[Congressional Record Volume 153, Number 81 (Wednesday, May 16, 2007)]
[House]
[Pages H5071-H5127]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  CONFERENCE REPORT ON S. CON. RES. 21, CONCURRENT RESOLUTION ON THE 
                      BUDGET FOR FISCAL YEAR 2008

  Mr. SPRATT submitted the following conference report and statement on 
the Senate concurrent resolution (S. Con. Res. 21) revising the 
congressional budget for the United States Government for fiscal year 
2007, establishing the congressional budget for the United States 
Government for fiscal year 2008,

[[Page H5072]]

and setting forth appropriate budgetary levels for fiscal years 2009 
through 2012:

                  Conference Report (H. Rept. 110-153)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the House to the concurrent 
     resolution (S. Con. Res. 21), revising the congressional 
     budget for the United States Government for fiscal year 2007, 
     establishing the congressional budget for the United States 
     Government for fiscal year 2008, and setting forth 
     appropriate budgetary levels for fiscal years 2009 through 
     2012, having met, after full and free conference, have agreed 
     to recommend and do recommend to their respective Houses as 
     follows:
       That the Senate recede from its disagreement to the 
     amendment of the House and agree to the same with an 
     amendment as follows:
       In lieu of the matter proposed to be inserted by the House 
     amendment, insert the following:

     SECTION 1. CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL 
                   YEAR 2008.

       (a) Declaration.--Congress declares that this resolution is 
     the concurrent resolution on the budget for fiscal year 2008 
     and that this resolution sets forth the appropriate budgetary 
     levels for fiscal years 2007 and 2009 through 2012.
       (b) Table of Contents.--The table of contents for this 
     concurrent resolution is as follows:

Sec. 1. Concurrent resolution on the budget for fiscal year 2008.

                TITLE I--RECOMMENDED LEVELS AND AMOUNTS

Sec. 101. Recommended levels and amounts.
Sec. 102. Social Security.
Sec. 103. Major functional categories.

                        TITLE II--BUDGET PROCESS

Sec. 201. Pay-as-you-go point of order in the Senate.
Sec. 202. Senate point of order against reconciliation legislation that 
              would increase the deficit or reduce a surplus.
Sec. 203. Senate point of order against legislation increasing long-
              term deficits.
Sec. 204. Emergency legislation.
Sec. 205. Extension of enforcement of budgetary points of order in the 
              Senate.
Sec. 206. Point of order against advance appropriations.
Sec. 207. Discretionary spending limits, program integrity initiatives, 
              and other adjustments.
Sec. 208. Application of previous allocations in the Senate.
Sec. 209. Senate point of order against provisions of appropriations 
              legislation that constitute changes in mandatory programs 
              with net costs.
Sec. 210. Compliance with section 13301 of the Budget Enforcement Act 
              of 1990.
Sec. 211. Application and effect of changes in allocations and 
              aggregates.
Sec. 212. Adjustments to reflect changes in concepts and definitions.
Sec. 213. Exercise of rulemaking powers.

                        TITLE III--RESERVE FUNDS

Sec. 301. Deficit-neutral reserve fund for SCHIP legislation.
Sec. 302. Deficit-neutral reserve fund for veterans and wounded 
              servicemembers.
Sec. 303. Deficit-neutral reserve fund for tax relief.
Sec. 304. Deficit-neutral reserve fund for Medicare improvements.
Sec. 305. Deficit neutral reserve funds for health care quality, 
              effectiveness, efficiency, and transparency.
Sec. 306. Deficit-neutral reserve fund for higher education.
Sec. 307. Deficit-neutral reserve fund for the Farm Bill.
Sec. 308. Deficit-neutral reserve fund for energy legislation.
Sec. 309. Deficit-neutral reserve fund for county payments legislation.
Sec. 310. Deficit-neutral reserve fund for terrorism risk insurance 
              reauthorization.
Sec. 311. Deficit-neutral reserve fund for affordable housing.
Sec. 312. Deficit-neutral reserve fund for receipts from Bonneville 
              Power Administration.
Sec. 313. Deficit-neutral reserve fund for Indian claims settlement.
Sec. 314. Deficit-neutral reserve fund for improvements in health.
Sec. 315. Deficit-neutral reserve fund for child care.
Sec. 316. Deficit-neutral reserve fund for immigration reform in the 
              Senate.
Sec. 317. Deficit-reduction reserve fund.
Sec. 318. Deficit-neutral reserve fund for manufacturing initiatives in 
              the Senate.
Sec. 319. Deficit-neutral reserve fund for the Food and Drug 
              Administration in the Senate.
Sec. 320. Deficit-neutral reserve fund for Medicaid.
Sec. 321. Reserve fund adjustment for revenue measures in the House.
Sec. 322. Deficit-neutral reserve fund for San Joaquin River 
              restoration and Navajo Nation water rights settlements.
Sec. 323. Deficit-neutral reserve fund for selected tax relief policies 
              in the Senate.

                            TITLE IV--POLICY

Sec. 401. Policy on middle-income tax relief.
Sec. 402. Policy on defense priorities.
Sec. 403. Policy on college affordability.

           TITLE V--SENSE OF THE HOUSE AND SENSE OF CONGRESS

Sec. 501. Sense of Congress on servicemembers' and veterans' health 
              care and other priorities.
Sec. 502. Sense of Congress on the Innovation Agenda: A commitment to 
              competitiveness to keep America #1.
Sec. 503. Sense of Congress on homeland security.
Sec. 504. Sense of Congress regarding the ongoing need to respond to 
              Hurricanes Katrina and Rita.
Sec. 505. Sense of Congress regarding long-term sustainability of 
              entitlements.
Sec. 506. Sense of Congress regarding the need to maintain and build 
              upon efforts to fight hunger.
Sec. 507. Sense of Congress regarding affordable health coverage.
Sec. 508. Sense of Congress regarding extension of the statutory pay-
              as-you-go rule.
Sec. 509. Sense of Congress on long-term budgeting.
Sec. 510. Sense of Congress regarding pay parity.
Sec. 511. Sense of Congress regarding waste, fraud, and abuse.
Sec. 512. Sense of Congress regarding the importance of child support 
              enforcement.
Sec. 513. Sense of the House on State veterans cemeteries.
Sec. 514. Sense of Congress on the State Criminal Alien Assistance 
              Program.

                        TITLE VI--RECONCILIATION

Sec. 601. Reconciliation in the House.
Sec. 602. Deficit reduction reconciliation instruction in the Senate.

                TITLE I--RECOMMENDED LEVELS AND AMOUNTS

     SEC. 101. RECOMMENDED LEVELS AND AMOUNTS.

       The following budgetary levels are appropriate for each of 
     fiscal years 2007 through 2012:
       (1) Federal revenues.--For purposes of the enforcement of 
     this resolution:
       (A) The recommended levels of Federal revenues are as 
     follows:
       Fiscal year 2007: $1,900,340,000,000.
       Fiscal year 2008: $2,015,858,000,000.
       Fiscal year 2009: $2,113,828,000,000.
       Fiscal year 2010: $2,169,484,000,000.
       Fiscal year 2011: $2,350,254,000,000.
       Fiscal year 2012: $2,488,301,000,000.
       (B) The amounts by which the aggregate levels of Federal 
     revenues should be changed are as follows:
       Fiscal year 2007: -$4,366,000,000.
       Fiscal year 2008: -$34,938,000,000.
       Fiscal year 2009: $6,902,000,000.
       Fiscal year 2010: $5,763,000,000.
       Fiscal year 2011: -$44,296,000,000.
       Fiscal year 2012: -$108,795,000,000.
       (2) New budget authority.--For purposes of the enforcement 
     of this resolution, the appropriate levels of total new 
     budget authority are as follows:
       Fiscal year 2007: $2,380,535,000,000.
       Fiscal year 2008: $2,496,028,000,000.
       Fiscal year 2009: $2,517,132,000,000.
       Fiscal year 2010: $2,569,696,000,000.
       Fiscal year 2011: $2,684,889,000,000.
       Fiscal year 2012: $2,719,268,000,000.
       (3) Budget outlays.--For purposes of the enforcement of 
     this resolution, the appropriate levels of total budget 
     outlays are as follows:
       Fiscal year 2007: $2,300,572,000,000.
       Fiscal year 2008: $2,469,636,000,000.
       Fiscal year 2009: $2,566,481,000,000.
       Fiscal year 2010: $2,600,036,000,000.
       Fiscal year 2011: $2,692,104,000,000.
       Fiscal year 2012: $2,703,556,000,000.
       (4) Deficits.--For purposes of the enforcement of this 
     resolution, the amounts of the deficits are as follows:
       Fiscal year 2007: $400,232,000,000.
       Fiscal year 2008: $453,778,000,000.
       Fiscal year 2009: $452,653,000,000.
       Fiscal year 2010: $430,552,000,000.
       Fiscal year 2011: $341,850,000,000.
       Fiscal year 2012: $215,255,000,000.
       (5) Debt subject to limit.--Pursuant to section 301(a)(5) 
     of the Congressional Budget Act of 1974, the appropriate 
     levels of the public debt are as follows:
       Fiscal year 2007: $8,932,264,000,000.
       Fiscal year 2008: $9,504,150,000,000.
       Fiscal year 2009: $10,073,725,000,000.
       Fiscal year 2010: $10,622,023,000,000.
       Fiscal year 2011: $11,077,407,000,000.
       Fiscal year 2012: $11,419,028,000,000.
       (6) Debt held by the public.--The appropriate levels of 
     debt held by the public are as follows:
       Fiscal year 2007: $5,047,318,000,000.
       Fiscal year 2008: $5,312,560,000,000.
       Fiscal year 2009: $5,561,383,000,000.
       Fiscal year 2010: $5,774,487,000,000.
       Fiscal year 2011: $5,881,776,000,000.
       Fiscal year 2012: $5,850,852,000,000.

     SEC. 102. SOCIAL SECURITY.

       (a) Social Security Revenues.--For purposes of Senate 
     enforcement under sections 302 and 311 of the Congressional 
     Budget Act of 1974, the amounts of revenues of the Federal 
     Old-Age and Survivors Insurance Trust Fund and the Federal 
     Disability Insurance Trust Fund are as follows:
       Fiscal year 2007: $637,586,000,000.
       Fiscal year 2008: $668,998,000,000.
       Fiscal year 2009: $702,851,000,000.
       Fiscal year 2010: $737,589,000,000.
       Fiscal year 2011: $772,605,000,000.
       Fiscal year 2012: $807,928,000,000.
       (b) Social Security Outlays.--For purposes of Senate 
     enforcement under sections 302 and 311 of the Congressional 
     Budget Act of 1974, the amounts of outlays of the Federal 
     Old-Age and Survivors Insurance Trust Fund and the Federal 
     Disability Insurance Trust Fund are as follows:

[[Page H5073]]

       Fiscal year 2007: $441,676,000,000.
       Fiscal year 2008: $460,224,000,000.
       Fiscal year 2009: $478,578,000,000.
       Fiscal year 2010: $499,655,000,000.
       Fiscal year 2011: $520,743,000,000.
       Fiscal year 2012: $546,082,000,000.
       (c) Social Security Administrative Expenses.--In the 
     Senate, the amounts of new budget authority and budget 
     outlays of the Federal Old-Age and Survivors Insurance Trust 
     Fund and the Federal Disability Insurance Trust Fund for 
     administrative expenses are as follows:
     Fiscal year 2007:
       
       (A) New budget authority, $4,692,000,000.
       (B) Outlays, $4,727,000,000.
     Fiscal year 2008:
       (A) New budget authority, $4,850,000,000.
       (B) Outlays, $4,859,000,000.
     Fiscal year 2009:
       (A) New budget authority, $4,996,000,000.
       (B) Outlays, $4,970,000,000.
     Fiscal year 2010:
       (A) New budget authority, $5,147,000,000.
       (B) Outlays, $5,121,000,000.
     Fiscal year 2011:
       (A) New budget authority, $5,306,000,000.
       (B) Outlays, $5,278,000,000.
     Fiscal year 2012:
       (A) New budget authority, $5,467,000,000.
       (B) Outlays, $5,439,000,000.

     SEC. 103. MAJOR FUNCTIONAL CATEGORIES.

       Congress determines and declares that the appropriate 
     levels of new budget authority and outlays for fiscal years 
     2007 through 2012 for each major functional category are:
       (1) National Defense (050):
       Fiscal year 2007:
       (A) New budget authority, $525,797,000,000.
       (B) Outlays, $534,270,000,000.
       Fiscal year 2008:
       (A) New budget authority, $506,955,000,000.
       (B) Outlays, $514,401,000,000.
       Fiscal year 2009:
       (A) New budget authority, $534,705,000,000.
       (B) Outlays, $524,384,000,000.
       Fiscal year 2010:
       (A) New budget authority, $545,171,000,000.
       (B) Outlays, $536,433,000,000.
       Fiscal year 2011:
       (A) New budget authority, $550,944,000,000.
       (B) Outlays, $547,624,000,000.
       Fiscal year 2012:
       (A) New budget authority, $559,799,000,000.
       (B) Outlays, $548,169,000,000.
       (2) International Affairs (150):
       Fiscal year 2007:
       (A) New budget authority, $28,795,000,000.
       (B) Outlays, $31,308,000,000.
       Fiscal year 2008:
       (A) New budget authority, $34,678,000,000.
       (B) Outlays, $33,070,000,000.
       Fiscal year 2009:
       (A) New budget authority, $35,602,000,000.
       (B) Outlays, $32,664,000,000.
       Fiscal year 2010:
       (A) New budget authority, $35,980,000,000.
       (B) Outlays, $33,070,000,000.
       Fiscal year 2011:
       (A) New budget authority, $36,630,000,000.
       (B) Outlays, $33,528,000,000.
       Fiscal year 2012:
       (A) New budget authority, $37,257,000,000.
       (B) Outlays, $34,150,000,000.
       (3) General Science, Space, and Technology (250):
       Fiscal year 2007:
       (A) New budget authority, $25,079,000,000.
       (B) Outlays, $24,516,000,000.
       Fiscal year 2008:
       (A) New budget authority, $27,615,000,000.
       (B) Outlays, $26,472,000,000.
       Fiscal year 2009:
       (A) New budget authority, $28,641,000,000.
       (B) Outlays, $28,411,000,000.
       Fiscal year 2010:
       (A) New budget authority, $29,844,000,000.
       (B) Outlays, $29,485,000,000.
       Fiscal year 2011:
       (A) New budget authority, $31,103,000,000.
       (B) Outlays, $30,089,000,000.
       Fiscal year 2012:
       (A) New budget authority, $32,438,000,000.
       (B) Outlays, $31,367,000,000.
       (4) Energy (270):
       Fiscal year 2007:
       (A) New budget authority, $2,943,000,000.
       (B) Outlays, $1,369,000,000.
       Fiscal year 2008:
       (A) New budget authority, $3,408,000,000.
       (B) Outlays, $1,162,000,000.
       Fiscal year 2009:
       (A) New budget authority, $3,209,000,000.
       (B) Outlays, $1,590,000,000.
       Fiscal year 2010:
       (A) New budget authority, $3,275,000,000.
       (B) Outlays, $1,782,000,000.
       Fiscal year 2011:
       (A) New budget authority, $3,346,000,000.
       (B) Outlays, $1,829,000,000.
       Fiscal year 2012:
       (A) New budget authority, $3,404,000,000.
       (B) Outlays, $2,111,000,000.
       (5) Natural Resources and Environment (300):
       Fiscal year 2007:
       (A) New budget authority, $31,332,000,000.
       (B) Outlays, $32,919,000,000.
       Fiscal year 2008:
       (A) New budget authority, $33,384,000,000.
       (B) Outlays, $35,219,000,000.
       Fiscal year 2009:
       (A) New budget authority, $33,910,000,000.
       (B) Outlays, $35,704,000,000.
       Fiscal year 2010:
       (A) New budget authority, $34,660,000,000.
       (B) Outlays, $35,834,000,000.
       Fiscal year 2011:
       (A) New budget authority, $35,113,000,000.
       (B) Outlays, $36,035,000,000.
       Fiscal year 2012:
       (A) New budget authority, $36,094,000,000.
       (B) Outlays, $36,507,000,000.
       (6) Agriculture (350):
       Fiscal year 2007:
       (A) New budget authority, $21,471,000,000.
       (B) Outlays, $19,738,000,000.
       Fiscal year 2008:
       (A) New budget authority, $20,481,000,000.
       (B) Outlays, $19,603,000,000.
       Fiscal year 2009:
       (A) New budget authority, $21,033,000,000.
       (B) Outlays, $20,146,000,000.
       Fiscal year 2010:
       (A) New budget authority, $21,238,000,000.
       (B) Outlays, $20,207,000,000.
       Fiscal year 2011:
       (A) New budget authority, $21,256,000,000.
       (B) Outlays, $20,534,000,000.
       Fiscal year 2012:
       (A) New budget authority, $21,502,000,000.
       (B) Outlays, $20,963,000,000.
       (7) Commerce and Housing Credit (370):
       Fiscal year 2007:
       (A) New budget authority, $5,515,000,000.
       (B) Outlays, -$3,522,000,000.
       Fiscal year 2008:
       (A) New budget authority, $9,279,000,000.
       (B) Outlays, $2,034,000,000.
       Fiscal year 2009:
       (A) New budget authority, $9,973,000,000.
       (B) Outlays, $1,048,000,000.
       Fiscal year 2010:
       (A) New budget authority, $13,775,000,000.
       (B) Outlays, $3,431,000,000.
       Fiscal year 2011:
       (A) New budget authority, $8,822,000,000.
       (B) Outlays, $2,439,000,000.
       Fiscal year 2012:
       (A) New budget authority, $8,822,000,000.
       (B) Outlays, $756,000,000.
       (8) Transportation (400):
       Fiscal year 2007:
       (A) New budget authority, $81,282,000,000.
       (B) Outlays, $74,739,000,000.
       Fiscal year 2008:
       (A) New budget authority, $82,799,000,000.
       (B) Outlays, $81,093,000,000.
       Fiscal year 2009:
       (A) New budget authority, $76,306,000,000.
       (B) Outlays, $84,025,000,000.
       Fiscal year 2010:
       (A) New budget authority, $77,061,000,000.
       (B) Outlays, $85,959,000,000.
       Fiscal year 2011:
       (A) New budget authority, $78,089,000,000.
       (B) Outlays, $86,672,000,000.
       Fiscal year 2012:
       (A) New budget authority, $78,969,000,000.
       (B) Outlays, $88,352,000,000.
       (9) Community and Regional Development (450):
       Fiscal year 2007:
       (A) New budget authority, $15,717,000,000.
       (B) Outlays, $28,281,000,000.
       Fiscal year 2008:
       (A) New budget authority, $15,814,000,000.
       (B) Outlays, $22,292,000,000.
       Fiscal year 2009:
       (A) New budget authority, $14,725,000,000.
       (B) Outlays, $21,008,000,000.
       Fiscal year 2010:
       (A) New budget authority, $14,942,000,000.
       (B) Outlays, $19,892,000,000.
       Fiscal year 2011:
       (A) New budget authority, $15,157,000,000.
       (B) Outlays, $18,440,000,000.
       Fiscal year 2012:
       (A) New budget authority, $15,371,000,000.
       (B) Outlays, $15,938,000,000.
       (10) Education, Training, Employment, and Social Services 
     (500):
       Fiscal year 2007:
       (A) New budget authority, $92,780,000,000.
       (B) Outlays, $92,224,000,000.
       Fiscal year 2008:
       (A) New budget authority, $93,880,000,000.
       (B) Outlays, $91,022,000,000.
       Fiscal year 2009:
       (A) New budget authority, $97,809,000,000.
       (B) Outlays, $94,513,000,000.
       Fiscal year 2010:
       (A) New budget authority, $99,726,000,000.
       (B) Outlays, $97,075,000,000.
       Fiscal year 2011:
       (A) New budget authority, $100,151,000,000.
       (B) Outlays, $98,745,000,000.
       Fiscal year 2012:
       (A) New budget authority, $100,748,000,000.
       (B) Outlays, $98,728,000,000.
       (11) Health (550):
       Fiscal year 2007:
       (A) New budget authority, $267,892,000,000.
       (B) Outlays, $268,197,000,000.
       Fiscal year 2008:
       (A) New budget authority, $287,486,000,000.
       (B) Outlays, $286,442,000,000.
       Fiscal year 2009:
       (A) New budget authority, $308,326,000,000.
       (B) Outlays, $306,410,000,000.
       Fiscal year 2010:
       (A) New budget authority, $326,118,000,000.
       (B) Outlays, $326,100,000,000.
       Fiscal year 2011:
       (A) New budget authority, $347,561,000,000.
       (B) Outlays, $346,748,000,000.
       Fiscal year 2012:
       (A) New budget authority, $370,422,000,000.
       (B) Outlays, $369,653,000,000.
       (12) Medicare (570):
       Fiscal year 2007:
       (A) New budget authority, $365,152,000,000.
       (B) Outlays, $370,180,000,000.
       Fiscal year 2008:
       (A) New budget authority, $389,587,000,000.
       (B) Outlays, $389,703,000,000.
       Fiscal year 2009:
       (A) New budget authority, $416,710,000,000.
       (B) Outlays, $416,367,000,000.
       Fiscal year 2010:
       (A) New budget authority, $442,347,000,000.
       (B) Outlays, $442,569,000,000.
       Fiscal year 2011:

[[Page H5074]]

       (A) New budget authority, $489,077,000,000.
       (B) Outlays, $489,087,000,000.
       Fiscal year 2012:
       (A) New budget authority, $486,804,000,000.
       (B) Outlays, $486,417,000,000.
       (13) Income Security (600):
       Fiscal year 2007:
       (A) New budget authority, $360,365,000,000.
       (B) Outlays, $364,204,000,000.
       Fiscal year 2008:
       (A) New budget authority, $380,763,000,000.
       (B) Outlays, $384,301,000,000.
       Fiscal year 2009:
       (A) New budget authority, $391,707,000,000.
       (B) Outlays, $393,962,000,000.
       Fiscal year 2010:
       (A) New budget authority, $401,747,000,000.
       (B) Outlays, $402,784,000,000.
       Fiscal year 2011:
       (A) New budget authority, $417,020,000,000.
       (B) Outlays, $417,013,000,000.
       Fiscal year 2012:
       (A) New budget authority, $402,674,000,000.
       (B) Outlays, $402,008,000,000.
       (14) Social Security (650):
       Fiscal year 2007:
       (A) New budget authority, $19,089,000,000.
       (B) Outlays, $19,089,000,000.
       Fiscal year 2008:
       (A) New budget authority, $19,644,000,000.
       (B) Outlays, $19,644,000,000.
       Fiscal year 2009:
       (A) New budget authority, $21,518,000,000.
       (B) Outlays, $21,518,000,000.
       Fiscal year 2010:
       (A) New budget authority, $23,701,000,000.
       (B) Outlays, $23,701,000,000.
       Fiscal year 2011:
       (A) New budget authority, $27,009,000,000.
       (B) Outlays, $27,009,000,000.
       Fiscal year 2012:
       (A) New budget authority, $29,898,000,000.
       (B) Outlays, $29,898,000,000.
       (15) Veterans Benefits and Services (700):
       Fiscal year 2007:
       (A) New budget authority, $73,896,000,000.
       (B) Outlays, $72,342,000,000.
       Fiscal year 2008:
       (A) New budget authority, $85,262,000,000.
       (B) Outlays, $84,421,000,000.
       Fiscal year 2009:
       (A) New budget authority, $87,787,000,000.
       (B) Outlays, $88,290,000,000.
       Fiscal year 2010:
       (A) New budget authority, $90,414,000,000.
       (B) Outlays, $89,981,000,000.
       Fiscal year 2011:
       (A) New budget authority, $96,033,000,000.
       (B) Outlays, $95,543,000,000.
       Fiscal year 2012:
       (A) New budget authority, $93,325,000,000.
       (B) Outlays, $92,666,000,000.
       (16) Administration of Justice (750):
       Fiscal year 2007:
       (A) New budget authority, $45,504,000,000.
       (B) Outlays, $44,659,000,000.
       Fiscal year 2008:
       (A) New budget authority, $47,998,000,000.
       (B) Outlays, $47,131,000,000.
       Fiscal year 2009:
       (A) New budget authority, $48,315,000,000.
       (B) Outlays, $49,120,000,000.
       Fiscal year 2010:
       (A) New budget authority, $49,220,000,000.
       (B) Outlays, $49,449,000,000.
       Fiscal year 2011:
       (A) New budget authority, $50,146,000,000.
       (B) Outlays, $49,969,000,000.
       Fiscal year 2012:
       (A) New budget authority, $51,079,000,000.
       (B) Outlays, $50,759,000,000.
       (17) General Government (800):
       Fiscal year 2007:
       (A) New budget authority, $18,193,000,000.
       (B) Outlays, $18,574,000,000.
       Fiscal year 2008:
       (A) New budget authority, $18,628,000,000.
       (B) Outlays, $19,012,000,000.
       Fiscal year 2009:
       (A) New budget authority, $19,254,000,000.
       (B) Outlays, $19,323,000,000.
       Fiscal year 2010:
       (A) New budget authority, $19,876,000,000.
       (B) Outlays, $19,755,000,000.
       Fiscal year 2011:
       (A) New budget authority, $20,637,000,000.
       (B) Outlays, $20,360,000,000.
       Fiscal year 2012:
       (A) New budget authority, $21,349,000,000.
       (B) Outlays, $21,183,000,000.
       (18) Net Interest (900):
       Fiscal year 2007:
       (A) New budget authority, $344,509,000,000.
       (B) Outlays, $344,509,000,000.
       Fiscal year 2008:
       (A) New budget authority, $370,578,000,000.
       (B) Outlays, $370,578,000,000.
       Fiscal year 2009:
       (A) New budget authority, $391,056,000,000.
       (B) Outlays, $391,056,000,000.
       Fiscal year 2010:
       (A) New budget authority, $414,724,000,000.
       (B) Outlays, $414,724,000,000.
       Fiscal year 2011:
       (A) New budget authority, $433,665,000,000.
       (B) Outlays, $433,665,000,000.
       Fiscal year 2012:
       (A) New budget authority, $448,597,000,000.
       (B) Outlays, $448,597,000,000.
       (19) Allowances (920):
       Fiscal year 2007:
       (A) New budget authority, $785,000,000.
       (B) Outlays, $755,000,000.
       Fiscal year 2008:
       (A) New budget authority, -$6,394,000,000.
       (B) Outlays, -$2,164,000,000.
       Fiscal year 2009:
       (A) New budget authority, -$6,894,000,000.
       (B) Outlays, -$6,319,000,000.
       Fiscal year 2010:
       (A) New budget authority, -$7,190,000,000.
       (B) Outlays, -$6,984,000,000.
       Fiscal year 2011:
       (A) New budget authority, -$7,295,000,000.
       (B) Outlays, -$7,181,000,000.
       Fiscal year 2012:
       (A) New budget authority, -$7,427,000,000.
       (B) Outlays, -$7,311,000,000.
       (20) Undistributed Offsetting Receipts (950):
       Fiscal year 2007:
       (A) New budget authority,       -$69,714,000,000.
       (B) Outlays, -$69,714,000,000.
       Fiscal year 2008:
       (A) New budget authority,       -$70,979,000,000.
       (B) Outlays, -$70,979,000,000.
       Fiscal year 2009:
       (A) New budget authority,       -$66,560,000,000.
       (B) Outlays, -$66,569,000,000.
       Fiscal year 2010:
       (A) New budget authority,       -$66,933,000,000.
       (B) Outlays, -$66,933,000,000.
       Fiscal year 2011:
       (A) New budget authority,       -$69,575,000,000.
       (B) Outlays, -$69,595,000,000.
       Fiscal year 2012:
       (A) New budget authority,       -$71,857,000,000.
       (B) Outlays, -$71,860,000,000.
       (21) Overseas Deployments and Other Activities (970):
       Fiscal year 2007:
       (A) New budget authority, $124,153,000,000.
       (B) Outlays, $31,935,000,000.
       Fiscal year 2008:
       (A) New budget authority, $145,162,000,000.
       (B) Outlays, $115,179,000,000.
       Fiscal year 2009:
       (A) New budget authority, $50,000,000,000.
       (B) Outlays, $109,830,000,000.
       Fiscal year 2010:
       (A) New budget authority, $0.
       (B) Outlays, $41,722,000,000.
       Fiscal year 2011:
       (A) New budget authority, $0.
       (B) Outlays, $13,551,000,000.
       Fiscal year 2012:
       (A) New budget authority, $0.
       (B) Outlays, $4,505,000,000.

                        TITLE II--BUDGET PROCESS

     SEC. 201. PAY-AS-YOU-GO POINT OF ORDER IN THE SENATE.

       (a) Point of Order.--
       (1) In general.--It shall not be in order in the Senate to 
     consider any direct spending or revenue legislation that 
     would increase the on-budget deficit or cause an on-budget 
     deficit for either of the applicable time periods as measured 
     in paragraphs (5) and (6).
       (2) Applicable time periods.--For purposes of this 
     subsection, the term ``applicable time period'' means 
     either--
       (A) the period of the current fiscal year, the budget year, 
     and the ensuing 4 fiscal years following the budget year; or
       (B) the period of the current fiscal year, the budget year, 
     and the ensuing 9 fiscal years following the budget year.
       (3) Direct spending legislation.--For purposes of this 
     subsection and except as provided in paragraph (4), the term 
     ``direct spending legislation'' means any bill, joint 
     resolution, amendment, motion, or conference report that 
     affects direct spending as that term is defined by, and 
     interpreted for purposes of, the Balanced Budget and 
     Emergency Deficit Control Act of 1985.
       (4) Exclusion.--For purposes of this subsection, the terms 
     ``direct spending legislation'' and ``revenue legislation'' 
     do not include--
       (A) any concurrent resolution on the budget; or
       (B) any provision of legislation that affects the full 
     funding of, and continuation of, the deposit insurance 
     guarantee commitment in effect on the date of enactment of 
     the Budget Enforcement Act of 1990.
       (5) Baseline.--Estimates prepared pursuant to this 
     subsection shall--
       (A) use the baseline surplus or deficit used for the most 
     recently adopted concurrent resolution on the budget; and
       (B) be calculated under the requirements of subsections (b) 
     through (d) of section 257 of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 (as in effect prior to 
     September 30, 2002) for fiscal years beyond those covered by 
     that concurrent resolution on the budget.
       (6) Prior surplus.--If direct spending or revenue 
     legislation increases the on-budget deficit or causes an on-
     budget deficit when taken individually, it must also increase 
     the on-budget deficit or cause an on-budget deficit when 
     taken together with all direct spending and revenue 
     legislation enacted since the beginning of the calendar year 
     not accounted for in the baseline under paragraph (5)(A), 
     except that direct spending or revenue effects resulting in 
     net deficit reduction enacted in any bill pursuant to a 
     reconciliation instruction since the beginning of that same 
     calendar year shall never be made available on the pay-as-
     you-go ledger and shall be dedicated only for deficit 
     reduction.
       (b) Supermajority Waiver and Appeals.--
       (1) Waiver.--This section may be waived or suspended in the 
     Senate only by the affirmative vote of three-fifths of the 
     Members, duly chosen and sworn.
       (2) Appeals.--Appeals in the Senate from the decisions of 
     the Chair relating to any provision of this section shall be 
     limited to 1 hour, to be equally divided between, and 
     controlled by, the appellant and the manager of the bill or 
     joint resolution, as the case may be. An affirmative vote of 
     three-fifths of the Members of the Senate, duly chosen and 
     sworn, shall be required to sustain an appeal of the ruling 
     of the Chair on a point of order raised under this section.
       (c) Determination of Budget Levels.--For purposes of this 
     section, the levels of new budget

[[Page H5075]]

     authority, outlays, and revenues for a fiscal year shall be 
     determined on the basis of estimates made by the Senate 
     Committee on the Budget.
       (d) Sunset.--This section shall expire on September 30, 
     2017.
       (e) Repeal.--In the Senate, section 505 of H. Con. Res. 95 
     (108th Congress), the fiscal year 2004 concurrent resolution 
     on the budget, shall no longer apply.

     SEC. 202. SENATE POINT OF ORDER AGAINST RECONCILIATION 
                   LEGISLATION THAT WOULD INCREASE THE DEFICIT OR 
                   REDUCE A SURPLUS.

       (a) In General.--It shall not be in order in the Senate to 
     consider any reconciliation bill, resolution, amendment, 
     amendment between Houses, motion, or conference report 
     pursuant to section 310 of the Congressional Budget Act of 
     1974 that would cause or increase a deficit or reduce a 
     surplus in either of the following periods:
       (1) The current fiscal year, the budget year, and the 
     ensuing 4 fiscal years following the budget year.
       (2) The current fiscal year, the budget year, and the 
     ensuing 9 fiscal years following the budget year.
       (b) Supermajority Waiver and Appeal in the Senate.--
       (1) Waiver.--This section may be waived or suspended in the 
     Senate only by an affirmative vote of three-fifths of the 
     Members, duly chosen and sworn.
       (2) Appeal.--An affirmative vote of three-fifths of the 
     Members of the Senate, duly chosen and sworn, shall be 
     required in the Senate to sustain an appeal of the ruling of 
     the Chair on a point of order raised under this section.
       (c) Determination of Budget Levels.--For purposes of this 
     section, the levels of net deficit increases shall be 
     determined on the basis of estimates provided by the Senate 
     Committee on the Budget.

     SEC. 203. SENATE POINT OF ORDER AGAINST LEGISLATION 
                   INCREASING LONG-TERM DEFICITS.

       (a) Congressional Budget Office Analysis of Proposals.--The 
     Director of the Congressional Budget Office shall, to the 
     extent practicable, prepare for each bill and joint 
     resolution reported from committee (except measures within 
     the jurisdiction of the Committee on Appropriations), and 
     amendments thereto and conference reports thereon, an 
     estimate of whether the measure would cause, relative to 
     current law, a net increase in deficits in excess of 
     $5,000,000,000 in any of the four 10-year periods beginning 
     in fiscal year 2018 through fiscal year 2057.
       (b) Point of Order.--It shall not be in order in the Senate 
     to consider any bill, joint resolution, amendment, motion, or 
     conference report that would cause a net increase in deficits 
     in excess of $5,000,000,000 in any of the 4 10-year periods 
     beginning in 2018 through 2057.
       (c) Supermajority Waiver and Appeal in the Senate.--
       (1) Waiver.--This section may be waived or suspended only 
     by the affirmative vote of three-fifths of the Members, duly 
     chosen and sworn.
       (2) Appeal.--An affirmative vote of three-fifths of the 
     Members, duly chosen and sworn, shall be required to sustain 
     an appeal of the ruling of the Chair on a point of order 
     raised under this section.
       (d) Determinations of Budget Levels.--For purposes of this 
     section, the levels of net deficit increases shall be 
     determined on the basis of estimates provided by the Senate 
     Committee on the Budget.
       (e) Repeal.--In the Senate, section 407 of H. Con. Res. 95 
     (109th Congress), the concurrent resolution on the budget for 
     fiscal year 2006, shall no longer apply.
       (f) Sunset.--This section shall expire on September 30, 
     2017.

     SEC. 204. EMERGENCY LEGISLATION.

       (a) Senate.--
       (1) Authority to designate.--In the Senate, with respect to 
     a provision of direct spending or receipts legislation or 
     appropriations for discretionary accounts that Congress 
     designates as an emergency requirement in such measure, the 
     amounts of new budget authority, outlays, and receipts in all 
     fiscal years resulting from that provision shall be treated 
     as an emergency requirement for the purpose of this 
     subsection.
       (2) Exemption of emergency provisions.--Any new budget 
     authority, outlays, and receipts resulting from any provision 
     designated as an emergency requirement, pursuant to this 
     subsection, in any bill, joint resolution, amendment, or 
     conference report shall not count for purposes of sections 
     302 and 311 of the Congressional Budget Act of 1974 and 
     sections 201, 203, and 207 of this resolution (relating to 
     pay-as-you-go in the Senate, long-term deficits, and 
     discretionary spending limits).
       (3) Designations.--If a provision of legislation is 
     designated as an emergency requirement under this subsection, 
     the committee report and any statement of managers 
     accompanying that legislation shall include an explanation of 
     the manner in which the provision meets the criteria in 
     paragraph (6).
       (4) Definitions.--In this subsection, the terms ``direct 
     spending'', ``receipts'', and ``appropriations for 
     discretionary accounts'' mean any provision of a bill, joint 
     resolution, amendment, motion, or conference report that 
     affects direct spending, receipts, or appropriations as those 
     terms have been defined and interpreted for purposes of the 
     Balanced Budget and Emergency Deficit Control Act of 1985.
       (5) Point of order.--
       (A) In general.--When the Senate is considering a bill, 
     resolution, amendment, motion, or conference report, if a 
     point of order is made by a Senator against an emergency 
     designation in that measure, that provision making such a 
     designation shall be stricken from the measure and may not be 
     offered as an amendment from the floor.
       (B) Supermajority waiver and appeals.--
       (i) Waiver.--Subparagraph (A) may be waived or suspended in 
     the Senate only by an affirmative vote of three-fifths of the 
     Members, duly chosen and sworn.
       (ii) Appeals.--Appeals in the Senate from the decisions of 
     the Chair relating to any provision of this paragraph shall 
     be limited to 1 hour, to be equally divided between, and 
     controlled by, the appellant and the manager of the bill or 
     joint resolution, as the case may be. An affirmative vote of 
     three-fifths of the Members of the Senate, duly chosen and 
     sworn, shall be required to sustain an appeal of the ruling 
     of the Chair on a point of order raised under this paragraph.
       (C) Definition of an emergency designation.--For purposes 
     of subparagraph (A), a provision shall be considered an 
     emergency designation if it designates any item as an 
     emergency requirement pursuant to this subsection.
       (D) Form of the point of order.--A point of order under 
     subparagraph (A) may be raised by a Senator as provided in 
     section 313(e) of the Congressional Budget Act of 1974.
       (E) Conference reports.--When the Senate is considering a 
     conference report on, or an amendment between the Houses in 
     relation to, a bill, upon a point of order being made by any 
     Senator pursuant to this subsection, and such point of order 
     being sustained, such material contained in such conference 
     report shall be deemed stricken, and the Senate shall proceed 
     to consider the question of whether the Senate shall recede 
     from its amendment and concur with a further amendment, or 
     concur in the House amendment with a further amendment, as 
     the case may be, which further amendment shall consist of 
     only that portion of the conference report or House 
     amendment, as the case may be, not so stricken. Any such 
     motion in the Senate shall be debatable. In any case in which 
     such point of order is sustained against a conference report 
     (or Senate amendment derived from such conference report by 
     operation of this paragraph), no further amendment shall be 
     in order.
       (6) Criteria.--
       (A) In general.--For purposes of this subsection, any 
     provision is an emergency requirement if the situation 
     addressed by such provision is--
       (i) necessary, essential, or vital (not merely useful or 
     beneficial);
       (ii) sudden, quickly coming into being, and not building up 
     over time;
       (iii) an urgent, pressing, and compelling need requiring 
     immediate action;
       (iv) subject to subparagraph (B), unforeseen, 
     unpredictable, and unanticipated; and
       (v) not permanent, temporary in nature.
       (B) Unforeseen.--An emergency that is part of an aggregate 
     level of anticipated emergencies, particularly when normally 
     estimated in advance, is not unforeseen.
       (7) Repeal.--In the Senate, section 402 of H. Con. Res. 95 
     (109th Congress), the concurrent resolution on the budget for 
     fiscal year 2006, shall no longer apply.
       (b) House.--In the House, if any bill or joint resolution, 
     or amendment offered or considered as adopted or conference 
     report thereon, that makes appropriations for discretionary 
     amounts, and such amounts are designated as necessary to meet 
     emergency needs, then the new budget authority and outlays 
     resulting therefrom shall not be counted for the purposes of 
     titles III and IV of the Congressional Budget Act of 1974.

     SEC. 205. EXTENSION OF ENFORCEMENT OF BUDGETARY POINTS OF 
                   ORDER IN THE SENATE.

       Notwithstanding any provision of the Congressional Budget 
     Act of 1974, subsections (c)(2) and (d)(3) of section 904 of 
     the Congressional Budget Act of 1974 shall remain in effect 
     for purposes of Senate enforcement through September 30, 
     2017, and Section 403 of H. Con. Res. 95 (109th Congress) 
     shall no longer apply in the Senate.

     SEC. 206. POINT OF ORDER AGAINST ADVANCE APPROPRIATIONS.

       (a) Senate.--
       (1) In general.--
       (A) Point of order.--Except as provided in paragraph (2), 
     it shall not be in order in the Senate to consider any bill, 
     joint resolution, motion, amendment, or conference report 
     that would provide an advance appropriation.
       (B) Definition.--In this subsection, the term ``advance 
     appropriation'' means any new budget authority provided in a 
     bill or joint resolution making appropriations for fiscal 
     year 2008 that first becomes available for any fiscal year 
     after 2008, or any new budget authority provided in a bill or 
     joint resolution making general appropriations or continuing 
     appropriations for fiscal year 2009, that first becomes 
     available for any fiscal year after 2009.
       (2) Exceptions.--Advance appropriations may be provided--
       (A) for fiscal years 2009 and 2010 for programs, projects, 
     activities, or accounts identified in the joint explanatory 
     statement of managers accompanying this resolution under the 
     heading ``Accounts Identified for Advance Appropriations'' in 
     an aggregate amount not to exceed $25,158,000,000 in new 
     budget authority in each year; and
       (B) for the Corporation for Public Broadcasting.
       (3) Supermajority waiver and appeal.--
       (A) Waiver.--In the Senate, paragraph (1) may be waived or 
     suspended only by an affirmative vote of three-fifths of the 
     Members, duly chosen and sworn.
       (B) Appeal.--An affirmative vote of three-fifths of the 
     Members of the Senate, duly chosen and sworn, shall be 
     required to sustain an appeal of the ruling of the Chair on a 
     point of order raised under paragraph (1).
       (4) Form of point of order.--A point of order under 
     paragraph (1) may be raised by a

[[Page H5076]]

     Senator as provided in section 313(e) of the Congressional 
     Budget Act of 1974.
       (5) Conference reports.--When the Senate is considering a 
     conference report on, or an amendment between the Houses in 
     relation to, a bill, upon a point of order being made by any 
     Senator pursuant to this subsection, and such point of order 
     being sustained, such material contained in such conference 
     report shall be deemed stricken, and the Senate shall proceed 
     to consider the question of whether the Senate shall recede 
     from its amendment and concur with a further amendment, or 
     concur in the House amendment with a further amendment, as 
     the case may be, which further amendment shall consist of 
     only that portion of the conference report or House 
     amendment, as the case may be, not so stricken. Any such 
     motion in the Senate shall be debatable. In any case in which 
     such point of order is sustained against a conference report 
     (or Senate amendment derived from such conference report by 
     operation of this subsection), no further amendment shall be 
     in order.
       (6) Repeal.--In the Senate, section 401 of H. Con. Res. 95 
     (109th Congress), the concurrent resolution on the budget for 
     fiscal year 2006, shall no longer apply.
       (b) House.--
       (1) In general.--In the House, except as provided in 
     paragraph (2), a bill or joint resolution making a general 
     appropriation or continuing appropriation, or an amendment 
     thereto may not provide for advance appropriations.
       (2) Advance appropriation.--In the House, an advance 
     appropriation may be provided for fiscal year 2009 or 2010 
     for programs, projects, activities, or accounts identified in 
     the joint explanatory statement of managers accompanying this 
     resolution under the heading ``Accounts Identified for 
     Advance Appropriations'' in an aggregate amount not to exceed 
     $25,558,000,000 in new budget authority.
       (3) Definition.--In this subsection, the term ``advance 
     appropriation'' means any new discretionary budget authority 
     provided in a bill or joint resolution making general 
     appropriations or any new discretionary budget authority 
     provided in a bill or joint resolution continuing 
     appropriations for fiscal year 2008 that first becomes 
     available for any fiscal year after 2008.

     SEC. 207. DISCRETIONARY SPENDING LIMITS, PROGRAM INTEGRITY 
                   INITIATIVES, AND OTHER ADJUSTMENTS.

       (a) Senate Point of Order.--
       (1) In general.--Except as otherwise provided in this 
     section, it shall not be in order in the Senate to consider 
     any bill or joint resolution (or amendment, motion, or 
     conference report on that bill or joint resolution) that 
     would cause the discretionary spending limits in this section 
     to be exceeded.
       (2) Supermajority waiver and appeals.--
       (A) Waiver.--This subsection may be waived or suspended in 
     the Senate only by the affirmative vote of three-fifths of 
     the Members, duly chosen and sworn.
       (B) Appeals.--Appeals in the Senate from the decisions of 
     the Chair relating to any provision of this subsection shall 
     be limited to 1 hour, to be equally divided between, and 
     controlled by, the appellant and the manager of the bill or 
     joint resolution. An affirmative vote of three-fifths of the 
     Members of the Senate, duly chosen and sworn, shall be 
     required to sustain an appeal of the ruling of the Chair on a 
     point of order raised under this subsection.
       (b) Senate Discretionary Spending Limits.--In the Senate 
     and as used in this section, the term ``discretionary 
     spending limit'' means--
       (1) for fiscal year 2007, $950,504,000,000 in new budget 
     authority and $1,029,465,000,000 in outlays; and
       (2) for fiscal year 2008, $953,052,000,000 in new budget 
     authority and $1,028,397,000,000 in outlays;
     as adjusted in conformance with the adjustment procedures in 
     subsection (c).
       (c) Adjustments in the Senate.--
       (1) In general.--After the reporting of a bill or joint 
     resolution relating to any matter described in paragraph (2), 
     or the offering of an amendment thereto or the submission of 
     a conference report thereon--
       (A) the Chairman of the Senate Committee on the Budget may 
     adjust the discretionary spending limits, budgetary 
     aggregates, and allocations pursuant to section 302(a) of the 
     Congressional Budget Act of 1974, by the amount of new budget 
     authority in that measure for that purpose and the outlays 
     flowing therefrom; and
       (B) following any adjustment under subparagraph (A), the 
     Senate Committee on Appropriations may report appropriately 
     revised suballocations pursuant to section 302(b) of the 
     Congressional Budget Act of 1974 to carry out this 
     subsection.
       (2) Matters described.--Matters referred to in paragraph 
     (1) are as follows:
       (A) Continuing disability reviews and ssi 
     redeterminations.--If a bill or joint resolution is reported 
     making appropriations for fiscal year 2008 that appropriates 
     $264,000,000 for continuing disability reviews and 
     Supplemental Security Income redeterminations for the Social 
     Security Administration, and provides an additional 
     appropriation of up to $213,000,000 for continuing disability 
     reviews and Supplemental Security Income redeterminations for 
     the Social Security Administration, then the discretionary 
     spending limits, allocation to the Senate Committee on 
     Appropriations, and aggregates may be adjusted by the amounts 
     provided in such legislation for that purpose, but not to 
     exceed $213,000,000 in budget authority and outlays flowing 
     therefrom for fiscal year 2008.
       (B) Internal revenue service tax enforcement.--If a bill or 
     joint resolution is reported making appropriations for fiscal 
     year 2008 that appropriates $6,822,000,000 for the Internal 
     Revenue Service for enhanced tax enforcement to address the 
     Federal tax gap (taxes owed but not paid) and provides an 
     additional appropriation of up to $406,000,000 for the 
     Internal Revenue Service for enhanced tax enforcement to 
     address the Federal tax gap, then the discretionary spending 
     limits, allocation to the Senate Committee on Appropriations, 
     and aggregates may be adjusted by the amounts provided in 
     such legislation for that purpose, but not to exceed 
     $406,000,000 in budget authority and outlays flowing 
     therefrom for fiscal year 2008.
       (C) Health care fraud and abuse control.--If a bill or 
     joint resolution is reported making appropriations for fiscal 
     year 2008 that appropriates up to $383,000,000 to the Health 
     Care Fraud and Abuse Control program at the Department of 
     Health and Human Services, then the discretionary spending 
     limits, allocation to the Senate Committee on Appropriations, 
     and aggregates may be adjusted by the amounts provided in 
     such legislation for that purpose, but not to exceed 
     $383,000,000 in budget authority and outlays flowing 
     therefrom for fiscal year 2008.
       (D) Unemployment insurance improper payment reviews.--If a 
     bill or joint resolution is reported making appropriations 
     for fiscal year 2008 that appropriates $10,000,000 for in-
     person reemployment and eligibility assessments and 
     unemployment insurance improper payment reviews, and provides 
     an additional appropriation of up to $40,000,000 for in-
     person reemployment and eligibility assessments and 
     unemployment insurance improper payment reviews, then the 
     discretionary spending limits, allocation to the Senate 
     Committee on Appropriations, and aggregates may be adjusted 
     by the amounts provided in such legislation for that purpose, 
     but not to exceed $40,000,000 in budget authority and outlays 
     flowing therefrom for fiscal year 2008.
       (E) Costs of overseas deployments and related activities.--
     The Chairman of the Senate Committee on the Budget may adjust 
     the discretionary spending limits, allocation to the Senate 
     Committee on Appropriations, and aggregates for one or more 
     bills, joint resolutions, motions, amendments, or conference 
     reports making appropriations for fiscal year 2008 for 
     overseas deployments and related activities, by the amounts 
     provided in such legislation for that purpose (and so 
     designated pursuant to this subparagraph) up to the amounts 
     of budget authority specified in Section 103(21) for fiscal 
     year 2008 and the new outlays flowing therefrom.
       (d) House.--
       (1) Program integrity initiatives and other adjustments.--
       (A) Continuing disability reviews and supplemental security 
     income redeterminations.--If a bill or joint resolution is 
     reported making appropriations for fiscal year 2008 that 
     appropriates $264,000,000 for continuing disability reviews 
     and Supplemental Security Income redeterminations for the 
     Social Security Administration, and provides an additional 
     appropriation of up to $213,000,000 and the amount is 
     designated for continuing disability reviews and Supplemental 
     Security Income redeterminations for the Social Security 
     Administration, then the allocation to the Committee on 
     Appropriations of the House of Representatives shall be 
     increased by the amount of the additional budget authority 
     and outlays flowing from that budget authority for fiscal 
     year 2008.
       (B) Internal revenue service tax compliance.--If a bill or 
     joint resolution is reported making appropriations for fiscal 
     year 2008 that appropriates $6,822,000,000 to the Internal 
     Revenue Service and the amount is designated to improve 
     compliance with the provisions of the Internal Revenue Code 
     of 1986 and provides an additional appropriation of up to 
     $406,000,000, and the amount is designated to improve 
     compliance with the provisions of the Internal Revenue Code 
     of 1986, then the allocation to the Committee on 
     Appropriations of the House of Representatives shall be 
     increased by the amount of the additional budget authority 
     and outlays flowing from that budget authority for fiscal 
     year 2008.
       (C) Health care fraud and abuse control program.--If a bill 
     or joint resolution is reported making appropriations for 
     fiscal year 2008 that appropriates up to $383,000,000 and the 
     amount is designated to the Health Care Fraud and Abuse 
     Control program at the Department of Health and Human 
     Services, then the allocation to the Committee on 
     Appropriations of the House of Representatives shall be 
     increased by the amount of additional budget authority and 
     outlays flowing from that budget authority for fiscal year 
     2008.
       (D) Unemployment insurance improper payment reviews.--If a 
     bill or joint resolution is reported making appropriations 
     for fiscal year 2008 that appropriates $10,000,000 for in-
     person reemployment and eligibility assessments and 
     unemployment insurance improper payment reviews, and provides 
     an additional appropriation of up to $40,000,000 for in-
     person reemployment and eligibility assessments and 
     unemployment insurance improper payment reviews, then the 
     allocation to the Committee on Appropriations and aggregates 
     may be adjusted by the amounts provided in such legislation 
     for that purpose, but not to exceed $40,000,000 in budget 
     authority and outlays flowing therefrom for fiscal year 2008.
       (E) Costs of overseas deployments and related activities.--
       (i) In the House, if one or more bills or joint resolutions 
     are reported making appropriations for fiscal year 2008 for 
     overseas deployments and related activities, (and such 
     amounts are so designated pursuant to this clause) then the 
     allocation to the House Committee on Appropriations and 
     aggregates may be adjusted by the amounts provided in such 
     legislation for that purpose up to the amounts of budget 
     authority specified in section 103 (21) for fiscal year 2008 
     and the new outlays flowing therefrom.
       (ii) In the House, if one or more bills or joint 
     resolutions are reported making appropriations

[[Page H5077]]

     for fiscal year 2008 for overseas deployments and related 
     activities (and such amounts are so designated pursuant to 
     this clause) above the amounts of budget authority and new 
     outlays specified in clause (i), then new budget authority, 
     outlays, or receipts resulting therefrom shall not count for 
     the purposes of titles III and IV of the Congressional Budget 
     Act of 1974.
       (2) Procedure for adjustments.--
       (A) In general.--After the reporting of a bill or joint 
     resolution, or an amendment offered or considered as adopted 
     thereto, or the submission of a conference report thereon, 
     the Chairman of the Committee on the Budget shall make 
     adjustments set forth in paragraph (1) for the incremental 
     new budget authority in that measure and the outlays flowing 
     from that budget authority, if that measure meets the 
     requirements set forth in paragraph (1), except that no 
     adjustment shall be made for provisions exempted for the 
     purposes of titles III and IV of the Congressional Budget Act 
     of 1974 under paragraph (1)(E)(ii).
       (B) Matters to be adjusted.--The adjustments referred to in 
     subparagraph (A) are to be made to--
       (i) the allocations made pursuant to the appropriate 
     concurrent resolution on the budget pursuant to section 
     302(a) of the Congressional Budget Act of 1974; and
       (ii) the budgetary aggregates as set forth in this 
     resolution.
       (e) Oversight of Government Performance.--In the House and 
     the Senate, all committees are directed to review programs 
     within their jurisdictions to root out waste, fraud, and 
     abuse in program spending, giving particular scrutiny to 
     issues raised by Government Accountability Office reports. 
     Based on these oversight efforts and committee performance 
     reviews of programs within their jurisdictions, committees 
     are directed to include recommendations for improved 
     governmental performance in their annual views and estimates 
     reports required under section 301(d) of the Congressional 
     Budget Act of 1974 to the Committees on the Budget.
       (f) Supplemental Appropriations for Fiscal Year 2007.--If 
     legislation making supplemental appropriations for fiscal 
     year 2007 is enacted, the Chairman of the appropriate 
     Committee on the Budget shall make the appropriate 
     adjustments in allocations, aggregates, discretionary 
     spending limits, and other levels of new budget authority and 
     outlays to reflect the difference between such measure and 
     the corresponding levels assumed in this resolution.

     SEC. 208. APPLICATION OF PREVIOUS ALLOCATIONS IN THE SENATE.

       Section 7035 of Public Law 109-234 shall no longer apply in 
     the Senate.

     SEC. 209. SENATE POINT OF ORDER AGAINST PROVISIONS OF 
                   APPROPRIATIONS LEGISLATION THAT CONSTITUTE 
                   CHANGES IN MANDATORY PROGRAMS WITH NET COSTS.

       (a) In General.--In the Senate, it shall not be in order to 
     consider any appropriations legislation, including any 
     amendment thereto, motion in relation thereto, or conference 
     report thereon, that includes any provision which constitutes 
     a change in a mandatory program producing net costs, as 
     defined in subsection (b), that would have been estimated as 
     affecting direct spending or receipts under section 252 of 
     the Balanced Budget and Emergency Deficit Control Act of 1985 
     (as in effect prior to September 30, 2002) were they included 
     in legislation other than appropriations legislation. A point 
     of order pursuant to this section shall be raised against 
     such provision or provisions as described in subsections (e) 
     and (f).
       (b) Changes in Mandatory Programs Producing Net Costs.--A 
     provision or provisions shall be subject to a point of order 
     pursuant to this section if--
       (1) the provision would increase budget authority in at 
     least 1 of the 9 fiscal years that follow the budget year and 
     over the period of the total of the budget year and the 9 
     fiscal years following the budget year;
       (2) the provision would increase net outlays over the 
     period of the total of the 9 fiscal years following the 
     budget year; and
       (3) the sum total of all changes in mandatory programs in 
     the legislation would increase net outlays as measured over 
     the period of the total of the 9 fiscal years following the 
     budget year.
       (c) Determination.--The determination of whether a 
     provision is subject to a point of order pursuant to this 
     section shall be made by the Committee on the Budget of the 
     Senate.
       (d) Supermajority Waiver and Appeal.--This section may be 
     waived or suspended in the Senate only by an affirmative vote 
     of three-fifths of the Members, duly chosen and sworn. An 
     affirmative vote of three-fifths of the Members of the 
     Senate, duly chosen and sworn, shall be required to sustain 
     an appeal of the ruling of the Chair on a point of order 
     raised under this section.
       (e) General Point of Order.--It shall be in order for a 
     Senator to raise a single point of order that several 
     provisions of a bill, resolution, amendment, motion, or 
     conference report violate this section. The Presiding Officer 
     may sustain the point of order as to some or all of the 
     provisions against which the Senator raised the point of 
     order. If the Presiding Officer so sustains the point of 
     order as to some of the provisions (including provisions of 
     an amendment, motion, or conference report) against which the 
     Senator raised the point of order, then only those provisions 
     (including provision of an amendment, motion, or conference 
     report) against which the Presiding Officer sustains the 
     point of order shall be deemed stricken pursuant to this 
     section. Before the Presiding Officer rules on such a point 
     of order, any Senator may move to waive such a point of order 
     as it applies to some or all of the provisions against which 
     the point of order was raised. Such a motion to waive is 
     amendable in accordance with rules and precedents of the 
     Senate. After the Presiding Officer rules on such a point of 
     order, any Senator may appeal the ruling of the Presiding 
     Officer on such a point of order as it applies to some or all 
     of the provisions on which the Presiding Officer ruled.
       (f) Form of the Point of Order.--When the Senate is 
     considering a conference report on, or an amendment between 
     the Houses in relation to, a bill, upon a point of order 
     being made by any Senator pursuant to this section, and such 
     point of order being sustained, such material contained in 
     such conference report or amendment shall be deemed stricken, 
     and the Senate shall proceed to consider the question of 
     whether the Senate shall recede from its amendment and concur 
     with a further amendment, or concur in the House amendment 
     with a further amendment, as the case may be, which further 
     amendment shall consist of only that portion of the 
     conference report or House amendment, as the case may be, not 
     so stricken. Any such motion shall be debatable. In any case 
     in which such point of order is sustained against a 
     conference report (or Senate amendment derived from such 
     conference report by operation of this subsection), no 
     further amendment shall be in order.
       (g) Effectiveness.--This section shall not apply to--
       (1) legislation making supplemental appropriations for 
     fiscal year 2007; and
       (2) any provision constituting a change in a mandatory 
     program in appropriations legislation if such provision has 
     been enacted in each of the 3 fiscal years prior to the 
     budget year.

     SEC. 210. COMPLIANCE WITH SECTION 13301 OF THE BUDGET 
                   ENFORCEMENT ACT OF 1990.

       (a) In General.--In the House and the Senate, 
     notwithstanding section 302(a)(1) of the Congressional Budget 
     Act of 1974 and section 13301 of the Budget Enforcement Act 
     of 1990, the joint explanatory statement accompanying the 
     conference report on any concurrent resolution on the budget 
     shall include in its allocation under section 302(a) of the 
     Congressional Budget Act of 1974 to the Committee on 
     Appropriations amounts for the discretionary administrative 
     expenses of the Social Security Administration.
       (b) Special Rule.--In the House, for purposes of applying 
     section 302(f) of the Congressional Budget Act of 1974, 
     estimates of the level of total new budget authority and 
     total outlays provided by a measure shall include any 
     discretionary amounts provided for the Social Security 
     Administration.

     SEC. 211. APPLICATION AND EFFECT OF CHANGES IN ALLOCATIONS 
                   AND AGGREGATES.

       (a) Application.--Any adjustments of allocations and 
     aggregates made pursuant to this resolution shall--
       (1) apply while that measure is under consideration;
       (2) take effect upon the enactment of that measure; and
       (3) be published in the Congressional Record as soon as 
     practicable.
       (b) Effect of Changed Allocations and Aggregates.--Revised 
     allocations and aggregates resulting from these adjustments 
     shall be considered for the purposes of the Congressional 
     Budget Act of 1974 as allocations and aggregates contained in 
     this resolution.
       (c) Budget Committee Determinations.--For purposes of this 
     resolution the levels of new budget authority, outlays, 
     direct spending, new entitlement authority, revenues, 
     deficits, and surpluses for a fiscal year or period of fiscal 
     years shall be determined on the basis of estimates made by 
     the appropriate Committee on the Budget.

     SEC. 212. ADJUSTMENTS TO REFLECT CHANGES IN CONCEPTS AND 
                   DEFINITIONS.

       Upon the enactment of a bill or joint resolution providing 
     for a change in concepts or definitions, the Chairman of the 
     appropriate Committee on the Budget may make adjustments to 
     the levels and allocations in this resolution in accordance 
     with section 251(b) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985 (as in effect prior to September 
     30, 2002).

     SEC. 213. EXERCISE OF RULEMAKING POWERS.

       Congress adopts the provisions of this title--
       (1) as an exercise of the rulemaking power of the Senate 
     and House of Representatives, respectively, and as such they 
     shall be considered as part of the rules of each House or of 
     that House to which they specifically apply, and such rules 
     shall supersede other rules only to the extent that they are 
     inconsistent with such other rules; and
       (2) with full recognition of the constitutional right of 
     either the Senate or House of Representatives to change those 
     rules (insofar as they relate to that House) at any time, in 
     the same manner, and to the same extent as is the case of any 
     other rule of the Senate or House of Representatives.

                        TITLE III--RESERVE FUNDS

     SEC. 301. DEFICIT-NEUTRAL RESERVE FUND FOR SCHIP LEGISLATION.

       (a) Senate.--
       (1) Priority.--The Senate establishes the following 
     priorities and makes the following findings:
       (A) The Senate shall make the enactment of legislation to 
     reauthorize the State Children's Health Insurance Program 
     (SCHIP) a top priority for the remainder of fiscal year 2007, 
     during the first session of the 110th Congress.
       (B) Extending health care coverage to the Nation's 
     vulnerable uninsured children is an urgent priority for the 
     Senate.
       (C) SCHIP has proven itself a successful program for 
     covering previously uninsured children.
       (D) More than 6 million children are enrolled in this 
     landmark program, which has enjoyed broad bipartisan support 
     in Congress, among

[[Page H5078]]

     our Nation's governors, and within state and local 
     governments.
       (E) SCHIP reduces the percentage of children with unmet 
     health care needs.
       (F) Since SCHIP was created, enormous progress has been 
     made in reducing disparities in children's coverage rates.
       (G) Uninsured children who gain coverage through SCHIP 
     receive more preventive care and their parents report better 
     access to providers and improved communications with their 
     children's doctors.
       (H) Congress has a responsibility to reauthorize SCHIP 
     before the expiration of its current authorization.
       (2) Reserve fund.--In the Senate, the Chairman of the 
     Senate Committee on the Budget may revise the allocations, 
     aggregates, and other appropriate levels in this resolution 
     for a bill, joint resolution, amendment, motion, or 
     conference report that provides up to $50,000,000,000 in 
     outlays over the period of the total of fiscal years 2007 
     through 2012 for reauthorization of the State Children's 
     Health Insurance Program (SCHIP), if such legislation 
     maintains coverage for those currently enrolled in SCHIP, 
     continues efforts to enroll uninsured children who are 
     already eligible for SCHIP or Medicaid but are not enrolled, 
     or supports States in their efforts to move forward in 
     covering more children, by the amounts provided in that 
     legislation for those purposes, provided that the outlay 
     adjustment shall not exceed $50,000,000,000 in outlays over 
     the period of the total of fiscal years 2007 through 2012, 
     and provided that such legislation would not increase the 
     deficit over either the period of the total of fiscal years 
     2007 through 2012 or the period of the total of fiscal years 
     2007 through 2017.
       (b) House Reserve Fund for the State Children's Health 
     Insurance Program.--The Chairman of the House Committee on 
     the Budget may revise the allocations of a committee or 
     committees, aggregates, and other appropriate levels for 
     bills, joint resolutions, amendments, or conference reports, 
     which contains matter within the jurisdiction of the 
     Committee on Energy and Commerce that expands coverage and 
     improves children's health through the State Children's 
     Health Insurance Program (SCHIP) under title XXI of the 
     Social Security Act and the program under title XIX of such 
     Act (commonly known as Medicaid) and that increases new 
     budget authority that will result in not more than 
     $50,000,000,000 in outlays in fiscal years 2007 through 2012, 
     and others which contain offsets so designated for the 
     purpose of this section within the jurisdiction of another 
     committee or committees, if the combined changes would not 
     increase the deficit or decrease the surplus for the total 
     over the period of fiscal years 2007 through 2012 or the 
     period of fiscal years 2007 through 2017.

     SEC. 302. DEFICIT-NEUTRAL RESERVE FUND FOR VETERANS AND 
                   WOUNDED SERVICEMEMBERS.

       The Chairman of the appropriate Committee on the Budget may 
     revise the allocations of a committee or committees, 
     aggregates, and other appropriate levels in this resolution 
     for one or more bills, joint resolutions, amendments, 
     motions, or conference reports which--
       (1) enhance medical care and disability benefits for 
     wounded or disabled military personnel or veterans, which may 
     include low-vision and blinded veterans;
       (2) expand eligibility for Combat-Related Special 
     Compensation to permit additional disabled retirees to 
     receive both disability compensation and retired pay;
       (3) eliminate the offset between Survivor Benefit Plan 
     annuities and veterans' dependency and indemnity 
     compensation;
       (4) improve disability evaluations of military personnel or 
     veterans to expedite the claims process;
       (5) enhance educational benefits of veterans; or
       (6) provide for or increase benefits to Filipino veterans 
     of World War II, their survivors and dependents;

     by the amounts provided in such legislation for those 
     purposes (or, in the House, that contain offsets so 
     designated for those purposes), provided in the Senate that 
     such legislation would not increase the deficit over either 
     the period of the total of fiscal years 2007 through 2012 or 
     the period of the total of fiscal years 2007 through 2017, 
     and provided further in the House that such legislation would 
     not increase the deficit or decrease the surplus for the 
     total over the period of fiscal years 2007 through 2012 or 
     the period of fiscal years 2007 through 2017.

     SEC. 303. DEFICIT-NEUTRAL RESERVE FUND FOR TAX RELIEF.

       (a) Senate.--In the Senate, the Chairman of the Senate 
     Committee on the Budget may revise the aggregates, 
     allocations, and other appropriate levels in this resolution 
     for one or more bills, joint resolutions, amendments, 
     motions, or conference reports that would provide tax relief, 
     including extensions of expiring tax relief and refundable 
     tax relief, by the amounts provided in that legislation for 
     those purposes, provided that such legislation would not 
     increase the deficit over either the period of the total of 
     fiscal years 2007 through 2012 or the period of the total of 
     fiscal years 2007 through 2017.
       (b) House.--
       (1) Reserve fund for reform of the alternative minimum 
     tax.--The Chairman of the House Committee on the Budget may 
     revise the allocations of a committee or committees, 
     aggregates, and other appropriate levels in this resolution 
     for one or more bills, joint resolutions, amendments, 
     motions, or conference reports that provide for reform of the 
     Internal Revenue Code of 1986 by reducing the tax burden of 
     the alternative minimum tax on middle-income families by the 
     amounts provided in such legislation for that purpose or that 
     contain offsets so designated for that purpose, provided that 
     such legislation would not increase the deficit or decrease 
     the surplus for the total over the period of fiscal years 
     2007 through 2012 or the period of fiscal years 2007 through 
     2017.
       (2) Reserve fund to provide for middle-income tax relief 
     and economic equity.--The Chairman of the House Committee on 
     the Budget may revise the allocations of a committee or 
     committees, aggregates, and other appropriate levels in this 
     resolution for one or more bills, joint resolutions, 
     amendments, motions, or conference reports that provide for 
     tax relief for middle-income families and taxpayers and 
     enhanced economic equity, such as extension of the child tax 
     credit, extension of marriage penalty relief, extension of 
     the 10 percent individual income tax bracket, modification of 
     the Alternative Minimum Tax, elimination of estate taxes on 
     all but a minute fraction of estates by reforming and 
     substantially increasing the unified credit, extension of the 
     research and experimentation tax credit, extension of the 
     deduction for State and local sales taxes, and a tax credit 
     for school construction bonds, by the amounts provided in 
     such legislation for those purposes or that contain offsets 
     so designated for those purposes, provided that such 
     legislation would not increase the deficit or decrease the 
     surplus for the total over the period of fiscal years 2007 
     through 2012 or the period of fiscal years 2007 through 2017.

     SEC. 304. DEFICIT-NEUTRAL RESERVE FUND FOR MEDICARE 
                   IMPROVEMENTS.

       (a) House.--The Chairman of the House Committee on the 
     Budget may revise the allocations of a committee or 
     committees, aggregates, and other appropriate levels in this 
     resolution for one or more bills, joint resolutions, 
     amendments, motions, or conference reports that improve the 
     Medicare program for beneficiaries and protect access to 
     care, through measures such as increasing the reimbursement 
     rate for physicians while protecting beneficiaries from 
     associated premium increases and making improvements to the 
     prescription drug program under part D by the amounts 
     provided in such legislation for those purposes or that 
     contain offsets so designated for those purposes, provided 
     that such legislation would not increase the deficit or 
     decrease the surplus for the total over the period of fiscal 
     years 2007 through 2012 or the period of fiscal years 2007 
     through 2017.
       (b) Senate.--
       (1) Prescription drugs.--In the Senate, the Chairman of the 
     Senate Committee on the Budget may revise the aggregates, 
     allocations, and other appropriate levels in this resolution 
     for a bill, joint resolution, amendment, motion, or 
     conference report that repeals the prohibition in section 
     1860D-11(i)(1) of the Social Security Act (42 U.S.C. 1395w-
     111(i)(1)) while preserving access to prescription drugs and 
     price competition without requiring a particular formulary or 
     instituting a price structure for reimbursement of covered 
     Part D drugs, provided that such legislation would not 
     increase the deficit over either the period of the total 
     of fiscal years 2007 through 2012 or the period of the 
     total of fiscal years 2007 through 2017, and provided 
     further that any savings from the measure are to be used 
     either to improve the Medicare Part D benefit or for 
     deficit reduction.
       (2) Physician payments.--In the Senate, the Chairman of the 
     Senate Committee on the Budget may revise the aggregates, 
     allocations, and other appropriate levels in this resolution 
     for a bill, joint resolution, amendment, motion, or 
     conference report that increases the reimbursement rate for 
     physician services under section 1848(d) of the Social 
     Security Act and that includes financial incentives for 
     physicians to improve the quality and efficiency of items and 
     services furnished to Medicare beneficiaries through the use 
     of consensus-based quality measures, by the amounts provided 
     in such legislation for that purpose, provided that such 
     legislation would not increase the deficit over either the 
     period of the total of fiscal years 2007 through 2012 or the 
     period of the total of fiscal years 2007 through 2017.
       (3) Improvements to medicare part d.--In the Senate, the 
     Chairman of the Senate Committee on the Budget may revise the 
     aggregates, allocations, and other appropriate levels in this 
     resolution for a bill, joint resolution, amendment, motion, 
     or conference report that makes improvements to the 
     prescription drug benefit under Medicare Part D, by the 
     amounts provided in such legislation for that purpose up to 
     $5,000,000,000, provided that such legislation would not 
     increase the deficit over either the period of the total of 
     fiscal years 2007 through 2012 or the period of the total of 
     fiscal years 2007 through 2017.
       (4) Improving medicare hospital payments.--In the Senate, 
     the Chairman of the Senate Committee on the Budget may revise 
     the allocations, aggregates, and other appropriate levels in 
     this resolution for a bill, joint resolution, amendment, 
     motion, or conference report that--
       (A) includes provisions to reform the area wage index used 
     to adjust payments to hospitals under the Medicare hospital 
     inpatient prospective payment system under section 1886(d) of 
     the Social Security Act (42 U.S.C. 1395ww(d)); and
       (B) includes a transition to the reform described in 
     subparagraph (A);

     provided that such legislation would not increase the deficit 
     over either the period of the total of fiscal years 2007 
     through 2012 or the period of the total of fiscal years 2007 
     through 2017.
       (c) Senate and House Deficit-Neutral Reserve Fund To 
     Address Physician and Other Health Care Provider Shortages.--
     The Chairman of the appropriate Committee on the Budget may 
     revise the allocations of a committee or committees, 
     aggregates, and other appropriate levels in this resolution 
     for one or

[[Page H5079]]

     more bills, joint resolutions, amendments, motions, or 
     conference reports that encourage physicians to train in 
     primary care residencies and attract more physicians and 
     other health care providers to States that face a shortage of 
     health care providers by the amounts provided in such 
     legislation for those purposes (or, in the House, that 
     contain offsets so designated for those purposes), provided 
     in the Senate that such legislation would not increase the 
     deficit over either the period of the total of fiscal years 
     2007 through 2012 or the period of the total of fiscal years 
     2007 through 2017, and provided further in the House that 
     such legislation would not increase the deficit or decrease 
     the surplus for the total over the period of fiscal years 
     2007 through 2012 or the period of fiscal years 2007 through 
     2017.

     SEC. 305. DEFICIT NEUTRAL RESERVE FUNDS FOR HEALTH CARE 
                   QUALITY, EFFECTIVENESS, EFFICIENCY, AND 
                   TRANSPARENCY.

       (a) Health Information Technology.--
       (1) The Chairman of the appropriate Committee on the Budget 
     may revise the allocations of a committee or committees, 
     aggregates, and other appropriate levels in this resolution 
     for one or more bills, joint resolutions, amendments, 
     motions, or conference reports that provide incentives or 
     other support for adoption of modern information technology 
     to improve quality and protect privacy in health care, by the 
     amounts provided in such legislation for that purpose (or, in 
     the House, that contain offsets so designated for that 
     purpose), provided in the Senate that such legislation would 
     not increase the deficit over either the period of the total 
     of fiscal years 2007 through 2012 or the period of the total 
     of fiscal years 2007 through 2017, and provided further in 
     the House that such legislation would not increase the 
     deficit or decrease the surplus for the total over the period 
     of fiscal years 2007 through 2012 or the period of fiscal 
     years 2007 through 2017.
       (2) The Chairman of the appropriate Committee on the Budget 
     may revise the allocations of a committee or committees, 
     aggregates, and other appropriate levels in this resolution 
     for one or more bills, joint resolutions, amendments, 
     motions, or conference reports that provide incentives for 
     Medicare providers or suppliers to comply with, where 
     available and medically appropriate, clinical protocols 
     identified as best practices, by the amounts provided in such 
     legislation for that purpose (or, in the House, that contain 
     offsets so designated for that purpose), provided in the 
     Senate that such legislation would not increase the deficit 
     over either the period of the total of fiscal years 2007 
     through 2012 or the period of the total of fiscal years 2007 
     through 2017, and provided further in the House that such 
     legislation would not increase the deficit or decrease the 
     surplus for the total over the period of fiscal years 2007 
     through 2012 or the period of fiscal years 2007 through 2017.
       (b) Comparative Effectiveness Research.--The Chairman of 
     the appropriate Committee on the Budget may revise the 
     allocations of a committee or committees, aggregates, and 
     other appropriate levels in this resolution for one or more 
     bills, joint resolutions, amendments, motions, or conference 
     reports that establish a new Federal or public-private 
     initiative for comparative effectiveness research, by the 
     amounts provided in such legislation for that purpose (or, in 
     the House, that contain offsets so designated for that 
     purpose), provided in the Senate that such legislation would 
     not increase the deficit over either the period of the total 
     of fiscal years 2007 through 2012 or the period of the total 
     of fiscal years 2007 through 2017, and provided further in 
     the House that such legislation would not increase the 
     deficit or decrease the surplus for the total over the 
     period of fiscal years 2007 through 2012 or the period of 
     fiscal years 2007 through 2017.
       (c) Improving the Health Care System.--In the Senate, the 
     Chairman of the Senate Committee on the Budget may revise the 
     allocations, aggregates, and other levels in this resolution 
     for a bill, joint resolution, motion, amendment, or 
     conference report that--
       (1) creates a framework and parameters for the use of 
     Medicare data for the purpose of conducting research, public 
     reporting, and other activities to evaluate health care 
     safety, effectiveness, efficiency, quality, and resource 
     utilization in Federal programs and the private health care 
     system; and
       (2) includes provisions to protect beneficiary privacy and 
     to prevent disclosure of proprietary or trade secret 
     information with respect to the transfer and use of such 
     data;

     provided that such legislation would not increase the deficit 
     over either the period of the total of fiscal years 2007 
     through 2012 or the period of the total of fiscal years 2007 
     through 2017.

     SEC. 306. DEFICIT-NEUTRAL RESERVE FUND FOR HIGHER EDUCATION.

       (a) Senate.--In the Senate, the Chairman of the Senate 
     Committee on the Budget may revise the aggregates, 
     allocations, and other appropriate levels in this resolution 
     for one or more bills, joint resolutions, amendments, 
     motions, or conference reports that would make higher 
     education more accessible and more affordable, which may 
     include tax benefits, by the amounts provided in such 
     legislation for that purpose, provided that such legislation 
     would not increase the deficit over either the period of the 
     total of fiscal years 2007 through 2012 or the period of the 
     total of fiscal years 2007 through 2017.
       (b) House.--The Chairman of the House Committee on the 
     Budget may revise the allocations of a committee or 
     committees, aggregates, and other appropriate levels in this 
     resolution for one or more bills, joint resolutions, 
     amendments, motions, or conference reports that make college 
     more affordable through reforms to the Higher Education Act 
     of 1965 or other legislation by the amounts provided in such 
     legislation for that purpose or that contain offsets so 
     designated for that purpose, provided that such legislation 
     would not increase the deficit or decrease the surplus for 
     the total over the period of fiscal years 2007 through 2012 
     or the period of fiscal years 2007 through 2017.

     SEC. 307. DEFICIT-NEUTRAL RESERVE FUND FOR THE FARM BILL.

       (a) Senate.--The Chairman of the Senate Committee on the 
     Budget may revise the allocations, aggregates, and other 
     appropriate levels in this resolution for one or more bills, 
     joint resolutions, amendments, motions, or conference reports 
     that provide for the reauthorization of the programs of the 
     Food Security and Rural Investment Act of 2002 or prior Acts, 
     authorize similar or related programs, provide for revenue 
     changes, or any combination of the preceding purposes, by the 
     amounts provided in such legislation for those purposes up to 
     $20,000,000,000 over the period of the total of fiscal years 
     2007 through 2012, provided that such legislation would not 
     increase the deficit over either the period of the total of 
     fiscal years 2007 through 2012 or the period of the total of 
     fiscal years 2007 through 2017.
       (b) House.--The Chairman of the House Committee on the 
     Budget may revise the allocations of a committee or 
     committees, aggregates, and other appropriate levels in this 
     resolution for one or more bills, joint resolutions, 
     amendments, motions, or conference reports that provide for 
     the reauthorization of the programs of the Food Security and 
     Rural Investment Act of 2002 or prior Acts, authorize similar 
     or related programs, or both, by the amounts provided in such 
     legislation for those purposes or that contain offsets so 
     designated for those purposes up to $20,000,000,000 for the 
     total over the period of fiscal years 2007 through 2012, 
     provided that such legislation would not increase the deficit 
     or decrease the surplus for the total over the period of 
     fiscal years 2007 through 2012 or the period of fiscal years 
     2007 through 2017.

     SEC. 308. DEFICIT-NEUTRAL RESERVE FUND FOR ENERGY 
                   LEGISLATION.

       (a) Senate.--In the Senate, the Chairman of the Senate 
     Committee on the Budget may revise the allocations, 
     aggregates, and other appropriate levels and limits in this 
     resolution for one or more bills, joint resolutions, 
     amendments, motions, or conference reports that would reduce 
     our Nation's dependence on foreign sources of energy, expand 
     production and use of clean alternative fuels and alternative 
     fuel vehicles, promote renewable energy development, improve 
     electricity transmission, encourage responsible development 
     of domestic oil and natural gas resources, or reward 
     conservation and efficiency, by the amounts provided in that 
     legislation for those purposes, provided that such 
     legislation would not increase the deficit over either the 
     period of the total of fiscal years 2007 through 2012 or the 
     period of the total of fiscal years 2007 through 2017. The 
     legislation may include tax legislation such as a proposal to 
     extend energy tax incentives like the production tax credit 
     for electricity produced from renewable resources, the Clean 
     Renewable Energy Bond program, or provisions to encourage 
     energy efficient buildings, products, and power plants.
       (b) House.--
       (1) The Chairman of the House Committee on the Budget shall 
     revise the allocations of a committee or committees, 
     aggregates, and other appropriate levels in this resolution 
     for one or more bills, joint resolutions, amendments, 
     motions, or conference reports that fulfill the purposes of 
     section 301(a) of H.R. 6, the Clean Energy Act of 2007 by the 
     amounts provided in such legislation for those purposes or 
     that contain offsets so designated for those purposes, 
     provided that such legislation would not increase the deficit 
     or decrease the surplus for the total over the period of 
     fiscal years 2007 through 2012 or the period of fiscal years 
     2007 through 2017.
       (2) The Chairman of the House Committee on the Budget shall 
     revise the allocations provided for under section 302(a) of 
     the Congressional Budget Act of 1974 to the Committee on 
     Appropriations to the extent that any bills, joint 
     resolutions, amendments, motions, or conference reports 
     provide budget authority for purposes set forth in section 
     301(a) of H.R. 6 in excess of the amounts provided for those 
     purposes in fiscal year 2007. Any adjustments made under this 
     paragraph shall not include revenues attributable to changes 
     in the Internal Revenue Code of 1986 and shall not exceed 
     the receipts estimated by the Congressional Budget Office 
     that are attributable to H.R. 6 for the year in which the 
     adjustments are made.

     SEC. 309. DEFICIT-NEUTRAL RESERVE FUND FOR COUNTY PAYMENTS 
                   LEGISLATION.

       The Chairman of the appropriate Committee on the Budget may 
     revise the allocations of a committee or committees, 
     aggregates, and other appropriate levels and limits in this 
     resolution for one or more bills, joint resolutions, 
     amendments, motions, or conference reports that provide for 
     the reauthorization of the Secure Rural Schools and Community 
     Self-Determination Act of 2000 (Public Law 106-393), make 
     changes to the Payments in Lieu of Taxes Act of 1976 (Public 
     Law 94-565), or both, by the amounts provided by that 
     legislation for those purposes (or, in the House, that 
     contain offsets so designated for those purposes), provided 
     in the Senate that such legislation would not increase the 
     deficit over either the period of the total of fiscal years 
     2007 through 2012 or the period of the total of fiscal years 
     2007 through 2017, and provided further in the House that 
     such legislation would not increase the deficit or decrease 
     the surplus for the total over the period of fiscal years 
     2007 through 2012 or the period of fiscal years 2007 through 
     2017.

[[Page H5080]]

     SEC. 310. DEFICIT-NEUTRAL RESERVE FUND FOR TERRORISM RISK 
                   INSURANCE REAUTHORIZATION.

       The Chairman of the appropriate Committee on the Budget may 
     revise the allocations of a committee or committees, 
     aggregates, and other levels in this resolution for one or 
     more bills, joint resolutions, amendments, motions, or 
     conference reports that provide for a continued Federal role 
     in ensuring the availability of terrorism insurance after the 
     expiration of the Terrorism Risk Insurance Extension Act, by 
     the amounts provided in such legislation for that purpose 
     (or, in the House, that contain offsets so designated for 
     that purpose), provided in the Senate that such legislation 
     would not increase the deficit over either the period of the 
     total of fiscal years 2007 through 2012 or the period of the 
     total of fiscal years 2007 through 2017, and provided further 
     in the House that such legislation would not increase the 
     deficit or decrease the surplus for the total over the period 
     of fiscal years 2007 through 2012 or the period of fiscal 
     years 2007 through 2017.

     SEC. 311. DEFICIT-NEUTRAL RESERVE FUND FOR AFFORDABLE 
                   HOUSING.

       The Chairman of the appropriate Committee on the Budget may 
     revise the allocations of a committee or committees, 
     aggregates, and other levels in this resolution for one or 
     more bills, joint resolutions, amendments, motions, or 
     conference reports that would establish an affordable housing 
     fund financed by the housing government sponsored 
     enterprises, by the amounts provided in such legislation for 
     that purpose (or, in the House, that contain offsets so 
     designated for that purpose), provided in the Senate that 
     such legislation would not increase the deficit over either 
     the period of the total of fiscal years 2007 through 2012 or 
     the period of the total of fiscal years 2007 through 2017, 
     and provided further in the House that such legislation would 
     not increase the deficit or decrease the surplus for the 
     total over the period of fiscal years 2007 through 2012 or 
     the period of fiscal years 2007 through 2017.

     SEC. 312. DEFICIT-NEUTRAL RESERVE FUND FOR RECEIPTS FROM 
                   BONNEVILLE POWER ADMINISTRATION.

       The Chairman of the appropriate Committee on the Budget may 
     adjust the allocations of a committee or committees, 
     aggregates, and other appropriate levels and limits in this 
     resolution for one or more bills, joint resolutions, 
     amendments, motions, or conference reports that prohibit the 
     Bonneville Power Administration from making early payments on 
     its Federal Bond Debt to the United States Treasury, by the 
     amounts provided by that legislation for that purpose (or, in 
     the House, that contain offsets so designated for that 
     purpose), provided in the Senate that such legislation would 
     not increase the deficit over either the period of the total 
     of fiscal years 2007 through 2012 or the period of the total 
     of fiscal years 2007 through 2017, and provided further in 
     the House that such legislation would not increase the 
     deficit or decrease the surplus for the total over the period 
     of fiscal years 2007 through 2012 or the period of fiscal 
     years 2007 through 2017.

     SEC. 313. DEFICIT-NEUTRAL RESERVE FUND FOR INDIAN CLAIMS 
                   SETTLEMENT.

       The Chairman of the appropriate Committee on the Budget may 
     revise the allocations of a committee or committees, 
     aggregates, and other appropriate levels in this resolution 
     for one or more bills, joint resolutions, amendments, 
     motions, or conference reports that--
       (1) create an Indian claims settlement fund for trust 
     accounting and management deficiencies related to Individual 
     Indian Moneys and assets; and
       (2) extinguish all claims arising before the date of 
     enactment for losses resulting from accounting errors, 
     mismanagement of assets, or interest owed in connection with 
     Individual Indian Moneys accounts;

     by the amounts provided in such legislation for those 
     purposes up to $8,000,000,000 (or, in the House, that contain 
     offsets so designated for those purposes), provided in the 
     Senate that such legislation would not increase the deficit 
     over either the period of the total of fiscal years 2007 
     through 2012 or the period of the total of fiscal years 2007 
     through 2017, and provided further in the House that such 
     legislation would not increase the deficit or decrease the 
     surplus for the total over the period of fiscal years 2007 
     through 2012 or the period of fiscal years 2007 through 2017.

     SEC. 314. DEFICIT-NEUTRAL RESERVE FUND FOR IMPROVEMENTS IN 
                   HEALTH.

       (a) Health Insurance Coverage.--The Chairman of the 
     appropriate Committee on the Budget may revise the 
     allocations of a committee or committees, aggregates, and 
     other appropriate levels in this resolution for one or more 
     bills, joint resolutions, amendments, motions, or conference 
     reports that make health insurance coverage more affordable 
     or available to small businesses and their employees, through 
     pooling arrangements that provide appropriate consumer 
     protections, by the amounts provided in such legislation for 
     that purpose (or, in the House, that contain offsets so 
     designated for that purpose), provided in the Senate that 
     such legislation would not increase the deficit over either 
     the period of the total of fiscal years 2007 through 2012 or 
     the period of the total of fiscal years 2007 through 2017, 
     and provided further in the House that such legislation would 
     not increase the deficit or decrease the surplus for the 
     total over the period of fiscal years 2007 through 2012 or 
     the period of fiscal years 2007 through 2017.
       (b) Health Coverage.--If a SCHIP reauthorization bill is 
     enacted, then the Chairman of the appropriate Committee on 
     the Budget may revise the allocations of a committee or 
     committees, aggregates, and other appropriate levels in this 
     resolution for one or more bills, joint resolutions, 
     amendments, motions, or conference reports to improve health 
     care, and provide quality health insurance for the uninsured 
     and underinsured, and protect individuals with current health 
     coverage, by the amounts provided in that legislation for 
     that purpose (or, in the House, that contain offsets so 
     designated for that purpose), provided in the Senate that 
     such legislation would not increase the deficit over either 
     the period of the total of fiscal years 2007 through 2012 or 
     the period of the total of fiscal years 2007 through 2017, 
     and provided further in the House that such legislation would 
     not increase the deficit or decrease the surplus for the 
     total over the period of fiscal years 2007 through 2012 or 
     the period of fiscal years 2007 through 2017.
       (c) Long-Term Care.--The Chairman of the appropriate 
     Committee on the Budget may revise the allocations of a 
     committee or committees, aggregates, and other levels in this 
     resolution for one or more bills, joint resolutions, 
     amendments, motions, or conference reports that would improve 
     long-term care, enhance the safety and dignity of patients, 
     encourage appropriate use of institutional and community-
     based care, promote quality care, or provide for the cost-
     effective use of public resources, by the amounts provided in 
     such legislation for that purpose (or, in the House, that 
     contain offsets so designated for that purpose), provided in 
     the Senate that such legislation would not increase the 
     deficit over either the period of the total of fiscal years 
     2007 through 2012 or the period of the total of fiscal years 
     2007 through 2017, and provided further in the House that 
     such legislation would not increase the deficit or decrease 
     the surplus for the total over the period of fiscal years 
     2007 through 2012 or the period of fiscal years 2007 through 
     2017.
       (d) Mental Health Parity.--The Chairman of the appropriate 
     Committee on the Budget may revise the allocations of a 
     committee or committees, aggregates, and other appropriate 
     levels in this resolution for one or more bills, joint 
     resolutions, amendments, motions, or conference reports that 
     would provide parity between health insurance coverage of 
     mental health benefits and benefits for medical and surgical 
     services, including parity in public programs, by the amounts 
     provided in such legislation for that purpose (or, in the 
     House, that contain offsets so designated for that purpose), 
     provided in the Senate that such legislation would not 
     increase the deficit over either the period of the total of 
     fiscal years 2007 through 2012 or the period of the total of 
     fiscal years 2007 through 2017, and provided further in the 
     House that such legislation would not increase the deficit or 
     decrease the surplus for the total over the period of fiscal 
     years 2007 through 2012 or the period of fiscal years 2007 
     through 2017.

     SEC. 315. DEFICIT-NEUTRAL RESERVE FUND FOR CHILD CARE.

       The Chairman of the appropriate Committee on the Budget may 
     revise the allocations of a committee or committees, 
     aggregates, and other appropriate levels in this resolution 
     for one or more bills, joint resolutions, amendments, 
     motions, or conference reports that provide up to 
     $5,000,000,000 for the child care entitlement to States, by 
     the amounts provided by such legislation for that purpose 
     (or, in the House, that contain offsets so designated for 
     that purpose), provided in the Senate that such legislation 
     would not increase the deficit over either the period of the 
     total of fiscal years 2007 through 2012 or the period of the 
     total of fiscal years 2007 through 2017, and provided further 
     in the House that such legislation would not increase the 
     deficit or decrease the surplus for the total over the period 
     of fiscal years 2007 through 2012 or the period of fiscal 
     years 2007 through 2017.

     SEC. 316. DEFICIT-NEUTRAL RESERVE FUND FOR IMMIGRATION REFORM 
                   IN THE SENATE.

       The Chairman of the Senate Committee on the Budget may 
     revise the allocations of a committee or committees, 
     aggregates, and other levels in this resolution for one or 
     more bills, joint resolutions, amendments, motions, or 
     conference reports that provide for immigration reform by the 
     amounts provided in such legislation for those purposes, 
     provided that such legislation would not increase the deficit 
     over either the period of the total of fiscal years 2007 
     through 2012 or the period of the total of fiscal years 2007 
     through 2017.

     SEC. 317. DEFICIT-REDUCTION RESERVE FUND.

       (a) Reduction of Improper Payments.--The Chairman of the 
     appropriate Committee on the Budget may revise the 
     allocations of a committee or committees, aggregates, and 
     other appropriate levels and limits in this resolution upon 
     enactment of legislation that achieves savings by eliminating 
     or reducing improper payments made by agencies reporting 
     improper payments estimates under the Improper Payments 
     Information Act of 2002 and uses such savings to reduce the 
     deficit (or, in the House, that contain offsets so designated 
     for that purpose), provided in the Senate that such 
     legislation would not increase the deficit over either the 
     period of the total of fiscal years 2007 through 2012 or the 
     period of the total of fiscal years 2007 through 2017, and 
     provided further in the House that such legislation would not 
     increase the deficit or decrease the surplus for the total 
     over the period of fiscal years 2007 through 2012 or the 
     period of fiscal years 2007 through 2017.
       (b) Increased Use of Recovery Audits.--The Chairman of the 
     appropriate Committee on the Budget may revise the 
     allocations of a committee or committees, aggregates, and 
     other appropriate levels and limits in this resolution upon 
     enactment of legislation that achieves savings by requiring 
     that agencies increase their use of the recovery audits 
     authorized by the Erroneous Payments Recovery Act of 2001 
     (section 831 of the National Defense Authorization Act for 
     fiscal year 2002) and uses such savings to reduce the deficit 
     (or, in the House, that contain

[[Page H5081]]

     offsets so designated for that purpose), provided in the 
     Senate that such legislation would not increase the deficit 
     over either the period of the total of fiscal years 2007 
     through 2012 or the period of the total of fiscal years 2007 
     through 2017, and provided further in the House that such 
     legislation would not increase the deficit or decrease the 
     surplus for the total over the period of fiscal years 2007 
     through 2012 or the period of fiscal years 2007 through 2017.

     SEC. 318. DEFICIT-NEUTRAL RESERVE FUND FOR MANUFACTURING 
                   INITIATIVES IN THE SENATE.

       In the Senate, the Chairman of the Senate Committee on the 
     Budget may revise the allocations, aggregates, and other 
     appropriate levels in this resolution for one or more bills, 
     joint resolutions, amendments, motions, or conference 
     reports, including tax legislation, that would revitalize the 
     United States domestic manufacturing sector by increasing 
     Federal research and development, by expanding the scope and 
     effectiveness of manufacturing programs across the Federal 
     government, by increasing support for development of 
     alternative fuels and leap-ahead automotive and energy 
     technologies, and by establishing tax incentives to encourage 
     the continued production in the United States of advanced 
     technologies and the infrastructure to support such 
     technologies, by the amounts provided in that legislation for 
     those purposes, provided that such legislation would not 
     increase the deficit over either the period of the total of 
     fiscal years 2007 through 2012 or the period of the total of 
     fiscal years 2007 through 2017.

     SEC. 319. DEFICIT-NEUTRAL RESERVE FUND FOR THE FOOD AND DRUG 
                   ADMINISTRATION IN THE SENATE.

       (a) Regulation.--In the Senate, the Chairman of the Senate 
     Committee on the Budget may revise the allocations, 
     aggregates, and other appropriate levels in this resolution 
     for a bill, joint resolution, motion, amendment, or 
     conference report that authorizes the Food and Drug 
     Administration to regulate products and assess user fees on 
     manufacturers and importers of those products to cover the 
     cost of the Food and Drug Administration's regulatory 
     activities, by the amounts provided in that legislation for 
     those purposes, provided that such legislation would not 
     increase the deficit over either the period of the total of 
     fiscal years 2007 through 2012 or the period of the total of 
     fiscal years 2007 through 2017.
       (b) Drug Importation.--In the Senate, the Chairman of the 
     Senate Committee on the Budget may revise the aggregates, 
     allocations, and other levels in this resolution for a bill, 
     joint resolution, motion, amendment, or conference report 
     that permits the safe importation of prescription drugs 
     approved by the Food and Drug Administration from a specified 
     list of countries, by the amounts provided in such 
     legislation for that purpose, provided that such legislation 
     would not increase the deficit over either the period of the 
     total of fiscal years 2007 through 2012 or the period of the 
     total of fiscal years 2007 through 2017.

     SEC. 320. DEFICIT-NEUTRAL RESERVE FUND FOR MEDICAID.

       (a) Delay of Rule.--The Chairman of the appropriate 
     Committee on the Budget may revise the allocations, 
     aggregates, and other appropriate levels in this resolution 
     for a bill, joint resolution, amendment, motion, or 
     conference report that provides for a delay in the 
     implementation of the proposed rule published on January 18, 
     2007, on pages 2236 through 2248 of volume 72, Federal 
     Register (relating to parts 433, 447, and 457 of title 42, 
     Code of Federal Regulations) or any other rule that would 
     affect the Medicaid program or SCHIP in a similar manner, or 
     place restrictions on coverage of or payment for graduate 
     medical education, rehabilitation services, or school-based 
     administration, transportation, or medical services under 
     title XIX of the Social Security Act by the amounts 
     provided in that legislation for that purpose (or, in the 
     House, that contain offsets so designated for that 
     purpose), provided in the Senate that such legislation 
     would not increase the deficit over either the total of 
     the period of fiscal years 2007 through 2012 or the total 
     of the period of fiscal years 2007 through 2017, and 
     provided further in the House that such legislation would 
     not increase the deficit or decrease the surplus for the 
     total over the period of fiscal years 2007 through 2012 or 
     the period of fiscal years 2007 through 2017.
       (b) Demonstration Project Regarding Medicaid Coverage of 
     Low-Income HIV-Infected Individuals.--The Chairman of the 
     appropriate Committee on the Budget may revise the 
     allocations, aggregates, and other appropriate levels in this 
     resolution for a bill, joint resolution, amendment, motion, 
     or conference report that provides for a demonstration 
     project under which a State may apply under section 1115 of 
     the Social Security Act (42 U.S.C. 1315) to provide medical 
     assistance under a State Medicaid program to HIV-infected 
     individuals who are not eligible for medical assistance under 
     such program under section 1902(a)(10)(A)(I) of the Social 
     Security Act (42 U.S.C. 1396a(a)(10)(A)(I)), by the amounts 
     provided in that legislation for those purposes up to 
     $500,000,000 (or, in the House, that contain offsets so 
     designated for those purposes), provided in the Senate that 
     such legislation would not increase the deficit over either 
     the total of the period of fiscal years 2007 through 2012 or 
     the total of the period of fiscal years 2007 through 2017, 
     and provided further in the House that such legislation would 
     not increase the deficit or decrease the surplus for the 
     total over the period of fiscal years 2007 through 2012 or 
     the period of fiscal years 2007 through 2017.
       (c) Transitional Medical Assistance.--The Chairman of the 
     appropriate Committee on the Budget may revise the 
     allocations of a committee or committees, aggregates, and 
     other appropriate levels in this resolution for one or more 
     bills, joint resolutions, amendments, motions or conference 
     reports that extend the Transitional Medical Assistance 
     program, included in title XIX of the Social Security Act, by 
     the amounts provided in such legislation for that purpose 
     (or, in the House, that contain offsets so designated for 
     that purpose), provided in the Senate that such legislation 
     would not increase the deficit over either the total of the 
     period of fiscal years 2007 through 2012 or the total of the 
     period of fiscal years 2007 through 2017, and provided 
     further in the House that such legislation would not increase 
     the deficit or decrease the surplus for the total over the 
     period of fiscal years 2007 through 2012 or the period of 
     fiscal years 2007 through 2017.

     SEC. 321. RESERVE FUND ADJUSTMENT FOR REVENUE MEASURES IN THE 
                   HOUSE.

       In the House, for the duration of the 110th Congress with 
     respect to consideration of any bill, joint resolution, 
     amendment, motion, or conference report that would decrease 
     total revenues for the single period comprising the budget 
     year and the following 4 fiscal years below the Congressional 
     Budget Office baseline for the most recent concurrent 
     resolution on the budget, the Chairman of the House Committee 
     on the Budget shall increase the revenue aggregates by 
     $179,816,000,000 for the total over the period of fiscal 
     years 2008 through 2012, if the Chairman determines that such 
     legislation does not contain a provision consistent with the 
     provision set forth in the joint explanatory statement of 
     managers accompanying this concurrent resolution. The 
     Chairman may readjust such levels upon disposition of any 
     measure in violation of this section.

     SEC. 322. DEFICIT-NEUTRAL RESERVE FUND FOR SAN JOAQUIN RIVER 
                   RESTORATION AND NAVAJO NATION WATER RIGHTS 
                   SETTLEMENTS.

       The Chairman of the appropriate Committee on the Budget may 
     revise the allocations of a committee or committees, 
     aggregates, and other appropriate levels in this resolution 
     for one or more bills, joint resolutions, amendments, 
     motions, or conference reports that would fulfill the 
     purposes of the San Joaquin River Restoration Settlement Act, 
     implement a Navajo Nation water rights settlement as 
     authorized by the Northwestern New Mexico Rural Water 
     Projects Act, or both, by the amounts provided by that 
     legislation for those purposes (or, in the House, that 
     contain offsets so designated for those purposes), provided 
     in the Senate that such legislation would not increase the 
     deficit over either the period of the total of fiscal years 
     2007 through 2012 or the period of the total of fiscal years 
     2007 through 2017, and provided further in the House that 
     such legislation would not increase the deficit or decrease 
     the surplus for the total over the period of fiscal years 
     2007 through 2012 or the period of fiscal years 2007 through 
     2017.

     SEC. 323. DEFICIT-NEUTRAL RESERVE FUND FOR SELECTED TAX 
                   RELIEF POLICIES IN THE SENATE.

       The Chairman of the Senate Committee on the Budget may 
     revise the aggregates, allocations, and other appropriate 
     levels in this resolution for one or more bills, joint 
     resolutions, amendments, motions, or conference reports that 
     would provide tax relief by extending the State and local 
     sales tax deduction, extending enhanced charitable giving 
     from individual retirement accounts, reauthorizing the new 
     markets tax credit under section 45D of the Internal Revenue 
     Code of 1986, or extending and increasing the above-the-line 
     deduction for teacher classroom supplies and expanding it to 
     include qualified professional development expenses, by the 
     amounts provided in that legislation for those purposes, 
     provided that such legislation would not increase the deficit 
     over either the period of the total of fiscal years 2007 
     through 2012 or the period of the total of fiscal years 2007 
     through 2017.

                            TITLE IV--POLICY

     SEC. 401. POLICY ON MIDDLE-INCOME TAX RELIEF.

       (a) In the House.--
       (1) In general.--It is the policy of the House to minimize 
     fiscal burdens on middle-income families and their children 
     and grandchildren. It is the policy of the House to provide 
     immediate relief for the tens of millions of middle-income 
     households who would otherwise be subject to the Alternative 
     Minimum Tax under current law. Furthermore, it is the policy 
     of the House to support extension of middle-income tax relief 
     and enhanced economic equity through policies such as--
       (A) extension of the child tax credit;
       (B) extension of marriage penalty relief;
       (C) extension of the 10 percent individual income tax 
     bracket;
       (D) elimination of estate taxes on all but a minute 
     fraction of estates by reforming and substantially increasing 
     the unified tax credit;
       (E) extension of the research and experimentation tax 
     credit;
       (F) extension of the deduction for State and local sales 
     taxes;
       (G) extension of the deduction for small business 
     expensing; and
       (H) enactment of a tax credit for school construction 
     bonds.
       (2) Other matters.--The House assumes the cost of enacting 
     such policies is offset by reforms within the Internal 
     Revenue Code of 1986 that promote economic efficiency, higher 
     rates of tax compliance to close the ``tax gap'', and reduced 
     taxpayer burdens through tax simplification.
       (b) In the Senate.--
       (1) In general.--The Senate adopted by a vote of 97 to 1 an 
     amendment to S.Con.Res. 21 as reported by the Senate 
     Committee on the Budget which, with regard to tax relief, 
     reduced the revenue aggregates by $179,816,000,000 to provide 
     for--
       (A) extension of the child tax credit;

[[Page H5082]]

       (B) extension of marriage penalty relief;
       (C) extension of the 10 percent individual income tax 
     bracket;
       (D) reform of the estate tax to protect small businesses 
     and family farms;
       (E) extension of the adoption tax credit;
       (F) extension of the dependent care tax credit;
       (G) extension of the treatment of combat pay for purposes 
     of determining the Earned Income Tax Credit; and
       (H) other, unspecified tax relief.
       (2) Policy.--It is the policy of the Senate that this 
     resolution supports both the enactment of the policies listed 
     in paragraph (1) and the Senate pay-as-you-go rule in section 
     201, and that any additional revenues needed to meet the 
     Senate's tax policy goals can be achieved by closing the tax 
     gap, shutting down abusive tax shelters, addressing offshore 
     tax havens, and without raising taxes.

     SEC. 402. POLICY ON DEFENSE PRIORITIES.

       It is the policy of this resolution that--
       (1) implementing the recommendation of the National 
     Commission on Terrorist Attacks Upon the United States 
     (commonly referred to as the 9/11 Commission) to adequately 
     fund cooperative threat reduction and nuclear 
     nonproliferation programs should receive higher priority than 
     the President's budget provides;
       (2) TRICARE fees for military retirees under the age of 65 
     should remain at current levels;
       (3) military pay and benefits should be enhanced to improve 
     retention of experienced personnel;
       (4) the recommendations of the bipartisan ``Walter Reed 
     Commission'' (the President's Commission on Care for 
     America's Returning Wounded Warriors) and other United States 
     Government investigations into military healthcare facilities 
     and services should be funded;
       (5) higher priority defense needs could be addressed by 
     funding missile defense at an adequate but lower level, not 
     providing funding for development of space-based missile 
     defense interceptors, and by restraining excessive cost and 
     schedule growth in defense research, development and 
     procurement programs;
       (6) sufficient resources should be provided for the 
     Department of Defense to do a more careful job of addressing 
     as many as possible of the 1,378 unimplemented 
     recommendations made by the Government Accountability Office 
     over the last 6 years to improve practices at the Department 
     of Defense, including investigation of the billions of 
     dollars of obligations, disbursements and overcharges for 
     which the Department of Defense cannot account; and
       (7) savings from the actions recommended in paragraphs (5) 
     and (6) of this section should be used to fund the priorities 
     identified in paragraphs (1) through (4) in this section.

     SEC. 403. POLICY ON COLLEGE AFFORDABILITY.

       It is the policy of this resolution that nothing in this 
     resolution should be construed to reduce any assistance that 
     makes college more affordable for students, including but not 
     limited to assistance to student aid programs run by 
     nonprofit state agencies.

           TITLE V--SENSE OF THE HOUSE AND SENSE OF CONGRESS

     SEC. 501. SENSE OF CONGRESS ON SERVICEMEMBERS' AND VETERANS' 
                   HEALTH CARE AND OTHER PRIORITIES.

       It is the sense of Congress that--
       (1) Congress supports excellent health care for current and 
     former members of the United States Armed Services, who have 
     served well and honorably and have made significant 
     sacrifices for this Nation;
       (2) this resolution provides $43,125,000,000 in 
     discretionary budget authority for 2008 for Function 700 
     (Veterans Benefits and Services), including veterans' health 
     care, which is $6,668,000,000 more than the 2007 level, 
     $5,474,000,000 more than the Congressional Budget Office's 
     baseline level for 2008, and $3,576,000,000 more than the 
     President's budget for 2008;
       (3) this resolution provides funding to implement, in part, 
     recommendations of the bi-partisan ``Walter Reed Commission'' 
     (the President's Commission on Care for America's Returning 
     Wounded Warriors) and other United States Government 
     investigations into military and veterans health care 
     facilities and services;
       (4) this resolution assumes the rejection of the enrollment 
     fees and co-payment increases in the President's budget;
       (5) this resolution provides additional funding above the 
     President's inadequate budget levels for the Department 
     of Veterans Affairs to research and treat veterans' mental 
     health, post-traumatic stress disorder, and traumatic 
     brain and spinal cord injuries; and
       (6) this resolution provides additional funding above the 
     President's inadequate budget levels for the Department of 
     Veterans Affairs to improve the speed and accuracy of its 
     processing of disability compensation claims, including 
     funding to hire additional personnel above the President's 
     requested level.

     SEC. 502. SENSE OF CONGRESS ON THE INNOVATION AGENDA: A 
                   COMMITMENT TO COMPETITIVENESS TO KEEP AMERICA 
                   #1.

       (a) It is the sense of Congress to provide sufficient 
     funding that our Nation may continue to be the world leader 
     in education, innovation and economic growth. This resolution 
     provides substantial increased funding above the President's 
     requested level for 2008, and additional amounts in 
     subsequent years in Function 250 (General Science, Space and 
     Technology) and Function 270 (Energy). Additional increases 
     for scientific research and education are included in 
     Function 500 (Education, Employment, Training, and Social 
     Services), Function 550 (Health), Function 300 (Environment 
     and Natural Resources), Function 350 (Agriculture), Function 
     400 (Transportation), and Function 370 (Commerce and Housing 
     Credit), all of which receive more funding than the President 
     requested.
       (b) America's greatest resource for innovation resides 
     within classrooms across the country. The increased funding 
     provided in this resolution will support important 
     initiatives to educate 100,000 new scientists, engineers, and 
     mathematicians, and place highly qualified teachers in math 
     and science K-12 classrooms.
       (c) Independent scientific research provides the foundation 
     for innovation and future technologies. This resolution will 
     put us on the path toward doubling funding for the National 
     Science Foundation, basic research in the physical sciences, 
     and collaborative research partnerships; and toward achieving 
     energy independence through the development of clean and 
     sustainable alternative energy technologies.

     SEC. 503. SENSE OF CONGRESS ON HOMELAND SECURITY.

       It is the sense of Congress that--
       (1) this resolution assumes additional homeland security 
     funding above the President's requested level for 2008 and 
     every subsequent year;
       (2) this resolution assumes funding above the President's 
     requested level for 2008, and additional amounts in 
     subsequent years, in the four budget functions: Function 400 
     (Transportation), Function 450 (Community and Regional 
     Development), Function 550 (Health), and Function 750 
     (Administration of Justice) that fund most nondefense 
     homeland security activities; and
       (3) the homeland security funding provided in this 
     resolution will help to strengthen the security of our 
     Nation's transportation system, particularly our ports where 
     significant security shortfalls still exist and foreign 
     ports, by expanding efforts to identify and scan all high-
     risk United States-bound cargo, equip, train and support 
     first responders (including enhancing interoperable 
     communications and emergency management), strengthen border 
     patrol, and increase the preparedness of the public health 
     system.

     SEC. 504. SENSE OF CONGRESS REGARDING THE ONGOING NEED TO 
                   RESPOND TO HURRICANES KATRINA AND RITA.

       The sense of Congress is as follows:
       (1) Critical needs in the Gulf Coast region should be 
     addressed without further delay. The budget resolution 
     creates a reserve fund that would allow for affordable 
     housing that may be used to focus on areas devastated by 
     Hurricanes Katrina and Rita, as well as new funding for 
     additional recovery priorities.
       (2) Additional oversight and investigation is needed to 
     ensure that recovery efforts are on track, develop 
     legislation to reform the contracting process, and better 
     prepare for future disasters. Those efforts should be made in 
     close consultation with residents of affected areas. For 
     example, the budget resolution provides additional 2007 
     funding for the Federal Emergency Management Agency, some of 
     which may be used for this purpose.

     SEC. 505. SENSE OF CONGRESS REGARDING LONG-TERM 
                   SUSTAINABILITY OF ENTITLEMENTS.

       (a) Findings.--Congress finds the following:
       (1) The aging of the United States population is going to 
     put unprecedented pressure on the Nation's retirement and 
     health care systems.
       (2) The long-term strength of Social Security would be 
     improved through a fiscally responsible policy of reducing 
     the deficit and paying down the debt that has accumulated 
     since 2001, thus reducing debt service payments and freeing 
     up billions of dollars that can be dedicated to meeting 
     social security's obligations.
       (3) A policy of reducing and eventually eliminating the 
     deficit and paying down the debt is a key factor in improving 
     the long-term strength of the economy as a whole, because a 
     lower debt burden frees up resources for productive 
     investments that will result in higher economic growth, 
     provide a higher standard of living for future generations, 
     and enhance the Nation's ability to meet its commitments to 
     its senior citizens.
       (4) The most significant factor affecting the Nation's 
     entitlement programs is the rapid increase in health care 
     costs. The projected increasing costs of Medicare and 
     Medicaid are not unique to these programs but rather are part 
     of a pattern of rising costs for the health sector as a 
     whole.
       (b) Sense of Congress.--It is the sense of Congress that 
     the growing cost of entitlements should be addressed in a way 
     that is fiscally responsible and promotes economic growth, 
     that addresses the causes of cost growth in the broader 
     health care system, and that protects beneficiaries without 
     leaving a legacy of debt to future generations.

     SEC. 506. SENSE OF CONGRESS REGARDING THE NEED TO MAINTAIN 
                   AND BUILD UPON EFFORTS TO FIGHT HUNGER.

       (a) Findings.--Congress finds the following:
       (1) More than 35 million individuals (12.4 million of them 
     children) are food insecure, uncertain of having, or unable 
     to acquire enough food. 10.8 million Americans are hungry 
     because of lack of food.
       (2) Despite the critical contributions of the Department of 
     Agriculture nutrition programs and particularly the food 
     stamp program that significantly reduced payment error rates 
     while increasing enrollment to partially mitigate the impact 
     of recent increases in the poverty rate, significant need 
     remains.
       (3) Nearly 25 million people, including nine million 
     children and three million seniors, sought emergency food 
     assistance from food pantries, soup kitchens, shelters, and 
     local charities last year.
       (b) Sense of Congress.--It is the sense of Congress that 
     the Department of Agriculture programs that help fight hunger 
     should be

[[Page H5083]]

     maintained and that Congress should seize opportunities to 
     enhance those programs to reach people in need and to fight 
     hunger.

     SEC. 507. SENSE OF CONGRESS REGARDING AFFORDABLE HEALTH 
                   COVERAGE.

       (a) Findings.--Congress finds the following:
       (1) More than 46 million Americans, including nine million 
     children, lack health insurance. People without health 
     insurance are more likely to experience problems getting 
     medical care and to be hospitalized for avoidable health 
     problems.
       (2) Most Americans receive health coverage through their 
     employers. A major issue facing all employers is the rising 
     cost of health insurance. Small businesses, which have 
     generated most of the new jobs annually over the last decade, 
     have an especially difficult time affording health coverage, 
     due to higher administrative costs and fewer people over whom 
     to spread the risk of catastrophic costs. Because it is 
     especially costly for small businesses to provide health 
     coverage, their employees make up a large proportion of the 
     nation's uninsured individuals.
       (b) Sense of Congress.--It is the sense of Congress that 
     legislation consistent with the pay-as-you-go principle 
     should be adopted that makes health insurance more affordable 
     and accessible, with attention to the special needs of small 
     businesses, and that lowers costs and improves the quality of 
     health care by encouraging integration of health information 
     technology tools into the practice of medicine, and promoting 
     improvements in disease management and disease prevention.

     SEC. 508. SENSE OF CONGRESS REGARDING EXTENSION OF THE 
                   STATUTORY PAY-AS-YOU-GO RULE.

       It is the sense of Congress that in order to reduce the 
     deficit Congress should extend PAYGO consistent with 
     provisions of the Budget Enforcement Act of 1990.

     SEC. 509. SENSE OF CONGRESS ON LONG-TERM BUDGETING.

       It is the sense of Congress that the determination of the 
     congressional budget for the United States Government and the 
     President's budget request should include consideration of 
     the Financial Report of the United States Government, 
     especially its information regarding the Government's net 
     operating cost, financial position, and long-term 
     liabilities.

     SEC. 510. SENSE OF CONGRESS REGARDING PAY PARITY.

       It is the sense of Congress that rates of compensation for 
     civilian employees of the United States should be adjusted at 
     the same time, and in the same proportion, as are rates of 
     compensation for members of the uniformed services.

     SEC. 511. SENSE OF CONGRESS REGARDING WASTE, FRAUD, AND 
                   ABUSE.

       It is the sense of Congress that all committees should 
     examine programs within their jurisdiction to identify 
     wasteful and fraudulent spending. To this end, section 207 of 
     this resolution includes cap adjustments to provide 
     appropriations for 3 programs that accounted for a 
     significant share of improper payments reported by Federal 
     agencies in 2006: Social Security Administration Continuing 
     Disability Reviews, the Medicare/Medicaid Health Care Fraud 
     and Abuse Control Program, and Unemployment Insurance. 
     Section 207 also includes a cap adjustment for the Internal 
     Revenue Service for tax compliance efforts to close the tax 
     gap. In addition, the resolution's deficit-neutral reserve 
     funds require authorizing committees to cut lower-priority 
     and wasteful spending to accommodate higher-priority 
     programs. Finally, section 207 of the resolution directs all 
     committees to review the performance of programs within their 
     jurisdiction and report recommendations annually to the 
     Committees on the Budget as part of the views and estimates 
     process required by section 301(d) of the Congressional 
     Budget Act of 1974.

     SEC. 512. SENSE OF CONGRESS REGARDING THE IMPORTANCE OF CHILD 
                   SUPPORT ENFORCEMENT.

       It is the sense of Congress that--
       (1) additional legislative action is needed to ensure that 
     States have the necessary resources to collect all child 
     support that is owed to families and to allow them to pass 
     100 percent of support on to families without financial 
     penalty; and
       (2) when 100 percent of child support payments are passed 
     to the child, rather than administrative expenses, program 
     integrity is improved and child support participation 
     increases.

     SEC. 513. SENSE OF THE HOUSE ON STATE VETERANS CEMETERIES.

       It is the sense of the House that the Federal Government 
     should pay the plot allowance for the interment in a State 
     veterans cemetery of any spouse or eligible child of a 
     veteran, consistent with the pay-as-you-go principle.

     SEC. 514. SENSE OF CONGRESS ON THE STATE CRIMINAL ALIEN 
                   ASSISTANCE PROGRAM.

       (a) Findings.--Congress makes the following findings:
       (1) Control of illegal immigration is a Federal 
     responsibility.
       (2) The State Criminal Alien Assistance Program (referred 
     to in this section as ``SCAAP'') carried out pursuant to 
     section 241(i) of the Immigration and Nationality Act (8 
     U.S.C. 1231(i)) provides critical funding to States and 
     localities for reimbursement of costs incurred as a result of 
     housing undocumented criminal aliens.
       (3) Congress appropriated $300,000,000 for SCAAP to 
     reimburse State and local governments for those costs in 
     fiscal year 2004.
       (4) Congress appropriated $305,000,000 for SCAAP to 
     reimburse State and local governments for those costs in 
     fiscal year 2005.
       (5) Congress appropriated $405,000,000 for SCAAP to 
     reimburse State and local governments for those costs in 
     fiscal year 2006.
       (6) Congress appropriated $399,000,000 for SCAAP to 
     reimburse State and local governments for those costs in 
     fiscal year 2007.
       (7) Congress has authorized to be appropriated $950,000,000 
     to carry out SCAAP for each of the fiscal years 2008 through 
     2011.
       (b) Sense of Congress.--It is the sense of Congress that 
     SCAAP funding for fiscal year 2008 should be consistent with 
     the goal of achieving the program's fully authorized level.

                        TITLE VI--RECONCILIATION

     SEC. 601. RECONCILIATION IN THE HOUSE.

       Not later than September 10, 2007, the House Committee on 
     Education and Labor shall report to the House of 
     Representatives changes in laws to reduce the deficit by 
     $750,000,000 for the period of fiscal years 2007 through 
     2012.

     SEC. 602. DEFICIT REDUCTION RECONCILIATION INSTRUCTION IN THE 
                   SENATE.

       Not later than September 10, 2007, the Senate Committee on 
     Health, Education, Labor, and Pensions shall report changes 
     in laws within its jurisdiction to reduce the deficit by 
     $750,000,000 for the period of fiscal years 2007 through 
     2012.

       And the House agree to the same.

     John M. Spratt, Jr.,
     Rosa DeLauro,
     Chet Edwards,
                                Managers on the Part of the House.

     Kent Conrad,
     Patty Murray,
     Ron Wyden,
                               Managers on the Part of the Senate.

       Joint Explanatory Statement of the Committee of Conference

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the House to the concurrent resolution (S. Con. 
     Res. 21) revising the congressional budget for the United 
     States Government for fiscal year 2007, establishing the 
     congressional budget for the United States Government for 
     fiscal year 2008, and setting forth appropriate budgetary 
     levels for fiscal years 2009 through 2012, submit the 
     following joint statement to the House and the Senate in 
     explanation of the effect of the action agreed upon by the 
     managers and recommended in the accompanying conference 
     report:
       The House amendment struck all of the Senate concurrent 
     resolution after the enacting clause and inserted a 
     substitute text.
       The Senate recedes from its disagreement to the amendment 
     of the House with an amendment that is a substitute for the 
     Senate concurrent resolution and the House amendment. The 
     differences between the Senate concurrent resolution, the 
     House amendment, and the substitute agreed to in conference 
     are noted below, except for clerical corrections, conforming 
     changes made necessary by agreements reached by the 
     conferees, and minor drafting and clarifying changes.

                          Displays and Amounts

       The required contents of concurrent budget resolutions are 
     set forth in section 301(a) of the Congressional Budget Act 
     of 1974. The years in this document are fiscal years unless 
     otherwise noted.
       The treatment of budget function levels in the Senate-
     passed and House-passed budget resolutions and the conference 
     report is as follows:
     Senate Concurrent Resolution
       The Senate concurrent resolution includes all of the items 
     required under Section 301(a) of the Congressional Budget 
     Act.
     House Amendment
       The House amendment includes all of the items required as 
     part of a concurrent budget resolution under section 301(a) 
     of the Congressional Budget Act other than the spending and 
     revenue levels for Social Security (which are used to enforce 
     a point of order applicable only in the Senate). It also 
     includes a new separate function category, Function 970 
     (Overseas Deployments and Other Activities).
     Conference Agreement
       The conference agreement includes all of the items required 
     by Section 301(a) of the Budget Act.

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[[Page H5104]]

                     Aggregate and Function Levels

       Pursuant to section 301(a)(3) of the Budget Act, the budget 
     resolution must set appropriate levels for each major 
     functional category based on the 302(a) allocations and the 
     budgetary totals.
       The respective levels of the Senate concurrent resolution, 
     the House amendment, and conference agreement for each major 
     budget function, as well as revenue totals, are discussed in 
     the following section. A summary of the overall budget policy 
     is as follows:
       Total spending is $2.965 trillion in budget authority (BA) 
     and $2.937 trillion in outlays in 2008, and $15.538 trillion 
     in BA and $15.567 trillion in outlays over 2008-2012.
       Discretionary spending for 2008 totals $1.100 trillion in 
     BA and $1.145 trillion in outlays in 2008, and $5.246 
     trillion in BA and $5.615 trillion in outlays over 2008-2012. 
     Excluding funding for overseas deployments and other 
     activities, discretionary spending for 2008 totals $954.1 
     billion in BA and $1.029 trillion in outlays. These aggregate 
     amounts (minus cap adjustments for program integrity 
     initiatives) are allocated to the Appropriations Committees 
     to be suballocated among their respective appropriations 
     subcommittees.
       Mandatory spending totals $1.866 trillion in BA and $1.792 
     trillion in outlays in 2008, and $10.293 trillion in BA and 
     $9.952 trillion in outlays over 2008-2012. This includes $750 
     million in reconciled savings over 2007-2012. These savings 
     are reflected in Function 500. Specific policies to achieve 
     those savings will be determined by the committees of 
     jurisdiction.
       Revenue totals $2.685 trillion in 2008, and $14.828 
     trillion over five years. Specific policies will be 
     determined by the Committee on Finance in the Senate and the 
     Committee on Ways and Means in the House.
       The conference report reduces the budget deficit from 
     $251.7 billion in 2008, to a surplus of $41.5 billion in 
     2012.
       The following section describes the conference report's 
     revenue levels and spending according to the budget's 
     functional categories.

                                Revenues

     Summary
       The revenue component of the budget resolution reflects all 
     of the federal government's tax receipts that are classified 
     as ``on budget.'' This includes individual income taxes; 
     corporate income taxes; excise taxes, such as the gasoline 
     tax; and other taxes, such as estate and gift taxes. Taxes 
     collected for the Social Security system--the Old Age and 
     Survivors and Disability Insurance (OASDI) payroll tax--are 
     ``off budget.'' The Hospital Insurance payroll tax portion of 
     Medicare, the Federal Unemployment Tax Act payroll tax, 
     railroad retirement and other retirement systems are all ``on 
     budget.'' Customs duties, tariffs, and other miscellaneous 
     receipts are also included in the revenue component. Pursuant 
     to the Congressional Budget Act of 1974 and the Budget 
     Enforcement Act of 1990, Social Security payroll taxes are 
     not included in the budget resolution.
     Senate Resolution
       The Senate budget resolution includes $2.0 trillion in on-
     budget revenues for 2008, and $11.1 trillion over 2008-2012. 
     (The corresponding revenue figures on a unified basis are 
     $2.7 trillion for 2008 and $14.8 trillion over five years.) 
     The resolution provides two years of relief from the 
     Alternative Minimum Tax (AMT), protecting some 20 million 
     middle-class taxpayers from being subject to the AMT in 2007 
     and 2008. The cost of providing this relief is fully offset. 
     The resolution also assumes the extension of the college 
     tuition deduction, with the costs offset.
       The revenue level in the Senate resolution is $179.8 
     billion below the levels in the CBO baseline over 2007-2012. 
     This provides for the extension after 2010 of middle-class 
     tax relief--child tax credit, the 10 percent bracket, and 
     marriage penalty relief--as well as continuation of the 
     estate tax at 2009 levels adjusted for inflation. In 
     addition, this revenue reduction accommodates extension of 
     other tax provisions expiring in 2010, such as the adoption 
     tax credit, the dependent care tax credit, and the treatment 
     of combat pay for purposes of the earned income tax credit.
       The Senate resolution includes several reserve funds that 
     provide for tax relief, including refundable tax relief and 
     the extension of expiring tax relief, as long as the costs of 
     these provisions are offset. These deficit-neutral reserve 
     funds would accommodate, for instance, tax relief related to 
     agriculture, energy, higher education, and manufacturing as 
     well as the extension of enhanced charitable giving from 
     individual retirement accounts, the State and local sales tax 
     deduction, the new markets tax credit, and the above-the-line 
     deduction for teacher classroom supplies.
       The Senate resolution assumes that any additional revenues 
     needed under the resolution can be achieved by closing the 
     tax gap, shutting down abusive tax shelters, addressing 
     offshore tax havens, and without raising taxes. To help close 
     the tax gap and bolster Internal Revenue Service (IRS) 
     enforcement, the resolution fully funds the President's 
     budget request for the IRS, including additional resources 
     available through a discretionary cap adjustment that directs 
     $406 million to IRS enforcement activities.
     House Amendment
       The House amendment matches the level of revenues under the 
     CBO baseline in each year over the 2007-2012 period. This 
     includes $2.1 trillion in on-budget revenues for 2008, and 
     $11.3 trillion over 2008-2012. (The corresponding revenue 
     figures on a unified basis are $2.7 trillion for 2008 and 
     $15.0 trillion over five years.)
       By following CBO's baseline path of revenues, the House 
     amendment achieves current-law total revenue levels, but does 
     not assume maintaining current tax law. Thus, the House 
     amendment accommodates reform of the AMT and extension of tax 
     cuts benefitting middle-income households (including the 
     child tax credit, marriage penalty relief, the 10 percent 
     bracket, and the deduction for State and local sales taxes), 
     as long as such changes to tax law are accomplished in a 
     deficit-neutral manner over the 2007-2012 and 2007-2017 
     periods.
       The House amendment also accommodates deficit-neutral 
     extension of other expiring tax provisions, such as the 
     research and experimentation tax credit and the deduction for 
     small business expensing. In addition, the House amendment 
     accommodates deficit-neutral elimination of estate taxes on 
     all but a minute fraction of estates by reforming and 
     substantially increasing the unified tax credit. It also 
     accommodates other high priority deficit-neutral revenue 
     adjustments, such as providing a tax credit for local bonds 
     to support the repair or construction of public schools.
     Conference Agreement
       The conference agreement includes $2.0 trillion in on-
     budget revenues for 2008, and $11.1 trillion over 2008-2012. 
     (The corresponding revenue figures on a unified basis are 
     $2.7 trillion for 2008 and $14.8 trillion over five years.) 
     The resolution provides immediate relief from the Alternative 
     Minimum Tax (AMT), with its cost fully offset. The resolution 
     also reflects extension of the college tuition deduction, 
     with the costs offset. The agreement supports tax relief that 
     would benefit the middle class--including extension of the 
     child tax credit, 10 percent bracket, and marriage penalty 
     relief--and provide for estate tax reform. Additionally, the 
     agreement includes several deficit-neutral reserve funds that 
     provide for a wide range of tax policies.
       The revenue level in the conference agreement is $180 
     billion below the levels in the CBO baseline over 2007-2012. 
     Revenue legislation is subject to House and Senate pay-as-
     you-go (paygo) rules. Additionally, the House reserve fund 
     adjustment for revenue measures (Section 321)--the House 
     ``trigger'' mechanism--creates a second procedural hurdle in 
     the House only, in addition to the paygo rule, to ensure 
     fiscal responsibility.

                     National Defense: Function 050

     Function Summary
       The National Defense function includes the military 
     activities of the Department of Defense (DoD), the nuclear-
     weapons related activities of the Department of Energy (DoE) 
     and the National Nuclear Security Administration, and the 
     national security activities of several other agencies such 
     as the Selective Service, Coast Guard and Federal Bureau of 
     Investigation. The programs in this function include: the pay 
     and benefits of active, Guard, and reserve military 
     personnel; DoD operations including training, maintenance of 
     equipment, and facilities; health care for military personnel 
     and dependents; procurement of weapons; research and 
     development; construction of military facilities, including 
     housing; research on nuclear weapons; and the cleanup of 
     nuclear weapons production facilities.
     Senate Resolution
       The Senate resolution calls for a total of $648.8 billion 
     in BA and $617.8 billion in outlays for 2008, and $2.9 
     trillion in BA and outlays over five years. This includes 
     full funding for the President's request for war costs for 
     2007 through 2009.
       Excluding requested war funds, the Senate resolution 
     provides $503.8 billion in BA and $511.1 billion in outlays 
     for defense in 2008. This funding for defense was equal to 
     the level requested by the President for 2008 (as re-
     estimated by CBO), for a total increase of $39.6 billion in 
     BA over the 2007 level adjusted for inflation.
       The Senate resolution rejects the President's proposals for 
     new TRICARE enrollment fees and deductibles for military 
     retirees under the age of 65.
       Additionally, the Senate resolution assumes full funding of 
     the President's request for $690 million to support the 
     baseline cost to completion for the waste treatment plant and 
     associated facilities at the Hanford Nuclear Reservation. The 
     resolution additionally assumes increases totaling $22.9 
     million for the Hanford tank farm and other Hanford cleanup-
     related programs.
       The Senate resolution recognizes that many communities will 
     experience significant population growth or declines 
     resulting from the Base Realignment and Closure (BRAC) 2005 
     process, and it supports additional funding to accommodate 
     the needs of these communities.
       The National Guard has a long history of outstanding 
     service to our nation. Since September 11, 2001, our reliance 
     on the National Guard has only increased with many thousands 
     of troops serving the nation both at home and abroad. The 
     President has now announced that National Guard units will 
     face re-activation for additional tours of duty in Iraq and 
     Afghanistan despite the fact that they have not had the 
     amount of time at home station between deployments that is 
     expected under Department of Defense standards. Congress has 
     provided the National

[[Page H5105]]

     Guard with significant resources in recognition of the 
     important role the Guard plays in our national security and 
     to ensure that it has the tools to continue to perform its 
     missions. The Senate resolution assumed continued funding of 
     the National Guard at levels at least as high as those 
     assumed in the President's Budget. The Senate resolution 
     encourages the Appropriations Committee to provide for 
     critical needs for National Guard equipment left unfunded in 
     the President's Budget.
       The Senate resolution includes a cap adjustment provision 
     allowing the Chairman of the Budget Committee to revise the 
     discretionary spending cap for appropriations related to 
     operations in Iraq, Afghanistan, and other war-related costs. 
     The cap adjustment allowed under the Senate resolution is 
     $145.2 billion in budget authority for 2008 and $50.0 billion 
     for 2009 (a portion of these costs are expected to fall under 
     budget functions other than National Defense). The Senate 
     resolution's levels of deficits and debt assumes that this 
     cap adjustment is fully utilized.
       An additional defense-related cap adjustment provision 
     allows the Chairman of the Budget Committee to increase the 
     discretionary cap by up to $5.0 billion to address 
     deficiencies in training, equipment, force protection, 
     logistics, or other matters necessary for the protection of 
     United States military forces, or to address deficiencies at 
     Walter Reed and other military medical facilities.
       The existence of these cap adjustments would not prevent 
     the Appropriations Committee from reporting emergency 
     supplemental appropriations legislation if war costs exceed 
     the allotted level. Emergency funding falls outside the 
     discretionary spending caps included in the resolution, and 
     hence does not require an adjustment.
       For 2007, the Senate resolution assumes the enactment of 
     the President's full emergency request for war costs, 
     consisting of $99.6 billion in BA and $27.0 billion in 
     outlays. Each of these levels is equal to CBO's reestimate of 
     the President's war funding request.
     House Amendment
       The House amendment reflects a total of $507.0 billion in 
     BA and $514.4 billion in outlays in 2008, and $2.7 trillion 
     in BA and outlays over five years. The defense of our nation 
     ranks first among our priorities, and the House amendment 
     accordingly provides robust funding for Function 050 
     (National Defense). The amendment calls, however, for a 
     reallocation of resources to address threats facing the 
     nation and to guarantee first-rate health care for members of 
     our armed forces. It includes assumptions on specific defense 
     policy in Title IV, Section 402.
       The National Commission on Terrorist Attacks Upon the 
     United States (commonly referred to as the 9/11 Commission) 
     identified terrorists with weapons of mass destruction as one 
     of the nation's gravest threats. It recommended that Congress 
     supply more resources to secure nuclear weapons and the 
     fissile materials used in making these weapons. It is the 
     policy of the House amendment that non-proliferation 
     programs, such as the Cooperative Threat Reduction program, 
     be given greater priority and higher funding.
       High among our priorities is the health care guaranteed our 
     armed forces, not only while they are in harm's way, but when 
     they return from combat with injuries. For that reason, the 
     House amendment opposes Tricare fee increases and calls for a 
     substantial increase in the veterans' health care system. The 
     amendment notes the upcoming recommendations of the 
     President's Commission on Care for America's Returning 
     Wounded Warriors and other government investigations in 
     connection with the substandard care at Walter Reed Army 
     Medical Center, and allows funds for action when those 
     recommendations are received.
       It is the policy of the House amendment that acquisition 
     programs such as missile defense and satellite procurement be 
     funded at lower, but still robust levels. Development of 
     space-based interceptors as part of the missile defense 
     program should be de-emphasized and satellite development and 
     procurement should proceed along a more measured schedule. 
     DoD's satellite programs have experienced significant cost 
     growth and the President's request for satellite acquisition 
     reflects a 26 percent increase above the 2007 enacted level.
       The House amendment recognizes the need for DoD to root out 
     wasteful spending with far more diligence. Seventeen years 
     after passage of the Chief Financial Officers Act of 1990, 
     DoD still cannot pass a standard audit. The Department cannot 
     adequately track what it owns or the spending in its annual 
     budgets. DoD has allowed the cost of its major acquisition 
     programs to grow at an unsustainable rate. The Department's 
     major acquisition programs grew by $317.0 billion above their 
     initial projections from 2002 to 2006. DoD has awarded 
     contracts for its foreign deployments that have been grossly 
     more wasteful than domestic contracts, especially in Iraq. 
     Furthermore, DoD continues to fund weapons systems that were 
     developed years ago to counter Cold War-era threats, which 
     may not be as effective in protecting the nation from today's 
     threats.
       Over the last six years, the Government Accountability 
     Office (GAO) has performed numerous audits of DoD's financial 
     management, contracting, and business practices. GAO made 
     2,544 recommendations, of which 1,378 have yet to be 
     implemented. The House amendment assumes that enhancing 
     accounting practices at DoD and implementing many GAO 
     recommendations would yield substantial savings that could be 
     applied to meet critical defense priorities. The amendment 
     also directs the committees with jurisdiction over defense 
     and armed services to conduct more oversight with the 
     objective of ferreting out wasteful practices, fraud, and 
     abuse.
       For mandatory programs, the House amendment matches the 
     President's assumptions regarding offsetting receipts.
     Conference Agreement
       The conference agreement for Function 050 includes a total 
     of $507.0 billion in BA and $514.4 billion in outlays in 
     2008, and $2.7 trillion in BA and outlays over five years. 
     The conference agreement does not assume enactment of the 
     President's proposals for new TRICARE enrollment fees and 
     deductibles for military retirees under the age of 65. In 
     keeping with the Senate resolution, the conference agreement 
     assumes that total National Defense funding includes no less 
     than $5.0 billion to address deficiencies in training, 
     equipment, force protection, logistics, and military medical 
     care. The conference agreement reaffirms the Senate 
     resolution's position on the importance of robust funding for 
     atomic energy defense environmental cleanup activities.
       For mandatory programs, the conference agreement matches 
     the President's assumptions regarding offsetting receipts.
       The conference agreement reflects war costs in Function 
     970, as in the House amendment.
       The conference agreement also includes a deficit-neutral 
     reserve fund (Section 302) to provide increased flexibility 
     to the relevant House and Senate committees on various issues 
     related to meeting our commitments to wounded and disabled 
     military personnel and veterans, as well as their survivors.
       The conference agreement includes a statement of policy on 
     defense issues (Section 402). The House Budget Committee 
     report (H. Rept. 110-69) discussed key priorities to be 
     funded within the defense allocation and the need for the 
     Department of Defense to root out wasteful spending (such as 
     the continued funding of some Cold War-era weapons systems, 
     which may not be as effective in protecting the nation from 
     today's threats). The conference agreement reaffirms these 
     priorities.

                  International Affairs: Function 150

     Function Summary
       The International Affairs function includes funding for 
     operations of U.S. embassies and other diplomatic missions 
     abroad; development aid and technical assistance to 
     developing countries; security assistance to foreign 
     governments; refugee assistance; Foreign Military Sales Trust 
     Fund; contributions to international organizations, including 
     financial institutions; and the Export-Import Bank and other 
     trade promotion programs. The major agencies in this function 
     include the Departments of Agriculture, State, and the 
     Treasury; the United States Agency for International 
     Development; and the Millennium Challenge Corporation.
     Senate Resolution
       The Senate resolution calls for a total of $39.2 billion in 
     BA and $36.9 billion in outlays, including the 2008 emergency 
     request, and $180.0 billion in BA and $172.3 billion in 
     outlays over five years. Excluding assumed war costs provided 
     under a cap adjustment, discretionary spending for 2008 
     totals $36.5 billion in BA and $35.9 billion in outlays. The 
     discretionary level is $6.5 billion above the 2007 level 
     adjusted for inflation. The Senate resolution includes an 
     increase in funding for international programs and additional 
     funds for trade enforcement.
       Overall, the Senate resolution increases funding for the 
     President's Emergency Plan for AIDS Relief above the 
     requested level and provides a U.S. contribution to the 
     Global Fund for HIV/AIDS, Tuberculosis and Malaria of $940 
     million.
     House Amendment
       The House amendment reflects a total of $34.7 billion in 
     non-emergency BA and $33.1 billion in non-emergency outlays 
     in 2008, and $178.3 billion in BA and $165.0 billion in 
     outlays over five years. The House amendment's discretionary 
     budget authority for 2008 is $2.0 billion (5.9 percent) more 
     than the amount needed to maintain purchasing power at the 
     2007 level. The amendment matches the President's Function 
     150 request for activities related to the United States' 
     overseas military deployments and the Emergency Plan for AIDS 
     Relief, which includes the Global HIV/AIDS Initiative. The 
     House also notes the importance of adequate funding for core 
     U.S. development assistance and other high priority programs.
       Consistent with the President's budget, the House amendment 
     also provides full funding to continue agreements that the 
     United States reached in 1998 with Israel and Egypt regarding 
     levels of military financing and economic support.
       The House amendment provides additional funding for 2008 
     for the McGovern-Dole International Food for Education and 
     Child Nutrition Program. This program has been demonstrated 
     to help reduce child hunger and malnutrition, and increase 
     enrollment and attendance in schools in beneficiary 
     countries.
       The House notes the large amount of unobligated funding 
     that is still available for the Millennium Challenge 
     Corporation, which has received almost $6.0 billion in total 
     appropriations from fiscal years 2004 through 2007.

[[Page H5106]]

       The House also notes the strong support enjoyed by H.R. 
     1595, a measure designed to provide compensation to the 
     Guamanian victims of the Imperial Japanese military 
     occupation during World War II.
     Conference Agreement
       The conference agreement includes $34.7 billion in BA and 
     $33.1 billion in outlays in 2008, and $180.1 billion in BA 
     and $166.5 billion in outlays over five years. The conference 
     agreement reflects international affairs funding associated 
     with overseas deployments and related activities in Function 
     970, as in the House amendment.

          General Science, Space, and Technology: Function 250

     Function Summary
       The General Science, Space, and Technology function 
     includes funding for the National Aeronautics and Space 
     Administration (NASA), except aviation programs, the National 
     Science Foundation (NSF), as well as programs in the 
     Department of Energy (DoE) Office of Science.
     Senate Resolution
       The Senate resolution calls for a total of $27.6 billion in 
     BA and $26.4 billion in outlays for 2008, and $137.5 billion 
     in BA and $136.4 billion in outlays over five years.
       The Senate resolution assumes the President's request of 
     $17.3 billion for NASA. The United States' goals for space 
     exploration were defined in the President's `Vision for Space 
     Exploration' and included in the National Aeronautics and 
     Space Administration Authorization Act of 2005. The 
     resolution recognizes the importance of our nation's space 
     program and endorsed the Act's balanced goals of exploration, 
     science and aeronautics. The Act calls for retirement of the 
     Space Shuttle by 2010 and first flight of its replacement by 
     2014. The Senate resolution recognizes the strategic 
     importance of uninterrupted access to space and supported 
     efforts to reduce this four-year gap in U.S. human space 
     flight.
       In addition, the Senate resolution notes the importance of 
     incentives to promote innovation and competitiveness through 
     research as essential to our nation's efforts to advance the 
     scientific and technological developments necessary to 
     maintain our quality of life and economic security. The 
     resolution also reflects the Senate's concern about the 
     geographic imbalance of federal research funding and believes 
     that it is incumbent upon departments and agencies to ensure 
     a more equitable distribution of funding and research 
     infrastructure development throughout the nation.
       The Senate resolution provides a $1.0 billion increase for 
     additional investments in innovation and education, and $40 
     million for NSF nanotechnology programs.
     House Amendment
       The House amendment reflects a total of $27.6 billion in BA 
     and $26.5 billion in outlays in 2008, and $149.6 billion in 
     BA and $145.8 billion in outlays over five years. Funding in 
     Function 250 exceeds the funding levels in the President's 
     budget and the current services level for all five years in 
     the budget window. Additional increases for scientific 
     research and education are included in Function 270 (Energy), 
     Function 300 (Environment and Natural Resources), Function 
     350 (Agriculture), Function 370 (Commerce and Housing 
     Credit), Function 400 (Transportation), Function 500 
     (Education, Training, Employment, and Social Services), and 
     Function 550 (Health), all of which receive more funding than 
     the President requested. These increases will support the 
     goals of the House Leadership's Innovation Agenda: to put NSF 
     funding on a path toward doubling, to train more qualified 
     science and math teachers, and to invest in basic research on 
     energy technologies.
     Conference Agreement
       The conference agreement includes $27.6 billion in BA and 
     $26.5 billion in outlays in 2008 and $149.6 billion in BA and 
     $145.8 billion in outlays over five years. The conference 
     agreement provides significant increases for NSF and the DoE 
     Office of Science, and fully funds the President's 2008 
     request for NASA at $17.3 billion. For NASA, this represents 
     an increase of $696 million, or 4 percent, above the 2007 
     level adjusted for inflation.

                          Energy: Function 270

     Function Summary
       The Energy function includes funding for most civilian 
     energy and environmental programs in the Department of Energy 
     (DoE). This function also includes the Rural Utilities 
     Service of the Department of Agriculture, the Tennessee 
     Valley Authority, the Federal Energy Regulatory Commission, 
     and the Nuclear Regulatory Commission. This function does not 
     include DoE's national security activities, which are in the 
     National Defense function, or its basic research and science 
     activities, which are in the General Science, Space and 
     Technology function.
     Senate Resolution
       The Senate resolution calls for a total of $3.7 billion in 
     BA and $1.3 billion in outlays for 2008, and $16.6 billion in 
     BA and $8.5 billion in outlays over five years. The Senate 
     resolution assumes $1.6 billion for the DoE's Energy 
     Efficiency and Renewable Energy program. This funding level 
     is $385 million above the President's request. In addition, 
     the Senate resolution rejects the President's proposed cuts 
     to the fossil energy research and development program.
       The Senate resolution includes a deficit-neutral reserve 
     fund for energy legislation that would reduce our nation's 
     dependence on foreign sources of energy, expand production 
     and use of alternative fuels and alternative fuel vehicles, 
     promote renewable energy development, improve electricity 
     transmission, encourage responsible development of domestic 
     oil and natural gas resources, or reward conservation and 
     efficiency. The reserve fund will provide committees 
     increased flexibility in finding offsets for legislation that 
     addresses the energy challenges facing our nation. The Senate 
     resolution also includes a deficit-neutral reserve fund which 
     accommodates the extension of various energy tax incentives.
       The Senate resolution rejects the President's proposal to 
     increase the interest rates Power Marketing Administrations 
     pay when they borrow funds from the Treasury. The resolution 
     also rejects the proposal to accelerate the Bonneville Power 
     Administration's (BPA's) debt repayment. The BPA proposal 
     could lead to higher electricity rates for power customers in 
     the Northwest and circumvent the regional decision making 
     process. It is unfortunate that the President's budget 
     proposed this again after it was explicitly rejected by 
     Congress last year. The resolution does not assume any 
     savings from the proposal and includes a deficit-neutral 
     reserve fund for legislation blocking the proposal. The 
     levels for the energy function assume funding to accommodate 
     legislation blocking the BPA proposal.
       The Senate resolution adds funding for carbon sequestration 
     and capture technology and funding for geothermal, ocean, and 
     hydroelectric energy assistance.
     House Amendment
       The House amendment reflects a total of $3.2 billion in BA 
     and $1.1 billion in outlays for 2008, and $16.0 billion in BA 
     and $7.9 billion in outlays over five years. The amendment 
     provides funding above the President's request and the level 
     needed to maintain current services for Function 270. This 
     increased funding could be used for research, development, 
     and deployment of renewable and alternative energy technology 
     and resources.
       The House amendment also establishes a reserve fund to 
     facilitate the development of conservation and efficiency 
     technologies, clean domestic renewable energy resources, and 
     alternative fuels that will reduce our reliance on foreign 
     oil. The federal government, and particularly the DoE, should 
     take the lead in research and development, and to that end, 
     the House amendment includes an increase in Function 270 
     above baseline, while emphasizing that this is a first step 
     toward increases that need to come soon and be substantial.
       In the meantime, the DoE should husband its resources and 
     program work at the national laboratories to advance the 
     technologies of energy conservation and efficiency and of 
     clean, renewable energy. Other agencies and departments of 
     the government should join this effort. The House amendment 
     recognizes, for example, the role that the Department of 
     Agriculture could take in developing new energy sources such 
     as cellulosic ethanol, and approves this mission among those 
     cited in Function 350.
       Funding sources for research and development are scattered 
     throughout the budget. These sources need to be inventoried, 
     and where possible, refocused on research and development of 
     clean and renewable energies.
     Conference Agreement
       The conference agreement includes $3.4 billion in BA and 
     $1.2 billion in outlays for 2008, and $16.6 billion in BA and 
     $8.5 billion in outlays over five years. The conference 
     agreement rejects the proposal to accelerate the Bonneville 
     Power Administration's (BPA's) debt repayment. The BPA 
     proposal could lead to higher electricity rates for power 
     customers in the Northwest and circumvent the regional 
     decision making process. It is unfortunate that the 
     President's budget proposed this again after it was 
     explicitly rejected by Congress last year. The conference 
     agreement does not assume any savings from the proposal and 
     includes a deficit-neutral reserve fund for legislation 
     rejecting the proposal. The levels for the energy function 
     assume funding to accommodate legislation rejecting the BPA 
     proposal.
       The conference agreement also rejects the President's 
     proposal to increase the interest rates Power Marketing 
     Administrations pay when they borrow funds from the Treasury.
       The conference agreement includes a deficit-neutral reserve 
     fund to accommodate energy legislation in both the House and 
     the Senate.

            Natural Resources and Environment: Function 300

     Function Summary
       The Natural Resources and Environment function consists of 
     funding for water resources, conservation, land management, 
     pollution control and abatement, and recreational resources. 
     Major departments and agencies in this function are the 
     Department of the Interior (including the National Park 
     Service, the Bureau of Land Management, the Bureau of 
     Reclamation, the Fish and Wildlife Service, and the Minerals 
     Management Service), conservation-oriented and land 
     management agencies within the Department of Agriculture 
     (including the Forest Service), the National Oceanic and 
     Atmospheric Administration at the Department of Commerce, the 
     Army Corps of Engineers, and the Environmental Protection 
     Agency (EPA).

[[Page H5107]]

     Senate Resolution
       The Senate resolution calls for a total of $32.9 billion in 
     BA and $34.9 billion in outlays for 2008, and $169.7 billion 
     in BA and $176.4 billion in outlays over five years. The 
     Senate resolution includes $8.1 billion for the EPA. This is 
     $877 million above the President's request and $170 million 
     above the 2007 level adjusted for inflation. In nominal 
     dollars, the President's proposed 2008 funding level of $7.2 
     billion would be the lowest budget for EPA since 1997. The 
     Senate resolution assumes $1.5 billion for Superfund, an 
     increase of $211 million above the President's request. The 
     Senate resolution also assumes full funding for EPA's 
     programs to support clean and safe drinking water. It rejects 
     the President's proposal to cut a variety of environmental 
     protection programs.
       The Senate resolution rejects the President's proposal to 
     permit oil and gas leasing in the Arctic National Wildlife 
     Refuge (ANWR) and does not assume savings from the proposal. 
     The Senate resolution also does not assume any savings from 
     the President's proposal to sell Federal lands.
       It rejects the proposal in the President's budget to 
     reallocate the repayment of the capital costs of the Pick-
     Sloan Missouri Basin irrigation program to power customers. 
     The resolution recognizes the importance of the Bureau of 
     Reclamation rural water program to support ongoing Municipal, 
     Rural, and Industrial (MR&I) systems for the Great Plains 
     Region. The Bureau of Reclamation supplies drinking water to 
     2.6 million people in the Great Plains region and is 
     encouraged to prioritize the completion of the Pick Sloan-
     Missouri Basin Program--Garrison Diversion Unit, the Mni 
     Wiconi Project, Dry Prairie, Perkins County, and the Lewis 
     and Clark projects. Together, these projects have a 
     capability of $200 million. The resolution supports funding 
     these projects at a level that is as close as possible to the 
     full capability for these vital rural water development 
     projects. The Senate resolution adds funding for the Forest 
     Service.
     House Amendment
       The House amendment reflects a total of $32.8 billion in BA 
     and $34.9 billion in outlays for 2008 and $172.2 billion in 
     BA and $178.3 billion in outlays over five years. The House 
     amendment rejects the President's proposed cuts to priority 
     programs, such as the Land and Water Conservation Fund, the 
     Fish and Wildlife Service's wildlife refuge system, the EPA's 
     grants to States and Tribes to address water and air quality, 
     and other EPA programs. It also includes funding to address 
     high-priority brownfield redevelopment concerns. In addition, 
     the amendment accommodates the President's recommendation to 
     increase funding for the operation and maintenance of the 
     national park system. The House amendment includes a deficit-
     neutral reserve fund to facilitate the reauthorization of the 
     Farm Bill, providing resources for such objectives as to 
     secure an economic safety net for agricultural producers, 
     conserve our natural resources, and address nutrition needs.
     Conference Agreement
       The conference agreement includes $33.4 billion in BA and 
     $35.2 billion in outlays for 2008, and $173.2 billion in BA 
     and $179.3 billion in outlays over five years. The funding 
     levels in the conference agreement assume that if the 
     severity of the fire season requires additional funding, 
     wildland fire suppression activities will be funded for 2008 
     at no less than $400 million above the ten-year average at 
     the Forest Service and $100 million above the ten-year 
     average at the Department of the Interior.

                       Agriculture: Function 350

     Function Summary
       The Agriculture function includes farm income 
     stabilization, agricultural research, and other services 
     administered by the U.S. Department of Agriculture. The 
     discretionary programs include research and education 
     programs, economics and statistics services, administration 
     of the farm support programs, farm loan programs, meat and 
     poultry inspection, and a portion of the Public Law 480 
     international food aid program. The mandatory programs 
     include commodity programs, crop insurance, and certain farm 
     loans.
     Senate Resolution
       The Senate resolution reflects a total of $20.5 billion in 
     BA and $21.5 billion in outlays for 2008 and $105.0 billion 
     in BA and $102.9 billion in outlays over five years. With the 
     2002 Farm Bill expiring this year, the Senate resolution 
     provides a deficit-neutral reserve fund for the 
     reauthorization of agricultural programs. To address the 
     needs of rural America and promote new sources of renewable 
     energy from U.S. farm products, it would provide a $15.0 
     billion deficit-neutral reserve fund for the 2007 through 
     2012 period to reauthorize the Farm Bill. The reauthorization 
     of the Farm Bill will provide an economic safety net for 
     agricultural producers, enhance the stewardship of our 
     natural resources, address domestic nutrition needs, increase 
     agricultural research, and improve our export 
     competitiveness.
     House Amendment
       The House amendment reflects a total of $20.4 billion in BA 
     and $19.5 billion in outlays for 2008 and $105.0 billion in 
     BA and $101.0 billion in outlays over five years. The 
     amendment provides sufficient funding to bolster commodity 
     support, agricultural research, and animal and plant 
     inspection programs. The amendment includes a deficit-neutral 
     reserve fund to facilitate the reauthorization of the Farm 
     Bill, providing resources for such objectives as to secure an 
     economic safety net for agricultural producers, conserve our 
     natural resources, and address nutrition needs.
     Conference Agreement
       The conference agreement includes a total of $20.5 billion 
     in BA and $19.6 billion in outlays for 2008, and $105.5 
     billion in BA and $101.5 billion in outlays over five years. 
     The conference agreement includes a deficit-neutral reserve 
     fund (Section 307) to provide up to an additional $20.0 
     billion for the 2007 Farm Bill to improve the economic safety 
     net for farmers, address domestic nutrition needs, enhance 
     conservation programs, and encourage the production of 
     renewable energy resources and other purposes.

               Commerce and Housing Credit: Function 370

     Function Summary
       The Commerce and Housing Credit function includes mortgage 
     credit, the Postal Service, deposit insurance, and other 
     advancement of commerce (the majority of the discretionary 
     and mandatory spending in this function). The mortgage credit 
     component of this function includes housing assistance 
     through the Federal Housing Administration, the Federal 
     National Mortgage Association (Fannie Mae), the Federal Home 
     Loan Mortgage Corporation (Freddie Mac), the Government 
     National Mortgage Association (Ginnie Mae), and rural housing 
     programs of the Department of Agriculture. The function also 
     includes net Postal Service spending and spending for deposit 
     insurance activities of banks, thrifts, and credit unions. 
     Most of the Commerce Department is provided for in this 
     function, including the International Trade Administration, 
     the Bureau of Economic Analysis, the Patent and Trademark 
     Office, the National Institute of Standards and Technology, 
     the National Telecommunications and Information 
     Administration, and the Bureau of the Census. Finally, the 
     function also includes funding for independent agencies such 
     as the Securities and Exchange Commission, the Commodity 
     Futures Trading Commission, the Federal Trade Commission, the 
     Federal Communications Commission, and the majority of the 
     Small Business Administration.
     Senate Resolution
       The Senate resolution calls for a total of $10.7 billion in 
     unified BA and $3.7 billion in unified outlays for 2008, and 
     $47.8 billion in unified BA and $7.1 billion in unified 
     outlays over five years. The Senate resolution rejects the 
     President's proposal to cut assistance to America's small 
     businesses. The President has tried repeatedly to reduce the 
     Manufacturing Extension Program (MEP), which helps small 
     businesses adopt advanced manufacturing technologies, but 
     Congress has consistently restored the funding. The Senate 
     resolution restores cuts to this vital program. The Senate 
     resolution also provides robust resources for the Small 
     Business Administration.
     House Amendment
       The House amendment reflects a total of $11.0 billion in 
     unified BA and $3.8 billion in unified outlays for 2008 and 
     $55.0 billion in unified BA and $13.9 billion in unified 
     outlays over five years. The House amendment's discretionary 
     function total includes significantly increased funding for 
     the Bureau of Census, reflecting continued preparation for 
     the 2010 census. For 2008, and over the following four years, 
     funding in Function 370 is above the level in the President's 
     budget.
     Conference Agreement
       The conference agreement calls for a total of $11.1 billion 
     in unified BA and $3.8 billion in unified outlays for 2008, 
     and $55.1 billion in unified BA and $14.1 billion in unified 
     outlays over five years.

                      Transportation: Function 400

     Function Summary
       The Transportation function consists mostly of the programs 
     administered by the Department of Transportation, including 
     programs for highways, mass transit, aviation, and maritime 
     activities. This function also includes two components of the 
     Department of Homeland Security: the Coast Guard and the 
     Transportation Security Administration. In addition, this 
     function includes several small transportation-related 
     agencies and the research program for civilian aviation at 
     NASA.
     Senate Resolution
       The Senate resolution calls for a total of $83.9 billion in 
     BA and $81.4 billion in outlays for 2008, and $390.2 billion 
     in BA and $425.3 billion in outlays over five years. The 
     Senate resolution provides $1.8 billion in BA for Amtrak, a 
     funding level that is $880 million above the President's 
     request and $480 million above the 2007 level adjusted for 
     inflation. Amtrak is a vital link to many small communities, 
     and the Senate resolution will help Amtrak pay off debt and 
     continue to improve its operations. The Senate resolution 
     also provides full funding for highway, safety, and transit 
     programs.
     House Amendment
       The House amendment reflects a total of $82.7 billion in BA 
     and $80.8 billion in outlays for 2008 and $393.7 billion in 
     BA and $426.7 billion in outlays over five years. It fully 
     funds the highway, safety, and transit programs authorized in 
     the Safe, Accountable, Flexible, Efficient Transportation 
     Equity Act: A

[[Page H5108]]

     Legacy for Users (SAFETEA-LU). Specifically, the House 
     amendment includes both the revenue aligned budget authority 
     (RABA) and the funding for transit capital projects that the 
     President's 2008 budget cuts. In addition, the House 
     amendment maintains Amtrak, provides additional funding for 
     grants to airports, and rejects the President's cuts to 
     aviation programs within NASA.
     Conference Agreement
       The conference agreement provides a total of $82.8 billion 
     in BA and $81.1 billion in outlays for 2008 and $393.2 
     billion in BA and $426.1 billion in outlays over five years. 
     The conference agreement fully funds the highway, safety, and 
     transit programs authorized in the Safe, Accountable, 
     Flexible, Efficient Transportation Equity Act: A Legacy for 
     Users (SAFETEA-LU). Specifically, the conference agreement 
     includes the revenue aligned budget authority (RABA) that the 
     President's 2008 budget cuts. Among other transportation 
     programs, the conference agreement provides $1.8 billion in 
     BA for Amtrak.

            Community and Regional Development: Function 450

     Function Summary
       The Community and Regional Development function includes 
     federal programs to improve community economic conditions, 
     promote rural development, and assist in federal preparations 
     for and response to disasters. This function provides 
     appropriated funding for the Community Development Block 
     Grant (CDBG), Department of Agriculture rural development 
     programs, the Bureau of Indian Affairs, the Federal Emergency 
     Management Agency (including homeland security grants), and 
     other disaster mitigation and community development-related 
     programs. It also provides mandatory funding for the federal 
     flood insurance program.
     Senate Resolution
       The Senate resolution calls for a total of $15.4 billion in 
     BA and $22.5 billion in outlays for 2008, and $70.7 billion 
     in BA and $96.9 billion in outlays over five years. This 
     level restores cuts proposed in the President's budget for 
     community development programs and several Department of 
     Homeland Security (DHS) grant programs, including first 
     responder grants. In addition, the Senate resolution includes 
     increases in funding for security grant programs relating to 
     port security, rail and transit security, interoperable 
     communications equipment, and emergency management 
     performance grants.
     House Amendment
       The House amendment reflects a total of $15.0 billion in BA 
     and $22.0 billion in outlays in 2008, and $71.9 billion in BA 
     and $94.5 billion in outlays over five years. The House 
     amendment provides more than the President's 2008 
     discretionary funding level for Function 450, rejecting the 
     President's cuts to the Community Development Block Grant 
     (CDBG) program and providing additional funds for this and 
     other key priorities like rural development and disaster 
     preparedness.
     Conference Agreement
       The conference agreement includes a total of $15.8 billion 
     in BA and $22.3 billion in outlays for 2008, and $76.0 
     billion in BA and $97.6 billion in outlays over five years. 
     The conference agreement provides funding for continued 
     investments in and additional resources for community 
     development and homeland security, including community 
     development block grants, interoperable communications 
     equipment grants, and emergency management performance grant 
     programs.

   Education, Training, Employment, and Social Services: Function 500

     Function Summary
       The Education, Training, Employment and Social Services 
     function includes funding for the Department of Education, as 
     well as programs in the Department of Health and Human 
     Services (HHS) and the Department of Labor. This function 
     provides funding for elementary and secondary, career and 
     technical, and post-secondary educational programs; job 
     training and employment services; children and family 
     services; and statistical analysis and research related to 
     these areas. It also contains funding for the Library of 
     Congress and independent research and art agencies such as 
     the Corporation for Public Broadcasting, the Smithsonian 
     Institution, the National Gallery of Art, the John F. Kennedy 
     Center for the Performing Arts, the National Endowment for 
     the Arts, and the National Endowment for the Humanities.
     Senate Resolution
       The Senate resolution calls for a total of $93.9 billion in 
     BA and $90.4 billion in outlays in 2008 and $490.6 billion in 
     BA and $478.0 billion in outlays over five years. The Senate 
     resolution provides $2.0 billion in 2009 advance funding for 
     Function 500 programs.
       The Senate resolution recognizes that investments in 
     education and training programs are critical to our nation's 
     long-term economic outlook and provides $9.3 billion above 
     the President's 2008 discretionary request for this function, 
     including $2.0 billion in advance 2009 funding. Specifically, 
     the Senate resolution rejects the President's proposed cuts 
     and provides the largest increase since 2002 for elementary 
     and secondary programs, particularly for Title I, the 
     Individuals with Disabilities Education Act (IDEA), and 
     Impact Aid. The Senate resolution provides an increase for 
     Head Start and fully accommodates the President's proposed 
     increases in the maximum Pell grant.
       The Senate resolution provides a deficit-neutral reserve 
     fund to facilitate enactment of legislation to improve 
     college access and affordability. The Senate resolution 
     provides $100 million for summer education programs, and a 
     deficit-neutral reserve fund to facilitate enactment of 
     legislation to provide assistance to States for offering or 
     expanding preschool for children from low-income families. 
     The Senate resolution allows the Chairman of the Budget 
     Committee to revise the levels in the resolution for 
     legislation appropriating up to $17 million for 2008 if the 
     Comptroller General makes certain certifications to Congress 
     regarding the Smithsonian Institution.
     House Amendment
       The House amendment calls for a total of $92.5 billion in 
     BA and $91.1 billion in outlays for 2008 and $484.7 billion 
     in BA and $475.3 billion in outlays over five years. The 
     House amendment specifically rejects the President's cuts to 
     education, including his plan to eliminate many education 
     programs. The amendment also rejects the President's steep 
     cuts to job training and social services programs, including 
     the Community Services Block Grant and the Social Services 
     Block Grant.
       In contrast to the President's funding cuts, the House 
     amendment makes a down payment toward addressing long-
     standing needs in education, training, and social services. 
     To that end, the amendment provides an appropriated program 
     level for Function 500 that is $7.9 billion above the 2008 
     level in the President's budget. Those additional resources 
     include $5.9 billion in 2008 funding and an increase of $2.0 
     billion in advance 2009 funding.
       The House amendment's increased funding could be used for 
     vital programs that help children and adults who most need 
     assistance, including Head Start, Title I and other 
     elementary and secondary education programs authorized under 
     the No Child Left Behind Act, and employment training and 
     national service programs such as VISTA. The additional 
     funding also could bolster the federal government's 
     commitment to cover a growing share of the cost of special 
     education under the Individuals with Disabilities Education 
     Act. Finally, the increased funds could help secure college 
     access, equity, and success for every American by raising the 
     maximum Pell Grant to at least $4,600, maintaining 
     Supplemental Opportunity Educational Grants and the 
     Leveraging Educational Assistance Partnerships, and 
     broadening access to Hispanic-serving institutions, 
     Historically Black Colleges and Universities, and other high-
     quality educational opportunities.
       The House amendment also contains a reserve fund to 
     accommodate legislation that makes college more affordable.
     Conference Agreement
       The conference agreement includes $93.9 billion in BA and 
     $91.0 billion in outlays in 2008 as well as $2.0 billion in 
     advance 2009 funding, and $492.3 billion in BA and $480.1 
     billion in outlays over five years. For 2008, the conference 
     agreement provides $7.5 billion above the President in 
     discretionary BA, plus the additional $2.0 billion in advance 
     BA for 2009. The conference report rejects the President's 
     program eliminations and cuts. Additional funding is provided 
     for investments in educational opportunities, social 
     services, and job training.
       The conference agreement recognizes that funding for 
     education programs has been insufficient to meet the mandates 
     created by federal laws, and, even more important, to ensure 
     that every child receives a world-class education. The 
     agreement envisions significant investments in this area.
       The conference agreement recognizes that early childhood 
     education programs provide a sound return on investment. 
     Despite efforts to increase preschool programs at the state 
     level, the conference agreement acknowledges that many 
     preschool children do not have access to early childhood 
     education programs and further investments should be 
     considered at the federal level. The conference agreement 
     also contains a reserve fund to accommodate legislation that 
     makes college more affordable.

                          Health: Function 550

     Function Summary
       The Health function includes most direct health care 
     service programs as well as funding for anti-bioterrorism 
     activities, national biomedical research, protecting the 
     health of the general population and workers in their places 
     of employment, providing health services for under-served 
     populations, and promoting training for the health care 
     workforce. The major programs in this function include 
     Medicaid, the State Children's Health Insurance Program 
     (SCHIP), health benefits for federal workers and retirees, 
     the National Institutes of Health (NIH), the Food and Drug 
     Administration (FDA), the Health Resources and Services 
     Administration (HRSA), the Centers for Disease Control and 
     Prevention (CDC), the Substance Abuse and Mental Health 
     Services Administration (SAMHSA), the Indian Health Service 
     (IHS), and the Agency for Healthcare Research and Quality.
     Senate Resolution
       The Senate resolution calls for a total of $291.3 billion 
     in BA and $290.2 billion in outlays for 2008, and $1.7 
     trillion in BA and $1.7 trillion in outlays over five years. 
     The Senate resolution includes increases above the

[[Page H5109]]

     2007 enacted level adjusted for inflation for NIH, HRSA, CDC, 
     FDA, and IHS. Significant increases for Community Health 
     Centers and health professions within HRSA are also included. 
     The Senate resolution assumes funding for the last phase of 
     HHS' National Strategy for Pandemic Influenza. The resolution 
     rejects the President's proposed $146 million cut for Rural 
     Health Activities in HRSA. The resolution also supports 
     funding demonstration programs to provide patient navigator 
     services as authorized in the Patient Navigator, Outreach, 
     and Chronic Disease Prevention Act under HRSA. In addition, 
     the Senate resolution contains various health care related 
     deficit-neutral reserve funds, including a reserve fund for 
     SCHIP legislation.
     House Amendment
       The House amendment calls for a total of $286.8 billion in 
     BA and $286.3 billion in outlays for 2008 and $1.6 trillion 
     in BA and outlays over five years. The discretionary 
     resources for Function 550 for 2008 represent an increase 
     over both the 2007 level and the President's request. The 
     House amendment increases resources for public health 
     programs to provide for advances in science, improvements in 
     health, access to quality health care for underserved 
     populations, and other critical programs.
       Programs in Function 550 are also addressed in the House 
     amendment's deficit-neutral reserve funds for SCHIP and for 
     Transitional Medical Assistance.
     Conference Agreement
       The conference agreement includes a total of $287.5 billion 
     in BA and $286.4 billion in outlays for 2008, and $1.6 
     trillion in BA and $1.6 trillion in outlays over five years. 
     In addition to increases for other health agencies, the 
     conference agreement includes significant increases for 
     Community Health Centers and the National Health Service 
     Corps within HRSA as well as funding for patient navigator 
     services. The conference agreement also contains several 
     health care related deficit-neutral reserve funds, including 
     a reserve fund for SCHIP legislation.

                         Medicare: Function 570

     Function Summary
       The Medicare function includes funding to administer and to 
     provide benefits under the Medicare program. Medicare is a 
     federal health insurance program that currently covers 43 
     million Americans aged 65 and older, as well as younger 
     adults who are disabled or suffer from end-stage renal 
     disease.
       Congress provides an annual appropriation for the costs of 
     administering Medicare, including resources to conduct 
     program integrity activities to guard against improper 
     payments, fraud, and abuse. The remainder of spending in this 
     function is mandatory and reflects payments to health care 
     providers and private insurance plans, as well as beneficiary 
     premiums and other receipts and payments to the Medicare 
     trust funds, under the Part A Hospital Insurance (HI) 
     program, the Part B Supplementary Medical Insurance (SMI) 
     program, the Part C Medicare Advantage program, and the Part 
     D Prescription Drug program.
     Senate Resolution
       The Senate resolution calls for a total of $390.0 billion 
     in BA and $390.0 billion in outlays for 2008, and $2.2 
     trillion in BA and $2.2 trillion in outlays over five years. 
     For 2008, the discretionary funding levels in this function 
     include a discretionary cap adjustment of up to $383 million 
     for program integrity activities of the Health Care Fraud and 
     Abuse Control (HCFAC program) to address improper payments, 
     fraud, and abuse in the Medicare program. In addition, the 
     mandatory funding levels in this function assume Medicare 
     savings of $15.0 billion over five years from reducing 
     certain overpayments to health care providers. Specific 
     policies to enact these savings will be determined by the 
     Senate Finance Committee. The function also assumes an 
     additional savings of $400 million over five years to offset 
     SCHIP shortfall legislation.
     House Amendment
       The House amendment reflects a total of $389.6 billion in 
     BA and $389.7 billion in outlays in 2008, and $2.2 trillion 
     in BA and $2.2 trillion in outlays over five years. It 
     assumes the extension of Medicare premium assistance for 
     qualified individuals with incomes between 120 and 135 
     percent of the federal poverty level and limited financial 
     resources. The amendment assumes that savings from Medicare 
     program efficiency improvements will offset the costs of 
     extending the premium assistance program as well as other 
     initiatives to improve the Medicare program for 
     beneficiaries.
       The House amendment assumes targeted assistance to 
     hospitals with 100 beds or more that have faced a reduction 
     in Medicare disproportionate share hospital payments due to 
     assignment to a Micropolitan area.
       The amendment accommodates a discretionary cap adjustment 
     of $183 million for additional activities aimed at detecting 
     and preventing Medicare fraud. The Health Care Fraud and 
     Abuse Control program--a joint effort of the Department of 
     Health and Human Services, the HHS Office of Inspector 
     General, and the Department of Justice--generated roughly 
     $4 in program savings for every dollar spent in 2004 and 
     2005.
       The House amendment also contains a reserve fund to 
     accommodate legislation for Medicare program improvements.
     Conference Agreement
       The conference agreement reflects a total of $389.6 billion 
     in BA and $389.7 billion in outlays in 2008, and $2.2 
     trillion in BA and $2.2 trillion in outlays over five years. 
     Discretionary and mandatory spending levels in this function 
     are consistent with the CBO baseline funding levels.
       For fiscal year 2008, the discretionary funding levels in 
     Function 920 include a discretionary cap adjustment of up to 
     $383 million for program integrity activities of the Health 
     Care Fraud and Abuse Control (HCFAC) program, to address 
     improper payments, fraud and abuse in the Medicare program.

                     Income Security: Function 600

     Function Summary
       The Income Security function contains a range of income 
     security programs including: (1) major cash and in-kind 
     means-tested entitlements; (2) general retirement, 
     disability, and pension programs excluding Social Security 
     and veterans' compensation programs; (3) federal and military 
     retirement programs; (4) unemployment compensation; (5) low-
     income housing programs; and (6) other low-income support 
     programs. Major federal entitlement programs in this function 
     include unemployment insurance, food stamps, child nutrition, 
     Temporary Assistance to Needy Families (TANF), foster care, 
     child support enforcement, child care, Supplemental Security 
     Income, and spending for the refundable portion of the Earned 
     Income Credit.
     Senate Resolution
       The Senate resolution calls for a total of $379.8 billion 
     in BA and $383.6 billion in outlays for 2008, and $2.0 
     trillion in BA and $2.0 trillion in outlays over five years. 
     The Senate resolution includes increases for the Low-Income 
     Home Energy Assistance Program to continue providing heating 
     and cooling assistance to over five million low income 
     households, including the working poor, disabled persons, 
     elderly, and families with young children. The Senate 
     resolution also includes a deficit-neutral reserve fund to 
     provide up to an additional $5.0 billion in mandatory child 
     care funding.
     House Amendment
       The House amendment calls for a total of $379.9 billion in 
     BA and $383.5 billion in outlays for 2008 and $2.0 trillion 
     in BA and outlays over five years. The House amendment 
     provides increased funding that could be used to meet urgent 
     needs related to Hurricane Katrina recovery and to begin 
     addressing long-ignored challenges facing children and 
     families, including large backlogs in the Social Security 
     disability system. The amendment also includes a deficit-
     neutral reserve fund to facilitate the reauthorization of the 
     Farm Bill, providing resources for such objectives as to 
     secure an economic safety net for agricultural producers, 
     conserve our natural resources, and address nutrition needs.
     Conference Agreement
       The conference agreement includes a total of $380.8 billion 
     in BA and $384.3 billion in outlays for 2008, and $2.0 
     trillion in BA and $2.0 trillion in outlays over five years. 
     The total includes increased funding for the Low-Income Home 
     Energy Assistance Program, critical Hurricane Katrina 
     recovery efforts, and other challenges, including a reduction 
     of Social Security disability backlogs. The total Income 
     Security funding level in the conference report (including 
     Function 920) also assumes the President's full request for a 
     cap adjustment for program integrity efforts, including 
     additional funding for in-person reemployment and eligibility 
     assessments and unemployment insurance improper payment 
     reviews, but does not assume enactment of proposals which 
     would adversely affect workers who have received unemployment 
     benefits. The conference agreement also includes a deficit-
     neutral reserve fund to provide up to an additional $5.0 
     billion in mandatory child care funding and a farm bill 
     reserve fund which accommodates nutrition needs.

                     Social Security: Function 650

     Function Summary
       The Social Security function includes funding for the Old-
     Age, Survivors, and Disability Insurance (OASDI) programs, 
     which provide earned Social Security benefits to nearly 50 
     million eligible retired workers, disabled persons, and their 
     spouses and survivors. In addition, this function provides 
     funding to the Social Security Administration (SSA) and the 
     Office of the Inspector General (OIG) to administer the 
     Social Security program and ensure program integrity.
       Under provisions of the Congressional Budget Act and the 
     Budget Enforcement Act, the Old-Age and Survivors Insurance 
     (OASI) trust fund and the Disability Insurance (DI) trust 
     fund are off-budget and do not appear in the budget 
     resolution totals. A small portion of spending in Function 
     650, the general fund transfer of income taxes on Social 
     Security benefits to the trust funds, is considered on-budget 
     and appears in the budget resolution totals.
     Senate Resolution
       The Senate resolution calls for $19.6 billion in on-budget 
     BA and outlays for 2008, and $121.8 billion in on-budget BA 
     and outlays over five years. (The corresponding figures on a 
     unified basis are $615.3 billion in BA and $612.8 billion in 
     outlays for 2008 and $3.4 trillion in BA and outlays over 
     five years.) This spending reflects the general fund transfer 
     of

[[Page H5110]]

     income taxes on Social Security benefits to the trust funds.
       For 2008, the Senate resolution provides $5.1 billion in BA 
     and $5.1 billion in outlays for SSA administrative expenses, 
     as outlined in section 102(c) of the resolution, which 
     represents a $297 million increase over the President's 
     request. The additional funding is intended to help address 
     the serious and growing backlog of Social Security disability 
     claims and hearings.
     House Amendment
       The House amendment reflects $19.6 billion in on-budget BA 
     and outlays for 2008, and $121.8 billion in on-budget BA and 
     outlays over five years. (The corresponding figures on a 
     unified basis are $615.0 billion in BA and $612.6 billion in 
     outlays for 2008 and $3.4 trillion in BA and outlays over 
     five years.) It rejects the President's private account 
     proposal for Social Security.
       The administrative budget for the Social Security 
     Administration (SSA) includes resources in Function 570 
     (Medicare) and Function 600 (Income Security) as well as 
     Function 650. The House amendment assumes a $9.9 billion 
     discretionary funding level for SSA. The additional resources 
     will prevent increases in the backlogs of disability 
     decisions and hearings that would occur under the President's 
     budget. The House amendment will enable SSA to address the 
     significant number of individuals waiting for disability and 
     hearing decisions.
       The House amendment also accommodates an additional $213 
     million through a discretionary cap adjustment for program 
     integrity initiatives. The cap adjustment allows the agency 
     to conduct an increasing number of Continuing Disability 
     Reviews (CDRs) and Supplemental Security Income 
     redeterminations.
     Conference Agreement
       The conference agreement includes $19.6 billion in on-
     budget BA and outlays for 2008, and $121.8 billion in on-
     budget BA and outlays over five years. (The corresponding 
     figures on a unified basis are $615.0 billion in BA and 
     $612.6 billion in outlays for 2008 and $3.4 trillion in BA 
     and outlays over five years.) The discretionary and mandatory 
     funding levels in this function are consistent with the CBO 
     baseline.
       For 2008, the conference agreement provides total net 
     resources for the administrative expenses of SSA and the OIG 
     (across all relevant functions) of $10.1 billion, $430 
     million above the President's requested level. The total SSA 
     funding level in the conference agreement assumes both the 
     President's full request for a cap adjustment in Function 920 
     for program integrity efforts (including continuing 
     disability reviews (CDRs) and SSI redeterminations) as well 
     as additional resources in Function 600 to address the 
     disability hearings and claims backlog.

              Veterans Benefits and Services: Function 700

     Function Summary
       The Veterans Benefits and Services function covers the 
     programs of the Department of Veterans Affairs (VA), 
     including veterans' medical care, compensation and pensions, 
     education and rehabilitation benefits, and housing programs. 
     It also includes the Department of Labor's Veterans' 
     Employment and Training Service, the United States Court of 
     Appeals for Veterans Claims, and the American Battle 
     Monuments Commission.
     Senate Resolution
       The Senate resolution calls for a total of $85.3 billion in 
     BA and $84.4 billion in outlays for 2008, and $448.4 billion 
     in BA and $446.8 billion in outlays over five years. The 
     Senate resolution provides $43.1 billion in BA in 2008 for 
     discretionary veterans' programs, including medical care. 
     This amount is $3.6 billion more than the President's 
     proposed funding level and represents 98 percent of the level 
     requested in The Independent Budget, a plan developed by four 
     leading veterans' groups. The funding in the Senate 
     resolution will ensure that the Veterans Health 
     Administration within VA can provide the highest quality 
     health care for all veterans.
       In 2005, the President's budget underfunded the Veterans 
     Health Administration, and VA was forced to ask Congress for 
     two supplemental funding requests. The Senate resolution 
     provides full funding to ensure that VA can meet its 
     obligations to veterans.
       The Senate supports the determination that robust resources 
     are needed by VA to address the backlog and delay in the 
     disability evaluation and claims process, and that funding 
     should be dedicated to address and improve this process.
     House Amendment
       The House amendment reflects a total of $85.2 billion in BA 
     and $82.8 billion in outlays for 2008, and $452.8 billion in 
     BA and $448.2 billion in outlays over five years. For 2008, 
     the House amendment provides $6.6 billion of discretionary BA 
     over the 2007 level, for a level that is $3.5 billion above 
     the 2008 funding in the President's budget. The amendment 
     reflects the high priority of adequately funding veterans 
     programs. It rejects the veterans' health care enrollment 
     fees and co-payment increases that were imposed by the 
     President's budget.
       The House amendment provides full funding to support 
     excellent health care for veterans and current service 
     members. In particular, the House amendment provides funding 
     to begin implementing future recommendations of the 
     President's Commission on Care for America's Returning 
     Wounded Warriors (the bi-partisan ``Walter Reed Commission'') 
     and other United States Government investigations into 
     military and veterans' health care facilities and services.
       The House amendment provides additional funding in Function 
     700 above the President's requested levels for 2008 to 
     address important priorities including veterans' mental 
     health, post-traumatic stress disorder, traumatic brain 
     injury, and spinal cord injury. The amendment also has 
     additional funding for disability compensation claims 
     processing so that VA can significantly reduce the inventory 
     of pending claims.
     Conference Agreement
       The conference agreement provides a total of $85.3 billion 
     in BA and $84.4 billion in outlays for 2008 and $452.8 
     billion in BA and $450.9 billion in outlays over five years. 
     The conference agreement provides $43.1 billion in 2008 for 
     discretionary veterans' programs, including medical care. 
     This amount is $6.7 billion more than the 2007 enacted level 
     and $3.6 billion more than the President's proposed funding 
     level for 2008. This level is consistent with the Independent 
     Budget, a plan developed by four leading veterans' groups, 
     and recommendations of the American Legion.

                Administration of Justice: Function 750

     Function Summary
       The Administration of Justice function includes funding for 
     federal law enforcement activities at the Department of 
     Justice (DOJ) including criminal investigations by the 
     Federal Bureau of Investigation (FBI) and the Drug 
     Enforcement Agency (DEA). The function also includes funding 
     for border enforcement by the Department of Homeland Security 
     (DHS). Additionally, the function includes funding for civil 
     rights enforcement and prosecution; federal block, 
     categorical, and formula law enforcement grant programs to 
     state and local governments; prison construction and 
     operation; the United States Attorneys; and the federal 
     judiciary.
     Senate Resolution
       The Senate resolution calls for a total of $48.8 billion in 
     BA and $47.1 billion in outlays for 2008, and $242.8 billion 
     in BA and $242.9 billion in outlays over five years. This 
     level restores cuts proposed in the President's budget and 
     provides additional resources for several law enforcement 
     grant programs such as COPS, including meth hotspot grants, 
     and the Edward Byrne Memorial Justice Assistance Grant 
     program. In addition, the Senate resolution restores cuts and 
     provides additional resources to the State Criminal Alien 
     Assistance Program. The Senate resolution also includes 
     increases in funding proposed in the President's budget for 
     border security.
     House Amendment
       The House amendment reflects a total of $46.9 billion in BA 
     and $46.2 billion in outlays in 2008, and $238.2 billion in 
     BA and $238.3 billion outlays over five years. The House 
     amendment rejects the cuts to local law enforcement and first 
     responders in the President's budget, including cuts to the 
     Edward Byrne Memorial Justice Assistance Grant program. The 
     amendment provides funding above the President's budget level 
     for 2008 for that purpose and for purposes such as protecting 
     the borders and funding the 9/11 Commission recommendations.
     Conference Agreement
       The conference agreement includes a total of $48.0 billion 
     in BA and $47.1 billion in outlays for 2008, and $246.8 
     billion in BA and $246.4 billion in outlays over five years. 
     The agreement continues funding for local law enforcement, 
     including Edward Byrne Memorial Justice Assistance Grants and 
     COPS grants. In addition, the agreement also provides 
     resources to help meet the 9/11 Commission recommendations 
     and to protect the borders.

                    General Government: Function 800

     Function Summary
       The General Government function consists of the activities 
     of the Legislative Branch, the Executive Office of the 
     President, general tax collection and fiscal operations of 
     the Department of the Treasury (including the IRS), the 
     Office of Personnel Management, the property and personnel 
     costs of the General Services Administration, and general 
     purpose fiscal assistance to states, localities, the District 
     of Columbia, and U.S. territories.
     Senate Resolution
       The Senate resolution calls for $18.8 billion in BA and 
     $19.1 billion in outlays for 2008 and $98.6 billion in BA and 
     $98.6 billion in outlays over five years. The Senate 
     resolution fully funds the President's budget request for the 
     IRS, including additional resources available through a 
     discretionary cap adjustment that directs $406 million to IRS 
     enforcement activities. The Senate resolution includes 
     reserve funds to accommodate legislation to reduce the 
     deficit by reducing improper payments and requiring recovery 
     audits. It also includes a deficit-neutral reserve fund to 
     accommodate legislation that reauthorizes the Secure Rural 
     Schools and Community Self-Determination Act of 2000. The 
     expiration of this law would have a significant impact on 
     rural communities. The Senate resolution also includes 
     funding for a Commission on Budgetary Accountability and 
     Review of Federal Agencies.
     House Amendment
       The House amendment reflects a total of $18.6 billion in BA 
     and $19.0 billion in outlays

[[Page H5111]]

     for 2008 and $99.8 billion in BA and $99.7 billion in outlays 
     over five years. The House amendment includes a program 
     integrity initiative to increase Internal Revenue Service tax 
     compliance efforts to collect unpaid taxes from those who are 
     not paying what they owe. The funding in this function is 
     adequate to provide for the reestablishment of the Office of 
     Technology Assessment. The amendment also includes a deficit-
     neutral reserve fund to accommodate legislation that 
     reauthorizes the Secure Rural Schools and Community Self-
     Determination Act of 2000.
     Conference Agreement
       The conference agreement includes $18.6 billion in BA and 
     $19.0 billion in outlays for 2008, and $99.7 billion in BA 
     and $99.6 billion in outlays over five years. It fully funds 
     the President's budget request for the IRS, including 
     additional resources available through a discretionary cap 
     adjustment (included in Function 920) that directs $406 
     million to IRS enforcement activities. The conference 
     agreement includes a deficit-neutral reserve fund to 
     accommodate legislation that provides for the reauthorization 
     of the Secure Rural Schools and Community Self-Determination 
     Act of 2000, or makes changes to the Payments in Lieu of 
     Taxes Act of 1976, or both.

                       Net Interest: Function 900

     Function Summary
       The Net Interest function is entirely mandatory with no 
     discretionary components. It consists primarily of the 
     interest paid by the federal government to private and 
     foreign government holders of U.S. Treasury securities. It 
     includes the interest on the public debt after deducting the 
     interest income received by the federal government from trust 
     fund investments, loans and cash balances, and earnings of 
     the National Railroad Retirement Investment Trust.
       The Federal government's net interest payments on its debt 
     increased by 48 percent between 2003 and 2006 and is now one 
     of the largest components of the federal budget.
     Senate Resolution
       The Senate resolution calls for BA and outlays of $255.5 
     billion in unified net interest payments in 2008 and a total 
     of $1.4 trillion over five years.
     House Amendment
       The House amendment calls for BA and outlays of $254.6 
     billion in unified net interest payments in 2008 and a total 
     of $1.4 trillion over five years.
     Conference Agreement
       The conference agreement includes BA and outlays of $255.7 
     billion in unified net interest payments in 2008 and a total 
     of $1.4 trillion over five years.

                        Allowances: Function 920

     Function Summary
       The Allowances function is used for planning purposes to 
     address the budgetary effects of proposals or assumptions 
     that cross several budget functions. Once such changes are 
     enacted, the budgetary effects are distributed to the 
     appropriate budget function.
     Senate Resolution
       The Senate resolution calls for a total of -$16.7 billion 
     in BA and -$7.5 billion in outlays for 2008, and -$46.5 
     billion in BA and -$38.1 billion in outlays over five years.
     House Amendment
       The House amendment did not include any spending or cuts in 
     Function 920.
     Conference Agreement
       The conference agreement includes a total of -$6.4 billion 
     in BA and -$2.2 billion in outlays for 2008, and -$35.2 
     billion in BA and -$30.0 billion in outlays over five years. 
     These funding levels reflect adjustments for program 
     integrity and other non-security adjustments.

            Undistributed Offsetting Receipts: Function 950

     Function Summary
       The Undistributed Offsetting Receipts function includes 
     major offsetting receipt items that would distort the funding 
     levels of other functional categories if they were 
     distributed to them. Examples of such items include the 
     employer share of federal employee retirement benefits, outer 
     continental shelf rents and royalties, and the sale of major 
     assets.
     Senate Resolution
       The Senate resolution calls for unified undistributed 
     offsetting receipts of -$84.7 billion in BA and outlays for 
     2008 and -$422.1 billion over five years. That amount 
     generally matches CBO's baseline estimate of undistributed 
     offsetting receipts, with the exception that it assumes -$775 
     million in 2008 and -$3.1 billion over the 2008-2012 period 
     in additional offsetting receipts from legislation to provide 
     a remedy for errors in certain oil and gas leases.
     House Amendment
       The House amendment represents CBO's baseline estimate of 
     unified undistributed offsetting receipts of -$83.9 billion 
     in BA and outlays for 2008 and -$419.0 billion over five 
     years.
     Conference Agreement
       The conference agreement includes a total of unified 
     undistributed offsetting receipts of -$83.9 billion in BA and 
     outlays for 2008 and -$419.0 billion over five years.

        Overseas Deployments and Other Activities: Function 970

     Function Summary
       This is a new function included in the House amendment, 
     consisting of funding for overseas deployments and other 
     activities.
     Senate Resolution
       The Senate resolution did not include Function 970.
     House Amendment
       The House amendment includes the House-passed supplemental 
     for 2007 (H.R. 1591) in Function 970 and, as a placeholder, 
     accommodates up to the President's funding levels for 
     overseas deployments and related activities in 2008 and 2009.
     Conference Agreement
       The Senate recedes to the House amendment to include 
     Function 970. As a placeholder, the conference agreement's 
     levels accommodate the President's requests for overseas 
     deployments and other activities for 2008 and 2009, as well 
     as the conference agreement for H.R. 1591, the supplemental 
     appropriations bill for 2007 (excluding outyear changes in 
     mandatory programs).

                           Budget Enforcement

     Senate Resolution
       Sec. 201. Paygo
       Section 201 of the Senate-passed resolution would restore 
     the strong paygo, or pay-as-you-go, rule in the Senate. The 
     paygo rule requires that new mandatory spending and tax cuts 
     be offset or get 60 votes. Reinstating a strong paygo rule 
     represents a crucial first step in restoring fiscal 
     discipline. Paygo was instrumental in our turning deficits 
     into surpluses in the 1990s.
       Paygo does not prohibit new mandatory spending or new tax 
     cuts. It simply says that they should be paid for so that the 
     deficit isn't worsened. Paygo ensures that if something is 
     not paid for, it can only pass if it has broad bipartisan 
     support.
       The current paygo rule, which expires on September 30, 
     2008, includes a loophole that exempts all legislation 
     assumed in any budget resolution. The Senate resolution would 
     eliminate this loophole and apply paygo to all new mandatory 
     spending and revenue legislation. It would extend the 
     stronger paygo rule through 2017 and effectively repeal the 
     current, weaker version of the paygo rule. Consistent with 
     ending this loophole, the Senate resolution assumes that all 
     existing balances on the Congressional pay-as-you-go ledger 
     would be eliminated, and the scorecard reset to zero for all 
     time periods.
       The Senate resolution also clarifies language in the paygo 
     rule which prohibits any net savings enacted in any bill 
     pursuant to a reconciliation instruction from being made 
     available on the paygo ledger. In 1993, the Senate originally 
     created the paygo rule as a provision in the FY1994 budget 
     resolution (H. Con. Res. 64), specifically for the purpose of 
     preventing the deficit reduction expected to be achieved in a 
     subsequent reconciliation bill from being used to offset the 
     costs of any new mandatory spending or revenue legislation. 
     The Senate resolution restores this original intent, by 
     clarifying that savings enacted in any reconciliation bill 
     shall never be placed on the paygo ledger and used as offsets 
     for another reconciliation bill (even if enacted pursuant to 
     reconciliation instructions in the same budget resolution) or 
     as offsets for any other legislation. For paygo purposes, all 
     net savings enacted pursuant to reconciliation are to be 
     dedicated solely to deficit reduction.
       Sec. 202. Point of Order Against Reconciliation Legislation 
           That Would Increase the Deficit or Reduce a Surplus
       Section 202 of the Senate resolution creates a new 60-vote 
     point of order against reconciliation measures that would 
     cause or increase an on-budget deficit or decrease an on-
     budget surplus. Reconciliation is a fast-track process that 
     was intended to be used for deficit reduction. Unfortunately, 
     in recent years the reconciliation process has been abused, 
     as a fast-track means of enacting legislation that has 
     dramatically worsened deficits and increased our debt.
       Sec. 203. Point of Order Against Long-Term Deficit 
           Increases
       Section 203 of the Senate resolution establishes a 60-vote 
     point of order against legislation that would cause a net 
     deficit increase in excess of $5.0 billion (including changes 
     in revenues and mandatory spending, but excluding debt 
     service) in any of the four ten-year periods 2018-2027, 2028-
     2037, 2038-2047, or 2048-2057. The provision sunsets at the 
     end of 2017, and effectively repeals the long-term spending 
     point of order in Section 407 of H. Con. Res. 95, the fiscal 
     year 2006 budget resolution conference report.
       Sec. 204. Point of Order Against Emergency Designations
       Under Section 204 of the Senate resolution, all emergency 
     designations would be subject to an emergency designation 
     point of order, which can only be waived with 60 votes.
       Sec. 205. Extension of 60-Vote Enforcement
       Section 205 of the Senate resolution extends the current 
     60-vote enforcement of existing budgetary points of order 
     through 2017.
       Sec. 206. Advance Appropriations
       Section 206 of the Senate resolution would provide a 
     supermajority point of order against appropriations in fiscal 
     year 2008 bills that would first become effective in any year 
     after fiscal year 2008, and against appropriations in fiscal 
     year 2009 bills that would first become effective in any year 
     after 2009. It does not apply against appropriations for

[[Page H5112]]

     the Corporation for Public Broadcasting, nor does it apply 
     against changes in mandatory programs or deferrals of 
     mandatory budget authority from one year to the next. There 
     is an exemption for each of fiscal years 2008 and 2009 of up 
     to $25.2 billion for the following:

     Labor, HHS:
       Employment and Training Administration
       Education for the Disadvantaged
       School Improvement
       Children and Family Services (Head Start)
       Special Education
       Vocational and Adult Education
     Financial Services and General Government: Payment to Postal 
     Service
     Transportation, Housing and Urban Development: Section 8 
     Renewals
       Sec. 207. Discretionary Spending Caps
       Currently, there are no discretionary spending limits for 
     any fiscal year. Section 207 of the Senate resolution would 
     strengthen fiscal responsibility by establishing 
     discretionary spending limits for 2007 and 2008, and enforce 
     them with a point of order in the Senate that could only be 
     waived with 60 votes.
       Section 207 of the Senate resolution permits adjustments to 
     the discretionary spending limits in 2008 for program 
     integrity initiatives, including Social Security 
     Administration continuing disability reviews and Supplemental 
     Security Income redeterminations, enhanced Internal Revenue 
     Service tax enforcement to address the tax gap, 
     appropriations for Health Care Fraud and Abuse Control 
     (HCFAC) program at the Department of Health and Human 
     Services, and unemployment insurance improper payment 
     reviews. It also provides for adjustments in 2008 and 2009 
     for war-related expenses.
       Sec. 208. Inapplicability of Previous Allocations
       Because the Senate resolution establishes new discretionary 
     spending limits for 2007 and 2008 and new committee spending 
     allocations pursuant to section 302(a) of the Congressional 
     Budget Act of 1974, Section 208 of the Senate resolution 
     clarifies that the ``deeming'' provisions of last year's 
     emergency supplemental in Section 7035 of Public Law 109-234 
     shall no longer apply in the Senate.
       Sec. 209. Point of Order To Save Social Security First
       Section 209 of the Senate resolution creates a 60-vote 
     point of order requiring the President to submit a 
     legislative proposal to Congress and requiring Congress to 
     enact legislation that would ensure the long-term solvency of 
     Social Security, before Congress considers any legislation 
     that would worsen budget deficits and weaken the solvency of 
     Social Security.
       Sec. 210. Point of Order Against Legislation That Raises 
           Income Tax Rates
       Section 210 of the Senate resolution would create a 60-vote 
     point of order against any legislation that includes a 
     Federal income tax rate increase.
       Sec. 211. Circuit Breaker To Protect Social Security
       Section 211 of the Senate resolution would create a 60-vote 
     point of order, in any year in which CBO projects an on-
     budget deficit for the budget year or any subsequent fiscal 
     year, against a budget resolution for that year (and 
     amendments thereto) which would fail to reduce on-budget 
     deficits relative to CBO's projections and put the budget on 
     a path to achieve on-budget balance within five years. There 
     is an exception during times of war and low economic growth.
       Sec. 212. Point of Order--20% Limit on New Direct Spending 
           in Reconciliation Legislation
       Section 212 of the Senate resolution would create a 60-vote 
     point of order against provisions of any reconciliation 
     legislation (and provisions of any amendment thereto) that 
     would increase outlays if the effect of all the provisions in 
     any committee's jurisdiction would create gross new direct 
     spending exceeding 20% of the total savings instruction to 
     that committee.
       Sec. 213. Point of Order Against Legislation That Raises 
           Income Tax Rates for Small Businesses, Family Farms, or 
           Family Ranches
       Section 213 of the Senate resolution would create a 60-vote 
     point of order against legislation that includes a Federal 
     income tax rate increase on incomes generated by small 
     businesses, family farms, or family ranches.
       Sec. 214. Point of Order Against Provisions of 
           Appropriations Legislation That Constitute Changes in 
           Mandatory Programs With Net Costs
       Section 214 of the Senate resolution would create a 60-vote 
     point of order against provisions of appropriations 
     legislation that would have been estimated as affecting 
     direct spending or receipts were they included in legislation 
     other than appropriations legislation, if such provision has 
     a net cost over the total of the period of the current year, 
     the budget year, and all fiscal years covered under the most 
     recently-adopted concurrent resolution on the budget.
       Sec. 215. Disclosure of Interest Costs
       Section 215 of the Senate resolution is a 60-vote point of 
     order against direct spending and revenue legislation that 
     fails to include a CBO estimate of the cost of the debt 
     servicing that would be caused by such legislation.
       Sec. 325. Application and Effect of Changes in Allocations 
           and Aggregates
       Section 325 of the Senate resolution details the adjustment 
     procedures required to accommodate legislation provided for 
     in this resolution. This section provides that the 
     adjustments shall apply while the legislation is under 
     consideration and take effect upon enactment of the 
     legislation. In addition, the section requires the 
     adjustments to be printed in the Congressional Record.
       The section also notes that, for purposes of enforcement, 
     aggregate and allocation levels resulting from adjustments 
     made pursuant to this resolution will have the same effect as 
     if adopted in the original levels of Title I of this 
     resolution. This section also provides that the Committee on 
     the Budget shall determine the budgetary levels and estimates 
     which are required to enforce points of order under the 
     Congressional Budget Act.
       Sec. 326. Adjustments To Reflect Changes in Concepts and 
           Definitions
       Section 326 of the Senate resolution requires the chairman 
     of the Committee on the Budget to adjust levels and 
     allocations in this resolution upon enactment of legislation 
     that changes concepts or definitions.
       Sec. 327. Exercise of Rulemaking Powers
       Section 327 of the Senate resolution provides that, once 
     adopted, the provisions of the resolution are incorporated 
     into the rules of the Senate and shall supersede inconsistent 
     rules. The section recognizes the constitutional right of the 
     Senate to change those rules at any time.
     House Amendment
       Sec. 301. Program Integrity Initiatives
       Section 301 of the House amendment provides for specific 
     allocation adjustments for the Committee on Appropriations 
     when the Committee reports legislation that includes 
     increased appropriations for the following four program 
     integrity initiatives: (1) continuing disability reviews and 
     Supplemental Security Income redeterminations for the Social 
     Security Administration; (2) improved compliance with the 
     provisions of the Internal Revenue Code; (3) the Health Care 
     Fraud and Abuse Control program at the Department of Health 
     and Human Services; and (4) unemployment insurance improper 
     payment reviews.
       The adjustments under this section are intended to do no 
     more than provide additional administrative funding for 
     current program integrity activities to eliminate errors or 
     fraud in the operation of a number of federal programs and 
     compliance with federal tax laws. For example, the adjustment 
     for unemployment compensation programs is provided to 
     increase limited administrative funding for current program 
     integrity activities, and not to finance other proposals that 
     would adversely affect workers who have received unemployment 
     benefits.
       The section outlines procedures for these allocation 
     adjustments. In addition, the section directs committees of 
     the House of Representatives to include recommendations for 
     improved governmental performance in views and estimates 
     submitted to the Committee on the Budget pursuant to section 
     301(d) of the Congressional Budget Act.
       Sec. 302. Advance Appropriations
       Section 302 of the House amendment limits the amount and 
     type of advance appropriations for 2009 and 2010. Under this 
     section, advance appropriations for 2009 or 2010 are 
     restricted to $25.6 billion for programs, projects, 
     activities, or accounts identified in the joint explanatory 
     statement of managers that will accompany this resolution. 
     This total reflects an increase of $2.0 billion over the 
     previous limit. The section defines advance appropriations as 
     any new discretionary budget authority provided in a bill or 
     joint resolution making general or continuing appropriations 
     for 2008 that first becomes available for any fiscal year 
     after 2008.
       Sec. 303. Overseas Deployments and Emergency Needs
       Section 303 of the House amendment establishes a procedure 
     whereby provisions or measures reported by the Committee on 
     Appropriations will be exempt from the restrictions under 
     titles III and IV of the Congressional Budget Act of 1974. 
     The exemption will apply if: (1) the Committee determines and 
     designates that amounts appropriated are necessary for 
     overseas deployments and related activities; or, (2) the 
     Committee provides nondefense discretionary appropriations 
     and designates those amounts as necessary to meet emergency 
     needs.
       Sec. 304. Application and Effect of Changes in Allocations 
           and Aggregates
       Section 304 of the House amendment details the allocation 
     and aggregate adjustment procedures that are required to 
     accommodate legislation for the reserve funds and program 
     integrity initiatives in this resolution. This section 
     provides that the adjustments shall apply while the 
     legislation is under consideration and take effect upon 
     enactment of the legislation. In addition, the section 
     requires the adjustments to be printed in the Congressional 
     Record.
       The section also notes that, for purposes of enforcement, 
     aggregate and allocation levels resulting from adjustments 
     made pursuant to this resolution will have the same effect as 
     if adopted in the original levels of Title I of this budget 
     resolution. This section also provides that the Committee on 
     the Budget shall determine the budgetary levels and estimates 
     which are required to enforce points of order under the 
     Congressional Budget Act.

[[Page H5113]]

       Sec. 305. Adjustments To Reflect Changes in Concepts and 
           Definitions
       Section 305 of the House amendment requires the chairman of 
     the Committee on the Budget to adjust levels and allocations 
     in this budget resolution upon enactment of legislation that 
     changes concepts or definitions.
       Sec. 306. Compliance With Section 13301 of the Budgetary 
           Enforcement Act of 1990
       Section 306 of the House amendment provides that 
     administrative expenses of the Social Security Administration 
     shall be part of the annual appropriations process by 
     including those expenses in the Committee on Appropriations' 
     allocation pursuant to Section 302 of the Congressional 
     Budget Act.
       Sec. 307. Exercise of Rulemaking Powers
       Section 307 of the House amendment provides that, once 
     adopted, the provisions of the budget resolution are 
     incorporated into the rules of the House of Representatives 
     and shall supersede inconsistent rules. The section 
     recognizes the constitutional right of the House of 
     Representatives to change those rules at any time.
     Conference Agreement
       In January, the House of Representatives adopted the first-
     ever House of Representatives pay-as-you-go (paygo) rule--
     specifying that any legislative changes to mandatory spending 
     or revenues would have to be done in a deficit-neutral way. 
     Given the serious long-term fiscal challenges including a 
     growing burden of national debt facing our nation, a rigorous 
     enforcement of paygo is especially critical. The House has 
     aggressively enforced the paygo requirement since its 
     passage, and in this resolution the House and Senate reaffirm 
     a commitment to a strict enforcement of the pay-as-you-go 
     rules. The House's commitment to paygo is also reinforced by 
     the tough trigger mechanism contained in Section 321 of the 
     conference agreement and further described in Section 321 of 
     this Statement of Managers.
       The following are the concrete steps the conference report 
     takes to reinforce and extend this commitment to fiscal 
     responsibility:
       First, Section 201 of the conference report toughens the 
     Senate paygo rule, restoring it to the form that existed in 
     the 1990s. This session of Congress will mark the first time 
     ever that both the House and the Senate will be governed by 
     internal rules implementing the pay-as-you-go principle. To 
     ensure that these rules are more effectively enforced, the 
     Senate paygo rule included in this resolution matches the 
     enforcement windows established in the House rule.
       Second, Section 508 of the conference report expresses 
     Congress's commitment to an additional paygo enforcement 
     mechanism: reinstating the statutory paygo rule that was in 
     place in the 1990s and that is widely credited with helping 
     bring the budget from then-record deficits in the early 1990s 
     to the budget surpluses achieved by the end of that decade. 
     Because the conference agreement is a concurrent resolution, 
     separate legislation will be required to implement this 
     policy, but the conference report gives this policy a strong 
     and clear endorsement.
       Third, Section 203 of the conference report contains a 
     Senate point of order that would be imposed against 
     legislation that has a significant deficit impact in any of 
     the four decades (2018-2057) following the ten-year period 
     covered by the House and Senate paygo rules.
       Fourth, Section 321 of the conference report includes a 
     House trigger mechanism to ensure that legislation is 
     fiscally responsible or faces a second procedural hurdle in 
     the House in addition to the paygo rule.
       In all, this conference report implements policies and 
     rules consistent with fiscal responsibility and the pay-as-
     you-go principle, ensuring that they apply to the actions of 
     the entire Congress. The goal is to bring the budget back to 
     balance, something that this conference report achieves in 
     2012.
       Sec. 201. Pay-As-You-Go Point of Order in the Senate
       In Section 201 of the conference agreement, which applies 
     only in the Senate, the Senate insists on, and the House 
     recedes from its disagreement with, Section 201 of the Senate 
     resolution, the paygo point of order in the Senate, with a 
     technical amendment to enforce points of order over two time 
     periods: (1) the period of the current fiscal year, the 
     budget year, and the total of the ensuing four fiscal years 
     following the budget year, and (2) the period of the current 
     fiscal year, the budget year, and the total of the ensuing 
     nine fiscal years following the budget year. These are the 
     time periods for which paygo is enforced in the House.
       As in the past, the paygo rule embodied in Section 201 of 
     the conference agreement requires that new mandatory spending 
     and tax cuts be offset or get 60 votes to waive the point of 
     order. Section 201 strengthens paygo enforcement by 
     eliminating a loophole that previously exempted from the 
     point of order all deficit increases assumed in any budget 
     resolution. Under Section 201, paygo will be applied to all 
     new mandatory spending and revenue legislation that would 
     worsen the deficit in either of the two relevant time 
     periods. It would extend this stronger paygo rule through 
     2017 and effectively repeal the current, weaker version of 
     the paygo rule.
       Consistent with ending this loophole, the Senate resolution 
     assumes that all existing balances on the Congressional pay-
     as-you-go ledger would be eliminated, and the scorecard reset 
     to zero for all time periods.
       Section 201 of the conference agreement also clarifies 
     language in the paygo rule which prohibits any net savings 
     enacted in any bill pursuant to a reconciliation instruction 
     from being made available on the paygo ledger. In 1993, the 
     Senate originally created the paygo rule as a provision in 
     the FY1994 budget resolution (H. Con. Res. 64), specifically 
     for the purpose of preventing the deficit reduction expected 
     to be achieved in a subsequent reconciliation bill from being 
     used to offset the costs of any new mandatory spending or 
     revenue legislation. Section 201 of the conference agreement 
     restores this original intent, by clarifying that savings 
     enacted in any reconciliation bill shall never be placed 
     on the paygo ledger and used as offsets for another 
     reconciliation bill (even if enacted pursuant to 
     reconciliation instructions in the same budget resolution) 
     or as offsets for any other legislation. For paygo 
     purposes, all net savings enacted pursuant to 
     reconciliation are to be dedicated solely to deficit 
     reduction.
       Sec. 202. Senate Point of Order Against Reconciliation 
           Legislation That Would Increase the Deficit or Reduce a 
           Surplus
       The Senate insists on, and the House recedes from its 
     disagreement with, Section 202 of the Senate resolution, with 
     a technical amendment to enforce the point of order over two 
     time periods: (1) the period of the current fiscal year, the 
     budget year, and the total of the ensuing four fiscal years 
     following the budget year, and (2) the period of the current 
     fiscal year, the budget year, and the total of the ensuing 
     nine fiscal years following the budget year. Section 202 
     creates a new point of order against reconciliation measures 
     that would cause or increase an on-budget deficit or decrease 
     an on-budget surplus. It can be waived with 60 votes.
       Sec. 203. Senate Point of Order Against Legislation 
           Increasing Long-Term Deficits
       The Senate insists on, and the House recedes from its 
     disagreement with, Section 203 of the Senate resolution. It 
     establishes a point of order in the Senate against 
     legislation that would cause a net deficit increase in excess 
     of $5.0 billion (including changes in revenues and mandatory 
     spending, but excluding debt service) in any of the four ten-
     year periods 2018-2027, 2028-2037, 2038-2047, or 2048-2057. 
     The point of order can be waived with 60 votes. The provision 
     sunsets at the end of fiscal year 2017, and effectively 
     repeals the long-term spending point of order in Section 407 
     of H. Con. Res. 95, the fiscal year 2006 budget resolution 
     conference report.
       Sec. 204. Emergency Legislation
       In subsection (a) of Section 204 of the conference 
     agreement, which applies only in the Senate, the Senate 
     insists on Section 204 of the Senate resolution with an 
     amendment. Under Section 204(a), emergency designations will 
     be subject to an emergency designation point of order in the 
     Senate, which can be waived with 60 votes. The amendment 
     deleted an exception adopted to the Senate resolution in 
     Amendment 534 offered by Senator DeMint.
       In subsection (b) of Section 204 of the conference 
     agreement, which applies only in the House, the House recedes 
     from its position in Section 303 of the House amendment and 
     concurs with a further amendment, and the Senate agrees to 
     the same. In the House, discretionary appropriations that are 
     designated as emergencies shall not count for the purposes of 
     Titles III and IV of the Congressional Budget Act of 1974. In 
     the House, any provisions designated as emergencies under 
     rules in effect for 2007 will be accommodated under Section 
     204 in this resolution.
       Sec. 205. Extension of Enforcement of Budgetary Points of 
           Order in the Senate
       In Section 205 of the conference agreement, which applies 
     only in the Senate, the Senate insists on Section 205 of the 
     Senate resolution with an amendment, and the House agrees to 
     the same. Section 205 extends 60-vote enforcement of 
     budgetary points of order in the Senate, other than those 
     pursuant to Sections 425 and 303 of the Budget Act, through 
     2017.
       Sec. 206. Point of Order Against Advance Appropriations
       In subsection (a) of Section 206 of the conference 
     agreement, which applies only in the Senate, the Senate 
     insists on, and the House recedes from its disagreement with, 
     Section 206 of the Senate resolution. It provides a 
     supermajority point of order in the Senate against 
     appropriations in fiscal year 2009 bills that would first 
     become effective in any year after fiscal year 2008, and 
     against appropriations in fiscal year 2009 bills that would 
     first become effective in any year after fiscal year 2009. It 
     does not apply against appropriations for the Corporation for 
     Public Broadcasting, nor does it apply against changes in 
     mandatory programs or deferrals of mandatory budget authority 
     from one year to the next. There is an exemption for each of 
     fiscal years 2008 and 2009 of up to $25.2 billion for the 
     following:

      Accounts identified for Advance Appropriations in the Senate

     Labor, HHS:
       Employment and Training Administration
       Education for the Disadvantaged
       School Improvement
       Children and Family Services (Head Start)
       Special Education
       Vocational and Adult Education
     Financial Services and General Government: Payment to Postal 
     Service Transportation,

[[Page H5114]]

     Housing and Urban Development: Section 8 Renewals

       In subsection (b) of Section 206 of the conference 
     agreement, which applies only in the House, the House insists 
     on Section 302 of the House amendment. It defines advance 
     appropriations, and restricts advance appropriations for 
     fiscal years 2009 or 2010 to a total of $25.6 billion for the 
     following accounts:

      Accounts Identified for Advance Appropriations in the House

     Advance Appropriations for Fiscal Year 2009
       Employment and Training Administration
       Education for the Disadvantaged
       School Improvement
       Children and Family Services (Head Start)
       Special Education
       Vocational and Adult Education
       Payment to Postal Service
       Section 8 Renewals
     Advance Appropriations for Fiscal Year 2010
       Corporation for Public Broadcasting
       Sec. 207. Discretionary Spending Limits, Program Integrity 
           Initiatives, and Other Adjustments
       In subsection (a), (b), and ( c) of Section 207 of the 
     conference agreement, which apply only in the Senate, the 
     Senate insists on Section 207 of the Senate resolution with 
     an amendment in the nature of a substitute. Currently, there 
     are no discretionary spending limits for any fiscal year. 
     Section 207 will strengthen fiscal responsibility by 
     establishing discretionary spending limits in the Senate for 
     fiscal years 2007 and 2008, and enforce them with a Senate 
     point of order that can only be waived with 60 votes. It 
     permits adjustments to the discretionary spending limits in 
     the Senate for fiscal year 2008 for program integrity 
     initiatives, including Social Security Administration 
     continuing disability reviews and Supplemental Security 
     Income redeterminations, enhanced Internal Revenue Service 
     tax enforcement to address the tax gap, appropriations for 
     Health Care Fraud and Abuse Control (HCFAC) program at the 
     Department of Health and Human Services, and in-person 
     reemployment and eligibility assessments and unemployment 
     insurance improper payment reviews.
       In subsection (d) of Section 207 of the conference 
     agreement, which applies only in the House, the House insists 
     on Section 301 of the House amendment with an amendment. The 
     House amendment provides for several program integrity 
     adjustments for 2008 in the same areas as in the Senate 
     resolution, including for Social Security Administration 
     continuing disability reviews and Supplemental Security 
     Income redeterminations, enhanced Internal Revenue Service 
     tax enforcement to address the tax gap, appropriations for 
     the Health Care Fraud and Abuse Control (HCFAC) program at 
     the Department of Health and Human Services, and in-person 
     reemployment and eligibility assessments and unemployment 
     insurance improper payment reviews.
       The conference agreement allows for adjustments to be made 
     to the discretionary spending limits in the Senate, 
     aggregates, and 302(a) allocations of the House and Senate 
     Appropriations Committees up to the total budget authority 
     shown in Section 103 (21) for overseas deployments and 
     related activities (and the new outlays flowing therefrom). 
     In the Senate, if additional funding is required beyond the 
     level specified in Section 103 (21), such funding would be 
     provided pursuant to Section 204. In the House, if additional 
     appropriations are required beyond this level, and such 
     additional amounts are specifically designated as necessary 
     for overseas deployments and related activities, then new 
     budget authority, outlays or receipts resulting therefrom 
     shall not count for the purposes of titles III and IV of the 
     Congressional Budget Act of 1974.
       Subsection (e) of Section 207 of the conference agreement, 
     which applies in the House and Senate, directs all House and 
     Senate Committees to include recommendations for improved 
     governmental performance in the views and estimates that they 
     submit to the respective Committees on the Budget under 
     section 301(d) of the Congressional Budget Act.
       Subsection (f) of Section 207 of the conference agreement, 
     which applies in both the House and Senate, allows 
     adjustments to the levels and limits in this resolution to 
     reflect differences between the levels assumed in this 
     resolution and the levels that may ultimately be enacted in 
     2007 supplemental appropriations legislation currently under 
     consideration in Congress. Similar language was included in 
     the conference report on the fiscal year 2004 budget 
     resolution (H. Con. Res. 95, 108th Congress) regarding 2003 
     supplemental appropriations.
       Sec. 208. Inapplicability of Previous Allocations in the 
           Senate
       In Section 208 of the conference agreement, which applies 
     only in the Senate, the Senate insists on, and the House 
     recedes from its disagreement with, Section 208 of the Senate 
     resolution. Because this concurrent resolution on the budget 
     for fiscal year 2008 establishes new discretionary spending 
     limits for fiscal years 2007 and 2008 and new committee 
     spending allocations pursuant to section 302(a) of the 
     Congressional Budget Act of 1974, Section 208 of the Senate 
     resolution clarifies that the ``deeming'' provisions of last 
     year's emergency supplemental in Section 7035 of Public Law 
     109-234 shall no longer apply in the Senate.
       Sec. 209. Senate Point of Order Against Provisions of 
           Appropriations Legislation That Constitute Changes in 
           Mandatory Programs With Net Costs
       In Section 209 of the conference agreement, which applies 
     only in the Senate, the Senate insists on Section 214 of the 
     Senate resolution with a substitute, and the House agrees to 
     the same. Section 209 would create a 60-vote point of order 
     against provisions of appropriations legislation constituting 
     Changes in Mandatory Programs (ChIMPs) that would have been 
     estimated as affecting direct spending or receipts were they 
     included in legislation other than appropriations 
     legislation, if all three of the following conditions are 
     met:
       (1) the provision would increase BA in--
       (a) at least one of the nine fiscal years that follow the 
     budget year, and
       (b) over the period of the total of the budget year and the 
     nine fiscal years following the budget year;
       (2) the provision would increase net outlays over the 
     period of the total of the nine fiscal years following the 
     budget year; and
       (3) the sum total of all changes in mandatory programs in 
     the legislation would increase net outlays as measured over 
     the period of the total of the nine fiscal years following 
     the budget year.
       The point of order does not apply against legislation 
     making supplemental appropriations for fiscal year 2007. Nor 
     does it apply against any ChIMPs that were enacted in each of 
     the three fiscal years prior to the budget year (including 
     those done as a result of the year-long funding resolution 
     enacted for 2007). The point of order works like the Byrd 
     rule in that it applies against individual provisions of 
     legislation rather than against an entire bill, amendment, or 
     conference report. If the point of order is not waived then 
     the offending provision is stricken.
       Sec. 210. Compliance With Section 13301 of the Budget 
           Enforcement Act of 1990
       In Section 210 of the conference agreement, the House 
     recedes from its position in Section 306 of the House 
     amendment and concurs with a further amendment, and the 
     Senate agrees to the same. Subsection (a) of Section 210 
     applies in both the House and Senate. Subsection (b) of 
     Section 210 applies only in the House.
       Sec. 211. Application and Effect of Changes in Allocations 
           and Aggregates
       In Section 211 of the conference agreement, the House 
     insists on, and the Senate recedes from its disagreement 
     with, Section 304 of the House amendment.
       Sec. 212. Adjustments to Reflect Changes in Concepts and 
           Definitions
       In Section 212 of the conference agreement, the House 
     insists on, and the Senate recedes from its disagreement 
     with, Section 305 of the House amendment.
       Sec. 213. Exercise of Rulemaking Powers
       In Section 213 of the conference agreement, the House 
     recedes from its position in Section 307 of the House 
     amendment and concurs with a further amendment, and the 
     Senate agrees to the same.

                             Reserve Funds

     Senate Resolution
       Sec. 301. Deficit-Neutral Reserve Fund for SCHIP 
           Legislation
       Section 301 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     by up to $20.0 billion for SCHIP reauthorization legislation 
     of up to $50.0 billion, so long as the legislation is 
     deficit-neutral over the total of 2007-2012.
       Sec. 302. Deficit-Neutral Reserve Fund for Care of Wounded 
           Service Members
       Section 302 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     for legislation that improves the medical care of or 
     disability benefits for wounded or disabled military 
     personnel or veterans (including the elimination of the 
     offset between Survivor Benefit Plan annuities and veterans' 
     dependency and indemnity compensation), including 
     improvements to the physical disability evaluation system of 
     the Department of Defense to expedite the claims process, 
     provided the legislation is deficit-neutral over the total of 
     2007-2012.
       Sec. 303. Deficit-Neutral Reserve Fund for Tax Relief
       Section 303 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     for one or more pieces of tax relief legislation, including 
     refundable tax relief and extensions of expiring tax relief, 
     such as enhanced charitable giving from IRAs and the 
     reauthorization of the new markets tax credit under section 
     45D of the Internal Revenue Code of 1986 for an additional 
     five years, provided the legislation is deficit-neutral over 
     the total of 2007-2012.
       Sec. 304. Deficit-Neutral Reserve Fund for Comparative 
           Effectiveness Research
       Section 304 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     for legislation to establish a new federal or public-private 
     initiative for comparative effectiveness research, provided 
     the legislation is deficit-neutral over the total of 2007-
     2012.
       Sec. 305. Deficit-Neutral Reserve Fund for Higher Education
       Section 305 of the Senate resolution allows the Chairman of 
     the Budget Committee to

[[Page H5115]]

     revise the levels in the resolution for legislation--
     including tax legislation--that would make higher education 
     more accessible and affordable, provided the legislation is 
     deficit-neutral over the total of 2007-2012.
       Sec. 306. Deficit-Neutral Reserve Fund for the Farm Bill
       Section 306 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     by up to $15.0 billion for legislation which is deficit-
     neutral over the total of 2007-2012 that would do one or more 
     of the following: reauthorize the Food Security and Rural 
     Investment Act of 2002; strengthen agriculture and rural 
     economies and critical nutrition programs; provide 
     agriculture-related tax relief and rural development 
     investment incentives for counties impacted by high rates of 
     out-migration; or improve the environment by reducing 
     dependence on foreign sources of energy through expanded 
     production and use of alternative fuels. This section 
     anticipates that the Farm Bill will ultimately be comprised 
     of titles from more than one committee, and would therefore 
     allow the Chairman to revise multiple committee allocations, 
     and revenue and spending aggregates, to accommodate the 
     legislation.
       Sec. 307. Deficit-Neutral Reserve Fund for Energy 
           Legislation
       Section 307 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     for one or more pieces of legislation--including tax 
     legislation--that would reduce our nation's dependence on 
     foreign sources of energy, expand production and use of 
     alternative fuels and alternative fuel vehicles, promote 
     renewable energy development, improve electricity 
     transmission, encourage responsible development of domestic 
     oil and natural gas resources, or reward conservation and 
     efficiency; provided the legislation is deficit-neutral over 
     the total of 2007-2012.
       Sec. 308. Deficit-Neutral Reserve Fund for Medicare
       Section 308 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     for:
       Prescription drug price negotiation legislation under 
     Medicare Part D, to repeal the non-interference clause in 
     Section 1860D-11(i)(1) of the Social Security Act, while 
     preserving access to prescription drugs and price competition 
     without requiring a particular formulary or instituting a 
     price structure for reimbursement of covered Part D drugs, 
     provided that the legislation is deficit-neutral over 2007-
     2012 and that all savings from the measure must be used 
     either to improve the Part D benefit or to reduce the 
     deficit;
       Legislation to increase the reimbursement rate for 
     physician services under Medicare Part B and that includes 
     financial incentives for physicians to improve the quality 
     and efficiency of items and services furnished to Medicare 
     beneficiaries through the use of consensus-based quality 
     measures, provided that it is deficit-neutral over 2007-2012; 
     and
       Legislation making improvements of up to $5.0 billion to 
     the prescription drug benefit under Medicare Part D, so long 
     as the legislation is deficit-neutral over 2007-2012.
       Sec. 309. Deficit-Neutral Reserve Fund for Small Business 
           Health Insurance
       Section 309 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     for legislation that makes health insurance coverage more 
     affordable or available to small businesses and their 
     employees, without weakening rating rules or reducing covered 
     benefits, provided the legislation is deficit-neutral over 
     the total of 2007-2012.
       Sec. 310. Deficit-Neutral Reserve Fund for County Payments
       Section 310 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     by up to $440 million in 2008 and up to $2.2 billion over the 
     total of 2008-2012 for county payments legislation that 
     reauthorizes the Secure Rural Schools and Community Self-
     Determination Act of 2000, provided the legislation is 
     deficit-neutral over the total of 2007-2012. The 
     expiration of this law would have a significant impact on 
     rural communities.
       Sec. 311. Deficit-Neutral Reserve Fund for Terrorism Risk 
           Insurance Reauthorization
       Section 311 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     for legislation that provides for a continuing federal role 
     in ensuring that terrorism risk insurance remains available 
     after the expiration of the Terrorism Risk Insurance 
     Extension Act, provided the legislation is deficit-neutral 
     over the total of 2007-2012.
       Sec. 312. Deficit-Neutral Reserve Fund for Affordable 
           Housing
       Section 312 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     for legislation that would establish an affordable housing 
     fund financed by the housing government-sponsored 
     enterprises, provided the legislation is deficit-neutral over 
     the total of 2007-2012.
       Sec. 313. Deficit-Neutral Reserve Fund for Receipts From 
           Bonneville Power Administration
       Section 313 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     for legislation that prohibits the Bonneville Power 
     Administration from making early payments on its federal bond 
     debt, provided the legislation is deficit-neutral over the 
     total of 2007-2012. The proposal in the President's budget 
     would have a detrimental impact on electricity rates in the 
     Northwest.
       Sec. 314. Deficit-Neutral Reserve Fund for Indian Claims 
           Settlement
       Section 314 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     for legislation to provide a statutory settlement for Indian 
     trust fund litigation involving the accounting and management 
     of individual Indian trust monies and assets, including the 
     Cobell v. Kempthorne litigation, as well as provisions to 
     offset the cost of the settlement, provided that the 
     legislation is deficit-neutral over the total of 2007-2012.
       Sec. 315. Deficit-Neutral Reserve Fund for Food and Drug 
           Administration
       Section 315 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     for certain legislation affecting the regulatory authority of 
     the Food and Drug Administration (FDA) and authorizing the 
     assessment of user fees, provided that the legislation is 
     deficit-neutral over the total of 2007-2012.
       Sec. 316. Deficit-Neutral Reserve Fund for Health Care 
           Reform
       Section 316 of the Senate resolution provides that if an 
     SCHIP bill is enacted, the Chairman of the Budget Committee 
     may revise the levels in the resolution for legislation to 
     improve health care, provide quality health insurance for the 
     uninsured and underinsured, and protect individuals with 
     current health coverage, provided the legislation is deficit-
     neutral over the total of 2007-2012.
       Sec. 317. Deficit-Neutral Reserve Fund for Enhancement of 
           Veterans' Benefits
       Section 317 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     for legislation to enhance benefits for veterans, including 
     GI educational benefits and services for low-vision and 
     blinded veterans, provided the legislation is deficit-neutral 
     over the total of 2007-2012.
       Sec. 318. Deficit-Neutral Reserve Fund for Long-Term Care
       Section 318 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     for legislation to improve long-term care, provided the 
     legislation is deficit-neutral over the total of 2007-2012.
       Sec. 319. Deficit-Neutral Reserve Fund for Health 
           Information Technology
       Section 319 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     for legislation providing incentives or other support for 
     adoption of modern information technology to improve quality 
     and protect privacy in health care, and for legislation 
     providing for payments based on adherence to accepted 
     clinical protocols identified as best practices, provided the 
     legislation is deficit-neutral over the total of 2007-2012.
       Sec. 320. Deficit-Neutral Reserve Fund for Child Care
       Section. 320 of the Senate resolution allows the Chairman 
     of the Budget Committee to revise the levels in the 
     resolution for legislation to provide up to $5.0 billion to 
     States for child care, provided the legislation is deficit-
     neutral over the total of 2007-2012.
       Sec. 321. Deficit-Neutral Reserve Fund for Comprehensive 
           Immigration Reform
       Section 321 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     for comprehensive immigration reform legislation, provided 
     the legislation is deficit-neutral in 2008 and over the total 
     of 2008-2012.
       Sec. 322. Deficit-Neutral Reserve Fund for Mental Health 
           Parity
       Section 322 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     for legislation that provides parity between health insurance 
     coverage of mental health benefits and benefits for medical 
     and surgical services, provided the legislation is deficit-
     neutral in 2008 and over the total of 2008-2012.
       Sec. 323. Deficit-Neutral Reserve Fund for Preschool 
           Opportunities
       Section 323 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     for legislation to provide assistance to States for offering 
     or expanding preschool to children of low-income families, 
     provided the legislation is deficit-neutral over the total of 
     2007-2012.
       Sec. 324. Deficit-neutral Reserve Fund for the Safe 
           Importation of FDA-Approved Prescription Drugs
       Section 324 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     for legislation to permit the safe importation of 
     prescription drugs approved by the FDA from a specified list 
     of countries, provided the legislation is deficit-neutral 
     over the total of 2007-2012.
       Sec. 328. Deficit-Neutral Reserve Fund for Expansion of 
           Above-the-Line Deduction for Teacher Classroom Supplies
       Section 328 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     for legislation to permanently extend and increase to

[[Page H5116]]

     $400 the above-the-line deduction for teacher classroom 
     supplies and expand the deduction to include qualified 
     professional development expenses, provided the legislation 
     is deficit-neutral over the total of 2007-2012.
       Sec. 329. Adjustment for Smithsonian Institution Salaries 
           and Expenses
       Section 329 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     for legislation appropriating up to $17 million for 2008 if 
     the Comptroller General makes certain certifications to 
     Congress regarding the Smithsonian Institution.
       Sec. 330. Deficit-Reduction Reserve Fund for Reduction of 
           Improper Payments
       Section 330 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     for legislation that achieves savings by eliminating or 
     reducing improper payments by agencies and uses such savings 
     to reduce the deficit, provided the legislation would not 
     increase the deficit over the total of 2007-2012.
       Sec. 331. Deficit-Neutral Reserve Fund for Extension of the 
           Deduction for State and Local Sales Taxes
       Section 331 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     for legislation that would extend the deduction for State and 
     local sales taxes, provided the legislation would not 
     increase the deficit over the total of 2007-2012.
       Sec. 332. Deficit-Neutral Reserve Fund for Extension of 
           Certain Energy Tax Incentives
       Section 332 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     for legislation that would extend energy tax incentives 
     through 2015, provided the legislation would not increase the 
     deficit over the total of 2007-2012.
       Sec. 333. Reserve Fund To Provide Additional Training for 
           Physicians and Attract More Physicians in States That 
           Face a Shortage of Physicians in Training
       Section 333 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     for legislation that would provide additional training for 
     physicians and attract more physicians in States with a 
     shortage of physicians in training, provided the legislation 
     would not increase the deficit over the total of 2007-2012.
       Sec. 334. Deficit-Neutral Reserve Fund for Repeal of the 
           1993 Increase in the Income Tax on Social Security 
           Benefits
       Section 334 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     for legislation that would repeal the 1993 increase in the 
     income tax on Social Security benefits, provided the 
     legislation would not increase the deficit over the total of 
     2007-2012.
       Sec. 336. Deficit-Neutral Reserve Fund for Eliminating 
           Military Retirement and Disability Offset
       Section 336 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     for legislation that would expand eligibility for Combat-
     Related Special Compensation to permit additional disabled 
     retirees to receive both disability compensation and retired 
     pay, provided the legislation would not increase the deficit 
     over the total of 2007-2012.
       Sec. 337. Deficit-Neutral Reserve for Asbestos Reform 
           Legislation
       Section 337 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     for asbestos reform legislation, provided the legislation 
     would not increase the deficit over the total of 2007-2057.
       Sec. 338. Deficit-Neutral Reserve Fund for Manufacturing 
           Initiatives
       Section 338 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     for legislation, including tax legislation, that would 
     revitalize the United States manufacturing sector, provided 
     the legislation would not increase the deficit over the total 
     of 2007-2012.
       Sec. 339. Deficit-Reduction Reserve Fund for Increased Use 
           of Recovery Audits
       Section 339 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     for legislation that achieves savings by requiring that 
     agencies increase their use of recovery audits and use such 
     savings to reduce the deficit, provided the legislation would 
     not increase the deficit over the total of 2007-2012.
       Sec. 340. Deficit-Neutral Reserve Fund for a Delay in the 
           Implementation of a Proposed Rule Relating to the 
           Federal-State Financial Partnerships Under Medicaid and 
           SCHIP
       Section 340 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     for legislation that provides for a delay in the 
     implementation of a proposed rule relating to the Federal-
     State financial partnerships under Medicaid and SCHIP, 
     provided the legislation would not increase the deficit over 
     the total of 2007-2012.
       Sec. 341. Reserve Fund To Improve the Health Care System
       If the Finance Committee is within its 302(a) allocation, 
     Section 341 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     for legislation reported by the Finance Committee that 
     creates a framework for using Medicare data to 
     evaluate health care, if it protects privacy and prevents 
     disclosure of proprietary or trade secret information, 
     provided the legislation would not increase the deficit in 
     2008 or over the total of 2008-2012.
       Sec. 342. Reserve Fund to Improve Medicare Hospital Payment 
           Accuracy
       If the Finance Committee is within its 302(a) allocation, 
     Section 342 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     for legislation reported by the Finance Committee to improve 
     Medicare hospital payment accuracy, provided the legislation 
     would not increase the deficit over the total of 2008-2012.
       Sec. 343. Deficit-Neutral Reserve Fund to Improve Health 
           Insurance
       Section 343 of the Senate resolution allows the Chairman of 
     the Budget Committee to revise the levels in the resolution 
     for legislation to improve health insurance, provided the 
     legislation would not increase the deficit over the total of 
     2007-2012.
     House Amendment
       Sec. 201. Reserve Fund for the State Children's Health 
           Insurance Program
       The reserve fund accommodates the Committee on Energy and 
     Commerce reporting legislation of up to $50.0 billion in 
     additional outlays to improve children's health through 
     reauthorization of the State Children's Health Program 
     (SCHIP) as long as the authorizing legislation placed before 
     the House complies with the pay-as-you-go principle. These 
     additional resources will sustain current caseloads, expand 
     coverage, and reduce the number of uninsured children. Of the 
     over nine million uninsured children in this nation, around 
     six million are eligible for SCHIP or Medicaid but do not 
     receive coverage.
       Sec. 202. Reserve Fund for Reform of the Alternative 
           Minimum Tax
       The reserve fund for Alternative Minimum Tax (AMT) relief 
     accommodates legislation that reforms the tax code to shield 
     middle-income families from the AMT as long as it adheres to 
     the pay-as-you-go principle. Without reform, the number of 
     taxpayers subject to the AMT will rise from 4.2 million in 
     2006 to 23.2 million in 2007 and to 25.7 million in 2008, 
     according to the Joint Committee on Taxation.
       Sec. 203. Reserve Fund to Provide for Middle-Income Tax 
           Relief and Economic Equity
       The reserve fund for middle-income tax relief supports 
     legislation to reduce tax burdens on middle-income families 
     and taxpayers that complies with the pay-as-you-go principle. 
     This includes legislation such as the extension of the 10 
     percent individual income tax rate, marriage penalty relief, 
     the child tax credit, the research and experimentation tax 
     credit, the deduction for small business expensing, and the 
     deduction for State and local sales taxes. It also 
     accommodates elimination of estate taxes on all but a minute 
     fraction of estates, and a tax credit for school 
     construction.
       Sec. 204. Reserve Fund for Agriculture
       The reserve fund accommodates legislation that reauthorizes 
     the Farm Security and Rural Investment Act of 2002 (Public 
     Law 107-171) or prior farm support acts, or authorizes 
     similar programs, or both, to the extent that such 
     legislation complies with the pay-as-you-go principle. The 
     section also provides for an increase in budget authority up 
     to $20.0 billion over six years (2007-2012) above the 
     Congressional Budget Office's current estimate of spending 
     for these programs if the funding increases are appropriately 
     offset. The resolution allows for the House to continue to 
     address a number of priorities, such as maintaining a strong 
     farm safety net for our nation's agricultural producers; 
     delivering natural resource conservation measures on private 
     lands; investing in energy research; and rural development 
     projects that strengthen our rural economies; and enhancing 
     food nutrition assistance to help fight hunger. The reserve 
     fund could also facilitate a new Farm Bill that provides 
     enhanced conservation, research, and marketing assistance to 
     crops that have not received traditional commodity support.
       Sec. 205. Reserve Fund for Higher Education
       The reserve fund accommodates reforms to the student loan 
     programs that increase benefits to students, consistent with 
     the pay-as-you-go principle adopted by the House. The Higher 
     Education Act is scheduled to be reauthorized this year, and 
     this reserve fund will provide committees maximum flexibility 
     in finding offsets to make college more affordable for 
     students.
       Sec. 206. Reserve Fund for Improvements in Medicare
       The reserve fund accommodates additional mandatory spending 
     for Medicare program improvements such as increasing the 
     Medicare reimbursement rate for physicians while holding 
     beneficiaries harmless from associated premium increases, as 
     long as the legislation is consistent with the House pay-as-
     you-go principle. Current law calls for Medicare payment 
     rates to physicians to be cut by nearly 40 percent over the 
     next eight years. The House supports Federal investments in 
     health information technology that will improve the quality 
     and efficiency of not only Medicare, but also the health 
     sector as a whole. Another possible area for program 
     improvement is the Part D prescription drug benefit.

[[Page H5117]]

       Sec. 207. Reserve Fund for Creating Long-Term Energy 
           Alternatives
       The reserve fund accommodates legislation consistent with 
     H.R. 6 that invests in renewable or alternative energy 
     resources, promotes new emerging energy technologies, or 
     develops greater energy efficiency, to the extent that such 
     legislation complies with the pay-as-you-go principle.
       Sec. 208. Reserve Fund for Affordable Housing
       The reserve fund accommodates legislation that creates an 
     affordable housing fund, offset by savings from reforming the 
     regulation of certain government-sponsored entities, such as 
     Fannie Mae and Freddie Mac, to the extent that such 
     legislation complies with the pay-as-you-go principle.
       Sec. 209. Reserve Fund for Equitable Benefits for Filipino 
           Veterans of World War II
       The reserve fund accommodates additional mandatory spending 
     to provide equitable benefits for all Filipino veterans of 
     World War II and their survivors and dependents, consistent 
     with the pay-as-you-go principle. Most Filipino veterans who 
     fought alongside American troops, and their families, are 
     currently not eligible for equitable federal benefits.
       Sec. 210. Reserve Fund for Secure Rural Schools and 
           Community Self-Determination Act Reauthorization
       The reserve fund accommodates any legislation that 
     reauthorizes the Secure Rural Schools and Community Self-
     Determination Act (Public Law 106-393), to the extent that 
     such legislation complies with the pay-as-you-go principle. 
     That law provides economic assistance for roads and schools 
     in rural communities affected by the loss of receipts from 
     sales on federal lands in their communities. The assistance 
     is intended to compensate local governments for the tax-
     exempt status of the national forests and other federal 
     lands.
       Sec. 211. Reserve Fund for Receipts from the Bonneville 
           Power Administration
       The resolution includes a reserve fund to accommodate 
     legislation to reject the Administration's acceleration of 
     Bonneville Power Administration's (BPA) debt repayment and to 
     prohibit BPA from applying secondary sales revenue in excess 
     of $500 million towards additional federal debt repayment, to 
     the extent that such legislation complies with the pay-as-
     you-go principle.
       Sec. 212. Reserve Fund for Transitional Medical Assistance
       The reserve fund accommodates extension of Transitional 
     Medical Assistance (TMA) through 2008, as long as it complies 
     with the pay-as-you-go principle. TMA provides temporary 
     Medicaid assistance for families transitioning to the 
     workforce.
     Conference Agreement
       Sec. 301. Deficit-Neutral Reserve Fund for SCHIP 
           Legislation
       The House recedes to the Senate with a substitute. 
     Subsection (a) retains the language of Section 301 of the 
     Senate resolution with an amendment. This subsection applies 
     only in the Senate. Subsection (b) retains the language of 
     Section 201 of the House amendment with an amendment. This 
     subsection applies only in the House.
       Sec. 302. Deficit-Neutral Reserve Fund for Veterans and 
           Wounded Servicemembers
       The House recedes to the Senate with an amendment which 
     incorporates Sections 302, 317, and 336 of the Senate 
     resolution as well as Section 209 of the House amendment. The 
     combined reserve fund would accommodate legislation 
     consistent with the pay-as-you-go principle that improves 
     services and benefits to wounded or disabled military 
     personnel and retirees, veterans, and their survivors and 
     dependents, which may include enhancing medical care and 
     disability benefits, expanding eligibility to receive both 
     disability compensation and retired pay (for combat-disabled 
     retirees), eliminating the offset between survivor benefit 
     annuities and dependency and indemnity compensation, 
     improving disability evaluations, enhancing educational 
     benefits, or increasing benefits to Filipino veterans of 
     World War II and their survivors and dependents.
       Sec. 303. Deficit-Neutral Reserve Fund for Tax Relief
       In subsection (a) of Section 303 of the conference 
     agreement, which applies only in the Senate, the Senate 
     insists on Section 303 of the Senate resolution with an 
     amendment. In subsection (b) of Section 303 of the conference 
     agreement, which applies only in the House, the House insists 
     on Sections 202 and 203 of the House amendment with an 
     amendment.
       Sec. 304. Deficit-Neutral Reserve Fund for Medicare 
           Improvements
       The House recedes to the Senate with a substitute. 
     Subsection (a) retains the language of Section 206 of the 
     House amendment. This subsection applies only in the House of 
     Representatives. Subsection (b) retains the language of 
     Section 308 and Section 342 of the Senate resolution. This 
     subsection applies only in the Senate. Subsection (c) retains 
     the language of Section 333 of the Senate resolution with an 
     amendment. This subsection applies in the Senate and in the 
     House of Representatives.
       Sec. 305. Deficit-Neutral Reserve Fund for Health Care 
           Quality, Effectiveness, Efficiency, and Transparency
       The House recedes to the Senate with an amendment. 
     Subsection (a) retains the language of Section 319 of the 
     Senate resolution with an amendment. This subsection applies 
     in the Senate and in the House of Representatives. Subsection 
     (b) retains the language of Section 304 of the Senate 
     resolution. This subsection applies in the Senate and in the 
     House of Representatives. Subsection (c) retains the language 
     in Section 341 of the Senate resolution. This subsection 
     applies in the Senate only.
       Sec. 306. Deficit-Neutral Reserve Fund for Higher Education
       The House recedes to the Senate with a substitute. The 
     reserve funds for higher education in the House and Senate 
     have identical goals and the identical effect of 
     accommodating deficit-neutral legislation to make higher 
     education more accessible and more affordable. The conference 
     agreement could facilitate legislation that would enhance 
     benefits for post-secondary students, including, but not 
     limited to, reductions in interest rates on student loans, 
     significant increases in grant aid for students, or tax 
     benefits.
       Sec. 307. Deficit-Neutral Reserve Fund for the Farm Bill
       The Senate recedes to the House with a substitute. Section 
     307 provides for an increase in budget authority of up to 
     $20.0 billion over six years (2007-2012) if the funding 
     increases are appropriately offset. Subsection (a) retains 
     the language of Section 306 in the Senate resolution with an 
     amendment. This subsection applies only in the Senate. 
     Subsection (b) retains the language of Section 204 in the 
     House resolution. This subsection applies only in the House.
       Sec. 308. Deficit-Neutral Reserve Fund for Energy 
           Legislation
       The House recedes to the Senate with a substitute. Section 
     308 of the conference agreement is a deficit-neutral energy 
     reserve fund with two parts. Subsection (a) combines language 
     similar to the reserve funds included in Section 307 and 
     Section 332 of the Senate resolution and would apply only to 
     the Senate. This subsection allows the Senate's discretionary 
     spending limits to be adjusted in addition to the aggregates 
     and allocations. Subsection (b) is similar to Section 207 of 
     the House amendment and would apply only to the House.
       Sec. 309. Deficit-Neutral Reserve Fund for County Payments 
           Legislation
       The Senate recedes to the House with an amendment. The 
     amendment clarifies that the reserve fund could accommodate 
     legislation that provides for the reauthorization of the 
     Secure Rural Schools and Community Self-Determination Act of 
     2000 (Public Law 106-393), or makes changes to the Payments 
     in Lieu of Taxes Act of 1976 (Public Law 94-565), or both. 
     The reserve fund would accommodate deficit-neutral 
     legislation in the House and the Senate, and allows the 
     Senate's discretionary spending limits to be adjusted in 
     addition to the aggregates and allocations.
       Sec. 310. Deficit-Neutral Reserve Fund for Terrorism Risk 
           Insurance Reauthorization
       The House recedes to Section 311 of the Senate resolution 
     with a technical amendment to accommodate legislation in the 
     House and Senate consistent with House and Senate pay-as-you-
     go rules. The reserve fund accommodates legislation in both 
     bodies for a continuing federal role in ensuring that 
     terrorism risk insurance remains available after the 
     expiration of the Terrorism Risk Insurance Act.
       Sec. 311. Deficit-Neutral Reserve Fund for Affordable 
           Housing
       The House recedes to Section 312 of the Senate resolution 
     with a technical amendment to accommodate legislation in the 
     House and Senate consistent with House and Senate pay-as-you-
     go rules. The reserve fund accommodates legislation in both 
     bodies to establish an affordable housing fund financed by 
     housing government-sponsored enterprises.
       Sec. 312. Deficit-Neutral Reserve Fund for Receipts from 
           Bonneville Power Administration
       The House recedes to Section 313 of the Senate resolution 
     with a substitute. The reserve fund included in Section 312 
     of the conference agreement is similar to the language 
     included in both the House and Senate budget resolutions. The 
     reserve fund would accommodate deficit-neutral legislation in 
     the House and the Senate, and allows the Senate's 
     discretionary spending limits to be adjusted in addition to 
     the aggregates and allocations.
       Sec. 313. Deficit-Neutral Reserve Fund for Indian Claims 
           Settlement
       The House recedes to Section 314 of the Senate resolution 
     with an amendment to accommodate similar House legislation 
     and, as in the Senate, provisions to ensure its cost is 
     offset.
       Sec. 314. Deficit-Neutral Reserve Fund for Improvements in 
           Health
       The House recedes to the Senate with an amendment which 
     incorporates Sections 318 and 322 of the Senate resolution. 
     The conference agreement consolidates Sections 309, 316, and 
     343 of the Senate resolution into two subsections, 314(a) and 
     314(b), with amendments. This reserve fund applies in the 
     Senate and in the House of Representatives.
       Sec. 315. Deficit-Neutral Reserve Fund for Child Care
       The House recedes to Section 320 of the Senate resolution 
     with an amendment to accommodate similar legislation in the 
     House.
       Sec. 316. Deficit-Neutral Reserve Fund for Immigration 
           Reform
       The House recedes to Section 321 of the Senate resolution 
     with an amendment. This reserve fund applies only in the 
     Senate.
       Sec. 317. Deficit-Reduction Reserve Fund
       The House recedes to the Senate with an amendment. The 
     amendment combines reserve funds included in Section 330 and 
     Section 339 of the Senate resolution. Section 317 applies to 
     both the House and the Senate, and allows the Senate's 
     discretionary spending limits to be adjusted in addition to 
     the aggregates and allocations.

[[Page H5118]]

       Sec. 318. Deficit-Neutral Reserve Fund for Manufacturing 
           Initiatives in the Senate
       The Senate insists on Section 338 of the Senate resolution, 
     which applies only in the Senate, with an amendment.
       Sec. 319. Deficit-Neutral Reserve Fund for the Food and 
           Drug Administration in the Senate
       Section 319 of the conference agreement consists of two 
     subsections, 319(a) and 319(b). Subsection (a) allows the 
     Chairman of the Senate Budget Committee to revise the levels 
     in the resolution for legislation authorizing the Food and 
     Drug Administration to regulate products and assess user fees 
     on manufacturers and importers of these products to cover the 
     cost of the Food and Drug Administration's regulatory 
     activities. Subsection (b) retains the language of Section 
     324 of the Senate resolution. The reserve fund applies only 
     to the Senate.
       Sec. 320. Deficit-Neutral Reserve Fund for Medicaid
       The House recedes to the Senate with a substitute. 
     Subsection (a) retains the language of Section 340 of the 
     Senate resolution with an amendment. Subsection (b) 
     accommodates legislation for a demonstration project 
     regarding Medicaid coverage of low-income HIV-infected 
     individuals. Subsection (c) retains the language of Section 
     212 of the House amendment with an amendment. This reserve 
     fund applies in the Senate and in the House of 
     Representatives.
       Sec. 321. House Reserve Fund Adjustment for Revenue 
           Measures
       Section 321 of the conference agreement creates a reserve 
     fund to consider any revenue measure (including a conference 
     report) in the House. It applies to bills that would reduce 
     revenues below the sum of aggregate revenue levels for a 
     five-year period as measured against the Congressional Budget 
     Office baseline for the most recent concurrent resolution of 
     the budget. The revenue measure can only become effective 
     upon certification by the Secretary of the Treasury and the 
     Director of the Office of Management and Budget that the 
     reduction in revenues due to the measure for the period 
     comprising fiscal years through 2012 will not exceed the 
     lesser of $179.8 billion or 80 percent of the fiscal year 
     2012 unified budget surplus, as estimated by them within six 
     months prior to the first day of the first taxable year 
     affected, said taxable year in no case earlier than 2010. 
     If this provision is not included, the Chairman of the 
     House Budget Committee will adjust aggregate revenue 
     levels in the resolution to create a point of order in the 
     House against the measure under Section 311 of the Budget 
     Act. The Chairman would readjust the levels upon 
     disposition of any measure considered in violation of this 
     section. This point of order would be in addition to a 
     House paygo point of order, which lies against any bill 
     that is not deficit-neutral, notwithstanding any other 
     provisions of this conference agreement.
       Any measure, including a conference report, decreasing 
     total revenues, would have the point of order against it in 
     the House, unless it contains a provision consistent with the 
     following:
       ``None of the provisions of this Act or amendments made by 
     it, shall have legal force or effect unless within six months 
     prior to the first day of the first taxable year affected, 
     said taxable year in no case earlier than 2010, the Secretary 
     of the Treasury and the Director of the Office of Management 
     and Budget project a unified budget surplus for the fiscal 
     year 2012, estimate the budgetary impact of this Act, and 
     certify by issuance of a joint communication, to be published 
     in the Federal Register, that the estimated reduction in 
     revenues for the period comprising fiscal years through 2012 
     resulting from this Act (including amendments made by this 
     Act) will not exceed the lesser of $179.8 billion or 80 
     percent of the projected fiscal year 2012 unified budget 
     surplus.''
       Section 321 is a reserve fund that applies in the House 
     only. It does not apply in the Senate. Its inclusion in this 
     conference report, and the inclusion of the above language by 
     the House of Representatives in this joint statement 
     regarding the operation of this section in the House, is not 
     to be construed as setting any procedural precedent in the 
     Senate and does not reflect the Senate's agreement to any 
     provisions in any conference agreement on revenue measures 
     that are affected in the House by the requirements of this 
     reserve fund.
       Sec. 322. Deficit-Neutral Reserve Fund for San Joaquin 
           River Restoration and Navajo Nation Water Rights 
           Settlements
       Section 322 is a deficit-neutral reserve fund for 
     legislation that would fulfill the purposes of the San 
     Joaquin River Restoration Settlement Act, implement a Navajo 
     Nation water rights settlement as authorized by the 
     Northwestern New Mexico Rural Water Projects Act, or both. 
     The reserve fund would accommodate deficit-neutral 
     legislation in both the House and the Senate.
       Sec. 323. Deficit-Neutral Reserve Fund for Selected Tax 
           Relief Policies in the Senate
       The Senate insists on Sections 303, 328, and 331 of the 
     Senate resolution with an amendment. This section applies 
     only in the Senate.

                                 Policy

     Senate Resolution
       Unlike Title IV of the House amendment, the Senate 
     resolution did not contain a policy statement title.
     House Amendment
       Title IV of the House amendment contains the following 
     policy sections.
       Sec. 401. Policy on middle-income tax relief.
       Sec. 402. Policy on defense priorities.
       Sec. 403. Policy on college affordability.
     Conference Agreement
       Sec. 401. Policy on Middle-Income Tax Relief
       The Senate recedes to Section 401 of the House amendment 
     with a substitute. Subsection (a) retains the language of 
     Section 401 of the House amendment, with amendments. This 
     subsection applies only in the House. Subsection (b) applies 
     only in the Senate.
       Sec. 402. Policy on Defense Priorities
       In Section 402 of the conference agreement, the Senate 
     recedes to Section 402 of the House amendment with an 
     amendment. The House Budget Committee report (H. Rept. 110-
     69) discussed key priorities to be funded within the defense 
     allocation and the need for the Department of Defense to root 
     out wasteful spending (such as the continued funding of some 
     Cold War-era weapons systems, which may not be as effective 
     in protecting the nation from today's threats). The 
     conference agreement reaffirms these priorities.
       Sec. 403. Policy on College Affordability
       The Senate recedes to the House with a substitute. The 
     conferees intend that nothing in the budget resolution should 
     be construed as indicating support for cuts in college aid to 
     students, including but not limited to assistance provided by 
     non-profit state agencies.

                    Senses of the House and Congress

     Senate Resolution
       Section 335 of the Senate resolution expresses the sense of 
     Congress on the State Criminal Alien Assistance Program.
     House Amendment
       Title V of the House amendment contains the following Sense 
     of the House sections:
       Sec. 501. Sense of the House on servicemembers' and 
     veterans' health care and other priorities.
       Sec. 502. Sense of the House on the Innovation Agenda: A 
     commitment to competitiveness to keep America #1.
       Sec. 503. Sense of the House on homeland security.
       Sec. 504. Sense of the House regarding the ongoing need to 
     respond to Hurricanes Katrina and Rita.
       Sec. 505. Sense of the House regarding long-term 
     sustainability of entitlements.
       Sec. 506. Sense of the House regarding the need to maintain 
     and build upon efforts to fight hunger.
       Sec. 507. Sense of the House regarding affordable health 
     coverage.
       Sec. 508. Sense of the House regarding extension of the 
     statutory pay-as-you-go rule.
       Sec. 509. Sense of the House on long-term budgeting.
       Sec. 510. Sense of the House regarding pay parity.
       Sec. 511. Sense of the House regarding waste, fraud, and 
     abuse.
       Sec. 512. Sense of the House regarding the importance of 
     child support enforcement.
       Sec. 513. Sense of the House on state veterans cemeteries.
     Conference Agreement
       In Title V of the conference agreement, the Senate recedes 
     to Sections 501 through 513 of the House amendment, and the 
     House recedes to Section 335 of the Senate resolution, with 
     minor technical, clarifying, and conforming amendments. Title 
     V includes the following sense of the House and sense of 
     Congress provisions:
       Sec. 501. Sense of Congress on Servicemembers' and 
     Veterans' Health Care and Other Priorities.
       Sec. 502. Sense of Congress on the Innovation Agenda: A 
     Commitment to Competitiveness to Keep America #1.
       Sec. 503. Sense of Congress on Homeland Security.
       Sec. 504. Sense of Congress Regarding the Ongoing Need to 
     Respond to Hurricanes Katrina and Rita.
       Sec. 505. Sense of Congress Regarding Long-Term 
     Sustainability of Entitlements.
       Sec. 506. Sense of Congress Regarding the Need to Maintain 
     and Build Upon Efforts to Fight Hunger.
       Sec. 507. Sense of Congress Regarding Affordable Health 
     Coverage.
       Sec. 508. Sense of Congress Regarding Extension of the 
     Statutory Pay-As-You-Go Rule.
       Sec. 509. Sense of the Congress on Long-Term Budgeting.
       Sec. 510. Sense of Congress Regarding Pay Parity.
       Sec. 511. Sense of Congress Regarding Waste, Fraud, and 
     Abuse.
       Sec. 512. Sense of Congress Regarding the Importance of 
     Child Support Enforcement.
       Sec. 513. Sense of the House on State Veterans Cemeteries.
       Sec. 514. Sense of the Congress on the State Criminal Alien 
     Assistance Program.

                             Reconciliation

     Senate Resolution
       The Senate resolution did not include any reconciliation 
     instructions.
     House Amendment
       Section 601 of the House amendment, which was included at 
     the request of the Committee on Education and Labor, 
     instructs that committee to report changes in law to the 
     House to reduce the deficit by $75 million over six years, no 
     later than September 10, 2007. Section 403 of the House

[[Page H5119]]

     amendment includes policy language stating that the provision 
     shall not be construed to require reductions in assistance 
     that makes college more affordable for students.
     Conference Agreement
       The Senate recedes to the House with a substitute. The 
     conference agreement provides instructions to the Education 
     and Labor Committee in the House and to the Health, 
     Education, Labor and Pensions Committee in the Senate to 
     report legislation by September 10, 2007, to reduce the 
     deficit by $750 million over six years.

                          Economic Assumptions

       Section 301(g)(2) of the Congressional Budget Act requires 
     that the joint explanatory statement accompanying a 
     conference report on a budget resolution set forth the common 
     economic assumptions upon which the joint statement and 
     conference report are based. The conference agreement is 
     built upon the economic forecasts developed by the 
     Congressional Budget Office and presented in CBO's ``The 
     Budget and Economic Outlook: Fiscal Years 2008-2017'' 
     (January 2007).
     Senate Resolution
       CBO's economic assumptions were used.
     House Amendment
       CBO's economic assumptions were used.
     Conference Agreement
       CBO's economic assumptions were used.

                                  ECONOMIC ASSUMPTIONS OF THE BUDGET RESOLUTION
                                                [Calendar years]
----------------------------------------------------------------------------------------------------------------
                                                              2007     2008     2009     2010     2011     2012
----------------------------------------------------------------------------------------------------------------
Real GDP, Percent Change, Year Over Year..................      2.3      3.0      3.1      3.0      2.7      2.7
GDP Price Index, Percent Change, Year Over Year...........      1.9      1.8      1.8      1.8      1.8      1.8
Consumer Prices, Percent Change, Year Over Year...........      1.9      2.3      2.2      2.2      2.2      2.2
Unemployment Rate, Percent, Yearly Average................      4.7      4.9      5.0      5.0      5.0      5.0
3-Month Treasury Bill Rate, Percent, Yearly Average.......      4.8      4.5      4.4      4.4      4.4      4.4
10-Year Treasury Bond Rate, Percent, Yearly Average.......      4.8      5.0      5.1      5.2      5.2      5.2
----------------------------------------------------------------------------------------------------------------

                              Allocations

       As required in Section 302 of the Congressional Budget Act, 
     the joint statement of managers includes an allocation, based 
     on the conference agreement, of total budget authority and 
     total budget outlays among each of the appropriate 
     committees. The allocations are as follows:

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   Pay-As-You-Go Scorecard for the Senate Reflecting Levels for the 
                          Conference Agreement

       Period of the current fiscal year, the budget year, and the 
     four fiscal years following the budget year: $0.
       Period of the current fiscal year, the budget year, and the 
     nine fiscal years following the budget year: $0.

                            House Rule XXVII

       The adoption of this conference agreement by the two houses 
     would result in the engrossment of a House Joint Resolution 
     changing the statutory limit on the public debt pursuant to 
     House Rule XXVII, clause 3. The rule requires a joint 
     resolution in the following form:
       Resolved, by the Senate and the House of Representatives of 
     the United States in Congress assembled, that subsection (b) 
     of section 3101 of title 31, United States Code, is amended 
     by striking out the dollar limitation contained in such 
     subsection and inserting in lieu thereof $9,815,000,000,000.
       Legislative jurisdiction over the public debt remains with 
     the Finance Committee in the Senate and the Committee on Ways 
     and Means in the House.

     Kent Conrad,
     Patty Murray,
     Ron Wyden,
                               Managers on the Part of the Senate.

     John M. Spratt, Jr.,
     Rosa DeLauro,
     Chet Edwards,
     Managers on the Part of the House.

                          ____________________