[Congressional Record Volume 154, Number 16 (Thursday, January 31, 2008)]
[Senate]
[Pages S552-S555]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 3973. Mr. ROCKEFELLER submitted an amendment intended to be 
proposed by him to the bill H.R. 5140, to provide economic stimulus 
through recovery rebates to individuals, incentives for business 
investment, and an increase in conforming and FHA loan limits; which 
was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                TITLE __--TEMPORARY STATE FISCAL RELIEF

     SEC. __. TEMPORARY STATE FISCAL RELIEF.

       (a) Temporary Increase of the Medicaid FMAP.--
       (1) Permitting maintenance of fiscal year 2007 fmap for 
     last 3 calendar quarters of fiscal year 2008.--Subject to 
     paragraph (5), if the FMAP determined without regard to this 
     subsection for a State for fiscal year 2008 is less than the 
     FMAP as so determined for fiscal year 2007, the FMAP for the 
     State for fiscal year 2007 shall be substituted for the 
     State's FMAP for the second, third, and fourth calendar 
     quarters of fiscal year 2008, before the application of this 
     subsection.
       (2) Permitting maintenance of fiscal year 2008 fmap for 
     first 2 quarters of fiscal year 2009.--Subject to paragraph 
     (5), if the FMAP determined without regard to this subsection 
     for a State for fiscal year 2009 is less than the FMAP as so 
     determined for fiscal year 2008, the FMAP for the State for 
     fiscal year 2008 shall be substituted for the State's FMAP 
     for the first and second calendar quarters of fiscal year 
     2009, before the application of this subsection.
       (3) General 1.225 percentage points increase for last 3 
     calendar quarters of fiscal year 2008 and first 2 calendar 
     quarters of fiscal year 2009.--Subject to paragraphs (5), 
     (6), and (7), for each State for the second, third, and 
     fourth calendar quarters of fiscal year 2008 and for the 
     first and second calendar quarters of fiscal year 2009, the 
     FMAP (taking into account the application of paragraphs (1) 
     and (2)) shall be increased by 1.225 percentage points.
       (4) Increase in cap on medicaid payments to territories.--
     Subject to paragraphs (6) and (7), with respect to the 
     second, third, and fourth calendar quarters of fiscal year 
     2008 and the first and second calendar quarters of fiscal 
     year 2009, the amounts otherwise determined for Puerto Rico, 
     the Virgin Islands, Guam, the Northern Mariana Islands, and 
     American Samoa under subsections (f) and (g) of section 1108 
     of the Social Security Act (42 U.S.C. 1308) shall each be 
     increased by an amount equal to 2.45 percent of such amounts.
       (5) Scope of application.--The increases in the FMAP for a 
     State under this subsection shall apply only for purposes of 
     title XIX of the Social Security Act and shall not apply with 
     respect to--
       (A) disproportionate share hospital payments described in 
     section 1923 of such Act (42 U.S.C. 1396r-4);
       (B) payments under title IV or XXI of such Act (42 U.S.C. 
     601 et seq. and 1397aa et seq.); or
       (C) any payments under XIX of such Act that are based on 
     the enhanced FMAP described in section 2105(b) of such Act 
     (42 U.S.C. 1397ee(b)).
       (6) State eligibility.--
       (A) In general.--Subject to subparagraph (B), a State is 
     eligible for an increase in its FMAP under paragraph (3) or 
     an increase in a cap amount under paragraph (4) only if the 
     eligibility under its State plan under title XIX of the 
     Social Security Act (including any waiver under such title or 
     under section 1115 of such Act (42 U.S.C. 1315)) is no more 
     restrictive than the eligibility under such plan (or waiver) 
     as in effect on December 31, 2007.
       (B) State reinstatement of eligibility permitted.--A State 
     that has restricted eligibility under its State plan under 
     title XIX of the Social Security Act (including any waiver 
     under such title or under section 1115 of such Act (42 U.S.C. 
     1315)) after December 31, 2007 is eligible for an increase in 
     its FMAP under paragraph (3) or an increase in a cap amount 
     under paragraph (4) in the first calendar quarter (and 
     subsequent calendar quarters) in which the State has 
     reinstated eligibility that is no more restrictive than the 
     eligibility under such plan (or waiver) as in effect on 
     December 31, 2007.
       (C) Rule of construction.--Nothing in subparagraph (A) or 
     (B) shall be construed as affecting a State's flexibility 
     with respect to benefits offered under the State medicaid 
     program under title XIX of the Social Security Act (42 U.S.C. 
     1396 et seq.) (including any waiver under such title or under 
     section 1115 of such Act (42 U.S.C. 1315)).
       (7) Requirement for certain states.--In the case of a State 
     that requires political subdivisions within the State to 
     contribute toward the non-Federal share of expenditures under 
     the State medicaid plan required under section 1902(a)(2) of 
     the Social Security Act (42 U.S.C. 1396a(a)(2)), the State 
     shall not require that such political subdivisions pay a 
     greater percentage of the non-Federal share of such 
     expenditures for the second, third, and fourth calendar 
     quarters of fiscal year 2008 and the first and second 
     calendar quarters of fiscal year 2009, than the percentage 
     that was required by the State under such plan on December 
     31, 2007, prior to application of this subsection.
       (8) Definitions.--In this subsection:
       (A) FMAP.--The term ``FMAP'' means the Federal medical 
     assistance percentage, as defined in section 1905(b) of the 
     Social Security Act (42 U.S.C. 1396d(b)).
       (B) State.--The term ``State'' has the meaning given such 
     term for purposes of title XIX of the Social Security Act (42 
     U.S.C. 1396 et seq.).
       (9) Repeal.--Effective as of October 1, 2009, this 
     subsection is repealed.
       (b) Payments to States for Assistance With Providing 
     Government Services.--The Social Security Act (42 U.S.C. 301 
     et seq.) is amended by inserting after title V the following:

               ``TITLE VI--TEMPORARY STATE FISCAL RELIEF

     ``SEC. 601. TEMPORARY STATE FISCAL RELIEF.

       ``(a) Appropriation.--There is authorized to be 
     appropriated and is appropriated for making payments to 
     States under this section--
       ``(1) $3,600,000,000 for fiscal year 2008; and
       ``(2) $2,400,000,000 for fiscal year 2009.
       ``(b) Payments.--
       ``(1) Fiscal year 2008.--From the amount appropriated under 
     subsection (a)(1) for fiscal year 2008, the Secretary of the 
     Treasury shall, not later than the later of the date that is 
     45 days after the date of enactment of this Act or the date 
     that a State provides the certification required by 
     subsection (e) for fiscal year 2008, pay each State the 
     amount determined for the State for fiscal year 2008 under 
     subsection (c).
       ``(2) Fiscal year 2009.--From the amount appropriated under 
     subsection (a)(2) for fiscal year 2009, the Secretary of the 
     Treasury shall, not later than the later of October 1, 2008, 
     or the date that a State provides the certification required 
     by subsection (e) for fiscal year 2009, pay each State the 
     amount determined for the State for fiscal year 2009 under 
     subsection (c).
       ``(c) Payments Based on Population.--
       ``(1) In general.--Subject to paragraph (2), the amount 
     appropriated under subsection (a) for each of fiscal years 
     2008 and 2009 shall be used to pay each State an amount equal 
     to the relative population proportion amount described in 
     paragraph (3) for such fiscal year.
       ``(2) Minimum payment.--
       ``(A) In general.--No State shall receive a payment under 
     this section for a fiscal year that is less than--
       ``(i) in the case of 1 of the 50 States or the District of 
     Columbia, \1/2\ of 1 percent of the amount appropriated for 
     such fiscal year under subsection (a); and
       ``(ii) in the case of the Commonwealth of Puerto Rico, the 
     United States Virgin Islands, Guam, the Commonwealth of the 
     Northern Mariana Islands, or American Samoa, \1/10\ of 1 
     percent of the amount appropriated for such fiscal year under 
     subsection (a).
       ``(B) Pro rata adjustments.--The Secretary of the Treasury 
     shall adjust on a pro rata basis the amount of the payments 
     to States determined under this section without regard to 
     this subparagraph to the extent necessary to comply with the 
     requirements of subparagraph (A).
       ``(3) Relative population proportion amount.--The relative 
     population proportion amount described in this paragraph is 
     the product of--
       ``(A) the amount described in subsection (a) for a fiscal 
     year; and
       ``(B) the relative State population proportion (as defined 
     in paragraph (4)).
       ``(4) Relative state population proportion defined.--For 
     purposes of paragraph (3)(B), the term `relative State 
     population proportion' means, with respect to a State, the 
     amount equal to the quotient of--
       ``(A) the population of the State (as reported in the most 
     recent decennial census); and
       ``(B) the total population of all States (as reported in 
     the most recent decennial census).
       ``(d) Use of Payment.--
       ``(1) In general.--Subject to paragraph (2), a State shall 
     use the funds provided under a payment made under this 
     section for a fiscal year to--
       ``(A) provide essential government services;
       ``(B) cover the costs to the State of complying with any 
     Federal intergovernmental

[[Page S553]]

     mandate (as defined in section 421(5) of the Congressional 
     Budget Act of 1974) to the extent that the mandate applies to 
     the State, and the Federal Government has not provided funds 
     to cover the costs; or
       ``(C) compensate for a decline in Federal funding to the 
     State.
       ``(2) Limitation.--A State may only use funds provided 
     under a payment made under this section for types of 
     expenditures permitted under the most recently approved 
     budget for the State.
       ``(e) Certification.--In order to receive a payment under 
     this section for a fiscal year, the State shall provide the 
     Secretary of the Treasury with a certification that the 
     State's proposed uses of the funds are consistent with 
     subsection (d).
       ``(f) Definition of State.--In this section, the term 
     `State' means the 50 States, the District of Columbia, the 
     Commonwealth of Puerto Rico, the United States Virgin 
     Islands, Guam, the Commonwealth of the Northern Mariana 
     Islands, and American Samoa.
       ``(g) Repeal.--Effective as of October 1, 2009, this title 
     is repealed.''.
                                 ______
                                 
  SA 3974. Mr. DeMINT submitted an amendment intended to be proposed by 
him to the bill H.R. 5140, to provide economic stimulus through 
recovery rebates to individuals, incentives for business investment, 
and an increase in conforming and FHA loan limits; which was ordered to 
lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. REDUCTION IN CORPORATE MARGINAL INCOME TAX RATES.

       (a) General Rule.--Paragraph (1) of section 11(b) of the 
     Internal Revenue Code of 1986 is amended--
       (1) by inserting ``and'' at the end of subparagraph (A),
       (2) by striking ``but does not exceed $75,000,'' in 
     subparagraph (B) and inserting a period,
       (3) by striking subparagraphs (C) and (D), and
       (4) by striking the last 2 sentences.
       (b) Personal Service Corporations.--Paragraph (2) of 
     section 11(b) of such Code is amended by striking ``35 
     percent'' and inserting ``25 percent''.
       (c) Conforming Amendments.--Paragraphs (1) and (2) of 
     section 1445(e) of such Code are each amended by striking 
     ``35 percent'' and inserting ``25 percent''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2007, except that the amendments made by subsection (c) shall 
     take effect on the date of the enactment of this Act.
                                 ______
                                 
  SA 3975. Mr. DeMINT submitted an amendment intended to be proposed by 
him to the bill H.R. 5140, to provide economic stimulus through 
recovery rebates to individuals, incentives for business investment, 
and an increase in conforming and FHA loan limits; which was ordered to 
lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. REPEAL OF EGTRRA AND JGTRRA SUNSETS.

       (a) Economic Growth and Tax Relief Reconciliation Act of 
     2001.--Title IX of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 (relating to compliance with 
     Congressional Budget Act) is repealed.
       (b) Jobs and Growth Tax Relief Reconciliation Act of 
     2003.--Title III of the Jobs and Growth Tax Relief 
     Reconciliation Act of 2003 is amended by striking section 
     303.
                                 ______
                                 
  SA 3976. Mr. DeMINT submitted an amendment intended to be proposed by 
him to the bill H.R. 5140, to provide economic stimulus through 
recovery rebates to individuals, incentives for business investment, 
and an increase in conforming and FHA loan limits; which was ordered to 
lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. SMALLER PUBLIC COMPANY OPTION REGARDING INTERNAL 
                   CONTROL PROVISIONS.

       Section 404 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 
     7262) is amended by adding at the end the following:
       ``(c) Smaller Public Company Option.--
       ``(1) Voluntary compliance.--A smaller issuer shall not be 
     subject to the requirements of subsection (a), unless the 
     smaller issuer voluntarily elects to comply with such 
     requirements, in accordance with regulations prescribed by 
     the Commission. Any smaller issuer that does not elect to 
     comply with subsection (a) shall state such election, 
     together with the reasons therefor, in its annual report to 
     the Commission under section 13(a) or 15(d) of the Securities 
     Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)).
       ``(2) Definition of smaller issuer.--
       ``(A) In general.--For purposes of this subsection, and 
     subject to subparagraph (B), the term `smaller issuer' means 
     an issuer for which an annual report is required by section 
     13(a) or 15(d) of the Securities Exchange Act of 1934 (15 
     U.S.C. 78m or 78o(d)), that--
       ``(i) has a total market capitalization at the beginning of 
     the relevant reporting period of less than $700,000,000;
       ``(ii) has total product and services revenue for that 
     reporting period of less than $125,000,000; or
       ``(iii) has, at the beginning of the relevant reporting 
     period, fewer than 1,500 record beneficial holders.
       ``(B) Annual adjustments.--The amounts referred to in 
     clauses (i) and (ii) of subparagraph (A) shall be adjusted 
     annually to account for changes in the Consumer Price Index 
     for all urban consumers, United States city average, as 
     published by the Bureau of Labor Statistics.''.
                                 ______
                                 
  SA 3977. Mr. KENNEDY (for himself, Mr. Kerry, and Mr. Menendez) 
submitted an amendment intended to be proposed to amendment SA 3911 
proposed by Mr. Rockefeller (for himself and Mr. Bond) to the bill S. 
2248, to amend the Foreign Intelligence Surveillance Act of 1978, to 
modernize and streamline the provisions of that Act, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 6, line 13, strike ``and'' and all that follows 
     through page 10, line 5, and insert the following:
       ``(4) shall not intentionally acquire any communication as 
     to which the sender and all intended recipients are known at 
     the time of the acquisition to be located in the United 
     States; and
       ``(5) shall be conducted in a manner consistent with the 
     fourth amendment to the Constitution of the United States.
       ``(c) Conduct of Acquisition.--An acquisition authorized 
     under subsection (a) may be conducted only in accordance 
     with--
       ``(1) a certification made by the Attorney General and the 
     Director of National Intelligence pursuant to subsection (f); 
     and
       ``(2) the targeting and minimization procedures required 
     pursuant to subsections (d) and (e).
       ``(d) Targeting Procedures.--
       ``(1) Requirement to adopt.--The Attorney General, in 
     consultation with the Director of National Intelligence, 
     shall adopt targeting procedures that are reasonably designed 
     to ensure that any acquisition authorized under subsection 
     (a) is limited to targeting persons reasonably believed to be 
     located outside the United States and does not result in the 
     intentional acquisition of any communication as to which the 
     sender and all intended recipients are known at the time of 
     the acquisition to be located in the United States.
       ``(2) Judicial review.--The procedures referred to in 
     paragraph (1) shall be subject to judicial review pursuant to 
     subsection (h).
       ``(e) Minimization Procedures.--
       ``(1) Requirement to adopt.--The Attorney General, in 
     consultation with the Director of National Intelligence, 
     shall adopt, consistent with the requirements of section 
     101(h) or section 301(4), minimization procedures for 
     acquisitions authorized under subsection (a).
       ``(2) Judicial review.--The minimization procedures 
     required by this subsection shall be subject to judicial 
     review pursuant to subsection (h).
       ``(f) Certification.--
       ``(1) In general.--
       ``(A) Requirement.--Subject to subparagraph (B), prior to 
     the initiation of an acquisition authorized under subsection 
     (a), the Attorney General and the Director of National 
     Intelligence shall provide, under oath, a written 
     certification, as described in this subsection.
       ``(B) Exception.--If the Attorney General and the Director 
     of National Intelligence determine that immediate action by 
     the Government is required and time does not permit the 
     preparation of a certification under this subsection prior to 
     the initiation of an acquisition, the Attorney General and 
     the Director of National Intelligence shall prepare such 
     certification, including such determination, as soon as 
     possible but in no event more than 168 hours after such 
     determination is made.
       ``(2) Requirements.--A certification made under this 
     subsection shall--
       ``(A) attest that--
       ``(i) there are reasonable procedures in place for 
     determining that the acquisition authorized under subsection 
     (a) is targeted at persons reasonably believed to be located 
     outside the United States and that such procedures have been 
     approved by, or will be submitted in not more than 5 days for 
     approval by, the Foreign Intelligence Surveillance Court 
     pursuant to subsection (h);
       ``(ii) there are reasonable procedures in place for 
     determining that the acquisition authorized under subsection 
     (a) does not result in the intentional acquisition of any 
     communication as to which the sender and all intended 
     recipients are known at the time of the acquisition to be 
     located in the United States, and that such procedures have 
     been approved by, or will be submitted in not more than 5 
     days for approval by, the Foreign Intelligence Surveillance 
     Court pursuant to subsection (h);
       ``(iii) the procedures referred to in clauses (i) and (ii) 
     are consistent with the requirements of the fourth amendment 
     to the Constitution of the United States and do not permit 
     the intentional targeting of any person who is known at the 
     time of acquisition to be located in the United States or the 
     intentional acquisition of any communication

[[Page S554]]

     as to which the sender and all intended recipients are known 
     at the time of acquisition to be located in the United 
     States;
       ``(iv) a significant purpose of the acquisition is to 
     obtain foreign intelligence information;
       ``(v) the minimization procedures to be used with respect 
     to such acquisition--

       ``(I) meet the definition of minimization procedures under 
     section 101(h) or section 301(4); and
       ``(II) have been approved by, or will be submitted in not 
     more than 5 days for approval by, the Foreign Intelligence 
     Surveillance Court pursuant to subsection (h);

       ``(vi) the acquisition involves obtaining the foreign 
     intelligence information from or with the assistance of an 
     electronic communication service provider; and
       ``(vii) the acquisition does not constitute electronic 
     surveillance, as limited by section 701; and

       On page 17, line 2, strike ``States.'' and insert ``States 
     and does not result in the intentional acquisition of any 
     communication as to which the sender and all intended 
     recipients are known at the time of the acquisition to be 
     located in the United States.''
                                 ______
                                 
  SA 3978. Mr. WYDEN (for himself, Mr. Thune, Mr. Dodd, Mr. Shelby, Mr. 
Johnson, and Mr. Menendez) submitted an amendment intended to be 
proposed by him to the bill H.R. 5140, to provide economic stimulus 
through recovery rebates to individuals, incentives for business 
investment, and an increase in conforming and FHA loan limits; which 
was ordered to lie on the table; as follows:

       At the end, add the following:

          TITLE ___--INCREASED FUNDING FOR HIGHWAY TRUST FUND

     SEC. _01. REPLENISH EMERGENCY SPENDING FROM HIGHWAY TRUST 
                   FUND.

       (a) In General.--Section 9503(b) of the Internal Revenue 
     Code of 1986 is amended--
       (1) by adding at the end the following new paragraph:
       ``(7) Emergency spending replenishment.--There is hereby 
     appropriated to the Highway Trust Fund $5,000,000,000, of 
     which--
       ``(A) $4,000,000,000 shall be deposited in the Highway 
     Account; and
       ``(B) $1,000,000,000 shall be deposited in the Mass Transit 
     Account.'', and
       (2) by striking ``Amounts Equivalent to Certain Taxes and 
     Penalties'' in the heading and inserting ``Certain Amounts''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. _02. OBLIGATION AUTHORITY FOR STIMULUS PROJECTS.

       (a) In General.--Section 1102 of the Safe, Accountable, 
     Flexible, Efficient Transportation Equity Act: A Legacy for 
     Users (23 U.S.C. 104 note; Public Law 109-59) is amended--
       (1) in subsection (a)--
       (A) in the matter preceding paragraph (1), by striking 
     ``(g) and (h)'' and inserting ``(g), (h), and (l)''; and
       (B) paragraph (4), by striking ``$39,585,075,404'' and 
     inserting ``$43,585,075,404''; and
       (2) by adding at the end the following:
       ``(l) Obligation Authority for Stimulus Projects.--
       ``(1) In general.--Of the obligation authority distributed 
     under subsection (a)(4), not less than $4,000,000,000 shall 
     be provided to States for use in carrying out highway 
     projects that the States determine will provide rapid 
     economic stimulus.
       ``(2) Requirement.--A State that seeks a distribution of 
     the obligation authority described in paragraph (1) shall 
     agree to obligate funds so received not later than 120 days 
     after the date on which the State receives the funds.
       ``(3) Flexibility.--A State that receives a distribution of 
     the obligation authority described in paragraph (1) may use 
     the funds for any highway project described in paragraph (1), 
     regardless of any funding limitation or formula that is 
     otherwise applicable to projects carried out using obligation 
     authority under this section.
       ``(4) Federal share.--The Federal share of any highway 
     project carried out using funds described in paragraph (1) 
     shall be 100 percent.''.
       (b) Conforming Amendments.--
       (1) The matter under the heading ``(including transfer of 
     funds)'' under the heading ``(highway trust fund)'' under the 
     heading ``(limitation on obligations)'' under the heading 
     ``federal-aid highways'' under the heading ``Federal Highway 
     Administration'' of title I of division K of the Consolidated 
     Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 1844) 
     is amended by striking ``$40,216,051,359'' and inserting 
     ``$44,216,051,359''.
       (2) The matter under the heading ``(including rescission)'' 
     under the heading ``(highway trust fund)'' under the heading 
     ``(limitation on obligations)'' under the heading 
     ``(liquidation of contract authority)'' under the heading 
     ``formula and bus grants'' under the heading ``Federal 
     Transit Administration'' of title I of division K of the 
     Consolidated Appropriations Act, 2008 (Public Law 110-161; 
     121 Stat. 1844) is amended by striking ``$6,855,000,000'' and 
     inserting ``, and section 3052 of Public Law 109-59, 
     $7,855,000,000''.
       (3) Sections 9503(c)(1) and 9503(e)(3) of the Internal 
     Revenue Code of 1986 are each amended by inserting ``, as 
     amended by the Economic Stimulus Act of 2008,''.

     SEC. _03. STIMULUS OF MANUFACTURING AND CONSTRUCTION THROUGH 
                   PUBLIC TRANSPORTATION INVESTMENT.

       (a) In General.--Title III of the Safe, Accountable, 
     Flexible, Efficient Transportation Equity Act: A Legacy for 
     Users (Public Law 109-59; 119 Stat. 1544) is amended by 
     adding at the end the following:

     ``SEC. 3052. STIMULUS OF MANUFACTURING AND CONSTRUCTION 
                   THROUGH PUBLIC TRANSPORTATION INVESTMENT.

       ``(a) Authorization.--The Secretary is authorized to make 
     stimulus grants under this section to public transportation 
     agencies.
       ``(b) Eligible Recipients.--Stimulus grants authorized 
     under subsection (a) may be awarded--
       ``(1) to public transportation agencies which have a full 
     funding grant agreement in force on the date of enactment of 
     this section with Federal payments scheduled in any year 
     beginning with fiscal year 2008, for activities authorized 
     under the full funding grant agreement that would expedite 
     construction of the project; and
       ``(2) to designated recipients as defined in section 5307 
     of title 49, United States Code, for immediate use to address 
     a backlog of existing maintenance needs or to purchase 
     rolling stock or buses, if the contracts for such purchases 
     are in place prior to the grant award.
       ``(c) Use of Funds.--Of the amounts made available to carry 
     out this section, the Secretary shall use to make grants 
     under this section--
       ``(1) $300,000,000 for stimulus grants to recipients 
     described in subsection (b)(1); and
       ``(2) $700,000,000 for stimulus grants to recipients 
     described in subsection (b)(2).
       ``(d) Distribution of Funds.--
       ``(1) Expedited new starts grants.--Funds described in 
     subsection (c)(1) shall be distributed among eligible 
     recipients so that each recipient receives an equal 
     percentage increase based on the Federal funding commitment 
     for fiscal year 2008 specified in Attachment 6 of the 
     recipient's full funding grant agreement.
       ``(2) Formula grants.--Of the funds described in subsection 
     (c)(2)--
       ``(A) 60 percent shall be distributed according to the 
     formula in subsections (a) through (c) of section 5336 of 
     title 49, United States Code; and
       ``(B) 40 percent shall be distributed according to the 
     formula in section 5340 of title 49, United States Code.
       ``(3) Allocation.--The Secretary shall determine the 
     allocation of the amounts described in subsection (c)(1) and 
     shall apportion amounts described in subsection (c)(2) not 
     later than 20 days after the date of enactment of this 
     section.
       ``(4) Notification to congress.--The Secretary shall notify 
     the committees referred to in section 5334(k) of title 49, 
     United States Code, of the allocations determined under 
     paragraph (3) not later than 3 days after such determination 
     is made.
       ``(5) Obligation requirement.--The Secretary shall obligate 
     the funds described in subsection (c)(1) as expeditiously as 
     practicable, but in no case later than 120 days after the 
     date of enactment of this section.
       ``(e) Pre-Award Spending Authority.--
       ``(1) In general.--A recipient of a grant under this 
     section shall have pre-award spending authority.
       ``(2) Requirements.--Any expenditure made pursuant to pre-
     award spending authorized by this subsection shall conform 
     with applicable Federal requirements in order to remain 
     eligible for future Federal reimbursement.
       ``(f) Federal Share.--The Federal share of a stimulus grant 
     authorized under this section shall be 100 percent.
       ``(g) Self-Certification.--
       ``(1) In general.--Prior to the obligation of stimulus 
     grant funds under this section, the recipient of the grant 
     award shall certify--
       ``(A) for recipients described in subsection (b)(1), that 
     the recipient will comply with the terms and conditions that 
     apply to grants under section 5309 of title 49, United States 
     Code;
       ``(B) for recipients under subsection (b)(2), that the 
     recipient will comply with the terms and conditions that 
     apply to grants under section 5307 of title 49, United States 
     Code; and
       ``(C) that the funds will be used in a manner that will 
     stimulate the economy.
       ``(2) Certification.--Required certifications may be made 
     as part of the certification required under section 
     5307(d)(1) of title 49, United States Code.
       ``(3) Audit.--If, upon the audit of any recipient under 
     this section, the Secretary finds that the recipient has not 
     complied with the requirements of this section and has not 
     made a good-faith effort to comply, the Secretary may 
     withhold not more than 25 percent of the amount required to 
     be appropriated for that recipient under section 5307 of 
     title 49, United States Code, for the following fiscal year 
     if the Secretary notifies the committees referred to in 
     subsection (d)(4) at least 21 days prior to such 
     withholding.''.
       (b) Stimulus Grant Funding.--Section 5338 of title 49, 
     United States Code, is amended by adding at the end the 
     following:
       ``(h) Stimulus Grant Funding.--For fiscal year 2008, 
     $1,000,000,000 shall be available from the Mass Transit 
     Account of the Highway Trust Fund to carry out section 3052 
     of the Safe, Accountable, Flexible, Efficient

[[Page S555]]

     Transportation Equity Act: A Legacy for Users.''.
       (c) Expanded Bus Service in Small Communities.--Section 
     5307(b)(2) of title 49, United States Code, is amended--
       (1) in the paragraph heading, by striking ``2007'' and 
     inserting ``2009'';
       (2) in subparagraph (A), by striking ``2007'' and inserting 
     ``2009''; and
       (3) by adding at the end the following:
       ``(E) Maximum amounts in fiscal years 2008 and 2009.--In 
     fiscal years 2008 and 2009--
       ``(i) amounts made available to any urbanized area under 
     clause (i) or (ii) of subparagraph (A) shall be not more than 
     50 percent of the amount apportioned in fiscal year 2002 to 
     the urbanized area with a population of less than 200,000, as 
     determined in the 1990 decennial census of population;
       ``(ii) amounts made available to any urbanized area under 
     subparagraph (A)(iii) shall be not more than 50 percent of 
     the amount apportioned to the urbanized area under this 
     section for fiscal year 2003; and
       ``(iii) each portion of any area not designated as an 
     urbanized area, as determined by the 1990 decennial census, 
     and eligible to receive funds under subparagraph (A)(iv), 
     shall receive an amount of funds to carry out this section 
     that is not less than 50 percent of the amount the portion of 
     the area received under section 5311 in fiscal year 2002.''.

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