     States, the District of Columbia, Puerto Rico, the Virgin
     Islands, Guam, American Samoa, and the Northern Mariana
     Islands.

        ``Subtitle A--Promotion of Health Information Technology

     ``SEC. 3001. OFFICE OF THE NATIONAL COORDINATOR FOR HEALTH
                   INFORMATION TECHNOLOGY.

       ``(a) Establishment.--There is established within the
     Department of Health and Human Services an Office of the
     National Coordinator for Health Information Technology
     (referred to in this section as the `Office'). The Office
     shall be headed by a National Coordinator who shall be
     appointed by the Secretary and shall report directly to the
     Secretary.
       ``(b) Purpose.--The National Coordinator shall perform the
     duties under subsection (c) in a manner consistent with the
     development of a nationwide health information technology
     infrastructure that allows for the electronic use and
     exchange of information and that--
       ``(1) ensures that each patient's health information is
     secure and protected, in accordance with applicable law;
       ``(2) improves health care quality, reduces medical errors,
     reduces health disparities, and advances the delivery of
     patient-centered medical care;
       ``(3) reduces health care costs resulting from
     inefficiency, medical errors, inappropriate care, duplicative
     care, and incomplete information;
       ``(4) provides appropriate information to help guide
     medical decisions at the time and place of care;
       ``(5) ensures the inclusion of meaningful public input in
     such development of such infrastructure;
       ``(6) improves the coordination of care and information
     among hospitals, laboratories, physician offices, and other
     entities through an effective infrastructure for the secure
     and authorized exchange of health care information;
       ``(7) improves public health activities and facilitates the
     early identification and rapid response to public health
     threats and emergencies, including bioterror events and
     infectious disease outbreaks;
       ``(8) facilitates health and clinical research and health
     care quality;
       ``(9) promotes prevention of chronic diseases;
       ``(10) promotes a more effective marketplace, greater
     competition, greater systems analysis, increased consumer
     choice, and improved outcomes in health care services; and
       ``(11) improves efforts to reduce health disparities.
       ``(c) Duties of the National Coordinator.--
       ``(1) Standards.--The National Coordinator shall review and
     determine whether to endorse each standard, implementation
     specification, and certification criterion for the electronic
     exchange and use of health information that is recommended by
     the HIT Standards Committee under section 3003 for purposes
     of adoption under section 3004. The Coordinator shall make
     such determination, and report to the Secretary such
     determination, not later than 45 days after the date the
     recommendation is received by the Coordinator.
       ``(2) HIT policy coordination.--
       ``(A) In general.--The National Coordinator shall
     coordinate health information technology policy and programs
     of the Department with those of other relevant executive
     branch agencies with a goal of avoiding duplication of
     efforts and of helping to ensure that each agency undertakes
     health information technology activities primarily within the
     areas of its greatest expertise and technical capability and
     in a manner towards a coordinated national goal.
       ``(B) HIT policy and standards committees.--The National
     Coordinator shall be a leading member in the establishment
     and operations of the HIT Policy Committee and the HIT
     Standards Committee and shall serve as a liaison among those
     two Committees and the Federal Government.
       ``(3) Strategic plan.--
       ``(A) In general.--The National Coordinator shall, in
     consultation with other appropriate Federal agencies
     (including the National Institute of Standards and
     Technology), update the Federal Health IT Strategic Plan
     (developed as of June 3, 2008) to include specific
     objectives, milestones, and metrics with respect to the
     following:
       ``(i) The electronic exchange and use of health information
     and the enterprise integration of such information.
       ``(ii) The utilization of an electronic health record for
     each person in the United States by 2014.
       ``(iii) The incorporation of privacy and security
     protections for the electronic exchange of an individual's
     individually identifiable health information.
       ``(iv) Ensuring security methods to ensure appropriate
     authorization and electronic authentication of health
     information and specifying technologies or methodologies for
     rendering health information unusable, unreadable, or
     indecipherable.
       ``(v) Specifying a framework for coordination and flow of
     recommendations and policies under this subtitle among the
     Secretary, the National Coordinator, the HIT Policy
     Committee, the HIT Standards Committee, and other health
     information exchanges and other relevant entities.
       ``(vi) Methods to foster the public understanding of health
     information technology.
       ``(vii) Strategies to enhance the use of health information
     technology in improving the quality of health care, reducing
     medical errors, reducing health disparities, improving public
     health, and improving the continuity of care among health
     care settings.
       ``(B) Collaboration.--The strategic plan shall be updated
     through collaboration of public and private entities.
       ``(C) Measurable outcome goals.--The strategic plan update
     shall include measurable outcome goals.
       ``(D) Publication.--The National Coordinator shall
     republish the strategic plan, including all updates.
       ``(4) Website.--The National Coordinator shall maintain and
     frequently update an Internet website on which there is
     posted information on the work, schedules, reports,
     recommendations, and other information to ensure transparency
     in promotion of a nationwide health information technology
     infrastructure.
       ``(5) Certification.--
       ``(A) In general.--The National Coordinator, in
     consultation with the Director of the National Institute of
     Standards and Technology, shall develop a program (either
     directly or by contract) for the voluntary certification of
     health information technology as being in compliance with
     applicable certification criteria adopted under this
     subtitle. Such program shall include testing of the
     technology in accordance with section 4201(b) of the HITECH
     Act.
       ``(B) Certification criteria described.--In this title, the
     term `certification criteria' means, with respect to
     standards and implementation specifications for health
     information technology, criteria to establish that the
     technology meets such standards and implementation
     specifications.
       ``(6) Reports and publications.--
       ``(A) Report on additional funding or authority needed.--
     Not later than 12 months after the date of the enactment of
     this title, the National Coordinator shall submit to the
     appropriate committees of jurisdiction of the House of
     Representatives and the Senate a report on any additional
     funding or authority the Coordinator or the HIT Policy
     Committee or HIT Standards Committee requires to evaluate and
     develop standards, implementation specifications, and
     certification criteria, or to achieve full participation of

[[Page H687]]

     stakeholders in the adoption of a nationwide health
     information technology infrastructure that allows for the
     electronic use and exchange of health information.
       ``(B) Implementation report.--The National Coordinator
     shall prepare a report that identifies lessons learned from
     major public and private health care systems in their
     implementation of health information technology, including
     information on whether the technologies and practices
     developed by such systems may be applicable to and usable in
     whole or in part by other health care providers.
       ``(C) Assessment of impact of hit on communities with
     health disparities and uninsured, underinsured, and medically
     underserved areas.--The National Coordinator shall assess and
     publish the impact of health information technology in
     communities with health disparities and in areas with a high
     proportion of individuals who are uninsured, underinsured,
     and medically underserved individuals (including urban and
     rural areas) and identify practices to increase the adoption
     of such technology by health care providers in such
     communities.
       ``(D) Evaluation of benefits and costs of the electronic
     use and exchange of health information.--The National
     Coordinator shall evaluate and publish evidence on the
     benefits and costs of the electronic use and exchange of
     health information and assess to whom these benefits and
     costs accrue.
       ``(E) Resource requirements.--The National Coordinator
     shall estimate and publish resources required annually to
     reach the goal of utilization of an electronic health record
     for each person in the United States by 2014, including the
     required level of Federal funding, expectations for regional,
     State, and private investment, and the expected contributions
     by volunteers to activities for the utilization of such
     records.
       ``(7) Assistance.--The National Coordinator may provide
     financial assistance to consumer advocacy groups and not-for-
     profit entities that work in the public interest for purposes
     of defraying the cost to such groups and entities to
     participate under, whether in whole or in part, the National
     Technology Transfer Act of 1995 (15 U.S.C. 272 note).
       ``(8) Governance for nationwide health information
     network.--The National Coordinator shall establish a
     governance mechanism for the nationwide health information
     network.
       ``(d) Detail of Federal Employees.--
       ``(1) In general.--Upon the request of the National
     Coordinator, the head of any Federal agency is authorized to
     detail, with or without reimbursement from the Office, any of
     the personnel of such agency to the Office to assist it in
     carrying out its duties under this section.
       ``(2) Effect of detail.--Any detail of personnel under
     paragraph (1) shall--
       ``(A) not interrupt or otherwise affect the civil service
     status or privileges of the Federal employee; and
       ``(B) be in addition to any other staff of the Department
     employed by the National Coordinator.
       ``(3) Acceptance of detailees.--Notwithstanding any other
     provision of law, the Office may accept detailed personnel
     from other Federal agencies without regard to whether the
     agency described under paragraph (1) is reimbursed.
       ``(e) Chief Privacy Officer of the Office of the National
     Coordinator.--Not later than 12 months after the date of the
     enactment of this title, the Secretary shall appoint a Chief
     Privacy Officer of the Office of the National Coordinator,
     whose duty it shall be to advise the National Coordinator on
     privacy, security, and data stewardship of electronic health
     information and to coordinate with other Federal agencies
     (and similar privacy officers in such agencies), with State
     and regional efforts, and with foreign countries with regard
     to the privacy, security, and data stewardship of electronic
     individually identifiable health information.

     ``SEC. 3002. HIT POLICY COMMITTEE.

       ``(a) Establishment.--There is established a HIT Policy
     Committee to make policy recommendations to the National
     Coordinator relating to the implementation of a nationwide
     health information technology infrastructure, including
     implementation of the strategic plan described in section
     3001(c)(3).
       ``(b) Duties.--
       ``(1) Recommendations on health information technology
     infrastructure.--The HIT Policy Committee shall recommend a
     policy framework for the development and adoption of a
     nationwide health information technology infrastructure that
     permits the electronic exchange and use of health information
     as is consistent with the strategic plan under section
     3001(c)(3) and that includes the recommendations under
     paragraph (2). The Committee shall update such
     recommendations and make new recommendations as appropriate.
       ``(2) Specific areas of standard development.--
       ``(A) In general.--The HIT Policy Committee shall recommend
     the areas in which standards, implementation specifications,
     and certification criteria are needed for the electronic
     exchange and use of health information for purposes of
     adoption under section 3004 and shall recommend an order of
     priority for the development, harmonization, and recognition
     of such standards, specifications, and certification criteria
     among the areas so recommended. Such standards and
     implementation specifications shall include named standards,
     architectures, and software schemes for the authentication
     and security of individually identifiable health information
     and other information as needed to ensure the reproducible
     development of common solutions across disparate entities.
       ``(B) Areas required for consideration.--For purposes of
     subparagraph (A), the HIT Policy Committee shall make
     recommendations for at least the following areas:
       ``(i) Technologies that protect the privacy of health
     information and promote security in a qualified electronic
     health record, including for the segmentation and protection
     from disclosure of specific and sensitive individually
     identifiable health information with the goal of minimizing
     the reluctance of patients to seek care (or disclose
     information about a condition) because of privacy concerns,
     in accordance with applicable law, and for the use and
     disclosure of limited data sets of such information.
       ``(ii) A nationwide health information technology
     infrastructure that allows for the electronic use and
     accurate exchange of health information.
       ``(iii) The utilization of a certified electronic health
     record for each person in the United States by 2014.
       ``(iv) Technologies that as a part of a qualified
     electronic health record allow for an accounting of
     disclosures made by a covered entity (as defined for purposes
     of regulations promulgated under section 264(c) of the Health
     Insurance Portability and Accountability Act of 1996) for
     purposes of treatment, payment, and health care operations
     (as such terms are defined for purposes of such regulations).
       ``(v) The use of certified electronic health records to
     improve the quality of health care, such as by promoting the
     coordination of health care and improving continuity of
     health care among health care providers, by reducing medical
     errors, by improving population health, by reducing health
     disparities, and by advancing research and education.
       ``(vi) Technologies that allow individually identifiable
     health information to be rendered unusable, unreadable, or
     indecipherable to unauthorized individuals when such
     information is transmitted in the nationwide health
     information network or physically transported outside of the
     secured, physical perimeter of a health care provider, health
     plan, or health care clearinghouse.
       ``(C) Other areas for consideration.--In making
     recommendations under subparagraph (A), the HIT Policy
     Committee may consider the following additional areas:
       ``(i) The appropriate uses of a nationwide health
     information infrastructure, including for purposes of--

       ``(I) the collection of quality data and public reporting;
       ``(II) biosurveillance and public health;
       ``(III) medical and clinical research; and
       ``(IV) drug safety.

       ``(ii) Self-service technologies that facilitate the use
     and exchange of patient information and reduce wait times.
       ``(iii) Telemedicine technologies, in order to reduce
     travel requirements for patients in remote areas.
       ``(iv) Technologies that facilitate home health care and
     the monitoring of patients recuperating at home.
       ``(v) Technologies that help reduce medical errors.
       ``(vi) Technologies that facilitate the continuity of care
     among health settings.
       ``(vii) Technologies that meet the needs of diverse
     populations.
       ``(viii) Any other technology that the HIT Policy Committee
     finds to be among the technologies with the greatest
     potential to improve the quality and efficiency of health
     care.
       ``(3) Forum.--The HIT Policy Committee shall serve as a
     forum for broad stakeholder input with specific expertise in
     policies relating to the matters described in paragraphs (1)
     and (2).
       ``(c) Membership and Operations.--
       ``(1) In general.--The National Coordinator shall provide
     leadership in the establishment and operations of the HIT
     Policy Committee.
       ``(2) Membership.--The membership of the HIT Policy
     Committee shall at least reflect providers, ancillary
     healthcare workers, consumers, purchasers, health plans,
     technology vendors, researchers, relevant Federal agencies,
     and individuals with technical expertise on health care
     quality, privacy and security, and on the electronic exchange
     and use of health information.
       ``(3) Consideration.--The National Coordinator shall ensure
     that the relevant recommendations and comments from the
     National Committee on Vital and Health Statistics are
     considered in the development of policies.
       ``(d) Application of FACA.--The Federal Advisory Committee
     Act (5 U.S.C. App.), other than section 14 of such Act, shall
     apply to the HIT Policy Committee.
       ``(e) Publication.--The Secretary shall provide for
     publication in the Federal Register and the posting on the
     Internet website of the Office of the National Coordinator
     for Health Information Technology of all policy
     recommendations made by the HIT Policy Committee under this
     section.

     ``SEC. 3003. HIT STANDARDS COMMITTEE.

       ``(a) Establishment.--There is established a committee to
     be known as the HIT Standards Committee to recommend to the
     National Coordinator standards, implementation
     specifications, and certification criteria for the electronic
     exchange and use of health information for purposes of
     adoption under

[[Page H688]]

     section 3004, consistent with the implementation of the
     strategic plan described in section 3001(c)(3) and beginning
     with the areas listed in section 3002(b)(2)(B) in accordance
     with policies developed by the HIT Policy Committee.
       ``(b) Duties.--
       ``(1) Standards development.--
       ``(A) In general.--The HIT Standards Committee shall
     recommend to the National Coordinator standards,
     implementation specifications, and certification criteria
     described in subsection (a) that have been developed,
     harmonized, or recognized by the HIT Standards Committee. The
     HIT Standards Committee shall update such recommendations and
     make new recommendations as appropriate, including in
     response to a notification sent under section 3004(a)(2)(B).
     Such recommendations shall be consistent with the latest
     recommendations made by the HIT Policy Committee.
       ``(B) Pilot testing of standards and implementation
     specifications.--In the development, harmonization, or
     recognition of standards and implementation specifications,
     the HIT Standards Committee shall, as appropriate, provide
     for the testing of such standards and specifications by the
     National Institute for Standards and Technology under section
     4201(a) of the HITECH Act.
       ``(C) Consistency.--The standards, implementation
     specifications, and certification criteria recommended under
     this subsection shall be consistent with the standards for
     information transactions and data elements adopted pursuant
     to section 1173 of the Social Security Act.
       ``(2) Forum.--The HIT Standards Committee shall serve as a
     forum for the participation of a broad range of stakeholders
     to provide input on the development, harmonization, and
     recognition of standards, implementation specifications, and
     certification criteria necessary for the development and
     adoption of a nationwide health information technology
     infrastructure that allows for the electronic use and
     exchange of health information.
       ``(3) Schedule.--Not later than 90 days after the date of
     the enactment of this title, the HIT Standards Committee
     shall develop a schedule for the assessment of policy
     recommendations developed by the HIT Policy Committee under
     section 3002. The HIT Standards Committee shall update such
     schedule annually. The Secretary shall publish such schedule
     in the Federal Register.
       ``(4) Public input.--The HIT Standards Committee shall
     conduct open public meetings and develop a process to allow
     for public comment on the schedule described in paragraph (3)
     and recommendations described in this subsection. Under such
     process comments shall be submitted in a timely manner after
     the date of publication of a recommendation under this
     subsection.
       ``(c) Membership and Operations.--
       ``(1) In general.--The National Coordinator shall provide
     leadership in the establishment and operations of the HIT
     Standards Committee.
       ``(2) Membership.--The membership of the HIT Standards
     Committee shall at least reflect providers, ancillary
     healthcare workers, consumers, purchasers, health plans,
     technology vendors, researchers, relevant Federal agencies,
     and individuals with technical expertise on health care
     quality, privacy and security, and on the electronic exchange
     and use of health information.
       ``(3) Consideration.--The National Coordinator shall ensure
     that the relevant recommendations and comments from the
     National Committee on Vital and Health Statistics are
     considered in the development of standards.
       ``(4) Assistance.--For the purposes of carrying out this
     section, the Secretary may provide or ensure that financial
     assistance is provided by the HIT Standards Committee to
     defray in whole or in part any membership fees or dues
     charged by such Committee to those consumer advocacy groups
     and not for profit entities that work in the public interest
     as a part of their mission.
       ``(d) Application of FACA.--The Federal Advisory Committee
     Act (5 U.S.C. App.), other than section 14, shall apply to
     the HIT Standards Committee.
       ``(e) Publication.--The Secretary shall provide for
     publication in the Federal Register and the posting on the
     Internet website of the Office of the National Coordinator
     for Health Information Technology of all recommendations made
     by the HIT Standards Committee under this section.

     ``SEC. 3004. PROCESS FOR ADOPTION OF ENDORSED
                   RECOMMENDATIONS; ADOPTION OF INITIAL SET OF
                   STANDARDS, IMPLEMENTATION SPECIFICATIONS, AND
                   CERTIFICATION CRITERIA.

       ``(a) Process for Adoption of Endorsed Recommendations.--
       ``(1) Review of endorsed standards, implementation
     specifications, and certification criteria.--Not later than
     90 days after the date of receipt of standards,
     implementation specifications, or certification criteria
     endorsed under section 3001(c), the Secretary, in
     consultation with representatives of other relevant Federal
     agencies, shall jointly review such standards, implementation
     specifications, or certification criteria and shall determine
     whether or not to propose adoption of such standards,
     implementation specifications, or certification criteria.
       ``(2) Determination to adopt standards, implementation
     specifications, and certification criteria.--If the Secretary
     determines--
       ``(A) to propose adoption of any grouping of such
     standards, implementation specifications, or certification
     criteria, the Secretary shall, by regulation, determine
     whether or not to adopt such grouping of standards,
     implementation specifications, or certification criteria; or
       ``(B) not to propose adoption of any grouping of standards,
     implementation specifications, or certification criteria, the
     Secretary shall notify the National Coordinator and the HIT
     Standards Committee in writing of such determination and the
     reasons for not proposing the adoption of such
     recommendation.
       ``(3) Publication.--The Secretary shall provide for
     publication in the Federal Register of all determinations
     made by the Secretary under paragraph (1).
       ``(b) Adoption of Initial Set of Standards, Implementation
     Specifications, and Certification Criteria.--
       ``(1) In general.--Not later than December 31, 2009, the
     Secretary shall, through the rulemaking process described in
     section 3004(a), adopt an initial set of standards,
     implementation specifications, and certification criteria for
     the areas required for consideration under section
     3002(b)(2)(B).
       ``(2) Application of current standards, implementation
     specifications, and certification criteria.--The standards,
     implementation specifications, and certification criteria
     adopted before the date of the enactment of this title
     through the process existing through the Office of the
     National Coordinator for Health Information Technology may be
     applied towards meeting the requirement of paragraph (1).

     ``SEC. 3005. APPLICATION AND USE OF ADOPTED STANDARDS AND
                   IMPLEMENTATION SPECIFICATIONS BY FEDERAL
                   AGENCIES.

       ``For requirements relating to the application and use by
     Federal agencies of the standards and implementation
     specifications adopted under section 3004, see section 4111
     of the HITECH Act.

     ``SEC. 3006. VOLUNTARY APPLICATION AND USE OF ADOPTED
                   STANDARDS AND IMPLEMENTATION SPECIFICATIONS BY
                   PRIVATE ENTITIES.

       ``(a) In General.--Except as provided under section 4112 of
     the HITECH Act, any standard or implementation specification
     adopted under section 3004 shall be voluntary with respect to
     private entities.
       ``(b) Rule of Construction.--Nothing in this subtitle shall
     be construed to require that a private entity that enters
     into a contract with the Federal Government apply or use the
     standards and implementation specifications adopted under
     section 3004 with respect to activities not related to the
     contract.

     ``SEC. 3007. FEDERAL HEALTH INFORMATION TECHNOLOGY.

       ``(a) In General.--The National Coordinator shall support
     the development, routine updating, and provision of qualified
     EHR technology (as defined in section 3000) consistent with
     subsections (b) and (c) unless the Secretary determines that
     the needs and demands of providers are being substantially
     and adequately met through the marketplace.
       ``(b) Certification.--In making such EHR technology
     publicly available, the National Coordinator shall ensure
     that the qualified EHR technology described in subsection (a)
     is certified under the program developed under section
     3001(c)(3) to be in compliance with applicable standards
     adopted under section 3003(a).
       ``(c) Authorization To Charge a Nominal Fee.--The National
     Coordinator may impose a nominal fee for the adoption by a
     health care provider of the health information technology
     system developed or approved under subsection (a) and (b).
     Such fee shall take into account the financial circumstances
     of smaller providers, low income providers, and providers
     located in rural or other medically underserved areas.
       ``(d) Rule of Construction.--Nothing in this section shall
     be construed to require that a private or government entity
     adopt or use the technology provided under this section.

     ``SEC. 3008. TRANSITIONS.

       ``(a) ONCHIT.--To the extent consistent with section 3001,
     all functions, personnel, assets, liabilities, and
     administrative actions applicable to the National Coordinator
     for Health Information Technology appointed under Executive
     Order 13335 or the Office of such National Coordinator on the
     date before the date of the enactment of this title shall be
     transferred to the National Coordinator appointed under
     section 3001(a) and the Office of such National Coordinator
     as of the date of the enactment of this title.
       ``(b) AHIC.--
       ``(1) To the extent consistent with sections 3002 and 3003,
     all functions, personnel, assets, and liabilities applicable
     to the AHIC Successor, Inc. doing business as the National
     eHealth Collaborative as of the day before the date of the
     enactment of this title shall be transferred to the HIT
     Policy Committee or the HIT Standards Committee, established
     under section 3002(a) or 3003(a), as appropriate, as of the
     date of the enactment of this title.
       ``(2) In carrying out section 3003(b)(1)(A), until
     recommendations are made by the HIT Policy Committee,
     recommendations of the

[[Page H689]]

     HIT Standards Committee shall be consistent with the most
     recent recommendations made by such AHIC Successor, Inc.
       ``(c) Rules of Construction.--
       ``(1) ONCHIT.--Nothing in section 3001 or subsection (a)
     shall be construed as requiring the creation of a new entity
     to the extent that the Office of the National Coordinator for
     Health Information Technology established pursuant to
     Executive Order 13335 is consistent with the provisions of
     section 3001.
       ``(2) AHIC.--Nothing in sections 3002 or 3003 or subsection
     (b) shall be construed as prohibiting the AHIC Successor,
     Inc. doing business as the National eHealth Collaborative
     from modifying its charter, duties, membership, and any other
     structure or function required to be consistent with section
     3002 and 3003 in a manner that would permit the Secretary to
     choose to recognize such AHIC Successor, Inc. as the HIT
     Policy Committee or the HIT Standards Committee.

     ``SEC. 3009. RELATION TO HIPAA PRIVACY AND SECURITY LAW.

       ``(a) In General.--With respect to the relation of this
     title to HIPAA privacy and security law:
       ``(1) This title may not be construed as having any effect
     on the authorities of the Secretary under HIPAA privacy and
     security law.
       ``(2) The purposes of this title include ensuring that the
     health information technology standards and implementation
     specifications adopted under section 3004 take into account
     the requirements of HIPAA privacy and security law.
       ``(b) Definition.--For purposes of this section, the term
     `HIPAA privacy and security law' means--
       ``(1) the provisions of part C of title XI of the Social
     Security Act, section 264 of the Health Insurance Portability
     and Accountability Act of 1996, and subtitle D of title IV of
     the HITECH Act; and
       ``(2) regulations under such provisions.

     ``SEC. 3010. AUTHORIZATION FOR APPROPRIATIONS.

       ``There is authorized to be appropriated to the Office of
     the National Coordinator for Health Information Technology to
     carry out this subtitle $250,000,000 for fiscal year 2009.''.

     SEC. 4102. TECHNICAL AMENDMENT.

       Section 1171(5) of the Social Security Act (42 U.S.C.
     1320d) is amended by striking ``or C'' and inserting ``C, or
     D''.

 PART II--APPLICATION AND USE OF ADOPTED HEALTH INFORMATION TECHNOLOGY
                           STANDARDS; REPORTS

     SEC. 4111. COORDINATION OF FEDERAL ACTIVITIES WITH ADOPTED
                   STANDARDS AND IMPLEMENTATION SPECIFICATIONS.

       (a) Spending on Health Information Technology Systems.--As
     each agency (as defined in the Executive Order issued on
     August 22, 2006, relating to promoting quality and efficient
     health care in Federal government administered or sponsored
     health care programs) implements, acquires, or upgrades
     health information technology systems used for the direct
     exchange of individually identifiable health information
     between agencies and with non-Federal entities, it shall
     utilize, where available, health information technology
     systems and products that meet standards and implementation
     specifications adopted under section 3004 of the Public
     Health Service Act, as added by section 4101.
       (b) Federal Information Collection Activities.--With
     respect to a standard or implementation specification adopted
     under section 3004 of the Public Health Service Act, as added
     by section 4101, the President shall take measures to ensure
     that Federal activities involving the broad collection and
     submission of health information are consistent with such
     standard or implementation specification, respectively,
     within three years after the date of such adoption.
       (c) Application of Definitions.--The definitions contained
     in section 3000 of the Public Health Service Act, as added by
     section 4101, shall apply for purposes of this part.

     SEC. 4112. APPLICATION TO PRIVATE ENTITIES.

       Each agency (as defined in such Executive Order issued on
     August 22, 2006, relating to promoting quality and efficient
     health care in Federal government administered or sponsored
     health care programs) shall require in contracts or
     agreements with health care providers, health plans, or
     health insurance issuers that as each provider, plan, or
     issuer implements, acquires, or upgrades health information
     technology systems, it shall utilize, where available, health
     information technology systems and products that meet
     standards and implementation specifications adopted under
     section 3004 of the Public Health Service Act, as added by
     section 4101.

     SEC. 4113. STUDY AND REPORTS.

       (a) Report on Adoption of Nationwide System.--Not later
     than 2 years after the date of the enactment of this Act and
     annually thereafter, the Secretary of Health and Human
     Services shall submit to the appropriate committees of
     jurisdiction of the House of Representatives and the Senate a
     report that--
       (1) describes the specific actions that have been taken by
     the Federal Government and private entities to facilitate the
     adoption of a nationwide system for the electronic use and
     exchange of health information;
       (2) describes barriers to the adoption of such a nationwide
     system; and
       (3) contains recommendations to achieve full implementation
     of such a nationwide system.
       (b) Reimbursement Incentive Study and Report.--
       (1) Study.--The Secretary of Health and Human Services
     shall carry out, or contract with a private entity to carry
     out, a study that examines methods to create efficient
     reimbursement incentives for improving health care quality in
     Federally qualified health centers, rural health clinics, and
     free clinics.
       (2) Report.--Not later than 2 years after the date of the
     enactment of this Act, the Secretary of Health and Human
     Services shall submit to the appropriate committees of
     jurisdiction of the House of Representatives and the Senate a
     report on the study carried out under paragraph (1).
       (c) Aging Services Technology Study and Report.--
       (1) In general.--The Secretary of Health and Human Services
     shall carry out, or contract with a private entity to carry
     out, a study of matters relating to the potential use of new
     aging services technology to assist seniors, individuals with
     disabilities, and their caregivers throughout the aging
     process.
       (2) Matters to be studied.--The study under paragraph (1)
     shall include--
       (A) an evaluation of--
       (i) methods for identifying current, emerging, and future
     health technology that can be used to meet the needs of
     seniors and individuals with disabilities and their
     caregivers across all aging services settings, as specified
     by the Secretary;
       (ii) methods for fostering scientific innovation with
     respect to aging services technology within the business and
     academic communities; and
       (iii) developments in aging services technology in other
     countries that may be applied in the United States; and
       (B) identification of--
       (i) barriers to innovation in aging services technology and
     devising strategies for removing such barriers; and
       (ii) barriers to the adoption of aging services technology
     by health care providers and consumers and devising
     strategies to removing such barriers.
       (3) Report.--Not later than 24 months after the date of the
     enactment of this Act, the Secretary shall submit to the
     appropriate committees of jurisdiction of the House of
     Representatives and of the Senate a report on the study
     carried out under paragraph (1).
       (4) Definitions.--For purposes of this subsection:
       (A) Aging services technology.--The term ``aging services
     technology'' means health technology that meets the health
     care needs of seniors, individuals with disabilities, and the
     caregivers of such seniors and individuals.
       (B) Senior.--The term ``senior'' has such meaning as
     specified by the Secretary.

          Subtitle B--Testing of Health Information Technology

     SEC. 4201. NATIONAL INSTITUTE FOR STANDARDS AND TECHNOLOGY
                   TESTING.

       (a) Pilot Testing of Standards and Implementation
     Specifications.--In coordination with the HIT Standards
     Committee established under section 3003 of the Public Health
     Service Act, as added by section 4101, with respect to the
     development of standards and implementation specifications
     under such section, the Director of the National Institute
     for Standards and Technology shall test such standards and
     implementation specifications, as appropriate, in order to
     assure the efficient implementation and use of such standards
     and implementation specifications.
       (b) Voluntary Testing Program.--In coordination with the
     HIT Standards Committee established under section 3003 of the
     Public Health Service Act, as added by section 4101, with
     respect to the development of standards and implementation
     specifications under such section, the Director of the
     National Institute of Standards and Technology shall support
     the establishment of a conformance testing infrastructure,
     including the development of technical test beds. The
     development of this conformance testing infrastructure may
     include a program to accredit independent, non-Federal
     laboratories to perform testing.

     SEC. 4202. RESEARCH AND DEVELOPMENT PROGRAMS.

       (a) Health Care Information Enterprise Integration Research
     Centers.--
       (1) In general.--The Director of the National Institute of
     Standards and Technology, in consultation with the Director
     of the National Science Foundation and other appropriate
     Federal agencies, shall establish a program of assistance to
     institutions of higher education (or consortia thereof which
     may include nonprofit entities and Federal Government
     laboratories) to establish multidisciplinary Centers for
     Health Care Information Enterprise Integration.
       (2) Review; competition.--Grants shall be awarded under
     this subsection on a merit-reviewed, competitive basis.
       (3) Purpose.--The purposes of the Centers described in
     paragraph (1) shall be--
       (A) to generate innovative approaches to health care
     information enterprise integration by conducting cutting-
     edge, multidisciplinary research on the systems challenges to
     health care delivery; and
       (B) the development and use of health information
     technologies and other complementary fields.
       (4) Research areas.--Research areas may include--

[[Page H690]]

       (A) interfaces between human information and communications
     technology systems;
       (B) voice-recognition systems;
       (C) software that improves interoperability and
     connectivity among health information systems;
       (D) software dependability in systems critical to health
     care delivery;
       (E) measurement of the impact of information technologies
     on the quality and productivity of health care;
       (F) health information enterprise management;
       (G) health information technology security and integrity;
     and
       (H) relevant health information technology to reduce
     medical errors.
       (5) Applications.--An institution of higher education (or a
     consortium thereof) seeking funding under this subsection
     shall submit an application to the Director of the National
     Institute of Standards and Technology at such time, in such
     manner, and containing such information as the Director may
     require. The application shall include, at a minimum, a
     description of--
       (A) the research projects that will be undertaken by the
     Center established pursuant to assistance under paragraph (1)
     and the respective contributions of the participating
     entities;
       (B) how the Center will promote active collaboration among
     scientists and engineers from different disciplines, such as
     information technology, biologic sciences, management, social
     sciences, and other appropriate disciplines;
       (C) technology transfer activities to demonstrate and
     diffuse the research results, technologies, and knowledge;
     and
       (D) how the Center will contribute to the education and
     training of researchers and other professionals in fields
     relevant to health information enterprise integration.
       (b) National Information Technology Research and
     Development Program.--The National High-Performance Computing
     Program established by section 101 of the High-Performance
     Computing Act of 1991 (15 U.S.C. 5511) shall coordinate
     Federal research and development programs related to the
     development and deployment of health information technology,
     including activities related to--
       (1) computer infrastructure;
       (2) data security;
       (3) development of large-scale, distributed, reliable
     computing systems;
       (4) wired, wireless, and hybrid high-speed networking;
       (5) development of software and software-intensive systems;
       (6) human-computer interaction and information management
     technologies; and
       (7) the social and economic implications of information
     technology.

  Subtitle C--Incentives for the Use of Health Information Technology

                    PART I--GRANTS AND LOANS FUNDING

     SEC. 4301. GRANT, LOAN, AND DEMONSTRATION PROGRAMS.

       Title XXX of the Public Health Service Act, as added by
     section 4101, is amended by adding at the end the following
     new subtitle:

 ``Subtitle B--Incentives for the Use of Health Information Technology

     ``SEC. 3011. IMMEDIATE FUNDING TO STRENGTHEN THE HEALTH
                   INFORMATION TECHNOLOGY INFRASTRUCTURE.

       ``(a) In General.--The Secretary shall, using amounts
     appropriated under section 3018, 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 National Coordinator (and as
     available) under section 3001. To the greatest extent
     practicable, the Secretary shall ensure that any funds so
     appropriated shall be used for the acquisition of health
     information technology that meets standards and certification
     criteria adopted before the date of the enactment of this
     title until such date as the standards are adopted under
     section 3004. The Secretary shall invest funds through the
     different agencies with expertise in such goals, such as the
     Office of the National Coordinator for Health Information
     Technology, the Health Resources and Services Administration,
     the Agency for Healthcare Research and Quality, the Centers
     of Medicare & Medicaid Services, the Centers for Disease
     Control and Prevention, and the Indian Health Service to
     support 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) Development and adoption of appropriate certified
     electronic health records for categories of providers, as
     defined in section 3000, not eligible for support under title
     XVIII or XIX of the Social Security Act for the adoption of
     such records.
       ``(3) Training on and dissemination of information on best
     practices to integrate health information technology,
     including electronic health records, into a provider's
     delivery of care, consistent with best practices learned from
     the Health Information Technology Research Center developed
     under section 3012(b), including community health centers
     receiving assistance under section 330, covered entities
     under section 340B, 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.
       ``(6) Promotion of technologies and best practices that
     enhance the protection of health information by all holders
     of individually identifiable health information.
       ``(7) Improvement and expansion of the use of health
     information technology by public health departments.
       ``(8) Provision of $300 million to support regional or sub-
     national efforts towards health information exchange.
       ``(b) Coordination.--The Secretary shall ensure funds under
     this section are used in a coordinated manner with other
     health information promotion activities.
       ``(c) Additional Use of Funds.--In addition to using funds
     as provided in subsection (a), the Secretary may use amounts
     appropriated under section 3018 to carry out health
     information technology activities that are provided for under
     laws in effect on the date of the enactment of this title.

     ``SEC. 3012. HEALTH INFORMATION TECHNOLOGY IMPLEMENTATION
                   ASSISTANCE.

       ``(a) Health Information Technology Extension Program.--To
     assist health care providers to adopt, implement, and
     effectively use certified EHR technology that allows for the
     electronic exchange and use of health information, the
     Secretary, acting through the Office of the National
     Coordinator, shall establish a health information technology
     extension program to provide health information technology
     assistance services to be carried out through the Department
     of Health and Human Services. The National Coordinator shall
     consult with other Federal agencies with demonstrated
     experience and expertise in information technology services,
     such as the National Institute of Standards and Technology,
     in developing and implementing this program.
       ``(b) Health Information Technology Research Center.--
       ``(1) In general.--The Secretary shall create a Health
     Information Technology Research Center (in this section
     referred to as the `Center') to provide technical assistance
     and develop or recognize best practices to support and
     accelerate efforts to adopt, implement, and effectively
     utilize health information technology that allows for the
     electronic exchange and use of information in compliance with
     standards, implementation specifications, and certification
     criteria adopted under section 3004.
       ``(2) Input.--The Center shall incorporate input from--
       ``(A) other Federal agencies with demonstrated experience
     and expertise in information technology services such as the
     National Institute of Standards and Technology;
       ``(B) users of health information technology, such as
     providers and their support and clerical staff and others
     involved in the care and care coordination of patients, from
     the health care and health information technology industry;
     and
       ``(C) others as appropriate.
       ``(3) Purposes.--The purposes of the Center are to--
       ``(A) provide a forum for the exchange of knowledge and
     experience;
       ``(B) accelerate the transfer of lessons learned from
     existing public and private sector initiatives, including
     those currently receiving Federal financial support;
       ``(C) assemble, analyze, and widely disseminate evidence
     and experience related to the adoption, implementation, and
     effective use of health information technology that allows
     for the electronic exchange and use of information including
     through the regional centers described in subsection (c);
       ``(D) provide technical assistance for the establishment
     and evaluation of regional and local health information
     networks to facilitate the electronic exchange of information
     across health care settings and improve the quality of health
     care;
       ``(E) provide technical assistance for the development and
     dissemination of solutions to barriers to the exchange of
     electronic health information; and
       ``(F) learn about effective strategies to adopt and utilize
     health information technology in medically underserved
     communities.
       ``(c) Health Information Technology Regional Extension
     Centers.--
       ``(1) In general.--The Secretary shall provide assistance
     for the creation and support of regional centers (in this
     subsection referred to as `regional centers') to provide
     technical assistance and disseminate best practices and other
     information learned from the Center to support and accelerate
     efforts to adopt, implement, and effectively utilize health
     information technology that allows for the electronic
     exchange and use of information in compliance with standards,
     implementation specifications, and certification criteria
     adopted under section 3004. Activities conducted under this
     subsection shall be consistent with the strategic plan
     developed by the National Coordinator, (and, as available)
     under section 3001.
       ``(2) Affiliation.--Regional centers shall be affiliated
     with any United States-based

[[Page H691]]

     nonprofit institution or organization, or group thereof, that
     applies and is awarded financial assistance under this
     section. Individual awards shall be decided on the basis of
     merit.
       ``(3) Objective.--The objective of the regional centers is
     to enhance and promote the adoption of health information
     technology through--
       ``(A) assistance with the implementation, effective use,
     upgrading, and ongoing maintenance of health information
     technology, including electronic health records, to
     healthcare providers nationwide;
       ``(B) broad participation of individuals from industry,
     universities, and State governments;
       ``(C) active dissemination of best practices and research
     on the implementation, effective use, upgrading, and ongoing
     maintenance of health information technology, including
     electronic health records, to health care providers in order
     to improve the quality of healthcare and protect the privacy
     and security of health information;
       ``(D) participation, to the extent practicable, in health
     information exchanges;
       ``(E) utilization, when appropriate, of the expertise and
     capability that exists in Federal agencies other than the
     Department; and
       ``(F) integration of health information technology,
     including electronic health records, into the initial and
     ongoing training of health professionals and others in the
     healthcare industry that would be instrumental to improving
     the quality of healthcare through the smooth and accurate
     electronic use and exchange of health information.
       ``(4) Regional assistance.--Each regional center shall aim
     to provide assistance and education to all providers in a
     region, but shall prioritize any direct assistance first to
     the following:
       ``(A) Public or not-for-profit hospitals or critical access
     hospitals.
       ``(B) Federally qualified health centers (as defined in
     section 1861(aa)(4) of the Social Security Act).
       ``(C) Entities that are located in rural and other areas
     that serve uninsured, underinsured, and medically underserved
     individuals (regardless of whether such area is urban or
     rural).
       ``(D) Individual or small group practices (or a consortium
     thereof) that are primarily focused on primary care.
       ``(5) Financial support.--The Secretary may provide
     financial support to any regional center created under this
     subsection for a period not to exceed four years. The
     Secretary may not provide more than 50 percent of the capital
     and annual operating and maintenance funds required to create
     and maintain such a center, except in an instance of national
     economic conditions which would render this cost-share
     requirement detrimental to the program and upon notification
     to Congress as to the justification to waive the cost-share
     requirement.
       ``(6) Notice of program description and availability of
     funds.--The Secretary shall publish in the Federal Register,
     not later than 90 days after the date of the enactment of
     this title, a draft description of the program for
     establishing regional centers under this subsection. Such
     description shall include the following:
       ``(A) A detailed explanation of the program and the
     programs goals.
       ``(B) Procedures to be followed by the applicants.
       ``(C) Criteria for determining qualified applicants.
       ``(D) Maximum support levels expected to be available to
     centers under the program.
       ``(7) Application review.--The Secretary shall subject each
     application under this subsection to merit review. In making
     a decision whether to approve such application and provide
     financial support, the Secretary shall consider at a minimum
     the merits of the application, including those portions of
     the application regarding--
       ``(A) the ability of the applicant to provide assistance
     under this subsection and utilization of health information
     technology appropriate to the needs of particular categories
     of health care providers;
       ``(B) the types of service to be provided to health care
     providers;
       ``(C) geographical diversity and extent of service area;
     and
       ``(D) the percentage of funding and amount of in-kind
     commitment from other sources.
       ``(8) Biennial evaluation.--Each regional center which
     receives financial assistance under this subsection shall be
     evaluated biennially by an evaluation panel appointed by the
     Secretary. Each evaluation panel shall be composed of private
     experts, none of whom shall be connected with the center
     involved, and of Federal officials. Each evaluation panel
     shall measure the involved center's performance against the
     objective specified in paragraph (3). The Secretary shall not
     continue to provide funding to a regional center unless its
     evaluation is overall positive.
       ``(9) Continuing support.--After the second year of
     assistance under this subsection, a regional center may
     receive additional support under this subsection if it has
     received positive evaluations and a finding by the Secretary
     that continuation of Federal funding to the center was in the
     best interest of provision of health information technology
     extension services.

     ``SEC. 3013. STATE GRANTS TO PROMOTE HEALTH INFORMATION
                   TECHNOLOGY.

       ``(a) In General.--The Secretary, acting through the
     National Coordinator, shall establish a program in accordance
     with this section to facilitate and expand the electronic
     movement and use of health information among organizations
     according to nationally recognized standards.
       ``(b) Planning Grants.--The Secretary may award a grant to
     a State or qualified State-designated entity (as described in
     subsection (f)) that submits an application to the Secretary
     at such time, in such manner, and containing such information
     as the Secretary may specify, for the purpose of planning
     activities described in subsection (d).
       ``(c) Implementation Grants.--The Secretary may award a
     grant to a State or qualified State designated entity that--
       ``(1) has submitted, and the Secretary has approved, a plan
     described in subsection (e) (regardless of whether such plan
     was prepared using amounts awarded under subsection (b); and
       ``(2) submits an application at such time, in such manner,
     and containing such information as the Secretary may specify.
       ``(d) Use of Funds.--Amounts received under a grant under
     subsection (c) shall be used to conduct activities to
     facilitate and expand the electronic movement and use of
     health information among organizations according to
     nationally recognized standards through activities that
     include--
       ``(1) enhancing broad and varied participation in the
     authorized and secure nationwide electronic use and exchange
     of health information;
       ``(2) identifying State or local resources available
     towards a nationwide effort to promote health information
     technology;
       ``(3) complementing other Federal grants, programs, and
     efforts towards the promotion of health information
     technology;
       ``(4) providing technical assistance for the development
     and dissemination of solutions to barriers to the exchange of
     electronic health information;
       ``(5) promoting effective strategies to adopt and utilize
     health information technology in medically underserved
     communities;
       ``(6) assisting patients in utilizing health information
     technology;
       ``(7) encouraging clinicians to work with Health
     Information Technology Regional Extension Centers as
     described in section 3012, to the extent they are available
     and valuable;
       ``(8) supporting public health agencies' authorized use of
     and access to electronic health information;
       ``(9) promoting the use of electronic health records for
     quality improvement including through quality measures
     reporting; and
       ``(10) such other activities as the Secretary may specify.
       ``(e) Plan.--
       ``(1) In general.--A plan described in this subsection is a
     plan that describes the activities to be carried out by a
     State or by the qualified State-designated entity within such
     State to facilitate and expand the electronic movement and
     use of health information among organizations according to
     nationally recognized standards and implementation
     specifications.
       ``(2) Required elements.--A plan described in paragraph (1)
     shall--
       ``(A) be pursued in the public interest;
       ``(B) be consistent with the strategic plan developed by
     the National Coordinator, (and, as available) under section
     3001;
       ``(C) include a description of the ways the State or
     qualified State-designated entity will carry out the
     activities described in subsection (b); and
       ``(D) contain such elements as the Secretary may require.
       ``(f) Qualified State-Designated Entity.--For purposes of
     this section, to be a qualified State-designated entity, with
     respect to a State, an entity shall--
       ``(1) be designated by the State as eligible to receive
     awards under this section;
       ``(2) be a not-for-profit entity with broad stakeholder
     representation on its governing board;
       ``(3) demonstrate that one of its principal goals is to use
     information technology to improve health care quality and
     efficiency through the authorized and secure electronic
     exchange and use of health information;
       ``(4) adopt nondiscrimination and conflict of interest
     policies that demonstrate a commitment to open, fair, and
     nondiscriminatory participation by stakeholders; and
       ``(5) conform to such other requirements as the Secretary
     may establish.
       ``(g) Required Consultation.--In carrying out activities
     described in subsections (b) and (c), a State or qualified
     State-designated entity shall consult with and consider the
     recommendations of--
       ``(1) health care providers (including providers that
     provide services to low income and underserved populations);
       ``(2) health plans;
       ``(3) patient or consumer organizations that represent the
     population to be served;
       ``(4) health information technology vendors;
       ``(5) health care purchasers and employers;
       ``(6) public health agencies;
       ``(7) health professions schools, universities and
     colleges;
       ``(8) clinical researchers;
       ``(9) other users of health information technology such as
     the support and clerical staff of providers and others
     involved in the care and care coordination of patients; and

[[Page H692]]

       ``(10) such other entities, as may be determined
     appropriate by the Secretary.
       ``(h) Continuous Improvement.--The Secretary shall annually
     evaluate the activities conducted under this section and
     shall, in awarding grants under this section, implement the
     lessons learned from such evaluation in a manner so that
     awards made subsequent to each such evaluation are made in a
     manner that, in the determination of the Secretary, will lead
     towards the greatest improvement in quality of care, decrease
     in costs, and the most effective authorized and secure
     electronic exchange of health information.
       ``(i) Required Match.--
       ``(1) In general.--For a fiscal year (beginning with fiscal
     year 2011), the Secretary may not make a grant under this
     section to a State unless the State agrees to make available
     non-Federal contributions (which may include in-kind
     contributions) toward the costs of a grant awarded under
     subsection (c) in an amount equal to--
       ``(A) for fiscal year 2011, not less than $1 for each $10
     of Federal funds provided under the grant;
       ``(B) for fiscal year 2012, not less than $1 for each $7 of
     Federal funds provided under the grant; and
       ``(C) for fiscal year 2013 and each subsequent fiscal year,
     not less than $1 for each $3 of Federal funds provided under
     the grant.
       ``(2) Authority to require state match for fiscal years
     before fiscal year 2011.--For any fiscal year during the
     grant program under this section before fiscal year 2011, the
     Secretary may determine the extent to which there shall be
     required a non-Federal contribution from a State receiving a
     grant under this section.

     ``SEC. 3014. COMPETITIVE GRANTS TO STATES AND INDIAN TRIBES
                   FOR THE DEVELOPMENT OF LOAN PROGRAMS TO
                   FACILITATE THE WIDESPREAD ADOPTION OF CERTIFIED
                   EHR TECHNOLOGY.

       ``(a) In General.--The National Coordinator may award
     competitive grants to eligible entities for the establishment
     of programs for loans to health care providers to conduct the
     activities described in subsection (e).
       ``(b) Eligible Entity Defined.--For purposes of this
     subsection, the term `eligible entity' means a State or
     Indian tribe (as defined in the Indian Self-Determination and
     Education Assistance Act) that--
       ``(1) submits to the National Coordinator an application at
     such time, in such manner, and containing such information as
     the National Coordinator may require;
       ``(2) submits to the National Coordinator a strategic plan
     in accordance with subsection (d) and provides to the
     National Coordinator assurances that the entity will update
     such plan annually in accordance with such subsection;
       ``(3) provides assurances to the National Coordinator that
     the entity will establish a Loan Fund in accordance with
     subsection (c);
       ``(4) provides assurances to the National Coordinator that
     the entity will not provide a loan from the Loan Fund to a
     health care provider unless the provider agrees to--
       ``(A) submit reports on quality measures adopted by the
     Federal Government (by not later than 90 days after the date
     on which such measures are adopted), to--
       ``(i) the Administrator of the Centers for Medicare &
     Medicaid Services (or his or her designee), in the case of an
     entity participating in the Medicare program under title
     XVIII of the Social Security Act or the Medicaid program
     under title XIX of such Act; or
       ``(ii) the Secretary in the case of other entities;
       ``(B) demonstrate to the satisfaction of the Secretary
     (through criteria established by the Secretary) that any
     certified EHR technology purchased, improved, or otherwise
     financially supported under a loan under this section is used
     to exchange health information in a manner that, in
     accordance with law and standards (as adopted under section
     3004) applicable to the exchange of information, improves the
     quality of health care, such as promoting care coordination;
     and
       ``(C) comply with such other requirements as the entity or
     the Secretary may require;
       ``(D) include a plan on how health care providers involved
     intend to maintain and support the certified EHR technology
     over time;
       ``(E) include a plan on how the health care providers
     involved intend to maintain and support the certified EHR
     technology that would be purchased with such loan, including
     the type of resources expected to be involved and any such
     other information as the State or Indian Tribe, respectively,
     may require; and
       ``(5) agrees to provide matching funds in accordance with
     subsection (h).
       ``(c) Establishment of Fund.--For purposes of subsection
     (b)(3), an eligible entity shall establish a certified EHR
     technology loan fund (referred to in this subsection as a
     `Loan Fund') and comply with the other requirements contained
     in this section. A grant to an eligible entity under this
     section shall be deposited in the Loan Fund established by
     the eligible entity. No funds authorized by other provisions
     of this title to be used for other purposes specified in this
     title shall be deposited in any Loan Fund.
       ``(d) Strategic Plan.--
       ``(1) In general.--For purposes of subsection (b)(2), a
     strategic plan of an eligible entity under this subsection
     shall identify the intended uses of amounts available to the
     Loan Fund of such entity.
       ``(2) Contents.--A strategic plan under paragraph (1), with
     respect to a Loan Fund of an eligible entity, shall include
     for a year the following:
       ``(A) A list of the projects to be assisted through the
     Loan Fund during such year.
       ``(B) A description of the criteria and methods established
     for the distribution of funds from the Loan Fund during the
     year.
       ``(C) A description of the financial status of the Loan
     Fund as of the date of submission of the plan.
       ``(D) The short-term and long-term goals of the Loan Fund.
       ``(e) Use of Funds.--Amounts deposited in a Loan Fund,
     including loan repayments and interest earned on such
     amounts, shall be used only for awarding loans or loan
     guarantees, making reimbursements described in subsection
     (g)(4)(A), or as a source of reserve and security for
     leveraged loans, the proceeds of which are deposited in the
     Loan Fund established under subsection (c). Loans under this
     section may be used by a health care provider to--
       ``(1) facilitate the purchase of certified EHR technology;
       ``(2) enhance the utilization of certified EHR technology;
       ``(3) train personnel in the use of such technology; or
       ``(4) improve the secure electronic exchange of health
     information.
       ``(f) Types of Assistance.--Except as otherwise limited by
     applicable State law, amounts deposited into a Loan Fund
     under this section may only be used for the following:
       ``(1) To award loans that comply with the following:
       ``(A) The interest rate for each loan shall not exceed the
     market interest rate.
       ``(B) The principal and interest payments on each loan
     shall commence not later than 1 year after the date the loan
     was awarded, and each loan shall be fully amortized not later
     than 10 years after the date of the loan.
       ``(C) The Loan Fund shall be credited with all payments of
     principal and interest on each loan awarded from the Loan
     Fund.
       ``(2) To guarantee, or purchase insurance for, a local
     obligation (all of the proceeds of which finance a project
     eligible for assistance under this subsection) if the
     guarantee or purchase would improve credit market access or
     reduce the interest rate applicable to the obligation
     involved.
       ``(3) As a source of revenue or security for the payment of
     principal and interest on revenue or general obligation bonds
     issued by the eligible entity if the proceeds of the sale of
     the bonds will be deposited into the Loan Fund.
       ``(4) To earn interest on the amounts deposited into the
     Loan Fund.
       ``(5) To make reimbursements described in subsection
     (g)(4)(A).
       ``(g) Administration of Loan Funds.--
       ``(1) Combined financial administration.--An eligible
     entity may (as a convenience and to avoid unnecessary
     administrative costs) combine, in accordance with applicable
     State law, the financial administration of a Loan Fund
     established under this subsection with the financial
     administration of any other revolving fund established by the
     entity if otherwise not prohibited by the law under which the
     Loan Fund was established.
       ``(2) Cost of administering fund.--Each eligible entity may
     annually use not to exceed 4 percent of the funds provided to
     the entity under a grant under this section to pay the
     reasonable costs of the administration of the programs under
     this section, including the recovery of reasonable costs
     expended to establish a Loan Fund which are incurred after
     the date of the enactment of this title.
       ``(3) Guidance and regulations.--The National Coordinator
     shall publish guidance and promulgate regulations as may be
     necessary to carry out the provisions of this section,
     including--
       ``(A) provisions to ensure that each eligible entity
     commits and expends funds allotted to the entity under this
     section as efficiently as possible in accordance with this
     title and applicable State laws; and
       ``(B) guidance to prevent waste, fraud, and abuse.
       ``(4) Private sector contributions.--
       ``(A) In general.--A Loan Fund established under this
     section may accept contributions from private sector
     entities, except that such entities may not specify the
     recipient or recipients of any loan issued under this
     subsection. An eligible entity may agree to reimburse a
     private sector entity for any contribution made under this
     subparagraph, except that the amount of such reimbursement
     may not be greater than the principal amount of the
     contribution made.
       ``(B) Availability of information.--An eligible entity
     shall make publicly available the identity of, and amount
     contributed by, any private sector entity under subparagraph
     (A) and may issue letters of commendation or make other
     awards (that have no financial value) to any such entity.
       ``(h) Matching Requirements.--
       ``(1) In general.--The National Coordinator may not make a
     grant under subsection (a) to an eligible entity unless the
     entity agrees to make available (directly or through
     donations from public or private entities) non-Federal
     contributions in cash to the costs of carrying out the
     activities for which the grant is awarded in an amount equal
     to not less than $1 for each $5 of Federal funds provided
     under the grant.
       ``(2) Determination of amount of non-federal
     contribution.--In determining the amount of non-Federal
     contributions that an eligible entity has provided pursuant
     to subparagraph (A), the National Coordinator may

[[Page H693]]

     not include any amounts provided to the entity by the Federal
     Government.
       ``(i) Effective Date.--The Secretary may not make an award
     under this section prior to January 1, 2010.

     ``SEC. 3015. DEMONSTRATION PROGRAM TO INTEGRATE INFORMATION
                   TECHNOLOGY INTO CLINICAL EDUCATION.

       ``(a) In General.--The Secretary may award grants under
     this section to carry out demonstration projects to develop
     academic curricula integrating certified EHR technology in
     the clinical education of health professionals. Such awards
     shall be made on a competitive basis and pursuant to peer
     review.
       ``(b) Eligibility.--To be eligible to receive a grant under
     subsection (a), an entity shall--
       ``(1) submit to the Secretary an application at such time,
     in such manner, and containing such information as the
     Secretary may require;
       ``(2) submit to the Secretary a strategic plan for
     integrating certified EHR technology in the clinical
     education of health professionals to reduce medical errors
     and enhance health care quality;
       ``(3) be--
       ``(A) a school of medicine, osteopathic medicine,
     dentistry, or pharmacy, a graduate program in behavioral or
     mental health, or any other graduate health professions
     school;
       ``(B) a graduate school of nursing or physician assistant
     studies;
       ``(C) a consortium of two or more schools described in
     subparagraph (A) or (B); or
       ``(D) an institution with a graduate medical education
     program in medicine, osteopathic medicine, dentistry,
     pharmacy, nursing, or physician assistance studies;
       ``(4) provide for the collection of data regarding the
     effectiveness of the demonstration project to be funded under
     the grant in improving the safety of patients, the efficiency
     of health care delivery, and in increasing the likelihood
     that graduates of the grantee will adopt and incorporate
     certified EHR technology, in the delivery of health care
     services; and
       ``(5) provide matching funds in accordance with subsection
     (d).
       ``(c) Use of Funds.--
       ``(1) In general.--With respect to a grant under subsection
     (a), an eligible entity shall--
       ``(A) use grant funds in collaboration with 2 or more
     disciplines; and
       ``(B) use grant funds to integrate certified EHR technology
     into community-based clinical education.
       ``(2) Limitation.--An eligible entity shall not use amounts
     received under a grant under subsection (a) to purchase
     hardware, software, or services.
       ``(d) Financial Support.--The Secretary may not provide
     more than 50 percent of the costs of any activity for which
     assistance is provided under subsection (a), except in an
     instance of national economic conditions which would render
     the cost-share requirement under this subsection detrimental
     to the program and upon notification to Congress as to the
     justification to waive the cost-share requirement.
       ``(e) Evaluation.--The Secretary shall take such action as
     may be necessary to evaluate the projects funded under this
     section and publish, make available, and disseminate the
     results of such evaluations on as wide a basis as is
     practicable.
       ``(f) Reports.--Not later than 1 year after the date of
     enactment of this title, and annually thereafter, the
     Secretary shall submit to the Committee on Health, Education,
     Labor, and Pensions and the Committee on Finance of the
     Senate, and the Committee on Energy and Commerce of the House
     of Representatives a report that--
       ``(1) describes the specific projects established under
     this section; and
       ``(2) contains recommendations for Congress based on the
     evaluation conducted under subsection (e).

     ``SEC. 3016. INFORMATION TECHNOLOGY PROFESSIONALS ON HEALTH
                   CARE.

       ``(a) In General.--The Secretary, in consultation with the
     Director of the National Science Foundation, shall provide
     assistance to institutions of higher education (or consortia
     thereof) to establish or expand medical health informatics
     education programs, including certification, undergraduate,
     and masters degree programs, for both health care and
     information technology students to ensure the rapid and
     effective utilization and development of health information
     technologies (in the United States health care
     infrastructure).
       ``(b) Activities.--Activities for which assistance may be
     provided under subsection (a) may include the following:
       ``(1) Developing and revising curricula in medical health
     informatics and related disciplines.
       ``(2) Recruiting and retaining students to the program
     involved.
       ``(3) Acquiring equipment necessary for student instruction
     in these programs, including the installation of testbed
     networks for student use.
       ``(4) Establishing or enhancing bridge programs in the
     health informatics fields between community colleges and
     universities.
       ``(c) Priority.--In providing assistance under subsection
     (a), the Secretary shall give preference to the following:
       ``(1) Existing education and training programs.
       ``(2) Programs designed to be completed in less than six
     months.
       ``(d) Financial Support.--The Secretary may not provide
     more than 50 percent of the costs of any activity for which
     assistance is provided under subsection (a), except in an
     instance of national economic conditions which would render
     the cost-share requirement under this subsection detrimental
     to the program and upon notification to Congress as to the
     justification to waive the cost-share requirement.

     ``SEC. 3017. GENERAL GRANT AND LOAN PROVISIONS.

       ``(a) Reports.--The Secretary may require that an entity
     receiving assistance under this subtitle shall submit to the
     Secretary, not later than the date that is 1 year after the
     date of receipt of such assistance, a report that includes--
       ``(1) an analysis of the effectiveness of the activities
     for which the entity receives such assistance, as compared to
     the goals for such activities; and
       ``(2) an analysis of the impact of the project on health
     care quality and safety.
       ``(b) Requirement to Improve Quality of Care and Decrease
     in Costs.--The National Coordinator shall annually evaluate
     the activities conducted under this subtitle and shall, in
     awarding grants, implement the lessons learned from such
     evaluation in a manner so that awards made subsequent to each
     such evaluation are made in a manner that, in the
     determination of the National Coordinator, will result in the
     greatest improvement in the quality and efficiency of health
     care.

     ``SEC. 3018. AUTHORIZATION FOR APPROPRIATIONS.

       ``For the purposes of carrying out this subtitle, there is
     authorized to be appropriated such sums as may be necessary
     for each of the fiscal years 2009 through 2013. Amounts so
     appropriated shall remain available until expended.''.

                       PART II--MEDICARE PROGRAM

     SEC. 4311. INCENTIVES FOR ELIGIBLE PROFESSIONALS.

       (a) Incentive Payments.--Section 1848 of the Social
     Security Act (42 U.S.C. 1395w-4) is amended by adding at the
     end the following new subsection:
       ``(o) Incentives for Adoption and Meaningful Use of
     Certified EHR Technology.--
       ``(1) Incentive payments.--
       ``(A) In general.--Subject to the succeeding subparagraphs
     of this paragraph, with respect to covered professional
     services furnished by an eligible professional during a
     payment year (as defined in subparagraph (E)), if the
     eligible professional is a meaningful EHR user (as determined
     under paragraph (2)) for the reporting period with respect to
     such year, in addition to the amount otherwise paid under
     this part, there also shall be paid to the eligible
     professional (or to an employer or facility in the cases
     described in clause (A) of section 1842(b)(6)), from the
     Federal Supplementary Medical Insurance Trust Fund
     established under section 1841 an amount equal to 75 percent
     of the Secretary's estimate (based on claims submitted not
     later than 2 months after the end of the payment year) of the
     allowed charges under this part for all such covered
     professional services furnished by the eligible professional
     during such year.
       ``(B) Limitations on amounts of incentive payments.--
       ``(i) In general.--In no case shall the amount of the
     incentive payment provided under this paragraph for an
     eligible professional for a payment year exceed the
     applicable amount specified under this subparagraph with
     respect to such eligible professional and such year.
       ``(ii) Amount.--Subject to clause (iii), the applicable
     amount specified in this subparagraph for an eligible
     professional is as follows:

       ``(I) For the first payment year for such professional,
     $15,000.
       ``(II) For the second payment year for such professional,
     $12,000.
       ``(III) For the third payment year for such professional,
     $8,000.
       ``(IV) For the fourth payment year for such professional,
     $4,000.
       ``(V) For the fifth payment year for such professional,
     $2,000.
       ``(VI) For any succeeding payment year for such
     professional, $0.

       ``(iii) Phase down for eligible professionals first
     adopting ehr after 2013.--If the first payment year for an
     eligible professional is after 2013, then the amount
     specified in this subparagraph for a payment year for such
     professional is the same as the amount specified in clause
     (ii) for such payment year for an eligible professional whose
     first payment year is 2013. If the first payment year for an
     eligible professional is after 2015 then the applicable
     amount specified in this subparagraph for such professional
     for such year and any subsequent year shall be $0.
       ``(C) Non-application to hospital-based eligible
     professionals.--
       ``(i) In general.--No incentive payment may be made under
     this paragraph in the case of a hospital-based eligible
     professional.
       ``(ii) Hospital-based eligible professional.--For purposes
     of clause (i), the term `hospital-based eligible
     professional' means, with respect to covered professional
     services furnished by an eligible professional during the
     reporting period for a payment year, an eligible
     professional, such as a pathologist, anesthesiologist, or
     emergency physician, who furnishes substantially all of such
     services in a hospital setting (whether inpatient

[[Page H694]]

     or outpatient) and through the use of the facilities and
     equipment, including computer equipment, of the hospital.
       ``(D) Payment.--
       ``(i) Form of payment.--The payment under this paragraph
     may be in the form of a single consolidated payment or in the
     form of such periodic installments as the Secretary may
     specify.
       ``(ii) Coordination of application of limitation for
     professionals in different practices.--In the case of an
     eligible professional furnishing covered professional
     services in more than one practice (as specified by the
     Secretary), the Secretary shall establish rules to coordinate
     the incentive payments, including the application of the
     limitation on amounts of such incentive payments under this
     paragraph, among such practices.
       ``(iii) Coordination with medicaid.--The Secretary shall
     seek, to the maximum extent practicable, to avoid duplicative
     requirements from Federal and State Governments to
     demonstrate meaningful use of certified EHR technology under
     this title and title XIX. The Secretary may also adjust the
     reporting periods under such title and such subsections in
     order to carry out this clause.
       ``(E) Payment year defined.--
       ``(i) In general.--For purposes of this subsection, the
     term `payment year' means a year beginning with 2011.
       ``(ii) First, second, etc. payment year.--The term `first
     payment year' means, with respect to covered professional
     services furnished by an eligible professional, the first
     year for which an incentive payment is made for such services
     under this subsection. The terms `second payment year',
     `third payment year', `fourth payment year', and `fifth
     payment year' mean, with respect to covered professional
     services furnished by such eligible professional, each
     successive year immediately following the first payment year
     for such professional.
       ``(2) Meaningful ehr user.--
       ``(A) In general.--For purposes of paragraph (1), an
     eligible professional shall be treated as a meaningful EHR
     user for a reporting period for a payment year (or, for
     purposes of subsection (a)(7), for a reporting period under
     such subsection for a year) if each of the following
     requirements is met:
       ``(i) Meaningful use of certified ehr technology.--The
     eligible professional demonstrates to the satisfaction of the
     Secretary, in accordance with subparagraph (C)(i), that
     during such period the professional is using certified EHR
     technology in a meaningful manner, which shall include the
     use of electronic prescribing as determined to be appropriate
     by the Secretary.
       ``(ii) Information exchange.--The eligible professional
     demonstrates to the satisfaction of the Secretary, in
     accordance with subparagraph (C)(i), that during such period
     such certified EHR technology is connected in a manner that
     provides, in accordance with law and standards applicable to
     the exchange of information, for the electronic exchange of
     health information to improve the quality of health care,
     such as promoting care coordination.
       ``(iii) Reporting on measures using ehr.--Subject to
     subparagraph (B)(ii) and using such certified EHR technology,
     the eligible professional submits information for such
     period, in a form and manner specified by the Secretary, on
     such clinical quality measures and such other measures as
     selected by the Secretary under subparagraph (B)(i).

     The Secretary may provide for the use of alternative means
     for meeting the requirements of clauses (i), (ii), and (iii)
     in the case of an eligible professional furnishing covered
     professional services in a group practice (as defined by the
     Secretary). The Secretary shall seek to improve the use of
     electronic health records and health care quality over time
     by requiring more stringent measures of meaningful use
     selected under this paragraph.
       ``(B) Reporting on measures.--
       ``(i) Selection.--The Secretary shall select measures for
     purposes of subparagraph (A)(iii) but only consistent with
     the following:

       ``(I) The Secretary shall provide preference to clinical
     quality measures that have been endorsed by the entity with a
     contract with the Secretary under section 1890(a).
       ``(II) Prior to any measure being selected under this
     subparagraph, the Secretary shall publish in the Federal
     Register such measure and provide for a period of public
     comment on such measure.

       ``(ii) Limitation.--The Secretary may not require the
     electronic reporting of information on clinical quality
     measures under subparagraph (A)(iii) unless the Secretary has
     the capacity to accept the information electronically, which
     may be on a pilot basis.
       ``(iii) Coordination of reporting of information.--In
     selecting such measures, and in establishing the form and
     manner for reporting measures under subparagraph (A)(iii),
     the Secretary shall seek to avoid redundant or duplicative
     reporting otherwise required, including reporting under
     subsection (k)(2)(C).
       ``(C) Demonstration of meaningful use of certified ehr
     technology and information exchange.--
       ``(i) In general.--A professional may satisfy the
     demonstration requirement of clauses (i) and (ii) of
     subparagraph (A) through means specified by the Secretary,
     which may include--

       ``(I) an attestation;
       ``(II) the submission of claims with appropriate coding
     (such as a code indicating that a patient encounter was
     documented using certified EHR technology);
       ``(III) a survey response;
       ``(IV) reporting under subparagraph (A)(iii); and
       ``(V) other means specified by the Secretary.

       ``(ii) Use of part d data.--Notwithstanding sections 1860D-
     15(d)(2)(B) and 1860D-15(f)(2), the Secretary may use data
     regarding drug claims submitted for purposes of section
     1860D-15 that are necessary for purposes of subparagraph (A).
       ``(3) Application.--
       ``(A) Physician reporting system rules.--Paragraphs (5),
     (6), and (8) of subsection (k) shall apply for purposes of
     this subsection in the same manner as they apply for purposes
     of such subsection.
       ``(B) Coordination with other payments.--The provisions of
     this subsection shall not be taken into account in applying
     the provisions of subsection (m) of this section and of
     section 1833(m) and any payment under such provisions shall
     not be taken into account in computing allowable charges
     under this subsection.
       ``(C) Limitations on review.--There shall be no
     administrative or judicial review under section 1869, section
     1878, or otherwise of the determination of any incentive
     payment under this subsection and the payment adjustment
     under subsection (a)(7), including the determination of a
     meaningful EHR user under paragraph (2), a limitation under
     paragraph (1)(B), and the exception under subsection
     (a)(7)(B).
       ``(D) Posting on website.--The Secretary shall post on the
     Internet website of the Centers for Medicare & Medicaid
     Services, in an easily understandable format, a list of the
     names, business addresses, and business phone numbers of the
     eligible professionals who are meaningful EHR users and, as
     determined appropriate by the Secretary, of group practices
     receiving incentive payments under paragraph (1).
       ``(4) Certified ehr technology defined.--For purposes of
     this section, the term `certified EHR technology' means a
     qualified electronic health record (as defined in 3000(13) of
     the Public Health Service Act) that is certified pursuant to
     section 3001(c)(5) of such Act as meeting standards adopted
     under section 3004 of such Act that are applicable to the
     type of record involved (as determined by the Secretary, such
     as an ambulatory electronic health record for office-based
     physicians or an inpatient hospital electronic health record
     for hospitals).
       ``(5) Definitions.--For purposes of this subsection:
       ``(A) Covered professional services.--The term `covered
     professional services' has the meaning given such term in
     subsection (k)(3).
       ``(B) Eligible professional.--The term `eligible
     professional' means a physician, as defined in section
     1861(r).
       ``(C) Reporting period.--The term `reporting period' means
     any period (or periods), with respect to a payment year, as
     specified by the Secretary.''.
       (b) Incentive Payment Adjustment.--Section 1848(a) of the
     Social Security Act (42 U.S.C. 1395w-4(a)) is amended by
     adding at the end the following new paragraph:
       ``(7) Incentives for meaningful use of certified ehr
     technology.--
       ``(A) Adjustment.--
       ``(i) In general.--Subject to subparagraphs (B) and (D),
     with respect to covered professional services furnished by an
     eligible professional during 2016 or any subsequent payment
     year, if the eligible professional is not a meaningful EHR
     user (as determined under subsection (o)(2)) for a reporting
     period for the year, the fee schedule amount for such
     services furnished by such professional during the year
     (including the fee schedule amount for purposes of
     determining a payment based on such amount) shall be equal to
     the applicable percent of the fee schedule amount that would
     otherwise apply to such services under this subsection
     (determined after application of paragraph (3) but without
     regard to this paragraph).
       ``(ii) Applicable percent.--Subject to clause (iii), for
     purposes of clause (i), the term `applicable percent' means--

       ``(I) for 2016, 99 percent;
       ``(II) for 2017, 98 percent; and
       ``(III) for 2018 and each subsequent year, 97 percent.

       ``(iii) Authority to decrease applicable percentage for
     2019 and subsequent years.--For 2019 and each subsequent
     year, if the Secretary finds that the proportion of eligible
     professionals who are meaningful EHR users (as determined
     under subsection (o)(2)) is less than 75 percent, the
     applicable percent shall be decreased by 1 percentage point
     from the applicable percent in the preceding year, but in no
     case shall the applicable percent be less than 95 percent.
       ``(B) Significant hardship exception.--The Secretary may,
     on a case-by-case basis, exempt an eligible professional from
     the application of the payment adjustment under subparagraph
     (A) if the Secretary determines, subject to annual renewal,
     that compliance with the requirement for being a meaningful
     EHR user would result in a significant hardship, such as in
     the case of an eligible professional who practices in a rural
     area without sufficient Internet access. In no case may an
     eligible professional be granted an exemption under this
     subparagraph for more than 5 years.
       ``(C) Application of physician reporting system rules.--
     Paragraphs (5), (6), and (8) of

[[Page H695]]

     subsection (k) shall apply for purposes of this paragraph in
     the same manner as they apply for purposes of such
     subsection.
       ``(D) Non-application to hospital-based eligible
     professionals.--No payment adjustment may be made under
     subparagraph (A) in the case of hospital-based eligible
     professionals (as defined in subsection (o)(1)(C)(ii)).
       ``(E) Definitions.--For purposes of this paragraph:
       ``(i) Covered professional services.--The term `covered
     professional services' has the meaning given such term in
     subsection (k)(3).
       ``(ii) Eligible professional.--The term `eligible
     professional' means a physician, as defined in section
     1861(r).
       ``(iii) Reporting period.--The term `reporting period'
     means, with respect to a year, a period specified by the
     Secretary.''.
       (c) Application to Certain HMO-Affiliated Eligible
     Professionals.--Section 1853 of the Social Security Act (42
     U.S.C. 1395w-23) is amended by adding at the end the
     following new subsection:
       ``(l) Application of Eligible Professional Incentives for
     Certain MA Organizations for Adoption and Meaningful Use of
     Certified EHR Technology.--
       ``(1) In general.--Subject to paragraphs (3) and (4), in
     the case of a qualifying MA organization, the provisions of
     sections 1848(o) and 1848(a)(7) shall apply with respect to
     eligible professionals described in paragraph (2) of the
     organization who the organization attests under paragraph (6)
     to be meaningful EHR users in a similar manner as they apply
     to eligible professionals under such sections. Incentive
     payments under paragraph (3) shall be made to and payment
     adjustments under paragraph (4) shall apply to such
     qualifying organizations.
       ``(2) Eligible professional described.--With respect to a
     qualifying MA organization, an eligible professional
     described in this paragraph is an eligible professional (as
     defined for purposes of section 1848(o)) who--
       ``(A)(i) is employed by the organization; or
       ``(ii)(I) is employed by, or is a partner of, an entity
     that through contract with the organization furnishes at
     least 80 percent of the entity's patient care services to
     enrollees of such organization; and
       ``(II) furnishes at least 80 percent of the professional
     services of the eligible professional to enrollees of the
     organization; and
       ``(B) furnishes, on average, at least 20 hours per week of
     patient care services.
       ``(3) Eligible professional incentive payments.--
       ``(A) In general.--In applying section 1848(o) under
     paragraph (1), instead of the additional payment amount under
     section 1848(o)(1)(A) and subject to subparagraph (B), the
     Secretary may substitute an amount determined by the
     Secretary to the extent feasible and practical to be similar
     to the estimated amount in the aggregate that would be
     payable if payment for services furnished by such
     professionals was payable under part B instead of this part.
       ``(B) Avoiding duplication of payments.--
       ``(i) In general.--If an eligible professional described in
     paragraph (2) is eligible for the maximum incentive payment
     under section 1848(o)(1)(A) for the same payment period, the
     payment incentive shall be made only under such section and
     not under this subsection.
       ``(ii) Methods.--In the case of an eligible professional
     described in paragraph (2) who is eligible for an incentive
     payment under section 1848(o)(1)(A) but is not described in
     clause (i) for the same payment period, the Secretary shall
     develop a process--

       ``(I) to ensure that duplicate payments are not made with
     respect to an eligible professional both under this
     subsection and under section 1848(o)(1)(A); and
       ``(II) to collect data from Medicare Advantage
     organizations to ensure against such duplicate payments.

       ``(C) Fixed schedule for application of limitation on
     incentive payments for all eligible professionals.--In
     applying section 1848(o)(1)(B)(ii) under subparagraph (A), in
     accordance with rules specified by the Secretary, a
     qualifying MA organization shall specify a year (not earlier
     than 2011) that shall be treated as the first payment year
     for all eligible professionals with respect to such
     organization.
       ``(4) Payment adjustment.--
       ``(A) In general.--In applying section 1848(a)(7) under
     paragraph (1), instead of the payment adjustment being an
     applicable percent of the fee schedule amount for a year
     under such section, subject to subparagraph (D), the payment
     adjustment under paragraph (1) shall be equal to the percent
     specified in subparagraph (B) for such year of the payment
     amount otherwise provided under this section for such year.
       ``(B) Specified percent.--The percent specified under this
     subparagraph for a year is 100 percent minus a number of
     percentage points equal to the product of--
       ``(i) the number of percentage points by which the
     applicable percent (under section 1848(a)(7)(A)(ii)) for the
     year is less than 100 percent; and
       ``(ii) the Medicare physician expenditure proportion
     specified in subparagraph (C) for the year.
       ``(C) Medicare physician expenditure proportion.--The
     Medicare physician expenditure proportion under this
     subparagraph for a year is the Secretary's estimate of the
     proportion, of the expenditures under parts A and B that are
     not attributable to this part, that are attributable to
     expenditures for physicians' services.
       ``(D) Application of payment adjustment.--In the case that
     a qualifying MA organization attests that not all eligible
     professionals are meaningful EHR users with respect to a
     year, the Secretary shall apply the payment adjustment under
     this paragraph based on the proportion of such eligible
     professionals that are not meaningful EHR users for such
     year.
       ``(5) Qualifying ma organization defined.--In this
     subsection and subsection (m), the term `qualifying MA
     organization' means a Medicare Advantage organization that is
     organized as a health maintenance organization (as defined in
     section 2791(b)(3) of the Public Health Service Act).
       ``(6) Meaningful ehr user attestation.--For purposes of
     this subsection and subsection (m), a qualifying MA
     organization shall submit an attestation, in a form and
     manner specified by the Secretary which may include the
     submission of such attestation as part of submission of the
     initial bid under section 1854(a)(1)(A)(iv), identifying--
       ``(A) whether each eligible professional described in
     paragraph (2), with respect to such organization is a
     meaningful EHR user (as defined in section 1848(o)(2)) for a
     year specified by the Secretary; and
       ``(B) whether each eligible hospital described in
     subsection (m)(1), with respect to such organization, is a
     meaningful EHR user (as defined in section 1886(n)(3)) for an
     applicable period specified by the Secretary.''.
       (d) Conforming Amendments.--Section 1853 of the Social
     Security Act (42 U.S.C. 1395w-23) is amended--
       (1) in subsection (a)(1)(A), by striking ``and (i)'' and
     inserting ``(i), and (l)'';
       (2) in subsection (c)--
       (A) in paragraph (1)(D)(i), by striking ``section 1886(h)''
     and inserting ``sections 1848(o) and 1886(h)''; and
       (B) in paragraph (6)(A), by inserting after ``under part
     B,'' the following: ``excluding expenditures attributable to
     subsections (a)(7) and (o) of section 1848,''; and
       (3) in subsection (f), by inserting ``and for payments
     under subsection (l)'' after ``with the organization''.
       (e) Conforming Amendments to e-Prescribing.--
       (1) Section 1848(a)(5)(A) of the Social Security Act (42
     U.S.C. 1395w-4(a)(5)(A)) is amended--
       (A) in clause (i), by striking ``or any subsequent year''
     and inserting ``, 2013, 2014, or 2015''; and
       (B) in clause (ii), by striking ``and each subsequent
     year'' and inserting ``and 2015''.
       (2) Section 1848(m)(2) of such Act (42 U.S.C. 1395w-
     4(m)(2)) is amended--
       (A) in subparagraph (A), by striking ``For 2009'' and
     inserting ``Subject to subparagraph (D), for 2009''; and
       (B) by adding at the end the following new subparagraph:
       ``(D) Limitation with respect to ehr incentive payments.--
     The provisions of this paragraph shall not apply to an
     eligible professional (or, in the case of a group practice
     under paragraph (3)(C), to the group practice) if, for the
     reporting period the eligible professional (or group
     practice) receives an incentive payment under subsection
     (o)(1)(A) with respect to a certified EHR technology (as
     defined in subsection (o)(4)) that has the capability of
     electronic prescribing.''.

     SEC. 4312. INCENTIVES FOR HOSPITALS.

       (a) Incentive Payment.--Section 1886 of the Social Security
     Act (42 U.S.C. 1395ww) is amended by adding at the end the
     following new subsection:
       ``(n) Incentives for Adoption and Meaningful Use of
     Certified EHR Technology.--
       ``(1) In general.--Subject to the succeeding provisions of
     this subsection, with respect to inpatient hospital services
     furnished by an eligible hospital during a payment year (as
     defined in paragraph (2)(G)), if the eligible hospital is a
     meaningful EHR user (as determined under paragraph (3)) for
     the reporting period with respect to such year, in addition
     to the amount otherwise paid under this section, there also
     shall be paid to the eligible hospital, from the Federal
     Hospital Insurance Trust Fund established under section 1817,
     an amount equal to the applicable amount specified in
     paragraph (2)(A) for the hospital for such payment year.
       ``(2) Payment amount.--
       ``(A) In general.--Subject to the succeeding subparagraphs
     of this paragraph, the applicable amount specified in this
     subparagraph for an eligible hospital for a payment year is
     equal to the product of the following:
       ``(i) Initial amount.--The sum of--

       ``(I) the base amount specified in subparagraph (B); plus
       ``(II) the discharge related amount specified in
     subparagraph (C) for a 12-month period selected by the
     Secretary with respect to such payment year.

       ``(ii) Medicare share.--The Medicare share as specified in
     subparagraph (D) for the hospital for a period selected by
     the Secretary with respect to such payment year.
       ``(iii) Transition factor.--The transition factor specified
     in subparagraph (E) for the hospital for the payment year.
       ``(B) Base amount.--The base amount specified in this
     subparagraph is $2,000,000.
       ``(C) Discharge related amount.--The discharge related
     amount specified in this subparagraph for a 12-month period
     selected by the Secretary shall be determined as the sum of
     the amount, based upon total discharges (regardless of any
     source of payment) for the period, for each discharge up to
     the 23,000th discharge as follows:

[[Page H696]]

       ``(i) For the 1,150th through the 23,000th discharge, $200.
       ``(ii) For any discharge greater than the 23,000th, $0.
       ``(D) Medicare share.--The Medicare share specified under
     this subparagraph for a hospital for a period selected by the
     Secretary for a payment year is equal to the fraction--
       ``(i) the numerator of which is the sum (for such period
     and with respect to the hospital) of--

       ``(I) the number of inpatient-bed-days (as established by
     the Secretary) which are attributable to individuals with
     respect to whom payment may be made under part A; and
       ``(II) the number of inpatient-bed-days (as so established)
     which are attributable to individuals who are enrolled with a
     Medicare Advantage organization under part C; and

       ``(ii) the denominator of which is the product of--

       ``(I) the total number of inpatient-bed-days with respect
     to the hospital during such period; and
       ``(II) the total amount of the hospital's charges during
     such period, not including any charges that are attributable
     to charity care (as such term is used for purposes of
     hospital cost reporting under this title), divided by the
     total amount of the hospital's charges during such period.

     Insofar as the Secretary determines that data are not
     available on charity care necessary to calculate the portion
     of the formula specified in clause (ii)(II), the Secretary
     shall use data on uncompensated care and may adjust such data
     so as to be an appropriate proxy for charity care including a
     downward adjustment to eliminate bad debt data from
     uncompensated care data. In the absence of the data
     necessary, with respect to a hospital, for the Secretary to
     compute the amount described in clause (ii)(II), the amount
     under such clause shall be deemed to be 1. In the absence of
     data, with respect to a hospital, necessary to compute the
     amount described in clause (i)(II), the amount under such
     clause shall be deemed to be 0.
       ``(E) Transition factor specified.--
       ``(i) In general.--Subject to clause (ii), the transition
     factor specified in this subparagraph for an eligible
     hospital for a payment year is as follows:

       ``(I) For the first payment year for such hospital, 1.
       ``(II) For the second payment year for such hospital, \3/
     4\.
       ``(III) For the third payment year for such hospital, \1/
     2\.
       ``(IV) For the fourth payment year for such hospital, \1/
     4\.
       ``(V) For any succeeding payment year for such hospital, 0.

       ``(ii) Phase down for eligible hospitals first adopting ehr
     after 2013.--If the first payment year for an eligible
     hospital is after 2013, then the transition factor specified
     in this subparagraph for a payment year for such hospital is
     the same as the amount specified in clause (i) for such
     payment year for an eligible hospital for which the first
     payment year is 2013. If the first payment year for an
     eligible hospital is after 2015 then the transition factor
     specified in this subparagraph for such hospital and for such
     year and any subsequent year shall be 0.
       ``(F) Form of payment.--The payment under this subsection
     for a payment year may be in the form of a single
     consolidated payment or in the form of such periodic
     installments as the Secretary may specify.
       ``(G) Payment year defined.--
       ``(i) In general.--For purposes of this subsection, the
     term `payment year' means a fiscal year beginning with fiscal
     year 2011.
       ``(ii) First, second, etc. payment year.--The term `first
     payment year' means, with respect to inpatient hospital
     services furnished by an eligible hospital, the first fiscal
     year for which an incentive payment is made for such services
     under this subsection. The terms `second payment year',
     `third payment year', and `fourth payment year' mean, with
     respect to an eligible hospital, each successive year
     immediately following the first payment year for that
     hospital.
       ``(3) Meaningful ehr user.--
       ``(A) In general.--For purposes of paragraph (1), an
     eligible hospital shall be treated as a meaningful EHR user
     for a reporting period for a payment year (or, for purposes
     of subsection (b)(3)(B)(ix), for a reporting period under
     such subsection for a fiscal year) if each of the following
     requirements are met:
       ``(i) Meaningful use of certified ehr technology.--The
     eligible hospital demonstrates to the satisfaction of the
     Secretary, in accordance with subparagraph (C)(i), that
     during such period the hospital is using certified EHR
     technology in a meaningful manner.
       ``(ii) Information exchange.--The eligible hospital
     demonstrates to the satisfaction of the Secretary, in
     accordance with subparagraph (C)(i), that during such period
     such certified EHR technology is connected in a manner that
     provides, in accordance with law and standards applicable to
     the exchange of information, for the electronic exchange of
     health information to improve the quality of health care,
     such as promoting care coordination.
       ``(iii) Reporting on measures using ehr.--Subject to
     subparagraph (B)(ii) and using such certified EHR technology,
     the eligible hospital submits information for such period, in
     a form and manner specified by the Secretary, on such
     clinical quality measures and such other measures as selected
     by the Secretary under subparagraph (B)(i).

     The Secretary shall seek to improve the use of electronic
     health records and health care quality over time by requiring
     more stringent measures of meaningful use selected under this
     paragraph.
       ``(B) Reporting on measures.--
       ``(i) Selection.--The Secretary shall select measures for
     purposes of subparagraph (A)(iii) but only consistent with
     the following:

       ``(I) The Secretary shall provide preference to clinical
     quality measures that have been selected for purposes of
     applying subsection (b)(3)(B)(viii) or that have been
     endorsed by the entity with a contract with the Secretary
     under section 1890(a).
       ``(II) Prior to any measure (other than a clinical quality
     measure that has been selected for purposes of applying
     subsection (b)(3)(B)(viii)) being selected under this
     subparagraph, the Secretary shall publish in the Federal
     Register such measure and provide for a period of public
     comment on such measure.

       ``(ii) Limitations.--The Secretary may not require the
     electronic reporting of information on clinical quality
     measures under subparagraph (A)(iii) unless the Secretary has
     the capacity to accept the information electronically, which
     may be on a pilot basis.
       ``(iii) Coordination of reporting of information.--In
     selecting such measures, and in establishing the form and
     manner for reporting measures under subparagraph (A)(iii),
     the Secretary shall seek to avoid redundant or duplicative
     reporting with reporting otherwise required, including
     reporting under subsection (b)(3)(B)(viii).
       ``(C) Demonstration of meaningful use of certified ehr
     technology and information exchange.--
       ``(i) In general.--A hospital may satisfy the demonstration
     requirement of clauses (i) and (ii) of subparagraph (A)
     through means specified by the Secretary, which may include--

       ``(I) an attestation;
       ``(II) the submission of claims with appropriate coding
     (such as a code indicating that inpatient care was documented
     using certified EHR technology);
       ``(III) a survey response;
       ``(IV) reporting under subparagraph (A)(iii); and
       ``(V) other means specified by the Secretary.

       ``(ii) Use of part d data.--Notwithstanding sections 1860D-
     15(d)(2)(B) and 1860D-15(f)(2), the Secretary may use data
     regarding drug claims submitted for purposes of section
     1860D-15 that are necessary for purposes of subparagraph (A).
       ``(4) Application.--
       ``(A) Limitations on review.--There shall be no
     administrative or judicial review under section 1869, section
     1878, or otherwise of the determination of any incentive
     payment under this subsection and the payment adjustment
     under subsection (b)(3)(B)(ix), including the determination
     of a meaningful EHR user under paragraph (3), determination
     of measures applicable to services furnished by eligible
     hospitals under this subsection, and the exception under
     subsection (b)(3)(B)(ix)(II).
       ``(B) Posting on website.--The Secretary shall post on the
     Internet website of the Centers for Medicare & Medicaid
     Services, in an easily understandable format, a list of the
     names of the eligible hospitals that are meaningful EHR users
     under this subsection or subsection (b)(3)(B)(ix) and other
     relevant data as determined appropriate by the Secretary. The
     Secretary shall ensure that a hospital has the opportunity to
     review the other relevant data that are to be made public
     with respect to the hospital prior to such data being made
     public.
       ``(5) Certified ehr technology defined.--The term
     `certified EHR technology' has the meaning given such term in
     section 1848(o)(4).
       ``(6) Definitions.--For purposes of this subsection:
       ``(A) Eligible hospital.--The term `eligible hospital'
     means a subsection (d) hospital.
       ``(B) Reporting period.--The term `reporting period' means
     any period (or periods), with respect to a payment year, as
     specified by the Secretary.''.
       (b) Incentive Market Basket Adjustment.--Section
     1886(b)(3)(B) of the Social Security Act (42 U.S.C.
     1395ww(b)(3)(B)) is amended--
       (1) in clause (viii)(I), by inserting ``(or, beginning with
     fiscal year 2016, by one-quarter)'' after ``2.0 percentage
     points''; and
       (2) by adding at the end the following new clause:
       ``(ix)(I) For purposes of clause (i) for fiscal year 2016
     and each subsequent fiscal year, in the case of an eligible
     hospital (as defined in subsection (n)(6)(A)) that is not a
     meaningful EHR user (as defined in subsection (n)(3)) for the
     reporting period for such fiscal year, three-quarters of the
     applicable percentage increase otherwise applicable under
     clause (i) for such fiscal year shall be reduced by 33\1/3\
     percent for fiscal year 2016, 66\2/3\ percent for fiscal year
     2017, and 100 percent for fiscal year 2018 and each
     subsequent fiscal year. Such reduction shall apply only with
     respect to the fiscal year involved and the Secretary shall
     not take into account such reduction in computing the
     applicable percentage increase under clause (i) for a
     subsequent fiscal year.
       ``(II) The Secretary may, on a case-by-case basis, exempt a
     subsection (d) hospital from

[[Page H697]]

     the application of subclause (I) with respect to a fiscal
     year if the Secretary determines, subject to annual renewal,
     that requiring such hospital to be a meaningful EHR user
     during such fiscal year would result in a significant
     hardship, such as in the case of a hospital in a rural area
     without sufficient Internet access. In no case may a hospital
     be granted an exemption under this subclause for more than 5
     years.
       ``(III) For fiscal year 2016 and each subsequent fiscal
     year, a State in which hospitals are paid for services under
     section 1814(b)(3) shall adjust the payments to each
     subsection (d) hospital in the State that is not a meaningful
     EHR user (as defined in subsection (n)(3)) in a manner that
     is designed to result in an aggregate reduction in payments
     to hospitals in the State that is equivalent to the aggregate
     reduction that would have occurred if payments had been
     reduced to each subsection (d) hospital in the State in a
     manner comparable to the reduction under the previous
     provisions of this clause. The State shall report to the
     Secretary the methodology it will use to make the payment
     adjustment under the previous sentence.
       ``(IV) For purposes of this clause, the term `reporting
     period' means, with respect to a fiscal year, any period (or
     periods), with respect to the fiscal year, as specified by
     the Secretary.''.
       (c) Application to Certain HMO-Affiliated Eligible
     Hospitals.--Section 1853 of the Social Security Act (42
     U.S.C. 1395w-23), as amended by section 4311(c), is further
     amended by adding at the end the following new subsection:
       ``(m) Application of Eligible Hospital Incentives for
     Certain MA Organizations for Adoption and Meaningful Use of
     Certified EHR Technology.--
       ``(1) Application.--Subject to paragraphs (3) and (4), in
     the case of a qualifying MA organization, the provisions of
     sections 1886(n) and 1886(b)(3)(B)(ix) shall apply with
     respect to eligible hospitals described in paragraph (2) of
     the organization which the organization attests under
     subsection (l)(6) to be meaningful EHR users in a similar
     manner as they apply to eligible hospitals under such
     sections. Incentive payments under paragraph (3) shall be
     made to and payment adjustments under paragraph (4) shall
     apply to such qualifying organizations.
       ``(2) Eligible hospital described.--With respect to a
     qualifying MA organization, an eligible hospital described in
     this paragraph is an eligible hospital that is under common
     corporate governance with such organization and serves
     individuals enrolled under an MA plan offered by such
     organization.
       ``(3) Eligible hospital incentive payments.--
       ``(A) In general.--In applying section 1886(n)(2) under
     paragraph (1), instead of the additional payment amount under
     section 1886(n)(2), there shall be substituted an amount
     determined by the Secretary to be similar to the estimated
     amount in the aggregate that would be payable if payment for
     services furnished by such hospitals was payable under part A
     instead of this part. In implementing the previous sentence,
     the Secretary--
       ``(i) shall, insofar as data to determine the discharge
     related amount under section 1886(n)(2)(C) for an eligible
     hospital are not available to the Secretary, use such
     alternative data and methodology to estimate such discharge
     related amount as the Secretary determines appropriate; and
       ``(ii) shall, insofar as data to determine the medicare
     share described in section 1886(n)(2)(D) for an eligible
     hospital are not available to the Secretary, use such
     alternative data and methodology to estimate such share,
     which data and methodology may include use of the inpatient
     bed days (or discharges) with respect to an eligible hospital
     during the appropriate period which are attributable to both
     individuals for whom payment may be made under part A or
     individuals enrolled in an MA plan under a Medicare Advantage
     organization under this part as a proportion of the total
     number of patient-bed-days (or discharges) with respect to
     such hospital during such period.
       ``(B) Avoiding duplication of payments.--
       ``(i) In general.--In the case of a hospital that for a
     payment year is an eligible hospital described in paragraph
     (2), is an eligible hospital under section 1886(n), and for
     which at least one-third of their discharges (or bed-days) of
     Medicare patients for the year are covered under part A,
     payment for the payment year shall be made only under section
     1886(n) and not under this subsection.
       ``(ii) Methods.--In the case of a hospital that is an
     eligible hospital described in paragraph (2) and also is
     eligible for an incentive payment under section 1886(n) but
     is not described in clause (i) for the same payment period,
     the Secretary shall develop a process--

       ``(I) to ensure that duplicate payments are not made with
     respect to an eligible hospital both under this subsection
     and under section 1886(n); and
       ``(II) to collect data from Medicare Advantage
     organizations to ensure against such duplicate payments.

       ``(4) Payment adjustment.--
       ``(A) Subject to paragraph (3), in the case of a qualifying
     MA organization (as defined in section 1853(l)(5)), if,
     according to the attestation of the organization submitted
     under subsection (l)(6) for an applicable period, one or more
     eligible hospitals (as defined in section 1886(n)(6)(A)) that
     are under common corporate governance with such organization
     and that serve individuals enrolled under a plan offered by
     such organization are not meaningful EHR users (as defined in
     section 1886(n)(3)) with respect to a period, the payment
     amount payable under this section for such organization for
     such period shall be the percent specified in subparagraph
     (B) for such period of the payment amount otherwise provided
     under this section for such period.
       ``(B) Specified percent.--The percent specified under this
     subparagraph for a year is 100 percent minus a number of
     percentage points equal to the product of--
       ``(i) the number of the percentage point reduction effected
     under section 1886(b)(3)(B)(ix)(I) for the period; and
       ``(ii) the Medicare hospital expenditure proportion
     specified in subparagraph (C) for the year.
       ``(C) Medicare hospital expenditure proportion.--The
     Medicare hospital expenditure proportion under this
     subparagraph for a year is the Secretary's estimate of the
     proportion, of the expenditures under parts A and B that are
     not attributable to this part, that are attributable to
     expenditures for inpatient hospital services.
       ``(D) Application of payment adjustment.--In the case that
     a qualifying MA organization attests that not all eligible
     hospitals are meaningful EHR users with respect to an
     applicable period, the Secretary shall apply the payment
     adjustment under this paragraph based on a methodology
     specified by the Secretary, taking into account the
     proportion of such eligible hospitals, or discharges from
     such hospitals, that are not meaningful EHR users for such
     period.''.
       (d) Conforming Amendments.--
       (1) Section 1814(b) of the Social Security Act (42 U.S.C.
     1395f(b)) is amended--
       (A) in paragraph (3), in the matter preceding subparagraph
     (A), by inserting ``, subject to section
     1886(d)(3)(B)(ix)(III),'' after ``then''; and
       (B) by adding at the end the following: ``For purposes of
     applying paragraph (3), there shall be taken into account
     incentive payments, and payment adjustments under subsection
     (b)(3)(B)(ix) or (n) of section 1886.''.
       (2) Section 1851(i)(1) of the Social Security Act (42
     U.S.C. 1395w-21(i)(1)) is amended by striking ``and
     1886(h)(3)(D)'' and inserting ``1886(h)(3)(D), and 1853(m)''.
       (3) Section 1853 of the Social Security Act (42 U.S.C.
     1395w-23), as amended by section 4311(d)(1), is amended--
       (A) in subsection (c)--
       (i) in paragraph (1)(D)(i), by striking ``1848(o)'' and
     inserting ``, 1848(o), and 1886(n)''; and
       (ii) in paragraph (6)(A), by inserting ``and subsections
     (b)(3)(B)(ix) and (n) of section 1886'' after ``section
     1848''; and
       (B) in subsection (f), by inserting ``and subsection (m)''
     after ``under subsection (l)''.

     SEC. 4313. TREATMENT OF PAYMENTS AND SAVINGS; IMPLEMENTATION
                   FUNDING.

       (a) Premium Hold Harmless.--
       (1) In general.--Section 1839(a)(1) of the Social Security
     Act (42 U.S.C. 1395r(a)(1)) is amended by adding at the end
     the following: ``In applying this paragraph there shall not
     be taken into account additional payments under section
     1848(o) and section 1853(l)(3) and the Government
     contribution under section 1844(a)(3).''.
       (2) Payment.--Section 1844(a) of such Act (42 U.S.C.
     1395w(a)) is amended--
       (A) in paragraph (2), by striking the period at the end and
     inserting ``; plus''; and
       (B) by adding at the end the following new paragraph:
       ``(3) a Government contribution equal to the amount of
     payment incentives payable under sections 1848(o) and
     1853(l)(3).''.
       (b) Medicare Improvement Fund.--Section 1898 of the Social
     Security Act (42 U.S.C. 1395iii), as added by section 7002(a)
     of the Supplemental Appropriations Act, 2008 (Public Law 110-
     252) and as amended by section 188(a)(2) of the Medicare
     Improvements for Patients and Providers Act of 2008 (Public
     Law 110-275; 122 Stat. 2589) and by section 6 of the QI
     Program Supplemental Funding Act of 2008, is amended--
       (1) in subsection (a)--
       (A) by inserting ``medicare'' before ``fee-for-service'';
     and
       (B) by inserting before the period at the end the
     following: ``including, but not limited to, an increase in
     the conversion factor under section 1848(d) to address, in
     whole or in part, any projected shortfall in the conversion
     factor for 2014 relative to the conversion factor for 2008
     and adjustments to payments for items and services furnished
     by providers of services and suppliers under such original
     medicare fee-for-service program''; and
       (2) in subsection (b)--
       (A) in paragraph (1), by striking ``during fiscal year
     2014,'' and all that follows and inserting the following:
     ``during--
       ``(A) fiscal year 2014, $22,290,000,000; and
       ``(B) fiscal year 2020 and each subsequent fiscal year, the
     Secretary's estimate, as of July 1 of the fiscal year, of the
     aggregate reduction in expenditures under this title during
     the preceding fiscal year directly resulting from the
     reduction in payment amounts under sections 1848(a)(7),
     1853(l)(4), 1853(m)(4), and 1886(b)(3)(B)(ix).''; and
       (B) by adding at the end the following new paragraph:
       ``(4) No effect on payments in subsequent years.--In the
     case that expenditures from the Fund are applied to, or
     otherwise affect, a payment rate for an item or service under
     this title for a year, the payment rate for

[[Page H698]]

     such item or service shall be computed for a subsequent year
     as if such application or effect had never occurred.''.
       (c) Implementation Funding.--In addition to funds otherwise
     available, out of any funds in the Treasury not otherwise
     appropriated, there are appropriated to the Secretary of
     Health and Human Services for the Center for Medicare &
     Medicaid Services Program Management Account, $60,000,000 for
     each of fiscal years 2009 through 2015 and $30,000,000 for
     each succeeding fiscal year through fiscal year 2019, which
     shall be available for purposes of carrying out the
     provisions of (and amendments made by) this part. Amounts
     appropriated under this subsection for a fiscal year shall be
     available until expended.

     SEC. 4314. STUDY ON APPLICATION OF EHR PAYMENT INCENTIVES FOR
                   PROVIDERS NOT RECEIVING OTHER INCENTIVE
                   PAYMENTS.

       (a) Study.--
       (1) In general.--The Secretary of Health and Human Services
     shall conduct a study to determine the extent to which and
     manner in which payment incentives (such as under title XVIII
     or XIX of the Social Security Act) and other funding for
     purposes of implementing and using certified EHR technology
     (as defined in section 3000 of the Public Health Service Act)
     should be made available to health care providers who are
     receiving minimal or no payment incentives or other funding
     under this Act, under title XVIII or XIX of the Social
     Security Act, or otherwise, for such purposes.
       (2) Details of study.--Such study shall include an
     examination of--
       (A) the adoption rates of certified EHR technology by such
     health care providers;
       (B) the clinical utility of such technology by such health
     care providers;
       (C) whether the services furnished by such health care
     providers are appropriate for or would benefit from the use
     of such technology;
       (D) the extent to which such health care providers work in
     settings that might otherwise receive an incentive payment or
     other funding under this Act, title XVIII or XIX of the
     Social Security Act, or otherwise;
       (E) the potential costs and the potential benefits of
     making payment incentives and other funding available to such
     health care providers; and
       (F) any other issues the Secretary deems to be appropriate.
       (b) Report.--Not later than June 30, 2010, the Secretary
     shall submit to Congress a report on the findings and
     conclusions of the study conducted under subsection (a).

                       PART III--MEDICAID FUNDING

     SEC. 4321. MEDICAID PROVIDER HIT ADOPTION AND OPERATION
                   PAYMENTS; IMPLEMENTATION FUNDING.

       (a) In General.--Section 1903 of the Social Security Act
     (42 U.S.C. 1396b) is amended--
       (1) in subsection (a)(3)--
       (A) by striking ``and'' at the end of subparagraph (D);
       (B) by striking ``plus'' at the end of subparagraph (E) and
     inserting ``and''; and
       (C) by adding at the end the following new subparagraph:
       ``(F)(i) 100 percent of so much of the sums expended during
     such quarter as are attributable to payments for certified
     EHR technology (and support services including maintenance
     and training that is for, or is necessary for the adoption
     and operation of, such technology) by Medicaid providers
     described in subsection (t)(1); and
       ``(ii) 90 percent of so much of the sums expended during
     such quarter as are attributable to payments for reasonable
     administrative expenses related to the administration of
     payments described in clause (i) if the State meets the
     condition described in subsection (t)(9); plus''; and
       (2) by inserting after subsection (s) the following new
     subsection:
       ``(t)(1)(A) For purposes of subsection (a)(3)(F), the
     payments for certified EHR technology (and support services
     including maintenance that is for, or is necessary for the
     operation of, such technology) by Medicaid providers
     described in this paragraph are payments made by the State in
     accordance with this subsection of the applicable percent (as
     specified in subparagraph (B)) of the net allowable costs of
     Medicaid providers (as defined in paragraph (2)) for such
     technology (and support services).
       ``(B) For purposes of subparagraph (A), the applicable
     percent is--
       ``(i) in the case of a Medicaid provider described in
     paragraph (2)(A), 85 percent; and
       ``(ii) in the case of a Medicaid provider described in
     paragraph (2)(B), 100 percent.
       ``(2) In this subsection and subsection (a)(3)(F), the term
     `Medicaid provider' means--
       ``(A) an eligible professional (as defined in paragraph
     (3)(B)) who is not hospital-based and has at least 30 percent
     of the professional's patient volume (as estimated in
     accordance with standards established by the Secretary)
     attributable to individuals who are receiving medical
     assistance under this title; and
       ``(B)(i) a children's hospital, (ii) an acute-care hospital
     that is not described in clause (i) and that has at least 10
     percent of the hospital's patient volume (as estimated in
     accordance with standards established by the Secretary)
     attributable to individuals who are receiving medical
     assistance under this title, or (iii) a Federally-qualified
     health center or rural health clinic that has at least 30
     percent of the center's or clinic's patient volume (as
     estimated in accordance with standards established by the
     Secretary) attributable to individuals who are receiving
     medical assistance under this title.

     An eligible professional shall not qualify as a Medicaid
     provider under this subsection unless the eligible
     professional has waived, in a manner specified by the
     Secretary, any right to payment under section 1848(o) with
     respect to the adoption or support of certified EHR
     technology by the professional. In applying clauses (ii) and
     (iii) of subparagraph (B), the standards established by the
     Secretary for patient volume shall include individuals
     enrolled in a Medicaid managed care plan (under section
     1903(m) or section 1932).
       ``(3) In this subsection and subsection (a)(3)(F):
       ``(A) The term `certified EHR technology' means a qualified
     electronic health record (as defined in 3000(13) of the
     Public Health Service Act) that is certified pursuant to
     section 3001(c)(5) of such Act as meeting standards adopted
     under section 3004 of such Act that are applicable to the
     type of record involved (as determined by the Secretary, such
     as an ambulatory electronic health record for office-based
     physicians or an inpatient hospital electronic health record
     for hospitals).
       ``(B) The term `eligible professional' means a physician as
     defined in paragraphs (1) and (2) of section 1861(r), and
     includes a certified nurse mid-wife and a nurse practitioner.
       ``(C) The term `hospital-based' means, with respect to an
     eligible professional, a professional (such as a pathologist,
     anesthesiologist, or emergency physician) who furnishes
     substantially all of the individual's professional services
     in a hospital setting (whether inpatient or outpatient) and
     through the use of the facilities and equipment, including
     computer equipment, of the hospital.
       ``(4)(A) The term `allowable costs' means, with respect to
     certified EHR technology of a Medicaid provider, costs of
     such technology (and support services including maintenance
     and training that is for, or is necessary for the adoption
     and operation of, such technology) as determined by the
     Secretary to be reasonable.
       ``(B) The term `net allowable costs' means allowable costs
     reduced by any payment that is made to the Medicaid provider
     involved from any other source that is directly attributable
     to payment for certified EHR technology or services described
     in subparagraph (A).
       ``(C) In no case shall--
       ``(i) the aggregate allowable costs under this subsection
     (covering one or more years) with respect to a Medicaid
     provider described in paragraph (2)(A) for purchase and
     initial implementation of certified EHR technology (and
     services described in subparagraph (A)) exceed $25,000 or
     include costs over a period of longer than 5 years;
       ``(ii) for costs not described in clause (i) relating to
     the operation, maintenance, or use of certified EHR
     technology, the annual allowable costs under this subsection
     with respect to such a Medicaid provider for costs not
     described in clause (i) for any year exceed $10,000;
       ``(iii) payment described in paragraph (1) for costs
     described in clause (ii) be made with respect to such a
     Medicaid provider over a period of more than 5 years;
       ``(iv) the aggregate allowable costs under this subsection
     with respect to such a Medicaid provider for all costs exceed
     $75,000; or
       ``(v) the allowable costs, whether for purchase and initial
     implementation, maintenance, or otherwise, for a Medicaid
     provider described in paragraph (2)(B)(iii) exceed such
     aggregate or annual limitation as the Secretary shall
     establish, based on an amount determined by the Secretary as
     being adequate to adopt and maintain certified EHR
     technology, consistent with paragraph (6).
       ``(5) Payments described in paragraph (1) are not in
     accordance with this subsection unless the following
     requirements are met:
       ``(A) The State provides assurances satisfactory to the
     Secretary that amounts received under subsection (a)(3)(F)
     with respect to costs of a Medicaid provider are paid
     directly to such provider without any deduction or rebate.
       ``(B) Such Medicaid provider is responsible for payment of
     the costs described in such paragraph that are not provided
     under this title.
       ``(C) With respect to payments to such Medicaid provider
     for costs other than costs related to the initial adoption of
     certified EHR technology, the Medicaid provider demonstrates
     meaningful use of certified EHR technology through a means
     that is approved by the State and acceptable to the
     Secretary, and that may be based upon the methodologies
     applied under section 1848(o) or 1886(n).
       ``(D) To the extent specified by the Secretary, the
     certified EHR technology is compatible with State or Federal
     administrative management systems.
       ``(6)(A) In no case shall the payments described in
     paragraph (1), with respect to a hospital, exceed in the
     aggregate the product of--
       ``(i) the overall hospital EHR amount for the hospital
     computed under subparagraph (B); and
       ``(ii) the Medicaid share for such hospital computed under
     subparagraph (C).
       ``(B) For purposes of this paragraph, the overall hospital
     EHR amount, with respect to a hospital, is the sum of the
     applicable amounts specified in section 1886(n)(2)(A) for
     such hospital for the first 4 payment years

[[Page H699]]

     (as estimated by the Secretary) determined as if the Medicare
     share specified in clause (ii) of such section were 1. The
     Secretary shall publish in the Federal Register the overall
     hospital EHR amount for each hospital eligible for payments
     under this subsection. In computing amounts under paragraph
     1886(n)(2)(C) for payment years after the first payment year,
     the Secretary shall assume that in subsequent payment years
     discharges increase at the average annual rate of growth of
     the most recent 3 years for which discharge data are
     available per year.
       ``(C) The Medicaid share computed under this subparagraph,
     for a hospital for a period specified by the Secretary, shall
     be calculated in the same manner as the Medicare share under
     section 1886(n)(2)(D) for such a hospital and period, except
     that there shall be substituted for the numerator under
     clause (i) of such section the amount that is equal to the
     number of inpatient-bed-days (as established by the
     Secretary) which are attributable to individuals who are
     receiving medical assistance under this title and who are not
     described in section 1886(n)(2)(D)(i). In computing
     inpatient-bed-days under the previous sentence, the Secretary
     shall take into account inpatient-bed-days attributable to
     inpatient-bed-days that are paid for individuals enrolled in
     a Medicaid managed care plan (under section 1903(m) or
     section 1932).
       ``(7) With respect to health care providers other than
     hospitals, the Secretary shall ensure coordination of the
     different programs for payment of such health care providers
     for adoption or use of health information technology
     (including certified EHR technology), as well as payments for
     such health care providers provided under this title or title
     XVIII, to assure no duplication of funding.
       ``(8) In carrying out paragraph (5)(C), the State and
     Secretary shall seek, to the maximum extent practicable, to
     avoid duplicative requirements from Federal and State
     Governments to demonstrate meaningful use of certified EHR
     technology under this title and title XVIII. In doing so, the
     Secretary may deem satisfaction of requirements for such
     meaningful use for a payment year under title XVIII to be
     sufficient to qualify as meaningful use under this
     subsection. The Secretary may also specify the reporting
     periods under this subsection in order to carry out this
     paragraph.
       ``(9) In order to be provided Federal financial
     participation under subsection (a)(3)(F)(ii), a State must
     demonstrate to the satisfaction of the Secretary, that the
     State--
       ``(A) is using the funds provided for the purposes of
     administering payments under this subsection, including
     tracking of meaningful use by Medicaid providers;
       ``(B) is conducting adequate oversight of the program under
     this subsection, including routine tracking of meaningful use
     attestations and reporting mechanisms; and
       ``(C) is pursuing initiatives to encourage the adoption of
     certified EHR technology to promote health care quality and
     the exchange of health care information under this title,
     subject to applicable laws and regulations governing such
     exchange.
       ``(10) The Secretary shall periodically submit reports to
     the Committee on Energy and Commerce of the House of
     Representatives and the Committee on Finance of the Senate on
     status, progress, and oversight of payments under paragraph
     (1).''.
       (b) Implementation Funding.--In addition to funds otherwise
     available, out of any funds in the Treasury not otherwise
     appropriated, there are appropriated to the Secretary of
     Health and Human Services for the Center for Medicare &
     Medicaid Services Program Management Account, $40,000,000 for
     each of fiscal years 2009 through 2015 and $20,000,000 for
     each succeeding fiscal year through fiscal year 2019, which
     shall be available for purposes of carrying out the
     provisions of (and the amendments made by) this part. Amounts
     appropriated under this subsection for a fiscal year shall be
     available until expended.

     SEC. 4322. MEDICAID NURSING FACILITY GRANT PROGRAM.

       (a) In General.--The Secretary shall establish a grant
     program to enhance the meaningful use of certified electronic
     health records in nursing facilities. In establishing such
     program, the Secretary shall use payment incentives for
     meaningful use of certified EHR technology, similar to those
     specified in sections 4311, 4312, and 4321, as appropriate.
     For the purpose of such incentives, the Secretary shall
     define meaningful use in a manner so as to be consistent with
     such sections to the extent practicable. The Secretary shall
     award funds to not more than 10 States to carry out
     activities under this section.
       (b) Activities.--The Secretary shall require a State
     participating in the grant program to--
       (1) provide payment incentives to nursing facilities
     contingent on the demonstration of meaningful use of
     certified electronic health records;
       (2) require participating nursing facilities to engage in
     programs to improve the quality and coordination of care
     through the use of certified EHR technology, including for
     persons who are repeatedly admitted to acute care hospitals
     from the nursing facility and persons who receive services
     across multiple medical and social services providers
     (including facility and community-based providers); and
       (3) provide for training of appropriate personnel in the
     use of certified electronic health records.
       (c) Targeting.--The Secretary shall require a State
     participating in the grant program to target nursing
     facilities with a significant percentage (but not less than
     the average in the State) of the facility's patient volume
     (as estimated in accordance with standards established by the
     Secretary) attributable to individuals who are receiving
     medical assistance under title XIX of the Social Security
     Act.
       (d) Priority.--In making grants under this section, the
     Secretary shall give priority to States with a high
     proportion of total national nursing facility days paid under
     title XIX of the Social Security Act.
       (e) Limitations on Use of Funds.--A State may not make
     payments to a nursing facility in excess of 90 percent of the
     costs of such nursing facility for the adoption and operation
     of certified EHR technology.
       (f) Application.--No grant may be made to a State under
     this section unless the State submits an application to the
     Secretary in a form and manner specified by the Secretary.
       (g) Report.--Not later than the end of the 3-year period
     beginning on the date that grants under this section are
     first awarded, the Secretary shall submit a report to
     Congress on the activities under this grant program and the
     effect of this program on quality and coordination of care
     under title XIX of the Social Security Act.
       (h) Appropriation.--Out of any money in the Treasury not
     otherwise appropriated, there is appropriated to the
     Secretary of Health and Human Services to carry out this
     section $600,000,000, to remain available until expended.

                          Subtitle D--Privacy

     SEC. 4400. DEFINITIONS.

       In this subtitle, except as specified otherwise:
       (1) Breach.--The term ``breach'' means the unauthorized
     acquisition, access, use, or disclosure of protected health
     information which compromises the security, privacy, or
     integrity of protected health information maintained by or on
     behalf of a person. Such term does not include any
     unintentional acquisition, access, use, or disclosure of such
     information by an employee or agent of the covered entity or
     business associate involved if such acquisition, access, use,
     or disclosure, respectively, was made in good faith and
     within the course and scope of the employment or other
     contractual relationship of such employee or agent,
     respectively, with the covered entity or business associate
     and if such information is not further acquired, accessed,
     used, or disclosed by such employee or agent.
       (2) Business associate.--The term ``business associate''
     has the meaning given such term in section 160.103 of title
     45, Code of Federal Regulations.
       (3) Covered entity.--The term ``covered entity'' has the
     meaning given such term in section 160.103 of title 45, Code
     of Federal Regulations.
       (4) Disclose.--The terms ``disclose'' and ``disclosure''
     have the meaning given the term ``disclosure'' in section
     160.103 of title 45, Code of Federal Regulations.
       (5) Electronic health record.--The term ``electronic health
     record'' means an electronic record of health-related
     information on an individual that is created, gathered,
     managed, and consulted by authorized health care clinicians
     and staff.
       (6) Health care operations.--The term ``health care
     operation'' has the meaning given such term in section
     164.501 of title 45, Code of Federal Regulations.
       (7) Health care provider.--The term ``health care
     provider'' has the meaning given such term in section 160.103
     of title 45, Code of Federal Regulations.
       (8) Health plan.--The term ``health plan'' has the meaning
     given such term in section 1171(5) of the Social Security
     Act.
       (9) National coordinator.--The term ``National
     Coordinator'' means the head of the Office of the National
     Coordinator for Health Information Technology established
     under section 3001(a) of the Public Health Service Act, as
     added by section 4101.
       (10) Payment.--The term ``payment'' has the meaning given
     such term in section 164.501 of title 45, Code of Federal
     Regulations.
       (11) Personal health record.--The term ``personal health
     record'' means an electronic record of individually
     identifiable health information on an individual that can be
     drawn from multiple sources and that is managed, shared, and
     controlled by or for the individual.
       (12) Protected health information.--The term ``protected
     health information'' has the meaning given such term in
     section 160.103 of title 45, Code of Federal Regulations.
       (13) Secretary.--The term ``Secretary'' means the Secretary
     of Health and Human Services.
       (14) Security.--The term ``security'' has the meaning given
     such term in section 164.304 of title 45, Code of Federal
     Regulations.
       (15) State.--The term ``State'' means each of the several
     States, the District of Columbia, Puerto Rico, the Virgin
     Islands, Guam, American Samoa, and the Northern Mariana
     Islands.
       (16) Treatment.--The term ``treatment'' has the meaning
     given such term in section 164.501 of title 45, Code of
     Federal Regulations.
       (17) Use.--The term ``use'' has the meaning given such term
     in section 160.103 of title 45, Code of Federal Regulations.
       (18) Vendor of personal health records.--The term ``vendor
     of personal

[[Page H700]]

     health records'' means an entity, other than a covered entity
     (as defined in paragraph (3)), that offers or maintains a
     personal health record.

      PART I--IMPROVED PRIVACY PROVISIONS AND SECURITY PROVISIONS

     SEC. 4401. APPLICATION OF SECURITY PROVISIONS AND PENALTIES
                   TO BUSINESS ASSOCIATES OF COVERED ENTITIES;
                   ANNUAL GUIDANCE ON SECURITY PROVISIONS.

       (a) Application of Security Provisions.--Sections 164.308,
     164.310, 164.312, and 164.316 of title 45, Code of Federal
     Regulations, shall apply to a business associate of a covered
     entity in the same manner that such sections apply to the
     covered entity. The additional requirements of this title
     that relate to security and that are made applicable with
     respect to covered entities shall also be applicable to such
     a business associate and shall be incorporated into the
     business associate agreement between the business associate
     and the covered entity.
       (b) Application of Civil and Criminal Penalties.--In the
     case of a business associate that violates any security
     provision specified in subsection (a), sections 1176 and 1177
     of the Social Security Act (42 U.S.C. 1320d-5, 1320d-6) shall
     apply to the business associate with respect to such
     violation in the same manner such sections apply to a covered
     entity that violates such security provision.
       (c) Annual Guidance.--For the first year beginning after
     the date of the enactment of this Act and annually
     thereafter, the Secretary of Health and Human Services shall,
     in consultation with industry stakeholders, annually issue
     guidance on the most effective and appropriate technical
     safeguards for use in carrying out the sections referred to
     in subsection (a) and the security standards in subpart C of
     part 164 of title 45, Code of Federal Regulations, including
     the use of standards developed under section
     3002(b)(2)(B)(vi) of the Public Health Service Act, as added
     by section 4101, as such provisions are in effect as of the
     date before the enactment of this Act.

     SEC. 4402. NOTIFICATION IN THE CASE OF BREACH.

       (a) In General.--A covered entity that accesses, maintains,
     retains, modifies, records, stores, destroys, or otherwise
     holds, uses, or discloses unsecured protected health
     information (as defined in subsection (h)(1)) shall, in the
     case of a breach of such information that is discovered by
     the covered entity, notify each individual whose unsecured
     protected health information has been, or is reasonably
     believed by the covered entity to have been, accessed,
     acquired, or disclosed as a result of such breach.
       (b) Notification of Covered Entity by Business Associate.--
     A business associate of a covered entity that accesses,
     maintains, retains, modifies, records, stores, destroys, or
     otherwise holds, uses, or discloses unsecured protected
     health information shall, following the discovery of a breach
     of such information, notify the covered entity of such
     breach. Such notice shall include the identification of each
     individual whose unsecured protected health information has
     been, or is reasonably believed by the business associate to
     have been, accessed, acquired, or disclosed during such
     breach.
       (c) Breaches Treated as Discovered.--For purposes of this
     section, a breach shall be treated as discovered by a covered
     entity or by a business associate as of the first day on
     which such breach is known to such entity or associate,
     respectively, (including any person, other than the
     individual committing the breach, that is an employee,
     officer, or other agent of such entity or associate,
     respectively) or should reasonably have been known to such
     entity or associate (or person) to have occurred.
       (d) Timeliness of Notification.--
       (1) In general.--Subject to subsection (g), all
     notifications required under this section shall be made
     without unreasonable delay and in no case later than 60
     calendar days after the discovery of a breach by the covered
     entity involved (or business associate involved in the case
     of a notification required under subsection (b)).
       (2) Burden of proof.--The covered entity involved (or
     business associate involved in the case of a notification
     required under subsection (b)), shall have the burden of
     demonstrating that all notifications were made as required
     under this part, including evidence demonstrating the
     necessity of any delay.
       (e) Methods of Notice.--
       (1) Individual notice.--Notice required under this section
     to be provided to an individual, with respect to a breach,
     shall be provided promptly and in the following form:
       (A) Written notification by first-class mail to the
     individual (or the next of kin of the individual if the
     individual is deceased) at the last known address of the
     individual or the next of kin, respectively, or, if specified
     as a preference by the individual, by electronic mail. The
     notification may be provided in one or more mailings as
     information is available.
       (B) In the case in which there is insufficient, or out-of-
     date contact information (including a phone number, email
     address, or any other form of appropriate communication) that
     precludes direct written (or, if specified by the individual
     under subparagraph (A), electronic) notification to the
     individual, a substitute form of notice shall be provided,
     including, in the case that there are 10 or more individuals
     for which there is insufficient or out-of-date contact
     information, a conspicuous posting for a period determined by
     the Secretary on the home page of the Web site of the covered
     entity involved or notice in major print or broadcast media,
     including major media in geographic areas where the
     individuals affected by the breach likely reside. Such a
     notice in media or web posting will include a toll-free phone
     number where an individual can learn whether or not the
     individual's unsecured protected health information is
     possibly included in the breach.
       (C) In any case deemed by the covered entity involved to
     require urgency because of possible imminent misuse of
     unsecured protected health information, the covered entity,
     in addition to notice provided under subparagraph (A), may
     provide information to individuals by telephone or other
     means, as appropriate.
       (2) Media notice.--Notice shall be provided to prominent
     media outlets serving a State or jurisdiction, following the
     discovery of a breach described in subsection (a), if the
     unsecured protected health information of more than 500
     residents of such State or jurisdiction is, or is reasonably
     believed to have been, accessed, acquired, or disclosed
     during such breach.
       (3) Notice to secretary.--Notice shall be provided to the
     Secretary by covered entities of unsecured protected health
     information that has been acquired or disclosed in a breach.
     If the breach was with respect to 500 or more individuals
     than such notice must be provided immediately. If the breach
     was with respect to less than 500 individuals, the covered
     entity involved may maintain a log of any such breach
     occurring and annually submit such a log to the Secretary
     documenting such breaches occurring during the year involved.
       (4) Posting on hhs public website.--The Secretary shall
     make available to the public on the Internet website of the
     Department of Health and Human Services a list that
     identifies each covered entity involved in a breach described
     in subsection (a) in which the unsecured protected health
     information of more than 500 individuals is acquired or
     disclosed.
       (f) Content of Notification.--Regardless of the method by
     which notice is provided to individuals under this section,
     notice of a breach shall include, to the extent possible, the
     following:
       (1) A brief description of what happened, including the
     date of the breach and the date of the discovery of the
     breach, if known.
       (2) A description of the types of unsecured protected
     health information that were involved in the breach (such as
     full name, Social Security number, date of birth, home
     address, account number, or disability code).
       (3) The steps individuals should take to protect themselves
     from potential harm resulting from the breach.
       (4) A brief description of what the covered entity involved
     is doing to investigate the breach, to mitigate losses, and
     to protect against any further breaches.
       (5) Contact procedures for individuals to ask questions or
     learn additional information, which shall include a toll-free
     telephone number, an e-mail address, Web site, or postal
     address.
       (g) Delay of Notification Authorized for Law Enforcement
     Purposes.--If a law enforcement official determines that a
     notification, notice, or posting required under this section
     would impede a criminal investigation or cause damage to
     national security, such notification, notice, or posting
     shall be delayed in the same manner as provided under section
     164.528(a)(2) of title 45, Code of Federal Regulations, in
     the case of a disclosure covered under such section.
       (h) Unsecured Protected Health Information.--
       (1) Definition.--
       (A) In general.--Subject to subparagraph (B), for purposes
     of this section, the term ``unsecured protected health
     information'' means protected health information that is not
     secured through the use of a technology or methodology
     specified by the Secretary in the guidance issued under
     paragraph (2).
       (B) Exception in case timely guidance not issued.--In the
     case that the Secretary does not issue guidance under
     paragraph (2) by the date specified in such paragraph, for
     purposes of this section, the term ``unsecured protected
     health information'' shall mean protected health information
     that is not secured by a technology standard that renders
     protected health information unusable, unreadable, or
     indecipherable to unauthorized individuals and is developed
     or endorsed by a standards developing organization that is
     accredited by the American National Standards Institute.
       (2) Guidance.--For purposes of paragraph (1) and section
     407(f)(3), not later than the date that is 60 days after the
     date of the enactment of this Act, the Secretary shall, after
     consultation with stakeholders, issue (and annually update)
     guidance specifying the technologies and methodologies that
     render protected health information unusable, unreadable, or
     indecipherable to unauthorized individuals, including use of
     standards developed under section 3002(b)(2)(B)(vi) of the
     Public Health Service Act, as added by section 4101.
       (i) Report to Congress on Breaches.--
       (1) In general.--Not later than 12 months after the date of
     the enactment of this Act and annually thereafter, the
     Secretary shall

[[Page H701]]

     prepare and submit to the Committee on Finance and the
     Committee on Health, Education, Labor, and Pensions of the
     Senate and the Committee on Ways and Means and the Committee
     on Energy and Commerce of the House of Representatives a
     report containing the information described in paragraph (2)
     regarding breaches for which notice was provided to the
     Secretary under subsection (e)(3).
       (2) Information.--The information described in this
     paragraph regarding breaches specified in paragraph (1) shall
     include--
       (A) the number and nature of such breaches; and
       (B) actions taken in response to such breaches.
       (j) Regulations; Effective Date.--To carry out this
     section, the Secretary of Health and Human Services shall
     promulgate interim final regulations by not later than the
     date that is 180 days after the date of the enactment of this
     title. The provisions of this section shall apply to breaches
     that are discovered on or after the date that is 30 days
     after the date of publication of such interim final
     regulations.

     SEC. 4403. EDUCATION ON HEALTH INFORMATION PRIVACY.

       (a) Regional Office Privacy Advisors.--Not later than 6
     months after the date of the enactment of this Act, the
     Secretary shall designate an individual in each regional
     office of the Department of Health and Human Services to
     offer guidance and education to covered entities, business
     associates, and individuals on their rights and
     responsibilities related to Federal privacy and security
     requirements for protected health information.
       (b) Education Initiative on Uses of Health Information.--
     Not later than 12 months after the date of the enactment of
     this Act, the Office for Civil Rights within the Department
     of Health and Human Services shall develop and maintain a
     multi-faceted national education initiative to enhance public
     transparency regarding the uses of protected health
     information, including programs to educate individuals about
     the potential uses of their protected health information, the
     effects of such uses, and the rights of individuals with
     respect to such uses. Such programs shall be conducted in a
     variety of languages and present information in a clear and
     understandable manner.

     SEC. 4404. APPLICATION OF PRIVACY PROVISIONS AND PENALTIES TO
                   BUSINESS ASSOCIATES OF COVERED ENTITIES.

       (a) Application of Contract Requirements.--In the case of a
     business associate of a covered entity that obtains or
     creates protected health information pursuant to a written
     contract (or other written arrangement) described in section
     164.502(e)(2) of title 45, Code of Federal Regulations, with
     such covered entity, the business associate may use and
     disclose such protected health information only if such use
     or disclosure, respectively, is in compliance with each
     applicable requirement of section 164.504(e) of such title.
     The additional requirements of this subtitle that relate to
     privacy and that are made applicable with respect to covered
     entities shall also be applicable to such a business
     associate and shall be incorporated into the business
     associate agreement between the business associate and the
     covered entity.
       (b) Application of Knowledge Elements Associated With
     Contracts.--Section 164.504(e)(1)(ii) of title 45, Code of
     Federal Regulations, shall apply to a business associate
     described in subsection (a), with respect to compliance with
     such subsection, in the same manner that such section applies
     to a covered entity, with respect to compliance with the
     standards in sections 164.502(e) and 164.504(e) of such
     title, except that in applying such section 164.504(e)(1)(ii)
     each reference to the business associate, with respect to a
     contract, shall be treated as a reference to the covered
     entity involved in such contract.
       (c) Application of Civil and Criminal Penalties.--In the
     case of a business associate that violates any provision of
     subsection (a) or (b), the provisions of sections 1176 and
     1177 of the Social Security Act (42 U.S.C. 1320d-5, 1320d-6)
     shall apply to the business associate with respect to such
     violation in the same manner as such provisions apply to a
     person who violates a provision of part C of title XI of such
     Act.

     SEC. 4405. RESTRICTIONS ON CERTAIN DISCLOSURES AND SALES OF
                   HEALTH INFORMATION; ACCOUNTING OF CERTAIN
                   PROTECTED HEALTH INFORMATION DISCLOSURES;
                   ACCESS TO CERTAIN INFORMATION IN ELECTRONIC
                   FORMAT.

       (a) Requested Restrictions on Certain Disclosures of Health
     Information.--In the case that an individual requests under
     paragraph (a)(1)(i)(A) of section 164.522 of title 45, Code
     of Federal Regulations, that a covered entity restrict the
     disclosure of the protected health information of the
     individual, notwithstanding paragraph (a)(1)(ii) of such
     section, the covered entity must comply with the requested
     restriction if--
       (1) except as otherwise required by law, the disclosure is
     to a health plan for purposes of carrying out payment or
     health care operations (and is not for purposes of carrying
     out treatment); and
       (2) the protected health information pertains solely to a
     health care item or service for which the health care
     provider involved has been paid out of pocket in full.
       (b) Disclosures Required To Be Limited to the Limited Data
     Set or the Minimum Necessary.--
       (1) In general.--
       (A) In general.--Subject to subparagraph (B), a covered
     entity shall be treated as being in compliance with section
     164.502(b)(1) of title 45, Code of Federal Regulations, with
     respect to the use, disclosure, or request of protected
     health information described in such section, only if the
     covered entity limits such protected health information, to
     the extent practicable, to the limited data set (as defined
     in section 164.514(e)(2) of such title) or, if needed by such
     entity, to the minimum necessary to accomplish the intended
     purpose of such use, disclosure, or request, respectively.
       (B) Guidance.--Not later than 18 months after the date of
     the enactment of this section, the Secretary shall issue
     guidance on what constitutes ``minimum necessary'' for
     purposes of subpart E of part 164 of title 45, Code of
     Federal Regulation. In issuing such guidance the Secretary
     shall take into consideration the guidance under section
     4424(c).
       (C) Sunset.--Subparagraph (A) shall not apply on and after
     the effective date on which the Secretary issues the guidance
     under subparagraph (B).
       (2) Determination of minimum necessary.--For purposes of
     paragraph (1), in the case of the disclosure of protected
     health information, the covered entity or business associate
     disclosing such information shall determine what constitutes
     the minimum necessary to accomplish the intended purpose of
     such disclosure.
       (3) Application of exceptions.--The exceptions described in
     section 164.502(b)(2) of title 45, Code of Federal
     Regulations, shall apply to the requirement under paragraph
     (1) as of the effective date described in section 4423 in the
     same manner that such exceptions apply to section
     164.502(b)(1) of such title before such date.
       (4) Rule of construction.--Nothing in this subsection shall
     be construed as affecting the use, disclosure, or request of
     protected health information that has been de-identified.
       (c) Accounting of Certain Protected Health Information
     Disclosures Required if Covered Entity Uses Electronic Health
     Record.--
       (1) In general.--In applying section 164.528 of title 45,
     Code of Federal Regulations, in the case that a covered
     entity uses or maintains an electronic health record with
     respect to protected health information--
       (A) the exception under paragraph (a)(1)(i) of such section
     shall not apply to disclosures through an electronic health
     record made by such entity of such information; and
       (B) an individual shall have a right to receive an
     accounting of disclosures described in such paragraph of such
     information made by such covered entity during only the three
     years prior to the date on which the accounting is requested.
       (2) Regulations.--The Secretary shall promulgate
     regulations on what information shall be collected about each
     disclosure referred to in paragraph (1)(A) not later than 18
     months after the date on which the Secretary adopts standards
     on accounting for disclosure described in the section
     3002(b)(2)(B)(iv) of the Public Health Service Act, as added
     by section 4101. Such regulations shall only require such
     information to be collected through an electronic health
     record in a manner that takes into account the interests of
     individuals in learning the circumstances under which their
     protected health information is being disclosed and takes
     into account the administrative burden of accounting for such
     disclosures.
       (3) Construction.--Nothing in this subsection shall be
     construed as requiring a covered entity to account for
     disclosures of protected health information that are not made
     by such covered entity or by a business associate acting on
     behalf of the covered entity.
       (4) Effective date.--
       (A) Current users of electronic records.--In the case of a
     covered entity insofar as it acquired an electronic health
     record as of January 1, 2009, paragraph (1) shall apply to
     disclosures, with respect to protected health information,
     made by the covered entity from such a record on and after
     January 1, 2014.
       (B) Others.--In the case of a covered entity insofar as it
     acquires an electronic health record after January 1, 2009,
     paragraph (1) shall apply to disclosures, with respect to
     protected health information, made by the covered entity from
     such record on and after the later of the following:
       (i) January 1, 2011; or
       (ii) the date that it acquires an electronic health record.
       (d) Review of Health Care Operations.--Not later than 18
     months after the date of the enactment of this title, the
     Secretary shall promulgate regulations to eliminate from the
     definition of health care operations under section 164.501 of
     title 45, Code of Federal Regulations, those activities that
     can reasonably and efficiently be conducted through the use
     of information that is de-identified (in accordance with the
     requirements of section 164.514(b) of such title) or that
     should require a valid authorization for use or disclosure.
     In promulgating such regulations, the Secretary may choose to
     narrow or clarify activities that the Secretary chooses to
     retain in the definition of health care operations and the
     Secretary shall take into account the report under section
     424(d). In such regulations the Secretary shall specify the
     date on which such regulations shall apply to disclosures
     made by a covered entity, but in no case would such date be
     sooner than the date that is 24 months after the date of the
     enactment of this section.

[[Page H702]]

       (e) Prohibition on Sale of Electronic Health Records or
     Protected Health Information.--
       (1) In general.--Except as provided in paragraph (2), a
     covered entity or business associate shall not directly or
     indirectly receive remuneration in exchange for any protected
     health information of an individual unless the covered entity
     obtained from the individual, in accordance with section
     164.508 of title 45, Code of Federal Regulations, a valid
     authorization that includes, in accordance with such section,
     a specification of whether the protected health information
     can be further exchanged for remuneration by the entity
     receiving protected health information of that individual.
       (2) Exceptions.--Paragraph (1) shall not apply in the
     following cases:
       (A) The purpose of the exchange is for research or public
     health activities (as described in sections 164.501,
     164.512(i), and 164.512(b) of title 45, Code of Federal
     Regulations) and the price charged reflects the costs of
     preparation and transmittal of the data for such purpose.
       (B) The purpose of the exchange is for the treatment of the
     individual and the price charges reflects not more than the
     costs of preparation and transmittal of the data for such
     purpose.
       (C) The purpose of the exchange is the health care
     operation specifically described in subparagraph (iv) of
     paragraph (6) of the definition of health care operations in
     section 164.501 of title 45, Code of Federal Regulations.
       (D) The purpose of the exchange is for remuneration that is
     provided by a covered entity to a business associate for
     activities involving the exchange of protected health
     information that the business associate undertakes on behalf
     of and at the specific request of the covered entity pursuant
     to a business associate agreement.
       (E) The purpose of the exchange is to provide an individual
     with a copy of the individual's protected health information
     pursuant to section 164.524 of title 45, Code of Federal
     Regulations.
       (F) The purpose of the exchange is otherwise determined by
     the Secretary in regulations to be similarly necessary and
     appropriate as the exceptions provided in subparagraphs (A)
     through (E).
       (3) Regulations.--The Secretary shall promulgate
     regulations to carry out paragraph (this subsection,
     including exceptions described in paragraph (2), not later
     than 18 months after the date of the enactment of this title.
       (4) Effective date.--Paragraph (1) shall apply to exchanges
     occurring on or after the date that is 6 months after the
     date of the promulgation of final regulations implementing
     this subsection.
       (f) Access to Certain Information in Electronic Format.--In
     applying section 164.524 of title 45, Code of Federal
     Regulations, in the case that a covered entity uses or
     maintains an electronic health record with respect to
     protected health information of an individual--
       (1) the individual shall have a right to obtain from such
     covered entity a copy of such information in an electronic
     format; and
       (2) notwithstanding paragraph (c)(4) of such section, any
     fee that the covered entity may impose for providing such
     individual with a copy of such information (or a summary or
     explanation of such information) if such copy (or summary or
     explanation) is in an electronic form shall not be greater
     than the entity's labor costs in responding to the request
     for the copy (or summary or explanation).
       (g) Clarification.--Nothing in this subtitle shall
     constitute a waiver of any privilege otherwise applicable to
     an individual with respect to the protected health
     information of such individual.

     SEC. 4406. CONDITIONS ON CERTAIN CONTACTS AS PART OF HEALTH
                   CARE OPERATIONS.

       (a) Marketing.--
       (1) In general.--A communication by a covered entity or
     business associate that is about a product or service and
     that encourages recipients of the communication to purchase
     or use the product or service shall not be considered a
     health care operation for purposes of subpart E of part 164
     of title 45, Code of Federal Regulations, unless the
     communication is made as described in subparagraph (i), (ii),
     or (iii) of paragraph (1) of the definition of marketing in
     section 164.501 of such title.
       (2) Payment for certain communications.--A covered entity
     or business associate may not receive direct or indirect
     payment in exchange for making any communication described in
     subparagraph (i), (ii), or (iii) of paragraph (1) of the
     definition of marketing in section 164.501 of title 45, Code
     of Federal Regulations, except--
       (A) a business associate of a covered entity may receive
     payment from the covered entity for making any such
     communication on behalf of the covered entity that is
     consistent with the written contract (or other written
     arrangement) described in section 164.502(e)(2) of such title
     between such business associate and covered entity; or
       (B) a covered entity may receive payment in exchange for
     making any such communication if the entity obtains from the
     recipient of the communication, in accordance with section
     164.508 of title 45, Code of Federal Regulations, a valid
     authorization (as described in paragraph (b) of such section)
     with respect to such communication.
       (b) Fundraising.--Fundraising for the benefit of a covered
     entity shall not be considered a health care operation for
     purposes of section 164.501 of title 45, Code of Federal
     Regulations.
       (c) Effective Date.--This section shall apply to
     contracting occurring on or after the effective date
     specified under section 4423.

     SEC. 4407. TEMPORARY BREACH NOTIFICATION REQUIREMENT FOR
                   VENDORS OF PERSONAL HEALTH RECORDS AND OTHER
                   NON-HIPAA COVERED ENTITIES.

       (a) In General.--In accordance with subsection (c), each
     vendor of personal health records, following the discovery of
     a breach of security of unsecured PHR identifiable health
     information that is in a personal health record maintained or
     offered by such vendor, and each entity described in clause
     (ii) or (iii) of section 4424(b)(1)(A), following the
     discovery of a breach of security of such information that is
     obtained through a product or service provided by such
     entity, shall--
       (1) notify each individual who is a citizen or resident of
     the United States whose unsecured PHR identifiable health
     information was acquired by an unauthorized person as a
     result of such a breach of security; and
       (2) notify the Federal Trade Commission.
       (b) Notification by Third Party Service Providers.--A third
     party service provider that provides services to a vendor of
     personal health records or to an entity described in clause
     (ii) or (iii) of section 4424(b)(1)(A) in connection with the
     offering or maintenance of a personal health record or a
     related product or service and that accesses, maintains,
     retains, modifies, records, stores, destroys, or otherwise
     holds, uses, or discloses unsecured PHR identifiable health
     information in such a record as a result of such services
     shall, following the discovery of a breach of security of
     such information, notify such vendor or entity, respectively,
     of such breach. Such notice shall include the identification
     of each individual whose unsecured PHR identifiable health
     information has been, or is reasonably believed to have been,
     accessed, acquired, or disclosed during such breach.
       (c) Application of Requirements for Timeliness, Method, and
     Content of Notifications.--Subsections (c), (d), (e), and (f)
     of section 402 shall apply to a notification required under
     subsection (a) and a vendor of personal health records, an
     entity described in subsection (a) and a third party service
     provider described in subsection (b), with respect to a
     breach of security under subsection (a) of unsecured PHR
     identifiable health information in such records maintained or
     offered by such vendor, in a manner specified by the Federal
     Trade Commission.
       (d) Notification of the Secretary.--Upon receipt of a
     notification of a breach of security under subsection (a)(2),
     the Federal Trade Commission shall notify the Secretary of
     such breach.
       (e) Enforcement.--A violation of subsection (a) or (b)
     shall be treated as an unfair and deceptive act or practice
     in violation of a regulation under section 18(a)(1)(B) of the
     Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B))
     regarding unfair or deceptive acts or practices.
       (f) Definitions.--For purposes of this section:
       (1) Breach of security.--The term ``breach of security''
     means, with respect to unsecured PHR identifiable health
     information of an individual in a personal health record,
     acquisition of such information without the authorization of
     the individual.
       (2) PHR identifiable health information.--The term ``PHR
     identifiable health information'' means individually
     identifiable health information, as defined in section
     1171(6) of the Social Security Act (42 U.S.C. 1320d(6)), and
     includes, with respect to an individual, information--
       (A) that is provided by or on behalf of the individual; and
       (B) that identifies the individual or with respect to which
     there is a reasonable basis to believe that the information
     can be used to identify the individual.
       (3) Unsecured phr identifiable health information.--
       (A) In general.--Subject to subparagraph (B), the term
     ``unsecured PHR identifiable health information'' means PHR
     identifiable health information that is not protected through
     the use of a technology or methodology specified by the
     Secretary in the guidance issued under section 4402(h)(2).
       (B) Exception in case timely guidance not issued.--In the
     case that the Secretary does not issue guidance under section
     4402(h)(2) by the date specified in such section, for
     purposes of this section, the term ``unsecured PHR
     identifiable health information'' shall mean PHR identifiable
     health information that is not secured by a technology
     standard that renders protected health information unusable,
     unreadable, or indecipherable to unauthorized individuals and
     that is developed or endorsed by a standards developing
     organization that is accredited by the American National
     Standards Institute.
       (g) Regulations; Effective Date; Sunset.--
       (1) Regulations; effective date.--To carry out this
     section, the Secretary of Health and Human Services shall
     promulgate interim final regulations by not later than the
     date that is 180 days after the date of the enactment of this
     section. The provisions of this section shall apply to
     breaches of security that are discovered on or after the date

[[Page H703]]

     that is 30 days after the date of publication of such interim
     final regulations.
       (2) Sunset.--The provisions of this section shall not apply
     to breaches of security occurring on or after the earlier of
     the following the dates:
       (A) The date on which a standard relating to requirements
     for entities that are not covered entities that includes
     requirements relating to breach notification has been
     promulgated by the Secretary.
       (B) The date on which a standard relating to requirements
     for entities that are not covered entities that includes
     requirements relating to breach notification has been
     promulgated by the Federal Trade Commission and has taken
     effect.

     SEC. 4408. BUSINESS ASSOCIATE CONTRACTS REQUIRED FOR CERTAIN
                   ENTITIES.

       Each organization, with respect to a covered entity, that
     provides data transmission of protected health information to
     such entity (or its business associate) and that requires
     access on a routine basis to such protected health
     information, such as a Health Information Exchange
     Organization, Regional Health Information Organization, E-
     prescribing Gateway, or each vendor that contracts with a
     covered entity to allow that covered entity to offer a
     personal health record to patients as part of its electronic
     health record, is required to enter into a written contract
     (or other written arrangement) described in section
     164.502(e)(2) of title 45, Code of Federal Regulations and a
     written contract (or other arrangement) described in section
     164.308(b) of such title, with such entity and shall be
     treated as a business associate of the covered entity for
     purposes of the provisions of this subtitle and subparts C
     and E of part 164 of title 45, Code of Federal Regulations,
     as such provisions are in effect as of the date of enactment
     of this title.

     SEC. 4409. CLARIFICATION OF APPLICATION OF WRONGFUL
                   DISCLOSURES CRIMINAL PENALTIES.

       Section 1177(a) of the Social Security Act (42 U.S.C.
     1320d-6(a)) is amended by adding at the end the following new
     sentence: ``For purposes of the previous sentence, a person
     (including an employee or other individual) shall be
     considered to have obtained or disclosed individually
     identifiable health information in violation of this part if
     the information is maintained by a covered entity (as defined
     in the HIPAA privacy regulation described in section
     1180(b)(3)) and the individual obtained or disclosed such
     information without authorization.''.

     SEC. 4410. IMPROVED ENFORCEMENT.

       (a) In General.--Section 1176 of the Social Security Act
     (42 U.S.C. 1320d-5) is amended--
       (1) in subsection (b)(1), by striking ``the act constitutes
     an offense punishable under section 1177'' and inserting ``a
     penalty has been imposed under section 1177 with respect to
     such act''; and
       (2) by adding at the end the following new subsection:
       ``(c) Noncompliance Due to Willful Neglect.--
       ``(1) In general.--A violation of a provision of this part
     due to willful neglect is a violation for which the Secretary
     is required to impose a penalty under subsection (a)(1).
       ``(2) Required investigation.--For purposes of paragraph
     (1), the Secretary shall formally investigate any complaint
     of a violation of a provision of this part if a preliminary
     investigation of the facts of the complaint indicate such a
     possible violation due to willful neglect.''.
       (b) Effective Date; Regulations.--
       (1) The amendments made by subsection (a) shall apply to
     penalties imposed on or after the date that is 24 months
     after the date of the enactment of this title.
       (2) Not later than 18 months after the date of the
     enactment of this title, the Secretary of Health and Human
     Services shall promulgate regulations to implement such
     amendments.
       (c) Distribution of Certain Civil Monetary Penalties
     Collected.--
       (1) In general.--Subject to the regulation promulgated
     pursuant to paragraph (3), any civil monetary penalty or
     monetary settlement collected with respect to an offense
     punishable under this subtitle or section 1176 of the Social
     Security Act (42 U.S.C. 1320d-5) insofar as such section
     relates to privacy or security shall be transferred to the
     Office of Civil Rights of the Department of Health and Human
     Services to be used for purposes of enforcing the provisions
     of this subtitle and subparts C and E of part 164 of title
     45, Code of Federal Regulations, as such provisions are in
     effect as of the date of enactment of this Act.
       (2) GAO report.--Not later than 18 months after the date of
     the enactment of this title, the Comptroller General shall
     submit to the Secretary a report including recommendations
     for a methodology under which an individual who is harmed by
     an act that constitutes an offense referred to in paragraph
     (1) may receive a percentage of any civil monetary penalty or
     monetary settlement collected with respect to such offense.
       (3) Establishment of methodology to distribute percentage
     of cmps collected to harmed individuals.--Not later than 3
     years after the date of the enactment of this title, the
     Secretary shall establish by regulation and based on the
     recommendations submitted under paragraph (2), a methodology
     under which an individual who is harmed by an act that
     constitutes an offense referred to in paragraph (1) may
     receive a percentage of any civil monetary penalty or
     monetary settlement collected with respect to such offense.
       (4) Application of methodology.--The methodology under
     paragraph (3) shall be applied with respect to civil monetary
     penalties or monetary settlements imposed on or after the
     effective date of the regulation.
       (d) Tiered Increase in Amount of Civil Monetary
     Penalties.--
       (1) In general.--Section 1176(a)(1) of the Social Security
     Act (42 U.S.C. 1320d-5(a)(1)) is amended by striking ``who
     violates a provision of this part a penalty of not more
     than'' and all that follows and inserting the following:
     ``who violates a provision of this part--
       ``(A) in the case of a violation of such provision in which
     it is established that the person did not know (and by
     exercising reasonable diligence would not have known) that
     such person violated such provision, a penalty for each such
     violation of an amount that is at least the amount described
     in paragraph (3)(A) but not to exceed the amount described in
     paragraph (3)(D);
       ``(B) in the case of a violation of such provision in which
     it is established that the violation was due to reasonable
     cause and not to willful neglect, a penalty for each such
     violation of an amount that is at least the amount described
     in paragraph (3)(B) but not to exceed the amount described in
     paragraph (3)(D); and
       ``(C) in the case of a violation of such provision in which
     it is established that the violation was due to willful
     neglect--
       ``(i) if the violation is corrected as described in
     subsection (b)(3)(A), a penalty in an amount that is at least
     the amount described in paragraph (3)(C) but not to exceed
     the amount described in paragraph (3)(D); and
       ``(ii) if the violation is not corrected as described in
     such subsection, a penalty in an amount that is at least the
     amount described in paragraph (3)(D).

     In determining the amount of a penalty under this section for
     a violation, the Secretary shall base such determination on
     the nature and extent of the violation and the nature and
     extent of the harm resulting from such violation.''.
       (2) Tiers of penalties described.--Section 1176(a) of such
     Act (42 U.S.C. 1320d-5(a)) is further amended by adding at
     the end the following new paragraph:
       ``(3) Tiers of penalties described.--For purposes of
     paragraph (1), with respect to a violation by a person of a
     provision of this part--
       ``(A) the amount described in this subparagraph is $100 for
     each such violation, except that the total amount imposed on
     the person for all such violations of an identical
     requirement or prohibition during a calendar year may not
     exceed $25,000;
       ``(B) the amount described in this subparagraph is $1,000
     for each such violation, except that the total amount imposed
     on the person for all such violations of an identical
     requirement or prohibition during a calendar year may not
     exceed $100,000;
       ``(C) the amount described in this subparagraph is $10,000
     for each such violation, except that the total amount imposed
     on the person for all such violations of an identical
     requirement or prohibition during a calendar year may not
     exceed $250,000; and
       ``(D) the amount described in this subparagraph is $50,000
     for each such violation, except that the total amount imposed
     on the person for all such violations of an identical
     requirement or prohibition during a calendar year may not
     exceed $1,500,000.''.
       (3) Conforming amendments.--Section 1176(b) of such Act (42
     U.S.C. 1320d-5(b)) is amended--
       (A) by striking paragraph (2) and redesignating paragraphs
     (3) and (4) as paragraphs (2) and (3), respectively; and
       (B) in paragraph (2), as so redesignated--
       (i) in subparagraph (A), by striking ``in subparagraph (B),
     a penalty may not be imposed under subsection (a) if'' and
     all that follows through ``the failure to comply is
     corrected'' and inserting ``in subparagraph (B) or subsection
     (a)(1)(C), a penalty may not be imposed under subsection (a)
     if the failure to comply is corrected''; and
       (ii) in subparagraph (B), by striking ``(A)(ii)'' and
     inserting ``(A)'' each place it appears.
       (4) Effective date.--The amendments made by this subsection
     shall apply to violations occurring after the date of the
     enactment of this title.
       (e) Enforcement Through State Attorneys General.--
       (1) In general.--Section 1176 of the Social Security Act
     (42 U.S.C. 1320d-5) is amended by adding at the end the
     following new subsection:
       ``(c) Enforcement by State Attorneys General.--
       ``(1) Civil action.--Except as provided in subsection (b),
     in any case in which the attorney general of a State has
     reason to believe that an interest of one or more of the
     residents of that State has been or is threatened or
     adversely affected by any person who violates a provision of
     this part, the attorney general of the State, as parens
     patriae, may bring a civil action on behalf of such residents
     of the State in a district court of the United States of
     appropriate jurisdiction--
       ``(A) to enjoin further such violation by the defendant; or
       ``(B) to obtain damages on behalf of such residents of the
     State, in an amount equal to the amount determined under
     paragraph (2).

[[Page H704]]

       ``(2) Statutory damages.--
       ``(A) In general.--For purposes of paragraph (1)(B), the
     amount determined under this paragraph is the amount
     calculated by multiplying the number of violations by up to
     $100. For purposes of the preceding sentence, in the case of
     a continuing violation, the number of violations shall be
     determined consistent with the HIPAA privacy regulations (as
     defined in section 1180(b)(3)) for violations of subsection
     (a).
       ``(B) Limitation.--The total amount of damages imposed on
     the person for all violations of an identical requirement or
     prohibition during a calendar year may not exceed $25,000.
       ``(C) Reduction of damages.--In assessing damages under
     subparagraph (A), the court may consider the factors the
     Secretary may consider in determining the amount of a civil
     money penalty under subsection (a) under the HIPAA privacy
     regulations.
       ``(3) Attorney fees.--In the case of any successful action
     under paragraph (1), the court, in its discretion, may award
     the costs of the action and reasonable attorney fees to the
     State.
       ``(4) Notice to secretary.--The State shall serve prior
     written notice of any action under paragraph (1) upon the
     Secretary and provide the Secretary with a copy of its
     complaint, except in any case in which such prior notice is
     not feasible, in which case the State shall serve such notice
     immediately upon instituting such action. The Secretary shall
     have the right--
       ``(A) to intervene in the action;
       ``(B) upon so intervening, to be heard on all matters
     arising therein; and
       ``(C) to file petitions for appeal.
       ``(5) Construction.--For purposes of bringing any civil
     action under paragraph (1), nothing in this section shall be
     construed to prevent an attorney general of a State from
     exercising the powers conferred on the attorney general by
     the laws of that State.
       ``(6) Venue; service of process.--
       ``(A) Venue.--Any action brought under paragraph (1) may be
     brought in the district court of the United States that meets
     applicable requirements relating to venue under section 1391
     of title 28, United States Code.
       ``(B) Service of process.--In an action brought under
     paragraph (1), process may be served in any district in which
     the defendant--
       ``(i) is an inhabitant; or
       ``(ii) maintains a physical place of business.
       ``(7) Limitation on state action while federal action is
     pending.--If the Secretary has instituted an action against a
     person under subsection (a) with respect to a specific
     violation of this part, no State attorney general may bring
     an action under this subsection against the person with
     respect to such violation during the pendency of that action.
       ``(8) Application of cmp statute of limitation.--A civil
     action may not be instituted with respect to a violation of
     this part unless an action to impose a civil money penalty
     may be instituted under subsection (a) with respect to such
     violation consistent with the second sentence of section
     1128A(c)(1).''.
       (2) Conforming amendments.--Subsection (b) of such section,
     as amended by subsection (d)(3), is amended--
       (A) in paragraph (1), by striking ``A penalty may not be
     imposed under subsection (a)'' and inserting ``No penalty may
     be imposed under subsection (a) and no damages obtained under
     subsection (c)'';
       (B) in paragraph (2)(A)--
       (i) in the matter before clause (i), by striking ``a
     penalty may not be imposed under subsection (a)'' and
     inserting ``no penalty may be imposed under subsection (a)
     and no damages obtained under subsection (c)''; and
       (ii) in clause (ii), by inserting ``or damages'' after
     ``the penalty'';
       (C) in paragraph (2)(B)(i), by striking ``The period'' and
     inserting ``With respect to the imposition of a penalty by
     the Secretary under subsection (a), the period''; and
       (D) in paragraph (3), by inserting ``and any damages under
     subsection (c)'' after ``any penalty under subsection (a)''.
       (3) Effective date.--The amendments made by this subsection
     shall apply to violations occurring after the date of the
     enactment of this Act.
       (f) Allowing Continued Use of Corrective Action.--Such
     section is further amended by adding at the end the following
     new subsection:
       ``(d) Allowing Continued Use of Corrective Action.--Nothing
     in this section shall be construed as preventing the Office
     of Civil Rights of the Department of Health and Human
     Services from continuing, in its discretion, to use
     corrective action without a penalty in cases where the person
     did not know (and by exercising reasonable diligence would
     not have known) of the violation involved.''.

     SEC. 4411. AUDITS.

       The Secretary shall provide for periodic audits to ensure
     that covered entities and business associates that are
     subject to the requirements of this subtitle and subparts C
     and E of part 164 of title 45, Code of Federal Regulations,
     as such provisions are in effect as of the date of enactment
     of this Act, comply with such requirements.

     SEC. 4412. SPECIAL RULE FOR INFORMATION TO REDUCE MEDICATION
                   ERRORS AND IMPROVE PATIENT SAFETY.

       Nothing under this subtitle shall prevent a pharmacist from
     communicating with patients in order to reduce medication
     errors and improve patient safety provided there is no
     remuneration other than for the treatment of the individual
     and payment for such treatment of the individual as defined
     in 45 CFR 164.501.   The Secretary may by regulation
     authorize a pharmacy to receive remuneration that does not
     exceed their reasonable out-of-pocket costs for such
     communications if the Secretary determines that allowing this
     remuneration improves patient care and protects protected
     health information.

 PART II--RELATIONSHIP TO OTHER LAWS; REGULATORY REFERENCES; EFFECTIVE
                             DATE; REPORTS

     SEC. 4421. RELATIONSHIP TO OTHER LAWS.

       (a) Application of HIPAA State Preemption.--Section 1178 of
     the Social Security Act (42 U.S.C. 1320d-7) shall apply to a
     provision or requirement under this subtitle in the same
     manner that such section applies to a provision or
     requirement under part C of title XI of such Act or a
     standard or implementation specification adopted or
     established under sections 1172 through 1174 of such Act.
       (b) Health Insurance Portability and Accountability Act.--
     The standards governing the privacy and security of
     individually identifiable health information promulgated by
     the Secretary under sections 262(a) and 264 of the Health
     Insurance Portability and Accountability Act of 1996 shall
     remain in effect to the extent that they are consistent with
     this subtitle. The Secretary shall by rule amend such Federal
     regulations as required to make such regulations consistent
     with this subtitle.

     SEC. 4422. REGULATORY REFERENCES.

       Each reference in this subtitle to a provision of the Code
     of Federal Regulations refers to such provision as in effect
     on the date of the enactment of this title (or to the most
     recent update of such provision).

     SEC. 4423. EFFECTIVE DATE.

       Except as otherwise specifically provided, the provisions
     of part I shall take effect on the date that is 12 months
     after the date of the enactment of this title.

     SEC. 4424. STUDIES, REPORTS, GUIDANCE.

       (a) Report on Compliance.--
       (1) In general.--For the first year beginning after the
     date of the enactment of this Act and annually thereafter,
     the Secretary shall prepare and submit to the Committee on
     Health, Education, Labor, and Pensions of the Senate and the
     Committee on Ways and Means and the Committee on Energy and
     Commerce of the House of Representatives a report concerning
     complaints of alleged violations of law, including the
     provisions of this subtitle as well as the provisions of
     subparts C and E of part 164 of title 45, Code of Federal
     Regulations, (as such provisions are in effect as of the date
     of enactment of this Act) relating to privacy and security of
     health information that are received by the Secretary during
     the year for which the report is being prepared. Each such
     report shall include, with respect to such complaints
     received during the year--
       (A) the number of such complaints;
       (B) the number of such complaints resolved informally, a
     summary of the types of such complaints so resolved, and the
     number of covered entities that received technical assistance
     from the Secretary during such year in order to achieve
     compliance with such provisions and the types of such
     technical assistance provided;
       (C) the number of such complaints that have resulted in the
     imposition of civil monetary penalties or have been resolved
     through monetary settlements, including the nature of the
     complaints involved and the amount paid in each penalty or
     settlement;
       (D) the number of compliance reviews conducted and the
     outcome of each such review;
       (E) the number of subpoenas or inquiries issued;
       (F) the Secretary's plan for improving compliance with and
     enforcement of such provisions for the following year; and
       (G) the number of audits performed and a summary of audit
     findings pursuant to section 4411.
       (2) Availability to public.--Each report under paragraph
     (1) shall be made available to the public on the Internet
     website of the Department of Health and Human Services.
       (b) Study and Report on Application of Privacy and Security
     Requirements to Non-HIPAA Covered Entities.--
       (1) Study.--Not later than one year after the date of the
     enactment of this title, the Secretary, in consultation with
     the Federal Trade Commission, shall conduct a study, and
     submit a report under paragraph (2), on privacy and security
     requirements for entities that are not covered entities or
     business associates as of the date of the enactment of this
     title, including--
       (A) requirements relating to security, privacy, and
     notification in the case of a breach of security or privacy
     (including the applicability of an exemption to notification
     in the case of individually identifiable health information
     that has been rendered unusable, unreadable, or
     indecipherable through technologies or methodologies
     recognized by appropriate professional organization or
     standard setting bodies to provide effective security for the
     information) that should be applied to--
       (i) vendors of personal health records;
       (ii) entities that offer products or services through the
     website of a vendor of personal health records;
       (iii) entities that are not covered entities and that offer
     products or services through the websites of covered entities
     that offer individuals personal health records;

[[Page H705]]

       (iv) entities that are not covered entities and that access
     information in a personal health record or send information
     to a personal health record; and
       (v) third party service providers used by a vendor or
     entity described in clause (i), (ii), (iii), or (iv) to
     assist in providing personal health record products or
     services;
       (B) a determination of which Federal government agency is
     best equipped to enforce such requirements recommended to be
     applied to such vendors, entities, and service providers
     under subparagraph (A); and
       (C) a timeframe for implementing regulations based on such
     findings.
       (2) Report.--The Secretary shall submit to the Committee on
     Finance, the Committee on Health, Education, Labor, and
     Pensions, and the Committee on Commerce of the Senate and the
     Committee on Ways and Means and the Committee on Energy and
     Commerce of the House of Representatives a report on the
     findings of the study under paragraph (1) and shall include
     in such report recommendations on the privacy and security
     requirements described in such paragraph.
       (c) Guidance on Implementation Specification To De-Identify
     Protected Health Information.--Not later than 12 months after
     the date of the enactment of this title, the Secretary shall,
     in consultation with stakeholders, issue guidance on how best
     to implement the requirements for the de-identification of
     protected health information under section 164.514(b) of
     title 45, Code of Federal Regulations.
       (d) GAO Report on Treatment Disclosures.--Not later than
     one year after the date of the enactment of this title, the
     Comptroller General of the United States shall submit to the
     Committee on Health, Education, Labor, and Pensions of the
     Senate and the Committee on Ways and Means and the Committee
     on Energy and Commerce of the House of Representatives a
     report on the best practices related to the disclosure among
     health care providers of protected health information of an
     individual for purposes of treatment of such individual. Such
     report shall include an examination of the best practices
     implemented by States and by other entities, such as health
     information exchanges and regional health information
     organizations, an examination of the extent to which such
     best practices are successful with respect to the quality of
     the resulting health care provided to the individual and with
     respect to the ability of the health care provider to manage
     such best practices, and an examination of the use of
     electronic informed consent for disclosing protected health
     information for treatment, payment, and health care
     operations.

             Subtitle E--Miscellaneous Medicare Provisions

     SEC. 4501. MORATORIA ON CERTAIN MEDICARE REGULATIONS.

       (a) Delay in Phase Out of Medicare Hospice Budget
     Neutrality Adjustment Factor During Fiscal Year 2009.--
     Notwithstanding any other provision of law, including the
     final rule published on August 8, 2008, 73 Federal Register
     46464 et seq., relating to Medicare Program; Hospice Wage
     Index for Fiscal Year 2009, the Secretary of Health and Human
     Services shall not phase out or eliminate the budget
     neutrality adjustment factor in the Medicare hospice wage
     index before October 1, 2009, and the Secretary shall
     recompute and apply the final Medicare hospice wage index for
     fiscal year 2009 as if there had been no reduction in the
     budget neutrality adjustment factor.
       (b) Non-Application of Phased-Out Indirect Medical
     Education (IME) Adjustment Factor for Fiscal Year 2009.--
       (1) In general.--Section 412.322 of title 42, Code of
     Federal Regulations, shall be applied without regard to
     paragraph (c) of such section, and the Secretary of Health
     and Human Services shall recompute payments for discharges
     occurring on or after October 1, 2008, as if such paragraph
     had never been in effect.
       (2) No effect on subsequent years.--Nothing in paragraph
     (1) shall be construed as having any effect on the
     application of paragraph (d) of section 412.322 of title 42,
     Code of Federal Regulations.
       (c) Funding for Implementation.--In addition to funds
     otherwise available, for purposes of implementing the
     provisions of subsections (a) and (b), including costs
     incurred in reprocessing claims in carrying out such
     provisions, the Secretary of Health and Human Services shall
     provide for the transfer from the Federal Hospital Insurance
     Trust Fund established under section 1817 of the Social
     Security Act (42 U.S.C. 1395i) to the Centers for Medicare &
     Medicaid Services Program Management Account of $2,000,000
     for fiscal year 2009.

     SEC. 4502. LONG-TERM CARE HOSPITAL TECHNICAL CORRECTIONS.

       (a) Payment.--Subsection (c) of section 114 of the
     Medicare, Medicaid, and SCHIP Extension Act of 2007 (Public
     Law 110-173) is amended--
       (1) in paragraph (1)--
       (A) by amending the heading to read as follows: ``Delay in
     application of 25 percent patient threshold payment
     adjustment'';
       (B) by striking ``the date of the enactment of this Act''
     and inserting ``July 1, 2007,''; and
       (C) in subparagraph (A), by inserting ``or to a long-term
     care hospital, or satellite facility, that as of December 29,
     2007, was co-located with an entity that is a provider-based,
     off-campus location of a subsection (d) hospital which did
     not provide services payable under section 1886(d) of the
     Social Security Act at the off-campus location'' after
     ``freestanding long-term care hospitals''; and
       (2) in paragraph (2)--
       (A) in subparagraph (B)(ii), by inserting ``or that is
     described in section 412.22(h)(3)(i) of such title'' before
     the period; and
       (B) in subparagraph (C), by striking ``the date of the
     enactment of this Act'' and inserting ``October 1, 2007 (or
     July 1, 2007, in the case of a satellite facility described
     in section 412.22(h)(3)(i) of title 42, Code of Federal
     Regulations)''.
       (b) Moratorium.--Subsection (d)(3)(A) of such section is
     amended by striking ``if the hospital or facility'' and
     inserting ``if the hospital or facility obtained a
     certificate of need for an increase in beds that is in a
     State for which such certificate of need is required and that
     was issued on or after April 1, 2005, and before December 29,
     2007, or if the hospital or facility''.
       (c) Effective Date.--The amendments made by this section
     shall be effective and apply as if included in the enactment
     of the Medicare, Medicaid, and SCHIP Extension Act of 2007
     (Public Law 110-173).

                      TITLE V--MEDICAID PROVISIONS

     SEC. 5000. TABLE OF CONTENTS OF TITLE.

       The table of contents of this title is as follows:

Sec. 5000. Table of contents of title.
Sec. 5001. Temporary increase of Medicaid FMAP.
Sec. 5002. Moratoria on certain regulations.
Sec. 5003. Transitional Medicaid assistance (TMA).
Sec. 5004. Protections for Indians under Medicaid and CHIP.
Sec. 5005. Consultation on Medicaid and CHIP.
Sec. 5006. Temporary increase in DSH allotments during recession.

     SEC. 5001. TEMPORARY INCREASE OF MEDICAID FMAP.

       (a) Permitting Maintenance of FMAP.--Subject to subsections
     (e), (f), and (g), if the FMAP determined without regard to
     this section for a State for--
       (1) fiscal year 2009 is less than the FMAP as so determined
     for fiscal year 2008, the FMAP for the State for fiscal year
     2008 shall be substituted for the State's FMAP for fiscal
     year 2009, before the application of this section;
       (2) fiscal year 2010 is less than the FMAP as so determined
     for fiscal year 2008 or fiscal year 2009 (after the
     application of paragraph (1)), the greater of such FMAP for
     the State for fiscal year 2008 or fiscal year 2009 shall be
     substituted for the State's FMAP for fiscal year 2010, before
     the application of this section; and
       (3) fiscal year 2011 is less than the FMAP as so determined
     for fiscal year 2008, fiscal year 2009 (after the application
     of paragraph (1)), or fiscal year 2010 (after the application
     of paragraph (2)), the greatest of such FMAP for the State
     for fiscal year 2008, fiscal year 2009, or fiscal year 2010
     shall be substituted for the State's FMAP for fiscal year
     2011, before the application of this section, but only for
     the first calendar quarter in fiscal year 2011.
       (b) General 4.9 Percentage Point Increase.--
       (1) In general.--Subject to subsections (e), (f), and (g)
     and paragraph (2), for each State for calendar quarters
     during the recession adjustment period (as defined in
     subsection (h)(2)), the FMAP (after the application of
     subsection (a)) shall be increased (without regard to any
     limitation otherwise specified in section 1905(b) of the
     Social Security Act) by 4.9 percentage points.
       (2) Special election for territories.--In the case of a
     State that is not one of the 50 States or the District of
     Columbia, paragraph (1) shall only apply if the State makes a
     one-time election, in a form and manner specified by the
     Secretary and for the entire recession adjustment period, to
     apply the increase in FMAP under paragraph (1) and a 10
     percent increase under subsection (d) instead of applying a
     20 percent increase under subsection (d).
       (c) Additional Adjustment To Reflect Increase in
     Unemployment.--
       (1) In general.--Subject to subsections (e), (f), and (g),
     in the case of a State that is a high unemployment State (as
     defined in paragraph (2)) for a calendar quarter during the
     recession adjustment period, the FMAP (taking into account
     the application of subsections (a) and (b)) for such quarter
     shall be further increased by the high unemployment
     percentage point adjustment specified in paragraph (3) for
     the State for the quarter.
       (2) High unemployment state.--
       (A) In general.--In this subsection, subject to
     subparagraph (B), the term ``high unemployment State'' means,
     with respect to a calendar quarter in the recession
     adjustment period, a State that is 1 of the 50 States or the
     District of Columbia and for which the State unemployment
     increase percentage (as computed under paragraph (5)) for the
     quarter is not less than 1.5 percentage points.
       (B) Maintenance of status.--If a State is a high
     unemployment State for a calendar quarter, it shall remain a
     high unemployment State for each subsequent calendar quarter
     ending before July 1, 2010.
       (3) High unemployment percentage point adjustment.--
       (A) In general.--The high unemployment percentage point
     adjustment specified in this paragraph for a high
     unemployment State for a quarter is equal to the product of--
       (i) the SMAP for such State and quarter (determined after
     the application of subsection (a) and before the application
     of subsection (b)); and

[[Page H706]]

       (ii) subject to subparagraph (B), the State unemployment
     reduction factor specified in paragraph (4) for the State and
     quarter.
       (B) Maintenance of adjustment level for certain quarters.--
     In no case shall the State unemployment reduction factor
     applied under subparagraph (A)(ii) for a State for a quarter
     (beginning on or after January 1, 2009, and ending before
     July 1, 2010) be less than the State unemployment reduction
     factor applied to the State for the previous quarter (taking
     into account the application of this subparagraph).
       (4) State unemployment reduction factor.--In the case of a
     high unemployment State for which the State unemployment
     increase percentage (as computed under paragraph (5)) with
     respect to a calendar quarter is--
       (A) not less than 1.5, but is less than 2.5, percentage
     points, the State unemployment reduction factor for the State
     and quarter is 6 percent;
       (B) not less than 2.5, but is less than 3.5, percentage
     points, the State unemployment reduction factor for the State
     and quarter is 12 percent; or
       (C) not less than 3.5 percentage points, the State
     unemployment reduction factor for the State and quarter is 14
     percent.
       (5) Computation of state unemployment increase
     percentage.--
       (A) In general.--In this subsection, the ``State
     unemployment increase percentage'' for a State for a calendar
     quarter is equal to the number of percentage points (if any)
     by which--
       (i) the average monthly unemployment rate for the State for
     months in the most recent previous 3-consecutive-month period
     for which data are available, subject to subparagraph (C);
     exceeds
       (ii) the lowest average monthly unemployment rate for the
     State for any 3-consecutive-month period preceding the period
     described in clause (i) and beginning on or after January 1,
     2006.
       (B) Average monthly unemployment rate defined.--In this
     paragraph, the term ``average monthly unemployment rate''
     means the average of the monthly number unemployed, divided
     by the average of the monthly civilian labor force,
     seasonally adjusted, as determined based on the most recent
     monthly publications of the Bureau of Labor Statistics of the
     Department of Labor.
       (C) Special rule.--With respect to--
       (i) the first 2 calendar quarters of the recession
     adjustment period, the most recent previous 3-consecutive-
     month period described in subparagraph (A)(i) shall be the 3-
     consecutive-month period beginning with October 2008; and
       (ii) the last 2 calendar quarters of the recession
     adjustment period, the most recent previous 3-consecutive-
     month period described in such subparagraph shall be the 3-
     consecutive-month period beginning with December 2009.
       (d)  Increase in Cap on Medicaid Payments to Territories.--
     Subject to subsections (f) and (g) , with respect to entire
     fiscal years occurring during the recession adjustment period
     and with respect to fiscal years only a portion of which
     occurs during such period (and in proportion to the portion
     of the fiscal year that occurs during such period), the
     amounts otherwise determined for Puerto Rico, the Virgin
     Islands, Guam, the Northern Mariana Islands, and American
     Samoa under subsections (f) and (g) of section 1108 of the
     Social Security Act (42 U.S.C. 1308) shall each be increased
     by 20 percent (or, in the case of an election under
     subsection (b)(2), 10 percent).
       (e) Scope of Application.--The increases in the FMAP for a
     State under this section shall apply for purposes of title
     XIX of the Social Security Act and--
       (1) the increases applied under subsections (a), (b), and
     (c) shall not apply with respect--
       (A) to payments under parts A, B, and D of title IV or
     title XXI of such Act (42 U.S.C. 601 et seq. and 1397aa et
     seq.);
       (B) to payments under title XIX of such Act that are based
     on the enhanced FMAP described in section 2105(b) of such Act
     (42 U.S.C. 1397ee(b)); and
       (C) to payments for disproportionate share hospital (DSH)
     payment adjustments under section 1923 of such Act (42 U.S.C.
     1396r-4); and
       (2) the increase provided under subsection (c) shall not
     apply with respect to payments under part E of title IV of
     such Act.
       (f) State Ineligibility and Limitation.--
       (1) In general.--Subject to paragraphs (2) and (3), a State
     is not eligible for an increase in its FMAP under subsection
     (a), (b), or (c), or an increase in a cap amount under
     subsection (d), if eligibility standards, methodologies, or
     procedures under its State plan under title XIX of the Social
     Security Act (including any waiver under such title or under
     section 1115 of such Act (42 U.S.C. 1315)) are more
     restrictive than the eligibility standards, methodologies, or
     procedures, respectively, under such plan (or waiver) as in
     effect on July 1, 2008.
       (2) State reinstatement of eligibility permitted.--Subject
     to paragraph (3), a State that has restricted eligibility
     standards, methodologies, or procedures under its State plan
     under title XIX of the Social Security Act (including any
     waiver under such title or under section 1115 of such Act (42
     U.S.C. 1315)) after July 1, 2008, is no longer ineligible
     under paragraph (1) beginning with the first calendar quarter
     in which the State has reinstated eligibility standards,
     methodologies, or procedures that are no more restrictive
     than the eligibility standards, methodologies, or procedures,
     respectively, under such plan (or waiver) as in effect on
     July 1, 2008.
       (3) Special rules.--A State shall not be ineligible under
     paragraph (1)--
       (A) for the calendar quarters before July 1, 2009, on the
     basis of a restriction that was applied after July 1, 2008,
     and before the date of the enactment of this Act, if the
     State, prior to July 1, 2009, reinstated eligibility
     standards, methodologies, or procedures that are no more
     restrictive than the eligibility standards, methodologies, or
     procedures, respectively, under such plan (or waiver) as in
     effect on July 1, 2008; or
       (B) on the basis of a restriction that was effective under
     State law as of July 1, 2008, and would have been in effect
     as of such date, but for a delay (of not longer than 1
     calendar quarter) in the approval of a request for a new
     waiver under section 1115 of such Act with respect to such
     restriction.
       (4) State's application toward rainy day fund.--A State is
     not eligible for an increase in its FMAP under subsection (b)
     or (c), or an increase in a cap amount under subsection (d),
     if any amounts attributable (directly or indirectly) to such
     increase are deposited or credited into any reserve or rainy
     day fund of the State.
       (5) Rule of construction.--Nothing in paragraph (1) or (2)
     shall be construed as affecting a State's flexibility with
     respect to benefits offered under the State Medicaid program
     under title XIX of the Social Security Act (42 U.S.C. 1396 et
     seq.) (including any waiver under such title or under section
     1115 of such Act (42 U.S.C. 1315)).
       (6) No waiver authority.--The Secretary may not waive the
     application of this subsection or subsection (g) under
     section 1115 of the Social Security Act or otherwise.
       (g) Requirement for Certain States.--In the case of a State
     that requires political subdivisions within the State to
     contribute toward the non-Federal share of expenditures under
     the State Medicaid plan required under section 1902(a)(2) of
     the Social Security Act (42 U.S.C. 1396a(a)(2)), the State is
     not eligible for an increase in its FMAP under subsection
     (a), (b), or (c), or an increase in a cap amount under
     subsection (d), if it requires that such political
     subdivisions pay a greater percentage of the non-Federal
     share of such expenditures for quarters during the recession
     adjustment period, than the percentage that would have been
     required by the State under such plan on September 30, 2008,
     prior to application of this section.
       (h) Definitions.--In this section, except as otherwise
     provided:
       (1) FMAP.--The term ``FMAP'' means the Federal medical
     assistance percentage, as defined in section 1905(b) of the
     Social Security Act (42 U.S.C. 1396d(b)), as determined
     without regard to this section except as otherwise specified.
       (2) Recession adjustment period.--The term ``recession
     adjustment period'' means the period beginning on October 1,
     2008, and ending on December 31, 2010.
       (3) Secretary.--The term ``Secretary'' means the Secretary
     of Health and Human Services.
       (4) SMAP.--The term ``SMAP'' means, for a State, 100
     percent minus the Federal medical assistance percentage.
       (5) State.--The term ``State'' has the meaning given such
     term in section 1101(a)(1) of the Social Security Act (42
     U.S.C. 1301(a)(1)) for purposes of title XIX of the Social
     Security Act (42 U.S.C. 1396 et seq.).
       (i) Sunset.--This section shall not apply to items and
     services furnished after the end of the recession adjustment
     period.

     SEC. 5002. MORATORIA ON CERTAIN REGULATIONS.

       (a) Extension of Moratoria on Certain Medicaid
     Regulations.--The following sections are each amended by
     striking ``April 1, 2009'' and inserting ``July 1, 2009'':
       (1) Section 7002(a)(1) of the U.S. Troop Readiness,
     Veterans' Care, Katrina Recovery, and Iraq Accountability
     Appropriations Act, 2007 (Public Law 110-28), as amended by
     section 7001(a)(1) of the Supplemental Appropriations Act,
     2008 (Public Law 110-252).
       (2) Section 206 of the Medicare, Medicaid, and SCHIP
     Extension Act of 2007 (Public Law 110-173), as amended by
     section 7001(a)(2) of the Supplemental Appropriations Act,
     2008 (Public Law 110-252).
       (3) Section 7001(a)(3)(A) of the Supplemental
     Appropriations Act, 2008 (Public Law 110-252).
       (b) Additional Medicaid Moratorium.--Notwithstanding any
     other provision of law, with respect to expenditures for
     services furnished during the period beginning on December 8,
     2008 and ending on June 30, 2009, the Secretary of Health and
     Human Services shall not take any action (through
     promulgation of regulation, issuance of regulatory guidance,
     use of Federal payment audit procedures, or other
     administrative action, policy, or practice, including a
     Medical Assistance Manual transmittal or letter to State
     Medicaid directors) to implement the final regulation
     relating to clarification of the definition of outpatient
     hospital facility services under the Medicaid program
     published on November 7, 2008 (73 Federal Register 66187).

     SEC. 5003. TRANSITIONAL MEDICAID ASSISTANCE (TMA).

       (a) 18-Month Extension.--
       (1) In general.--Sections 1902(e)(1)(B) and 1925(f) of the
     Social Security Act (42 U.S.C.

[[Page H707]]

     1396a(e)(1)(B), 1396r-6(f)) are each amended by striking
     ``September 30, 2003'' and inserting ``December 31, 2010''.
       (2) Effective date.--The amendments made by this subsection
     shall take effect on July 1, 2009.
       (b) State Option of Initial 12-Month Eligibility.--Section
     1925 of the Social Security Act (42 U.S.C. 1396r-6) is
     amended--
       (1) in subsection (a)(1), by inserting ``but subject to
     paragraph (5)'' after ``Notwithstanding any other provision
     of this title'';
       (2) by adding at the end of subsection (a) the following:
       ``(5) Option of 12-month initial eligibility period.--A
     State may elect to treat any reference in this subsection to
     a 6-month period (or 6 months) as a reference to a 12-month
     period (or 12 months). In the case of such an election,
     subsection (b) shall not apply.''; and
       (3) in subsection (b)(1), by inserting ``but subject to
     subsection (a)(5)'' after ``Notwithstanding any other
     provision of this title''.
       (c) Removal of Requirement for Previous Receipt of Medical
     Assistance.--Section 1925(a)(1) of such Act (42 U.S.C. 1396r-
     6(a)(1)), as amended by subsection (b)(1), is further
     amended--
       (1) by inserting ``subparagraph (B) and'' before
     ``paragraph (5)'';
       (2) by redesignating the matter after ``Requirement.--'' as
     a subparagraph (A) with the heading ``In general.--'' and
     with the same indentation as subparagraph (B) (as added by
     paragraph (3)); and
       (3) by adding at the end the following:
       ``(B) State option to waive requirement for 3 months before
     receipt of medical assistance.--A State may, at its option,
     elect also to apply subparagraph (A) in the case of a family
     that was receiving such aid for fewer than three months or
     that had applied for and was eligible for such aid for fewer
     than 3 months during the 6 immediately preceding months
     described in such subparagraph.''.
       (d) CMS Report on Enrollment and Participation Rates Under
     TMA.--Section 1925 of such Act (42 U.S.C. 1396r-6), as
     amended by this section, is further amended by adding at the
     end the following new subsection:
       ``(g) Collection and Reporting of Participation
     Information.--
       ``(1) Collection of information from states.--Each State
     shall collect and submit to the Secretary (and make publicly
     available), in a format specified by the Secretary,
     information on average monthly enrollment and average monthly
     participation rates for adults and children under this
     section and of the number and percentage of children who
     become ineligible for medical assistance under this section
     whose medical assistance is continued under another
     eligibility category or who are enrolled under the State's
     child health plan under title XXI. Such information shall be
     submitted at the same time and frequency in which other
     enrollment information under this title is submitted to the
     Secretary.
       ``(2) Annual reports to congress.--Using the information
     submitted under paragraph (1), the Secretary shall submit to
     Congress annual reports concerning enrollment and
     participation rates described in such paragraph.''.
       (e) Effective Date.--The amendments made by subsections (b)
     through (d) shall take effect on July 1, 2009.
       (A) in subclause (XIX), by striking ``or'' at the end;
       (B) in subclause (XX), by adding ``or'' at the end; and
       (C) by adding at the end the following new subclause:
       ``(XXI) who are described in subsection (ee) (relating to
     individuals who meet certain income standards);''.
       (2) Group described.--Section 1902 of such Act (42 U.S.C.
     1396a), as amended by section 3003(a) of the Health Insurance
     Assistance for the Unemployed Act of 2009, is amended by
     adding at the end the following new subsection:
       ``(ee)(1) Individuals described in this subsection are
     individuals--
       ``(A) whose income does not exceed an income eligibility
     level established by the State that does not exceed the
     highest income eligibility level established under the State
     plan under this title (or under its State child health plan
     under title XXI) for pregnant women; and
       ``(B) who are not pregnant.
       ``(2) At the option of a State, individuals described in
     this subsection may include individuals who, had individuals
     applied on or before January 1, 2007, would have been made
     eligible pursuant to the standards and processes imposed by
     that State for benefits described in clause (XV) of the
     matter following subparagraph (G) of section subsection
     (a)(10) pursuant to a waiver granted under section 1115.
       ``(3) At the option of a State, for purposes of subsection
     (a)(17)(B), in determining eligibility for services under
     this subsection, the State may consider only the income of
     the applicant or recipient.''.
       (3) Limitation on benefits.--Section 1902(a)(10) of the
     Social Security Act (42 U.S.C. 1396a(a)(10)) is amended in
     the matter following subparagraph (G)--
       (A) by striking ``and (XIV)'' and inserting ``(XIV)''; and
       (B) by inserting ``, and (XV) the medical assistance made
     available to an individual described in subsection (ee) shall
     be limited to family planning services and supplies described
     in section 1905(a)(4)(C) including medical diagnosis and
     treatment services that are provided pursuant to a family
     planning service in a family planning setting'' after
     ``cervical cancer''.
       (4) Conforming amendments.--Section 1905(a) of the Social
     Security Act (42 U.S.C. 1396d(a)), as amended by section
     3003(c)(2) of the Health Insurance Assistance for the
     Unemployed Act of 2009, is amended in the matter preceding
     paragraph (1)--
       (A) in clause (xiii), by striking ``or'' at the end;
       (B) in clause (xiv), by adding ``or'' at the end; and
       (C) by inserting after clause (xiii) the following:
       ``(xv) individuals described in section 1902(ee),''.
       (b) Presumptive Eligibility.--
       (1) In general.--Title XIX of the Social Security Act (42
     U.S.C. 1396 et seq.) is amended by inserting after section
     1920B the following:


         ``presumptive eligibility for family planning services

       ``Sec. 1920C.  (a) State Option.--State plan approved under
     section 1902 may provide for making medical assistance
     available to an individual described in section 1902(ee)
     (relating to individuals who meet certain income eligibility
     standard) during a presumptive eligibility period. In the
     case of an individual described in section 1902(ee), such
     medical assistance shall be limited to family planning
     services and supplies described in 1905(a)(4)(C) and, at the
     State's option, medical diagnosis and treatment services that
     are provided in conjunction with a family planning service in
     a family planning setting.
       ``(b) Definitions.--For purposes of this section:
       ``(1) Presumptive eligibility period.--The term
     `presumptive eligibility period' means, with respect to an
     individual described in subsection (a), the period that--
       ``(A) begins with the date on which a qualified entity
     determines, on the basis of preliminary information, that the
     individual is described in section 1902(ee); and
       ``(B) ends with (and includes) the earlier of--
       ``(i) the day on which a determination is made with respect
     to the eligibility of such individual for services under the
     State plan; or
       ``(ii) in the case of such an individual who does not file
     an application by the last day of the month following the
     month during which the entity makes the determination
     referred to in subparagraph (A), such last day.
       ``(2) Qualified entity.--
       ``(A) In general.--Subject to subparagraph (B), the term
     `qualified entity' means any entity that--
       ``(i) is eligible for payments under a State plan approved
     under this title; and
       ``(ii) is determined by the State agency to be capable of
     making determinations of the type described in paragraph
     (1)(A).
       ``(B) Rule of construction.--Nothing in this paragraph
     shall be construed as preventing a State from limiting the
     classes of entities that may become qualified entities in
     order to prevent fraud and abuse.
       ``(c) Administration.--
       ``(1) In general.--The State agency shall provide qualified
     entities with--
       ``(A) such forms as are necessary for an application to be
     made by an individual described in subsection (a) for medical
     assistance under the State plan; and
       ``(B) information on how to assist such individuals in
     completing and filing such forms.
       ``(2) Notification requirements.--A qualified entity that
     determines under subsection (b)(1)(A) that an individual
     described in subsection (a) is presumptively eligible for
     medical assistance under a State plan shall--
       ``(A) notify the State agency of the determination within 5
     working days after the date on which determination is made;
     and
       ``(B) inform such individual at the time the determination
     is made that an application for medical assistance is
     required to be made by not later than the last day of the
     month following the month during which the determination is
     made.
       ``(3) Application for medical assistance.--In the case of
     an individual described in subsection (a) who is determined
     by a qualified entity to be presumptively eligible for
     medical assistance under a State plan, the individual shall
     apply for medical assistance by not later than the last day
     of the month following the month during which the
     determination is made.
       ``(d) Payment.--Notwithstanding any other provision of law,
     medical assistance that--
       ``(1) is furnished to an individual described in subsection
     (a)--
       ``(A) during a presumptive eligibility period;
       ``(B) by a entity that is eligible for payments under the
     State plan; and
       ``(2) is included in the care and services covered by the
     State plan,
     shall be treated as medical assistance provided by such plan
     for purposes of clause (4) of the first sentence of section
     1905(b).''.
       (2) Conforming amendments.--
       (A) Section 1902(a)(47) of the Social Security Act (42
     U.S.C. 1396a(a)(47)) is amended by inserting before the
     semicolon at the end the following: ``and provide for making
     medical assistance available to individuals described in
     subsection (a) of section 1920C during a presumptive
     eligibility period in accordance with such section''.

[[Page H708]]

       (B) Section 1903(u)(1)(D)(v) of such Act (42 U.S.C.
     1396b(u)(1)(D)(v)) is amended--
       (i) by striking ``or for'' and inserting ``for''; and
       (ii) by inserting before the period the following: ``, or
     for medical assistance provided to an individual described in
     subsection (a) of section 1920C during a presumptive
     eligibility period under such section''.
       (c) Clarification of Coverage of Family Planning Services
     and Supplies.--Section 1937(b) of the Social Security Act (42
     U.S.C. 1396u-7(b)) is amended by adding at the end the
     following:
       ``(5) Coverage of family planning services and supplies.--
     Notwithstanding the previous provisions of this section, a
     State may not provide for medical assistance through
     enrollment of an individual with benchmark coverage or
     benchmark-equivalent coverage under this section unless such
     coverage includes for any individual described in section
     1905(a)(4)(C), medical assistance for family planning
     services and supplies in accordance with such section.''.

     SEC. 5004. PROTECTIONS FOR INDIANS UNDER MEDICAID AND CHIP.

       (a) Premiums and Cost Sharing Protection Under Medicaid.--
       (1) In general.--Section 1916 of the Social Security Act
     (42 U.S.C. 1396o) is amended--
       (A) in subsection (a), in the matter preceding paragraph
     (1), by striking ``and (i)'' and inserting ``, (i), and
     (j)''; and
       (B) by adding at the end the following new subsection:
       ``(j) No Premiums or Cost Sharing for Indians Furnished
     Items or Services Directly by Indian Health Programs or
     Through Referral Under Contract Health Services.--
       ``(1) No cost sharing for items or services furnished to
     indians through indian health programs.--
       ``(A) In general.--No enrollment fee, premium, or similar
     charge, and no deduction, copayment, cost sharing, or similar
     charge shall be imposed against an Indian who is furnished an
     item or service directly by the Indian Health Service, an
     Indian Tribe, Tribal Organization, or Urban Indian
     Organization or through referral under contract health
     services for which payment may be made under this title.
       ``(B) No reduction in amount of payment to indian health
     providers.--Payment due under this title to the Indian Health
     Service, an Indian Tribe, Tribal Organization, or Urban
     Indian Organization, or a health care provider through
     referral under contract health services for the furnishing of
     an item or service to an Indian who is eligible for
     assistance under such title, may not be reduced by the amount
     of any enrollment fee, premium, or similar charge, or any
     deduction, copayment, cost sharing, or similar charge that
     would be due from the Indian but for the operation of
     subparagraph (A).
       ``(2) Rule of construction.--Nothing in this subsection
     shall be construed as restricting the application of any
     other limitations on the imposition of premiums or cost
     sharing that may apply to an individual receiving medical
     assistance under this title who is an Indian.''.
       (2) Conforming amendment.--Section 1916A(b)(3) of such Act
     (42 U.S.C. 1396o-1(b)(3)) is amended--
       (A) in subparagraph (A), by adding at the end the following
     new clause:
       ``(vi) An Indian who is furnished an item or service
     directly by the Indian Health Service, an Indian Tribe,
     Tribal Organization or Urban Indian Organization or through
     referral under contract health services.''; and
       (B) in subparagraph (B), by adding at the end the following
     new clause:
       ``(ix) Items and services furnished to an Indian directly
     by the Indian Health Service, an Indian Tribe, Tribal
     Organization or Urban Indian Organization or through referral
     under contract health services.''.
       (3) Effective date.--The amendments made by this subsection
     shall take effect on October 1, 2009.
       (b) Treatment of Certain Property From Resources for
     Medicaid and CHIP Eligibility.--
       (1) Medicaid.--Section 1902 of the Social Security Act (42
     U.S.C. 1396a), as amended by section 3003(a) of the Health
     Insurance Assistance for the Unemployed Act of 2009, is
     amended by adding at the end the following new subsection:
       ``(ee) Notwithstanding any other requirement of this title
     or any other provision of Federal or State law, a State shall
     disregard the following property from resources for purposes
     of determining the eligibility of an individual who is an
     Indian for medical assistance under this title:
       ``(1) Property, including real property and improvements,
     that is held in trust, subject to Federal restrictions, or
     otherwise under the supervision of the Secretary of the
     Interior, located on a reservation, including any federally
     recognized Indian Tribe's reservation, pueblo, or colony,
     including former reservations in Oklahoma, Alaska Native
     regions established by the Alaska Native Claims Settlement
     Act, and Indian allotments on or near a reservation as
     designated and approved by the Bureau of Indian Affairs of
     the Department of the Interior.
       ``(2) For any federally recognized Tribe not described in
     paragraph (1), property located within the most recent
     boundaries of a prior Federal reservation.
       ``(3) Ownership interests in rents, leases, royalties, or
     usage rights related to natural resources (including
     extraction of natural resources or harvesting of timber,
     other plants and plant products, animals, fish, and
     shellfish) resulting from the exercise of federally protected
     rights.
       ``(4) Ownership interests in or usage rights to items not
     covered by paragraphs (1) through (3) that have unique
     religious, spiritual, traditional, or cultural significance
     or rights that support subsistence or a traditional lifestyle
     according to applicable tribal law or custom.''.
       (2) Application to chip.--Section 2107(e)(1) of such Act
     (42 U.S.C. 1397gg(e)(1)) is amended by adding at the end the
     following new subparagraph:
       ``(E) Section 1902(ff) (relating to disregard of certain
     property for purposes of making eligibility
     determinations).''.
       (c) Continuation of Current Law Protections of Certain
     Indian Property From Medicaid Estate Recovery.--Section
     1917(b)(3) of the Social Security Act (42 U.S.C. 1396p(b)(3))
     is amended--
       (1) by inserting ``(A)'' after ``(3)''; and
       (2) by adding at the end the following new subparagraph:
       ``(B) The standards specified by the Secretary under
     subparagraph (A) shall require that the procedures
     established by the State agency under subparagraph (A) exempt
     income, resources, and property that are exempt from the
     application of this subsection as of April 1, 2003, under
     manual instructions issued to carry out this subsection (as
     in effect on such date) because of the Federal responsibility
     for Indian Tribes and Alaska Native Villages. Nothing in this
     subparagraph shall be construed as preventing the Secretary
     from providing additional estate recovery exemptions under
     this title for Indians.''.

     SEC. 5005. CONSULTATION ON MEDICAID AND CHIP.

       (a) In General.--Section 1139 of the Social Security Act
     (42 U.S.C. 1320b-9) is amended to read as follows:


       ``consultation with tribal technical advisory group (ttag)

       ``Sec. 1139. The Secretary shall maintain within the
     Centers for Medicaid & Medicare Services (CMS) a Tribal
     Technical Advisory Group, which was first established in
     accordance with requirements of the charter dated September
     30, 2003, and the Secretary shall include in such Group a
     representative of the Urban Indian Organizations and the
     Service. The representative of the Urban Indian Organization
     shall be deemed to be an elected officer of a tribal
     government for purposes of applying section 204(b) of the
     Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1534(b)).''.
       (b) Solicitation of Advice Under Medicaid and CHIP.--
       (1) Medicaid state plan amendment.--Section 1902(a) of the
     Social Security Act (42 U.S.C. 1396a(a)) is amended--
       (A) in paragraph (70), by striking ``and'' at the end;
       (B) in paragraph (71), by striking the period at the end
     and inserting ``; and''; and
       (C) by inserting after paragraph (71), the following new
     paragraph:
       ``(72) in the case of any State in which 1 or more Indian
     Health Programs or Urban Indian Organizations furnishes
     health care services, provide for a process under which the
     State seeks advice on a regular, ongoing basis from designees
     of such Indian Health Programs and Urban Indian Organizations
     on matters relating to the application of this title that are
     likely to have a direct effect on such Indian Health Programs
     and Urban Indian Organizations and that--
       ``(A) shall include solicitation of advice prior to
     submission of any plan amendments, waiver requests, and
     proposals for demonstration projects likely to have a direct
     effect on Indians, Indian Health Programs, or Urban Indian
     Organizations; and
       ``(B) may include appointment of an advisory committee and
     of a designee of such Indian Health Programs and Urban Indian
     Organizations to the medical care advisory committee advising
     the State on its State plan under this title.''.
       (2) Application to chip.--Section 2107(e)(1) of such Act
     (42 U.S.C. 1397gg(e)(1)), as amended by section 5004(b), is
     amended by adding at the end the following new subparagraph:
       ``(F) Section 1902(a)(72) (relating to requiring certain
     States to seek advice from designees of Indian Health
     Programs and Urban Indian Organizations).''.
       (c) Rule of Construction.--Nothing in the amendments made
     by this section shall be construed as superseding existing
     advisory committees, working groups, guidance, or other
     advisory procedures established by the Secretary of Health
     and Human Services or by any State with respect to the
     provision of health care to Indians.

     SEC. 5006. TEMPORARY INCREASE IN DSH ALLOTMENTS DURING
                   RECESSION.

       Section 1923(f)(3) of the Social Security Act (42 U.S.C.
     1396r-4(f)(3)) is amended--
       (1) in subparagraph (A), by striking ``paragraph (6)'' and
     inserting ``paragraph (6) and subparagraph (E)''; and
       (2) by adding at the end the following new subparagraph:
       ``(E) Temporary increase in allotments during recession.--
       ``(i) In general.--Subject to clause (ii), the DSH
     allotment for any State--

       ``(I) for fiscal year 2009 is equal to 102.5 percent of the
     DSH allotment that would be determined under this paragraph
     for the State for fiscal year 2009 without application of

[[Page H709]]

     this subparagraph, notwithstanding subparagraph (B);
       ``(II) for fiscal year 2010 is equal to 102.5 percent of
     the the DSH allotment for the State for fiscal year 2009, as
     determined under subclause (I); and
       ``(III) for each succeeding fiscal year is equal to the DSH
     allotment for the State under this paragraph determined
     without applying subclauses (I) and (II).

       ``(ii) Application.--Clause (i) shall not apply to a State
     for a year in the case that the DSH allotment for such State
     for such year under this paragraph determined without
     applying clause (i) would grow higher than the DSH allotment
     specified under clause (i) for the State for such year.''.

                   TITLE VI--BROADBAND COMMUNICATIONS

     SEC. 6001. INVENTORY OF BROADBAND SERVICE CAPABILITY AND
                   AVAILABILITY.

       (a) Establishment.--To provide a comprehensive nationwide
     inventory of existing broadband service capability and
     availability, the National Telecommunications and Information
     Administration (``NTIA'') shall develop and maintain a
     broadband inventory map of the United States that identifies
     and depicts the geographic extent to which broadband service
     capability is deployed and available from a commercial
     provider or public provider throughout each State.
       (b) Public Availability and Interactivity.--Not later than
     2 years after the date of enactment of this Act, the NTIA
     shall make the broadband inventory map developed and
     maintained pursuant to this section accessible by the public
     on a World Wide Web site of the NTIA in a form that is
     interactive and searchable.

     SEC. 6002. WIRELESS AND BROADBAND DEPLOYMENT GRANT PROGRAMS.

       (a) Grants Authorized.--
       (1) In general.--The National Telecommunications and
     Information Administration (``NTIA'') is authorized to carry
     out a program to award grants to eligible entities for the
     non-recurring costs associated with the deployment of
     broadband infrastructure in rural, suburban, and urban areas,
     in accordance with the requirements of this section.
       (2) Program website.--The NTIA shall develop and maintain a
     website to make publicly available information about the
     program described in paragraph (1), including--
       (A) each prioritization report submitted by a State under
     subsection (b);
       (B) a list of eligible entities that have applied for a
     grant under this section, and the area or areas the entity
     proposes to serve; and
       (C) the status of each such application, whether approved,
     denied, or pending.
       (b) State Priorities.--
       (1) Priorities report submission.--Not later than 75 days
     after the date of enactment of this section, each State
     intending to participate in the program under this section
     shall submit to the NTIA a report indicating the geographic
     areas of the State which--
       (A) for the purposes of determining the need for Wireless
     Deployment Grants under subsection (c), the State considers
     to have the greatest priority for--
       (i) wireless voice service in unserved areas; and
       (ii) advanced wireless broadband service in underserved
     areas; and
       (B) for the purposes of determining the need for Broadband
     Deployment Grants under subsection (d), the State considers
     to have the greatest priority for--
       (i) basic broadband service in unserved areas; and
       (ii) advanced broadband service in underserved areas.
       (2) Limitation.--The unserved and underserved areas
     identified by a State in the report required by this
     subsection shall not represent, in the aggregate, more than
     20 percent of the population of such State.
       (c) Wireless Deployment Grants.--
       (1) Authorized activity.--The NTIA shall award Wireless
     Deployment Grants in accordance with this subsection from
     amounts authorized for Wireless Deployment Grants by this
     subtitle to eligible entities to deploy necessary
     infrastructure for the provision of wireless voice service or
     advanced wireless broadband service to end users in
     designated areas.
       (2) Grant distribution.--The NTIA shall seek to distribute
     grants, to the extent possible, so that 25 percent of the
     grants awarded under this subsection shall be awarded to
     eligible entities for providing wireless voice service to
     unserved areas and 75 percent of grants awarded under this
     subsection shall be awarded to eligible entities for
     providing advanced wireless broadband service to underserved
     areas.
       (d) Broadband Deployment Grants.--
       (1) Authorized activity.--The NTIA shall award Broadband
     Deployment Grants in accordance with this subsection from
     amounts authorized for Broadband Deployment Grants by this
     subtitle to eligible entities to deploy necessary
     infrastructure for the provision of basic broadband service
     or advanced broadband service to end users in designated
     areas.
       (2) Grant distribution.--The NTIA shall seek to distribute
     grants, to the extent possible, so that 25 percent of the
     grants awarded under this subsection shall be awarded to
     eligible entities for providing basic broadband service to
     unserved areas and 75 percent of grants awarded under this
     subsection shall be awarded to eligible entities for
     providing advanced broadband service to underserved areas.
       (e) Grant Requirements.--The NTIA shall--
       (1) adopt rules to protect against unjust enrichment; and
       (2) ensure that grant recipients--
       (A) meet buildout requirements;
       (B) maximize use of the supported infrastructure by the
     public;
       (C) operate basic and advanced broadband service networks
     on an open access basis;
       (D) operate advanced wireless broadband service on a
     wireless open access basis; and
       (E) adhere to the principles contained in the Federal
     Communications Commission's broadband policy statement (FCC
     05-151, adopted August 5, 2005).
       (f) Applications.--
       (1) Submission.--To be considered for a grant awarded under
     subsection (c) or (d), an eligible entity shall submit to the
     NTIA an application at such time, in such manner, and
     containing such information and assurances as the NTIA may
     require. Such an application shall include--
       (A) a cost-study estimate for serving the particular
     geographic area to be served by the entity;
       (B) a proposed build-out schedule to residential households
     and small businesses in the area;
       (C) for applicants for Wireless Deployment Grants under
     subsection (c), a build-out schedule for geographic coverage
     of such areas; and
       (D) any other requirements the NTIA deems necessary.
       (2) Selection.--
       (A) Notification.--The NTIA shall notify each eligible
     entity that has submitted a complete application whether the
     entity has been approved or denied for a grant under this
     section in a timely fashion.
       (B) Grant distribution considerations.--In awarding grants
     under this section, the NTIA shall, to the extent practical--
       (i) award not less than one grant in each State;
       (ii) give substantial weight to whether an application is
     from an eligible entity to deploy infrastructure in an area
     that is an area--

       (I) identified by a State in a report submitted under
     subsection (b); or
       (II) in which the NTIA determines there will be a
     significant amount of public safety or emergency response use
     of the infrastructure;

       (iii) consider whether an application from an eligible
     entity to deploy infrastructure in an area--

       (I) will, if approved, increase the affordability of, or
     subscribership to, service to the greatest population of
     underserved users in the area;
       (II) will, if approved, enhance service for health care
     delivery, education, or children to the greatest population
     of underserved users in the area;

       (III) contains concrete plans for enhancing computer
     ownership or computer literacy in the area;
       (IV) is from a recipient of more than 20 percent matching
     grants from State, local, or private entities for service in
     the area and the extent of such commitment;
       (V) will, if approved, result in unjust enrichment because
     the eligible entity has applied for, or intends to apply for,
     support for the non-recurring costs through another Federal
     program for service in the area; and
       (VI) will, if approved, significantly improve interoperable
     broadband communications systems available for use by public
     safety and emergency response; and

       (iv) consider whether the eligible entity is a socially and
     economically disadvantaged small business concern, as defined
     under section 8(a) of the Small Business Act (15 U.S.C. 637).
       (g) Coordination and Consultation.--The NTIA shall
     coordinate with the Federal Communications Commission and
     shall consult with other appropriate Federal agencies in
     implementing this section.
       (h) Report Required.--The NTIA shall submit an annual
     report to the Committee on Energy and Commerce of the House
     of Representatives and the Committee on Commerce, Science,
     and Transportation of the Senate for 5 years assessing the
     impact of the grants funded under this section on the basis
     of the objectives and criteria described in subsection
     (f)(2)(B)(iii).
       (i) Rulemaking Authority.--The NTIA shall have the
     authority to prescribe such rules as necessary to carry out
     the purposes of this section.
       (j) Definitions.--For the purpose of this section--
       (1) the term ``advanced broadband service'' means a service
     delivering data to the end user transmitted at a speed of at
     least 45 megabits per second downstream and at least 15
     megabits per second upstream;
       (2) the term ``advanced wireless broadband service'' means
     a wireless service delivering to the end user data
     transmitted at a speed of at least 3 megabits per second
     downstream and at least 1 megabit per second upstream over an
     end-to-end internet protocol wireless network;
       (3) the term ``basic broadband service'' means a service
     delivering data to the end user transmitted at a speed of at
     least 5 megabits per second downstream and at least 1 megabit
     per second upstream;
       (4) the term ``eligible entity'' means--
       (A) a provider of wireless voice service, advanced wireless
     broadband service, basic broadband service, or advanced
     broadband

[[Page H710]]

     service, including a satellite carrier that provides any such
     service;
       (B) a State or unit of local government, or agency or
     instrumentality thereof, that is or intends to be a provider
     of any such service; and
       (C) any other entity, including construction companies,
     tower companies, backhaul companies, or other service
     providers, that the NTIA authorizes by rule to participate in
     the programs under this section, if such other entity is
     required to provide access to the supported infrastructure on
     a neutral, reasonable basis to maximize use;
       (5) the term ``interoperable broadband communications
     systems'' means communications systems which enable public
     safety agencies to share information among local, State,
     Federal, and tribal public safety agencies in the same area
     using voice or data signals via advanced wireless broadband
     service;
       (6) the term ``open access'' shall be defined by the
     Federal Communications Commission not later than 45 days
     after the date of enactment of this section;
       (7) the term ``State'' includes the District of Columbia
     and the territories and possessions;
       (8) the term ``underserved area'' shall be defined by the
     Federal Communications Commission not later than 45 days
     after the date of enactment of this section;
       (9) the term ``unserved area'' shall be defined by the
     Federal Communications Commission not later than 45 days
     after the date of enactment of this section;
       (10) the term ``wireless open access'' shall be defined by
     the Federal Communications Commission not later than 45 days
     after the date of enactment of this section; and
       (11) the term ``wireless voice service'' means the
     provision of two-way, real-time, voice communications using a
     mobile service.
       (k) Review of Definitions.--Not later than 3 months after
     the date the NTIA makes a broadband inventory map of the
     United States accessible to the public pursuant to section
     6001(b), the Federal Communications Commission shall review
     the definitions of ``underserved area'' and ``unserved
     area'', as defined by the Commission within 45 days after the
     date of enactment of this Act (as required by paragraphs (8)
     and (9) of subsection (j)), and shall revise such definitions
     based on the data used by the NTIA to develop and maintain
     such map.

     SEC. 6003. NATIONAL BROADBAND PLAN.

       (a) Report Required.--Not later than 1 year after the date
     of enactment of this section, the Federal Communications
     Commission shall submit to the Committee on Energy and
     Commerce of the House of Representatives and the Committee on
     Commerce, Science, and Transportation of the Senate, a report
     containing a national broadband plan.
       (b) Contents of Plan.--The national broadband plan required
     by this section shall seek to ensure that all people of the
     United States have access to broadband capability and shall
     establish benchmarks for meeting that goal. The plan shall
     also include--
       (1) an analysis of the most effective and efficient
     mechanisms for ensuring broadband access by all people of the
     United States;
       (2) a detailed strategy for achieving affordability of such
     service and maximum utilization of broadband infrastructure
     and service by the public; and
       (3) a plan for use of broadband infrastructure and services
     in advancing consumer welfare, civic participation, public
     safety and homeland security, community development, health
     care delivery, energy independence and efficiency, education,
     worker training, private sector investment, entrepreneurial
     activity, job creation and economic growth, and other
     national purposes.

                           TITLE VII--ENERGY

     SEC. 7001. TECHNICAL CORRECTIONS TO THE ENERGY INDEPENDENCE
                   AND SECURITY ACT OF 2007.

       (a) Section 543(a) of the Energy Independence and Security
     Act of 2007 (42 U.S.C. 17153(a)) is amended--
       (1) by redesignating paragraphs (2) through (4) as
     paragraphs (3) through (5), respectively; and
       (2) by striking paragraph (1) and inserting the following:
       ``(1) 34 percent to eligible units of local government-
     alternative 1, in accordance with subsection (b);
       ``(2) 34 percent to eligible units of local government-
     alternative 2, in accordance with subsection (b);''.
       (b) Section 543(b) of the Energy Independence and Security
     Act of 2007 (42 U.S.C. 17153(b)) is amended by striking
     ``subsection (a)(1)'' and inserting ``subsection (a)(1) or
     (2)''.
       (c) Section 548(a)(1) of the Energy Independence and
     Security Act of 2007 (42 U.S.C. 17158(a)(1)) is amending by
     striking ``; provided'' and all that follows through
     ``541(3)(B)''.

     SEC. 7002. AMENDMENTS TO TITLE XIII OF THE ENERGY
                   INDEPENDENCE AND SECURITY ACT OF 2007.

       Title XIII of the Energy Independence and Security Act of
     2007 (42 U.S.C. 17381 and following) is amended as follows:
       (1) By amending subparagraph (A) of section 1304(b)(3) to
     read as follows:
       ``(A) In general.--In carrying out the initiative, the
     Secretary shall provide financial support to smart grid
     demonstration projects in urban, suburban, and rural areas,
     including areas where electric system assets are controlled
     by tax-exempt entities and areas where electric system assets
     are controlled by investor-owned utilities.''.
       (2) By amending subparagraph (C) of section 1304(b)(3) to
     read as follows:
       ``(C) Federal share of cost of technology investments.--The
     Secretary shall provide to an electric utility described in
     subparagraph (B) or to other parties financial assistance for
     use in paying an amount equal to not more than 50 percent of
     the cost of qualifying advanced grid technology investments
     made by the electric utility or other party to carry out a
     demonstration project.''.
       (3) By inserting after section 1304(b)(3)(D) the following
     new subparagraphs:
       ``(E) Availability of data.--The Secretary shall establish
     and maintain a smart grid information clearinghouse in a
     timely manner which will make data from smart grid
     demonstration projects and other sources available to the
     public. As a condition of receiving financial assistance
     under this subsection, a utility or other participant in a
     smart grid demonstration project shall provide such
     information as the Secretary may require to become available
     through the smart grid information clearinghouse in the form
     and within the timeframes as directed by the Secretary. The
     Secretary shall assure that business proprietary information
     and individual customer information is not included in the
     information made available through the clearinghouse.
       ``(F) Open internet-based protocols and standards.--The
     Secretary shall require as a condition of receiving funding
     under this subsection that demonstration projects utilize
     open Internet-based protocols and standards if available.''.
       (4) By amending paragraph (2) of section 1304(c) to read as
     follows:
       ``(2) to carry out subsection (b), such sums as may be
     necessary.''.
       (5) By amending subsection (a) of section 1306 by striking
     ``reimbursement of one-fifth (20 percent)'' and inserting
     ``grants of up to one-half (50 percent)''.
       (6) By striking the last sentence of subsection (b)(9) of
     section 1306.
       (7) By striking ``are eligible for'' in subsection (c)(1)
     of section 1306 and inserting ``utilize''.
       (8) By amending subsection (e) of section 1306 to read as
     follows:
       ``(e) Procedures and Rules.--The Secretary shall--
       ``(1) establish within 60 days after the enactment of the
     American Recovery and Reinvestment Act of 2009 procedures by
     which applicants can obtain grants of not more than one-half
     of their documented costs;
       ``(2) require as a condition of receiving a grant under
     this section that grant recipients utilize open Internet-
     based protocols and standards if available;
       ``(3) establish procedures to ensure that there is no
     duplication or multiple payment or recovery for the same
     investment or costs, that the grant goes to the party making
     the actual expenditures for qualifying smart grid
     investments, and that the grants made have significant effect
     in encouraging and facilitating the development of a smart
     grid;
       ``(4) maintain public records of grants made, recipients,
     and qualifying smart grid investments which have received
     grants;
       ``(5) establish procedures to provide advance payment of
     moneys up to the full amount of the grant award; and
       ``(6) have and exercise the discretion to deny grants for
     investments that do not qualify in the reasonable judgment of
     the Secretary.''.

     SEC. 7003. RENEWABLE ENERGY AND ELECTRIC POWER TRANSMISSION
                   LOAN GUARANTEE PROGRAM.

       (a) Amendment.--Title XVII of the Energy Policy Act of 2005
     (42 U.S.C. 16511 et seq.) is amended by adding the following
     at the end:

     ``SEC. 1705. TEMPORARY PROGRAM FOR RAPID DEPLOYMENT OF
                   RENEWABLE ENERGY AND ELECTRIC POWER
                   TRANSMISSION PROJECTS.

       ``(a) In General.--Notwithstanding section 1703, the
     Secretary may make guarantees under this section only for
     commercial technology projects under subsection (b) that will
     commence construction not later than September 30, 2011.
       ``(b) Categories.--Projects from only the following
     categories shall be eligible for support under this section:
       ``(1) Renewable energy systems, including incremental
     hydropower, that generate electricity.
       ``(2) Electric power transmission systems, including
     upgrading and reconductoring projects.
       ``(3) Leading edge biofuel projects that will use
     technologies performing at the pilot or demonstration scale
     that the Secretary determines are likely to become commercial
     technologies and will produce transportation fuels that
     substantially reduce life-cycle greenhouse gas emissions
     compared to other transportation fuels.
       ``(c) Factors Relating to Electric Power Transmission
     Systems.--In determining to make guarantees to projects
     described in subsection (b)(2), the Secretary shall consider
     the following factors:
       ``(1) The viability of the project without guarantees.
       ``(2) The availability of other Federal and State
     incentives.
       ``(3) The importance of the project in meeting reliability
     needs.

[[Page H711]]

       ``(4) The effect of the project in meeting a State or
     region's environment (including climate change) and energy
     goals.
       ``(d) Wage Rate Requirements.--The Secretary shall require
     that each recipient of support under this section provide
     reasonable assurance that all laborers and mechanics employed
     in the performance of the project for which the assistance is
     provided, including those employed by contractors or
     subcontractors, will be paid wages at rates not less than
     those prevailing on similar work in the locality as
     determined by the Secretary of Labor in accordance with
     subchapter IV of chapter 31 of part A of subtitle II of title
     40, United States Code (commonly referred to as the `Davis-
     Bacon Act').
       ``(e) Limitation.--Funding under this section for projects
     described in subsection (b)(3) shall not exceed $500,000,000.
       ``(f) Sunset.--The authority to enter into guarantees under
     this section shall expire on September 30, 2011.''.
       (b) Table of Contents Amendment.--The table of contents for
     the Energy Policy Act of 2005 is amended by inserting after
     the item relating to section 1704 the following new item:

``Sec. 1705. Temporary program for rapid deployment of renewable energy
              and electric power transmission projects.''.

     SEC. 7004. WEATHERIZATION ASSISTANCE PROGRAM AMENDMENTS.

       (a) Income Level.--Section 412(7) of the Energy
     Conservation and Production Act (42 U.S.C. 6862(7)) is
     amended by striking ``150 percent'' both places it appears
     and inserting ``200 percent''.
       (b) Assistance Level Per Dwelling Unit.-- Section 415(c)(1)
     of the Energy Conservation and Production Act (42 U.S.C.
     6865(c)(1)) is amended by striking ``$2,500'' and inserting
     ``$5,000''.
       (c) Effective Use of Funds.--In providing funds made
     available by this Act for the Weatherization Assistance
     Program, the Secretary may encourage States to give priority
     to using such funds for the most cost-effective efficiency
     activities, which may include insulation of attics, if, in
     the Secretary's view, such use of funds would increase the
     effectiveness of the program.

     SEC. 7005. RENEWABLE ELECTRICITY TRANSMISSION STUDY.

       In completing the 2009 National Electric Transmission
     Congestion Study, the Secretary of Energy shall include--
       (1) an analysis of the significant potential sources of
     renewable energy that are constrained in accessing
     appropriate market areas by lack of adequate transmission
     capacity;
       (2) an analysis of the reasons for failure to develop the
     adequate transmission capacity;
       (3) recommendations for achieving adequate transmission
     capacity;
       (4) an analysis of the extent to which legal challenges
     filed at the State and Federal level are delaying the
     construction of transmission necessary to access renewable
     energy; and
       (5) an explanation of assumptions and projections made in
     the Study, including--
       (A) assumptions and projections relating to energy
     efficiency improvements in each load center;
       (B) assumptions and projections regarding the location and
     type of projected new generation capacity; and
       (C) assumptions and projections regarding projected
     deployment of distributed generation infrastructure.

     SEC. 7006. ADDITIONAL STATE ENERGY GRANTS.

       (a) In General.--Amounts appropriated in paragraph (6)
     under the heading ``Department of Energy--Energy Programs--
     Energy Efficiency and Renewable Energy'' in title V of
     division A of this Act shall be available to the Secretary of
     Energy for making additional grants under part D of title III
     of the Energy Policy and Conservation Act (42 U.S.C. 6321 et
     seq.). The Secretary shall make grants under this section in
     excess of the base allocation established for a State under
     regulations issued pursuant to the authorization provided in
     section 365(f) of such Act only if the governor of the
     recipient State notifies the Secretary of Energy that the
     governor will seek, to the extent of his or her authority, to
     ensure that each of the following will occur:
       (1) The applicable State regulatory authority will
     implement the following regulatory policies for each electric
     and gas utility with respect to which the State regulatory
     authority has ratemaking authority:
       (A) Policies that ensure that a utility's recovery of
     prudent fixed costs of service is timely and independent of
     its retail sales, without in the process shifting prudent
     costs from variable to fixed charges. This cost shifting
     constraint shall not apply to rate designs adopted prior to
     the date of enactment of this Act.
       (B) Cost recovery for prudent investments by utilities in
     energy efficiency.
       (C) An earnings opportunity for utilities associated with
     cost-effective energy efficiency savings.
       (2) The State, or the applicable units of local government
     that have authority to adopt building codes, will implement
     the following:
       (A) A building energy code (or codes) for residential
     buildings that meets or exceeds the most recently published
     International Energy Conservation Code, or achieves
     equivalent or greater energy savings.
       (B) A building energy code (or codes) for commercial
     buildings throughout the State that meets or exceeds the
     ANSI/ASHRAE/IESNA Standard 90.1-2007, or achieves equivalent
     or greater energy savings.
       (C) A plan for the jurisdiction achieving compliance with
     the building energy code or codes described in subparagraphs
     (A) and (B) within 8 years of the date of enactment of this
     Act in at least 90 percent of new and renovated residential
     and commercial building space. Such plan shall include active
     training and enforcement programs and measurement of the rate
     of compliance each year.
       (3) The State will to the extent practicable prioritize the
     grants toward funding energy efficiency and renewable energy
     programs, including--
       (A) the expansion of existing energy efficiency programs
     approved by the State or the appropriate regulatory
     authority, including energy efficiency retrofits of buildings
     and industrial facilities, that are funded--
       (i) by the State; or
       (ii) through rates under the oversight of the applicable
     regulatory authority, to the extent applicable;
       (B) the expansion of existing programs, approved by the
     State or the appropriate regulatory authority, to support
     renewable energy projects and deployment activities,
     including programs operated by entities which have the
     authority and capability to manage and distribute grants,
     loans, performance incentives, and other forms of financial
     assistance; and
       (C) cooperation and joint activities between States to
     advance more efficient and effective use of this funding to
     support the priorities described in this paragraph.
       (b) State Match.--The State cost share requirement under
     the item relating to ``DEPARTMENT OF ENERGY; energy
     conservation'' in title II of the Department of the Interior
     and Related Agencies Appropriations Act, 1985 (42 U.S.C.
     6323a; 98 Stat. 1861) shall not apply to assistance provided
     under this section.
       (c) Equipment and Materials for Energy Efficiency
     Measures.--No limitation on the percentage of funding that
     may be used for the purchase and installation of equipment
     and materials for energy efficiency measures under grants
     provided under part D of title III of the Energy Policy and
     Conservation Act (42 U.S.C. 6321 et seq.) shall apply to
     assistance provided under this section.

     SEC. 7007. INAPPLICABILITY OF LIMITATION.

       The limitations in section 399A(f)(2), (3), and (4) of the
     Energy Policy and Conservation Act (42 U.S.C. 6371h-1(f)(2),
     (3), and (4)) shall not apply to grants funded with
     appropriations provided by this Act, except that such grant
     funds shall be available for not more than an amount equal to
     80 percent of the costs of the project for which the grant is
     provided.

  The CHAIR. No further amendment to the bill, as amended, shall be in
order except those printed in part B of the report. Each amendment may
be offered only in the order printed in the report, may be offered only
by a Member designated in the report, shall be considered read,
debatable for the time specified in the report, equally divided and
controlled by the proponent and an opponent, shall not be subject to
amendment, and shall not be subject to a demand for division of the
question.


                Amendment No. 1 Offered by Mr. Oberstar

  The CHAIR. It is now in order to consider amendment No. 1 printed in
part B of House Report 111-9.
  Mr. OBERSTAR. I have an amendment at the desk.
  The CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 1 offered by Mr. Oberstar:
       Page 207, line 21, strike ``120 days'' and insert ``90
     days''.
       Page 209, line 7, strike ``120 days'' and insert ``90
     days''.
       Page 210, line 9, strike ``180 days'' and insert ``90
     days''.
       Page 210, lines 20 and 21, strike ``150 days'' and insert
     ``75 days''.
       Page 211, line 25, strike ``180 days'' and insert ``90
     days''.
       Page 214, line 2, strike ``180 days'' and insert ``90
     days''.
       Page 215, line 7, strike ``180 days'' and insert ``90
     days''.
       Page 216, line 8, strike ``120 days'' and insert ``90
     days''.
       Page 216, line 13, strike ``120 days'' and insert ``90
     days''.

  The CHAIR. Pursuant to House Resolution 92, the gentleman from
Minnesota (Mr. Oberstar) and a Member opposed each will control 5
minutes.
  The Chair recognizes the gentleman from Minnesota.
  Mr. OBERSTAR. I yield myself 3 minutes.
  (Mr. OBERSTAR asked and was given permission to revise and extend his
remarks.)
  Mr. OBERSTAR. This amendment will shorten the time that States,
cities, transit agencies, and aviation authorities have to obligate 50
percent of the highway transit and aviation funds provided under this
Recovery Act to 90 days from the proposed 180 days.

[[Page H712]]

  I have had extensive consultations over the past 5 months with State
and local officials about creating jobs by June to show that we can
deliver economic recovery to this country. Transit agencies and State
Departments of Transportation have for years said, Give us the money.
We have the jobs. We need to get things going. So here is your
opportunity. They have said, We can deliver.
  There are 1,400,000 construction workers out of work. And I will say
that when Bud Shuster--and he was chairman of the committee at the time
in 1998--we moved the T-21 bill and we had 3 million new construction
jobs as a result of that legislation. We can do that again. There's 15
percent unemployment in the construction trades across the country.
  At a recent hearing, Carole Brown, Chair of the Chicago Transit
Authority, testified that they have an unfunded deferred maintenance
backlog of $5 billion, $500 million of which can be obligated within 90
days. She said, ``If you write me a check today, I will be spending the
check tomorrow.''
  Governor Doyle of Wisconsin said, ``There is not going to be any
barrier on getting this thing done immediately. I think any Governor
would have a pretty hard explanation about why the State next door or
the other State is actually using the money while they are losing the
money.'' He said further, ``We are looking at what we can put out to
bid before the actual grant is in hand.''
  California. The Commissioner of California, Will Kempton, on the
conference call and again today in our committee hearing on rail
issues, said, Not only do we have contractor capacity, we have well
over 100,000 building trades craftsmen out of work. We are getting
eight to nine bids per contract, and they are coming in at 25 percent
below engineering estimates. We're getting a good deal. We can deliver.
The contractors are ready, he said. The contractor community is
prepared.
  Transit options. Transit systems have options to buy 10,000 buses, $5
billion worth. Options for more than 1,000 rail vehicles, valued at $2
billion. They can be exercised in weeks, not months. Weeks. We heard
today from the Rail Car Institute that they are down 50 percent in
orders. Even of those that were on backlog, they are down 50 percent
because of the recession in the rail sector.
  We need this stimulus. We can put these to work.
  I reserve the balance of my time.
  Mr. LEWIS of California. Mr. Chairman, I do not intend to oppose the
gentleman's amendment.
  The CHAIR. Without objection, the gentleman from California is
recognized for 5 minutes.
  There was no objection.
  Mr. LEWIS of California. I yield 2 minutes to the gentleman from
Florida (Mr. Mica).
  Mr. MICA. I rise in strong support of the Oberstar amendment. This is
a very simple amendment to understand. Chairman Oberstar and I have
worked, as he said, we have worked together since last fall to create a
stimulus package of infrastructure projects that are ready to go and in
which we can employ people as soon as possible. That is the objective
of Oberstar amendment.
  We need to pass this amendment because we are not interested in
funding projects or providing a stimulus package and not have the money
into our States and our communities to build that infrastructure that
will be real and not employ people.
  This stimulus package is all about employing people. Whether it's
Minneapolis, the great State of Minnesota, which Mr. Oberstar
represents, or my State, look at the statistics. Look at the newspapers
and the people who are losing their jobs. We need to get this money out
as soon as possible so people who want to work, have a choice of work,
have that opportunity.
  This amendment, the Oberstar amendment, puts that money out there and
it employs people immediately. No games played in this. This is not a
bailout-to-financial-institution fiasco. This is putting people to work
now that are crying out for jobs and stimulating our economy.
  I am pleased to rise in support. I have been pleased to join with Mr.
Oberstar, who's been doing everything possible to get jobs and our
infrastructure and our economy moving forward.
  Mr. OBERSTAR. I yield myself 10 seconds, and thank the gentleman from
Florida for his thoughtful remarks and for the participation and
cooperation we have had. In our committee, there are no Republican
roads or Democratic bridges; they are all American roads and all
American bridges. And we work together.
  I yield 1 minute to the distinguished Chair of the Surface
Subcommittee, the gentleman from Oregon (Mr. DeFazio).
  Mr. DeFAZIO. The needs are great. There are many projects on the
shelf. We heard from the President's hometown, the head of the Transit
Authority, $500 million on the shelf. Bus options. Ready to go. They
need the money. Critical repairs. Ready to go. Engineering work done.
They just need the money.
  Under the original proposal of this bill, they would have only got
less than half that. Now we get them closer to the $500 million. We are
still not there. This is a good start. And if there's any transit
director or any airport director or any Department of Transportation
head or Governor across the country who can't find worthwhile
investments to put people to work for these projects, given our
transportation infrastructure deficits, then they will be looking for a
job in the near future because that money will go to another State,
another transit district, another airport that can spend it
productively and put people to work and meet America's transportation
infrastructure needs.
  Mr. LEWIS of California. Mr. Chairman, I yield 1 minute to my
colleague from the Appropriations Committee, the gentleman from Iowa
(Mr. Latham).
  Mr. LATHAM. I thank the ranking member. I rise in opposition to the
gentleman's amendment. This is an issue that we have dealt with in the
full committee markup. I believe Chairman Olver, wisely, slightly
extended the time by States to make these investments in transportation
investment. And now we're debating an amendment to make that timeframe
even shorter than before.
  The CBO, Congressional Budget Office, has scored this amendment and
said this amendment will not make a lick of difference as to how
quickly these funds will spend out. Instead, we are asking our States
to make hurried judgments. Haste sometimes make waste. We should expect
our States to make wise decisions, and for that they could use a little
more time.
  I urge a ``no'' vote.
  Mr. OBERSTAR. May I inquire if the gentleman from California has
other speakers?
  Mr. LEWIS of California. I have no additional speakers. I yield back
the balance of my time.
  Mr. OBERSTAR. I yield myself such time as I may consume to respond to
the gentleman from Iowa, if I may have the gentleman's attention.
  I have been on the phone--CBO has not--with the Commissioners of
Transportation from the principal States and from the Association of
Transportation officials. They have committed to have projects
obligated or under contract in 90 days for the first $15 billion of
this funding, and the next $15 billion in 180 days.
  Our committee is going to hold oversight hearings. Every 30 days we
are going to hold the feet to their fire and a blow torch to their
bottom side to make sure that they deliver jobs in the timeframe that
they have said they can do.
  So every State is going to be on call, on notice. This is a dress
rehearsal for the next authorization. If we can't deliver jobs in this
context, how are they going to do it in the next 6-year authorization
bill?
  The CBO has very conservatively scored on the basis of previous
history, not on the basis of the real world that we live in, that I
have insisted on.
  The CHAIR. The question is on the amendment offered by the gentleman
from Minnesota (Mr. Oberstar).
  The amendment was agreed to.


         Amendment No. 2 Offered by Mr. Markey of Massachusetts

  The CHAIR. It is now in order to consider amendment No. 2 printed in
part B of House Report 111-9.
  Mr. MARKEY of Massachusetts. I have an amendment at the desk.
  The CHAIR. The Clerk will designate the amendment.

[[Page H713]]

  The text of the amendment is as follows:

       Amendment No. 2 offered by Mr. Markey of Massachusetts:
       Page 637, lines 10 through 15, amend subparagraph (F) to
     read as follows:
       ``(F) Open protocols and standards.--The Secretary shall
     require as a condition of receiving funding under this
     subsection that demonstration projects utilize Internet-based
     or other open protocols and standards if available and
     appropriate.''.
       Page 638, lines 12 through 14, amend paragraph (2) to read
     as follows:
       ``(2) require as a condition of receiving a grant under
     this section that grant recipients utilize Internet-based or
     other open protocols and standards if available and
     appropriate;
  The CHAIR. Pursuant to House Resolution 92, the gentleman from
Massachusetts (Mr. Markey) and a Member opposed each will control 5
minutes.
  The Chair recognizes the gentleman from Massachusetts (Mr. Markey).
  Mr. MARKEY of Massachusetts. I offer this technical amendment to
clarify language that was adopted by the Energy and Commerce Committee
concerning the grant program for smart grids. This language is
supported by companies across energy and technology industries, from
Duke Energy to General Electric to Google.
  The underlying bill directs the Department of Energy to make grants
for programs that support new technologies that can help Americans use
energy more wisely and more efficiently. One provision in the bill
requires the Secretary to ensure that the funds are used to promote
innovation in the dynamic smart grid area.
  The purpose of this amendment is simply to clarify that any sort of
open protocol should be supported. Some industry participants were
concerned that the language adopted by the committee would have been
restricted to just Internet protocol technology. This amendment makes
clear that any open protocol will be eligible for funding in order to
not preclude future innovation.
  This provision has support from leading companies who see our energy
future shaped as much by information technology as by horsepower. This
provision has won support from leading electric companies, and I have
already made reference earlier to Duke and to General Electric and to
Google. But those are representative companies of the wide range of
corporate support for this open protocol approach.
  I reserve the balance of my time.
  Mr. LEWIS of California. I claim the time in opposition. I have no
speakers in opposition.
  I yield back the balance of my time.
  Mr. MARKEY of Massachusetts. Mr. Chairman, I yield back the balance
of my time, and I move that the amendment be adopted.
  The CHAIR. The question is on the amendment offered by the gentleman
from Massachusetts (Mr. Markey).
  The amendment was agreed to.


                 Amendment No. 3 Offered by Mr. Shuster

  The CHAIR. It is now in order to consider amendment No. 3 printed in
part B of House Report 111-9.
  Mr. SHUSTER. I have an amendment at the desk.
  The CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 3 offered by Mr. Shuster:
       Page 230, beginning on line 22, strike ``the date of
     enactment of this Act'' and insert ``October 1, 2008''.
       In section 12001 of division A of the bill--
       (1) redesignate subsections (b) and (c) as subsections (c)
     and (d), respectively; and
       (2) insert after subsection (a) the following:
       (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.

  The CHAIR. Pursuant to House Resolution 92, the gentleman from
Pennsylvania (Mr. Shuster) and a Member opposed each will control 5
minutes.
  The Chair recognizes the gentleman from Pennsylvania (Mr. Shuster).

                              {time}  1415

  Mr. SHUSTER. My amendment is a very simple amendment, a
straightforward amendment. And it states that if a governor is unable
to certify Federal funds will not supplant non-Federal funds pursuant
to the subsection, 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.
  What this means is that the stimulus moves money out to the States.
We want to make certain that there are no games played at the State
level with the budgets. For example, if a State budgets $1 billion for
highway spending and they are to receive $1 billion from the Federal
Government, that they can't move that money around, reduce what they
have budgeted for their funding of the highway projects and
transportation projects in that State.
  I think that is important to put in here to put some teeth in the
stimulus bill so that those types of things don't happen, so that we
get the full effect, the full impact of the stimulus if it moves
forward through the House and the Senate and we have a law that, as I
said, will have the full impact of those dollars in the transportation
arena in those States that will in fact create jobs. That is the basis
of this amendment.
  I reserve the balance of my time.
  Mr. OBERSTAR. Mr. Chairman, I rise to claim the time though I am not
in opposition to the amendment.
  The CHAIR. Without objection, the gentleman from Minnesota is
recognized for 5 minutes.
  There was no objection.
  Mr. OBERSTAR. I yield myself 1 minute to commend the gentleman from
Pennsylvania for the amendment that he offers, in the spirit of our
committee, to make even more firm our intention that the funds from our
committee be stimulus, be in place to create additional jobs, not
supplant money that States had already planned to use for highway
projects, transit projects, aviation projects, but to ensure that the
jobs created are additional jobs in this economy. We want them to
continue with their program of projects planned for the current fiscal
year, but that this recovery money be supplemental to, in addition to,
and to clean up the backlog that States have for months and years have
complained to us--by ``us'' I mean on our committee--that they need all
this additional money.
  Mr. LEWIS of California. Will the gentleman yield?
  Mr. OBERSTAR. I yield to the distinguished gentleman from California.
  Mr. LEWIS of California. I appreciate my friend yielding.
  The CHAIR. The time of the gentleman has expired.
  Mr. OBERSTAR. I yield myself an additional 1 minute to yield to the
gentleman.
  Mr. LEWIS of California. I thank the gentleman.
  The gentleman and I have worked together for many, many years, and I
learned much of his business at his feet in the then-Public Works
Committee years ago. And the language in this amendment does stimulate
the process and we think will help us try to stimulate the economy; so
I appreciate very much the work of my chairman as well as my colleague.
  Mr. OBERSTAR. I yield 2 minutes to the distinguished gentlewoman from
Texas (Ms. Jackson-Lee).
  Ms. JACKSON-LEE of Texas. I thank the distinguished chairman of the
Transportation Committee for his kindness and his leadership.
  I don't rise in opposition to Mr. Shuster's amendment, but to
reaffirm it, because of I think the importance of the amendment, and to
thank this body for supporting the amendment previously passed by Mr.
Oberstar that gives us a framework of shortened time to make sure we do
get out jobs. All of the economists suggest that we are job hungry, and
certainly Mark Zandi indicates that 4 million jobs will be created.
  I specifically want to, as I look at the legislation and the
amendment of Mr. Shuster who comments on highway maintenance, I think
that is vital. I want to reemphasize that transit projects that can be
considered new starts would fall appropriately under this economic
stimulus, create jobs such as the Metro Solutions project, provide $30
million to Texas on rail, if you will, support. And as the Nadler
amendment is coming forward, I support the $3 billion that is going to

[[Page H714]]

come forward to increase the amount of money for transit projects.
  But the key element of I think what we are doing today is to create
jobs. New starts in transit should be considered part of creating those
jobs. Specifically the Metro Solutions project I believe will fall in
that category and create the kind of engine and jobs that we want.
  Let me finally say that I think it is important that I note no bar
under certain funding in this stimulus package that would disallow work
on inner city or urban parks. That too creates jobs, along with the
work incentive and summer youth training program. I hope all of this
together will combine to respond to the President's cry creating 4
million jobs.
  So I certainly do not oppose this amendment, and I hope the framework
does include broadly a lot of the projects that are going to be put
forward helping our States and creating jobs.
  Thank you Mr. Chair, for affording me this opportunity to address
H.R. 1, the ``American Recovery and Reinvestment Act of 2009.'' I
believe H.R. 1 can be supported by every member of the House.
  I believe that H.R. 1 can be supported by every member of the House.
I am hopeful that my colleagues will be mindful of the words of our
President, Barack Obama, and pass this important and much needed
legislation without further delay.
  Mr. Chair, just yesterday the Associated Press reported that tens of
thousands of Americans will be losing their jobs. This news was on top
of the 2.6 million jobs lost last year under the old Bush
Administration. Some of the biggest names in industry have announced
lay offs yesterday, from Sprint Nextel, Caterpillar, Home Depot, to GM,
all of these companies have announced thousands of lay offs.
  Experts believe that without intervention, unemployment will rise to
8.8 percent, the highest since 1983, and it is reported that the worst
business conditions in greater than twenty years will exist.
  The American Recovery and Reinvestment Act will result in infusing
greater than $850 billion into America's ailing economy. With this
economic recovery plan, there will be 4 million more jobs and an
unemployment rate that will be two percentage points lower by the end
of 2010. This is important because the nation is facing tough economic
times. It was estimated that the State of Texas had an unemployment
rate of 6.0%. While this rate is below the national average, it is a
high rate and is a signal that something must done to help America and
the Texas economy recover. H.R. 1 provides such hope to America.
  H.R. 1 provides for unprecedented accountability and transparency
measures that are built into the legislation to help ensure that tax
dollars are spend wisely. $550 billion is strategically targeted to
priority investments; $275 billion in targeted tax cuts will also help
spur economic recovery. All of these laudable aims are achieved without
earmarks. This Act represents the culmination of priorities shared with
the new Obama Administration and is sure to help America's economy in
the longterm.


                               AMENDMENTS

  While the House Rules Committee met last night, the Committee
determined not allow an open rule despite my vociferous arguments to
the contrary. Nevertheless, if there was an open rule, I would have
offered the following four amendments to H.R. 1.

     Amendment #1

  First, I would have offered several amendments that specifically
addressed the issue of funding for parklands, either rural or urban in
the bill. I would have made clear that the funding in the bill in Title
VIII does not preclude the use of the funding ``for the restoration,
creation, or maintenance of local and community parks, including urban
and rural parks.''
  The inclusion of such language would make imminently clear the
Congress's intent to work on green spaces and the creation of green
jobs in a new America. This is a priority already articulated by the
present Obama Administration.
  I am pleased that there is no limitation on the use of the funds
appropriated under this bill for use in urban parklands in Title VII.
My language would have made the obligations express.

     Amendment #2

  Second, I would have offered an amendment that allowed local parks
and recreation facilities to provided with $125 million for
construction, improvements, repair or replacement of facilities related
to the revitalization of state and local parks and recreation
facilities under the Land and Water Conservation Act Stateside
Assistance Program, as amended (16 U.S.C. 4601(4)-(11)) except that
such funds shall not be subject to the matching requirements in section
4601-89(c ) of that Act:

                              Urban Parks

       For construction, improvements, repair, or replacement of
     facilities related to the revitalization of urban parks and
     recreation facilities, $100 million is made available under
     the Urban Park and Recreation Recovery Act of 1978 (16 U.S.C.
     2501 et seq.), except that such funds shall not be subject to
     the matching requirements in section 2505(a) of the Act:
     Provided that the amount set aside from this appropriation
     pursuant to section 1106 of this Act shall not be more than 5
     percent instead of the percentage specified in such section
     and such funds are to remain available until expended. Cities
     countries meeting this criterion would have to include the
     required distress factors as part of their applications for
     funding.

  I am pleased that Title VII does not preclude the use of funding for
local, community, and urban parks. My language would have made the
obligation express. I am also pleased to learn that funding for the
local, community, and urban parks can be funded through the community
block grants that have been authorized under this bill.
  Parks are important to urban meccas like the City of Houston. Too
often those living in the inner cities are deprived of grass and
parklands, my amendments and the provision for the development of such
parks in this bill would lead to the greening of urban cities.
  Mr. Chairman, as many Americans are painfully aware, hundreds of
state and local parks and recreational facilities are in disrepair in
communities across America due to budget cutbacks and the lack of
federal funding during the past eight years. In 2001, LWCF received
$144 million in federal funds, but by 2006 it had been slashed to a
mere $25 million. Unfortunately, funding for Land and Water
Conservation Fund Stateside Assistance Program (LWCF) remained at this
level for FY07 and FY08. In the state of Texas alone, the unmet need
for LWCF is more than $139 million. Similarly, the Urban Park
Recreation Recovery program (UPARR) has not been funded since FY 2002
when it received $28.9 million.
  Historically, LWCF and UPARR funds have supported tens of thousands
of state and local projects with a long track record of supporting
afterschool programs, enhancing environmental conservation and
education, helping to curb obesity, and contributing to economic
vitality. Not funding these programs seriously undermines local
educational and athletic programs, the availability of indoor and
outdoor recreational activities, and overall quality of life in
communities.
  Mr. Chairman, communities need the services provided by state and
local park and recreation agencies, but these agencies are in desperate
need of repair. Hundreds of communities have thousands of capital
construction and maintenance projects that are ready to commence
pending matching federal funding. These projects such as new roofs for
community centers, irrigation systems for sport fields, repairs to
bring facilities into ADA compliance, and electrical upgrades to park
and recreation facilities would allow communities to preserve,
rehabilitate and maintain already existing infrastructure that provides
numerous recreational opportunities for citizens. Many of these
projects are especially suitable for small or minority businesses and
contractors.
  State and local park and recreation agencies do more than provide a
place for children to play. They are woven into the fabric of each and
every community across this nation. Local park and recreation agencies
are the largest public provider of after school programs; these
agencies work collaboratively with military bases to provide
therapeutic recreation services to rehabilitate our soldiers who have
been wounded in battle; they improve the quality of life and the
functionality of our children who have autism through numerous programs
and services and provide so many other essential community services.
Additionally, state and local park and recreation agencies serve to
protect our environment and promote environmental stewardship. LWCF and
UPARR grants have funded projects that contribute to reduced stormwater
runoff, enhanced groundwater recharge, pollutant reductions, urban heat
island mitigation, and reduced energy demands.
  Our nation has a long history of investing in park restoration and
construction as a way to create jobs and revitalize the economy.
President Franklin Roosevelt created the Citizens Conservation Council
(CCC) to build and fix up America's parks as a key component of his
strategy to put people back to work during the Great Depression.

[[Page H715]]

     Amendment #3

  The third amendment that I would have offered would have extended the
special rule regarding contracting under this bill to all sections of
the bill. The special rule on contracting would provide that for each
local agency that received a grant or money under this Act shall
ensure, 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,
women- and veteran-owned businesses, through full and open competition.
  This amendment is important because it ensures that qualified
bidders, including local, small, minority, women- and veteran-owned
businesses, participate in the process through full and open
competition. This would definitely create jobs and help these
communities.

     Amendment #4

  A fourth amendment that I would have offered would have conditioned
the release of monies to the Department of Justice to prevent
prosecutorial misconduct. Specifically, the language would have
prevented the release of money to the Department of Justice unless the
State did not fund any antidrug task forces for that fiscal year or the
State had in effect State laws that ensured that.
  (A) a person is not convicted of a drug offense unless the fact that
a drug offense was committed, and the fact that the person that
committed that offense, are each supported by separate pieces of
evidence other than the eyewitness testimony of a law enforcement
officer or an individual acting on behalf of a law enforcement officer;
and
  (B) a law enforcement officer does not participate in an antidrug
task force unless the honesty and integrity of that officer is
evaluated and found to be at an appropriately high level.
  While I did not formally offer these amendments, I believe that their
goals are no less aspirational and that these are indeed good ideas
that should be included.

     Oberstar amendment

       Amendment #1

  Mr. Chairman, I support, and I urge my colleagues to support the
amendment offered by Chairman Oberstar. Chairman Oberstar's amendment
would amend the aviation, highway, rail, and transit priority
consideration and ``use-it-or-lose-it'' provisions to require that 50
percent of the funds be obligated within 90 days. I support this
amendment. This amendment would have great import for my District and
America.
  I have worked tirelessly to rebuild America's infrastructure as well
as contributing to America's progress, America, and the creation of
American jobs. I worked with Chairman Obey to ensure that language be
included within this legislation. Specifically, I worked to ensure that
significant funding be allocated for ready to go transit projects. The
New Start Transit Project in Houston, Texas is one such program.
Funding for this project is critical for the regional mobility of
citizens of the vast communities in and around the 18th Congressional
District of Texas.
  Cities around the country are struggling with a backlog of
transportation projects and have been experiencing difficulty in
securing federal, state, and local resources in light of the struggling
economy. At the same time, we are facing growing unemployment,
particularly in our cities.
  Houston has $1.5 billion in transit projects that could be under
contract within the 90 days use it or lose it provisions contained in
Chairman Oberstar's amendment. Not only does Houston need this
infrastructure to relieve congestion and provide adequate public
transportation, but an investment in Houston's New Start Transit
Project means jobs for my constituents through the transportation
sector in our communities and around the nation.
  I would urge my colleagues to support Chairman Oberstar's amendment
that any monies appropriated under Title XII be used within 90 days or
the use of such funding will be forfeited. This so-called ``Use or Lose
It'' amendment addresses the issue of job creation and the necessity
that the Nation must act fast. It is believed that with the inclusion
of this language entities will act without delay for fear of forfeiting
access to much needed funds. These monies are critical for the
renovation and improvement of the Nation's transportation and
infrastructure and must be expeditiously used to ignite our
transportation system across the nation. This infusement of capital
into the Nation's transportation and infrastructure will surely create
jobs for Americans.

     DeFazio/Nadler amendment

  Mr. Chairman, I support the amendment offered by Representative
DeFazio and Representative Nadler. This amendment would increase
transit capital funding by $3 billion. This amendment is important to
my District because it would provide more funds in the Ne Starts
Program. This would be of benefit to the Houston METRO North and
Southeast Light Rail Projects. Houston METRO already has environmental
clearance and contractors ready to go to complete these projects.
Indeed, these projects can be completed within the 90 day ``use or
lose'' period.
  Houston is undergoing a major capital improvement campaign and is
endeavoring to modernize its highways and roads namely spending $70
million over the next several years to convert 83 miles of High
Occupancy Vehicle (HOV) lanes to High Occupancy/Toll (HOT) lanes on
Interstate 45, US 59, and US 290 in Metropolitan Houston. This project
is ready to go and its funding will ensure that the roads and highways
remain safe, accountable, and efficient. Because the HOV lanes on I-45,
US 59, and US 290 offer a good deal of unused capacity, these roadways
would be ideal for conversion to HOT lanes, for the twin purposes of
managing Houston's traffic and raising revenue for Houston's
transportation projects.
  Mr. Chairman, given the exigency of the situation and the Nation's
current economic crisis, I would urge this Committee and my colleagues
to move this bill quickly to the floor and act without delay. The
Nation is at a crossroads and is currently sitting in its nadir, as
some pundits would argue, the Nation's economy needs to be infused with
capital, critical infrastructure and development, and the American
people need to be employed with real jobs. H.R. 1 does this. It creates
the development of infrastructure, provides Americans with jobs, and
tries to correct the economy. I am hopeful that this bill will help
alleviate the economic woes this country faces.
  These METRO projects have been planned and discussed for over 20
years, now these projects are ready to go within 90 days. All that
these projects need is the capital to begin. If this bill, along with
these amendments passed, Houston METRO projects can finally be started
fulfilling plans that were twenty years in the making and fulfilling
plans that I have labored long to bring to fruition.


                               EDUCATION

  Harris County serves a combined total of 6,649 Head Start children
per year. The poverty rate for Harris County's population under age 5
is higher than the national average at 28.7%. H.R. 1--The American
Recovery & Reinvestment Act of 2009 will provide $1 Billion for Head
Start and $1.1 Billion for Early Head Start--these Head Start monies
will allow for new monies that can be used to address the disparity in
funding for Harris County Head Start programs.
  One key provision in the Recovery Plan is the Making Work Pay Credit,
which provides a tax credit of $500 per worker for single workers
earning up to $100,000 and married couples earning up to $200,000.
Attached is a brief report and state-by-state table from the Center on
Budget and Policy Priorities on the number of taxpayers that will
benefit from this credit.
  Also included in the Recovery Plan are provisions to invest in
priorities like education that will jumpstart economic growth, such as
$14 billion for School Modernization for K-12 schools to modernize and
repair tens of thousands of schools and provide them with 21st century
classrooms. In addition, provisions are included to help state and
local governments avoid painful budget cuts in priorities like
education, with investments such as additional funding for Title I and
IDEA (Special Education).
  H.R. 1 will provide $206 million for the Houston Independent School
District (HISD) in 2009 and will provide nearly $300 million for the
HISD in 2010. This is important to the City of Houston, because as the
fourth largest city in the United States it deserves a first rate
school system. Funding under H.R. 1 will allow HISD to revitalize and
improve the quality of education for school age children in Houston.


                                 ENERGY

  Because Houston is the energy capitol of the world, it is important
that this bill address the question of clean and renewable energy.
Certainly, if America is to recover, it must reinvest in its energy.
Energy is the life blood of this country.
  H.R. 1 contains the following with respect to energy:

     Smart Grid/Advanced Battery Technology/Energy Efficiency ($32
       billion)

  Transforms the nation's electricity systems through the Smart Grid
Investment Program to modernize the electricity grid to make it more
efficient and reliable. This will jumpstart smart grid demonstration
projects in geographically diverse areas, increase federal matching
grants for smart grid technology (20% to 50%) including Smart Meters''
that give consumer more choice in their energy consumption at home, and
spur research and development. Build new power lines that can transmit
clean, renewable energy from sources throughout the nation.

[[Page H716]]

  Creates temporary loan guarantees for up to $80 billion for renewable
energy power generation and electric transmission projects that begin
in the next two years. These would help ease credit constraints for
renewable energy investors and spur new private sector investment over
the next three years.
  Supports U.S. development of advanced vehicle batteries and battery
systems through loans and grants so that America can lead the world in
transforming the way automobiles are powered. Also includes other
initiatives to promote the use of alternative fuel vehicles by federal
state and local governments.
  Helps state and local governments make investments for innovative
best practices to achieve greater energy efficiency and reduce energy
usage, including building and home energy conservation programs, energy
audits, fuel conservation programs, building retrofits, and ``Smart
Growth'' planning and zoning. Also encourages states to adopt updated
energy-efficient building codes and regulatory policies to encourage
utility-sponsored gains in energy efficiency.
  Spurs energy efficiency and renewable energy research, development,
demonstration, and deployment activities at universities, companies,
and national laboratories to foster energy independence, reduce carbon
emissions, and cut utility bills.
  Makes key investments in carbon capture and sequestration technology
demonstration projects to work toward making coal part of the solution
and reducing the amount of carbon dioxide emitted from industrial
facilities and fossil fuel power plants.

     Tax incentives to spur energy savings and green jobs ($20
       billion over 10 years)

  Three-year extension of the production tax credit (PTC) for
electricity derived from wind (through 2012) and for electricity
derived from biomass, geothermal, hydropower, landfill gas, waste-to-
energy and marine facilities (through 2013). Also permits businesses
that place new renewable energy facilities in service during 2009 and
2010 to claim either a 30 percent investment tax credit (ITC) instead
of the production tax credit, or apply for a grant of up to 30 percent
of the cost of building a new renewable energy facility from the Energy
Department. These provisions will help speed up investment in new
facilities and will address current renewable energy credit market
concerns.
  Promotes energy-efficient investments in homes by extending and
expanding tax credits through 2010 for purchases such as new furnaces,
energy-efficient windows and doors, or insulation. Increases the credit
from 10 percent to 30 percent of the cost of the investment and raises
the credit cap from $500 to $1,500, helping American families save
money on their energy bills.
  Establishes an enhanced R&D tax credit for research expenditures in
the fields of fuel cells, battery technology, renewable energy, energy
conservation technology, efficient transmission and distribution of
electricity, and carbon capture and sequestration, in 2009 and 2010.
  Increases incentives to install pumps that dispense alternative fuels
including E85, biodiesel, hydrogen, and natural gas.

     Repair public housing and make key energy efficiency
       retrofits to HUD-assisted housing ($7.5 billion)

  Establishes a new program to upgrade HUD sponsored low-income housing
(elderly, disable and Section 8) to increase energy efficiency,
including new insulation, windows, and furnaces.
  Invests in energy efficiency upgrades in public housing, including
new windows, furnaces, and insulation to improve living conditions for
residents and lower the cost of operating these facilities.
     Landmark energy savings at home ($6.2 billion)
  Landmark provisions to improve the energy efficiency for more than 1
million modest-income homes through weatherization, expanding the
number of families (from 150% to 200% of the federal poverty income
levels) and the aid level (from $2,500 to $5,000 per household) to keep
up with the rising prices of these upgrades;
  This will save modest-income families on average $350 per year on
their heating and air conditioning bills.

     Green Job Training and Energy Efficient Schools

  Provides $500 million to train workers for green-collar jobs.
  Creates new modernization, renovation, and repair programs for
schools and colleges, with a minimum of 25 percent of the funds focused
on green building projects.
  Energy sustainability and efficiency grants and loans to help school
districts, colleges, local governments, and some hospitals become more
energy efficient.


                         SCIENCE AND TECHNOLOGY

  H.R. 1 also addresses science and technology.

     Investments in scientific research ($10 billion)

       National Science Foundation

  Provides $3 billion overall for the National Science Foundation,
putting the NSF budget on track to double over the next seven years, as
called for under the America COMPETES Act (PL 110-69).
  Includes $2.5 billion for NSF research and research-related
activities. Sustained, targeted investment by NSF in basic research in
fundamental science and engineering advances discovery and spurs
innovation. Such transformational work holds promise for meeting the
economic and environmental challenges facing the country, and competing
in an increasingly intense global economy.
  The $2.5 billion for research is estimated to support an additional
3,000 new NSF research awards and would immediately engage 12,750
senior personnel, post-docs, graduate students, and undergraduates.
  Also includes $100 million for improving instruction in science,
technology, engineering, and mathematics (STEM).
  Also includes $400 million for the construction and development of
major research facilities that perform cutting-edge research.

       ARPA-E

  Provides $400 million for the Advanced Research Project Agency-Energy
(ARPA-E) to support high-risk, high-payoff research into energy sources
and energy efficiency in collaboration with private industry and
universities.

     National Institute of Standards and Technology

  Provides $500 million overall for the Commerce Department's National
Institute of Standards and Technology (NIST), putting its budget also
on track to double over the next seven years, as called for under the
America COMPETES Act (PL 110-69).
  Includes $300 million for competitive construction grants for
research science buildings at colleges, universities, and other
research organizations.
  Includes $100 million to coordinate research efforts at laboratories
and national research facilities by setting standards for
manufacturing.
  Includes $70 million for the Technology Innovation Program (TIP),
which is designed to speed the development of high-risk, transformative
research targeted to address key societal challenges, and $30 million
for the Manufacturing Extension Partnership (MEP), which is targeted at
improving the productivity and competitiveness of small manufacturers.

     Certain other key investments in scientific research

  $2 billion for the National Institutes of Health (NIH), including
$1.5 billion for expanding good jobs in biomedical research to study
diseases such as Alzheimer's, Parkinson's, cancer, and heart disease,
and $500 million to implement the repair and improvement plan developed
by NIH for its campuses.
  $600 million for the National Aeronautics and Space Administration
(NASA), including $400 million to put more scientists to work doing
climate change research.
  $1.5 billion for NIH to renovate university research facilities and
help them compete for biomedical research grants.

     Investments in IT network infrastructure ($37 Billion)

  More than 100 high-tech CEOs and business leaders have endorsed the
bill's nearly $40 billion in investments in IT network infrastructure,
including broadband, health IT, and a smarter energy grid and estimate
these investments will create more than 949,000 U.S. jobs, more than
half of which will be in small businesses. They stated, ``The
investments in a smarter energy grid, health care IT . . ., and
accelerating broadband deployment . . . will not only stimulate the
economy, but will also accelerate longterm growth.''

     Broadband and wireless services

  Provides $6 billion for extending broadband and wireless services to
underserved communities across the country, so that rural and inner-
city businesses can compete with any company in the world.
  For every dollar invested in broadband, the economy sees a tenfold
return on that investment.
  The stimulative impact of this investment would be: (1) jobs to
procure, produce, deliver, install, and maintain new infrastructure;
and (2) jobs in sectors of the economy that rely on e-commerce,
including the retail, high-tech, education, health care, and real
estate sectors.

     Smarter energy grid

  Provides $11 billion for improving the grid, including transforming
the nation's electricity systems through the Smart Grid Investment

[[Page H717]]

Program to modernize the grid to make it more efficient and reliable.
This will jumpstart smart grid demonstration projects in geographically
diverse areas; increase federal matching grants for smart grid
technology (to 50% from the current 20%) including ``Smart Meters''
that give consumers more choice in their energy consumption at home;
and spur research and development. The funding will also facilitate the
building of new power lines that can transmit clean, renewable energy
from sources throughout the nation.

     Health Information Technology

  Provides $20 billion to accelerate adoption of Health Information
Technology (HIT) systems by doctors and hospitals, in order to
modernize the health care system, save billions of dollars, reduce
medical errors, and improve quality.
  Also provides significant financial incentives through the Medicare
and Medicaid programs to encourage doctors and hospitals to adopt and
use HIT.
  Promoting the adoption of Health Information Technology systems will
create hundreds of thousands of jobs--many of them high-tech jobs.
  The nonpartisan CBO estimates that, as a result of this legislation,
approximately 90 percent of doctors and 70 percent of hospitals will be
using electronic medical records within the next 10 years.
  Mr. Chairman, given the exigency of the situation and the Nation's
current economic crisis, I would urge this Committee and my colleagues
to move this bill quickly to the floor and act without delay. The
Nation is at a crossroads and is currently sitting in its nadir, as
some pundits would argue, the Nation's economy needs to be infused with
capital, critical infrastructure and development, and the American
people need to employed with real jobs. H.R. 1 does this. It creates
the development of infrastructure, provides Americans with jobs, and
tries to correct the economy. I am hopeful that this bill will help
alleviate the economic woes this country faces.
  As the Obama administration staked its campaign upon the idea of
change and won, I believe that America is ready for a change. We are
ready to be lifted from the doldrums of economic morass. We are ready
for real change that puts America, its economy, its innovation, and
entrepreneurial spirit back in its rightful place. I am hopeful and
confident that H.R. 1 does just that and places America back in the
spotlight as the sunbeam on the world stage. I strongly urge my
colleagues to act quickly and support this bill as vigorously as I do.
  Mr. OBERSTAR. Mr. Chairman, how much time remains?
  The CHAIR. The gentleman from Minnesota has 1 minute.
  Mr. OBERSTAR. And on the other side?
  The CHAIR. 3\1/2\ minutes.
  Mr. OBERSTAR. I reserve the balance of my time.
  Mr. SHUSTER. If I can respond to the gentlelady from Texas, I don't
believe this cuts anything. It just makes certain that the States
aren't able to cut what they have in their budgets. Because, at the end
of the day, the idea in the stimulus is to have a net increase in total
spending from all levels of government. And if this moves forward, we
want to make sure that the States don't reduce what they spend on their
transportation projects and use the Federal funds to offset their
budget.
  Ms. JACKSON-LEE of Texas. Will the gentleman yield for a question?
  Mr. SHUSTER. I yield to the gentlewoman.
  Ms. JACKSON-LEE of Texas. I notice in the summary it says ``highway
maintenance.'' But I think I am agreeing with you that what you are
suggesting is new maintenance but also new starts. If something is a
new start, for example, in rail, that would create new jobs, and that
is something that is in the framework of your thought.
  Mr. OBERSTAR. Will the gentleman yield for further clarification?
  Mr. SHUSTER. I certainly will.
  Mr. OBERSTAR. The legislation provides for $1 billion in new starts
for transit. And Houston Transit has been moving through the process,
and we are working to accelerate the consideration of its project to
the Federal Transit Administration; and, Mr. Nadler will soon offer an
amendment to increase the funding for transit. So I am quite confident
that there will be enough capacity to accommodate the gentlewoman's
concern.
  Ms. JACKSON-LEE of Texas. If the gentleman will yield, I thank you
very much. That is the framework of my message.
  The CHAIR. The gentleman from Pennsylvania controls the time.
  Mr. SHUSTER. I appreciate the chairman's clarification.
  I yield 30 seconds to the gentleman from Iowa (Mr. Latham).
  Mr. LATHAM. I thank the gentleman, and I rise in support of this
amendment.
  In the full committee, we offered an amendment to have this applied
to all accounts, not just transportation accounts, in the bill, which
unfortunately failed. But this is a very, very good start in this
portion of the bill. I just wish it extended to the entire $825 billion
being spent.
  Mr. SHUSTER. Mr. Chairman, how much time do I have left?
  The CHAIR. The gentleman from Pennsylvania has 1\1/2\ minutes.
  Mr. OBERSTAR. We have no further speakers on our side.
  I just want to say I concur with the gentleman from Iowa that we
required a maintenance of effort in all of those projects in our
committee that had matching funds because we wanted to assure that they
are a stimulus, and we want to keep the pressure on State and local
government people to carry these projects out.
  So the gentleman's amendment is needed, it is important, it will
assure that we put jobs in place by June, and we ought to support this
amendment. I thank the gentleman for offering it.
  I yield back the balance of my time.
  Mr. SHUSTER. I thank the chairman for not opposing the amendment. And
just to close, I think this puts teeth in the legislation that is going
to help this bill and improve this bill some. I think it needs a lot
more improvement, but this is one step in the right direction.
  I yield back the balance of my time.
  The CHAIR. The question is on the amendment offered by the gentleman
from Pennsylvania (Mr. Shuster).
  The amendment was agreed to.


           Amendment No. 4 Offered by Mr. Nadler of New York

  The CHAIR. It is now in order to consider amendment No. 4 printed in
part B of House Report 111-9.
  Mr. NADLER of New York. I have an amendment at the desk.
  The CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 4 offered by Mr. Nadler of New York:
       Page 213, line 4, after the first dollar amount, insert
     ``(increased by $1,500,000,000)''.
       Page 213, line 4, after the second dollar amount, insert
     ``(increased by $1,350,000,000)''.
       Page 213, line 10, after the dollar amount, insert
     ``(increased by $150,000,000)''.
       Page 216, line 2, after the dollar amount, insert
     ``(increased by $1,500,000,000)''.

  The CHAIR. Pursuant to House Resolution 92, the gentleman from New
York (Mr. Nadler) and a Member opposed each will control 5 minutes.
  The Chair recognizes the gentleman from New York.
  Mr. NADLER of New York. I yield myself 30 seconds.
  Mr. Chairman, this amendment increases transit capital funding by $3
billion to $12 billion. $1.5 billion will go to the Transit Capital
Formula Program, which goes to every State, including both urban and
rural areas, and $1.5 billion to the New Starts program. The amendment
is supported by numerous transportation, labor, and environmental
organizations. I have been informed the Transportation Trades
Department of the AFL-CIO will be scoring the amendment, and the League
of Conservation Voters may be scoring it as well.
  This amendment has broad support because people all over the country
recognize that investing in transit is one of the smartest things we
can do to create jobs here in America, to reduce congestion and
dependence on foreign oil, and spur economic growth.
  I urge support for the amendment.
  I reserve the balance of my time.
  Mr. LEWIS of California. Mr. Chairman, I claim the time in
opposition.
  The CHAIR. The gentleman is recognized for 5 minutes.
  Mr. LEWIS of California. I yield 1 minute to my colleague from
Florida (Mr. Mica).
  Mr. MICA. I thank the gentleman.
  I am spending all my afternoon supporting some of the amendments from
the other side; but let me tell you, the Nadler amendment is one we
have to support.

[[Page H718]]

  Mr. Oberstar as the chairman and I as the ranking Republican, we have
been working on an infrastructure proposal since back in September last
year to try to get infrastructure going and jobs started in this
country, and we are still delayed. And what is most offensive is they
took one of the most important parts for rail and transit out of the
bill, or actually cut it down, and he is restoring that money. Let me
tell you, that is just a little bit of money.
  These projects are expensive. Transportation projects in New York,
the tunnel across Long Island, $7 billion; the Second Avenue subway
tunnel is over $7 billion. Infrastructure projects are expensive, and
we are only putting in a small fraction.
  Support the Nadler amendment.
  The CHAIR. The time of the gentleman has expired.
  Mr. LEWIS of California. I yield the gentleman 30 additional seconds.
  Mr. MICA. I thank the gentleman.
  Again, folks, this is about creating jobs. And every billion dollars
we put in jobs, ready-to-go projects, is 28,000 to 35,000 jobs. So it
makes a big difference.
  Mr. Nadler is going to make a decision on how many people will go to
work, and it may be in your communities throughout the United States.
So they give you a choice right now of a few jobs; he gives you a
choice of many jobs with sound investments.
  Support the Nadler amendment.
  Mr. NADLER of New York. I thank the gentleman.
  At this point, Mr. Chairman, I now yield 1 minute to the
distinguished chairman of the Transportation Committee, the gentleman
from Minnesota (Mr. Oberstar).
  Mr. OBERSTAR. I thank the gentleman for yielding. I need not take the
whole minute; the gentleman from Florida spoke well for both sides.
  But in our hearing just a week or so ago, we heard very clearly from
the major transit agencies in this country. They have options for
buses, they have options on rail cars that could be exercised in days.
And we heard from the producer companies, the original equipment
manufacturers, they can ramp up production up to 35 percent in days,
not weeks or months. These initiatives will create jobs.
  MARTA, the Atlanta transit agency, said we need 20 new buses, natural
gas buses that will clean the air and increase ridership. They will be
produced in Minnesota. Muncie, Indiana needs rail cars. The rail cars
will be produced in Boise, Idaho. So jobs are being created all over
the country, and in Hayward, California, being produced. We need to do
this.
  Mr. LEWIS of California. Mr. Chairman, I yield myself such time as I
may consume, and it will be very short.
  I would love to support the gentleman's amendment. Indeed, if there
were an offset within this bill relative to those things that aren't
producing jobs, this is an amendment I could get very excited about. In
the meantime, it does raise the top line, and everybody should know
that. I know that Mr. Oberstar loves that, for it helps him out when he
is trying to pass the bill down the line when he is short of money. But
in the meantime, on this side of the aisle the vast percentage of my
Members would prefer that we have an offset before we start raising the
line of spending. So I will reluctantly have to oppose the amendment.
  I reserve the balance of my time.
  Mr. NADLER of New York. Mr. Chairman, I now yield 10 seconds to the
distinguished chairman of the Appropriations Committee, the gentleman
from Wisconsin.
  Mr. OBEY. I urge support for the amendment.
  Mr. NADLER of New York. That was less than 10 seconds.
  Mr. Chairman, I now yield 45 seconds to the distinguished chairman of
the Highway and Transit Subcommittee, the gentleman from Oregon (Mr.
DeFazio).
  Mr. DeFAZIO. I thank the gentleman.
  We have had the greatest 1-year increase in transit ridership in 50
years. Americans are loving their transit systems to death. Yet, there
is $160 billion deferred maintenance on these systems. 12,000 buses
have passed their useful life; they are patched together, they are
limping along, they are maintenance heavy, they are dirty. They need to
be replaced. There are 10,000 options for new buses, buses made in
America. They can't be executed because our transit systems don't have
the money.
  If we pass this amendment, thousands of those new fuel efficient,
cleaner buses will be purchased, putting Americans to work in the bus
manufacturing and all through the supply chain, in addition to helping
people get to work in a more fuel efficient and more comfortable way.
  I urge support of the amendment.

                              {time}  1430

  Mr. NADLER of New York. Mr. Chairman, I yield 30 seconds to the
gentleman from Texas (Mr. Gene Green).
  (Mr. GENE GREEN of Texas asked and was given permission to revise and
extend his remarks.)
  Mr. GENE GREEN of Texas. Mr. Chairman, I rise in strong support of
the Nadler amendment and full support for the bill.
  With my Texas accent it is hard to say anything in 30 seconds, but
with a light rail transit project, the new starts that would come under
this amendment, we can put $410 million worth of hiring people to do
utility easement work and have light rail in the fourth largest city of
the country if this amendment passes. That is why this amendment is
important, and I am proud to be here and support it.
  Mr. Chair, I rise today in support of Congressman Nadler's amendment
to H.R. 1 and the full bill. I ask unanimous consent to place the full
statement in the Record.
  This amendment will increase transit capital funding by $3 billion
including $1.5 billion for Capital Assistance Grants, also known as the
New Starts program.
  It is important that we invest additional capital in the New Starts
program simply because these are new projects and they will create new
jobs as opposed to just funding existing contracts on existing
projects. The latter will not stimulate the economy.
  For example, there are two light rail projects in my district that
are near the end of the FTA review process and could be under contract
with a design-build firm within 90 days.
  About $410 million of early work items for the projects are shovel
ready because the transit authority has already selected contractors
and completed all necessary engineering and design and purchased all
necessary rights of way.
  These are exactly the kinds of infrastructure projects that make
sense for an economic stimulus bill in 2009, creating about 18,000 jobs
within 90 to 120 days.
  These projects will promote transit ridership which is a far more
environmentally friendly way to move people more efficiently.
  These projects will also serve economically disadvantaged areas under
Community Development Block Grant (CDBG) criteria.
  So not only will the projects enhance mobility for transit dependent
and lower income persons, but it will rejuvenate the surrounding
communities by spurring economic development.
  Mr. Chair, Houston METRO has the expertise and experience delivering
such projects. They already built and operate one of the most
productive light rail lines in the nation.
  Therefore, I urge my colleagues to support this amendment to increase
New Starts money so that Houston METRO and other transit agencies
across the country can start turning dirt, creating jobs, and stimulate
this economy.
  Mr. NADLER of New York. Mr. Chairman, I yield 30 seconds to the
gentleman from Illinois (Mr. Lipinski).
  Mr. LIPINSKI. Mr. Chairman, I thank the gentleman, and I am proud to
have worked with him to offer this amendment.
  This bill must be a jobs bill, a job-creation bill investing in
transit is a certain way to create jobs and do things that are much
needed in this country.
  The CTA Chairwoman Brown told us last week she could spend $500
million tomorrow to make needed improvements. Likewise, Metra commuter
rail and Pace Suburban Bus has ready-to-go projects, has new starts
that are ready to go, to put people back to work, get them working, get
people moving. So to create more jobs, we need to pass the Nadler
amendment.
  Mr. NADLER of New York. Mr. Chairman, I yield 30 seconds to the
gentleman from New York (Mr. McMahon).
  Mr. McMAHON. Mr. Chairman, I strongly urge all of my colleagues to
support the amendment that I have jointly sponsored under the
leadership of Congressman Nadler, together with

[[Page H719]]

our other colleagues, to increase transit funding in H.R. 1 by $3
billion. Bang for the buck, nothing will help create more jobs than
funding transportation infrastructure.
  I have to say that my district has some of the longest commute times
in the country, and we need this mass transportation infrastructure
badly. People travel on average an hour and a half each way to work.
  I urge everyone to support this amendment.
  My district has some of the longest average commute times in the
country--with people travelling well over an hour and a half each way
to work. Meanwhile our MTA is seeking to raise our bus and subway
fares, cut service and if you can imagine raise the toll to $14, just
to go from SI to Brooklyn and back.
  Unfortunately my district is far from unique. Americans are demanding
more support for mass transit and that is why I encourage all of you to
support this important Amendment and to support this bill.
  Mr. NADLER of New York. I yield 30 seconds to the gentleman from
Minnesota (Mr. Ellison).
  Mr. ELLISON. Mr. Chairman, demand for transit service is on the rise.
In 2007, over 10 billion trips were taken on mass transit, a 50-year
record. Last year, 2008, we had a 4.4 percent increase; and yet, people
around the country are seeing decreases and more pressure is on public
transportation and they can't keep up with demand.
  With this extra $3 billion in this package, we will put people to
work and pursue a green economy and get people around.
  Mr. NADLER of New York. Mr. Chairman, I yield 30 seconds to the
gentleman from New York (Mr. Maffei).
  (Mr. MAFFEI asked and was given permission to revise and extend his
remarks.)
  Mr. MAFFEI. Mr. Chairman, I rise today in strong support of
Congressman Nadler's amendment for increased transit funding.
  Just today in my hometown paper, the Syracuse Post-Standard, it was
reported that the Central New York Regional Transportation Authority,
also known as Centro, is facing a $5 million shortfall. To close their
deficit, they are considering raising fares, cutting service and
eliminating routes. This cannot be an option, not now when the economy
is facing a recession.
  So I ask Members to vote in favor of this amendment. It will help
ensure citizens in my district, such as Ann Parquette, who is mentioned
in the article, can get to their jobs.
  I include my full statement in strong support of this amendment and
the related article from the Syracuse Post-Standard for the Record.
  I rise today in strong support of Congressman Nadler's amendment for
increased Transit Funding in the American Reinvestment and Recovery
Act. Just today, in my hometown paper the Syracuse Post Standard, it
was reported that Central New York Regional Transportation Authority,
also known as Centro, is facing a $5 million shortfall. To close their
deficit, they are considering raising fares, cutting service and
eliminating routes.
  This cannot be an option--not now when ridership is at an all time
high and more working families are absolutely dependent on public
transportation. Across the county, from the suburbs to the city of
Syracuse, more people need Centro to get them to work and the grocery
store. Centro rider Ann Parquette, who rides the bus to work, thinks
she will have to quit her job and find a new one closer to home if they
eliminate her route. Other riders who can currently afford the $1 fare
are not sure if they can make ends meet if that is increased by the 25
or 50% Centro is considering.
  When we're facing a recession, we cannot allow cuts that will hit our
lowest income workers the hardest. I urge my fellow Members to join me
in voting for the Nadler amendment for increased Transit Funding.

                [From the Post-Standard, Jan. 28, 2009]

                  Centro Plans Fare Hike, Service Cuts

                          (By S.J. Velasquez)

       Centro is proposing to raise bus fares and cut some
     services in an effort to make up a projected $5 million
     shortfall in the coming budget year, Centro officials said
     Tuesday.
       Centro wants to increase the Syracuse base fare from $1 to
     at least $1.25 and possibly to $1.50, officials said. Almost
     all other fares would also be increased under the proposal,
     they said.
       Frank Kobliski, executive director of Centro, said the
     changes are needed to make up for a loss in state aid and
     mortgage tax revenues and rising costs that create the
     projected deficit.
       ``The economy is such that we simply cannot put operators
     in seats and be able to come remotely close to keeping fares
     at a dollar,'' he said. ``Some cuts are necessary and
     inevitable.''
       This would be the first fare increase in 14 years, he said.
       Centro also is proposing to cut three routes and reduce
     service on three others.
       The biggest savings would come from eliminating its
     Suburban East No. 723 route that takes riders from Minoa,
     Manlius and DeWitt to ShoppingTown Mall where many catch
     other buses. Centro officials said that would save $435,000.
       "I don't know what I would do,'' said Ann Parquette, 51, of
     Minoa, who rides that bus twice a day to get to and from her
     job in the cafeteria at Jamesville-DeWitt Middle School.
       ``I'd probably quit my job and work at the school out in
     Minoa,'' she said. 'That'd be my best bet.''
       Parquette said she could get a ride to work from friends,
     but would have no means of getting home.
       Another person who could be stuck is Joseph Honor, 41, of
     Syracuse, a cook at Red Robin restaurant in Fayetteville. For
     the past three months since his car broke down, Honor has
     relied on the bus line to get to and from work.
       ``People work out there and they need a bus,'' he said.
       In downtown Syracuse, Centro rider Stephanie LaDue said the
     increase in fares would be hard for her to afford.
       ``I pay $20 a week easily right now,'' LaDue said. ``That
     will be almost $30 dollars for a . . . bus. This is going to
     be a pain.''
       LaDue, a single mother with a 5-month-old daughter, said
     she uses the bus to get to and from computer classes and
     support group meetings.
       Centro, which has a $58 million budget this year, is losing
     about $1.6 million in mortgage tax revenue and expects to
     lose about $1.33 million in state aid, officials said. The
     rest of the deficit--about $2.07 million--is caused by
     increases in the cost of supplies and other operating costs.
       Kobliski said a 25-cent fare increase would bring in an
     additional $1 million, but that increasing the base fare by
     50 cents wouldn't necessarily bring in another $1 million
     because Centro would lose riders.
       The final decision on whether to increase fares by a
     quarter or 50 cents will depend on how much state aid and
     federal economic stimulus money Centro gets, officials said.
       Service reductions could save another $1 million, Kobliski
     said.
       Centro officials said they would tap reserve funds and
     defer some capital expenditures to make up the shortfall.
       In addition to the fare increases, Centro is proposing
     closing the bus system an hour earlier on weekdays in
     Syracuse and Onondaga County, which would mean no service
     after 12:30 a.m. The weekend service already ends at 12:30
     a.m.
       Ridership is at an all-time high, so some may wonder why
     Centro is facing a shortfall. Ridership pays about 21 percent
     of the operational costs; the state pays 47 percent; the
     remaining 32 percent comes from federal, local and other
     sources.
       Centro will hold public hearings in February and then will
     present the proposals to the Centro board of directors. If
     approved, the fare increase would go into effect May 4.
       Centro plans to advertise the fare increase and service
     reductions on its Web site www.centro.org, in buses and in
     the public forums.

  Mr. NADLER of New York. Mr. Chairman, I yield myself the balance of
my time.
  Mr. Chairman, I want to say that I appreciate the support of this
amendment on a broad bipartisan basis, from Mr. Mica, the ranking
member of the Transportation Committee, from Chairman Oberstar, and
from the chairman of the Appropriations Committee, Mr. Obey. I urge
everyone to vote for it. This $3 billion will make a tremendous
difference to mass transit, to new starts in every State in the Union.
  Mr. WU. Mr. Chair, I rise today in support of the Nadler/DeFazio/
Lipinski/McMahon/Ellison amendment to the American Recovery and
Reinvestment Act that would further emphasize the need for America to
invest in transit projects across this country by committing $3 billion
more to transit projects.
  Except for education, there is almost no better way to stimulate the
economy than to invest in transportation projects. Additionally, to
move us forward to a clean energy economy, relieve traffic congestion,
and provide for safer roadways, public transit is one of the best
investments the federal government can make.
  An additional $3 billion for federal transit projects, which would be
distributed by adding $1.5 billion to the Transit Capital Assistance
formula program and providing $1.5 billion for New Starts, brings the
total funding for transit projects in this bill to $12 billion. This
amendment would provide adequate resources to invest in the estimated
736 shovel-ready transit projects across the country.
  These projects would bring jobs and a more efficient transportation
system into many American communities.
  I urge support of this worthy amendment.
  The CHAIR. The question is on the amendment offered by the gentleman
from New York (Mr. Nadler).

[[Page H720]]

  The amendment was agreed to.


               Amendment No. 5 Offered by Mr. Neugebauer

  The CHAIR. It is now in order to consider amendment No. 5 printed in
part B of House Report 111-9.
  Mr. NEUGEBAUER. Mr. Chairman, I have that amendment at the desk.
  The CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 5 offered by Mr. Neugebauer:
       Strike division A (and redesignate remaining provisions
     accordingly).

  The CHAIR. Pursuant to House Resolution 92, the gentleman from Texas
(Mr. Neugebauer) and a Member opposed each will control 5 minutes.
  The Chair recognizes the gentleman from Texas.
  Mr. NEUGEBAUER. Mr. Chairman, I rise in support of an amendment that
I have offered that would eliminate the $355 billion worth of
discretionary programs that are in this bill. A lot of people would
think there are a lot of good things in this bill, a lot of good
projects. We have heard a lot of Members talk about that. And there
probably are some projects in there that would be good for the
communities across our country. But there is just one problem: we don't
have $355 billion.
  What this amendment does is it says what the American people are
saying. They are concerned about the fact that we continued to borrow
and spend and borrow and spend. In fact, quite honestly how we got into
the situation we are in right now is the fact that individuals and
companies and even governments have borrowed and spent more money than
they have.
  When you ask the American people what do you think is the best way to
stimulate the economy, 63 percent of them say you should do it with tax
cuts for businesses and individuals.
  When you ask them do you think we can spend our way out of this
economic situation, 61 percent of Americans say we can't spend our way
out of this situation.
  I think the fact is that we need to understand what is really at
stake here. One of the things is that we are making a decision here in
somewhat of a vacuum. We don't even know for some of these projects how
much money we are going to spend in 2009 because Congress has not
finished its business for the current fiscal year. We also don't know
what we are going to spend on a lot of these projects in 2010 because
the President of the United States has not brought his budget to this
body.
  And so we are going to plus up and throw out a lot of money when we
already have accounts that have money in them that haven't been spent
year to date. So making these decisions in a vacuum is a problem.
  The other problem I have with this is we are going to spend about
$275,000 on each one of these jobs; $275,000, that is a lot of money to
spend for jobs, on top of the fact that we are going to have already a
$1.2 trillion deficit this year.
  What the American people are observing here is we are throwing a lot
of money, TARP money, bailout money, and now we want to spend $825
billion worth of money that we don't have that we are going to charge
to our grandsons and our children and future generations, and the
American people say stop, wait a minute, what's going on here?
  Now there are a lot of projects that maybe our Members think are
worthy in here, but think about the fact where we read this week where
people lost their jobs in America. All of us are concerned about that.
If you are talking about a stimulus package, a lot of the programs that
are in this spending won't even be spent until 2010, 2011 and 2012. In
fact, the GAO says less than 40 percent of the spending programs in
here could actually be spent in the next 18 months.
  The other piece of the pie that I think concerns a lot of us is have
we fully vetted this? This bill creates several new programs in
Congress that haven't even gone through the regular committee process.
So we are rushing up to spend a lot of money and create a large deficit
for our children without much oversight. I think the American people
deserve oversight. If we are going to spend money we don't have,
particularly, we owe them the process of looking at how much money we
are going to spend on a lot of these projects in the 2009 budget,
taking a look at the President's 2010 budget, and then determining if
there in fact should be some supplemental appropriations to be put in
to stimulate this economy.
  But I guarantee you that people back home don't think that planting
grass, giving money to the arts, or buying cars for Federal employees
are going to do much to help them keep or retain or create jobs in
America.
  I reserve the balance of my time.
  Mr. OBEY. Mr. Chairman, I rise to claim the time in opposition.
  The CHAIR. The gentleman from Wisconsin is recognized for 5 minutes.
  Mr. OBEY. Mr. Chairman, how much time does the gentleman have
remaining, and who has the right to close?
  The CHAIR. The gentleman from Texas has 1 minute remaining, and the
gentleman from Wisconsin has the right to close as a manager in
opposition to the amendment.
  Mr. OBEY. Mr. Chairman, I yield myself 3 minutes.
  Mr. Chairman, I am tempted to ask the Chair what year is this? I
thought it was--yeah, I didn't think it was 1933--I thought it was
2009, or something close to it. I guess all I would say is, you know,
they don't look like Herbert Hoover, but there are an awful lot of
people in this Chamber who think like Herbert Hoover, and I think this
amendment illustrates that.
  If you vote for this amendment, you'll be knocking out all funding
for education funding, including every single dollar in this bill to
prevent State and local governments from raising taxes in the middle of
a recession in order to avoid laying off teachers, in order to avoid
laying off speech therapists, school nurses, and the whole shebang.
  You would be cutting out all infrastructure. You would be eliminating
$30 billion for highway construction. Those jobs go blewy.
  You would be eliminating $19 billion for clean water projects, flood
control and environmental restoration. Those jobs go blooey.
  You would be eliminating all energy funding in this bill, $32 billion
to transform the Nation's energy transmission distribution production
systems. So those jobs go blooey. And we also lose the chance to
modernize this economy.
  All science funding, all of the jobs that would be provided in the
science area by this bill, those jobs are out the window.
  All of the jobs that would be created by giving rural America an
opportunity to get wired up with real broadband, just like the rest of
the country, that would be out the window, too.
  This amendment in my view demonstrates that some people recognize the
cost of everything and the value of nothing. It is an amendment that we
can ill-afford to pass, and I urge defeat of the amendment.
  I reserve the balance of my time.
  Mr. NEUGEBAUER. I appreciate the gentleman's comments. But I guess
the question I have of the gentleman when he closes, number one, where
are we going to get the money?
  Number two, does the gentleman know what funding is going to be spent
in 2009 and 2010 for these projects? Now he may know because in many of
the appropriation bills that have come to this floor, he is the only
one who has had much input in that process.
  So what we are doing, we are making a decision in a vacuum. To coin
the term of the gentleman who just spoke, ``kabooey'' goes to the
future of our young, next generation because we have left them with a
legacy of huge deficits which we do not have the capacity to pay back.
If we keep doing this, compounding this, making decisions on a quick
basis and mortgaging their future, we are not doing the job that the
American people sent us to do.
  So what I am saying is there are a lot of these projects that could
be brought in under regular order under the 2009 appropriation bill or
that could be brought in in 2010.
  Mr. OBEY. Mr. Chairman, I yield myself the balance of my time.
  Mr. Chairman, the fact is this economy is in mortal danger of
absolute collapse. We are trying to avoid that by injecting consumer
spending into the economy in hopes that it will reinflate the economy
at least to some degree. The fact is that the cost of doing nothing
would be astronomical.

[[Page H721]]

Of course this package costs money. How much will it cost us if the
credit markets totally freeze up? How much will it cost us if we lose
employment opportunities for another 3 to 4 million Americans?
  How much will it cost us in added unemployment compensation, in added
welfare payments and all of those items if we don't do something to
stave off economic disaster?
  This amendment is primitive economically. It does not recognize the
reality of a modern economy. I urge its defeat.
  I yield back the balance of my time.
  The CHAIR. The question is on the amendment offered by the gentleman
from Texas (Mr. Neugebauer).
  The question was taken; and the Chair announced that the noes
appeared to have it.
  Mr. NEUGEBAUER. Mr. Chairman, I demand a recorded vote.
  The CHAIR. Pursuant to clause 6 of rule XVIII, further proceedings on
the amendment offered by the gentleman from Texas will be postponed.


                 Amendment No. 6 Offered by Ms. Waters

  The CHAIR. It is now in order to consider amendment No. 6 printed in
part B of House Report 111-9.
  Ms. WATERS. I have an amendment at the desk.
  The CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 6 offered by Ms. Waters:
       Page 125, line 6, insert ``(including projects funded under
     section 6002 of division B of this Act)'' after ``sectors''.

                              {time}  1445

  The CHAIR. Pursuant to House Resolution 92, the gentlewoman from
California (Ms. Waters) and a Member opposed each will control 5
minutes.
  The Chair recognizes the gentlewoman from California.
  Ms. WATERS. Mr. Chairman and Members, this is not a complicated
amendment. It simply clarifies that funds provided for job training in
division A of this bill can be used for programs in division B, in
particular, for broadband communications deployment. What are we
talking about? We are talking about broadband infrastructure. The
broadband package authorizes the National Telecommunications and
Information Administration, a part of the Commerce Department, to
distribute $2.825 billion for wireless and wireline broadband through a
grant program.
  This is extremely important. Here we are in 2009. There are many
communities throughout this country that are simply underserved. They
do not have broadband. We are going to take this opportunity to repair
or to build out the broadband infrastructure. We're going to take this
opportunity to bring these communities up to date so that there can be
more jobs, so that businesses can be supported, and so that families
can have access to the kind of technology that will help them pursue
jobs and careers and for students to have access to the kind of
technology that will help them to communicate with other students and
with their teachers, et cetera, et cetera. This is very important.
  Now, the job training in this bill is in one section, and of course,
broadband infrastructure is described in another section. I simply
allow the job training resources to be used on broadband
infrastructure. Someone has asked, does this mean that you're taking
all of the money in job training for broadband? No. This simply means
that we make the opportunity available for this money to be used for
broadband infrastructure. Where did I get this idea? I was fortunate
enough to witness what could be done in the expansion of broadband
opportunities. In part of my district, we ended up with a training
class at one of our schools for the laying of fiberoptic. And the young
people who took advantage of this opportunity ended up getting trained.
They got good jobs. Many of them moved into other communities. They
bought homes. These are not simply dead-end jobs. These are careers
that can be developed with this kind of training. We know that there is
job training and there is job training. There is some of this job
training that is kind of classroom oriented. There are some jobs that
are so-called trained for that don't really exist.
  But this is real. We know that the telecommunications industry must
keep up with the expansion. We know that they do some training. We know
that they did more training in the past. But to the degree that we can
help get this training done, we can create jobs, expand broadband
opportunities and truly create these careers.
  So, I'm very pleased that approximately $1 billion would go to
deployment of wireless service, 25 percent to wireless voice service in
underserved areas and 75 percent to advance wireless broadband in
underserved areas. Approximately $1.825 billion would go to the
deployment of broadband via fiber or other wires, 25 percent to basic
broadband in unserved areas, and 75 percent to advance broadband in
underserved areas. This is a one-time opportunity to get a lot of young
people trained. It is not enough to say that we're going to do job
training that may lead to simply some jobs for a short period of time.
Some of those jobs may be in construction. But they will only last for
as long as the project will last. Some of those jobs that we hope to
come on line are not going to come on as quickly as we would like them
to. But these opportunities are waiting. These opportunities are
waiting, and the telecommunications companies and the contractors who
work with them can get this job training up and going immediately. And
it's not a long time. In the training that I witnessed for fiber
optics, we had people on the job within 3 to 4 months.
  The CHAIR. The time of the gentlewoman has expired.
  Ms. WATERS. I would ask support for this amendment.
  Mr. LEWIS of California. I rise to claim the time in opposition, Mr.
Chairman.
  The CHAIR. The gentleman from California is recognized for 5 minutes.
  Mr. LEWIS of California. And I do so very reluctantly, Mr. Chairman,
for the gentlelady from California and I have worked together for many
years. I'm not very excited about the job training provisions within
this bill. I'm opposing the bill generally. And in the final analysis,
I will end up voting against her bill. But I am not going to spend a
lot of time convincing people that she is wrong.
  I yield back the balance of my time.
  The CHAIR. The question is on the amendment offered by the
gentlewoman from California (Ms. Waters).
  The amendment was agreed to.


                  Amendment No. 7 Offered by Mr. Flake

  The CHAIR. It is now in order to consider amendment No. 7 printed in
part B of House Report 111-9.
  Mr. FLAKE. I have an amendment at the desk.
  The CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 7 offered by Mr. Flake:
         Page 212, strike lines 9 through 24.

  The CHAIR. Pursuant to House Resolution 92, the gentleman from
Arizona (Mr. Flake) and a Member opposed each will control 5 minutes.
  The Chair recognizes the gentleman from Arizona.
  Mr. FLAKE. Mr. Chairman, every year, we have a debate, it seems, in
the appropriations process about whether or not we should continue to
subsidize Amtrak. We've been having this debate for 40 years. In 40
years, Amtrak has not turned a profit, and the Federal Government has
had to subsidize it. Forty years. Yet here, after appropriating I think
it was $1.3 billion in subsidy last year to keep Amtrak running, we're
talking about providing another $800 million to Amtrak in this stimulus
package.
  Now I would argue that this is a mistake for two reasons. First, how
can we continue to provide this kind of subsidy for a program that
continually does not work? Every time a passenger steps aboard an
Amtrak train, the Federal taxpayer spends an average of $210 in subsidy
for that passenger. Not every year, not every month, but every time a
passenger steps on the train, he or she receives a subsidy on the
average of $210 from the Federal Government. Yet here we say Amtrak
needs more. We haven't done enough.
  We are not preparing it for privatization, or we haven't said, you
have to bring your load factor up from less than 50 percent. I think it
was some 47 percent last year. The airlines have a load factor around
80 percent. But no, we say, let's just give you more subsidy. Let's
keep you going as you are

[[Page H722]]

so you don't have to reform. Some reforms supposedly have been put in
place, but not reforms that have actually increased the load factor or
made Amtrak run any better, but rather it simply put it in need of more
subsidies. That is the first reason we ought to oppose it. We're simply
continuing and making it longer, stretching the time from which we will
see a profitable system.
  Second, regardless of the public good argument that you can make or
not make in regard to this legislation for Amtrak, you ought to make
the argument, or you should make, that this is not stimulus. How in the
world is providing another $800 million to a program that continues to
fail to turn a profit, a program that we have to continue to subsidize
to the tune of $210 per passenger on the average, how can we even argue
at all that this is stimulus, that this is somehow good for the
economy, that this is the best use for this money, that it's better
than letting the taxpayers actually keep it and spend it as they wish,
it's better than any other purpose, that we should provide it to a
system that is failing, and that is going to stimulate the economy.
  I would argue that if you're providing it to a program that continues
to run deficits, requiring subsidies of over $1 billion a year, that
should tell us, man, we ought to change something here. Maybe we ought
to provide stimulus in some other way, some way that would actually
stimulate the economy.
  Mr. LEWIS of California. Will the gentleman yield?
  Mr. FLAKE. I yield to the gentleman from California.
  Mr. LEWIS of California. The Members may find it rather amazing to
have me rise to be actively supporting an amendment by my colleague
from Arizona. The last time I found myself doing that was when I heard
in some mix that my friend from Arizona was opposed to subsidies for
agriculture, and that is actually in your district. But this one I
absolutely climb aboard, and I'm going to ride the train with you all
the way.
  Mr. FLAKE. Oh, good. I thought I was going to be thrown under the
train again. It's nice to have some agreement. But yes. This is simply
that if you want to look at it in terms of is this a good idea to
continue to subsidize like this? No. Is it stimulus? Certainly not.
Certainly not.
  I reserve the balance of my time.
  Mr. OLVER. Mr. Chairman, I rise to claim the time in opposition.
  The CHAIR. The gentleman from Massachusetts is recognized for 5
minutes.
  Mr. OLVER. Mr. Chairman, this amendment by the gentleman from Arizona
would strike all of the funding for Amtrak, the National Railroad
Passenger Corporation.
  I want to remind people that the primary objective of this economic
recovery bill is to fund ready-to-go projects that create jobs quickly.
And very few programs in this bill do that as fast as Amtrak. Amtrak
has $1.3 billion in ready-to-go projects that it can spend out in
fiscal 2009 and twice that that can be used in fiscal year 2010. Jobs
will be created immediately nationwide and include repairing
infrastructure, renovating stations to comply with the Americans with
Disabilities Act and rehabilitating or purchasing rolling stock for the
company.
  Mr. Chairman, I reserve the balance of my time.
  Mr. FLAKE. I would simply state, I was just told that I'm going to
strike all the funding for Amtrak. It makes it sound like we're taking
all the funding for Amtrak. I should point out this takes none of the
funding from Amtrak that we've approved in the regular appropriation
cycle. I wish it did strike it. But it doesn't. As I mentioned, I think
we have already provided in the last appropriation bill $1.3 billion in
subsidy. This is, yes, $1.3 billion in subsidy. This is another $800
million in addition to that in the stimulus bill that is supposedly
supposed to stimulate the economy.
  Let me say something else. Some may argue that we have to have Amtrak
because so many people rely on it and that it's their only form of
transportation. The actual statistics are that less than one-half of 1
percent of intercity travelers rely on Amtrak for travel, less than
one-half of 1 percent. So this is not something that we have to say,
oh, we've got to subsidize it again in the form of stimulus because so
many people rely on it for transportation.
  I would say please adopt the amendment.
  I yield back the balance of my time.
  Mr. OLVER. Mr. Chairman, I yield 2 minutes to the gentlewoman from
Florida, the chairwoman of the Railroad Subcommittee.
  Ms. CORRINE BROWN of Florida. Mr. Chairman, I rise in strong
opposition to this amendment.
  I just finished a 5-hour hearing where we had both passenger rail and
freight rail in a hearing. And we have the second largest committee in
infrastructure in the entire Congress because there is such an interest
in passenger rail.
  My colleague, I got some breaking news for you. There is no form of
transportation that pays for itself, none whatsoever, whether we are
talking about rail, airlines or cars, none of it. We subsidize all of
it. The chairman of the committee had recommended $5 billion for rail.
This is a very bad idea. I'm encouraging all of my colleagues to vote
``no.'' Kill this bad idea before it multiplies.
  Mr. OLVER. Mr. Chairman, how much time do I have?
  The CHAIR. The gentleman from Massachusetts has 3 minutes remaining.
  Mr. OLVER. Mr. Chairman, let me remind my colleagues, Amtrak provides
intercity passenger rail service over approximately 20,000 miles in 46
States which are owned by private freight railroads. But it also owns
and maintains 1,000 miles of track, particularly in the Northeast
Corridor, and half of all of Amtrak's passengers are carried in the
Northeast Corridor.

                              {time}  1500

  Amtrak has been consistently undercapitalized during its 37 years'
existence. The Department of Transportation's Inspector General
estimates that Amtrak's capital backlog on the Northeast Corridor alone
exceeds $10 billion to reach a state of good repair.
  On the NEC, some bridges date to the late 1800s. The electric
tracking system between New York and Washington was funded by the Works
Progress Administration as part of a 1930 stimulus bill, economic
stimulus. The speed and the capacity and the safety of the Northeast
Corridor rail passenger operations are at risk.
  This amendment should be defeated, and I urge that there be a ``no''
vote.
  I yield the remainder of my time to the chairman--or the ranking
member.
  Mr. MICA. Thank you. And I don't feel uncomfortable over on this
side.
  But let me say that this is the wrong amendment at the wrong time
here. We just finished, after 11 years of not having an Amtrak
reauthorization, in a bipartisan manner we put together reforms for
Amtrak that have been called for. Now we have an opportunity--and we've
worked together to reform it--to actually get it moving to provide a
difference in transportation alternatives, to provide a difference in
energy-efficient transportation, to provide a difference in the
environment. So why would we want to stop projects that need the
funding now and are ready to go and we've made the reforms?
  So I do not support the Flake amendment and urge my colleagues to
vote against it. And let's get Amtrak transportation and infrastructure
moving in this country.
  Mr. OBERSTAR. Mr. Chair, I rise in strong opposition to the amendment
offered by the gentleman from Arizona (Mr. Flake).
  The Flake amendment strikes $800 million in capital grants for Amtrak
to repair, rehabilitate, and upgrade its assets and infrastructure.
  The gentleman's amendment is misguided. Today, we are in the midst of
an intercity passenger rail renaissance. People are demanding greater
access to Amtrak as an alternative to our over-congested roads and
airways; to address continuing anxieties over the cost of fuel; and to
combat global warming.
  Indeed, Amtrak served more than 28.7 million passengers last year,
the sixth straight fiscal year of record ridership.
  The $800 million provided in H.R. 1 will create and sustain family-
wage construction and manufacturing jobs and is critical to meeting the
national demand for improved Amtrak service. It will help Amtrak
overhaul, upgrade, and expand its rolling stock; make required ADA
compliance upgrades to Amtrak stations; compete a range of needed
station and facility improvements that will brag them to a state-of-

[[Page H723]]

good repair; alleviate rail ``chokepoints'' outside the Northeast
Corridor; improve trip time and reliability; improve safety features on
the network; and increase the pace of the implementation of security
improvements across the Amtrak network.
  Supporting the Flake amendment would not only kill this investment in
our nation's mobility, it would also kill the benefits flowing from
this investment, including the creation of thousands of new jobs,
helping our beleaguered rail and steel industries, and improving the
flow of our nation's freight traffic. Supporting this amendment will
only hurt America's efforts as it seeks to recover from the current
economic crisis.
  I urge my colleagues to join me in opposing the gentleman's
amendment.
  The CHAIR. The question is on the amendment offered by the gentleman
from Arizona (Mr. Flake).
  The question was taken; and the Chair announced that the noes
appeared to have it.
  Mr. FLAKE. Mr. Chairman, I demand a recorded vote.
  The CHAIR. Pursuant to clause 6 of rule XVIII, further proceedings on
the amendment offered by the gentleman from Arizona will be postponed.


                 Amendment No. 8 Offered by Mr. Kissell

  The CHAIR. It is now in order to consider amendment No. 8 printed in
part B of House Report 111-9.
  Mr. KISSELL. Mr. Chairman, I rise to bring forth an amendment that
will be known as the Berry Amendment Extension Act.
  The CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 8 offered by Mr. Kissell:
       Page 111, after line 7 insert the following new section:

     SEC. 7005. 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.

  The CHAIR. Pursuant to House Resolution 92, the gentleman from North
Carolina (Mr. Kissell) and a Member opposed each will control 5
minutes.
  The Chair recognizes the gentleman from North Carolina.
  Mr. KISSELL. Mr. Chairman, the Berry Amendment has been in effect for
over 60 years and has allowed the Department of Defense to purchase
uniforms and other textile apparels as needed for our military to be
made and manufactured here in the United States.
  We know that textiles has brought forth the industrial revolution to
the United States from its very beginnings, but not any industry has
been hurt any more than textile has in the last few years in terms of
lost employment.
  Over 60,000 jobs have been lost throughout the Nation in the last
year; over 8,000 of those jobs in my home State of North Carolina, over
44 factories have closed. We have thousands of Americans that are
ready, willing and able to work, and we're being asked to consider a
recovery and reinvestment program to put Americans to work.
  This amendment would simply extend the Berry Act to be able to have
Homeland Security to purchase uniforms for the TSA to be made in the
United States. It would accomplish what we're looking for in the
Recovery and Reinvestment Act, it would put Americans to work, and
furthermore, it would keep Americans working.
  We know that we have lost so many jobs in this area. We have the
people that are ready, willing and able to work. I worked in textiles
for 27 years. I watched the jobs leave and good people be left
wondering where their meals are coming from and how they're going to
take care of their families. This is an opportunity to put Americans to
work and keep them at work. And what could be better than using our
money, our taxpayers' money for that purpose and to put uniforms on the
people that serve us?
  Mr. Chairman, I reserve the balance of my time.
  Mr. LEWIS of California. Mr. Chairman, I rise to claim the time in
opposition.
  The CHAIR. The gentleman from California is recognized.
  Mr. LEWIS of California. It is not my intention to take much of that
time, but I would yield 30 seconds to Mr. Westmoreland.
  Mr. WESTMORELAND. Mr. Kissell, I would yield to you. Do you think
it's wise for your constituents that you're trying to help to spend
$225,000 per job that pays $50,000?
  Mr. KISSELL. That is an incorrect figure, sir; it is less than that.
Americans are competitive, and if we're going to spend American
taxpayers' money, let's put Americans to work.
  Mr. WESTMORELAND. Mr. Kissell, do you think it's worth your
constituents saying that your district would pay $2 billion to create
the amount of jobs----
  The CHAIR. The gentleman's time has expired.
  Mr. KISSELL. I recognize the gentleman from North Carolina, Mr. David
Price, for 1 minute.

[[Page H724]]

  Mr. PRICE of North Carolina. Mr. Chairman, I rise in support of the
amendment of my North Carolina colleague, Mr. Kissell. It would apply
to the Department of Homeland Security purchasing rules similar to
those required of the Defense Department under the Berry Amendment,
requiring DHS to purchase clothing and other textile products grown,
reprocessed, reused or produced in the U.S. and its possessions.
  The proposed amendment would give the Secretary of Homeland Security
some flexibility to waive the domestic source requirements in cases
where there are inadequate domestic sources to meet the Department's
needs. The amendment also makes clear that it would not apply when
inconsistent with U.S. obligations under international agreements.
  I, nevertheless, have some reservations about how the amendment might
restrict the Department in carrying out its Homeland Security mission.
The Department is already subject to ``buy American'' requirements.
This amendment would go significantly further in requiring 100 percent
U.S. content of products, a target that could be impractical or
unreasonably costly in some circumstances.
  However, I appreciate my colleague's intentions with this amendment.
I will be happy to support the amendment with the understanding that
some modifications may be required to ensure that it does not pose an
undue burden on the Department and it does not compromise the ability
of the Department to carry out its Homeland Security mission. I look
forward to working with the gentleman to make any needed refinements
going forward.
  Mr. LEWIS of California. Mr. Chairman, I yield 2 minutes to the
gentleman from Pennsylvania.
  Mr. TIM MURPHY of Pennsylvania. In this $835 billion bill being
described as a ``jobs'' bill, it's good to see Representative Kissell
was able to offer this amendment to ensure American cloth is used for
these uniforms. His arguments are compelling that we should support
U.S. jobs.
  I offered a similar amendment to the health information technology
portion; $20 billion spending there. It was stripped out after the
Energy and Commerce Committee passed it unanimously and then rejected
by the Rules Committee.
  This bill also has a lot of other spending which is not protected for
U.S. jobs; $600 million for cars--no guarantee they're U.S. cars; $400
million for fuel-efficient buses. Guarantees for Americans? Not so
much. How about $871 million for computers at the State Department,
Agriculture and States? No. Nine hundred million for a new computing
center for the Social Security Administration? Not there. Two hundred
million for scientific equipment for the U.S. Geological Survey? Nope.
Five hundred million for new detection systems for the Department of
Homeland Security? Absent. How about $6.5 billion for broadband? No
guarantee made in the USA. How about $7.7 billion for Federal building
construction? Not there.
  If this is an American jobs bill, shouldn't we have included ``buy
American'' clauses for these other areas as well? It's disappointing
and frustrating that what happened with this bill in the Energy and
Commerce Committee was actively removed, and then it was refused by the
Rules Committee.
  I'm glad that we're going to be supporting American textiles. I'm
happy we're going to be supporting American steel. In a jobs bill, I'm
frustrated that there are no guarantees in here that so many of these
other jobs aren't going to happen in the United States.
  I worry that of these billions of dollars being spent, much of these
parts for computers, services and materials are going to be made
overseas. That's not about American jobs.
  Mr. KISSELL. Mr. Chairman, I recognize the gentleman from North
Carolina, Howard Coble, for 2 minutes.
  Mr. COBLE. I thank the gentleman for yielding.
  Mr. Chairman, this amendment will immediately help textile and
apparel companies because it will cover all uniforms purchased by the
Transportation Security Administration employees.
  The program can easily be expanded by the Obama administration to
cover FEMA, U.S. Customs, Border Protection, and U.S. Immigration
Service, nearly 100,000 uniformed employees in all.
  And as an aside, my friend from North Carolina has already mentioned
it, but the apparel and textile sector has been plagued as a result of
the dismal economic climate that we face now. They've lost over 60,000
jobs during the last 12 months. North Carolina alone has lost 8,000
textile and apparel jobs. Forty-four textile plants in America were
closed during the past year, 14 in North Carolina.
  And not unlike my friend, Mr. Kissell, I, too, come from a textile
family. My mama was a textile worker; sewed pockets in overalls at the
old Blue Bell plant in Greensboro. So I know the significance of a
textile check subsidizing the family income.
  I urge support of this amendment, and I urge my colleagues to support
it as well.
  Mr. KISSELL. Mr. Chairman, may I inquire as to the time remaining?
  The CHAIR. The gentleman from North Carolina has 30 seconds.
  Mr. KISSELL. I would just like to conclude by saying we're going to
put Americans to work making uniforms for those who protect us. It's a
good use of tax money.
  Mr. THOMPSON of Mississippi. Mr. Chariman, first, I want to thank the
Representative from North Carolina, Mr. Kissell for his amendment. The
original Berry amendment covering procurement for the United States
Military has ensured that U.S. troops wore military uniforms made from
U.S. textiles and manufactured by U.S. factories since the beginning of
World War II.
  As we know, things have changed dramatically since 1941. Since 2003,
the Department of Homeland Security has also been working hard to
provide our citizens with added security both at home and abroad. With
over 100,000 uniformed employees, I believe that it is imperative that
Berry admendment be extended to include uniform and textile purchases
at the Department of Homeland Security and offer my overwhelming
support for this amendment.
  Recent press reports have shown there are numerous questions of
security and safety related to the current procurement process for
these items. From the case of Customs and Border Protection uniforms
and badges being manufactured in Mexico, to the most recent case of
Transportation Security Officers reporting allergic reactions to the
formaldehyde used in the production of their new uniforms, we can see
the added benefit to not only the U.S. textile and manufacturing
industry, but in ensuring that these uniformed employees, receive the
quality that they deserve. I, like others, am deeply concerned that we
could have people crossing the border illegally wearing CBP or TSA
uniforms manufactured in foreign countries.
  Chairman, as you know, manufacturing as a whole has been on a steady
decline. My own state of Mississippi, much like many others, such as
North Carolina, have been negatively impacted by the increase in
overseas production of goods. I believe that this legislation is not
only about security and safety, but also a way to help those
communities that rely on the textile and manufacturing industry.
  While the amendment by Mr. Kissell is a great step to ensuring that
all DHS uniforms and textile purchases are made with U.S. components
and in U.S. factories, I also believe that it should also be ultimately
made permanent during the 111th Congress through the DHS Authorization
process.
  Thank you for the opportunity to express my support for this
important amendment and I encourage all of my colleagues to support
this amendment.
  Mr. Chairman, I yield back the balance of my time.
  Mr. LEWIS of California. Mr. Chairman, I yield back the balance of my
time.
  The CHAIR. The question is on the amendment offered by the gentleman
from North Carolina (Mr. Kissell).
  The amendment was agreed to.


                 Amendment No. 9 Offered by Mr. Platts

  The CHAIR. It is now in order to consider amendment No. 9 printed in
part B of House Report 111-9.
  Mr. PLATTS. Mr. Chairman, I have an amendment at the desk.
  The CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 9 Offered by Mr. Platts:
       Page 35, after line 5, insert the following:

       PART 4--FURTHER ACCOUNTABILITY AND TRANSPARENCY PROVISIONS

     SEC. 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:

[[Page H725]]

       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.

     SEC. 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.

     SEC. 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.''.

     SEC. 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.''.

     SEC. 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''.

     SEC. 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''.

     SEC. 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.''.

     SEC. 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).

     SEC. 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

[[Page H726]]

     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).''.

     SEC. 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:

     ``Sec. 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

[[Page H727]]

     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.''.

     SEC. 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.''.

     SEC. 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:

     ``Sec. 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.''.

     SEC. 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:

[[Page H728]]

       ``(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.

     SEC. 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).

  The CHAIR. Pursuant to House Resolution 92, the gentleman from
Pennsylvania (Mr. Platts) and a Member opposed each will control 5
minutes.
  The Chair recognizes the gentleman from Pennsylvania.
  Mr. PLATTS. Mr. Chairman, the amendment that I'm offering with my
colleague from Maryland (Mr. Van Hollen) would insert the text of the
Whistleblower Protection Enhancement Act--H.R. 985 in the last
session--into the underlying legislation.
  H.R. 985 passed by a bipartisan vote of 331-94 in 2007. This
amendment strengthens the inadequate protections currently afforded to
Federal employees who report illegalities, gross mismanagement and
waste, and specific dangers to the public health and safety.
  As proposed, the underlying bill includes whistleblower protections
for the employees of recipients of Federal funds approved through this
bill, including State and local employees and government contractors.
Federal employees responsible for overseeing the hundreds of billions
of dollars in spending in this bill, however, will remain inadequately
protected unless this amendment is adopted.
  In 1989, as a result of findings that the civil service protections
of the time were inadequate, Congress and the first Bush administration
enacted into law the original Whistleblower Protection Act (WPA). In
response to decisions by the Merit Systems Protection Board and the
Federal Circuit Court weakening the WPA, Congress adopted additional
whistleblower protections in 1994.
  Unfortunately, we are once again back to where we started. Since the
1994 amendments were adopted, more than 200 whistleblower cases have
come before the Federal Circuit Court; however, only three
whistleblowers have prevailed.
  The Federal Circuit Court has weakened whistleblower protections by
requiring that for a Federal employee to reasonably believe there is
evidence of waste, fraud or abuse, he or she must overcome with
``irrefragable proof'' the presumption that the agency was acting in
good faith. This is an unheard of legal standard defined in the
dictionary as ``impossible to refute.''
  With the enactment of this amendment, the court and administrative
decisions that undermine whistleblower protections would be overturned.
This amendment replaces the irrefragable proof standard with a
reasonable belief standard, grants employees the right to a jury trial
in Federal court if the head of an agency does not take action within
180 days, and ends the Federal Circuit Court's monopoly jurisdiction.
  Given the amount of money involved in the underlying legislation,
Federal whistleblower protections will be that much more important to
ensure effective oversight and accountability. As such, I urge adoption
of this amendment.
  Mr. Chairman, I yield to the gentleman from Maryland (Mr. Van
Hollen).

[[Page H729]]

  Mr. VAN HOLLEN. Mr. Chairman, I would like to commend Mr. Platts, Mr.
Waxman, Mr. Towns, Mr. Tierney, Mr. Braley and Mr. Price for their work
on this important issue.
  This economic recovery package contains about $550 billion in public
funds to support important national priorities. We need to make sure
these funds are effectively spent and that they're not lost through any
waste, fraud or abuse.
  The underlying bill provides protection for whistleblowers at the
State and local level. What this amendment does is to make sure that
our Federal employees also have whistleblower protections so if they
see waste, fraud or abuse, they can report it without fear of
retaliation or harm.

                              {time}  1515

  And as Mr. Platts has said, what we're doing is simply putting the
Whistleblower Protection Act that passed this body by a vote of 331-94
into this bill to make sure that these public funds are safeguarded and
that we ensure accountability in the process. I think all of us would
agree, regardless of our position on whether or not we should be
putting any particular amount into public investment, we want that
money safeguarded and protected against waste, fraud, and abuse. That's
what this amendment is about.
  Mr. Chairman, I reserve the balance of my time.
  Mr. REYES. Mr. Chairman, I rise to claim the time in opposition.
  The CHAIR. The gentleman from Texas is recognized for 5 minutes in
opposition.
  Mr. REYES. Mr. Chairman, although I am not opposed to this amendment,
I am concerned. I rise to speak about those concerns.
  Mr. Chairman, today I rise to address briefly the Platts amendment.
This amendment will make the changes to the law and procedures for
whistleblowers, including national security whistleblowers. As chairman
of the Intelligence Committee, this is a subject of great interest to
me, and I thank both Mr. Platts and Mr. Van Hollen for working to
address my concerns.
  I do believe that the procedure and process for national security
whistleblowers deserve a fresh look. I voted for this bill when it came
to the floor last Congress.
  My concern, Mr. Chairman, is that there's a process to be followed
here. This is an important issue, and I don't want it to get lost in
the shuffle in the context of this critical stimulus bill. Rather than
attach the amendment to a fast-moving appropriations bill where it
essentially becomes a footnote, it should instead be subject to regular
order, which will allow it to be refined and perfected.
  As someone who spent his career as a Federal employee, I believe in
strong whistleblower protections. I just think that this is a vital
issue that needs to be done right. I don't want to rush to a solution.
  The gentleman from Maryland (Mr. Van Hollen), one of the sponsors of
the amendment, has agreed that we will take care to address some of
these specific concerns related to classified information and national
security whistleblowers in conference. I want to thank him for that
commitment, and I look forward to working with both Mr. Van Hollen and
Mr. Platts on this very important issue.
  At this time, Mr. Chairman, I yield 2 minutes to the gentleman from
Michigan (Mr. Hoekstra).
  Mr. HOEKSTRA. Mr. Chairman, I thank my distinguished chairman of the
Intelligence Committee.
  I am opposed to the amendment in its current form. I'm encouraged
that Representatives Van Hollen and Platts have indicated that they are
willing to work with those of us on the Intelligence Committee to
address some of the concerns that we have.
  Why would we be concerned? I am strongly in favor of whistleblower
reform, and I think that we need to open up the process for
whistleblowers in the intelligence community so that we in the
Intelligence Committee sometimes can have a better understanding of
what's going on in the intelligence community. But this amendment makes
some grievous errors.
  First, it has nothing to do with economic stimulus. As the chairman
stated, this should have gone through regular order, but that's not
where we are today. I understand that a cottage industry seems to have
developed in pundits and speculation on intelligence programs, but it's
hard to see how this has anything to do with stimulating the economy.
  The amendment makes significant and potentially problematic changes
to the existing intelligence community whistleblower statute. Most
notably, it would effectively allow individual employees to judge what
classified programs they can and cannot discuss with Members outside
the Intelligence Committees. This not only defeats the purpose of
having an Intelligence Committee, it also significantly increases the
risk that other committees of the House will receive and potentially
act on bad information that they will be unable to fully and fairly
evaluate. The House Intelligence Committee is the only committee in the
House that deals with sources and methods, and it should stay that way.
  I am encouraged that we are going to be able to work with the
sponsors of this amendment through the process and make the necessary
changes so that when it comes back from a conference committee that it
will have addressed our concerns and it will reform the whistleblower
statute effectively.
  Mr. PLATTS. Mr. Chairman, I appreciate the chairman and ranking
member's and Intelligence Committee's concerns. I look forward to
working with them.
  Mr. Chairman, I yield 30 seconds to the distinguished Member from
Iowa (Mr. Braley).
  Mr. BRALEY of Iowa. Mr. Chairman, I am very delighted, as the floor
manager for the Whistleblower Protection Enhancement bill of 2007, to
be here to speak in strong support of the Van Hollen-Platts amendment.
There is no greater deterrent to waste, fraud, and abuse in the Federal
Government than by providing strong remedies to Federal whistleblower,
and this amendment does just that.
  I'm also very pleased that the amendments I introduced in committee
that were incorporated into the overall bill are going to be a strong
part of the overall deterrent impact, and I urge my colleagues in the
House to vote for this measure and give the Federal Government more
teeth in enforcing the bill.
  Mr. REYES. Mr. Chairman, I reserve the balance of my time.
  Mr. PLATTS. Mr. Chairman, I yield 30 seconds to the distinguished
gentleman from North Carolina (Mr. Price).
  Mr. PRICE of North Carolina. Mr. Chairman, I rise in support of the
amendment by my colleagues from Maryland and Pennsylvania. I voted for
similar legislation in 2007 because I support the gentlemen's goal of
adding these whistleblower protections for government workers.
  However, as drafted, the amendment appears to be at odds with some
Transportation Security Agency screener employment requirements and
might have the unintended effects of reducing TSA's capacity to react
to possible threats. So while I support this amendment, I do so with
the understanding that we may need to perfect it in conference to
ensure there are no unintended consequences.
  Mr. PLATTS. Mr. Chairman, how much time do I have remaining?
  The Acting CHAIR (Mr. Braley of Iowa). The gentleman has 30 seconds
remaining.
  Mr. PLATTS. Mr. Chairman, I yield the remaining 30 seconds to the
gentlewoman from Maine (Ms. Pingree).
  Ms. PINGREE of Maine. Mr. Chairman, I just want to add my support to
this measure and thank the Members of this body who have worked so hard
to bring this here previously and have also seen the wisdom of adding
this into the stimulus package.
  We have all been asked so many times how we're going to make sure
this money is well spent, how we're going to make sure that our
constituents get the value for which is in this. And I think this is
the best protection that we have making sure that those people who have
the information are there to tell us that.
  I want to tell one quick story.
  In 2004, Bunnatine Greenhouse, the highest-ranking civilian
contracting officer at the Army Corps of Engineers, exposed a pattern
of favoritism.
  The Acting CHAIR. The time of the gentlewoman has expired.
  Ms. PINGREE of Maine. I can't finish my story, but I want you to know
that

[[Page H730]]

she is one of the many workers that will be protected under this law,
and I look forward to everyone's support.
  The Acting CHAIR. The time of the gentlewoman has expired.
  Mr. REYES. Mr. Chairman, again I rise to thank both sponsors of this
amendment, Mr. Van Hollen and Mr. Platts, for agreeing to work with us.
  Mr. Chairman, I yield the balance of my time to Mr. Van Hollen.
  Mr. VAN HOLLEN. I thank Mr. Reyes, the chairman of the Intelligence
Committee, and the ranking member, Mr. Hoekstra. I again want to remind
the House this is a bill that has been voted on here before. It passed
with a bipartisan majority of 331-94. Nevertheless, Mr. Platts and I
have agreed to address the concerns that have been raised by the
Intelligence Committee. We will do that in consultation with the Senate
and conference committee to make sure that we're all on the same page
in agreement with respect to this national security component.
  Mr. TOWNS. Mr. Chair, I rise in strong support of the bipartisan
Platts/Van Hollen amendment. This amendment is identical to H.R. 985,
the Whistleblower Protection Act of 2007, which passed the House with
an overwhelming vote of 331 to 94, and which was reported by the
Oversight and Government Reform Committee by a vote of 28 to 0.
  The reason this measure enjoyed such strong, bipartisan support in
the last Congress is that it was carefully crafted with input from both
sides of the aisle. It is truly the result of bipartisan consultation
and agreement on this issue. And I want to thank Representatives Platts
and Van Hollen for their hard work on this measure.
   The amendment addresses several court decisions which have ignored
the intent of Congress and created loopholes which undermine the
current whistleblower statute's effectiveness and unreasonably limit
the nature of disclosures protected under current law.
  In addition, the amendment makes clear that national security
workers, employees of the Transportation Security Administration,
employees of government contractors, and workers who attempt to protect
the integrity of federal science are all entitled to protection from
retaliation for blowing the whistle.
  Protecting whistleblowers is not a Democratic or Republican issue. It
is an issue of importance to all Americans, because they are one of our
most potent weapons against waste, fraud, and abuse. Ensuring that
those who blow the whistle are protected from retaliation benefits all
Americans.
  I urge members to support this amendment.
  Mr. BRALEY of Iowa. Mr. Chair, as the Floor Manager of the
Whistleblower Protection Enhancement Act of 2007 last Congress, I rise
today in strong support of the Platts/Van Hollen amendment to H.R. 1,
the American Recovery and Reinvestment Act. This amendment, which would
insert the text of H.R. 985, the Whistleblower Protection Enhancement
Act from the 110th Congress, will strengthen protections for Federal
employees who speak out against waste, fraud, and abuse. I'm glad that
the amendment includes provisions I added last Congress to ensure that
whistleblowers are protected by remedies that deter retaliation against
them, and I believe the amendment is a critical addition to the strong
oversight and accountability provisions already included in the
underlying economic stimulus bill.
  H.R. 985 passed the House with strong, bipartisan support in early
2007. While a similar bill also passed the Senate, unfortunately these
enhanced whistleblower protections were not enacted into law. The
inclusion of the Whistleblower Protection Enhancement Act in H.R. 1
gives us a chance to swiftly enact strong and urgently needed federal
whistleblower protections. It will also help ensure that the taxpayer
dollars allocated by this important economic stimulus bill are spent
wisely and responsibly.
  Whistleblowers have long been instrumental in alerting the public and
the Congress to wrongdoing in Federal agencies. In many cases, the
brave actions of whistleblowers have led to positive changes that have
resulted in more responsible, safe, and ethical practices. In some
instances, the actions of whistleblowers have even saved lives.
Unfortunately, despite the importance of whistleblowers in ensuring
government accountability and integrity, court decisions by the U.S.
Court of Appeals for the Federal Circuit have undermined whistleblower
protections and have unreasonably limited the scope of disclosures
protected under current law.
  Hearings held in the Committee on Oversight and Government Reform
last Congress highlighted the need for expanded protections for workers
who shed light on wrongdoing by government agencies and departments.
Several hearings held by the Committee helped uncover waste and fraud
in government contracting, both here in the United States, and in
Iraq--waste and fraud which led to the loss of billions of taxpayer
dollars, and jeopardized the safety of Americans here at home, and
those serving abroad. At another hearing we learned that some officials
in the Bush Administration sought to manipulate Federal climate
science, compromising the health and safety of American families and
the future of the planet, solely for political gain. Perhaps the
starkest reminder of the need to protect those who refuse to remain
silent in the face of government wrongdoing came at the Committee's
March 2007 hearing at Walter Reed Army Medical Center, at which we
learned about the terrible living conditions and bureaucratic hurdles
that soldiers endured there. At the hearing, it became clear that
nobody dared to complain about the squalid living conditions and
inadequate care at what was supposed to be the best military medical
facility in the world because of a fear of retribution. Because of this
fear, it took an expose by a newspaper in order for action to be taken
on these severe and systemic problems, and many of our nation's heroes
had to suffer there for far too long.

  The inclusion of the Whistleblower Protection Enhancement Act in H.R.
1 will make important changes to existing law to strengthen protections
for government workers who speak out against illegal, wasteful, and
dangerous practices. This bill protects all federal whistleblowers by
clarifying that any disclosure pertaining to waste, fraud, or abuse,
``without restriction as to time, place, form, motive, context, or
prior disclosure,'' and including both formal and informal
communication, is protected. The bill also gives whistleblowers access
to timely action on their claims, allowing them access to federal
district courts if the Merit Systems Protection Board does not take
action on their claims within 180 days. In addition, the bill clarifies
that national security workers, employees of government contractors,
and those who blow the whistle on actions that compromise the integrity
of federal science, are all entitled to whistleblower protection.
  I'm also very pleased that this amendment includes language which I
added to the Whistleblower Protection Enhancement Act in the 110th
Congress to deter retaliation against federal whistleblowers. The
provisions I added in the Oversight Committee mark-up of the bill will
ensure that federal employees are protected by a right to a jury trial
in whistleblower cases, and that federal employees are able to recover
compensatory damages, including attorney's fees, interest, reasonable
expert witness fees, and costs. These provisions are essential to
ensuring that whistleblowers who face retaliation receive the fair
hearings and justice that they deserve.
  The passage of these important whistleblower protections is very
timely and appropriate, as we prepare to make a historic investment in
the American economy and American workers. I'm proud to be voting for
the American Recovery and Reinvestment Act today to jumpstart the
economy, create millions of jobs, and make critical investments in
renewable energy, healthcare, education and technology, and
infrastructure. An important component of this legislation is an
unprecedented level of transparency, oversight, and accountability,
including the creation of a Recovery Act Accountability and
Transparency Board, increased resources for the Government
Accountability Office and Inspectors General, and protections for state
and local whistleblowers. The addition of the Whistleblower Protection
Enhancement Act through the Platts/Van Hollen amendment will augment
these important oversight and accountability provisions, and will help
ensure the effectiveness and integrity of the stimulus bill. This
amendment will not only protect federal whistleblowers, but will also
protect American taxpayers.
  In closing, I strongly urge my colleagues to vote in support of the
Platts/Van Hollen amendment to the American Recovery and Reinvestment
Act today. This amendment will ensure the wise use of taxpayer funds,
the integrity of federal agencies and programs, and essential
protections for federal whistleblowers now and far into the future.
  Mr. THOMPSON of Mississippi. Mr. Chair, I rise today in support of
the Amendment offered by Mr. Platts and Mr. Van Hollen, which clarifies
and expands whistleblower protections to federal employees and
contractors.
  In particular, I would like to speak in support of the provision to
grant the Transportation Security Officers (TSOs) of the Transportation
Security Administration the whistleblower protections they so rightly
deserve. Mr. Chairman, our TSOs are not second class citizens and
should not be treated as such.
  In the 110th Congress, The Committee on Homeland Security worked to
give a broad range of rights to TSOs in section 408 of H.R. 1.
Whistleblower protections were a key part of this effort. Yet, when it
came time to vote on our Conference Report, these protections were
stripped from the final product. I am

[[Page H731]]

therefore pleased to stand here today, in full support of this
important and long overdue measure.
  In 2001, when the Transportation Safety Administration (TSA) was
created, Congress provided the TSA Administrator the power to set TSO
compensation, leave, and other basic employment rights. While this
initial vesting authority helped establish TSA, it continues to breed
confusion and low marks for management. The time for personnel
experiments is now over. TSOs deserve to be treated like every other
employee--fairly and equitably.
  This amendment takes an important first step to restore the basic
rights of the TSO workforce by providing them with the same whistle-
blowing rights as other federal workers.
  If you do not set up a system where employees are protected, there is
a disincentive to report offenses and the system remains inefficient
and hinders transportation security. In the end, the American public
may end up paying the price in terms of its security.
  Finally, I would be remiss if I did not remind my colleagues that
granting whistleblower rights to TSOs is not the end of our efforts; it
must be the beginning of a sustained push for the rights of TSOs, so
they are on par with their colleagues. We still have more work to do
for the TSO workforce, such as fully providing them with collective-
bargaining rights.
  Providing basic employment protections and rights is critical to
instill confidence in the workforce. These rights go a long way for the
morale and the health of the workforce. In fact, earlier this week, an
article was published that cited low marks for TSA management by the
workforce on recognition and rewards for performance and promotion
practices. I am submitting the article for inclusion in the record. We
are obligated to provide the most basic labor protections to our front
line workers who perform an important job and work to keep us all safe;
rights that are afforded to thousands of workers.
  As the Chairman of the Homeland Security Committee, I look forward to
working with my colleagues to provide not only these important
protections but full rights for this valuable and worthy workforce.
  Again, I commend my colleagues today on this important amendment and
encourage its passage and inclusion into H.R. 1.

             [From Government Executive.com, Jan. 26, 2009]

                TSA Employees Give Management Low Marks

                         (By Alyssa Rosenberg)

       Transportation Security Administration employees gave
     agency management low marks for recognizing and rewarding
     performance and encouraging creativity and fairness in the
     workplace, according to a 2008 internal survey TSA conducted
     and the American Federation of Government Employees recently
     released.
       From April 29 to June 27 of last year, 16,116 agency
     employees responded to the survey. Of that total, 21 percent
     of respondents said the process for rewarding and recognizing
     employees was fair, with 29 percent reporting that pay raises
     depend on job performance. Twenty-one percent of employees
     surveyed said the promotions process was fair and
     transparent, and 25 percent said differences in performance
     were recognized in a meaningful way.
       The results, compiled by TSA's Office of Human Capital,
     were an improvement from previous years. In 2006, the first
     year the question was asked, 18 percent said the rewards and
     recognition process was fair, and in 2004, only 8 percent of
     TSA employees said pay depended on performance. In 2006, 17
     percent of employees surveyed said the promotions process was
     fair, and 20 percent believed differences in job performance
     were recognized.
       ``We're looking to see the trends continue up,'' said
     Elizabeth Buchanan, TSA's deputy assistant administrator for
     human capital. ``I'm not sure there's some absolute value
     we'd like to get to.'' A disclaimer noted that survey results
     were for official use only. Government Executive obtained the
     survey documents from AFGE, which, along with the National
     Treasury Employees Union, is organizing TSA workers to obtain
     collective bargaining rights.
       TSA is not the only agency that has received mediocre
     scores on some of these questions. In the 2008 Federal Human
     Capital Survey, 28.5 percent of respondents governmentwide
     said they agreed or strongly agreed that pay raises depend on
     how well employees perform their jobs, a half of a point
     lower than TSA's score in the internal survey.
       Buchanan said the 2008 survey did not reflect all the
     changes that have been made to TSA's pay-for-performance
     system, and she believes the next survey will provide more
     meaningful data on pay perceptions.
       The 2008 respondents were more satisfied with benefits than
     with pay, with 36 percent saying they thought their salaries
     were fair and competitive with similar jobs in other fields,
     while 62 percent said their benefits ``have a strong impact''
     on their decisions to stay at the agency. Bill Lyons, a
     national organizer for AFGE involved with the union's efforts
     to organize TSA workers, said employee perceptions of
     arbitrary enforcement of pay and work rules were due partly
     to lax oversight by TSA of airport federal security
     directors.
       ``One officer said to me, `Bill, I walk into the airport
     every day and it's like I'm walking into Pandora's box. I
     don't know what's going to be there,' '' Lyons said. ``The
     federal security directors, I believe they each think their
     airport is their own little empire, and [their attitude is]
     `I can do whatever I want to do, whatever the directive is
     coming out of D.C.' ''
       Half the survey's respondents said their supervisor or team
     leader gave them useful suggestions for improving job
     performance, but only 38 percent said those supervisors
     modeled fair, inclusive and transparent behaviors themselves.
       Buchanan said she hoped some new programs would improve
     perceptions of management and consistent enforcement of
     agency directives. About 60 percent of the TSA workforce has
     participated in two training programs called COACH and
     ENGAGE, which aim to improve employees' confidence and
     increase the strength of communication between security
     officers and their supervisors.
       She also noted that a new peer review program, which has
     been launched in the nation's largest airports, already has
     addressed 32 cases in which employees felt they were being
     treated unfairly by management. As part of the program,
     panels of three peer employees and two supervisors hear
     complaints. If they conclude that an employee has been
     treated unfairly, they can overturn a federal security
     director's decision. Buchanan said TSA planned to roll out
     the program at all airports, but was still figuring out the
     time frame.
       Those initiatives are designed to address a gap in
     perception between how TSA employees feel about their work,
     and how they think the agency views them. Ninety-four percent
     of survey respondents said their work is important, but only
     22 percent said they feel personally empowered on the job and
     48 percent believed TSA values their work.
       Despite those frustrations, 66 percent of respondents
     reported that they were proud to work for TSA, and 64 percent
     registered overall job satisfaction. Seventy-eight percent of
     respondents said they were likely to stay at TSA for another
     year, and only 6 percent said they were likely to retire by
     the middle of 2009.
       ``A lot of people took this job out of wanting to dedicate
     themselves to the mission of protecting and serving the
     flying public,'' Lyons said. ``They look at it as a way of
     serving their country.''

  Mr. REYES. Mr. Chairman, I yield back the balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the
gentleman from Pennsylvania (Mr. Platts).
  The amendment was agreed to.


                 Amendment No. 10 Offered by Mr. Teague

  The Acting CHAIR. It is now in order to consider amendment No. 10
printed in part B of House Report 111-9.
  Mr. TEAGUE. I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 10 offered by Mr. Teague:
       At the end of section 1226 (page 25, after line 21), insert
     the following:
       (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

  The Acting CHAIR. Pursuant to House Resolution 92, the gentleman from
New Mexico (Mr. Teague) and a Member opposed each will control 5
minutes.
  The Chair recognizes the gentleman from New Mexico.
  Mr. TEAGUE. Mr. Chairman, this stimulus bill is about one thing first
and foremost: creating jobs. My amendment is about connecting out-of-
work Americans to those jobs.
  Just 2 days ago, on Monday, major companies across America laid off
70,000 workers. The United States economy has dropped nearly 2.6
million jobs since the recession began in December of 2007, raising the
unemployment rate to 7.2 percent last month. Experts worry that the
economy could now be losing as many as 600,000 jobs a month.
  Now, if you're reading about this recession in the newspaper, it's
numbers on a page. But for each and every one of those job losses,
there's an economic crisis at a kitchen table somewhere in America,
including quite a few kitchen tables in Southern New Mexico.
  So what we are doing is working with President Obama to put forward
an economic recovery package to spur the economy and create jobs. With
$30 billion for highways and bridges, we are creating 850,000 jobs.
With $10 billion

[[Page H732]]

for rail and mass transit, we are creating 200,000 jobs. And with $16
billion for clean water and flood control, we're creating 375,000 jobs.
  On top of that are the jobs created by investments in our schools and
renewable energy and more jobs from the stimulus provided by the tax
cut to 95 percent of Americans.
  To add to all of this, I'm offering a commonsense amendment to help
connect people to the new jobs we are creating. H.R. 1 requires the
creation of a Web site, Recovery.gov, to ensure greater accountability
and transparency in the government's economic recovery program.
  Well, that's a good idea. We need to keep a firm eye on all this
money to make sure it is well spent. But if we're going to have this
Web site, it has also got to do something to help the people that this
bill is all about: the folks trying to find a job.
  My amendment would simply require Recovery.gov to provide information
about the jobs created by this bill that would be useful to job
seekers.
  What my amendment basically says is this: If you're out of work or if
you're looking for a job, if you're trying to provide for your family,
we want to help. If you're willing to work, we want to do all we can to
help you get a job.
  I want to thank the chairwoman of the Rules Committee, Louise
Slaughter, for making this amendment in order. And I also want to thank
the chairman of the Appropriations Committee, Mr. Obey, for his
assistance. This is my first amendment as a Member of Congress, and it
was an honor to work with you both.
  Mr. Chairman, I reserve the balance of my time.
  Mr. WESTMORELAND. Mr. Chairman, I rise to claim the time in
opposition.
  The Acting CHAIR. The gentleman from Georgia is recognized.
  Mr. WESTMORELAND. Mr. Chairman, I appreciate the gentleman from New
Mexico and I think his sincere effort to try to do what would promote
these jobs, and I believe that he had the best intent. But as you will
find in this body, sometimes the best intent actually hinders what
you're trying to do.
  I would just like to ask the gentleman if he has given any concern as
to how much bureaucracy and red tape this is going to put on the
ability of these Americans that these jobs are creating to go to work.
  As Chairman Oberstar stated when he made comments earlier today,
these are shovel-ready jobs ready to go. He's going to have oversight
in 30 days to bring these people to where they can employ.
  I would like to ask the gentleman from New Mexico, and I will yield
to him the time, if he has given any study into how long it would take
to put this stuff on the Web that might hinder the ability of these
people to go to work immediately.
  Mr. TEAGUE. Mr. Chairman, this amendment has not been scored by the
Congressional Budget Office, but what we're doing is just putting some
extra information on the Web site, information that's useful to
Americans trying to get a job and go to work. Certainly whatever cost
would be incurred would be small compared to the expense of
establishing the Web site in the first place. It will be a minimum
amount.
  Mr. WESTMORELAND. Reclaiming my time, Mr. Chairman, what he has
actually asked to do is that the companies that are receiving this put
information on the Web site also.
  This bill was intended to put people to work immediately. And right
now, and the gentleman from New Mexico, who, I'm assuming, is going to
vote for this bill, understands that we are spending approximately
$225,000 or $250,000 for each job that this bill creates that will pay
$50,000. And I just would like to ask him one further question.
  Do you feel like it's right to put more burden on the small
businesses that are going to be taking this money to try to get it to
where they can stimulate the economy and create these jobs rather than
doing the bureaucratic paperwork that this amendment would require them
to do?

                              {time}  1530

  Mr. TEAGUE. Yes. Mr. Chairman, my amendment is just about creating
jobs.
  Mr. WESTMORELAND. Well, one last question, do you have any idea as to
how many jobs this would create, your amendment would create?
  Mr. TEAGUE. Yes. This particular amendment is about connecting people
looking for a job to the jobs, and I think it's a necessary part.
  Mr. WESTMORELAND. Well, I thank the gentleman for that.
  Reclaiming my time, I think this would really be a hindrance in doing
what has been stated so far today in getting these jobs and get them
immediately. We need help immediately.
  Now, I have some problems with whether this is really going to create
jobs or not, but, just in case it did, just in case the stimulus
package was going to do, because I have heard the same thing from
Chairman Obey about the importance of doing this right now, it's the
same argument we heard for the $700 billion in the bailout program that
is not unfrozen credit right now and has done nothing but made sure the
fat cats in New York have balanced their balance sheets.
  So with that, you know, I just want to take this opportunity to say
that while I think the intentions were good on this amendment, I think
it's going to do more harm than good. And there are so many times that
I have seen up here that people offered amendments, we passed bills
without looking at the final end use of it, not talking to the end
users, and I don't think that any businesses that are going to be
established to try to create some of these jobs would want to try to
spend as much time as it would take to go about trying to make sure
this amendment was put into law.
  I yield back the balance of my time.
  Mr. TEAGUE. If we are having a Web site, let's make it work for all
Americans looking for a job.
  I yield back the balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the
gentleman from New Mexico (Mr. Teague).
  The amendment was agreed to.


                  Amendment No. 11 Offered by Mr. Camp

  The Acting CHAIR. It is now in order to consider amendment No. 11
printed in part B of House Report 111-9.
  Mr. CAMP. Mr. Chairman, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 11 offered by Mr. Camp:
       Strike all after the enacting clause and insert the
     following:

     SECTION 1. SHORT TITLE, ETC.

       (a) Short Title.--This Act may be cited as the ``Economic
     Recovery Act of 2009''.
       (b) Table of Contents.--The table of contents of this Act
     is as follows:
Sec. 1. Short title, etc.

                        TITLE I--TAX PROVISIONS

Sec. 100. References.

    Subtitle A--Reduction in Individual Tax Rates For 2009 and 2010

Sec. 101. 10 percent rate bracket for individuals reduced to 5 percent
              for 2009 and 2010.
Sec. 102. 15 percent rate bracket for individuals reduced to 10 percent
              for 2009 and 2010.

       Subtitle B--Alternative Minimum Tax Relief For Individuals

Sec. 111. Extension of alternative minimum tax relief for nonrefundable
              personal credits.
Sec. 112. Increase in alternative minimum tax exemption amounts for
              2009 and 2010.

                Subtitle C--First-Time Homebuyer Credit

Sec. 121. Extension and modification of first-time homebuyer credit.

                Subtitle D--Tax Incentives For Business

                Part 1--Temporary Investment Incentives

Sec. 131. Special allowance for certain property acquired during 2009.
Sec. 132. Temporary increase in limitations on expensing of certain
              depreciable business assets.

              Part 2--5-Year Carryback of Operating Losses

Sec. 136. 5-year carryback of operating losses.
Sec. 137. Exception for TARP recipients.

         Part 3--Deduction For Qualified Small Business Income

Sec. 141. Deduction for qualified small business income.

      Part 4--Repeal of Withholding Tax on Government Contractors

Sec. 146. Repeal of withholding tax on government contractors.

     Subtitle E--Deduction For Qualified Health Insurance Costs of
                              Individuals

Sec. 151. Above-the-line deduction for qualified health insurance costs
              of individuals.

[[Page H733]]

Subtitle F--Temporary Exclusion of Unemployment Compensation From Gross
                                 Income

Sec. 161. Temporary exclusion of unemployment compensation from gross
              income.

          Subtitle G--No Impact on Social Security Trust Funds

Sec. 171. No impact on social security trust funds.

              TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS

Sec. 200. Short title.
Sec. 201. Extension of emergency unemployment compensation program.
Sec. 202. Additional eligibility requirements for emergency
              unemployment compensation.
Sec. 203. Special transfers.

            TITLE III--NO TAX INCREASES TO PAY FOR SPENDING

Sec. 301. No Tax Increases to Pay for Spending.

                        TITLE I--TAX PROVISIONS

     SEC. 100. REFERENCES.

       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.

    Subtitle A--Reduction in Individual Tax Rates For 2009 and 2010

     SEC. 101. 10 PERCENT RATE BRACKET FOR INDIVIDUALS REDUCED TO
                   5 PERCENT FOR 2009 AND 2010.

       (a) In General.--Clause (i) of section 1(i)(1)(A) is
     amended by inserting ``(5 percent in the case of any taxable
     year beginning in 2009 or 2010)'' after ``10 percent''.
       (b) Effective Date.--The amendment made by this section
     shall apply to taxable years beginning after December 31,
     2008.

     SEC. 102. 15 PERCENT RATE BRACKET FOR INDIVIDUALS REDUCED TO
                   10 PERCENT FOR 2009 AND 2010.

       (a) In General.--Subsection (i) of section 1 is amended by
     redesignating paragraph (3) as paragraph (4) and by inserting
     after paragraph (2) the following new paragraph:
       ``(3) Reduction in 15 percent rate for 2009 and 2010.--In
     the case of any taxable year beginning in 2009 or 2010, `10
     percent' shall be substituted for `15 percent' in the tables
     under subsections (a), (b), (c), (d), and (e). The preceding
     sentence shall be applied after application of paragraph
     (1).''.
       (c) Effective Date.--The amendment made by this section
     shall apply to taxable years beginning after December 31,
     2008.

       Subtitle B--Alternative Minimum Tax Relief For Individuals

     SEC. 111. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR
                   NONREFUNDABLE PERSONAL CREDITS.

       (a) In General.--Paragraph (2) of section 26(a) (relating
     to special rule for taxable years 2000 through 2008) is
     amended--
       (1) by striking ``or 2008'' and inserting ``2008, 2009, or
     2010'', and
       (2) by striking ``2008'' in the heading thereof and
     inserting ``2010''.
       (b) Effective Date.--The amendments made by this section
     shall apply to taxable years beginning after December 31,
     2008.

     SEC. 112. INCREASE IN ALTERNATIVE MINIMUM TAX EXEMPTION
                   AMOUNTS FOR 2009 AND 2010.

       (a) In General.--Paragraph (1) of section 55(d) (relating
     to exemption amount) is amended--
       (1) by striking ``($69,950 in the case of taxable years
     beginning in 2008)'' in subparagraph (A) and inserting
     ``($55,000 in the case of taxable years beginning in 2009 or
     2010)'', and
       (2) by striking ``($46,200 in the case of taxable years
     beginning in 2008)'' in subparagraph (B) and inserting
     ``($38,750 in the case of taxable years beginning in 2009 or
     2010)''.
       (b) Effective Date.--The amendments made by this section
     shall apply to taxable years beginning after December 31,
     2008.

                Subtitle C--First-Time Homebuyer Credit

     SEC. 121. EXTENSION AND MODIFICATION OF FIRST-TIME HOMEBUYER
                   CREDIT.

       (a) Extension of Credit.--Subsection (i) of section 36 (as
     redesignated by subsection (d)) is amended by striking ``July
     1, 2009'' and inserting ``January 1, 2010''.
       (b) Repeal of First-Time Homebuyer Requirement.--
       (1) In general.--Subsection (a) of section 36 is amended by
     striking ``an individual who is a first-time homebuyer of a
     principal residence'' and inserting ``an individual who
     purchases a principal residence''.
       (2) Conforming amendments.--
       (A) Section 36(b)(1)(A) is amended by inserting ``with
     respect to any taxpayer for any taxable year'' after
     ``subsection (a)''.
       (B) Section 36(c) is amended by striking paragraph (1) and
     by redesignating paragraphs (2) through (5) as paragraphs (1)
     through (4), respectively.
       (C) The heading of section 36 (and the item relating to
     such section in the table of sections for subpart C of part
     IV of subchapter A of chapter 1) are amended by striking
     ``first-time homebuyer'' and inserting ``homebuyer''.
       (c) Repeal of Recapture Rules.--
       (1) 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--
       ``(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.''.
       (2) Conforming amendment.--Subsection (g) of section 36 is
     amended by striking ``subsection (c)'' and inserting
     ``subsections (c) and (f)(4)(D)''.
       (d) Downpayment Requirement.--Section 36 is amended by
     redesignating subsection (h) as subsection (i) and by
     inserting after subsection (g) the following new subsection:
       ``(h) Downpayment Requirement.--No credit shall be allowed
     under subsection (a) to any taxpayer with respect to the
     purchase of any residence unless such taxpayer makes a
     downpayment of not less 5 percent of the purchase price of
     such residence. For purposes of the preceding sentence, an
     amount shall not be treated as a downpayment if such amount
     is repayable by the taxpayer to any other person.''.
       (e) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the
     amendments made by this section shall apply to residences
     purchased after December 31, 2008.
       (2) Downpayment requirement.--The amendment made by
     subsection (d) shall apply to residences purchased after the
     date of the enactment of this Act.

                Subtitle D--Tax Incentives For Business

                PART 1--TEMPORARY INVESTMENT INCENTIVES

     SEC. 131. 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.

     SEC. 132. 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.

              PART 2--5-YEAR CARRYBACK OF OPERATING LOSSES

     SEC. 136. 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) 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',
       ``(II) 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
       ``(III) 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.

[[Page H734]]

       ``(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, 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.

     SEC. 137. 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).

         PART 3--DEDUCTION FOR QUALIFIED SMALL BUSINESS INCOME

     SEC. 141. DEDUCTION FOR QUALIFIED SMALL BUSINESS INCOME.

       (a) In General.--Paragraph (1) of section 199(a) is amended
     to read as follows:
       ``(1) In general.--There shall be allowed as a deduction an
     amount equal to the sum of--
       ``(A) 9 percent of the lesser of--
       ``(i) the qualified production activities income of the
     taxpayer for the taxable year, or
       ``(ii) taxable income (determined without regard to this
     section) for the taxable year, and
       ``(B) in the case of a qualified small business for a
     taxable year beginning in 2009 or 2010, 20 percent of the
     lesser of--
       ``(i) the qualified small business income of the taxpayer
     for the taxable year, or
       ``(ii) taxable income (determined without regard to this
     section) for the taxable year.''.
       (b) Qualified Small Business; Qualified Small Business
     Income.--Section 199 is amended by adding at the end the
     following new subsection:
       ``(e) Qualified Small Business; Qualified Small Business
     Income.--
       ``(1) Qualified small business.--
       ``(A) In general.--For purposes of this section, the term
     `qualified small business' means any taxpayer for any taxable
     year if the annual average number of employees employed by
     such taxpayer during such taxable year was 500 or fewer.
       ``(B) Aggregation rule.--For purposes of subparagraph (A),
     any person treated as a single employer under subsection (a)
     or (b) of section 52 (applied without regard to section
     1563(b)) or subsection (m) or (o) of section 414 shall be
     treated as 1 taxpayer for purposes of this subsection.
       ``(C) Special rule.--If a taxpayer is treated as a
     qualified small business for any taxable year, the taxpayer
     shall not fail to be treated as a qualified small business
     for any subsequent taxable year solely because the number of
     employees employed by such taxpayer during such subsequent
     taxable year exceeds 500. The preceding sentence shall cease
     to apply to such taxpayer in the first taxable year in which
     there is an ownership change (as defined by section 382(g) in
     respect of a corporation, or by applying principles analogous
     to such ownership change in the case of a taxpayer that is a
     partnership) with respect to the stock (or partnership
     interests) of the taxpayer.
       ``(2) Qualified small business income.--
       ``(A) In general.--For purposes of this section, the term
     `qualified small business income' means the excess of--
       ``(i) the income of the qualified small business which--

       ``(I) is attributable to the actual conduct of a trade or
     business,
       ``(II) is income from sources within the United States
     (within the meaning of section 861), and
       ``(III) is not passive income (as defined in section
     904(d)(2)(B)), over

       ``(ii) the sum of--

       ``(I) the cost of goods sold that are allocable to such
     income, and
       ``(II) other expenses, losses, or deductions (other than
     the deduction allowed under this section), which are properly
     allocable to such income.

       ``(B) Exceptions.--The following shall not be treated as
     income of a qualified small business for purposes of
     subparagraph (A):
       ``(i) Any income which is attributable to any property
     described in section 1400N(p)(3).
       ``(ii) Any income which is attributable to the ownership or
     management of any professional sports team.
       ``(iii) Any income which is attributable to a trade or
     business described in subparagraph (B) of section 1202(e)(3).
       ``(iv) Any income which is attributable to any property
     with respect to which records are required to be maintained
     under section 2257 of title 18, United States Code.
       ``(C) Allocation rules, etc.--Rules similar to the rules of
     paragraphs (2), (3), (4)(D), and (7) of subsection (c) shall
     apply for purposes of this paragraph.
       ``(3) Special rules.--Except as otherwise provided by the
     Secretary, rules similar to the rules of subsection (d) shall
     apply for purposes of this subsection.''.
       (c) Conforming Amendment.--Section 199(a)(2) is amended by
     striking ``paragraph (1)'' and inserting ``paragraph
     (1)(A)''.
       (d) Effective Date.--The amendments made by this section
     shall apply to taxable years beginning after December 31,
     2008.

      PART 4--REPEAL OF WITHHOLDING TAX ON GOVERNMENT CONTRACTORS

     SEC. 146. REPEAL OF WITHHOLDING TAX ON GOVERNMENT
                   CONTRACTORS.

       Section 3402 is amended by striking subsection (t).

     Subtitle E--Deduction For Qualified Health Insurance Costs of
                              Individuals

     SEC. 151. ABOVE-THE-LINE DEDUCTION FOR QUALIFIED HEALTH
                   INSURANCE COSTS OF INDIVIDUALS.

       (a) In General.--Part VII of subchapter B of chapter 1 of
     the Internal Revenue Code of 1986 (relating to additional
     itemized deductions) is amended by redesignating section 224
     as section 225 and by inserting after section 223 the
     following new section:

     ``SEC. 224. COSTS OF QUALIFIED HEALTH INSURANCE.

       ``(a) In General.--In the case of an individual, there
     shall be allowed as a deduction an amount equal to the amount
     paid during the taxable year for coverage for the taxpayer,
     his spouse, and dependents under qualified health insurance.
       ``(b) Qualified Health Insurance.--For purposes of this
     section, the term `qualified health insurance' means
     insurance which constitutes medical care; except that such
     term shall not include any insurance if substantially all of
     its coverage is of excepted benefits described in section
     9832(c).
       ``(c) Special Rules.--
       ``(1) Coordination with medical deduction, etc.--Any amount
     paid by a taxpayer

[[Page H735]]

     for insurance to which subsection (a) applies shall not be
     taken into account in computing the amount allowable to the
     taxpayer as a deduction under section 162(l) or 213(a). Any
     amount taken into account in determining the credit allowed
     under section 35 shall not be taken into account for purposes
     of this section.
       ``(2) Deduction not allowed for self-employment tax
     purposes.--The deduction allowable by reason of this section
     shall not be taken into account in determining an
     individual's net earnings from self-employment (within the
     meaning of section 1402(a)) for purposes of chapter 2.''.
       (b) Deduction Allowed in Computing Adjusted Gross Income.--
     Subsection (a) of section 62 of such Code is amended by
     inserting before the last sentence the following new
     paragraph:
       ``(22) Costs of qualified health insurance.--The deduction
     allowed by section 224.''.
       (c) Clerical Amendment.--The table of sections for part VII
     of subchapter B of chapter 1 of such Code is amended by
     redesignating the item relating to section 224 as an item
     relating to section 225 and inserting before such item the
     following new item:

``Sec. 224. Costs of qualified health insurance.''

     .  (d) Effective Date.--The amendments made by this section
     shall apply to taxable years beginning after December 31,
     2008.

Subtitle F--Temporary Exclusion of Unemployment Compensation From Gross
                                 Income

     SEC. 161. TEMPORARY EXCLUSION OF UNEMPLOYMENT COMPENSATION
                   FROM GROSS INCOME.

       (a) In General.--Section 85 is amended by adding at the end
     the following new subsection:
       ``(c) Exclusion of Amounts Received in 2008 and 2009.--
     Subsection (a) shall not apply to any unemployment
     compensation received in 2008 or 2009.''.
       (b) Effective Date.--The amendment made by subsection (a)
     shall apply to amounts received after December 31, 2007.

          Subtitle G--No Impact on Social Security Trust Funds

     SEC. 171. NO IMPACT ON SOCIAL SECURITY TRUST FUNDS.

       (a) Estimate by Secretary of the Treasury.--The Secretary
     of the Treasury shall annually estimate the impact that the
     enactment of this Act has on the income and balances of the
     trust funds established under section 201 or 1817 of the
     Social Security Act (42 U.S.C. 401, 1395i).
       (b) Transfer of Funds.--If, under subsection (a), the
     Secretary of the Treasury estimates that the enactment of
     this Act has a negative impact on the income and balances of
     the trust funds established under section 201 or 1817 of the
     Social Security Act (42 U.S.C. 401, 1395i), the Secretary
     shall transfer, not less frequently than quarterly, from the
     general revenues of the Federal Government an amount
     sufficient so as to ensure that the income and balances of
     such trust funds are not reduced as a result of the enactment
     of this Act.

              TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS

     SEC. 200. SHORT TITLE.

       This title may be cited as the ``Assistance for Unemployed
     Workers Act''.

     SEC. 201. 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 201(a) of the Assistance for
     Unemployed Workers 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.''.

     SEC. 202. ADDITIONAL ELIGIBILITY REQUIREMENTS FOR EMERGENCY
                   UNEMPLOYMENT COMPENSATION.

       Section 4001 of the Supplemental Appropriations Act, 2008
     (Public Law 110-252; 26 U.S.C. 3304 note) is amended by
     adding at the end the following:

                 ``Additional Eligibility Requirements

       ``(g)(1) In General.--A State shall require as a condition
     of eligibility for emergency unemployment compensation under
     this Act for any week--
       ``(A) in the case of any individual described in paragraph
     (2), that such individual--
       ``(i) have a secondary school diploma or its recognized
     equivalent; or
       ``(ii) be making satisfactory progress in a program that
     leads to a secondary school diploma or its recognized
     equivalent; and
       ``(B) in the case of any individual described in paragraph
     (3), that such individual participate in reemployment
     services or in similar services (or, if such services were
     ongoing as of when such individual most recently exhausted
     regular compensation before seeking emergency unemployment
     compensation, that such individual continue to participate in
     such services), unless the State agency charged with the
     administration of the State law determines that--
       ``(i) such individual has completed such services as of a
     date subsequent to the commencement of emergency unemployment
     compensation; or
       ``(ii) there is justifiable cause for such individual's
     failure to participate in such services.
       ``(2) Individuals to Whom Paragraph (1)(A) Applies.--The
     requirements of paragraph (1)(A) shall apply in the case of
     any individual who was under age 30 at the time of filing an
     initial claim for the regular compensation that such
     individual most recently exhausted before seeking emergency
     unemployment compensation.
       ``(3) Individuals to Whom Paragraph (1)(B) Applies.--The
     requirements of paragraph (1)(B) shall apply in the case of
     any individual who, as of the time of filing an initial claim
     for the regular compensation that such individual most
     recently exhausted before seeking emergency unemployment
     compensation, was identified under the State profiling system
     (described in section 303(j) of the Social Security Act) as
     being a claimant who--
       ``(A) was likely to exhaust regular compensation; and
       ``(B) would need job search assistance services to make a
     successful transition to new employment.
       ``(4) Effective Date.--This subsection shall apply in the
     case of any individual filing an initial application for
     emergency unemployment compensation after the end of the 3-
     month period beginning on the date of the enactment of this
     subsection.''.

     SEC. 203. SPECIAL TRANSFERS.

       (a) In General.--Section 903 of the Social Security Act (42
     U.S.C. 1103) is amended by adding at the end the following:

          ``Special Transfer in Fiscal Year 2009 for Benefits

       ``(f)(1) In addition to any other amounts, the Secretary of
     the Treasury shall transfer from the Federal unemployment
     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
     $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).
       ``(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 cash
     benefits to individuals with respect to their unemployment,
     exclusive of expenses of administration.

       ``Special Transfer in Fiscal Year 2009 for Administration

       ``(g)(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)(2) 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 improvement of unemployment benefit and
     unemployment tax operations, including responding to
     increased demand for unemployment compensation; and
       ``(B) 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).

[[Page H736]]

            TITLE III--NO TAX INCREASES TO PAY FOR SPENDING

     SEC. 301. NO TAX INCREASES TO PAY FOR SPENDING.

       (a) Findings.--The Congress finds that--
       (1) according to the economic forecast released by the non-
     partisan Congressional Budget Office on January 7, 2009,
     unemployment in the United States is expected to be above the
     level estimated for calendar year 2008 until the year 2015,
     and
       (2) raising taxes on families and employers during times of
     high unemployment delays economic recovery and the creation
     of new jobs.
       (b) Declaration of Policy.--It is the policy of the United
     States that--
       (1) outlays from the Treasury of the United States that
     occur as a result of any provision of this Act shall not be
     offset through the enactment of new legislation that results
     in increases in revenues to the Treasury of the United
     States, but, if such outlays are offset, such offsets shall
     be through the enactment of legislation that results in a
     reduction in other outlays, and
       (2) the effective rate of tax imposed on individuals or
     businesses shall not be increased, whether by operation of a
     provision of existing law or the enactment of new
     legislation, during any year in which unemployment is
     projected to exceed the level of unemployment for calendar
     year 2008.

  The Acting CHAIR. Pursuant to House Resolution 92, the gentleman from
Michigan (Mr. Camp) and a Member opposed each will control 30 minutes.
  The Chair recognizes the gentleman from Michigan.
  Mr. CAMP. I yield myself 4 minutes.
  Just briefly, I want to outline a summary of the Camp-Cantor
substitute to H.R. 1. This legislation would provide and reduce the
income taxes of every American who pays income taxes and also provide
for a maximum family benefit of about $3,400 a year. This bill also
contains a health insurance premium deduction which helps bring
fairness to the tax treatment of health insurance by providing a new
deduction for those who do not receive tax-preferred employer-sponsored
coverage, regardless of whether they itemize or take the standard
deduction.
  We also provide help for America's small businesses and employers by
creating a 20 percent deduction for small business income. Now this is
a group that employs nearly half of all private-sector employees in
America and created nearly 80 percent of the new jobs in the United
States in recent years.
  We also have bonus depreciation and small business expensing,
providing employers, both large and small, enhanced incentives to make
the critical investments they need to grow our economy and create jobs.
We expand the net operating loss carry-back to 5 years rather than 2.
We also repeal the 3 percent withholding requirement for government
contracts.
  And to stabilize home values, we help reduce housing inventory by
extending the $7,500 home buyer tax credit through December 2009. We do
require that there be a 5 percent down payment so we don't get into the
problems that we are facing again, and also eliminate the complicated
recapture rules that currently require home buyers to pay the
government back if they claim the credit.
  We also provide unemployment assistance. We exempt unemployment
benefits from Federal income tax for 2008 and 2009, and we extend
unemployment benefits, as the base bill does, through December 2009
with a phaseout through mid 2010.
  We also require that younger long-term unemployed are required to
pursue a GED or other training, which would certainly help as they move
into more training and into the job market. I would also say that, and
during debate last night, I mentioned the recent CBO studies that show
that tax cuts actually impact the economy more quickly than government
spending.
  CBO is the Congressional Budget Office, it's nonpartisan, and they
help analyze and score the various legislative proposals that we have
in the Congress. Not only have CBO and economists from every political
stripe confirmed that tax cuts impact the economy more quickly than big
government spending, we even have an analysis by President Obama's
nominated senior economic adviser that shows that tax cuts provide more
immediate growth and job creation in the economy than does spending.
  So tax cuts provide a bigger bang for the buck. When the methods and
economic models developed by the President's top economic adviser are
applied to the Republican plan, it shows the Republican plan could
create as many as 6.2 million jobs over the next 2 years. That's more
than double the plan, the base bill that we have before us.
  Now, let's be clear about where these estimates come from. They come
from the President's senior economic adviser. The President's nominee
to chair the Council of Economic Advisers, Dr. Christina Romer, and her
peer reviewed research. This isn't just her statement, this is a
statement that's been reviewed by peers and economic analysts from
around the country. So even in applying Dr. Romer's most conservative
estimate, her analysis, along with that of Jared Bernstein, Vice
President Biden's senior economic adviser, shows the Republican plan
results in about 6.2 million jobs over 2 years. The cost of our bill is
$478 million, so nearly twice the job creation for half the cost.
  The Acting CHAIR. The time of the gentleman has expired.
  Mr. CAMP. I would yield myself an additional 30 seconds.
  I just want to repeat, the analysis and estimates I am giving you are
taken directly from public analysis of the President's senior economic
advisers. Republicans didn't develop these ourselves. We are applying
their methodology and their analysis to our legislation.
  So with the results of the peer-reviewed research, we find that our
plan would create 6.2 million jobs. Our bill will create more at a
substantially lower cost.
  I reserve the balance of my time.
  Mr. RANGEL. I rise in opposition to the amendment.
  The Acting CHAIR. The gentleman from New York is recognized for 30
minutes.
  Mr. RANGEL. Mr. Chairman, I yield myself 5 minutes and ask unanimous
consent that the remainder of the time be allowed to be controlled by
Richard Neal, a distinguished member of the Ways and Means Committee.
  The Acting CHAIRMAN. Is there objection to the request of the
gentleman from New York?
  There was no objection.
  Mr. RANGEL. Mr. Chairman, not only does the other side reject this
plea of our newly elected President, but for whatever political reasons
insist on sticking their thumb in the eyes of millions of Americans, 11
million of them unemployed. Ninety-five percent of all of our taxpayers
are being asked to have this tax cut be rejected, people who work every
day, people who dream, people who aspire, are now going to be told that
some people in the House of Representatives voted against the
President's bill and the bill that's before us on this historic day.
  I don't know what occasion it was, but the late Jack Kennedy once
made a remark that sometimes, just sometimes your party asks too much
of you. And for Members of the other side that are being asked in this
substitute to vote against exciting infrastructures that would take us
into a modern technology to be competitive, that would deny poor folks
money for energy, for air conditioning and heat, food stamps, health
information technology, why they would ask you to vote against this I
will never but never know.
  And then as a substitute for this, not only do we remove the tax
benefits from the low and the middle class, but to find some category
of doctors, lawyers, consultants and lobbyists and just say, across the
board, they have decided not to give you the 20 percent tax cut,
because you know it's not going to happen, but just to suggest it so
you might get famous in the future.
  It just seems to me that there should be some compassion for working
families that have children. There should be some understanding that
people who work each and every day, and still come out under the
poverty line or close to it, are entitled to the earned income tax
credit so that they can meet their basic needs of rent, paying their
mortgage, food, clothing. Every community, not Democrats, but Democrats
and Republicans are feeling the impact of these fiscal crises that we
are going through.
  Banks don't cry, fiscal institutions don't cry, but people in the
neighborhood cry when they lose their job, lose their dignity and they
will have to tell their kids that they are pulling them out of college,
all the provisions that

[[Page H737]]

we put in, and especially those that provide incentives for teachers
and kids and school construction.
  How could you do it? What were you thinking, and just how are you
going to explain it when you get back home?
  I really think that this goes beyond politics because I don't think
the people back home should be made to pay for political decisions that
are being made here, but there is a particular part in this bill that
the House and Senate wanted in there, and that was a $6 billion tax
benefit for crises that exist in our cities and in our rural areas,
which allows local governments, based on census tracts, not based on
your party line, not whether you are a Democrat or a Republican, but
just based on unemployment, based on how many people are poor, how many
people are feeling the pain of this crisis.
  Oh, I know Wall Street in my district is inconvenient and the banking
CEOs have been inconvenient, but the people that are suffering are
American people, are middle class people. That's the dream that we have
in this country, not to be rich and certainly not to be homeless.
  But we even had a provision for the work-opportunity training
program. It came from one of your Members that said, what about the
veterans, they came out feeling that they were going to be accepted as
the heroes that we all believe they are, and yet have extended
unemployment. What do you say when you go home and tell them that that
too has been stripped from the bill, as have kids that have special
problems?
  It's painful to believe that this is being discussed in a political
way, because I would like to believe that it's America that's in
trouble, not a party that's in trouble. And people are going to
evaluate what's in this paper. I congratulate the Republicans for their
honesty.
  This thing is talking about cutting away tax benefits for our working
poor people. And so it seems to me that people to learn more about this
might contact their Representatives, Democrat or Republican, and I am
confident at the end of the day that Congress will do the right thing,
not by their party but by their country.
  Mr. CAMP. I yield 2 minutes to the gentleman from Texas (Mr.
Hensarling).
  Mr. HENSARLING. I thank the gentleman for yielding, and I listened
carefully to the distinguished chairman of the Ways and Means
Committee. We agree there are people who are suffering.
  But, Mr. Chairman, the people who are going to suffer the most are
children and grandchildren who are about to inherit $1.2 trillion of
additional debt burden for a piece of legislation that has not received
one, not one congressional hearing and will have little to no economic
stimulus.
  Now, Mr. Chairman, something else I agree on with my friends on the
other side of the aisle, this Nation needs a stimulus bill, but we need
an economic stimulus bill, not a big government stimulus bill. That's
why, Mr. Chairman, I am proud to rise in support of the Republican
alternative that will help preserve jobs, that will help grow job
opportunities in small businesses all across America. I am proud to
support an alternative that will expand the paycheck of working
Americans so that they can pay for their mortgages, so that they can
send their kids to college, so that they can pay their health care
premiums.

                              {time}  1545

  I am proud to support an alternative that helps the unemployed at
this time of need, that will help reduce the housing glut from the
market and, perhaps, even more importantly, Mr. Chairman, doesn't send
the bill to our children and our grandchildren.
  What our Democrat colleagues send us is a bill that, even if you were
a Keynesian, doesn't help stimulate economic growth. Only 3 or 4
percent of this is about traditional infrastructure. Instead, we have
$50 million for the National Endowment for the Arts, $1 billion for
Amtrak, an extra $1 billion to follow up the Census. Over half of this
bill is on traditional big government.
  We know what Rahm Emanuel, the former chairman of the DNC has said:
never waste a crisis. They are not wasting it. They are building big
government.
  Mr. NEAL of Massachusetts. I yield myself such time as I may consume.
  Before I yield to Mr. Levin, I want to challenge something that the
gentleman from Texas has said. I want everybody to remember what it was
like on January 19, 2001, when I hear the Republicans complaining about
debt and deficits. We were looking at a $5.7 trillion surplus. The debt
had come down and the deficits had been eliminated.
  Now their argument is--frankly, a stale one, but they cling to it--
that tax cuts pay for themselves as we look at now a debt of almost $10
trillion. And I hear these protestations of what this legislation will
do after they were in control of two branches of government, two
Chambers of the House, and the Presidency, and they rolled up these
extraordinary deficits and debts.
  Reminder. The war in Iraq, which is going to cost almost $2 trillion
before it comes to conclusion. And they pontificate on this House floor
about the debt?
  With that, I yield 2 minutes to the gentleman from Michigan (Mr.
Levin).
  (Mr. LEVIN asked and was given permission to revise and extend his
remarks.)
  Mr. LEVIN. I am really saddened to hear the Republican substitute. We
have new challenges, and now we hear again the same old song; tax
breaks, tax reductions. But the way they tailor it, a family with
$30,000 would get what, less than 10 percent of a family that is making
three times that? Unbalanced tax cuts.
  Mr. Camp, if I might, you and I have known each other for a long
time. We are going to go back to Michigan. I think perhaps you won't go
until the weekend. And here's what you're going to have to defend by
trying to defeat our package. A reduction in health and education
benefits for the State of Michigan of $2.2 billion, when our colleges
are in trouble in terms of enrollment and our schools are in trouble in
terms of providing a good education and school construction.
  You're going to have to go back to Michigan and say to at least
25,000 families that health care provided under the Democratic
approach--and I hope it's a bipartisan approach--would be eliminated.
And you're going to have to go back, and I use you, Mr. Camp, and it's
true throughout this country.


                    Announcement by the Acting Chair

  Mr. CAMP. Mr. Chair, I would ask that the remarks be addressed to the
Chair.
  The Acting CHAIR. Members should address their remarks to the Chair.
  Mr. LEVIN. I will do that. Because what I was saying about Michigan
would be true throughout this country. Infrastructure in Michigan, we
are providing over $1 billion. This is for Michigan.
  The Acting CHAIR. The time of the gentleman has expired.
  Mr. NEAL of Massachusetts. I yield the gentleman 30 seconds.
  Mr. LEVIN. Your bill would eliminate that, when we need to build
roads, fix bridges. And we talk about the auto industry and the need
for a new industry with electric vehicles. And your proposal on the
Republican side would eliminate $2 billion for battery development.
  It's really a sad day for you to come here with the same old tune.
  The Acting CHAIR. The time of the gentleman has expired.
  Mr. NEAL of Massachusetts. I yield 15 seconds to the gentleman from
Michigan.
  Mr. LEVIN. The families today are in fear. I want to make this point.
They are afraid, not only of losing their jobs, but education for their
kids, and health care.
  Our proposal addresses these fears. Yours ignores them. I urge its
defeat.


                    Announcement by the Acting Chair

  The Acting CHAIR. The Chair would remind Members not to direct their
remarks to each other in the second person, but rather to address the
Chair.
  Mr. CAMP. I thank the Chair for that admonition. I would yield 2
minutes to a distinguished member of the Ways and Means Committee, the
gentleman from Wisconsin (Mr. Ryan).
  Mr. RYAN of Wisconsin. Mr. Chair, I will keep my remarks within 2
minutes.
  Mr. Chair, we can do better than that. We need to do better than
that. Our country is losing tens of thousands of jobs every single
week. We thought we were going to have bipartisanship here. That is
what we were promised. None of that has occurred here.

[[Page H738]]

  Mr. Chair, the most favorable measurement, the most favorable way to
look at this package, 12 percent of this package is aimed at keeping
jobs, at creating jobs. Twelve percent of this package goes toward
creating or keeping jobs. All the rest of it is spending. Just plain,
old spending. Spending, most of which occurs 2, 3, 4, 5 years from now,
not during this recession.
  It's not enough for us to come here and criticize. So we have come
here with our own ideas. We have come here to propose an alternative.
And when you look at the way our bill works, the measuring stick used
by President Obama's own economic advisor says that our bill that we
have here creates twice as many jobs--6.2 million--for half the costs.
  So we have not only said this is a bad bill that we are considering,
but here's a better way. Twice as many jobs, half the cost for
taxpayers, 6.2 million jobs. This is a bill that should pass--the
Republican substitute.
  Unfortunately, since there was no bipartisanship, no inclusion, we
could have made a better bill that would pass into law, but it's not.
So here we are with our alternatives. Using the President's own
measuring stick on how you create, this creates more at less price,
less cost to the taxpayers.
  But, unfortunately, because one party rules government and because
one party is ruling it completely on their own, we will have missed
this opportunity to create more jobs, save taxpayers' money, and not
waste all of this spending.
  Mr. NEAL of Massachusetts. Mr. Chairman, I yield myself such time as
I may consume.
  The Bush tax cuts don't expire until 2010. There will be sufficient
opportunity for us to discuss many of the issues raised by the
gentleman from Wisconsin. We will have plenty of time to discuss those.
  Mr. RYAN of Wisconsin. Would the gentleman care to yield?
  MR. NEAL of Massachusetts. With that, I'd like to recognize the
gentleman from Wisconsin (Mr. Kind) for 2 minutes.
  (Mr. KIND asked and was given permission to revise and extend his
remarks.)
  Mr. KIND. I thank my good friend for yielding me this time. In a
second, I want to address the issue about the expiration of the Bush
tax cuts.
  First, it's just not accurate to claim that we have been operating
under a very closed process. I know the leadership on the Democratic
side and certainly the chairmen of the Appropriations Committee and the
Ways and Mean Committee were open to suggestions for good ideas to be
included in this economic recovery and investment act.
  In an unprecedented fashion, the newly-elected President, President
Obama, visited Capitol Hill to meet directly with both Senate and House
Republicans to hear their thoughts about the recovery package.
  Mr. CAMP. Would the gentleman yield?
  Mr. KIND. I have very limited time. Maybe you can get some time on
your own.
  That is why I am proud to be able to stand and support this economic
recovery package and commend the chairmen of the Appropriations and
Ways and Means Committee for the package they put together because I
believe it is bold, I believe it's going to be fast-acting, I believe
it's going to create jobs, but I also believe it's going to end, which
is an important feature of what we are trying to do, contrary to what
they are trying to do with their substitute, so that we don't continue
to incur unfunded liabilities out into the future. In fact, I
reluctantly oppose the substitute because it undermines the help and
support that so many struggling working families need in this country
right now.
  For instance, their substitute would eliminate the Making Work Pay
tax credit that will provide tax relief to 95 percent of Americans in
this country. In fact, it effectively eliminates 23 million low-income
families from any tax relief whatsoever.
  It also eliminates tax relief for families with over 16 million
children by doing away with the expansion of the child tax credit that
we have included in our bill. It would also eliminate the American
Opportunity tax credit that will provide tax relief for more than 4
million students.
  But, in a very clever way, they indefinitely extend the Bush tax
cuts, which are universally recognized today as benefiting the most
wealthy by saying that we cannot do any tax reform in this country--
  The CHAIR (Mr. Tierney). The time of the gentleman has expired.
  Mr. NEAL of Massachusetts. I'd like to recognize the gentleman for an
additional 30 seconds.
  Mr. KIND. They say that we cannot do any meaningful tax reform in
this country so long as the unemployment rate does not dip below the
2008 numbers, which would be anywhere from 4.8 percent to a little over
5 percent. And everyone knows that that will be years from now, under
the best circumstances, before that unemployment rate drops below that
number.
  So, in a clever way they are adding to this unfunded obligation for
an indefinite numbers of years out, increasing the debt burden that our
Nation currently has, and jeopardizing our children's future by
extending those tax cuts indefinitely.
  I encourage my collages to oppose this substitute of support H.R. 1.
  Mr. CAMP. Mr. Chairman, I yield myself 15 seconds. I would just say
that we offered 19 amendments in the committee. None of them were
accepted. I think we did get a GAO study accepted. But none of our
substantive amendments were.
  And I would just say to my good friend from Michigan, who asked how I
could go home, I would ask him how he can go home and provide half the
jobs at twice the cost.
  With that, I yield 1 minute to the distinguished member of the Ways
and Means Committee, the gentleman from California (Mr. Herger).
  Mr. HERGER. Thank you. Mr. Chairman, this is a good Republican
alternative. It preserves some of the best features of the underlying
bill, like extending increased small business expensing and bonus
appreciation, and repealing the onerous 3 percent withholding
requirement for government contractors. In addition, it eliminates
hundreds of billions of dollars in wasteful spending and adds fast-
acting tax relief to help our economy now.
  It improves on the underlying bill by extending assistance to laid-
off small business employees by allowing all individuals to deduct the
cost of their health insurance premiums. And, unlike the underlying
bill, it cuts taxes for all taxpayers and protects middle-class
families from a huge tax increase under the alternative minimum tax.
  Mr. Chairman, this is real economic stimulus. I urge an ``aye'' vote.
  Mr. NEAL of Massachusetts. Mr. Chairman, I yield 2 minutes to a
member of the Ways and Means Committee, the gentleman from California
(Mr. Becerra).
  Mr. BECERRA. I thank the gentleman for yielding. Recovery,
reinvestment. That was what President Obama promised the American
public when he went throughout the country and talked about how he
would change this country and take it into a new direction.
  After years of deficits and lack of accountability, President Obama
told the country that he promised an open government, transparent
process, and responsible policymaking so that the American people would
know that we were taking America back to soundness.
  Jobs, jobs, jobs. That is what President Obama has talked about, that
is what he promised. And that is what this legislation that is on the
floor, the bill that stands before you, tries to do, is focus on
creating jobs directly by helping States that are saying they are going
to cut their budgets instead of create jobs, by helping American
businesses that are saying we are about to fire employees, and instead
provide them with tax cuts to let them keep jobs and create new ones,
and also by telling the American public we will fulfill President
Obama's promise of a direct tax cut to 95 percent of America's working
families.
  On the other hand, we have a substitute amendment that we are
presented here today that would go back to what we had under Bush
policies.

                              {time}  1600

  It is much of what we saw before, tax policies that are skewed to
those who are wealthier, to let it then trickle down to those who work
very hard.

[[Page H739]]

Why else would you have most of the benefits going to the top fifth
Americans who are those who are hurt the least by this economic
downturn? Why would this bill cut, eliminate, the entire amount of the
Making Work Pay tax credit that President Obama proposed would go to 95
percent of working Americans? Why would this Republican substitute
eliminate any tax relief whatsoever for 23 million families in America
who happen to be our more modest income earning Americans? They work,
nonetheless, but they would be cut out.
  We need to move forward with investment and recovery. I urge Members
to vote against the Republican substitute.
  Mr. CAMP. Mr. Chairman, at this time I yield 2 minutes to the
distinguished member of the Ways and Means Committee, the gentleman
from Illinois (Mr. Roskam).
  Mr. ROSKAM. Mr. Chairman, I thank the gentleman for yielding.
  I think we have a ``stop the presses'' moment. I think there is new
news that has come upon this Congress that we can celebrate, take this
bill out of the record and hit the reset button, because the good news
is that President Obama's own economic team or those that are poised to
become that economic team have said there is good news for a new idea.
And the new idea is this substitute that is offered by Mr. Camp and Mr.
Cantor that says for half the cost it can have twice the impact. That
is powerful. And if we are truly in a spirit of bipartisanship, if we
are truly, as the President says, in a moment where authorship doesn't
matter, then we need to stop the presses.
  Mr. Chairman, we can create 6.2 million jobs in 2 years based on this
substitute. And where I come from, that is good every day all the time.
  Mr. NEAL of Massachusetts. Mr. Chairman, I would like to recognize at
this time the gentleman from New Jersey, a valuable member of the Ways
and Means Committee, Mr. Pascrell, for 2 minutes.
  Mr. PASCRELL. Mr. Chairman, in Italian we say ``tutti possible,''
anything is possible on this floor.
  We passed in 2008, eliminated the AMT tax, but we paid for it. You
missed something. You left out a paragraph: We paid for it. And we are
going to handle it again.
  For the last 8 years, we have passed a number of tax cuts for big
business and the wealthiest 1 percent of the Americans. We were warned
in the summer of 2001, not 2003, 2006; 2001, we were warned what was
going to happen. We could not pay for those tax cuts in 2001, 2003, and
2005, and today we are being lectured about deficit. Not only look at
the results of November; look at the American people, where they stand
today on this tax cut, Democrats, Republicans, Independents across the
board.
  This substitute eliminates the Making Work Pay tax credit, it
eliminates the child tax credit, it eliminates the American Opportunity
tax credit for more than 4 million students. It eliminates
approximately $40 billion in tax benefits to assist State and local
governments in financing their infrastructure needs. They can't do it
because they don't have the money to do it. This is not make work; this
is important work for the American people.
  This substitute continues the practice of providing tax cuts for the
wealthiest Americans, and it ain't going to happen anymore. There is a
new day and a new culture even on this floor. Even though everything
and anything is possible here, that ain't possible.
  Mr. CAMP. At this time I yield 3 minutes to the gentleman from
Indiana (Mr. Pence).
  (Mr. PENCE asked and was given permission to revise and extend his
remarks.)
  Mr. PENCE. I thank the gentleman for yielding. I rise in support of
the Republican alternative to H.R. 1.
  Mr. Chairman, our Nation is in recession and millions of American
families are hurting. Many have lost their jobs. Many now worry that
they will be next. And it is absolutely right that this Congress is
taking decisive action in the early days of 2009. But the bill the
House Democrats have brought to the floor is not about stimulating the
economy. The only thing this Democrat bill will stimulate is more
government and more debt. Under the guise of stimulus, House Democrats
have brought a partisan bill to the floor. It is merely a wish list of
longstanding liberal Democrat priorities that have little to do with
putting our economy back on its feet.
  Millions of Americans are asking today, what does $50 million to the
National Endowment for the Arts have to do with creating jobs? What is
$400 million for climate change research going to do to put people back
to work in Indiana? And what is $335 million for sexually transmitted
disease education going to do to get this country working again?
  Most House Republicans will oppose this bill tonight for one reason:
It won't work. More big government spending on liberal programs won't
cure what ails the American economy. House Republicans have a better
solution: Fast-acting tax relief for working families, small
businesses, and family farms.
  According to analysis and economic models used by President Obama's
top economic advisers when applied to our plan, we come with one
conclusion: Twice the jobs, half the cost with the Republican
alternative.
  Now, Democrats also said that we are going to pass temporary and
targeted stimulus legislation. But as I close, let me remind the
American people and anyone gathered here, Mr. Chairman, what we keep
hearing. From the Speaker of the House that I greatly respect to other
colleagues that have come to the floor, we have heard that this bill is
about ``taking America in a new direction.'' Well, I say with great
respect, Mr. Chairman, I thought this was about creating jobs.
  This long litany, $136 billion in program spending, is simply about
trying to reorder the budget priorities according to the whims of a
Democrat majority. What we ought to be doing is coming together across
this middle aisle, across the partisan divide, as our new President has
challenged us to do, bring the best ideas, the best minds, the best
solutions. This Republican alternative is the best solution. I urge its
support.
  Mr. NEAL of Massachusetts. Mr. Chairman, I would like to recognize
the distinguished gentleman from Oregon, a member of the Ways and Means
Committee, who really does know something about infrastructure and
environmental undertakings, Mr. Blumenauer, for 2 minutes.
  Mr. BLUMENAUER. I appreciate the gentleman's courtesy and his
leadership in this area.
  I listened to my friend from Indiana wondering what could possibly
have economic impact investing in the arts or climate change. Well, I
don't know what is going on in Indiana, but if you talk to the arts
groups in Oregon or in Massachusetts or in New York or Illinois, they
will tell you that investments there will produce economic activity in
areas that are strained and underserved. Investment in climate change
and energy research creates jobs, and business is crying out for it,
large and small.
  But I am pleased that they have come forward with their alternative.
Listen closely to what the Republicans say: ``If we assume what some
economic model applies to the way we would like our legislation to
work, it would be twice the jobs for half the cost.'' These are the
same people that told us the Bush tax cuts were going to lead to
nirvana. These are the people that said that the Clinton economic
programs would lead to disaster; they were dead wrong about the economy
in the Clinton era. Look at the results of their models when they have
been put into place: Exploding deficits, problems with the economy.
  I am glad, however, that they have offered this alternative, because
it puts in clear relief what their priorities are: Reduce tax relief
for 95 percent of the American public and give more to the few who need
it the least. Take money away from 4 million students who would have
this tax relief. My favorite of their proposals is to actually continue
to game the alternative minimum tax to purposely push more people into
it with tax gimmicks rather than work with us in fundamental tax reform
that doesn't subject more people to the ATM and give us this yearly
charade.
  I look forward to the leadership of Chairman Neal in Select Revenue,
where we will fix the AMT. I strongly

[[Page H740]]

urge the rejection of the misguided Republican priorities, taking away
the infrastructure investments that would make so much difference for
our communities and undercut our American families.
  Mr. CAMP. I yield myself 15 seconds.
  We hold harmless in our legislation on the AMT, and we reduce taxes
on 100 million American families, every American family that pays
taxes.
  With that, I would yield 1 minute to the distinguished minority
leader, the gentleman from Ohio (Mr. Boehner).
  Mr. BOEHNER. Let me thank my colleague from Michigan for yielding and
congratulate him and our Republican whip, Eric Cantor, for the proposal
that they have on the floor.
  I think that the plan that we have on the floor, our alternative, is
rooted in the principle that fast-acting tax relief will create more
jobs in America than a lot of slow-moving government programs. The bill
that we have on the floor, the underlying bill, has as an example 32
brand new government programs that spend $136 billion.
  Now, we all know how long it takes to get a new program up, the
bureaucracy that has to be hired, before we could ever get that money
out into the economy. We also know there is a lot of other spending in
this bill that while it may be well-meaning, it may be well-
intentioned, we know it is not going to create jobs. And sending 300
plus million dollars to the Center for Disease Control to do whatever
is not going to create new jobs in America. We are going to build
bigger bureaucracies.
  Or, we could talk about the $650 million that is going to be spent
with digital TV coupons. Now this looks like a slush fund to me because
about 94 percent of the old TVs that need these boxes to receive
signals have already been purchased; so only about 6 percent of the TVs
in America actually need these boxes. So that would be about $30
million, $40 million, maybe $50 million. What is the other $600 million
going to be used for?
  The point is, is that the underlying bill, while it certainly has
some good provisions, has a lot of wasteful spending, a lot of slow-
moving government spending in it.
  When I gave Ms. Pelosi the gavel on the opening day as Speaker of the
House, I told her the Republicans would not come to the floor and just
be the party of ``no''; that we would try to be the party of better
ideas. And last week when we had the SCHIP bill on the floor, we
brought a proposal out here which we thought was a better idea. Today,
in this debate, we think that we have a better idea.
  President Obama has made clear that he believes that the goal here
should be to preserve jobs in America and to create new jobs in
America. And I think that the proposal that we have that puts more
money back in the hands of American families and small businesses, that
helps homeowners and people who want to buy a home, that takes away the
tax liability for those who are unemployed and getting unemployment
insurance, that this bill in fact will be better for the American
people, that better meets the goal that the President himself has
outlined.
  And we want to work with the President. We have made clear to him
that he has reached out, and we are reaching out to him, because at the
end of the day, the American people need a plan that works. We all know
our economy is in a difficult strait. We all know that people are
losing their jobs, tens of thousands of them, every week. And so we
have to act and we have to help our ailing economy. The question is,
how do we do it best? And we believe this fast-acting tax relief is the
way to get it done.
  Then we find out today that our proposal will create 6.2 million jobs
over the next 2 years, about twice as many as the underlying bill and
at about half the cost.
  Remember, at the end of the day this bill that we are going to pass
is not being paid for by taxpayers today; it is going to be paid for by
our kids, our grandkids, and their kids. We have to be cognizant of the
debt that we are putting on them. And so I would urge my colleagues to
support the Republican substitute, support a bill that will create 6.2
million jobs, twice as many as the underlying bill at about half the
cost.
  Mr. NEAL of Massachusetts. Mr. Chairman, I would remind all that for
6 years we tried the prescription that was offered by the minority
leader and his party, the slowest economic growth that America has had
since World War II.
  With that, I would like to recognize the gentleman from North Dakota,
a member of the Ways and Means Committee, Mr. Pomeroy, for 2 minutes.
  Mr. POMEROY. We have all looked at the continued practices of some on
Wall Street with utter amazement. After crashing their companies,
taking their part in tanking our economy, the excesses that we have
continued to see have appalled us all.
  I guess if there is a legislative equivalent of not getting the
message, like those that continue those utterly disgraced practices on
Wall Street, it would be a proposal that would continue an economic
policy of trying to shift the tax cuts disproportionately to the
wealthiest, stiff the working poor, and hope somehow that the largesse
trickles down and the economy comes back.

                              {time}  1615

  We should have learned our lesson. This has been the fiscal policy of
the Republican Party in the House for the last decade. And what harm,
what harm we have seen. Oh, it has not been harmful for everybody
because if you were at the top, the top of this income pyramid, you did
very, very well. But average taxpayers saw their earnings decline and
stagnate, leading to greater levels of debt and the hardship we see
today.
  So I am fairly astounded that we see a substitute that goes back to
the tired old Republican formula of letting the top have everything and
the others get shortchanged. Under their proposal, the top 20 percent
of households, and only the top 20 percent get the full tax cuts, and
they are not proportionally spread at all. Married couple, two
children, incomes over $100,000, they get almost $3,500 under the
Republican substitute, 17 times the $200 tax cut the couple making
$30,000 would receive. Vote for fair tax relief; reject this
substitute.
  Mr. CAMP. I yield 3 minutes to the distinguished gentleman from
Michigan (Mr. McCotter).
  Mr. McCOTTER. We in Michigan in my community are listening to this
debate very closely. We are listening very closely because one of the
things that we are painfully aware of is how our Nation does not want
to see double digit unemployment, does not want to see families lose
their homes, their jobs and their nest eggs. We are listening very
closely because in Michigan we are living your nightmare now: 10.6
percent unemployment, foreclosures skyrocketing, people's nest eggs
eroding. And in Michigan, they were heartened by President Obama's
request to work with the Republican minority. It was a request he did
not have to make. Legislation can pass this Chamber without a single
Republican vote. And yet in raising the tone, the tenor, the decorum in
Washington, he reached out to House Republicans, and we responded by
putting forward our solutions.
  Do we expect the President or even the Democratic majority to accept
all of them? No, that would be unfair on our part. But what would be
equally unfair is for them not to be fairly considered at all by the
Democratic majority.
  We believe that there is merit in our proposal as it provides twice
the jobs at half the cost. It could be incorporated into a responsible
bill within President Obama's framework that he laid out for a
temporary stimulus package.
  The three elements were a sane, humane strengthening of the social
safety net, tax relief for working families and small businesses, and
accelerated, responsible infrastructure that would have a permanent
benefit to the economy as we worked on the deeper, underlying problems.
  What we have before us today, unfortunately, is a missed opportunity.
It is an opportunity I hope we will get to rectify should the
legislation come back because at the present time this legislation is
not an immediate economic growth stimulus. It is, in fact, a wasteful
government spending bill. We can do better together. I trust we will
because as the families in my community understand, Congress cannot
continue governing like gamblers in the

[[Page H741]]

hole spending other people's money. We will have to make difficult
decisions, but we will have to do them together.
  Mr. NEAL of Massachusetts. Mr. Chairman, I yield 1 minute to the
gentleman from New York (Mr. Higgins), a new member of the Ways and
Means Committee.
  Mr. HIGGINS. Mr. Chairman, the Republican substitute would eliminate
$550 billion in targeted investments, including tens of billions of
dollars for road and bridge construction for economically distressed
areas throughout the Nation and for cities like Buffalo, Lackawanna,
Dunkirk and Jamestown, New York.
  This past Monday, American companies announced more than 70,000 job
cuts, including 20,000 cuts at Caterpillar. Caterpillar makes heavy
equipment for road and bridge construction in America and throughout
the world. The American Recovery and Reinvestment Act will jump start
the economy and stave off a deeper and longer recession with road and
bridge construction that will create hundreds of thousands of jobs
immediately and help American companies like Caterpillar create a
demand for the machinery that will be required to build new bridges and
roads and energy-efficient buildings for the 21st century.
  With these investments and a tax cut for 95 percent of America's
working families, I urge support of the American Recovery and
Reinvestment bill for 2009.
  Mr. CAMP. Mr. Chairman, I yield 1\1/2\ minutes to the distinguished
gentleman from California (Mr. Dreier).
  Mr. DREIER. Mr. Chairman, I thank my friend for yielding and want to
say it has been a great privilege to work with him and Mr. Cantor and
others as part of this very important stimulus working group.
  I would like to share an analysis of a plan that is virtually
identical to the one that is before us right now. This is the analysis:
``Large-scale construction projects of any type require years of
planning and preparation. Even those that are on the shelf generally
cannot be undertaken quickly enough to provide timely stimulus to the
economy.
  ``Some of the candidates for public works, such as grant-funded
initiatives to develop alternative energy sources, are totally
impractical for countercyclical policy, regardless of whatever other
merits they may have.''
  Mr. Chairman, those are the words of our good friend, the former
director of the Congressional Budget Office, the new director of
President Obama's Office of Management and Budget, Peter Orszag.
  We have heard many, many people in this administration and who have
served in past administrations, give an analysis that spending is not
the answer. We need to get this economy growing.
  When I heard my friend from North Dakota (Mr. Pomeroy) say that the
well-to-do are going to be the beneficiaries and everyone else is
shortchanged, I am reminded of a particular item that we have in this
job creation growth alternative that is designed to ensure that people
can keep their homes and have a vested interest in it. We have a $7,500
credit that is designed to encourage people not to treat their homes as
rental units where we have seen in the past zero percent down and
virtually no interest rate.
  What we need to do is we need to have an incentive for those down
payments to be made. Support this alternative.
  Mr. NEAL of Massachusetts. As a member of a very small alumni
association here called former mayors, let me assure the gentleman from
California that mayors will know how to get this money out the door as
the President has prescribed.
  I yield 1 minute to the gentleman from Ohio (Mr. Kucinich).
  Mr. KUCINICH. Mr. Chairman, this debate should not be about Democrat
or Republican, liberal or conservative, Blue Dogs, yellow dogs, or
deficit hawks. Our economy is failing. Millions of jobs have been lost.
We need to act now. H.R. 1 is only a first step, but it is an important
first step.
  What about the stimulus. What we are doing here is like using battery
cables to jump start a car with a dead battery. We are not buying a new
battery or buying a new car, we are simply jump starting the battery of
a dead economy. We are still going to have to buy a new battery; and
eventually, we are going to have to buy a new fuel-efficient car.
  Right now if we want to move forward, we better get out those jumper
cables and put them on the battery.
  Vote for the stimulus, H.R. 1.
  Mr. CAMP. I yield 1\1/2\ minutes to the gentleman from Texas (Mr.
Gohmert).
  Mr. GOHMERT. Mr. Chair, $350 billion last week and now with what we
are going to add this week, it is about $1.2 trillion. The reason that
is significant, that is basically the amount that every individual
taxpayer paying together in 2008 paid into the U.S. Treasury.
  We could give every taxpayer, individual taxpayer in America, all of
their money back for last year. You want to see the economy explode,
try that. That would be extraordinary.
  Now we did too much deficit spending in the last 6 years when we were
in the majority, and now the Democratic majority is doing the same
thing. You can spend a country out of existence. Iceland just did it.
The Soviet Union fell because they spent too much money trying to catch
up with us. And we can do the same thing.
  We owe more than this to our children and our grandchildren. In fact,
when we elected a President who promised change, I really hoped we were
going to have change and get away from the deficit spending of the last
8 years. But instead of getting change, what we are getting with the
original bill here is much, much, much, much more of the same. We need
to quit spending ourselves out of existence.
  Mr. NEAL of Massachusetts. Mr. Chairman, at this time I would like to
recognize the chairman of the Appropriations Committee, Mr. Obey, for 4
minutes.
  Mr. OBEY. Mr. Chairman, this amendment in many ways is similar to the
Neugebauer amendment, and I would say the same things about it that I
said about that amendment.
  This essentially throws millions of jobs out the window. All of the
jobs for school teachers, for speech therapists and school nurses and
the like that would be saved by the State stabilization fund to protect
education, all of those jobs out the window by this amendment.
  All of the jobs that would come from remodeling and repairing and
refurbishing old, worn-out schools under the new modernization program,
out the window with those jobs.
  All of the infrastructure funding for highway construction, out the
window. We heard the Republicans lecture us for 2 days about the
importance of that. Now they want to throw it overboard.
  All of the jobs that would come from increasing our clean water
revolving fund project list and the sewer and water programs around the
country, all of those jobs, out the window.
  All of the jobs that would come from modernizing our energy grid, out
the window.
  All of the jobs that come from investing in new science and
technology, out the window.
  And then all of the help that goes to people through programs like
food stamps, out the window.
  Mr. Chairman, I want to predict what is going to happen on that side
of the aisle on this vote. I predict that just as happened in committee
when we got no minority party support for the bill that we produced in
committee, when this bill comes to a vote today, virtually all of our
Republican friends will vote ``no.'' The bill will then go to the
Senate, and after they gauge whether or not that bill can be killed or
not, then if the bill comes back from the conference committee and it
is obvious that the bill cannot be killed, at that point you will see a
significant number of our friends from the Republican side switch and
vote ``aye.''
  It is an old playbook, Mr. Chairman. That is exactly what they did to
FDR on Social Security when they tried to kill it in its crib. And then
when they couldn't beat it, they finally joined the parade. That is the
same thing that they did to LBJ on Medicare. When they tried to kill
and after they couldn't kill it, in the end they went along so that
people wouldn't know that they tried to kill it in the first place.
  I would hope that sooner or later we could cut through that
gamesmanship. I would hope that we would recognize,

[[Page H742]]

as Martin Luther King said a long time ago which our President reminded
us of in his inaugural, I would hope that we would remember the urgency
of now. Every week that we temporize, 100,000 or more Americans lose
their jobs. That doesn't just hurt those working Americans, it hurts
their families. It hurts the economy, it hurts the neighborhood. It
hurts everybody in this society. And it hurts the global economy as
well. Sooner or later we have to recognize this is not Herbert Hoover
time. The time for action is now.
  Mr. CAMP. Mr. Chairman, I yield 4 minutes to the distinguished
minority whip, a leader on developing the substitute, the gentleman
from Virginia (Mr. Cantor).

                              {time}  1630

  Mr. CANTOR. I thank the ranking member, the gentleman from Michigan.
  As the economy sinks further into recession, all of us understand
that this House needs to take concrete action to lift us and help lift
America's families out of this crisis. We Republicans support this
alternative because we believe it is a true stimulus bill. It does not
take us headlong into soaring debt and lead to future tax increases.
This alternative is based on the premise that if we're going to pass a
stimulus bill, it has to be focused like a razor's edge on the
protection, preservation and creation of jobs.
  Mr. Chairman, we cannot support the majority's alternative, although
we do understand that this is a work in progress, although we do
understand, and we've spoken with the President, who says he has no
pride of authorship. He wants us to continue to be part of the process.
He wants this to be a stimulus bill.
  Mr. Chairman, this bill is not that. With the amount of spending in
this bill, we could dedicate it solely to job creation. Much of what
the other side has continued to say and continues to promote perhaps
may be laudable goals and good programs. But when you have $136 billion
of additional new programs in this bill, you have got to ask, how
stimulative are these new programs? What about the small businesses,
the entrepreneurs and the self-employed that are out there who don't
want more government programs? They just need a break. They need to
know their government will not keep borrowing money and laying debt
onto our children to the tune of trillions of dollars a year. They want
meaningful incentives so they can get back off the sidelines, put
capital to work and create jobs.
  Mr. Chairman, the Congressional Budget Office has already opined
several times on the lack of stimulus in the majority's bill. In fact,
some estimates say only 12 cents on the dollar could arguably be
stimulative. Mr. Chairman, there are additional voices who have spoken
out, Democrats and Republicans, Christine Romer, the incoming head of
the Council of Economic Advisers for the Obama White House, says in her
analysis, if it is applied, as we have applied it, as some of the folks
who have used her analysis in her formula on to your bill, that our
alternative creates twice as many jobs at half the cost. And that is
what we ought to be about in this House is trying to figure out how we
can do things that work at less cost to the taxpayer.
  I also say, Mr. Chairman, Alice Rivlin, the economic expert from the
Clinton administration, she also opined and said, You know what--the
majority's bill has terrific amounts of spending in it. And they may be
laudable. But they're long-term investment programs. So she says we
need to separate out these long-term investment programs from what is
stimulative.
  We have regular order in this Congress so that the American people
can participate, we can be deliberative and we can get it right on the
long-term programs. Right now, Mr. Chairman, we ought to be about
protecting the jobs that are out there and creating new ones, again,
focused like a laser.
  The Republican plan does this without all the spending and waste. And
we can create the jobs at half the cost.
  Mr. NEAL of Massachusetts. Mr. Chairman, I would like to reserve the
balance of my time until the gentleman from Michigan is prepared to
close.
  Mr. CAMP. At this time, I yield 1\1/2\ minutes to the distinguished
gentleman from Florida.
  Mr. MARIO DIAZ-BALART of Florida. Mr. Chairman, we clearly need to
pass a stimulus package, a plan that will help our economy.
Unfortunately, this plan spends lots of money but very little to
incentivize the economy. It does very little to incentivize small
businesses, small businesses which are the job creators in our country.
Frankly, less than 10 percent of the money in this spending bill goes
to infrastructure projects. And we hear a lot of talk about the
infrastructure projects. I agree with that. But less than 10 percent of
the bill goes to infrastructure projects. Most of them, unfortunately,
Mr. Chairman, go to create a larger Federal bureaucracy with little
accountability and nearly no oversight. Does that sound familiar?
  This House last week was here passing legislation that the Senate
already said they weren't going to do to try to cover up and fix up the
embarrassment of the TARP legislation, of that bailout legislation,
that had no accountability and no oversight. This bill is more of the
same. This is Son of TARP, except it's even bigger, with little money
and accountability, with little oversight, with less than 10 percent
for infrastructure and with very little to help the job creators, the
small businesses in our great country.
  We need better accountability. We need more oversight. We need more
for infrastructure. We need more to help the small businesses and less
to just send it to create a larger Federal bureaucracy with no
oversight. Again, as embarrassed as some people were about TARP, this
is Son of TARP. We are going to read the scandals.
  Don't pass this legislation.
  Mr. CAMP. At this time I yield 1 minute to the gentleman from
California (Mr. Hunter).
  Mr. HUNTER. Thank you, Mr. Camp.
  I think that the Democrats have lost perspective, Mr. Chairman. I
want to put things in perspective. With the bailout bill, the Wall
Street bailout bill added to this stimulus bill, we're spending over
$1.5 trillion. The interstate highway system only cost $425 billion.
The race to the Moon cost $237 billion. We're spending $1.5 trillion.
President Obama did promise economic recovery. Unfortunately,
congressional Democrats are going to destroy his vision of stimulus.
  This act is not bold. It is not quick acting. It is the old policy of
borrowing and spending. And we're thinking that more borrowing and more
spending is going to get us out of this crisis that we're in now. Mr.
Camp's amendment is the last best chance for economic stimulus for the
next 2 years of a Democrat-controlled government. This Democrat bill is
not a stimulus. It is just another wasted bailout.
  Mr. NEAL of Massachusetts. Mr. Chairman, I would like to yield myself
the balance of my time.
  The CHAIR. The gentleman is recognized for 5 minutes.
  Mr. NEAL of Massachusetts. Thank you, Mr. Chairman.
  I stand in opposition to the Camp amendment that is being offered at
the moment.
  While you might hear that the Republican amendment today includes a
2-year patch for the AMT, let me tell you that this patch results in
zero taxpayers being helped. I repeat, zero taxpayers being helped.
  I think the Republican minority would agree that I have earned a
Ph.D. on AMT during my time in the House. I asked the Joint Committee
on Taxation--for the viewing audience, they are not Republicans. They
are not Democrats. They're professionals. I asked them to analyze the
Republican amendment and tell me how many taxpayers would pay AMT under
current law without any patch and under my friend Mr. Camp's amendment.
Oddly enough, there will be 26 million families paying AMT this year
with or without the Camp amendment and 28 million families paying AMT
next year with or without the Camp amendment. That is because this
patch falls far short of what would be needed to protect the middle
class from the take-back effect of the AMT.
  Now this budgetary trick was used in 2001 to mask the true cost of
the Bush tax cuts. Without the AMT patch, middle-income taxpayers lost
two-thirds of their promised Bush tax cuts to AMT, again, Joint
Committee on Taxation. And the same thing will happen under

[[Page H743]]

Mr. Camp's amendment. If Mr. Camp's amendment is enacted, middle-income
families, including 49,000 in my friend's, Mr. Camp's, district will
not see the lower 5 percent rate or the 10 percent rate that he
promises. Twenty-six million families will pay higher taxes this year
under the Camp proposal because of alternative minimum tax.
  We will enact a patch this year so that those 26 million families
will be protected from higher taxes. I guaranty you that. In fact, the
Senate has already added it to their stimulus bill. But let's not fool
ourselves today by voting for an AMT fig leaf and even steeper rate
cuts which will leave the middle-income worker holding the bag.
  I urge opposition to the Republican amendment.
  I yield back the balance of my time.
  Mr. CAMP. I yield myself the balance of my time.
  The CHAIR. The gentleman from Michigan is recognized for 3 minutes.
  Mr. CAMP. Mr. Chairman, I would commend Mr. Neal for his work on the
AMT. I just wish you had included it in your underlying bill. But let
me just say, look, the CBO, the Congressional Budget Office, is
nonpartisan. It has said that, and economists alike have said that tax
cuts impact the economy more quickly than government spending. And what
we need to do is act quickly and effectively.
  We even have an analysis by the senior adviser to the new President
who says that tax cuts will actually have more immediate growth, more
job creation and a bigger bang for the buck than we'll see with
government spending. And when we use the same methods and economic
models that they have used to analyze our legislation, we get twice as
many jobs for half the cost because of the great generative power of
tax relief. It is something that certainly both President Kennedy and
President Reagan recognized to create economic growth.
  Let's be clear about what tax relief actually does. The U.S. economy
had significant job growth after the tax cuts in the early part of this
decade. Between 2003 and 2008, the economy added almost 8 million jobs.
As this chart shows, it's according to the Department of Labor Bureau
of Labor Statistics, the U.S. economy added these jobs even after
dealing with the impact of 9/11, two wars, rising energy prices and
government spending.
  Now everyone knows that over the last year, the U.S. economy has lost
a significant number of jobs, but it took an unprecedented crisis in
the housing and financial markets and a world economic slowdown to
really knock the economy and the jobs that the economy creates off its
feet.
  So our estimate of the number of jobs that could be created by these
tax relief measures, as we readily acknowledge, cannot fully account
for all of the potential impacts on the economy, just as the
President's senior advisers note in their analysis the same thing. But
we do know the U.S. economy was in recession when Congress enacted the
2001 and 2003 tax relief measures. The U.S. economy responded by
growing rapidly and adding almost 8 million jobs. And the families and
the prosperity that was created from those 8 million jobs followed.
  So the tax relief, the approach we have taken in our bill to
emphasize more tax relief minimizes the wasteful government spending
that we see in the Democrat, or the present majority's approach, and
really shows that it's a proven formula for stimulating the economy,
creating jobs and lifting this economy out of a recession.
  Mr. STARK. Mr. Chair, I rise in opposition to this wrong-headed
substitute amendment offered by my Republican colleagues.
  The Camp/Cantor amendment eliminates two key health care provisions
in the American Recovery and Reinvestment Act. First, it deletes the
entire investment in health information technology. Second, it
eliminates the provisions designed to temporarily provide health
insurance for workers who've lost their jobs in this economic crisis.
  For years, I've heard my Republican colleagues laud the need to
invest in health information technology. Yet, when a bill comes before
them that finally meets that goal, what do they do? They delete it.
  According to the nonpartisan Congressional Budget Office, H.R. 1 will
dramatically increase physician use of health IT from 5 percent today
to 90 percent. It will also increase hospital adoption rates from about
10 percent today to 70 percent.
  CBO further tells us that the steps this bill takes to increase
adoption will reduce what both the public and private sectors pay for
health care by lowering administrative overhead costs, reducing the
number of unnecessary tests and procedures, and decreasing many
avoidable medical errors.
  Specifically, CBO says the federal government will save $12 billion
across government health programs and consumers will save billions more
via lower premiums for private insurance.
  With regard to health care coverage, I've also listened to my
Republican colleagues for decades as they insist that any effort toward
expanding health coverage build on what works in the private sector.
COBRA continuation coverage does just that.
  COBRA coverage enables people who have lost their jobs to maintain
their private health insurance coverage through their former employer
for a limited period of time--at their own cost--until they get a new
job with health benefits.
  All we do in H.R. 1 is provide a temporary 65 percent subsidy for up
to 12 months for workers who have been involuntarily terminated in this
recession. Many of these people are surviving on unemployment
compensation--the monthly value of which is often less than the
standard monthly family COBRA premium of more than $1000.
  The Joint Committee on Taxation estimates that some 7 million
Americans will be able to maintain their health coverage if this
provision is enacted.
  What does the Republican substitute do to this provision? It deletes
it.
  Clearly, my Republican colleagues are turning their back on this
historic opportunity to modernize America's health IT system and reduce
overall health spending. They are also telling America's workers that
their health care needs are their own problem--even though this
recession is a direct result of the lax oversight they and President
Bush proceeded over for the past decade.
  I urge my colleagues to vote ``no'' on this mean spirited substitute
amendment.
  Mr. CAMP. I yield back the balance of my time.
  The CHAIR. The question is on the amendment offered by the gentleman
from Michigan (Mr. Camp).
  The question was taken; and the Chair announced that the noes
appeared to have it.
  Mr. CAMP. Mr. Chairman, I demand a recorded vote.
  The CHAIR. Pursuant to clause 6 of rule XVIII, further proceedings on
the amendment offered by the gentleman from Michigan will be postponed.
  The CHAIR. The Committee will rise informally.
  The Speaker pro tempore (Ms. Lee of California) assumed the chair.

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