[House Document 108-200]
[From the U.S. Government Publishing Office]





108th Congress, 2d Session - - - - - - - - - - - - House Document 108-200

 
                 REQUESTS FOR FY 2005 BUDGET AMENDMENTS

                               __________

                             COMMUNICATION

                                  FROM

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

     REQUESTS FOR FY 2005 BUDGET AMENDMENTS FOR THE DEPARTMENTS OF 
AGRICULTURE, HEALTH AND HUMAN SERVICES, HOUSING AND URBAN DEVELOPMENT, 
 JUSTICE, AND LABOR. IN ADDITION AN FY 2004 LANGUAGE PROPOSAL FOR THE 
              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT




   July, 15, 2004.--Referred to the Committee on Appropriations and 
                         ordered to be printed.

                                 ______


                     U.S. GOVERNMENT PRINTING OFFICE
                           WASHINGTON : 2004



                                           The White House,
                                         Washington, July 14, 2004.
Hon. J. Dennis Hastert,
Speaker of the House of Representatives,
Washington, DC.
    Dear Mr. Speaker: I ask the Congress to consider the 
enclosed FY 2005 budget amendments for the Departments of 
Agriculture, Health and Human Services, Housing and Urban 
Development, Justice, and Labor. In addition, I ask the 
Congress to consider the enclosed FY 2004 language proposal for 
the Department of Housing and Urban Development. Overall, the 
discretionary budget authority proposed in my FY 2005 Budget 
would not be increased by these requests.
    The details of these proposals are set forth in the 
enclosed letter from the Director of the Office of Management 
and Budget.
            Sincerely,
                                                    George W. Bush.
    Enclosure.



                [Estimate No. 7, 108th Cong., 2d Sess.]

                 Executive Office of the President,
                           Office of Management and Budget,
                                     Washington, DC, July 13, 2004.
The President,
The White House.
    Submitted for your consideration are requests for FY 2005 
budget amendments for the Departments of Agriculture, Health 
and Human Services, Housing and Urban Development, Justice, and 
Labor. In addition, this transmittal includes an FY 2004 
language proposal for the Department of Housing and Urban 
Development. Overall, discretionary budget authority would not 
be increased by these requests.
    As described below and in more detail in the enclosures, 
the requests include the following:
Special Supplemental Nutrition Program
     An additional $300 million is proposed for the 
Department of Agriculture's Special Supplemental Nutrition 
Program for Women, Infants, and Children (WIC) to ensure that 
resources are adequate to meet State agencies' requirements to 
fulfill demand in FY 2005. This requested increase in budget 
authority would be fully offset within the Department of 
Agriculture.
Health
     A language amendment is proposed for the 
Department of Health and Human Services (HHS) that would 
provide the Secretary of HHS the flexibility to target 
resources to States with individuals with HIV/AIDS most in need 
of lifesaving medications and to increase the total resources 
available under the set-aside for severe need populations.
     A language amendment is also proposed for HHS that 
would increase human stem cell research funding by reallocating 
funds within the National Institutes of Health.
Prisoner Re-entry Initiative
     FY 2005 amendments to the pending appropriations 
language for the Administration's Prisoner Re-entry Initiative 
are also proposed. The amendments would modify the requests for 
the Departments of Housing and Urban Development, Justice, and 
Labor to facilitate the allocation of joint grant awards, make 
funds available at the beginning of FY 2005, and broaden the 
list of eligible grantees and activities, but would not 
increase the total funding requested. With the involvement of 
faith-based and community groups, the initiative will help 
individuals exiting prison make a successful transition to 
community life and long-term employment.
Federal Detention Trustee
     An additional $150 million is proposed for the 
Department of Justice's Office of the Federal Detention Trustee 
to fund housing and related expenses of the increasing detainee 
population in non-Federal facilities. This requested increase 
in FY 2005 budget authority would be fully offset within the 
Justice Department.
Housing
     Language is proposed for the Department of Housing 
and Urban Development that would increase the loan commitment 
limit for the Federal Housing Administration General and 
Special Risk Program by $4 billion, bringing the total limit 
for FY 2004 to $29 billion.
Recommendation
    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 amendments to the Congress.
            Sincerely,
                                          Joshua B. Bolten,
                                                          Director.
    Enclosures.


                        FY 2005 Budget Amendment


                       DEPARTMENT OF AGRICULTURE


                       Food and Nutrition Service


SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN 
                                 (WIC)

FY 2005 Budget Appendix Page: 177
FY 2005 Pending Request: $4,787,250,000
Proposed Amendment: $300,000,000
Revised Request: $5,087,250,000

    (In the appropriations language under the above heading, 
amend as follows:)
    (1) Delete ``$4,787,250,000'' and substitute 
$5,087,250,000;
    (2) Insert after ``to remain available through September 
30, 2006'' , of which $300,000,000 shall be allocated as the 
Secretary deems necessary, notwithstanding section 17(i) of 
such Act, to support participation; and
    (3) Insert before the period : Provided further, That none 
of the funds provided shall be available to pay the 
administrative expenses of a State agency that, after the date 
of enactment of this Act, authorizes any additional vendors to 
transact food instruments under this program if more than 50 
percent of the annual revenue of the vendor is derived from the 
sale of supplemental foods that are obtained with food 
instruments, except that the Secretary may permit a State 
agency to approve the authorization of such a vendor if the 
approval is necessary to assure access to program benefits
    This proposal would increase the appropriations request for 
the Special Supplemental Nutrition Program for Women, Infants, 
and Children (WIC) to ensure that resources are adequate to 
meet State agencies' requirements to fulfill current and 
anticipated demand for program services. This increase is 
necessitated by significantly higher than anticipated growth in 
food costs and, to a lesser extent, participation in the 
program.
    This amendment would also provide the Secretary of 
Agriculture with the discretion to direct the requested 
additional funds to States and Tribal organizations in need 
rather than through the standard funds allocation formula.
    Furthermore, this proposal would prohibit States from 
approving any new vendors to the WIC program that derive more 
than 50 percent of their income from WIC transactions. The 
rapid growth of WIC-only stores, vendors that exclusively or 
predominantly stock WIC-approved food items and serve only WIC 
participants, is placing tremendous pressure on program costs 
because WIC-only stores generally charge significantly higher 
prices than other authorized retailers. The number of WIC-only 
stores has increased by 50 percent in the past two years and 
accounts for nine percent of WIC transactions nationwide.
    The requested increase in budget authority would be fully 
offset by proposed reductions to other accounts within the 
Department of Agriculture, as described in accompanying 
amendments.


                        FY 2005 Budget Amendment


                       DEPARTMENT OF AGRICULTURE


                      Departmental Administration


        AGRICULTURE BUILDINGS AND FACILITIES AND RENTAL PAYMENTS

FY 2005 Budget Appendix Page: 74
FY 2005 Pending Request: $203,938,000
Proposed Amendment: -$28,000,000
Revised Request: $175,938,000

    This proposal would reduce by $28 million the funds 
requested in the Agriculture Buildings and Facilities and 
Rental Payments account for the South Buildings renovation. The 
reduction would partially offset a proposed increase to the 
Special Supplemental Nutrition Program for Women, Infants, and 
Children (WIC), as described in an accompanying amendment.


                        FY 2005 Budget Amendment


                       DEPARTMENT OF AGRICULTURE


                      Foreign Assistance Programs


                 PUBLIC LAW 480 TITLE I PROGRAM ACCOUNT

FY 2005 Budget Appendix Page: 171
FY 2005 Pending Request: --
Proposed Amendment: -$205,000,000
Revised Request: -$205,000,000

    (In the appropriations language under the above heading 
after the last paragraph, add the following new paragraph:)
    Of the unobligated balances available to the Foreign 
Agricultural Service for the Public Law 480 Title I Program at 
the beginning of fiscal year 2005, $205,000,000 is hereby 
canceled.
    This proposal would cancel a portion of the unobligated 
balance in the Public Law 480 Title I Program Account. 
Unobligated balances currently projected to be carried forward 
into FY 2005 are sufficient to cover current- and prior-year 
loan and grant program obligations. The reduction would 
partially offset a proposed increase to the Special 
Supplemental Nutrition Program for Women, Infants, and Children 
(WIC), as described in an accompanying amendment.


                        FY 2005 Budget Amendment


                       DEPARTMENT OF AGRICULTURE


                       Food and Nutrition Service


                           FOOD STAMP PROGRAM

FY 2005 Budget Appendix Page: 175
FY 2005 Pending Request: $33,641,798,000
Proposed Amendment: -$6,000,000
Revised Request: $33,635,798,000

    This proposal would reduce funding for performance 
measurement and program assessment in the pending FY 2005 
discretionary request for the Food Stamp Program account by $6 
million. The reduction would partially offset a proposed 
increase to the Special Supplemental Nutrition Program for 
Women, Infants, and Children (WIC), as described in an 
accompanying amendment.


                        FY 2005 Budget Amendment


                       DEPARTMENT OF AGRICULTURE


                       Food and Nutrition Service


                        CHILD NUTRITION PROGRAMS

FY 2005 Budget Appendix Page: 176
FY 2005 Pending Request: $11,380,557,000
Proposed Amendment: -$4,000,000
Revised Request: $11,376,557,000

    (In the appropriations language under the above heading, 
delete ``$11,380,557,000'' and substitute $11,376,557,000; and 
delete ``$6,060,860,000'' and substitute $6,056,860,000.)
    This proposal would reduce funding for performance 
measurement and program assessment in the pending FY 2005 
discretionary request for the Child Nutrition Programs account 
by $4 million. The reduction would partially offset a proposed 
increase to the Special Supplemental Nutrition Program for 
Women, Infants, and Children (WIC), as described in an 
accompanying amendment.


                        FY 2005 Budget Amendment


                       DEPARTMENT OF AGRICULTURE


                     TITLE VII--GENERAL PROVISIONS

FY 2005 Budget Appendix Page: 198
FY 2005 Pending Request: --
Proposed Amendment: -$13,000,000
Revised Request: --

    (In the appropriations language under the above heading, 
subsection (1) of section 724 is amended as follows:)
    (1) Delete the period at the end of the subsection and 
substitute ; and; and
    (2) Add the following new subsection at the end:
    (m) a Farm and Ranch Lands Protection program authorized by 
16 U.S.C. 3838h-i, et seq., in excess of $112,000,000.
    This proposal would decrease the amount of funds available 
for the Farm and Ranch Lands Protection program by $13 million 
(from $125 million to $112 million). The reduction would 
partially offset a proposed increase to the Special 
Supplemental Nutrition Program for Women, Infants, and Children 
(WIC), as described in an accompanying amendment.


                        FY 2005 Budget Amendment


                       DEPARTMENT OF AGRICULTURE


                     TITLE VII--GENERAL PROVISIONS

FY 2005 Budget Appendix Page: 199
FY 2005 Pending Request: -$44,000,000
Proposed Amendment: -$44,000,000
Revised Request: -$88,000,000

    (In the appropriations language under the above heading, 
section 725 is amended by deleting ``$44,000,000,'' and 
substituting $88,000,000.)
    This proposal would further reduce the funds available in 
the Local Television Loan Guarantee Program account by $44 
million. The reduction would partially offset a proposed 
increase to the Special Supplemental Nutrition Program for 
Women, Infants, and Children (WIC), as described in an 
accompanying amendment.


                        FY 2005 Budget Amendment


                DEPARTMENT OF HEALTH AND HUMAN SERVICES


              Health Resources and Services Administration


                     HEALTH RESOURCES AND SERVICES

FY 2005 Budget Appendix Page: 423
FY 2005 Pending Request: $6,022,833,000
Proposed Amendment: Language
Revised Request: $6,022,833,000

    (In the appropriations language under the above heading, 
add the following at the end of the ninth proviso:)

, of which $57,500,000 shall be for supplemental treatment 
grants authorized by section 2618(a)(2)(I)(ii) of such Act
    This proposal would provide the Secretary of Health and 
Human Services (HHS) the flexibility to target resources to 
States with individuals with HIV/AIDS most in need of 
lifesaving medications. This amendment also would authorize the 
Secretary to exceed the three percent cap on AIDS Drug 
Assistance Program funding for those in severe need of 
medications by increasing the total resources available under 
the set-aside for severe need populations from $22.5 million to 
$57.5 million.
    The FY 2005 Budget provides the resources necessary to pay 
for lifesaving drugs each month to approximately 100,000 
individuals who lack adequate health insurance or the financial 
resources necessary to cover the costs of medications.
    On June 23, 2004, the President announced the need to 
ensure that individuals with HIV/AIDS who have limited health 
insurance and financial resources have access to medications. 
At that time, the President stated that $20 million would be 
used to purchase medications in 10 States with HIV/AIDS waiting 
lists as of June 21st (Alabama, Alaska, Colorado, Idaho, Iowa, 
Kentucky, Montana, North Carolina, South Dakota, and West 
Virginia). The $20 million would be derived from existing 
resources, and on June 30, 2004, the Secretary of HHS submitted 
a reprogramming letter to the Congress.


                        FY 2005 Budget Amendment


                DEPARTMENT OF HEALTH AND HUMAN SERVICES


                     National Institutes of Health

FY 2005 Budget Appendix Page: 436
FY 2005 Pending Request: $28,607,357,000
Proposed Amendment: Language
Revised Request: $28,607,357,000

    (In the appropriations language under the above heading, 
the following sections are amended:)
    (l) Under the ``National Heart, Lung, and Blood Institute'' 
section, delete ``$2,963,953,000'' and substitute 
$2,965,453,000;
    (2) Under the National Institute of Diabetes and Digestive 
and Kidney Diseases'' section, delete ``$1,726,196,000'' and 
substitute $1,727,696,000;
    (3) Under the ``National Institute of Neurological 
Disorders and Stroke'' section, delete ``$1,545,623,000'' and 
substitute $1,547,123,000; and
    (4) Under the ``National Cancer Institute'' section, delete 
``$4,870,025,000'' and substitute $4,865,525,000; and insert 
the following at the end:
    In addition to the amounts provided herein for the 
Surveillance Epidemiology and End Results survey, $4,500,000 
are available from amounts under section 241 of the Act to 
carry out such survey.
    This proposal would increase human stem cell research 
funding by reallocating $4.5 million in budget authority from 
the National Cancer Institute to be divided equally among the 
National Heart, Lung, and Blood Institute (NHLBI); the National 
Institute of Diabetes and Digestive and Kidney Diseases 
(NIDDK); and the National Institute of Neurological Disorders 
and Stroke (NINDS). The total discretionary budget authority 
proposed for the National Institutes of Health (NIH) in FY 2005 
would not be affected by this amendment.
    The increase in NHLBI, NIDDK, and HINDS would support human 
stem cell translational research centers for diseases that 
could include diabetes, Parkinson's disease, and spinal cord 
injury. The funds reallocated by the National Cancer Institute 
(NCI) would be restored within the overall request for NIH for 
evaluation activities through the use of the Secretary's 
authority under Section 241 of the Public Health Service Act, 
which allows the allocation of a portion of the total amounts 
appropriated for programs under the Act to be used for this 
purpose.


                        FY 2005 Budget Amendment


                         DEPARTMENT OF JUSTICE


                         General Administration


                           DETENTION TRUSTEE

FY 2005 Budget Appendix Page: 666
FY 2005 Pending Request: $938,810,000
Proposed Amendment: $150,000,000
Revised Request: $1,088,810,000

    This proposal would provide an additional $150 million to 
the Office of the Federal Detention Trustee to fund housing and 
related expenses of the increasing Federal detainee population 
housed in non-Federal facilities. This amendment would be fully 
offset by proposed reductions to other accounts within the 
Department of Justice, as described in accompanying amendments.


                        FY 2005 Budget Amendment


                         DEPARTMENT OF JUSTICE


                         General Administration


                          WORKING CAPITAL FUND

FY 2005 Budget Appendix Page: 668
FY 2005 Pending Request:--
Proposed Amendment: -$60,000,000
Revised Request: -$60,000,000

    (Under the above heading, insert the following 
appropriations language:)
    Of the unobligated balances available under this heading on 
September 30, 2004, $60,000,000 is hereby canceled.
    This proposal would decrease unobligated balance available 
for the Working Capital Fund by $60 million. The reduction 
would be used to partially offset a proposed increase in budget 
authority for the Detention Trustee account, as described in an 
accompanying amendment.


                        FY 2005 Budget Amendment


                         DEPARTMENT OF JUSTICE


                   Legal Activities and U.S. Marshals


                   LEGAL ACTIVITIES OFFICE AUTOMATION

FY 2005 Budget Appendix Page: 671
FY 2005 Pending Request: $80,510,000
Proposed Amendment: -$35,000,000
Revised Request: $45,510,000

    This proposal would reduce by $35 million the pending FY 
2005 request for deployment of the Department of Justice's 
Consolidated Office Network in the Bureau of Prisons, with no 
adverse programmatic impact. This reduction would be used to 
partially offset a proposed increase in budget authority for 
the Detention Trustee account, as described in an accompanying 
amendment.


                        FY 2005 Budget Amendment


                         DEPARTMENT OF JUSTICE


                         Federal Prison System


                        BUILDING AND FACILITIES

FY 2005 Budget Appendix Page: 691
FY 2005 Pending Request: --
Proposed Amendment: -$55,000,000
Revised Request: -$55,000,000

    (Delete the brackets around the account title and insert 
the following language under the revised heading:)
    Of the unobligated balances available under this heading on 
September 30, 2004, $55,000,000 is hereby canceled.
    This proposal would cancel $55 million of the unobligated 
balance from resources previously provided for the medium 
security facility planned for Mendota, California. This 
reduction would be used to partially offset a proposed increase 
in budget authority for the Detention Trustee account, as 
described in an accompanying amendment.


                        FY 2005 Budget Amendment


              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT


                   Community Planning and Development


                       HOMELESS ASSISTANCE GRANTS

FY 2005 Budget Appendix Page: 529
FY 2005 Pending Request: $1,282,400,000
Proposed Amendment: Language
Revised Request: $1,282,400,000

    (In the appropriations language under the above heading, 
amend as follows:)
    (1) Delete ``$1,282,400,000'' and substitute 
$1,257,400,000;
    (2) Delete ``; and of which $25,000,000 shall be for the 
Prisoner Re-Entry Initiative and shall remain available until 
expended''; and
    (3) Add the following new paragraph at the end:
    In addition, $25,000,000 for fiscal year 2005, which shall 
be transferred to ``Training and Employment Services,'' 
Employment and Training Administration, Department of Labor, 
and shall be for the Prisoner Re-entry Initiative as 
established under that heading.
    This proposal would amend the Prisoner Re-entry Initiative 
(PRI) program in the Homeless Assistance Grant account by: (1) 
separating PRI funds from the total account appropriation to 
allow them to be used for a broader category of eligible 
recipients; (2) allowing PRI funds to be transferred from the 
Department of Housing and Urban Development (HUD) to the 
Department of Labor (DOL) for administration; and (3) changing 
the period of their availability from no year to one year, 
similar to DOL's funding for this initiative.
    The 2005 Budget proposed a Prisoner Re-entry Initiative 
involving HUD, DOL, and the Department of Justice that will 
help individuals exiting prison make a successful transition to 
community life and long-term employment through job training 
and placement services, transitional housing assistance, and 
mentoring.
    This amendment would not increase the discretionary budget 
authority proposed in the FY 2005 Budget.


                        FY 2005 Budget Amendment


                         DEPARTMENT OF JUSTICE


                       Office of Justice Programs


                           JUSTICE ASSISTANCE

FY 2005 Budget Appendix Pages: 693-694
FY 2005 Pending Request: --
Proposed Amendment: Language
Revised Request: --

    (In the appropriations language under the above heading, 
delete the language in paragraph (2)(F) and substitute the 
following:)
    $15,000,000 for a Prisoner Re-entry Initiative: Provided 
further, That such sums shall be available for grants to faith 
and community-based organizations or for transfer to ``Training 
and Employment Services,'' Employment and Training 
Administration, Department of Labor, for the Prisoner Re-Entry 
Initiative as established under that heading;
    This proposal would amend the Prisoner Re-entry Initiative 
(PRI) program in the Justice Assistance account by: (1) 
referring to the intended purpose of the funds, which is the 
Prisoner Re-entry Initiative, rather than the previously 
authorized offender reentry initiative; and (2) making these 
funds available to carry out the PRI program and related 
activities through direct grants to faith and community-based 
organizations or for transfer to the Employment and Training 
Administration, Department of Labor (DOL), for the same 
purposes.
    The 2005 Budget proposed a Prisoner Re-entry Initiative 
involving the Department of Housing and Urban Development, DOL, 
and the Department of Justice that will help individuals 
exiting prison make a successful transition to community life 
and long-term employment through job training and placement 
services, transitional housing assistance, and mentoring.
    This amendment would not increase the discretionary budget 
authority proposed in the FY 2005 Budget.


                        FY 2005 Budget Amendment


                          DEPARTMENT OF LABOR


                 Emloyment and Training Administration


                    TRAINING AND EMPLOYMENT SERVICES

FY 2005 Budget Appendix Page: 705
FY 2005 Pending Request: $5,226,292,000
Proposed Amendment: Language
Revised Request: $5,226,292,000

    (In the appropriations language under the above heading, 
after ``$90,000,000'', insert (which shall be available for 
obligation for the period October 1, 2004 through September 30, 
2005), and after ``the Prisoner Re-entry Initiative'' insert 
and related activities.)
    This proposal would amend the Prisoner Re-entry Initiative 
(PRI) program in the Training and Employment Services account 
by: (1) making the funds available to carry out the Prisoner 
Re-entry Initiative, but also ``related activities'' and (2) 
making the funds available for obligation October 1, 2004, 
through September 30, 2005, rather than the original request of 
July 1, 2005, through June 30, 2006.
    The 2005 Budget proposed a Prisoner Re-entry Initiative 
involving HUD, DOL, and the Department of Justice that will 
help individuals exiting prison make a successful transition to 
community life and long-term employment through job training 
and placement services, transitional housing assistance, and 
mentoring.
    This amendment would not increase the discretionary budget 
authority proposed in the FY 2005 Budget.


                            FY 2005 Proposal


              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT


                     Federal Housing Administration


                GENERAL AND SPECIAL RISK PROGRAM ACCOUNT

    Under the heading, ``General and Special Risk Program 
Account,'' Federal Housing Administration, in title II of 
Division G of the Consolidated Appropriations Act, 2004 (Public 
Law 108-199; 118 Stat. 386), delete from the first proviso 
``$25,000,000,000'' and insert in lieu thereof 
``$29,000,000,000''.
    This proposal would increase the loan commitment limit for 
the Federal Housing Administration (FHA) General and Special 
Risk Program Account by $4 billion, bringing the total limit 
for FY 2004 to $29 billion.
    The General Insurance and Special Risk Insurance Funds (GI/
SRI) provide mortgage insurance for single family, multifamily, 
nursing home, and hospital loan programs. Current full-year 
projections, based on three quarters of the year, indicate 
commitments will reach a level close to that of the existing 
commitment limit of $25 billion.
    There is risk that the current limit could be reached 
before the end of FY 2004. The GI/SRI loan programs are highly 
responsive to changes in economic factors and real estate 
market forces. Unexpected increases in loan applications are 
possible. Additionally, direct endorsement of single family 
loans by FHA-approved lenders requires advance notice to halt 
commitment activity. The requested increase in commitment limit 
would provide greater assurance that disruption of loan 
processing due to exhaustion of commitment authority will be 
avoided.
    This proposal would produce negative credit subsidy 
receipts estimated to be $3 million in FY 2004 and $7 million 
in FY 2005.

                                  
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