[House Document 105-313]
[From the U.S. Government Publishing Office]



105th Congress, 2d Session - - - - - - - - - - - House Document 105-313


 
  1998 EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR AGRICULTURAL PROGRAMS

                               __________

                             COMMUNICATION

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

HIS REQUESTS FOR FY 1998 EMERGENCY SUPPLEMENTAL APPROPRIATIONS OF $1.8 
   BILLION IN BUDGET AUTHORITY TO SUPPORT $2.3 BILLION IN EMERGENCY 
           AGRICULTURAL PROGRAMS, PURSUANT TO 31 U.S.C. 1107





 September 23, 1998.--Referred to the Committee on Appropriations and 
                         ordered to be printed


                                           The White House,
                                    Washington, September 22, 1998.
The Speaker of the House of Representatives.
    Sir: I ask Congress to consider expeditiously the enclosed 
requests for emergency supplemental appropriations. These 
requests would provide $1.8 billion in budget authority to 
support $2.3 billion in emergency agricultural programs. The 
proposals I am transmitting today do not include income 
assistance to farmers for low commodity prices. On September 
10th, Secretary Glickman communicated the Administration's 
support for such assistance through Senators Daschle and 
Harkin's proposal to remove the cap on marketing loan rates for 
1998 crops. The Administration urges the Congress to act on 
this proposal. My Administration will work with the Congress to 
ensure that farm income losses are adequately addressed in the 
emergency legislation.
    The requests would also provide $253.8 million, including 
$29.5 million requested on a contingent basis, to the 
Department of Defense to assist U.S. military installations in 
recovering from monsoons in the Republic of Korea.
    In addition, in accordance with provisions of P.L. 105-78, 
P.L. 105-174, and P.L. 103-327, respectively, I hereby make 
available the following appropriation amounts to address urgent 
emergency needs: Department of Health and Human Services, 
Administration for Children and Families, Low-income home 
energy assistance program, $10,000,000; Department of 
Transportation, Federal Highway Administration, Federal-aid 
highways (emergency relief program), $35,000,000; and, Federal 
Emergency Management Agency, Disaster assistance direct loan 
program account, $4,946,619.
    I designate all of the requests, except for the $29.5 
million requested for the Department of Defense on a contingent 
emergency basis, as emergency requirements pursuant to section 
251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended.
    The details of these requests are set forth in the enclosed 
letter from the Director of the Office of Management and 
Budget. I concur with his comments and observations.
            Sincerely,
                                                William J. Clinton.
    Enclosure.


                [Estimate No. 15, 105th Cong., 2d Sess.]

                 Executive Office of the President,
                           Office of Management and Budget,
                                Washington, DC, September 22, 1998.
The President,
The White House.
    Submitted for your consideration are requests for urgent 
emergency supplemental appropriations for the Departments of 
Agriculture, Defense (DoD), and Labor. Also included in this 
package are requests that would make available previously 
appropriated funds to the Departments of Health and Human 
Services (HHS) and Transportation, and the Federal Emergency 
Management Agency (FEMA). All of these requests are described 
in more detail in the enclosures.
Emergency Agricultural Payments
    Emergency supplemental appropriations totaling $1.8 billion 
in budget authority are requested to support $2.3 billion in 
emergency agricultural programs. These proposals do not include 
income assistance to farmers for low commodity prices. On 
September 10th, Secretary Glickman communicated the 
Administration's support for such assistance through Senators 
Daschle and Harkin's proposal to remove the cap on marketing 
loan rates for 1998 crops. The Administration urges the 
Congress to act on this proposal. The Administration will work 
with the Congress to ensure that farm income losses are 
adequately addressed in the emergency legislation. The requests 
included in this package would fund the following emergency 
activities:
Department of Agriculture
     $1,545.0 million to make supplemental indemnity 
payments to insured producers who have received crop insurance 
indemnity payments in at least three of the five crop years, 
1994 through 1998, or two of the three crop years, 1996 through 
1998, for an additional payment to insured producers who 
received crop insurance indemnity payments on their 1998 crop, 
and other payments.
     $85.0 million to support emergency livestock 
assistance programs for losses due to natural disasters.
     $50.0 million to compensate farmers and ranchers 
whose productive crop or pasture land has been inundated with 
water over an extended period of time and is expected to be 
under excessive water for at least another crop year.
     $40.0 million to support the increased workload in 
Farm Service Agency county offices necessary to implement 
emergency farmer assistance programs.
     $540.5 million in additional farm operating loan 
assistance, financed by $31.4 million in budget authority.
     $10.0 million to assist private forest landowners, 
communities, and local governments in recovery and mitigation 
efforts resulting from the recent Florida wildfires and other 
disasters.
Department of Labor
    An emergency supplemental appropriation is requested that 
would provide $7.0 million under the Migrant and Seasonal 
Farmworker Program of the Job Training Partnership Act to 
provide supportive services to migrant and seasonal farmworkers 
experiencing a loss of income due to crop failures related to 
drought and other weather-related difficulties in the South and 
Southwest.
Department of Defense
    An emergency supplemental appropriation is requested that 
would provide $253.8 million to restore DoD infrastructure and 
assets that have been severely damaged as a result of record-
breaking monsoons striking the Republic of Korea. This request 
would fund the repair and restoration of transportation, 
housing, ammunition, supplies, and facilities. These activities 
are deemed necessary to ensure required readiness levels and 
the continued morale of troops stationed in the region. Funds 
would also be used to reconstruct housing, maintenance 
facilities, warehouses, and other buildings that were destroyed 
or are beyond economical repair.
    Of the total amount requested, $29.5 million would be made 
available contingent upon your submission of a later budget 
request to the Congress designating the entire amount requested 
as an emergency requirement. We will continue to monitor the 
progress of the cleanup and revitalization of the Armed Forces 
facilities in the region to ensure that progress is 
satisfactory.
Release of Previously Appropriated Emergency Funds
    Public Law 105-78, the Departments of Labor, Health and 
Human Services, Education, and Related Agencies Appropriations 
Act of 1998 provided $300 million for the Low Income Home 
Energy Assistance Program (LIHEAP) in HHS, contingent upon the 
President submitting a budget request to the Congress and 
designating the entire amount requested as an emergency 
requirement. Of the total amount provided, you have previously 
made available $150 million for emergency needs. This request 
would make $10 million available to low-income Alaskans facing 
unusually high heating costs due to the recent fisheries 
disaster.
    Public Law 105-174, the 1998 Supplemental Appropriations 
and Rescissions Act, provided $35 million for the Department of 
Transportation's Federal Highway Administration, contingent 
upon the President submitting a budget request to the Congress 
and designating the entire amount requested as an emergency 
requirement. This request would make the entire $35 million 
available to reimburse States for repairs caused by flooding 
and ice storms during this past winter and other disasters, 
including Hurricane Bonnie.
    Public Law 103-327, the Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies 
Appropriations Act of 1995, provided $12.5 million for FEMA's 
Disaster Assistance Direct Loan Program, contingent upon the 
President submitting a budget request to the Congress and 
designating the entire amount requested as an emergency 
requirement. In FY 1997, you released $7.6 million of this 
amount for the community disaster loan program. This request 
would make the remaining $4.9 million available to provide 
loans to three jurisdictions in Minnesota and North Dakota that 
were adversely affected by the severe flooding of the Red River 
in 1997.
    I recommend that you designate all of these requests, 
except for the $29,454,000 in DoD funds proposed to be provided 
on a contingent basis, as emergency funding requirements in 
accordance with section 251(b)(2)(A) of the Balanced Budget and 
Emergency Deficit Control Act of 1985, as amended.
    I have carefully reviewed these proposals and am satisfied 
that they are necessary at this time. Therefore, I join the 
heads of the affected Departments in recommending that you 
transmit these proposals to the Congress.
            Sincerely,
                                            Jacob J. Lew, Director.
    Enclosures.


                       DEPARTMENT OF AGRICULTURE

                         Risk Management Agency

                Federal Crop Insurance Corporation Fund

    For an additional amount for ``Federal Crop Insurance 
Corporation Fund,'' $1,545,000,000, to remain available until 
expended, of which $935,000,000 is for supplemental indemnity 
payments to insured persons who have received crop insurance 
indemnity payments in at least three of the five crop years, 
1994 through 1998, or two of the three crop years, 1996 through 
1998: Provided, That the amount of such supplemental indemnity 
payment to each such person will be equal to 25 percent of the 
total indemnities received by such person during those years; 
of which $460,000,000 is for additional supplemental indemnity 
payments to insured persons who have received crop insurance 
indemnity payments for crop year 1998: Provided, That the 
amount of such supplemental indemnity payment to each such 
person will be equal to 25 percent of the total indemnities 
received by such person on their 1998 crop; of which 
$50,000,000 is for supplemental indemnity payments to persons 
insured under the Non-Insured Assistance Program: Provided, 
That the amount of such supplemental indemnity payment to each 
such person will be equal to 25 percent of the total 
indemnities received by such person on their 1998 crop; and of 
which $100,000,000 shall be available to indemnify producers 
under terms and conditions prescribed by the Secretary of 
Agriculture for payments to other persons for losses on their 
1998 crop: Provided, That those persons receiving a crop loss 
payment from the Secretary for a crop that was not insured but 
could have been under the Crop Insurance Program shall be 
required to sign up for crop insurance for the 1999 and 2000 
crop years: Provided further, That the entire amount is 
designated by the Congress as an emergency requirement pursuant 
to section 251 (b)(2)(A) of the Balanced Budget and Emergency 
Deficit Control Act of 1985, as amended.
    These funds would be used to make supplemental indemnity 
payments to insured producers who have received crop insurance 
indemnity payments in at least three of the five crop years, 
1994 through 1998, or in at least two of the three crop years, 
1996 through 1998. The amount of the payment would be 25 
percent of the total indemnities each producer received during 
those years. An additional payment would also be provided to 
those who received a crop insurance indemnity payment on their 
1998 crop, equal to 25 percent of the 1998 indemnity. These 
payments would be delivered through private crop insurance 
agents. As proposed, one payment would be made this Fall for 
those who qualify because they received at least three crop 
insurance indemnity payments on their 1994-1997 or 1996-1997 
crops. Another payment would be made next Spring based on how 
the 1998 crop indemnity payments changed the eligibility and 
payment rates for producers qualifying for multi-year loss 
payments, and the additional supplemental payment on 1998 crop 
losses would also be made at this time.
    For those whose 1998 crops were covered under the Non-
Insured Assistance program and who received an indemnity 
payment under this program for 1998 losses, a supplemental 
payment would also be provided next Spring, equal to 25 percent 
of their indemnity payment.
    In addition, $100 million would be provided to enable the 
Department of Agriculture to provide indemnity payments to 
those who suffered quality losses on their 1998 crop and to 
those who had 1998 crop losses who could have but have not 
signed up for crop insurance. Supplemental payments to these 
producers will be provided at 50 percent the rate of 
supplemental payments provided to those who signed up for crop 
insurance, and these producers must agree to sign up for crop 
insurance in the next two crop years in order to receive their 
payments.
    The entire amount requested has been designated by the 
President as an emergency requirement pursuant to the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended.
    This supplemental request does not include income 
assistance to farmers for low commodity prices. On September 
10th, Secretary Glickman communicated the Administration's 
support for such assistance through Senators Daschle and 
Harkin's proposal to remove the cap on marketing loan rates for 
1998 crops. The Administration urges the Congress to act on 
this proposal. The Administration will work with the Congress 
to ensure that farm income losses are adequately addressed in 
the emergency legislation.
                                ------                                


                       DEPARTMENT OF AGRICULTURE

                          Farm Service Agency

                         Salaries and Expenses

    For an additional amount for ``Salaries and Expenses,'' 
$40,000,000, to remain available until expended: Provided, That 
the entire amount is designated by the Congress as an emergency 
requirement pursuant to section 251 (b)(2)(A) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended.
    These funds would be used to support the increased workload 
in Farm Service Agency county offices necessary to implement 
emergency farm programs in FY 1999.
    The entire amount requested has been designated by the 
President as an emergency requirement pursuant to the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended.
                                ------                                


                       DEPARTMENT OF AGRICULTURE

                          Farm Service Agency

                   Commodity Credit Corporation Fund

    For an additional amount for ``Commodity Credit Corporation 
Fund,'' $135,000,000, to remain available until expended, of 
which $85,000,000 is for assistance to livestock producers 
affected by natural disasters, and $50,000,000 is for 
compensation of owners or producers whose farmland has been 
flooded for more than one year such that the land was incapable 
of agricultural use for the 1998 crop year: Provided, That the 
entire amount is designated by the Congress as an emergency 
requirement pursuant to section 251(b)(2)(A) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended.
    These requested emergency supplemental funds for the 
Commodity Credit Corporation Fund would finance two programs:
     $85 million would be used to support emergency 
livestock assistance programs for up to 30 percent of losses 
due to natural disasters. In recent years, the Department of 
Agriculture has funded a Foundation Livestock Relief Program, a 
Disaster Reserve Assistance Program, a Livestock Indemnity 
Program, and a Livestock Feed Program. However, the 1996 Farm 
Bill prevented further replenishment of the Disaster Reserve, 
and the requested funds would be used to carry out similar 
programs for livestock producers who have been affected by 
recent natural disasters.
      An additional $50 million would be used for a new 
program to compensate farmers and ranchers in areas 
experiencing flooding or saturation by water over an extended 
period of time, whose productive crop or pasture land has been 
inundated with water in 1998 such that the land was useless for 
the 1998 crop year, and is expected to continue to be unusable 
for agriculture because of excessive water for at least another 
crop year. The proposed program would pay a proportion of the 
rental value of the land for 1998.
    The entire amount requested has been designated by the 
President as an emergency requirement pursuant to the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended.
                                ------                                


                       DEPARTMENT OF AGRICULTURE

                          Farm Service Agency

           Agricultural Credit Insurance Fund Program Account

    For an additional amount for ``Agricultural Credit 
Insurance Fund Program Account'' for the cost of direct and 
guaranteed loans authorized by 7 U.S.C. 1928-1929, including 
the cost of modifying such loans as defined in section 502 of 
the Congressional Budget Act of 1974, as follows: farm 
operating loans, $31,405,000, of which $15,969,000 shall be for 
direct loans, $13,696,000 for guaranteed subsidized loans, and 
$1,740,000 for unsubsidized guaranteed loans: Provided, That 
the entire amount is designated by the Congress as an emergency 
requirement pursuant to section 251 (b)(2)(A) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended.
    This emergency supplemental request of $31.405 million in 
budget authority would finance $541 million in additional farm 
operating loan assistance: $234 million for direct loans, $157 
million for subsidized guaranteed loans, and $150 million in 
unsubsidized guaranteed loans. Low commodity prices and reduced 
crop insurance coverage for farmers who have suffered repeated 
natural disasters have made many additional farmers unable to 
secure commercial credit without Federal assistance. This 
assistance will be particularly needed to help farmers obtain 
financing for their 1999 crop inputs, such as seed and 
fertilizer.
    The entire amount requested has been designated by the 
President as an emergency requirement pursuant to the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended.
                                ------                                


                       DEPARTMENT OF AGRICULTURE

                             Forest Service

                       State and Private Forestry

    For an additional amount for ``State and Private Forestry'' 
to assist private forest landowners, communities, and local 
governments in recovery and mitigation efforts resulting from 
recent destructive wildfires in Florida, and other natural 
disasters, $10,000,000, to remain available until expended: 
Provided, That the entire amount is designated by the Congress 
as an emergency requirement pursuant to section 251(b)(2)(A) of 
the Balanced Budget and Emergency Deficit Act of 1985, as 
amended.
    This emergency supplemental request would provide disaster 
assistance to communities to reduce hazards to life and 
property and repair forest resources affected by 1998 Florida 
wildfires and other disasters. Emergency work would focus on 
fire support, community assistance, and environmental 
mitigation. Environmental mitigation work would include 
seedling production for reforestation, forest health 
assistance, and community forestry to regenerate the damaged 
landscape and prevent erosion. Wildfire hazard reduction work 
would include analysis, State and community logistical support, 
and fire department training.
    The entire amount requested has been designated by the 
President as an emergency requirement pursuant to the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended.
                                ------                                


                         DEPARTMENT OF DEFENSE

                    Emergency Recovery Transfer Fund

                    Emergency Recovery Transfer Fund

    For emergency expenses, including military construction, 
incurred at United States military facilities or installations 
in the United States or overseas directly resulting from storm 
damage or other natural disasters, $253,756,000, to remain 
available for transfer until September 30, 1999: Provided, That 
the entire amount is designated by the Congress as an emergency 
requirement pursuant to section 251(b)(2)(A) of the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended 
(`the Act'): Provided further, That the Secretary of Defense 
may transfer these funds to applicable appropriations and to 
working capital funds, to be merged with and available for the 
same purposes and for the same time period as the appropriation 
or fund to which transferred: Provided further, That this 
transfer authority is in addition to any transfer authority 
available to the Department of Defense: Provided further, That 
such funds may be used to execute projects or programs that 
were deferred in order to carry out emergency repairs resulting 
from such storm damage or other natural disasters: Provided 
further, That of such amount, $29,454,000 shall be available 
only to the extent an official budget request for a specific 
dollar amount that includes designation of the entire amount of 
the request as an emergency requirement as defined in the Act 
is transmitted by the President to the Congress.
    This request would provide funding for U.S. military 
installations to recover from monsoons in the Republic of 
Korea. The funds will cover costs for repair, clean-up, 
revitalization, and reconstruction of various Army and Air 
Force sites affected by the recent flooding.
    Of the request, $224,302,000 has been designated by the 
President as an emergency requirement pursuant to the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended.
                                ------                                


                         DEPARTMENT OF DEFENSE

                           General Provisions

    Sec.  From amounts made available in this or any other Act 
for military construction, the Secretary of the Army may 
acquire real property and carry out a military construction 
project at Camp Casey in Korea, in the amount of $12,016,000.
    This language proposal, accompanying the Emergency Recovery 
Transfer Fund appropriations request, would provide specific 
authority to spend appropriated funds on construction. The 
planned buildings will replace structures destroyed by the 
floods at Camps Nimble and Mobile. The replacement structures 
will be built at Camp Casey.
                                ------                                


                          DEPARTMENT OF LABOR

                 Employment and Training Administration

                    Training and Employment Services

    For an additional amount for ``Training and Employment 
Services'' to carry out section 402 of the Job Training 
Partnership Act, $7,000,000, to remain available through June 
30, 1999: Provided, That the entire amount is designated by the 
Congress as an emergency requirement pursuant to section 
251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
Control Act of 1985, as amended.
    This supplemental request would provide funds under the 
Migrant and Seasonal Farmworker Program of the Job Training 
Partnership Act to provide supportive services to migrant and 
seasonal farmworkers experiencing a loss of income due to crop 
failures related to drought and other weather-related 
difficulties in the South and Southwest. An estimated 20,000 
participants would receive temporary shelter, meals, health 
care, transportation, and other emergency assistance, as 
authorized by the Act.
    The entire amount requested has been designated by the 
President as an emergency requirement pursuant to the Balanced 
Budget and Emergency Deficit Control Act of 1985, as amended.
                                ------                                


Emergency Appropriations: Amounts Previously Appropriated Made Available 
                            by the President

Department of Transportation:
    Federal Highway Administration: Federal-aid 
      highways: Emergency relief program................     $35,000,000

    Public Law 105-174, the 1998 Supplemental Appropriations 
and Rescissions Act provided a total of $259 million for the 
Emergency Relief Program. Of this amount, the availability of 
$35 million was made contingent upon the President submitting a 
budget request to the Congress and designating the entire 
amount requested as an emergency requirement. The remaining 
$224 million in emergency funding was available upon enactment.
    At this time, the $35 million in contingent emergency 
funding is required to reimburse States for repairs caused by 
flooding and ice storms during this past winter and other 
disasters, including Hurricane Bonnie.
                                ------                                


Emergency Appropriations: Amounts Previously Appropriated Made Available 
                            by the President

Department of Health and Human Services:
    Administration for Children and Families: Low-income 
      home energy assistance program....................     $10,000,000

    Public Law 105-78, the Departments of Labor, Health and 
Human Services, Education, and Related Agencies Appropriations 
Act of 1998 provided $300 million for the Low Income Home 
Energy Assistance Program (LIHEAP), contingent upon the 
President submitting a budget request to the Congress and 
designating the entire amount requested as an emergency 
requirement.
    Of the total provided, $150 million has previously been 
made available. At this time, an additional $10 million of the 
remaining $150 million in contingent funding is required for 
low-income Alaskans facing unusually high heating costs due to 
the recent fisheries disaster.
                                ------                                


Emergency Appropriations: Amounts Previously Appropriated Made Available 
                            by the President

Federal Emergency Management Administration:
    Disaster assistance direct loan program account.....      $4,946,619

    Public Law 103-327, the Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies 
Appropriations Act of 1995 provided $12.5 million for the 
Disaster Assistance Direct Loan Program, contingent upon the 
President submitting a budget request to the Congress and 
designating the entire amount requested as an emergency 
requirement.
    In FY 1996, the President released $7.6 million in loan 
subsidy budget authority for the community disaster loan 
program. At this time, the remaining $4.9 million is required 
to provide loans to jurisdictions in Minnesota and North 
Dakota. These funds will provide loan principal of $5.1 million 
that is distributed as follows: Grand Forks Park District, $1 
million; City of East Grand Forks, $2.7 million; and, the City 
of Ada, $1.4 M. All three entities were adversely affected by 
the severe flooding of the Red River in 1997 and have 
experienced a substantial loss in operating budget revenue. The 
Grand Forks Park District and the City of Ada suffered a 
substantial loss of revenues, and the City of East Grand Forks 
suffered substantial loss of structure.

                                
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