[Congressional Record Volume 154, Number 83 (Tuesday, May 20, 2008)]
[House]
[Pages H4217-H4278]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              {time}  1630
   CONFERENCE REPORT ON S. CON. RES 70, CONCURRENT RESOLUTION ON THE 
                      BUDGET FOR FISCAL YEAR 2009

  Mr. SPRATT submitted the following conference report and statement on 
the Senate concurrent resolution (S. Con. Res. 70) setting forth the 
congressional budget for the United States Government for fiscal year 
2009 and including the appropriate budgetary levels for fiscal years 
2008 and 2010 through 2013:

                  Conference Report (S. Con. Res. 70)

       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. 70), setting forth the congressional 
     budget for the United States Government for fiscal year 2009 
     and including the appropriate budgetary levels for fiscal 
     years 2008 and 2010 through 2013, 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 2009.

       (a) Declaration.--Congress declares that this resolution is 
     the concurrent resolution on the budget for fiscal year 2009 
     and that this resolution sets forth the appropriate budgetary 
     levels for fiscal year 2008 and for fiscal years 2010 through 
     2013.
       (b) Table of Contents.--

Sec. 1. Concurrent resolution on the budget for fiscal year 2009.

                TITLE I--RECOMMENDED LEVELS AND AMOUNTS

Sec. 101. Recommended levels and amounts.

[[Page H4218]]

Sec. 102. Social Security.
Sec. 103. Postal Service discretionary administrative expenses.
Sec. 104. Major functional categories.

                        TITLE II--RESERVE FUNDS

                    Subtitle A--House Reserve Funds

Sec. 201. Deficit-neutral reserve fund for SCHIP legislation.
Sec. 202. Deficit-neutral reserve fund for America's veterans and 
              servicemembers.
Sec. 203. Deficit-neutral reserve fund for education benefits for 
              servicemembers, veterans, and their families.
Sec. 204. Deficit-neutral reserve fund for infrastructure investment.
Sec. 205. Deficit-neutral reserve fund for renewable energy and energy 
              efficiency.
Sec. 206. Deficit-neutral reserve fund for middle-income tax relief and 
              economic equity.
Sec. 207. Deficit-neutral reserve fund for reform of the alternative 
              minimum tax.
Sec. 208. Deficit-neutral reserve fund for higher education.
Sec. 209. Deficit-neutral reserve fund for affordable housing.
Sec. 210. Deficit-neutral reserve fund for Medicare improvements.
Sec. 211. Deficit-neutral reserve fund for health care quality, 
              effectiveness, and efficiency.
Sec. 212. Deficit-neutral reserve fund for Medicaid and other programs.
Sec. 213. Deficit-neutral reserve fund for a 9/11 health program.
Sec. 214. Deficit-neutral reserve fund for trade adjustment assistance 
              and unemployment insurance modernization.
Sec. 215. Deficit-neutral reserve fund for county payments legislation.
Sec. 216. Deficit-neutral reserve fund for San Joaquin River 
              restoration and Navajo Nation water rights settlements.
Sec. 217. Deficit-neutral reserve fund for the National Park Centennial 
              Fund.
Sec. 218. Deficit-neutral reserve fund for child support enforcement.
Sec. 219. Deficit-neutral reserve fund for children and families.
Sec. 220. Reserve fund adjustment for revenue measures in the House.

                    Subtitle B--Senate Reserve Funds

Sec. 221. Deficit-neutral reserve fund to strengthen and stimulate the 
              American economy and provide economic relief to American 
              families.
Sec. 222. Deficit-neutral reserve fund for improving education.
Sec. 223. Deficit-neutral reserve fund for investments in America's 
              infrastructure.
Sec. 224. Deficit-neutral reserve fund to invest in clean energy, 
              preserve the environment, and provide for certain 
              settlements.
Sec. 225. Deficit-neutral reserve fund for America's veterans and 
              servicemembers.
Sec. 226. Deficit-neutral reserve fund for education benefits for 
              servicemembers, veterans, and their families.
Sec. 227. Deficit-neutral reserve fund to improve America's health.
Sec. 228. Deficit-neutral reserve fund for reform of the alternative 
              minimum tax.
Sec. 229. Deficit-neutral reserve fund for judicial pay and judgeships.
Sec. 230. Deficit-neutral reserve fund for immigration enforcement and 
              reform.
Sec. 231. Deficit-neutral reserve fund for science parks.
Sec. 232. Deficit-neutral reserve fund to terminate deductions from 
              mineral revenue payments to States.
Sec. 233. Deficit-reduction reserve fund for increased use of recovery 
              audits.
Sec. 234. Deficit-neutral reserve fund for food safety.
Sec. 235. Deficit-neutral reserve fund for demonstration project 
              regarding Medicaid coverage of low-income HIV-infected 
              individuals.
Sec. 236. Deficit-neutral reserve fund for reducing the income 
              threshold for the refundable child tax credit, and other 
              selected tax relief policies.
Sec. 237. Deficit-neutral reserve fund for a 9/11 health program.

                     TITLE III--BUDGET ENFORCEMENT

                Subtitle A--House Enforcement Provisions

Sec. 301. Program integrity initiatives and other adjustments.
Sec. 302. Point of order against advance appropriations.

               Subtitle B--Senate Enforcement Provisions

Sec. 311. Senate point of order against legislation increasing long-
              term deficits.
Sec. 312. Discretionary spending limits, program integrity initiatives, 
              and other adjustments.
Sec. 313. Point of order against advance appropriations.
Sec. 314. Senate point of order against provisions of appropriations 
              legislation that constitute changes in mandatory programs 
              with net costs.
Sec. 315. Senate point of order against legislation increasing short-
              term deficit.

                      Subtitle C--Other Provisions

Sec. 321. Oversight of government performance.
Sec. 322. Budgetary treatment of certain discretionary administrative 
              expenses.
Sec. 323. Application and effect of changes in allocations and 
              aggregates.
Sec. 324. Adjustments to reflect changes in concepts and definitions.
Sec. 325. Exercise of rulemaking powers.

                            TITLE IV--POLICY

Sec. 401. Policy of the House on middle-income tax relief.
Sec. 402. Policy on defense priorities.

               TITLE V--SENSE OF THE SENATE AND CONGRESS

                    Subtitle A--Sense of the Senate

Sec. 501. Sense of the Senate regarding Medicaid administrative 
              regulations.

                   Subtitle B--Sense of the Congress

Sec. 511. Sense of the Congress on servicemembers' and veterans' health 
              care and other priorities.
Sec. 512. Sense of the Congress on homeland security.
Sec. 513. Sense of the Congress regarding long-term fiscal reform.
Sec. 514. Sense of the Congress regarding waste, fraud, and abuse.
Sec. 515. Sense of the Congress regarding extension of the statutory 
              pay-as-you-go rule.
Sec. 516. Sense of the Congress on long-term budgeting.
Sec. 517. Sense of the Congress regarding affordable health coverage.
Sec. 518. Sense of the Congress regarding pay parity.
Sec. 519. Sense of the Congress regarding subprime lending and 
              foreclosures.
Sec. 520. Sense of the Congress regarding the need to maintain and 
              build upon efforts to fight hunger.
Sec. 521. Sense of the Congress regarding the importance of child 
              support enforcement.
Sec. 522. Sense of the Congress on the Innovation Agenda and America 
              COMPETES Act.

                TITLE I--RECOMMENDED LEVELS AND AMOUNTS

     SEC. 101. RECOMMENDED LEVELS AND AMOUNTS.

       The following budgetary levels are appropriate for each of 
     fiscal years 2008 through 2013:
       (1) Federal revenues.--For purposes of the enforcement of 
     this resolution:
       (A) The recommended levels of Federal revenues are as 
     follows:
       Fiscal year 2008: $1,875,392,000,000.
       Fiscal year 2009: $2,029,612,000,000.
       Fiscal year 2010: $2,204,652,000,000.
       Fiscal year 2011: $2,413,249,000,000.
       Fiscal year 2012: $2,506,049,000,000.
       Fiscal year 2013: $2,626,582,000,000.
       (B) The amounts by which the aggregate levels of Federal 
     revenues should be changed are as follows:
       Fiscal year 2008: -$4,000,000,000.
       Fiscal year 2009: -$67,755,000,000.
       Fiscal year 2010: $21,270,000,000.
       Fiscal year 2011: -$14,824,000,000.
       Fiscal year 2012: -$151,572,000,000.
       Fiscal year 2013: -$123,689,000,000.
       (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 2008: $2,563,262,000,000.
       Fiscal year 2009: $2,530,703,000,000.
       Fiscal year 2010: $2,562,856,000,000.
       Fiscal year 2011: $2,693,843,000,000.
       Fiscal year 2012: $2,736,865,000,000.
       Fiscal year 2013: $2,868,813,000,000.
       (3) Budget outlays.--For purposes of the enforcement of 
     this resolution, the appropriate levels of total budget 
     outlays are as follows:
       Fiscal year 2008: $2,465,711,000,000.
       Fiscal year 2009: $2,565,903,000,000.
       Fiscal year 2010: $2,621,939,000,000.
       Fiscal year 2011: $2,712,795,000,000.
       Fiscal year 2012: $2,722,056,000,000.
       Fiscal year 2013: $2,860,225,000,000.
       (4) Deficits (on-budget).--For purposes of the enforcement 
     of this resolution, the amounts of the deficits (on-budget) 
     are as follows:
       Fiscal year 2008: $590,319,000,000.
       Fiscal year 2009: $536,291,000,000.
       Fiscal year 2010: $417,287,000,000.
       Fiscal year 2011: $299,546,000,000.
       Fiscal year 2012: $216,007,000,000.
       Fiscal year 2013: $233,643,000,000.
       (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 2008: $9,575,000,000,000.
       Fiscal year 2009: $10,207,000,000,000.
       Fiscal year 2010: $10,732,000,000,000.
       Fiscal year 2011: $11,137,000,000,000.
       Fiscal year 2012: $11,484,000,000,000.
       Fiscal year 2013: $11,832,000,000,000.
       (6) Debt held by the public.--The appropriate levels of 
     debt held by the public are as follows:
       Fiscal year 2008: $5,404,000,000,000.
       Fiscal year 2009: $5,761,000,000,000.
       Fiscal year 2010: $5,989,000,000,000.
       Fiscal year 2011: $6,080,000,000,000.
       Fiscal year 2012: $6,075,000,000,000.
       Fiscal year 2013: $6,081,000,000,000.

     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 2008: $666,706,000,000.
       Fiscal year 2009: $695,870,000,000.
       Fiscal year 2010: $733,562,000,000.
       Fiscal year 2011: $772,459,000,000.
       Fiscal year 2012: $809,789,000,000.
       Fiscal year 2013: $845,034,000,000.
       (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 H4219]]

       Fiscal year 2008: $463,746,000,000.
       Fiscal year 2009: $493,602,000,000.
       Fiscal year 2010: $520,149,000,000.
       Fiscal year 2011: $540,478,000,000.
       Fiscal year 2012: $566,240,000,000.
       Fiscal year 2013: $595,534,000,000.
       (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 2008:
       (A) New budget authority, $5,010,000,000.
       (B) Outlays, $4,944,000,000.
       Fiscal year 2009:
       (A) New budget authority, $5,233,000,000.
       (B) Outlays, $5,160,000,000.
       Fiscal year 2010:
       (A) New budget authority, $5,359,000,000.
       (B) Outlays, $5,332,000,000.
       Fiscal year 2011:
       (A) New budget authority, $5,500,000,000.
       (B) Outlays, $5,475,000,000.
       Fiscal year 2012:
       (A) New budget authority, $5,653,000,000.
       (B) Outlays, $5,626,000,000.
       Fiscal year 2013:
       (A) New budget authority, $5,817,000,000.
       (B) Outlays, $5,789,000,000.

     SEC. 103. POSTAL SERVICE DISCRETIONARY ADMINISTRATIVE 
                   EXPENSES.

       In the Senate, the amounts of new budget authority and 
     budget outlays of the Postal Service for discretionary 
     administrative expenses are as follows:
       Fiscal year 2008:
       (A) New budget authority, $250,000,000.
       (B) Outlays, $237,000,000.
       Fiscal year 2009:
       (A) New budget authority, $258,000,000.
       (B) Outlays, $258,000,000.
       Fiscal year 2010:
       (A) New budget authority, $267,000,000.
       (B) Outlays, $267,000,000.
       Fiscal year 2011:
       (A) New budget authority, $275,000,000.
       (B) Outlays, $275,000,000.
       Fiscal year 2012:
       (A) New budget authority, $284,000,000.
       (B) Outlays, $284,000,000.
       Fiscal year 2013:
       (A) New budget authority, $293,000,000.
       (B) Outlays, $293,000,000.

     SEC. 104. MAJOR FUNCTIONAL CATEGORIES.

       The Congress determines and declares that the appropriate 
     levels of new budget authority and outlays for fiscal years 
     2008 through 2013 for each major functional category are:
       (1) National Defense (050):
       Fiscal year 2008:
       (A) New budget authority, $590,686,000,000.
       (B) Outlays, $576,173,000,000.
       Fiscal year 2009:
       (A) New budget authority, $542,497,000,000.
       (B) Outlays, $573,362,000,000.
       Fiscal year 2010:
       (A) New budget authority, $550,414,000,000.
       (B) Outlays, $560,726,000,000.
       Fiscal year 2011:
       (A) New budget authority, $557,026,000,000.
       (B) Outlays, $560,099,000,000.
       Fiscal year 2012:
       (A) New budget authority, $565,800,000,000.
       (B) Outlays, $556,699,000,000.
       Fiscal year 2013:
       (A) New budget authority, $576,233,000,000.
       (B) Outlays, $568,829,000,000.
       (2) International Affairs (150):
       Fiscal year 2008:
       (A) New budget authority, $32,648,000,000.
       (B) Outlays, $32,843,000,000.
       Fiscal year 2009:
       (A) New budget authority, $37,158,000,000.
       (B) Outlays, $35,749,000,000.
       Fiscal year 2010:
       (A) New budget authority, $37,901,000,000.
       (B) Outlays, $36,591,000,000.
       Fiscal year 2011:
       (A) New budget authority, $38,221,000,000.
       (B) Outlays, $36,864,000,000.
       Fiscal year 2012:
       (A) New budget authority, $38,491,000,000.
       (B) Outlays, $36,824,000,000.
       Fiscal year 2013:
       (A) New budget authority, $38,451,000,000.
       (B) Outlays, $36,537,000,000.
       (3) General Science, Space, and Technology (250):
       Fiscal year 2008:
       (A) New budget authority, $27,407,000,000.
       (B) Outlays, $26,456,000,000.
       Fiscal year 2009:
       (A) New budget authority, $30,639,000,000.
       (B) Outlays, $29,072,000,000.
       Fiscal year 2010:
       (A) New budget authority, $31,701,000,000.
       (B) Outlays, $31,192,000,000.
       Fiscal year 2011:
       (A) New budget authority, $32,863,000,000.
       (B) Outlays, $32,642,000,000.
       Fiscal year 2012:
       (A) New budget authority, $34,115,000,000.
       (B) Outlays, $33,891,000,000.
       Fiscal year 2013:
       (A) New budget authority, $35,450,000,000.
       (B) Outlays, $34,694,000,000.
       (4) Energy (270):
       Fiscal year 2008:
       (A) New budget authority, $3,550,000,000.
       (B) Outlays, $1,681,000,000.
       Fiscal year 2009:
       (A) New budget authority, $6,514,000,000.
       (B) Outlays, $2,795,000,000.
       Fiscal year 2010:
       (A) New budget authority, $6,615,000,000.
       (B) Outlays, $4,092,000,000.
       Fiscal year 2011:
       (A) New budget authority, $6,450,000,000.
       (B) Outlays, $4,969,000,000.
       Fiscal year 2012:
       (A) New budget authority, $6,550,000,000.
       (B) Outlays, $5,417,000,000.
       Fiscal year 2013:
       (A) New budget authority, $6,474,000,000.
       (B) Outlays, $5,659,000,000.
       (5) Natural Resources and Environment (300):
       Fiscal year 2008:
       (A) New budget authority, $33,169,000,000.
       (B) Outlays, $34,723,000,000.
       Fiscal year 2009:
       (A) New budget authority, $40,515,000,000.
       (B) Outlays, $36,868,000,000.
       Fiscal year 2010:
       (A) New budget authority, $35,278,000,000.
       (B) Outlays, $37,472,000,000.
       Fiscal year 2011:
       (A) New budget authority, $36,307,000,000.
       (B) Outlays, $37,865,000,000.
       Fiscal year 2012:
       (A) New budget authority, $37,396,000,000.
       (B) Outlays, $38,356,000,000.
       Fiscal year 2013:
       (A) New budget authority, $38,033,000,000.
       (B) Outlays, $38,923,000,000.
       (6) Agriculture (350):
       Fiscal year 2008:
       (A) New budget authority, $24,296,000,000.
       (B) Outlays, $22,179,000,000.
       Fiscal year 2009:
       (A) New budget authority, $22,572,000,000.
       (B) Outlays, $22,312,000,000.
       Fiscal year 2010:
       (A) New budget authority, $22,145,000,000.
       (B) Outlays, $21,241,000,000.
       Fiscal year 2011:
       (A) New budget authority, $22,026,000,000.
       (B) Outlays, $21,022,000,000.
       Fiscal year 2012:
       (A) New budget authority, $20,889,000,000.
       (B) Outlays, $17,463,000,000.
       Fiscal year 2013:
       (A) New budget authority, $22,304,000,000.
       (B) Outlays, $21,606,000,000.
       (7) Commerce and Housing Credit (370):
       Fiscal year 2008:
       (A) New budget authority, $11,216,000,000.
       (B) Outlays, $5,381,000,000.
       Fiscal year 2009:
       (A) New budget authority, $9,560,000,000.
       (B) Outlays, $3,722,000,000.
       Fiscal year 2010:
       (A) New budget authority, $13,887,000,000.
       (B) Outlays, $5,835,000,000.
       Fiscal year 2011:
       (A) New budget authority, $8,998,000,000.
       (B) Outlays, $2,193,000,000.
       Fiscal year 2012:
       (A) New budget authority, $9,246,000,000.
       (B) Outlays, $1,735,000,000.
       Fiscal year 2013:
       (A) New budget authority, $9,642,000,000.
       (B) Outlays, $1,648,000,000.
       (8) Transportation (400):
       Fiscal year 2008:
       (A) New budget authority, $80,189,000,000.
       (B) Outlays, $77,795,000,000.
       Fiscal year 2009:
       (A) New budget authority, $74,682,000,000.
       (B) Outlays, $80,781,000,000.
       Fiscal year 2010:
       (A) New budget authority, $77,999,000,000.
       (B) Outlays, $84,318,000,000.
       Fiscal year 2011:
       (A) New budget authority, $78,900,000,000.
       (B) Outlays, $86,468,000,000.
       Fiscal year 2012:
       (A) New budget authority, $79,741,000,000.
       (B) Outlays, $88,453,000,000.
       Fiscal year 2013:
       (A) New budget authority, $80,641,000,000.
       (B) Outlays, $90,675,000,000.
       (9) Community and Regional Development (450):
       Fiscal year 2008:
       (A) New budget authority, $20,149,000,000.
       (B) Outlays, $27,820,000,000.
       Fiscal year 2009:
       (A) New budget authority, $15,220,000,000.
       (B) Outlays, $24,401,000,000.
       Fiscal year 2010:
       (A) New budget authority, $15,376,000,000.
       (B) Outlays, $22,109,000,000.
       Fiscal year 2011:
       (A) New budget authority, $15,603,000,000.
       (B) Outlays, $18,330,000,000.
       Fiscal year 2012:
       (A) New budget authority, $15,840,000,000.
       (B) Outlays, $16,301,000,000.
       Fiscal year 2013:
       (A) New budget authority, $16,007,000,000.
       (B) Outlays, $15,986,000,000.
       (10) Education, Training, Employment, and Social Services 
     (500):
       Fiscal year 2008:
       (A) New budget authority, $90,077,000,000.
       (B) Outlays, $90,729,000,000.
       Fiscal year 2009:
       (A) New budget authority, $94,277,000,000.
       (B) Outlays, $91,351,000,000.
       Fiscal year 2010:
       (A) New budget authority, $103,716,000,000.
       (B) Outlays, $99,477,000,000.
       Fiscal year 2011:
       (A) New budget authority, $105,910,000,000.
       (B) Outlays, $103,453,000,000.
       Fiscal year 2012:
       (A) New budget authority, $107,399,000,000.
       (B) Outlays, $103,992,000,000.
       Fiscal year 2013:
       (A) New budget authority, $100,625,000,000.
       (B) Outlays, $102,451,000,000.
       (11) Health (550):
       Fiscal year 2008:
       (A) New budget authority, $285,601,000,000.
       (B) Outlays, $287,188,000,000.
       Fiscal year 2009:
       (A) New budget authority, $310,260,000,000.
       (B) Outlays, $307,474,000,000.
       Fiscal year 2010:
       (A) New budget authority, $325,344,000,000.
       (B) Outlays, $325,681,000,000.

[[Page H4220]]

       Fiscal year 2011:
       (A) New budget authority, $345,817,000,000.
       (B) Outlays, $345,055,000,000.
       Fiscal year 2012:
       (A) New budget authority, $368,395,000,000.
       (B) Outlays, $367,257,000,000.
       Fiscal year 2013:
       (A) New budget authority, $393,337,000,000.
       (B) Outlays, $391,872,000,000.
       (12) Medicare (570):
       Fiscal year 2008:
       (A) New budget authority, $390,458,000,000.
       (B) Outlays, $390,454,000,000.
       Fiscal year 2009:
       (A) New budget authority, $420,191,000,000.
       (B) Outlays, $419,974,000,000.
       Fiscal year 2010:
       (A) New budget authority, $445,207,000,000.
       (B) Outlays, $445,333,000,000.
       Fiscal year 2011:
       (A) New budget authority, $494,337,000,000.
       (B) Outlays, $494,162,000,000.
       Fiscal year 2012:
       (A) New budget authority, $491,305,000,000.
       (B) Outlays, $491,065,000,000.
       Fiscal year 2013:
       (A) New budget authority, $552,329,000,000.
       (B) Outlays, $552,445,000,000.
       (13) Income Security (600):
       Fiscal year 2008:
       (A) New budget authority, $389,926,000,000.
       (B) Outlays, $394,161,000,000.
       Fiscal year 2009:
       (A) New budget authority, $415,547,000,000.
       (B) Outlays, $416,039,000,000.
       Fiscal year 2010:
       (A) New budget authority, $420,430,000,000.
       (B) Outlays, $420,710,000,000.
       Fiscal year 2011:
       (A) New budget authority, $429,946,000,000.
       (B) Outlays, $429,463,000,000.
       Fiscal year 2012:
       (A) New budget authority, $416,447,000,000.
       (B) Outlays, $416,044,000,000.
       Fiscal year 2013:
       (A) New budget authority, $432,148,000,000.
       (B) Outlays, $431,699,000,000.
       (14) Social Security (650):
       Fiscal year 2008:
       (A) New budget authority, $19,378,000,000.
       (B) Outlays, $19,378,000,000.
       Fiscal year 2009:
       (A) New budget authority, $21,313,000,000.
       (B) Outlays, $21,313,000,000.
       Fiscal year 2010:
       (A) New budget authority, $23,803,000,000.
       (B) Outlays, $23,803,000,000.
       Fiscal year 2011:
       (A) New budget authority, $27,338,000,000.
       (B) Outlays, $27,338,000,000.
       Fiscal year 2012:
       (A) New budget authority, $30,349,000,000.
       (B) Outlays, $30,349,000,000.
       Fiscal year 2013:
       (A) New budget authority, $33,170,000,000.
       (B) Outlays, $33,170,000,000.
       (15) Veterans Benefits and Services (700):
       Fiscal year 2008:
       (A) New budget authority, $86,365,000,000.
       (B) Outlays, $83,551,000,000.
       Fiscal year 2009:
       (A) New budget authority, $93,320,000,000.
       (B) Outlays, $92,486,000,000.
       Fiscal year 2010:
       (A) New budget authority, $96,233,000,000.
       (B) Outlays, $95,912,000,000.
       Fiscal year 2011:
       (A) New budget authority, $102,038,000,000.
       (B) Outlays, $101,706,000,000.
       Fiscal year 2012:
       (A) New budget authority, $99,359,000,000.
       (B) Outlays, $98,511,000,000.
       Fiscal year 2013:
       (A) New budget authority, $105,344,000,000.
       (B) Outlays, $104,513,000,000.
       (16) Administration of Justice (750):
       Fiscal year 2008:
       (A) New budget authority, $46,237,000,000.
       (B) Outlays, $44,282,000,000.
       Fiscal year 2009:
       (A) New budget authority, $48,303,000,000.
       (B) Outlays, $48,097,000,000.
       Fiscal year 2010:
       (A) New budget authority, $48,673,000,000.
       (B) Outlays, $49,291,000,000.
       Fiscal year 2011:
       (A) New budget authority, $49,348,000,000.
       (B) Outlays, $49,763,000,000.
       Fiscal year 2012:
       (A) New budget authority, $50,139,000,000.
       (B) Outlays, $50,172,000,000.
       Fiscal year 2013:
       (A) New budget authority, $51,051,000,000.
       (B) Outlays, $50,767,000,000.
       (17) General Government (800):
       Fiscal year 2008:
       (A) New budget authority, $56,407,000,000.
       (B) Outlays, $56,920,000,000.
       Fiscal year 2009:
       (A) New budget authority, $23,987,000,000.
       (B) Outlays, $24,411,000,000.
       Fiscal year 2010:
       (A) New budget authority, $19,929,000,000.
       (B) Outlays, $19,974,000,000.
       Fiscal year 2011:
       (A) New budget authority, $20,470,000,000.
       (B) Outlays, $20,369,000,000.
       Fiscal year 2012:
       (A) New budget authority, $21,004,000,000.
       (B) Outlays, $21,026,000,000.
       Fiscal year 2013:
       (A) New budget authority, $21,463,000,000.
       (B) Outlays, $21,251,000,000.
       (18) Net Interest (900):
       Fiscal year 2008:
       (A) New budget authority, $349,351,000,000.
       (B) Outlays, $349,351,000,000.
       Fiscal year 2009:
       (A) New budget authority, $334,409,000,000.
       (B) Outlays, $334,409,000,000.
       Fiscal year 2010:
       (A) New budget authority, $370,805,000,000.
       (B) Outlays, $370,805,000,000.
       Fiscal year 2011:
       (A) New budget authority, $407,916,000,000.
       (B) Outlays, $407,916,000,000.
       Fiscal year 2012:
       (A) New budget authority, $433,193,000,000.
       (B) Outlays, $433,193,000,000.
       Fiscal year 2013:
       (A) New budget authority, $448,812,000,000.
       (B) Outlays, $448,812,000,000.
       (19) Allowances (920):
       Fiscal year 2008:
       (A) New budget authority, $4,426,000,000.
       (B) Outlays, $2,075,000,000.
       Fiscal year 2009:
       (A) New budget authority, -$13,201,000,000.
       (B) Outlays, -$6,462,000,000.
       Fiscal year 2010:
       (A) New budget authority, -$11,955,000,000.
       (B) Outlays, -$9,385,000,000.
       Fiscal year 2011:
       (A) New budget authority, -$12,307,000,000.
       (B) Outlays, -$11,769,000,000.
       Fiscal year 2012:
       (A) New budget authority, -$12,689,000,000.
       (B) Outlays, -$13,764,000,000.
       Fiscal year 2013:
       (A) New budget authority, -$13,000,000,000.
       (B) Outlays, -$13,396,000,000.
       (20) Undistributed Offsetting Receipts (950):
       Fiscal year 2008:
       (A) New budget authority, -$86,330,000,000.
       (B) Outlays, -$86,330,000,000.
       Fiscal year 2009:
       (A) New budget authority, -$67,060,000,000.
       (B) Outlays, -$67,060,000,000.
       Fiscal year 2010:
       (A) New budget authority, -$70,645,000,000.
       (B) Outlays, -$70,645,000,000.
       Fiscal year 2011:
       (A) New budget authority, -$73,364,000,000.
       (B) Outlays, -$73,364,000,000.
       Fiscal year 2012:
       (A) New budget authority, -$76,104,000,000.
       (B) Outlays, -$76,104,000,000.
       Fiscal year 2013:
       (A) New budget authority, -$79,691,000,000.
       (B) Outlays, -$79,691,000,000.
       (21) Overseas Deployments and Other Activities (970):
       Fiscal year 2008:
       (A) New budget authority, $108,056,000,000.
       (B) Outlays, $28,901,000,000.
       Fiscal year 2009:
       (A) New budget authority, $70,000,000,000.
       (B) Outlays, $74,809,000,000.
       Fiscal year 2010:
       (A) New budget authority, $0.
       (B) Outlays, $47,407,000,000.
       Fiscal year 2011:
       (A) New budget authority, $0.
       (B) Outlays, $18,251,000,000.
       Fiscal year 2012:
       (A) New budget authority, $0.
       (B) Outlays, $5,176,000,000.
       Fiscal year 2013:
       (A) New budget authority, $0.
       (B) Outlays, $1,775,000,000.

                        TITLE II--RESERVE FUNDS

                    Subtitle A--House Reserve Funds

     SEC. 201. DEFICIT-NEUTRAL RESERVE FUND FOR SCHIP LEGISLATION.

       In the House, the Chairman of the Committee on the Budget 
     may revise the allocations of a committee or committees, 
     aggregates, and other appropriate levels in this resolution 
     for any bill, joint resolution, amendment, or conference 
     report, 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 no more than 
     $50,000,000,000 in outlays in fiscal years 2008 through 2013, 
     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 period 
     of fiscal years 2008 through 2013 or for the period of fiscal 
     years 2008 through 2018.

     SEC. 202. DEFICIT-NEUTRAL RESERVE FUND FOR AMERICA'S VETERANS 
                   AND SERVICEMEMBERS.

       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 would--
       (1) enhance medical care, disability evaluations, or 
     disability benefits for wounded or disabled military 
     personnel or veterans (including measures to expedite the 
     claims process);
       (2) maintain affordable health care for military retirees 
     and veterans;
       (3) expand the number of disabled military retirees who 
     receive both disability compensation and retired pay, or 
     would accelerate the date by which eligible retirees under 
     section 1414 of title 10, United States Code, will fully 
     receive both veterans' disability compensation and retired 
     pay;
       (4) eliminate the offset between Survivor Benefit Plan 
     annuities and Veterans' Dependency and Indemnity 
     Compensation;
       (5) provide for the continuing payment to members of the 
     Armed Forces who are retired or separated from the Armed 
     Forces due to a combat-related injury after September 11, 
     2001, of bonuses that such members were entitled to before 
     the retirement or separation and would continue to be 
     entitled to if such members were not retired or separated;
       (6) enhance programs and activities to increase the 
     availability of health care and other veterans services for 
     veterans living in rural areas; or

[[Page H4221]]

       (7) provide or increase benefits for Filipino veterans of 
     World War II or their survivors and dependents

     by the amounts provided in such legislation for those 
     purposes, provided that such legislation would not increase 
     the deficit or decrease the surplus for the period of fiscal 
     years 2008 through 2013 or for the period of fiscal years 
     2008 through 2018.

     SEC. 203. DEFICIT-NEUTRAL RESERVE FUND FOR EDUCATION BENEFITS 
                   FOR SERVICEMEMBERS, VETERANS, AND THEIR 
                   FAMILIES.

       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 would--
       (1) enhance educational benefits or assistance for 
     servicemembers and veterans with service on active duty in 
     the Armed Forces on or after September 11, 2001;
       (2) allow for the transfer of education benefits from 
     servicemembers to spouses, survivors, or dependents; or
       (3) otherwise enhance education benefits or assistance for 
     servicemembers (including Active Duty, National Guard, and 
     Reserve), veterans, or their spouses, survivors, or 
     dependents

     by the amounts provided in such legislation for those 
     purposes, provided that such legislation would not increase 
     the deficit or decrease the surplus over either the period of 
     fiscal years 2008 through 2013 or the period of fiscal years 
     2008 through 2018.

     SEC. 204. DEFICIT-NEUTRAL RESERVE FUND FOR INFRASTRUCTURE 
                   INVESTMENT.

       In the House, the Chairman of the Committee on the Budget 
     may revise the allocations, aggregates, and other appropriate 
     levels in this resolution for any bill, joint resolution, 
     amendment, or conference report that provides for a robust 
     Federal investment in America's infrastructure, which may 
     include projects for transit, rail (including high-speed 
     passenger rail), airport, seaport, public housing, energy, 
     water, highway, bridge, or other infrastructure projects by 
     the amounts provided in such measure if such measure would 
     not increase the deficit or decrease the surplus for the 
     period of fiscal years 2008 through 2013 or for the period 
     of fiscal years 2008 through 2018.

     SEC. 205. DEFICIT-NEUTRAL RESERVE FUND FOR RENEWABLE ENERGY 
                   AND ENERGY EFFICIENCY.

       In the House, the Chairman of the Committee on the Budget 
     may revise the allocations, aggregates, and other appropriate 
     levels in this resolution for any bill, joint resolution, 
     amendment, or conference report that provides tax incentives 
     for or otherwise encourages the production of renewable 
     energy or increased energy efficiency; encourages investment 
     in emerging energy or vehicle technologies or carbon capture 
     and sequestration; provides for reductions in greenhouse gas 
     emissions; or facilitates the training of workers for these 
     industries (``green collar jobs'') by the amounts provided in 
     such measure if such measure would not increase the deficit 
     or decrease the surplus for the period of fiscal years 2008 
     through 2013 or for the period of fiscal years 2008 through 
     2018.

     SEC. 206. DEFICIT-NEUTRAL RESERVE FUND FOR MIDDLE-INCOME TAX 
                   RELIEF AND ECONOMIC EQUITY.

       In the House, the Chairman of the Committee on the Budget 
     may revise the allocations, aggregates, and other appropriate 
     levels in this resolution for any bill, joint resolution, 
     amendment, or conference report that provides for tax relief 
     for middle-income families and taxpayers or 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, 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 small business expensing, extension of the 
     deduction for State and local sales taxes, or a tax credit 
     for school construction bonds, by the amounts provided in 
     such measure if such measure would not increase the deficit 
     or decrease the surplus for the period of fiscal years 2008 
     through 2013 or for the period of fiscal years 2008 through 
     2018.

     SEC. 207. DEFICIT-NEUTRAL RESERVE FUND FOR REFORM OF THE 
                   ALTERNATIVE MINIMUM TAX.

       In the House, the Chairman of the Committee on the Budget 
     may revise the allocations, aggregates, and other appropriate 
     levels in this resolution for any bill, joint resolution, 
     amendment, or conference report that provides 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 measure if such measure would 
     not increase the deficit or decrease the surplus for the 
     period of fiscal years 2008 through 2013 or for the period of 
     fiscal years 2008 through 2018.

     SEC. 208. DEFICIT-NEUTRAL RESERVE FUND FOR HIGHER EDUCATION.

       In the House, the Chairman of the Committee on the Budget 
     may revise the allocations, aggregates, and other appropriate 
     levels in this resolution for any bill, joint resolution, 
     amendment, or conference report that makes college more 
     affordable or accessible through reforms to the Higher 
     Education Act of 1965 or other legislation by the amounts 
     provided in such measure if such measure would not increase 
     the deficit or decrease the surplus for the period of fiscal 
     years 2008 through 2013 or for the period of fiscal years 
     2008 through 2018.

     SEC. 209. DEFICIT-NEUTRAL RESERVE FUND FOR AFFORDABLE 
                   HOUSING.

       In the House, the Chairman of the Committee on the Budget 
     may revise the allocations, aggregates, and other appropriate 
     levels in this resolution for any bill, joint resolution, 
     amendment, or conference report that provides for an 
     affordable housing fund, offset by reforming the regulation 
     of certain government-sponsored enterprises, by the amounts 
     provided in such measure if such measure would not increase 
     the deficit or decrease the surplus for the period of fiscal 
     years 2008 through 2013 or for the period of fiscal years 
     2008 through 2018.

     SEC. 210. DEFICIT-NEUTRAL RESERVE FUND FOR MEDICARE 
                   IMPROVEMENTS.

       In the House, the Chairman of the Committee on the Budget 
     may revise the allocations, aggregates, and other appropriate 
     levels in this resolution for any bill, joint resolution, 
     amendment, or conference report that improves the Medicare 
     program for beneficiaries and protects access to care, which 
     may include measures such as--
       (1) increasing the reimbursement rate for physicians while 
     protecting beneficiaries from associated premium increases;
       (2) providing for--
       (A) an increase in the asset allowance under the Medicare 
     Part D low-income subsidy program so that individuals with 
     very limited incomes, but modest retirement savings, can 
     obtain the assistance that the Medicare Prescription Drug, 
     Improvement, and Modernization Act of 2003 was intended to 
     deliver with respect to the payment of premiums and cost-
     sharing under the Medicare Part D prescription drug benefit;
       (B) an update in the income and asset allowances under the 
     Medicare Savings Program and an annual inflationary 
     adjustment for those allowances; or
       (C) improved outreach and enrollment under the Medicare 
     Savings Program and the Medicare Part D low-income subsidy 
     program to ensure that low-income senior citizens and other 
     low-income Medicare beneficiaries receive the low-income 
     assistance for which they are eligible in accordance with the 
     improvements provided for in such legislation;
       (3) reductions in beneficiary cost-sharing for preventive 
     benefits under Medicare Part B; or
       (4) limiting inappropriate or abusive marketing tactics by 
     private insurers and their agents offering Medicare Advantage 
     or Medicare prescription drug plans

     by the amounts provided in such measure if such measure would 
     not increase the deficit or decrease the surplus for the 
     period of fiscal years 2008 through 2013 or for the period of 
     fiscal years 2008 through 2018.

     SEC. 211. DEFICIT-NEUTRAL RESERVE FUND FOR HEALTH CARE 
                   QUALITY, EFFECTIVENESS, AND EFFICIENCY.

       In the House, the Chairman of the Committee on the Budget 
     may revise the allocations, aggregates, and other appropriate 
     levels in this resolution for any bill, joint resolution, 
     amendment, or conference report that--
       (1) provides incentives or other support for adoption of 
     modern information technology, including electronic 
     prescribing, to improve quality and protect privacy in health 
     care;
       (2) establishes a new Federal or public-private initiative 
     for research on the comparative effectiveness of different 
     medical interventions;
       (3) provides parity between health insurance coverage of 
     mental health benefits and benefits for medical and surgical 
     services, including parity in public programs;
       (4) improves health care, provides quality health insurance 
     for the uninsured and underinsured, and protects individuals 
     with current health coverage; or
       (5) reauthorizes the special diabetes program for Indians 
     and the special diabetes programs for Type 1 diabetes

     by the amounts provided in such measure if such measure would 
     not increase the deficit or decrease the surplus for the 
     period of fiscal years 2008 through 2013 or for the period of 
     fiscal years 2008 through 2018.

     SEC. 212. DEFICIT-NEUTRAL RESERVE FUND FOR MEDICAID AND OTHER 
                   PROGRAMS.

       (a) Regulations and Administrative Actions.--In the House, 
     the Chairman of the Committee on the Budget may revise the 
     allocations, aggregates, and other appropriate levels in this 
     resolution for any bill, joint resolution, amendment, or 
     conference report that prevents or delays the implementation 
     or administration of regulations or other administrative 
     actions that would affect the Medicaid, SCHIP, or other 
     programs by the amounts provided in such measure if such 
     measure would not increase the deficit or decrease the 
     surplus for the period of fiscal years 2008 through 2013 or 
     for the period of fiscal years 2008 through 2018.
       (b) Transitional Medical Assistance and Qualifying 
     Individuals.--In the House, the Chairman of the Committee on 
     the Budget may revise the allocations, aggregates, and other 
     appropriate levels in this resolution for any bill, joint 
     resolution, amendment, or conference report that extends the 
     transitional medical assistance program or the qualifying 
     individuals program, which are included in title XIX of the 
     Social Security Act, by the amounts provided in such 
     measure if such measure would not increase the deficit or 
     decrease the surplus for the period of fiscal years 2008 
     through 2013 or for the period of fiscal years 2008 
     through 2018.
       (c) Demonstration Project Regarding Medicaid Coverage of 
     Low-Income HIV-Infected Individuals.--In the House, the 
     Chairman of the Committee on the Budget may revise the 
     allocations, aggregates, and other appropriate levels in this 
     resolution for any bill, joint resolution, amendment, 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

[[Page H4222]]

     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 such 
     measure if such measure would not increase the deficit or 
     decrease the surplus for the period of fiscal years 2008 
     through 2013 or for the period of fiscal years 2008 through 
     2018.
       (d) Pediatric Dental Care.--In the House, the Chairman of 
     the Committee on the Budget may revise the allocations, 
     aggregates, and other appropriate levels in this resolution 
     for any bill, joint resolution, amendment, or conference 
     report that would provide for improved access to pediatric 
     dental care for children from low-income families by the 
     amounts provided in such measure if such measure would not 
     increase the deficit or decrease the surplus for the period 
     of fiscal years 2008 through 2013 or for the period of fiscal 
     years 2008 through 2018.

     SEC. 213. DEFICIT-NEUTRAL RESERVE FUND FOR A 9/11 HEALTH 
                   PROGRAM.

       In the House, the Chairman of the Committee on the Budget 
     may revise the allocations, aggregates, and other appropriate 
     levels in this resolution for any bill, joint resolution, 
     amendment, or conference report that would establish a 
     program, including medical monitoring and treatment, 
     addressing the adverse health impacts linked to the September 
     11, 2001, attacks by the amounts provided in such measure if 
     such measure would not increase the deficit or decrease the 
     surplus for the period of fiscal years 2008 through 2013 or 
     for the period of fiscal years 2008 through 2018.

     SEC. 214. DEFICIT-NEUTRAL RESERVE FUND FOR TRADE ADJUSTMENT 
                   ASSISTANCE AND UNEMPLOYMENT INSURANCE 
                   MODERNIZATION.

       In the House, the Chairman of the Committee on the Budget 
     may revise the allocations, aggregates, and other appropriate 
     levels in this resolution for any bill, joint resolution, 
     amendment, or conference report that reauthorizes the trade 
     adjustment assistance program to better meet the challenges 
     of globalization or modernizes the unemployment insurance 
     system to improve access to needed benefits by the amounts 
     provided in such measure if such measure would not increase 
     the deficit or decrease the surplus for the period of fiscal 
     years 2008 through 2013 or for the period of fiscal years 
     2008 through 2018.

     SEC. 215. DEFICIT-NEUTRAL RESERVE FUND FOR COUNTY PAYMENTS 
                   LEGISLATION.

       In the House, the Chairman of the Committee on the Budget 
     may revise the allocations, aggregates, and other appropriate 
     levels in this resolution for any bill, joint resolution, 
     amendment, or conference report 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) by the amounts provided in such measure if such 
     measure would not increase the deficit or decrease the 
     surplus for the period of fiscal years 2008 through 2013 or 
     for the period of fiscal years 2008 through 2018.

     SEC. 216. DEFICIT-NEUTRAL RESERVE FUND FOR SAN JOAQUIN RIVER 
                   RESTORATION AND NAVAJO NATION WATER RIGHTS 
                   SETTLEMENTS.

       In the House, the Chairman of the Committee on the Budget 
     may revise the allocations, aggregates, and other appropriate 
     levels in this resolution for any bill, joint resolution, 
     amendment, or conference report that would fulfill the 
     purposes of the San Joaquin River Restoration Settlement Act 
     or implement a Navajo Nation water rights settlement and 
     other provisions authorized by the Northwestern New Mexico 
     Rural Water Projects Act by the amounts provided in such 
     measure if such measure would not increase the deficit or 
     decrease the surplus for the period of fiscal years 2008 
     through 2013 or for the period of fiscal years 2008 through 
     2018.

     SEC. 217. DEFICIT-NEUTRAL RESERVE FUND FOR THE NATIONAL PARK 
                   CENTENNIAL FUND.

       In the House, the Chairman of the Committee on the Budget 
     may revise the allocations, aggregates, and other appropriate 
     levels in this resolution for any bill, joint resolution, 
     amendment, or conference report that provides for the 
     establishment of the National Park Centennial Fund by the 
     amounts provided in such measure for that purpose if such 
     measure would not increase the deficit or decrease the 
     surplus for the period of fiscal years 2008 through 2013 or 
     for the period of fiscal years 2008 through 2018.

     SEC. 218. DEFICIT-NEUTRAL RESERVE FUND FOR CHILD SUPPORT 
                   ENFORCEMENT.

       In the House, the Chairman of the Committee on the Budget 
     may revise the allocations, aggregates, and other appropriate 
     levels in this resolution for any bill, joint resolution, 
     amendment, or conference report that improves Federal child 
     support collection efforts or results in more collected child 
     support reaching families by the amounts provided in such 
     measure if such measure would not increase the deficit or 
     decrease the surplus for the period of fiscal years 2008 
     through 2013 or for the period of fiscal years 2008 through 
     2018.

     SEC. 219. DEFICIT-NEUTRAL RESERVE FUND FOR CHILDREN AND 
                   FAMILIES.

        In the House, the Chairman of the Committee on the Budget 
     may revise the allocations, aggregates, and other appropriate 
     levels in this resolution for any bill, joint resolution, 
     amendment, or conference report that assists children and 
     families by improving child welfare programs, extending and 
     improving provisions in the Temporary Assistance for Needy 
     Families program, or providing up to $5,000,000,000 for the 
     child care entitlement to States by the amounts provided in 
     such measure if such measure would not increase the deficit 
     or decrease the surplus for the period of fiscal years 2008 
     through 2013 or for the period of fiscal years 2008 through 
     2018.

     SEC. 220. RESERVE FUND ADJUSTMENT FOR REVENUE MEASURES IN THE 
                   HOUSE.

       (a) In the House, with respect to consideration of any 
     bill, joint resolution, amendment, or conference report that 
     would have the net effect of increasing the deficit or 
     reducing the surplus for the period of fiscal years 2008 
     through 2013 or the period of fiscal years 2008 through 2018 
     and that would decrease total revenues for the period of 
     fiscal years 2009 through 2013 below the Congressional Budget 
     Office baseline for this concurrent resolution on the budget, 
     the Chairman of the Committee on the Budget shall increase 
     the revenue aggregates by $340,570,000,000 for the period of 
     fiscal years 2009 through 2013 if the Chairman determines 
     that such legislation does not include language consistent 
     with the applicable 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 under this section.
       (b) Section 321 of S. Con. Res. 21, the Concurrent 
     Resolution on the Budget for Fiscal Year 2008, shall no 
     longer apply.

                    Subtitle B--Senate Reserve Funds

     SEC. 221. DEFICIT-NEUTRAL RESERVE FUND TO STRENGTHEN AND 
                   STIMULATE THE AMERICAN ECONOMY AND PROVIDE 
                   ECONOMIC RELIEF TO AMERICAN FAMILIES.

       (a) Tax Relief.--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 and expired 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 2008 
     through 2013 or the period of the total of fiscal years 2008 
     through 2018.
       (b) Manufacturing.--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 efforts to train and retrain 
     manufacturing workers, by increasing support for development 
     of alternative fuels and leap-ahead automotive and energy 
     technologies, or 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 2008 through 2013 or the period of the total of 
     fiscal years 2008 through 2018.
       (c) Housing.--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 would provide housing 
     assistance, which may include low income rental assistance, 
     or establish an affordable housing fund financed by the 
     housing government sponsored enterprises or other sources, 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 2008 
     through 2013 or the period of the total of fiscal years 2008 
     through 2018.
       (d) Flood Insurance Reform.--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 would provide 
     for flood insurance reform and modernization, 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 2008 through 
     2013 or the period of the total of fiscal years 2008 through 
     2018.
       (e) Trade.--The Chairman of the Senate Committee on the 
     Budget may revise the allocations, aggregates, and other 
     levels in this resolution for one or more bills, joint 
     resolutions, amendments, motions, or conference reports 
     relating to trade, 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 2008 through 2013 or the 
     period of the total of fiscal years 2008 through 2018.
       (f) Economic Relief for American Families.--The Chairman of 
     the Senate 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) reauthorizes the Temporary Assistance for Needy 
     Families supplemental grants or makes improvements to the 
     Temporary Assistance for Needy Families program, child 
     welfare programs, or the child support enforcement program;
       (2) provides up to $5,000,000,000 for the child care 
     entitlement to States;
       (3) provides up to $40,000,000 for the emergency food 
     assistance program established under the Emergency Food 
     Assistance Act of 1983 (7 U.S.C. 7501 et seq.);
       (4) improves the unemployment compensation program; or
       (5) reauthorizes trade adjustment assistance programs

[[Page H4223]]

     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 2008 through 2013 or the period of the total of fiscal 
     years 2008 through 2018.
       (g) America's Farms and Economic Investment in Rural 
     America.--
       (1) Farm bill.--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 
     $15,000,000,000 over the period of the total of fiscal years 
     2008 through 2013, provided that such legislation would not 
     increase the deficit over either the period of the total of 
     fiscal years 2008 through 2013 or the period of the total of 
     fiscal years 2008 through 2018.
       (2) County payments.--The Chairman of the Senate 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, provided that such 
     legislation would not increase the deficit over either the 
     period of the total of fiscal years 2008 through 2013 or the 
     period of the total of fiscal years 2008 through 2018.

     SEC. 222. DEFICIT-NEUTRAL RESERVE FUND FOR IMPROVING 
                   EDUCATION.

       The Chairman of the Senate Committee on the Budget may 
     revise the allocations of a committee or committees, 
     aggregates, and other levels and limits in this resolution 
     for one or more bills, joint resolutions, amendments, 
     motions, or conference reports that would improve education, 
     which may include--
       (1) making higher education more accessible or more 
     affordable, which may include increasing funding for the 
     Federal Pell Grant program or increasing Federal student loan 
     limits;
       (2) facilitating modernization of school facilities through 
     renovation or construction bonds, reducing the cost of 
     teachers' out-of-pocket expenses for school supplies, or 
     providing tax incentives for highly-qualified teachers to 
     serve in high-needs schools;
       (3) improving student achievement during secondary 
     education, including middle school completion, increasing 
     high school graduation, and preparing students for higher 
     education and the workforce; or
       (4) promoting flexibility and accountability in Federal 
     education programs
     by the amounts provided in such legislation for such 
     purposes, provided that such legislation would not increase 
     the deficit over either the period of the total of fiscal 
     years 2008 through 2013 or the period of the total of fiscal 
     years 2008 through 2018.

     SEC. 223. DEFICIT-NEUTRAL RESERVE FUND FOR INVESTMENTS IN 
                   AMERICA'S INFRASTRUCTURE.

       The Chairman of the Senate Committee on the Budget may 
     revise the aggregates, allocations, and other appropriate 
     levels and limits in this resolution for one or more bills, 
     joint resolutions, amendments, motions, or conference reports 
     that provide for a robust Federal investment in America's 
     infrastructure, which may include projects for transit, rail 
     (including high-speed passenger rail), airport, seaport, 
     public housing, energy, water, highway, bridge, or other 
     infrastructure projects, 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 2008 through 2013 or the 
     period of the total of fiscal years 2008 through 2018.

     SEC. 224. DEFICIT-NEUTRAL RESERVE FUND TO INVEST IN CLEAN 
                   ENERGY, PRESERVE THE ENVIRONMENT, AND PROVIDE 
                   FOR CERTAIN SETTLEMENTS.

       (a) Energy and the Environment.--The Chairman of the Senate 
     Committee on the Budget may revise the allocations of a 
     committee or committees, aggregates, and other levels and 
     limits in this resolution for one or more bills, joint 
     resolutions, amendments, motions, or conference reports that 
     would decrease greenhouse gas emissions, reduce our Nation's 
     dependence on imported energy, produce green jobs, encourage 
     consumers to install smart electricity meters in homes and 
     businesses, encourage the capture and storage of carbon 
     dioxide emissions from coal projects, or preserve or protect 
     national parks, oceans, or coastal areas, 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 2008 through 
     2013 or the period of the total of fiscal years 2008 through 
     2018. The legislation may include tax legislation such as a 
     proposal to extend for 5 years energy tax incentives like the 
     production tax credit for electricity produced from renewable 
     resources, the biodiesel production tax credit, or the 
     Clean Renewable Energy Bond program, to provide a tax 
     credit for clean burning wood stoves, a tax credit for 
     production of cellulosic ethanol, a tax credit for plug-in 
     hybrid vehicles, or provisions to encourage energy 
     efficient buildings, products, and power plants. Tax 
     legislation under this section may be paid for by 
     adjustments to section 167(h)(1) of the Internal Revenue 
     Code of 1986 as it relates to integrated oil companies.
       (b) Settlements.--The Chairman of the Senate 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 or implement a Navajo Nation water rights settlement and 
     other provisions authorized by the Northwestern New Mexico 
     Rural Water Projects Act, by the amounts provided by that 
     legislation for those purposes, provided that such 
     legislation would not increase the deficit over either the 
     period of the total of fiscal years 2008 through 2013 or the 
     period of the total of fiscal years 2008 through 2018.

     SEC. 225. DEFICIT-NEUTRAL RESERVE FUND FOR AMERICA'S VETERANS 
                   AND SERVICEMEMBERS.

       The Chairman of the Senate 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--
       (1) enhance medical care, disability evaluations, or 
     disability benefits for wounded or disabled military 
     personnel or veterans (including measures to expedite the 
     claims process);
       (2) maintain affordable health care for military retirees 
     and veterans;
       (3) expand the number of disabled military retirees who 
     receive both disability compensation and retired pay, or 
     would accelerate the date by which eligible retirees under 
     section 1414 of title 10, United States Code, will fully 
     receive both veterans' disability compensation and retired 
     pay;
       (4) eliminate the offset between Survivor Benefit Plan 
     annuities and Veterans' Dependency and Indemnity 
     Compensation;
       (5) provide for the continuing payment to members of the 
     Armed Forces who are retired or separated from the Armed 
     Forces due to a combat-related injury after September 11, 
     2001, of bonuses that such members were entitled to before 
     the retirement or separation and would continue to be 
     entitled to if such members were not retired or separated;
       (6) enhance programs and activities to increase the 
     availability of health care and other veterans services for 
     veterans living in rural areas; or
       (7) provide or increase benefits for Filipino veterans of 
     World War II or their survivors and dependents
     by the amounts provided in such legislation for those 
     purposes, provided that such legislation does not include 
     increased fees charged to veterans for pharmacy co-payments, 
     annual enrollment, or third-party insurance payment offsets, 
     and further provided that such legislation would not increase 
     the deficit or decrease the surplus for the period of fiscal 
     years 2008 through 2013 or for the period of fiscal years 
     2008 through 2018.

     SEC. 226. DEFICIT-NEUTRAL RESERVE FUND FOR EDUCATION BENEFITS 
                   FOR SERVICEMEMBERS, VETERANS, AND THEIR 
                   FAMILIES.

       The Chairman of the Senate 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--
       (1) enhance educational benefits or assistance for 
     servicemembers and veterans with service on active duty in 
     the Armed Forces on or after September 11, 2001;
       (2) allow for the transfer of education benefits from 
     servicemembers to spouses, survivors, or dependents; or
       (3) otherwise enhance education benefits or assistance for 
     servicemembers (including Active Duty, National Guard, and 
     Reserve), veterans, or their spouses, survivors, or 
     dependents
     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 2008 through 2013 or the period of the total of fiscal 
     years 2008 through 2018.

     SEC. 227. DEFICIT-NEUTRAL RESERVE FUND TO IMPROVE AMERICA'S 
                   HEALTH.

       (a) SCHIP.--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 2008 through 2013 for 
     reauthorization of 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 2008 through 2013, and provided that 
     such legislation would not increase the deficit over either 
     the period of the total of fiscal years 2008 through 2013 or 
     the period of the total of fiscal years 2008 through 2018.
       (b) Medicare Improvements.--
       (1) Physician payments.--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

[[Page H4224]]

     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 2008 through 
     2013 or the period of the total of fiscal years 2008 through 
     2018.
       (2) Other improvements to medicare.--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 Medicare 
     program, which may include--
       (A) reductions in beneficiary cost-sharing for preventive 
     benefits under Medicare Part B;
       (B) the preservation or promotion of payment provisions 
     that support America's rural health care delivery system;
       (C) limits to inappropriate or abusive marketing tactics by 
     private insurers and their agents offering Medicare Advantage 
     or Medicare prescription drug plans by enacting any or all of 
     the recommendations agreed to by leaders of the health 
     insurance industry on March 3, 2008, including prohibitions 
     on cold calling and telephone solicitations for in-home sales 
     appointments with Medicare beneficiaries;
       (D) a three-year extension of the pilot program for 
     national and State background checks on direct patient access 
     employees of long-term care facilities or providers under 
     section 307 of the Medicare Prescription Drug, Improvement, 
     and Modernization Act of 2003 (42 U.S.C. 1395aa note) and 
     removing the limit on the number of participating States 
     under such pilot program; or
       (E) measures to 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 up to $10,000,000,000, provided that such 
     legislation would not increase the deficit over either the 
     period of the total of fiscal years 2008 through 2013 or the 
     period of the total of fiscal years 2008 through 2018.
       (3) Medicare low-income programs.--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 Medicare 
     Savings Program and the Medicare Part D low-income subsidy 
     program, which may include the provisions that--
       (A) provide for an increase in the asset allowance under 
     the Medicare Part D low-income subsidy program so that 
     individuals with very limited incomes, but modest retirement 
     savings, can obtain the assistance that the Medicare 
     Prescription Drug, Improvement, and Modernization Act of 2003 
     was intended to deliver with respect to the payment of 
     premiums and cost-sharing under the Medicare Part D 
     prescription drug benefit;
       (B) provide for an update in the income and asset 
     allowances under the Medicare Savings Program and provide for 
     an annual inflationary adjustment for those allowances; and
       (C) improve outreach and enrollment under the Medicare 
     Savings Program and the Medicare Part D low-income subsidy 
     program to ensure that low-income senior citizens and other 
     low-income Medicare beneficiaries receive the low-income 
     assistance for which they are eligible in accordance with the 
     improvements provided for in such legislation
     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 2008 through 2013 or the period of the total of fiscal 
     years 2008 through 2018.
       (c) Health Care Quality, Effectiveness, Efficiency, and 
     Transparency.--
       (1) Comparative effectiveness research.--The Chairman of 
     the Senate 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 those purposes, provided that such 
     legislation would not increase the deficit over either the 
     period of the total of fiscal years 2008 through 2013 or the 
     period of the total of fiscal years 2008 through 2018.
       (2) Improving the health care system.--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--
       (A) 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
       (B) 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
     by the amounts provided for those purposes, provided that 
     such legislation would not increase the deficit over either 
     the period of the total of fiscal years 2008 through 2013 or 
     the period of the total of fiscal years 2008 through 2018.
       (3) Health information technology and adherence to best 
     practices.--
       (A) Health information technology.--The Chairman of the 
     Senate 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 incentives or other 
     support for adoption of modern information technology, 
     including incentives or other supports for the adoption of 
     electronic prescribing technology, to improve quality and 
     protect privacy in health care, such as activities by the 
     Department of Defense and the Department of Veterans 
     Affairs to integrate their electronic health record data, 
     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 2008 through 2013 or the period of the total of 
     fiscal years 2008 through 2018.
       (B) Adherence to best practices.--The Chairman of the 
     Committee on the Budget of the Senate 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 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, provided that such legislation would not 
     increase the deficit over either the period of the total of 
     fiscal years 2008 through 2013 or the period of the total of 
     fiscal years 2008 through 2018.
       (d) Food and Drug Administration.--
       (1) Regulation.--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 2008 through 
     2013 or the period of the total of fiscal years 2008 through 
     2018.
       (2) Drug importation.--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 those purposes, 
     provided that such legislation would not increase the deficit 
     over either the period of the total of fiscal years 2008 
     through 2013 or the period of the total of fiscal years 2008 
     through 2018.
       (e) Medicaid.--
       (1) Rules or administrative actions.--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 includes provisions regarding the 
     implementation or administration of regulations or other 
     administrative actions pertaining to Medicaid or SCHIP or 
     includes provisions regarding administrative guidance issued 
     in August 2007 affecting SCHIP or any other administrative 
     action that would affect SCHIP in a similar manner by the 
     amounts provided in that legislation for those purposes, 
     provided that such legislation would not increase the deficit 
     over either the total of the period of fiscal years 2008 
     through 2013 or the total of the period of fiscal years 2008 
     through 2018.
       (2) Transitional medical assistance.--The Chairman of the 
     Senate 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 those purposes, provided 
     that such legislation would not increase the deficit over 
     either the total of the period of fiscal years 2008 through 
     2013 or the total of the period of fiscal years 2008 through 
     2018.
       (f) Other Improvements in Health.--The Chairman of the 
     Senate 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) make health insurance coverage more affordable or 
     available to small businesses and their employees, through 
     pooling arrangements that provide appropriate consumer 
     protections, or through reducing barriers to cafeteria plans;
       (2) improve health care, provide quality health insurance 
     for the uninsured and underinsured, and protect individuals 
     with current health coverage;
       (3) reauthorize the special diabetes program for Indians 
     and the special diabetes programs for Type 1 diabetes;
       (4) 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; or
       (5) 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 those 
     purposes, provided that such legislation would not increase 
     the deficit over either the period of the total of fiscal 
     years 2008 through 2013 or the period of the total of fiscal 
     years 2008 through 2018.
       (g) Pediatric Dental Care.--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 would provide for improved access to

[[Page H4225]]

     pediatric dental care for children from low-income families, 
     by the amounts provided in such legislation for such purpose, 
     provided that such legislation would not increase the deficit 
     over either the period of the total of fiscal years 2008 
     through 2013 or the period of the total of fiscal years 2008 
     through 2018.

     SEC. 228. DEFICIT-NEUTRAL RESERVE FUND FOR REFORM OF THE 
                   ALTERNATIVE MINIMUM TAX.

        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, amendment, motion, 
     or conference report that provides 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 measure for that purpose, provided 
     that such legislation would not increase the deficit over 
     either the period of the total of fiscal years 2008 through 
     2013 or the period of the total of fiscal years 2008 through 
     2018.

     SEC. 229. DEFICIT-NEUTRAL RESERVE FUND FOR JUDICIAL PAY AND 
                   JUDGESHIPS.

       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 would authorize salary adjustments 
     for justices and judges of the United States or increase the 
     number of Federal judgeships, 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 2008 through 2013 or the 
     period of the total of fiscal years 2008 through 2018.

     SEC. 230. DEFICIT-NEUTRAL RESERVE FUND FOR IMMIGRATION 
                   ENFORCEMENT AND REFORM.

       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 would provide for greater border 
     security, enforcement of immigration laws, backlog reduction 
     and improvement of immigration services, reimbursement to 
     states for the costs of incarcerating criminal aliens, or 
     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 2008 
     through 2013 or the period of the total of fiscal years 
     2008 through 2018.

     SEC. 231. DEFICIT-NEUTRAL RESERVE FUND FOR SCIENCE PARKS.

       The Chairman of the Senate Committee on the Budget may 
     revise the allocations of a committee or committees, 
     aggregates, and other levels and limits in this resolution 
     for one or more bills, joint resolutions, amendments, 
     motions, or conference reports that would provide grants and 
     loan guarantees for the development and construction of 
     science parks to promote the clustering of innovation through 
     high technology activities, by the amounts provided in such 
     legislation for such purpose, provided that such legislation 
     would not increase the deficit over either the period of the 
     total of fiscal years 2008 through 2013 or the period of the 
     total of fiscal years 2008 through 2018.

     SEC. 232. DEFICIT-NEUTRAL RESERVE FUND TO TERMINATE 
                   DEDUCTIONS FROM MINERAL REVENUE PAYMENTS TO 
                   STATES.

       The Chairman of the Senate Committee on the Budget may 
     revise the allocations, aggregates, and other levels and 
     limits in this resolution by the amounts provided for those 
     purposes for a bill, joint resolution, amendment, motion, or 
     conference report that would terminate the authority to 
     deduct certain amounts from mineral revenues payable to 
     States under the second undesignated paragraph of the matter 
     under the heading ``administrative provisions'' under the 
     heading ``Minerals Management Service'' of title I of the 
     Department of the Interior, Environment, and Related Agencies 
     Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 
     2109), provided that such legislation would not increase the 
     deficit over the period of the total of fiscal years 2008 
     through 2013 or the period of the total of fiscal years 2008 
     through 2018.

     SEC. 233. DEFICIT-REDUCTION RESERVE FUND FOR INCREASED USE OF 
                   RECOVERY AUDITS.

       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 achieves savings by requiring that 
     agencies increase their use of recovery audits authorized 
     under subchapter VI of chapter 35 of title 31, United States 
     Code, (commonly referred to as the Erroneous Payments 
     Recovery Act of 2001) and uses such savings to reduce the 
     deficit, by the amounts provided in such legislation for such 
     purpose, provided that such legislation would not increase 
     the deficit over either the period of the total of fiscal 
     years 2008 through 2013 or the period of the total of fiscal 
     years 2008 through 2018.

     SEC. 234. DEFICIT-NEUTRAL RESERVE FUND FOR FOOD SAFETY.

       The Chairman of the Senate Committee on the Budget may 
     revise the allocations of a committee or committees, 
     aggregates, and other levels and limits in this resolution 
     for one or more bills, joint resolutions, amendments, 
     motions, or conference reports that would expand the level of 
     Food and Drug Administration and Department of Agriculture 
     food safety inspection services, develop effective approaches 
     to the inspection of domestic and imported food products, 
     provide for infrastructure and information technology systems 
     to enhance the safety of the food supply, expand scientific 
     capacity and training programs, invest in improved 
     surveillance and testing technologies, provide for foodborne 
     illness awareness and education programs, or enhance the Food 
     and Drug Administration's recall authority, by the amounts 
     provided in such legislation for such purposes, provided that 
     such legislation would not increase the deficit over either 
     the period of the total of fiscal years 2008 through 2013 or 
     the period of the total of fiscal years 2008 through 2018.

     SEC. 235. DEFICIT-NEUTRAL RESERVE FUND FOR DEMONSTRATION 
                   PROJECT REGARDING MEDICAID COVERAGE OF LOW-
                   INCOME HIV-INFECTED INDIVIDUALS.

       The Chairman of the Senate 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 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, provided 
     that such legislation would not increase the deficit over 
     either the total of the period of fiscal years 2008 through 
     2013 or the total of the period of fiscal years 2008 through 
     2018.

     SEC. 236. DEFICIT-NEUTRAL RESERVE FUND FOR REDUCING THE 
                   INCOME THRESHOLD FOR THE REFUNDABLE CHILD TAX 
                   CREDIT, AND OTHER SELECTED TAX RELIEF POLICIES.

       The Chairman of the Senate Committee on the Budget may 
     revise the allocations, aggregates, and other levels in this 
     resolution for one or more bills, joint resolutions, 
     amendments, motions, or conference reports that would 
     reduce the income threshold for the refundable child tax 
     credit under section 24 of the Internal Revenue Code of 
     1986 to $10,000 for taxable years 2009 and 2010 with no 
     inflation adjustment; extend enhanced charitable giving 
     from individual retirement accounts, including life-income 
     gifts; or incentivize utilization of accumulated 
     alternative minimum tax and research and development 
     credits, 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 2008 through 2013 or the period of the 
     total of fiscal years 2008 through 2018.

     SEC. 237. DEFICIT-NEUTRAL RESERVE FUND FOR A 9/11 HEALTH 
                   PROGRAM.

       The Chairman of the Senate Committee on the Budget may 
     revise the allocations, aggregates, and other levels and 
     limits in this resolution for a bill, joint resolution, 
     motion, amendment, or conference report that would establish 
     a program, including medical monitoring and treatment, 
     addressing the adverse health impacts linked to the September 
     11, 2001 attacks, by the amounts provided in such legislation 
     for those purposes, if such legislation would not increase 
     the deficit over either the period of fiscal years 2008 
     through 2013 or the period of the total of fiscal years 2008 
     through 2018.

                     TITLE III--BUDGET ENFORCEMENT

                Subtitle A--House Enforcement Provisions

     SEC. 301. PROGRAM INTEGRITY INITIATIVES AND OTHER 
                   ADJUSTMENTS.

       (a) Adjustments to Discretionary Spending Limits.--
       (1) Continuing disability reviews and supplemental security 
     income redeterminations.--In the House, prior to 
     consideration of any bill, joint resolution, amendment, or 
     conference report making appropriations for fiscal year 2009 
     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 $240,000,000, and the 
     amount is designated for continuing disability reviews and 
     Supplemental Security Income redeterminations for the Social 
     Security Administration, the allocation to the Committee on 
     Appropriations shall be increased by the amount of the 
     additional budget authority and outlays resulting from that 
     budget authority for fiscal year 2009.
       (2) Internal revenue service tax compliance.--In the House, 
     prior to consideration of any bill, joint resolution, 
     amendment, or conference report making appropriations for 
     fiscal year 2009 that appropriates $6,997,000,000 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 $490,000,000, and the amount is designated to 
     improve compliance with the provisions of the Internal 
     Revenue Code of 1986, the allocation to the Committee on 
     Appropriations shall be increased by the amount of the 
     additional budget authority and outlays resulting from that 
     budget authority for fiscal year 2009.
       (3) Health care fraud and abuse control program.--In the 
     House, prior to consideration of any bill, joint resolution, 
     amendment, or conference report making appropriations for 
     fiscal year 2009 that appropriates up to $198,000,000 and the 
     amount is designated to the health care fraud and abuse 
     control program at the Department of Health and Human 
     Services, the allocation to the Committee on Appropriations 
     shall be increased by the amount of additional budget 
     authority and outlays resulting from that budget authority 
     for fiscal year 2009.
       (4) Unemployment insurance program integrity activities.--
     In the House, prior to consideration of any bill, joint 
     resolution, amendment, or conference report making 
     appropriations for fiscal year 2009 that appropriates

[[Page H4226]]

     $10,000,000 for in-person reemployment and eligibility 
     assessments and unemployment insurance improper payment 
     reviews for the Department of Labor and provides an 
     additional appropriation of up to $40,000,000, and the amount 
     is designated for in-person reemployment and eligibility 
     assessments and unemployment insurance improper payment 
     reviews for the Department of Labor, the allocation to the 
     Committee on Appropriations shall be increased by the amount 
     of additional budget authority and outlays resulting from 
     that budget authority for fiscal year 2009.
       (b) Costs of Overseas Deployments and Emergency Needs.--
       (1) Overseas deployments and related activities.--
       (A) In the House, if any bill, joint resolution, amendment, 
     or conference report makes appropriations for fiscal year 
     2008 or fiscal year 2009 for overseas deployments and related 
     activities and such amounts are so designated pursuant to 
     this subparagraph, then the allocation to the Committee on 
     Appropriations may be adjusted by the amounts provided in 
     such legislation for that purpose up to the amounts of budget 
     authority specified in section 104(21) for fiscal year 2008 
     or fiscal year 2009 and the new outlays resulting therefrom.
       (B) In the House, if any bill, joint resolution, amendment, 
     or conference report makes appropriations for fiscal year 
     2008 or fiscal year 2009 for overseas deployments and related 
     activities above the amounts of budget authority and new 
     outlays specified in subparagraph (A) and such amounts are so 
     designated pursuant to this subparagraph, 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) Emergency needs.-- In the House, if any bill, joint 
     resolution, amendment, or conference report 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 
     count for the purposes of titles III and IV of the 
     Congressional Budget Act of 1974.
       (c) Procedure for Adjustments.--
       (1) In general.--In the House, prior to consideration of 
     any bill, joint resolution, amendment, or conference report, 
     the Chairman of the Committee on the Budget shall make the 
     adjustments set forth in subsection (a) for the incremental 
     new budget authority in that measure and the outlays 
     resulting from that budget authority if that measure meets 
     the requirements set forth in subsection (a), 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 subsection (b) of this section.
       (2) Matters to be adjusted.--The adjustments referred to in 
     paragraph (1) are to be made to the allocations made under 
     this concurrent resolution on the budget pursuant to section 
     302(a) of the Congressional Budget Act of 1974.
       (d) Supplemental Appropriations for Fiscal Year 2008.--In 
     the House, if any measure making supplemental appropriations 
     for fiscal year 2008 is enacted, the Chairman of the 
     Committee on the Budget shall make the appropriate 
     adjustments in allocations and aggregates to reflect the 
     difference between such measure and the corresponding levels 
     assumed in this resolution.

     SEC. 302. POINT OF ORDER AGAINST ADVANCE APPROPRIATIONS.

       (a) In General.--In the House, except as provided in 
     subsection (b), any bill, joint resolution, amendment, or 
     conference report making a general appropriation or 
     continuing appropriation may not provide for advance 
     appropriations.
       (b) Exceptions.--In the House, an advance appropriation may 
     be provided for fiscal year 2010 for programs, projects, 
     activities, or accounts identified in the joint explanatory 
     statement of managers to accompany this resolution under the 
     heading ``Accounts Identified for Advance Appropriations'' in 
     an aggregate amount not to exceed $28,852,000,000 in new 
     budget authority, and for 2011, accounts separately 
     identified under the same heading.
       (c) Definition.--In this section, 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 2009 that first becomes 
     available for any fiscal year after 2009.

               Subtitle B--Senate Enforcement Provisions

     SEC. 311. 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 4 consecutive 10-year periods 
     beginning with the first fiscal year that is 10 years after 
     the budget year provided for in the most recently adopted 
     concurrent resolution on the budget.
       (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 consecutive 10-
     year periods described in subsection (a).
       (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) Sunset.--This section shall expire on September 30, 
     2017.
       (f) Repeal.--In the Senate, subsections (a) through (d) and 
     subsection (f) of section 203 of S. Con. Res. 21 (110th 
     Congress) shall no longer apply.

     SEC. 312. 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 2008, $1,050,478,000,000 in new budget 
     authority and $1,094,944,000,000 in outlays; and
       (2) for fiscal year 2009, $1,011,718,000,000 in new budget 
     authority and $1,106,112,000,000 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 2009 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 $240,000,000 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 $240,000,000 in budget authority and outlays flowing 
     therefrom for fiscal year 2009.
       (B) Internal revenue service tax enforcement.--If a bill or 
     joint resolution is reported making appropriations for fiscal 
     year 2009 that appropriates $6,997,000,000 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 $490,000,000 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 
     $490,000,000 in budget authority and outlays flowing 
     therefrom for fiscal year 2009.
       (C) Health care fraud and abuse control.--If a bill or 
     joint resolution is reported making appropriations for fiscal 
     year 2009 that appropriates up to $198,000,000 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 
     $198,000,000 in budget authority and outlays flowing 
     therefrom for fiscal year 2009.
       (D) Unemployment insurance improper payment reviews.--If a 
     bill or joint resolution is reported making appropriations 
     for fiscal year 2009 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

[[Page H4227]]

     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 2009.
       (3) Adjustments for overseas deployments and other 
     activities.--The Chairman of the Senate Committee on the 
     Budget may adjust the discretionary spending limits, 
     allocations to the Senate Committee on Appropriations, and 
     aggregates for one or more--
       (A) bills reported by the Senate Committee on 
     Appropriations or passed by the House of Representatives;
       (B) joint resolutions or amendments reported by the Senate 
     Committee on Appropriations;
       (C) amendments between the Houses received from the House 
     of Representatives or Senate amendments offered by the 
     authority of the Senate Committee on Appropriations; or
       (D) conference reports;

     making appropriations for fiscal year 2008 or 2009 for 
     overseas deployments and other activities, by the amounts 
     provided in such legislation for those purposes (and so 
     designated pursuant to this paragraph), up to the amounts of 
     budget authority specified in section 104(21) for fiscal 
     years 2008 and 2009 and the new outlays flowing therefrom.
       (d) Supplemental Appropriations for Fiscal Year 2008.--If 
     legislation making supplemental appropriations for fiscal 
     year 2008 is enacted, the Chairman of the Senate Committee on 
     the Budget may make the appropriate adjustments in 
     allocations, aggregates, discretionary spending limits, and 
     other levels of new budget authority and outlays for 2008 and 
     2009 to reflect the difference between such measure and the 
     corresponding levels assumed in this resolution.
       (e) Inapplicability.--In the Senate, subsections (a), (b), 
     (c), (e), and (f) of section 207 of S. Con. Res. 21 (110th 
     Congress) shall no longer apply.

     SEC. 313. POINT OF ORDER AGAINST ADVANCE APPROPRIATIONS.

       (a) In General.--
       (1) Point of order.--Except as provided in subsection (b), 
     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.
       (2) Definition.--In this section, the term ``advance 
     appropriation'' means any new budget authority provided in a 
     bill or joint resolution making appropriations for fiscal 
     year 2009 that first becomes available for any fiscal year 
     after 2009, or any new budget authority provided in a bill or 
     joint resolution making general appropriations or continuing 
     appropriations for fiscal year 2010, that first becomes 
     available for any fiscal year after 2010.
       (b) Exceptions.--Advance appropriations may be provided--
       (1) for fiscal years 2010 and 2011 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 $28,852,000,000 in new 
     budget authority in each year; and
       (2) for the Corporation for Public Broadcasting.
       (c) Supermajority Waiver and Appeal.--
       (1) Waiver.--In the Senate, subsection (a) may be waived or 
     suspended 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 to sustain an appeal of the ruling of the Chair on a 
     point of order raised under subsection (a).
       (d) Form of Point of Order.--A point of order under 
     subsection (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 section, 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.
       (f) Inapplicability.--In the Senate, section 206(a) of S. 
     Con. Res. 21 (110th Congress) shall no longer apply.

     SEC. 314. 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 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.
       (h) Inapplicability.--In the Senate, section 209 of S. Con. 
     Res. 21 (110th Congress) shall no longer apply.

     SEC. 315. SENATE POINT OF ORDER AGAINST LEGISLATION 
                   INCREASING SHORT-TERM DEFICIT.

       (a) Point of Order.--It shall not be in order in the Senate 
     to consider any bill, joint resolution, amendment, motion, or 
     conference report (except measures within the jurisdiction of 
     the Committee on Appropriations) that would cause a net 
     increase in the deficit in excess of $10,000,000,000 in any 
     fiscal year provided for in the most recently adopted 
     concurrent resolution on the budget unless it is fully offset 
     over the period of all fiscal years provided for in the 
     most recently adopted concurrent resolution on the budget.
       (b) 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.
       (c) Determinations of Budget Levels.--For purposes of this 
     section, the levels shall be determined on the basis of 
     estimates provided by the Senate Committee on the Budget.
       (d) Sunset.--This section shall expire on September 30, 
     2017.

                      Subtitle C--Other Provisions

     SEC. 321. OVERSIGHT OF GOVERNMENT PERFORMANCE.

       All committees are directed to review programs within their 
     jurisdiction to root out waste, fraud, and abuse in program 
     spending, giving particular scrutiny to issues raised by 
     Government Accountability Office reports. Based on

[[Page H4228]]

     these oversight efforts and committee performance reviews of 
     programs within their jurisdiction, 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 appropriate Committee on the Budget.

     SEC. 322. BUDGETARY TREATMENT OF CERTAIN DISCRETIONARY 
                   ADMINISTRATIVE EXPENSES.

       (a) In General.--In the House and Senate, notwithstanding 
     section 302(a)(1) of the Congressional Budget Act of 1974, 
     section 13301 of the Budget Enforcement Act of 1990, and 
     section 2009a of title 39, United States Code, the joint 
     explanatory statement accompanying the conference report on 
     any concurrent resolution on the budget shall include in its 
     allocations under section 302(a) of the Congressional Budget 
     Act of 1974 to the Committees on Appropriations amounts for 
     the discretionary administrative expenses of the Social 
     Security Administration and of the Postal Service.
       (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 off-
     budget discretionary amounts.

     SEC. 323. 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.
       (d) Adjustments.--The Chairmen of the Budget Committees in 
     the House and the Senate may adjust the aggregates, 
     allocations, and other levels in this resolution for 
     legislation which has received final Congressional approval 
     in the same form by the House of Representatives and the 
     Senate, and is either waiting to be presented to the 
     President or awaiting Presidential signature at the time of 
     final consideration of this resolution.

     SEC. 324. ADJUSTMENTS TO REFLECT CHANGES IN CONCEPTS AND 
                   DEFINITIONS.

       Upon the enactment of any 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. 325. EXERCISE OF RULEMAKING POWERS.

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

                            TITLE IV--POLICY

     SEC. 401. POLICY OF THE HOUSE ON MIDDLE-INCOME TAX RELIEF.

       It is the policy of the House to--
       (1) minimize fiscal burdens on middle-income families and 
     their children and grandchildren;
       (2) provide immediate relief for the tens of millions of 
     middle-income households who would otherwise be subject to 
     the alternative minimum tax (AMT) under current law, in the 
     context of permanent, revenue-neutral AMT reform; and
       (3) 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.

     The House assumes that the cost of enacting such policies is 
     offset by reforms within the Internal Revenue Code of 1986 
     that promote a fairer distribution of taxes across families 
     and generations, economic efficiency, higher rates of tax 
     compliance to close the tax gap, and reduced taxpayer burdens 
     through tax simplification.

     SEC. 402. POLICY ON DEFENSE PRIORITIES.

       It is the policy of this resolution that--
       (1) the Administration's budget requests should comply with 
     section 1008, Public Law 109-364, the John Warner National 
     Defense Authorization Act for Fiscal Year 2007, and the 
     Administration should no longer attempt to fund overseas 
     military operations through emergency supplemental 
     appropriations requests;
       (2) the Department of Defense should exclude nonwar 
     requirements from its funding requests for Iraq and 
     Afghanistan;
       (3) 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 (securing ``loose nukes'') is a 
     high priority and should receive far greater emphasis than 
     the President's budget provides;
       (4) readiness of our troops, particularly the National 
     Guard and Reserve, is a high priority, and that greater 
     emphasis needs to be placed on mitigating equipment and 
     training shortfalls;
       (5) TRICARE fees for military retirees under the age of 65 
     should not be increased as the President's budget proposes;
       (6) military pay and benefits should be enhanced to improve 
     the quality of life of military personnel;
       (7) improving military health care services continues to be 
     a high priority and adequate funding to ensure quality health 
     care for returning combat veterans should be provided;
       (8) sufficient funds should be provided to the military 
     services to expedite review of cases involving servicemembers 
     who could have been erroneously discharged from service for a 
     personality disorder, which resulted in a loss of benefits or 
     care, as a result of a combat-related psychological injury 
     (such as Post Traumatic Stress Disorder) or a closed head 
     injury (such as Traumatic Brain Injury);
       (9) 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;
       (10) the Department of Defense should reassess current 
     defense plans to ensure that weapons developed to counter 
     Cold War-era threats are not redundant and are applicable to 
     21st century threats;
       (11) sufficient resources should be provided for the 
     Department of Defense to do an aggressive job of addressing 
     as many as possible of the 1,260 pending recommendations made 
     by the Government Accountability Office (GAO) over the last 7 
     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;
       (12) savings from the actions recommended in paragraphs (9) 
     and (11) of this section should be used to fund the 
     priorities identified in paragraphs (3) through (8);
       (13) the Department of Defense report to Congress on its 
     assessment of cold war weapons and progress on implementing 
     GAO recommendations as outlined in paragraphs (10) and (11) 
     by a time determined by the appropriate authorizing 
     committees; and
       (14) the GAO report to the appropriate congressional 
     committees by the end of the 110th Congress regarding the 
     Department of Defense's progress in implementing its audit 
     recommendations.

               TITLE V--SENSE OF THE SENATE AND CONGRESS

                    Subtitle A--Sense of the Senate

     SEC. 501. SENSE OF THE SENATE REGARDING MEDICAID 
                   ADMINISTRATIVE REGULATIONS.

       (a) Findings.--The Senate makes the following findings:
       (1) The Medicaid program provides essential health care and 
     long-term care services to approximately 60,000,000 low-
     income children, pregnant women, parents, individuals with 
     disabilities, and senior citizens. It is a Federal guarantee 
     that ensures the most vulnerable will have access to needed 
     medical services.
       (2) Medicaid provides critical access to long-term care and 
     other services for the elderly and individuals living with 
     disabilities, and is the single largest provider of long-term 
     care services. Medicaid also pays for personal care and other 
     supportive services that are typically not provided by 
     private health insurance or Medicare, but are necessary to 
     enable individuals with spinal cord injuries, developmental 
     disabilities, neurological degenerative diseases, serious and 
     persistent mental illnesses, HIV/AIDS, and other chronic 
     conditions to remain in the community, to work, and to 
     maintain independence.
       (3) Medicaid supplements the Medicare program for about 
     7,500,000 low-income elderly or disabled Medicare 
     beneficiaries, assisting them with their Medicare premiums 
     and co-insurance, wrap-around benefits, and the costs of 
     nursing home care that Medicare does not cover. The Medicaid 
     program spends over $100,000,000,000 on uncovered Medicare 
     services.
       (4) Medicaid provides health insurance for more than one-
     quarter of America's children and is the largest purchaser of 
     maternity care, paying for more than one-third of all the 
     births in the United States each year. Medicaid also provides 
     critical access to care for children with disabilities, 
     covering more than 70 percent of poor children with 
     disabilities.
       (5) More than 21,000,000 women depend on Medicaid for their 
     health care. Women comprise the majority of seniors (64 
     percent) on Medicaid. Half of nonelderly women with permanent 
     mental or physical disabilities have health coverage through 
     Medicaid. Medicaid provides treatment for low-income women 
     diagnosed with breast or cervical cancer in every State.
       (6) Medicaid is the Nation's largest source of payment for 
     mental health services, HIV/AIDS

[[Page H4229]]

     care, and care for children with special needs. Much of this 
     care is either not covered by private insurance or limited in 
     scope or duration. Medicaid is also a critical source of 
     funding for health care for children in foster care and for 
     health services in schools.
       (7) Medicaid funds help ensure access to care for all 
     Americans. Medicaid is the single largest source of revenue 
     for the Nation's safety net hospitals, health centers, and 
     nursing homes, and is critical to the ability of these 
     providers to adequately serve all Americans.
       (8) Medicaid serves a major role in ensuring that the 
     number of Americans without health insurance, approximately 
     47,000,000 in 2006, is not substantially higher. The system 
     of Federal matching for State Medicaid expenditures ensures 
     that Federal funds will grow as State spending increases in 
     response to unmet needs, enabling Medicaid to help buffer the 
     drop in private coverage during recessions.
       (9) The Bush Administration has issued several regulations 
     that shift Medicaid cost burdens onto States and put at risk 
     the continued availability of much-needed services. The 
     regulations relate to Federal payments to public providers, 
     and for graduate medical education, rehabilitation services, 
     school-based administration, school-based transportation, 
     optional case management services.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that administrative regulations should not--
       (1) undermine the role the Medicaid program plays as a 
     critical component of the health care system of the United 
     States;
       (2) cap Federal Medicaid spending, or otherwise shift 
     Medicaid cost burdens to State or local governments and their 
     taxpayers and health providers, forcing a reduction in access 
     to essential health services for low-income elderly 
     individuals, individuals with disabilities, and children and 
     families; or
       (3) undermine the Federal guarantee of health insurance 
     coverage Medicaid provides, which would threaten not only the 
     health care safety net of the United States, but the entire 
     health care system.

                   Subtitle B--Sense of the Congress

     SEC. 511. SENSE OF THE CONGRESS ON SERVICEMEMBERS' AND 
                   VETERANS' HEALTH CARE AND OTHER PRIORITIES.

       It is the sense of the Congress that--
       (1) the Congress supports excellent health care for current 
     and former members of the United States Armed Services--they 
     have served well and honorably and have made significant 
     sacrifices for this Nation;
       (2) this resolution provides $48,202,000,000 in 
     discretionary budget authority for 2009 for Function 700 
     (Veterans Benefits and Services), including veterans' health 
     care, which is $4,940,000,000 more than the 2008 level, 
     $3,654,000,000 more than the Congressional Budget Office's 
     baseline level for 2009, and $3,284,000,000 more than the 
     President's budget for 2009; and also provides more 
     discretionary budget authority than the President's budget in 
     every year after 2009;
       (3) this resolution provides funding to continue addressing 
     problems such as those identified at Walter Reed Army Medical 
     Center to improve military and veterans' health care 
     facilities and services;
       (4) this resolution assumes the rejection of the health 
     care enrollment fees and pharmaceutical 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 
     injury; 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. 512. SENSE OF THE CONGRESS ON HOMELAND SECURITY.

       It is the sense of the Congress that--
       (1) this resolution assumes additional homeland security 
     funding above the President's requested level for 2009 and 
     every subsequent year;
       (2) this resolution assumes funding above the President's 
     requested level for 2009, 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. 513. SENSE OF THE CONGRESS REGARDING LONG-TERM FISCAL 
                   REFORM.

       It is the sense of the Congress that--
       (1) both the Government Accountability Office and the 
     Congressional Budget Office have warned that the Federal 
     budget is on an unsustainable path of rising deficits and 
     debt;
       (2) using recent trend data and reasonable policy 
     assumptions, CBO has projected that the gap between spending 
     and revenues over the next 75 years will reach 6.9 percent of 
     GDP;
       (3) publicly held debt will rise from 36 percent today to 
     400 percent of GDP by the decade beginning in 2050 under 
     CBO's alternative policy scenario;
       (4) the most significant factor affecting the long-term 
     Federal fiscal landscape is the expectation that total public 
     and private health spending will continue to grow faster than 
     the economy;
       (5) the Congress calls upon governmental and 
     nongovernmental experts to develop specific options to reform 
     the health care system and control costs, that further 
     research and analysis on topics including comparative 
     effectiveness, health information technology, preventative 
     care, and provider incentives is needed, and that of critical 
     importance is the development of a consensus on the 
     appropriate methods for estimating the budgetary impact and 
     health outcome effects of these proposals; and
       (6) immediate policy action is needed to address the long-
     term fiscal challenges facing the United States, including 
     the rising costs of entitlements, in a manner that is 
     fiscally responsible, equitable, and lasting, and that also 
     honors commitments made to beneficiaries, and that such 
     action should be bipartisan, bicameral, involve both 
     legislative and executive branch participants, as well as 
     public participation, and be conducted in a manner that 
     ensures full, fair, and timely Congressional consideration.

     SEC. 514. SENSE OF THE CONGRESS REGARDING WASTE, FRAUD, AND 
                   ABUSE.

       It is the sense of the Congress that--
       (1) all committees should examine programs within their 
     jurisdiction to identify wasteful and fraudulent spending;
       (2) title III of this resolution includes cap adjustments 
     to provide appropriations for agencies that control programs 
     that accounted for a significant share of improper payments 
     reported by Federal agencies: Social Security Administration 
     Continuing Disability Reviews, the Medicare/Medicaid Health 
     Care Fraud and Abuse Control Program, and Unemployment 
     Insurance Program Integrity;
       (3) title III also includes a cap adjustment for the 
     Internal Revenue Services for tax compliance efforts to close 
     the $345,000,000,000 tax gap;
       (4) the resolution's deficit-neutral reserve funds require 
     authorizing committees to cut lower priority and wasteful 
     spending to accommodate any new high-priority entitlement 
     benefits; and
       (5) title III of the resolution directs all committees to 
     review the performance of programs within their jurisdiction 
     and report recommendations annually to the appropriate 
     Committee on the Budget as part of the views and estimates 
     process required by section 301(d) of the Congressional 
     Budget Act.

     SEC. 515. SENSE OF THE CONGRESS REGARDING EXTENSION OF THE 
                   STATUTORY PAY-AS-YOU-GO RULE.

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

     SEC. 516. SENSE OF THE CONGRESS ON LONG-TERM BUDGETING.

       It is the sense of the 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. 517. SENSE OF THE CONGRESS REGARDING AFFORDABLE HEALTH 
                   COVERAGE.

       It is the sense of the Congress that--
       (1) nearly 47 million Americans, including nine million 
     children, lack health insurance;
       (2) people without health insurance are more likely to 
     experience problems getting medical care and to be 
     hospitalized for avoidable health problems;
       (3) most Americans receive health coverage through their 
     employers, and a major issue facing all employers is the 
     rising cost of health insurance;
       (4) small businesses, which have generated most of the new 
     jobs annually over the last decade, have an especially 
     difficult time affording health coverage, because of higher 
     administrative costs and fewer people over whom to spread the 
     risk of catastrophic costs;
       (5) 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; and
       (6) 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 circumstances 
     affecting employees 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, by expanding comparative effectiveness 
     research, and by promoting improvements in disease management 
     and disease prevention.

     SEC. 518. SENSE OF THE CONGRESS REGARDING PAY PARITY.

       It is the sense of the 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. 519. SENSE OF THE CONGRESS REGARDING SUBPRIME LENDING 
                   AND FORECLOSURES.

       It is the sense of the Congress that--
       (1) over the last six months, the Nation has experienced a 
     significant increase in the number of homeowners facing the 
     risk of foreclosure with estimates of as many as 2.8 million 
     subprime and other distressed borrowers facing the loss of 
     their homes over the next five years;

[[Page H4230]]

       (2) the rise in foreclosures not only has an immediate, 
     devastating impact on homeowners and their families, but it 
     also has ripple effects--
       (A) local communities experiencing high levels of 
     foreclosures experience deterioration as a result of the 
     large number of vacant foreclosed and abandoned homes;
       (B) rising foreclosure rates can accelerate drops in home 
     prices, affecting all homeowners; and
       (C) home mortgage default and foreclosure rates increase 
     risk for lenders, further restricting the availability of 
     credit, which can in turn slow economic growth; and
       (3) the rise in foreclosures is not only a crisis for 
     subprime borrowers, but a larger problem for communities as a 
     whole, and considering the multi-layered effects of 
     increasing foreclosures, the Congress should consider steps 
     to address this complex problem.

     SEC. 520. SENSE OF THE CONGRESS REGARDING THE NEED TO 
                   MAINTAIN AND BUILD UPON EFFORTS TO FIGHT 
                   HUNGER.

       It is the sense of the Congress that--
       (1) 35.5 million Americans (12.6 million of them children) 
     are food insecure--uncertain of having, or unable to acquire, 
     enough food, and that 11.1 million Americans are hungry 
     because of lack of food;
       (2) despite the critical contributions of the Department of 
     Agriculture nutrition programs (particularly the food stamp 
     program), which significantly reduced payment error rates 
     while providing help to partially mitigate the effects of 
     rising poverty and unemployment, significant need remains, 
     even among families that receive food stamps;
       (3) nearly 25 million people, including more than nine 
     million children and nearly three million seniors, sought 
     emergency food assistance from food pantries, soup kitchens, 
     shelters, and local charities last year;
       (4) additional resources are needed to ensure that 
     nutrition assistance keeps up with inflation and rising food 
     prices; and
       (5) Department of Agriculture programs that help us fight 
     hunger should be maintained and the Congress should continue 
     to seize opportunities to reach Americans in need and to 
     fight hunger.

     SEC. 521. SENSE OF THE CONGRESS REGARDING THE IMPORTANCE OF 
                   CHILD SUPPORT ENFORCEMENT.

       It is the sense of the 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. 522. SENSE OF THE CONGRESS ON THE INNOVATION AGENDA AND 
                   AMERICA COMPETES ACT.

       It is the sense of the Congress that--
       (1) the Congress should provide sufficient funding so that 
     our Nation may continue to be the world leader in education, 
     innovation and economic growth;
       (2) last year, Congress passed and the President signed the 
     America COMPETES Act, bipartisan legislation designed to 
     ensure that American students, teachers, businesses, and 
     workers are prepared to continue leading the world in 
     innovation, research, and technology well into the future;
       (3) this resolution supports the efforts authorized in the 
     America COMPETES Act, providing substantially increased 
     funding above the President's requested level for 2009, and 
     increased amounts after 2009 in Function 250 (General 
     Science, Space and Technology) and other functions;
       (4) additional increases for scientific research and 
     education are included in Function 270 (Energy), Function 300 
     (Environment and Natural Resources), Function 500 (Education, 
     Employment, Training and Social Services), and Function 550 
     (Health), all of which receive more funding than the 
     President's budget provides;
       (5) because America's greatest resource for innovation 
     resides within classrooms across the country, the increased 
     funding provided in this resolution will support initiatives 
     within the America COMPETES Act to educate tens of thousands 
     of new scientists, engineers, and mathematicians, and place 
     highly qualified teachers in math and science K-12 
     classrooms; and
       (6) because independent scientific research provides the 
     foundation for innovation and future technologies, this 
     resolution will keep 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.
       And the House agree to the same.

     John Spratt,
     Rosa L. 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. 70), setting forth the congressional budget for the 
     United States Government for fiscal year 2009 and including 
     the appropriate budgetary levels for fiscal years 2008 and 
     2010 through 2013, 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 resolving clause and inserted the House-
     passed concurrent resolution on the budget (H. Con. Res. 312) 
     as 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 House-passed 
     and Senate-passed budget resolutions and the conference 
     report is as follows:
     House-passed Resolution
       The House resolution 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).
     Senate-passed Resolution
       The Senate concurrent resolution includes all of the items 
     required under section 301(a) of the Congressional Budget 
     Act.
     Conference Agreement
       The conference agreement includes all of the items required 
     by section 301(a) of the Congressional Budget Act.

                     AGGREGATE AND FUNCTION LEVELS

       Pursuant to section 301(a)(4) of the Congressional 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 House concurrent resolution, 
     the Senate concurrent resolution, and conference agreement 
     for each major budget function, as well as revenue totals, 
     are discussed in the section after the numerical tables. A 
     summary of the overall budget policy is as follows:
       Total spending is $3.034 trillion in budget authority (BA) 
     and $3.066 trillion in outlays in 2009, and $16.155 trillion 
     in BA and $16.228 trillion in outlays over 2009-2013.
       Discretionary spending for 2009 totals $1.088 trillion in 
     BA and $1.183 trillion in outlays in 2009, and $5.328 
     trillion in BA and $5.719 trillion in outlays over 2009-2013. 
     Excluding funding for overseas deployments and other 
     activities, discretionary spending for 2009 totals $1.013 
     trillion in BA and $1.075 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 $1.945 trillion in BA and $1.883 
     trillion in outlays in 2009, and $10.827 trillion in BA and 
     $10.509 trillion in outlays over 2009-2013.
       Revenue totals $2.725 trillion in 2009, and $15.637 
     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 agreement uses the Congressional Budget 
     Office (CBO) March baseline, updated for legislation that has 
     passed the Congress since the baseline was developed.
       The conference agreement reduces the budget deficit from 
     $340.4 billion in 2009, to a surplus of $21.9 billion in 2012 
     and remains in surplus in 2013.
       The following section describes the conference agreement's 
     revenue levels and spending according to the budget's 
     functional categories.

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                                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.
     House-passed Resolution
       The House budget resolution matches the total level of 
     revenues under the CBO baseline over the 2008-2013 period, 
     with revenue losses in 2009 and an offsetting gain in 2010-
     2013, consistent with the resolution's reconciliation 
     instruction to the Ways and Means Committee regarding 
     revenue. For the unified budget, the House resolution calls 
     for a total of $2.7 trillion in revenues for 2009, and $16.0 
     trillion over five years. (The budget resolution provides 
     only the on-budget amounts, which are $2.0 trillion in 
     revenues for 2009, and $12.1 trillion over five years.)
       By following the baseline revenue total for 2008-2013, the 
     House resolution achieves current-law total revenue levels, 
     but does not assume maintaining current tax law. Thus, the 
     House-passed budget resolution accommodates reform of the 
     Alternative Minimum Tax (AMT) and extension of tax cuts 
     benefitting middle-income households (including, but not 
     limited to, 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, consistent with the House pay-as-you-go rule, 
     in a deficit-neutral manner over the 2008-2013 and 2008-2018 
     periods.
       The House resolution 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 resolution 
     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 tax incentives for energy efficiency and 
     renewable energy, and a tax credit for local bonds to support 
     the repair or construction of public schools.
     Senate-passed Resolution
       The Senate budget resolution includes $2.0 trillion in on-
     budget revenues for 2009, and $11.7 trillion over 2009-2013. 
     (The corresponding revenue figures on a unified basis are 
     $2.7 trillion for 2009 and $15.6 trillion over five years.)
       The revenue level in the Senate resolution is $407.5 
     billion below the levels in the CBO baseline over 2008-2013. 
     This provides for one year of relief from the AMT, protecting 
     more than 20 million taxpayers from being subject to the AMT 
     in 2008. It also 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 level accommodates a number of other 
     tax policies, such as property tax relief; relief to those 
     whose homes were damaged or destroyed by Hurricanes Katrina 
     and Rita; tax relief for America's troops and veterans; 
     enhancement of the refundable portion of the child tax 
     credit; and extension of the adoption and dependent care tax 
     credits. Finally, this total accommodates revenue provisions 
     that could be part of an overall economic stimulus package.
       The Senate resolution also includes the effects of a number 
     of other tax policies whose cost is offset over the period 
     covered by the resolution. For instance, the resolution 
     reflects tax relief to make college education more affordable 
     and reflects incentives to encourage the development of 
     renewable energy, promote more conservation and energy 
     efficiency, and reduce dependence on foreign energy supplies. 
     In a similar fashion, the resolution assumes that tax 
     provisions that have been routinely extended in the past will 
     be extended and that their cost will be offset.
       In addition, 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 
     policies designed to encourage the continued production in 
     the United States of advanced technologies, extend enhanced 
     charitable giving from individual retirement accounts, make 
     it easier for companies to use accumulated alternative 
     minimum tax and research and development credits, reduce the 
     cost of teacher out-of-pocket expenses for classroom 
     supplies, encourage highly qualified teachers to serve in 
     high-needs schools, extend existing energy tax incentives as 
     well as provide additional incentives for clean-burning wood 
     stoves, cellulosic ethanol production, plug-in hybrid 
     vehicles, and energy-efficient buildings, products, and power 
     plants. Deficit-neutral reserve funds in the resolution also 
     address AMT reform and reducing the income threshold for the 
     refundable portion of the child tax credit starting in 2009.
       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 
     $490 million to IRS enforcement activities.
     Conference Agreement
       The conference agreement includes $2.0 trillion in on-
     budget revenues for 2009, and $11.8 trillion over 2009-2013. 
     (The corresponding revenue figures on a unified basis are 
     $2.7 trillion for 2009 and $15.6 trillion over five years.) 
     The conference agreement provides immediate relief from the 
     AMT, with its cost fully offset. The agreement supports tax 
     relief to benefit the middle class--including extension of 
     the child tax credit, 10 percent bracket, and marriage 
     penalty relief--and provides for estate tax reform. In 
     addition, the agreement reflects the effects of tax policies 
     in other areas, such as energy and education tax incentives 
     and the extension of expiring and expired provisions, whose 
     costs are offset over the period covered by the resolution. 
     Further, 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 $340.570 
     billion below the levels under current law over 2008-2013. 
     Revenue legislation is subject to House and Senate pay-as-
     you-go rules. In addition, the House reserve fund adjustment 
     for revenue measures (section 220)--the House ``trigger'' 
     mechanism--creates a second procedural hurdle in the House 
     only, in addition to the pay-as-you-go 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.
     House-passed Resolution
       The House resolution reflects a total of $542.5 billion in 
     BA and $573.4 billion in outlays in 2009, and $2.8 trillion 
     in BA and outlays over five years. There is no higher 
     priority than the defense of our nation. The House resolution 
     accordingly provides robust funding for Function 050 
     (National Defense). The House resolution calls, however, for 
     a reallocation of resources to address the most severe 
     threats facing the nation, to emphasize readiness, to 
     guarantee first-rate health care for members of our armed 
     forces, and to improve the quality of life of our troops and 
     their families. The House resolution also calls for greater 
     accountability at the Department of Defense. It includes 
     assumptions on specific defense policy in Title V, section 
     502.
       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 resolution that non-proliferation 
     programs, such as the Cooperative Threat Reduction program, 
     be given greater priority and higher funding.
       As a result of our overseas deployments, military readiness 
     has suffered, especially the readiness of our National Guard 
     and Reserve. The Commission on National Guard and Reserve 
     concluded in its final report, issued on January 31, 2008, 
     that there are substantial shortcomings in the nation's 
     ability to respond during a national crisis. In view of this, 
     the House resolution calls for greater attention to 
     mitigating readiness shortfalls to ensure our military is 
     ready when called upon.
       The country owes a great debt of gratitude to those who 
     have sacrificed and to those who are currently sacrificing by 
     serving in the Armed Forces. To honor their service, the 
     country should not only support the troops when they are 
     called to duty, but it should also improve the quality of 
     life of the troops and their families, and ensure that the 
     resources are available when they are discharged from service 
     to provide them the excellent health care they deserve and 
     the assistance they need to make the transition to civilian 
     life. For that reason, the House resolution opposes TRICARE 
     fee increases

[[Page H4254]]

     proposed by the President and calls for a substantial 
     increase in funding for the veterans' health care system. The 
     House resolution provides funding to continue addressing 
     problems such as those identified at Walter Reed Army Medical 
     Center. The House resolution also calls for enhanced pay and 
     benefits to improve the quality of life of the troops and 
     their families, including emphasis on providing adequate 
     funding for programs like the Yellow Ribbon Reintegration 
     Program, which provides support and assistance to troops and 
     their families while they are deployed and when they return 
     from deployments to readjust to civilian life.
       The President's 2009 budget is noncompliant with section 
     1008, Public Law 109-364, the John Warner National Defense 
     Authorization Act for Fiscal Year 2007, by excluding a full 
     request for overseas military operations. The House 
     resolution reaffirms section 1008. It also calls on the 
     Administration to end the practice of including non-war 
     requirements in funding requests for overseas military 
     operations as a way to avoid making tradeoffs in the defense 
     budget. The Congressional Budget Office reported in September 
     2007 that 40 percent of supplemental funds requested for Army 
     ``reset'' (fixing and replacing equipment) was instead used 
     for upgrading the capability of weapons systems and procuring 
     new equipment to eliminate shortfalls, and in some cases, 
     shortfalls that were long-standing.
       It is the policy of the House resolution that missile 
     defense acquisition be funded at lower, but still adequate 
     levels and development of space-based interceptors as part of 
     the missile defense program should be de-emphasized. The 
     House resolution also points out the need to restrain 
     excessive cost and schedule growth in defense research, 
     development, and procurement programs. DoD has allowed the 
     cost of its major acquisition programs to grow at an 
     unsustainable rate. The Department's major acquisition 
     programs grew by more than $392 billion above their initial 
     projections from 2002 to 2007.
       The House resolution recognizes the need for DoD to root 
     out wasteful spending with far more diligence. Eighteen 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 what it spends in its annual 
     budgets. 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 seven years, the Government Accountability 
     Office (GAO) has performed numerous audits of DoD's financial 
     management, contracting, and business practices. GAO made 
     2,864 recommendations, of which 1,260 have yet to be 
     implemented. The House resolution assumes that enhancing 
     accounting practices at DoD and implementing many GAO 
     recommendations would yield substantial savings that could be 
     applied to other security needs, including those mentioned 
     above.
       The House resolution also encourages the committees with 
     jurisdiction over defense to conduct more oversight with the 
     objective of ferreting out wasteful practices, fraud, and 
     abuse. It encourages the committees to require DoD to report 
     to Congress on its progress in implementing GAO audit 
     recommendations and to report on the applicability of Cold 
     War era weapons to 21st century challenges. The House 
     resolution also directs GAO to report by the end of the 110th 
     Congress on DoD's progress in implementing its audit 
     recommendations.
       The House resolution also recognizes the need for DoD to do 
     a better job of reconciling its plans with its budget, 
     including the Navy's shipbuilding plan. Unrealistic 
     expectations of technology development and ship designs have 
     led to high unit costs and a plan that is not viable in terms 
     of providing the Navy with an adequate ship force, or the 
     shipbuilding industrial base with a sustainable level of 
     work. The House resolution therefore encourages more 
     congressional oversight to ensure the Administration puts 
     more emphasis on developing a viable shipbuilding plan to 
     maintain a naval ship force and a shipbuilding industrial 
     base that meets the challenges of the 21st century.
       In addition to emphasizing nuclear nonproliferation 
     programs at the Department of Energy, the House recognizes 
     the importance of the Department's Environmental Management 
     program and that nuclear cleanup activities are a high 
     priority.
       For mandatory programs, the House resolution matches the 
     President's request.
     Senate-passed Resolution
       The Senate resolution calls for a total of $612.5 billion 
     in BA and $645.4 billion in outlays for 2009, and $2.9 
     trillion in BA and $3.0 trillion in outlays over five years. 
     This includes full funding for the President's requests for 
     war costs in 2008 and 2009.
       Excluding requested war funds, the Senate resolution 
     provides $542.5 billion in BA for defense in 2009, an 
     increase of $26.2 billion in BA over the 2008 level adjusted 
     for inflation.
       The Senate resolution provides for a 3.4 percent pay raise 
     for military personnel, and again rejects the President's 
     proposals for new TRICARE enrollment fees and deductibles for 
     military retirees under the age of 65.
       The Senate resolution also assumes no less than $5.8 
     billion in funding for the Defense Environmental Cleanup 
     account, an increase of $500 million compared to the 
     President's request. The environmental management program is 
     charged with efficiently cleaning up the environmental damage 
     resulting from 50 years of nuclear weapons production. The 
     President's budget underfunded cleanup efforts at several 
     major sites addressed under this program including Hanford, 
     Idaho Falls, Oak Ridge, and Savannah River. This increase 
     brings total environmental management funding for nuclear 
     site cleanup (including amounts in other budget functions) to 
     $6.4 billion.
       The National Guard has a long history of outstanding 
     service to our nation, and our nation's reliance on the Guard 
     has only increased since September 11, 2001. The Senate 
     resolution assumes that the Department of Defense will 
     provide at least $49.1 billion to recruit, train, equip, and 
     sustain National Guard and Reserve units. The Appropriations 
     Committee is encouraged to identify additional resources 
     within the defense budget to address critical needs for 
     National Guard equipment left unfunded in the President's 
     budget.
       Some servicemembers injured in Iraq and Afghanistan have 
     been inappropriately given ``personality disorder'' 
     discharges that cost them access to various veterans' 
     benefits and care. The defense funding level in the Senate 
     resolution includes an amendment addressing the backlog at 
     the military services' respective Boards for the 
     Correction of Military Records to allow these 
     servicemembers to have their discharges promptly reviewed 
     and, if appropriate, upgraded to ``honorable'' status.
       The Administration continues to seek war funding as an 
     emergency, five years into the war in Iraq. The Armed 
     Services and Foreign Relations Committees have indicated that 
     they believe these costs should no longer be handled on an 
     emergency basis. The Senate resolution includes a $70 billion 
     cap adjustment provision that allows the Chairman of the 
     Budget Committee to revise the discretionary spending cap for 
     non-emergency appropriations related to the wars in Iraq and 
     Afghanistan. The Senate resolution's levels of deficits and 
     debt assume that this cap adjustment is fully utilized.
       The existence of this cap adjustment 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.
       The Senate resolution also includes a program integrity cap 
     adjustment dedicated to reducing waste in defense 
     contracting. The cap adjustment allows the Chairman of the 
     Budget Committee to increase the discretionary spending cap 
     by up to $100 million to accommodate legislation 
     appropriating funding for the Department of Defense for 
     additional activities to reduce waste, fraud, abuse and 
     overpayments in defense contracting; achieve the legal 
     requirement for the Pentagon to submit auditable financial 
     statements; reduce waste by improving accounting for and 
     ordering of spare parts; or subject contracts performed 
     outside the United States to the same ethical standards as 
     those performed domestically. When billions of dollars are 
     wasted due to poor contracting practices, ordering of 
     unneeded spare parts, or other waste, fraud and abuse, it is 
     our troops that suffer.
     Conference Agreement
       The conference agreement for Function 050 includes a total 
     of $542.5 billion in BA and $573.4 billion in outlays in 
     2009, and $2.8 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. 
     Consistent with both the House- and Senate-passed 
     resolutions, the conference agreement affirms the need for 
     increased emphasis on programs to provide support to troops 
     and their families while troops are deployed and to assist 
     with reintegration when troops return from deployments. The 
     conference agreement also reaffirms the importance of 
     adequate funding for atomic energy defense environmental 
     cleanup activities.
       For mandatory programs, the conference agreement is 
     consistent with current law.
       The conference agreement reflects the cost of overseas 
     deployments and other activities in Function 970, as in the 
     House-passed resolution.
       The conference agreement also includes two deficit-neutral 
     reserve funds (section 202 and section 203 in the House, and 
     section 225 and section 226 in the Senate) to accommodate 
     initiatives related to meeting our commitments to the 
     nation's military personnel and veterans, and their 
     survivors.
       The conference agreement includes a statement of policy on 
     defense issues (section 402) that outlines key priorities to 
     be funded within the defense allocation and the need for the 
     Department of Defense to do a better job of reining in 
     wasteful spending, particularly with regard to contracting 
     practices and continuing funding of Cold War era weapons 
     systems that may not be as effective against today's threats. 
     Consistent with the Senate-passed resolution, the statement 
     of policy also calls for expediting review of cases involving 
     former servicemembers suffering from post traumatic stress 
     disorder or a traumatic brain injury and whose discharge from 
     service was handled erroneously, resulting in a loss of 
     benefits or care.

[[Page H4255]]

                  INTERNATIONAL AFFAIRS: FUNCTION 150

     Function Summary
       Function 150 covers funding for U.S. international 
     activities, including: operating and securing U.S. embassies 
     and consulates throughout the world; providing military 
     assistance to allies; assisting refugees; aiding developing 
     nations; dispensing economic assistance to fledgling 
     democracies; promoting U.S. exports abroad; making U.S. 
     payments to international organizations; and contributing to 
     international peacekeeping efforts. The major agencies in 
     this function include the Departments of State, Agriculture, 
     and the Treasury; the U.S. Agency for International 
     Development; and the Millennium Challenge Corporation.
     House-passed Resolution
       The House resolution calls for a total of $37.1 billion in 
     BA and $35.7 billion in outlays for 2009, and for $196.0 
     billion in BA and $186.8 billion in outlays over five years. 
     The function's negative mandatory budget authority and outlay 
     levels reflect receipts of the foreign military sales trust 
     fund, the repayment of loans and credits by foreign nations, 
     and the liquidation of economic assistance loans, foreign 
     military financing loans, Export-Import Bank loans, and 
     housing and other credit guaranty programs.
       The House resolution's discretionary budget authority for 
     2009 is $4.0 billion (11.6 percent) above the 2008 level 
     excluding emergencies and $3.3 billion (9.6 percent) more 
     than the amount needed to maintain purchasing power at the 
     2008 level. The House resolution matches the President's 
     Function 150 request for HIV/AIDS relief. The House 
     resolution also provides funding for the Department of State 
     to hire a significant number of new staff to strengthen the 
     United States' diplomacy and national security.
       Consistent with the President's budget, the House 
     resolution provides $2.6 billion for Foreign Military 
     Financing (FMF) for Israel. The United States signed a new 
     agreement with Israel in 2007 to provide $30 billion in FMF 
     over ten years.
       The House resolution provides additional funding above the 
     President's requested level for 2009 for the McGovern-Dole 
     International Food for Education and Child Nutrition Program. 
     This additional funding will be used to maintain and expand 
     the number of children, especially girls, who benefit from 
     this program as food and transportation costs rise.
       The House notes the importance of robust funding for child 
     survival and health programs, development assistance, and the 
     United States' contributions to international organizations 
     and peacekeeping.
       The House notes the large amount of funding for the 
     Millennium Challenge Corporation (MCC) that remains 
     unobligated or unspent. MCC has received about $7.5 billion 
     in total appropriations from 2004 through 2008.
       The House recognizes the humanitarian problem of millions 
     of Iraqis who are refugees in neighboring countries or are 
     internally displaced in Iraq.
       The House notes the strong support for H.R. 1595, the Guam 
     World War II Loyalty Recognition Act, which the House 
     approved on May 8, 2007. The bill authorizes compensation to 
     the Guamanian victims of the Imperial Japanese military 
     occupation during World War II.
     Senate-passed Resolution
       The Senate resolution calls for a total of $38.6 billion in 
     BA and $39.5 billion in outlays in 2009, and $184.5 billion 
     in BA and $183.4 billion in outlays over five years, 
     excluding emergencies. The amount provided in 2009 is $2 
     million less than the President's request.
       Overall, the Senate resolution assumes a U.S. contribution 
     to the Global Fund for HIV/AIDS, Tuberculosis and Malaria of 
     $1.35 billion. In addition, the Senate resolution assumes 
     additional funds will be provided to respond to international 
     appeals for Iraqi refugee assistance, and for victims of 
     humanitarian disasters in Africa and the Middle East.
     Conference Agreement
       The conference agreement provides a total of $37.2 billion 
     in BA and $35.7 billion in outlays for 2009, and $190.2 
     billion in BA and $182.6 billion in outlays over five years, 
     excluding emergencies. The conference agreement provides 
     $38.3 billion in BA for 2009 for discretionary programs, 
     which is $3.3 billion (9.6 percent) more than the amount 
     needed to maintain purchasing power at the 2008 level, 
     excluding emergencies. (The total BA and outlay levels are 
     lower than the discretionary BA and outlay levels because 
     this function has negative mandatory BA and outlay levels, 
     reflecting various U.S. receipts from other nations.)

          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.
     House-passed Resolution
       The House resolution calls for a total of $29.9 billion in 
     BA and $28.7 billion in outlays for 2009, and for $162.7 
     billion in BA and $159.5 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 and the America COMPETES Act: 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.
     Senate-passed Resolution
       The Senate resolution calls for a total of $30.5 billion in 
     BA and $29.0 billion in outlays for 2009, and $154.9 billion 
     in BA and $153.9 billion in outlays over five years.
       The Senate resolution assumes $18.7 billion for NASA, $1 
     billion above the President's 2009 request. This level of 
     funding reflects the ongoing need to reimburse NASA for the 
     catastrophic loss of Space Shuttle Columbia as well as the 
     costs of investigating the Columbia tragedy. 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, which is scheduled to be updated 
     and renewed during the current session of Congress. The 
     Senate 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 launching the 
     Crew Exploration Vehicle (CEV) as close to 2010 as possible. 
     NASA currently projects that the CEV will not be operational 
     before 2015, thus creating a five-year gap in U.S. human 
     space flight capability. The Senate resolution recognizes the 
     strategic importance of uninterrupted access to space and 
     supports efforts to reduce this five-year gap in U.S. human 
     space flight.
       In addition, the Senate resolution fully funds the 
     President's 2009 request for programs authorized in the 
     America COMPETES Act. These programs help to ensure that the 
     U.S. maintains its technological innovation advantage in the 
     global economy.
     Conference Agreement
       The conference agreement includes $30.6 billion in BA and 
     $29.1 billion in outlays in 2009, and $164.8 billion in BA 
     and $161.5 billion in outlays over five years. The conference 
     agreement provides significant increases in this function in 
     every year within the budget window for competitiveness 
     programs that support the goals of the COMPETES Act and other 
     Innovation programs, with additional resources provided in 
     other functions. In addition, for NASA, the conference 
     agreement recognizes the contributions of our nation's space 
     program and the strategic importance of uninterrupted access 
     to space. The conference agreement provides $18.7 billion for 
     NASA, $1 billion above the President's budget in 2009, and 
     significant increases in the outyears.

                          ENERGY: FUNCTION 270

     Function Summary
       Function 270 covers energy-related programs including 
     research and development, environmental clean-up, and rural 
     utility loans. Most of these programs are within the 
     Department of Energy (DOE). This function covers about 20 
     percent of appropriated funding for DOE but does not include 
     DOE's national security activities, which are in Function 050 
     (National Defense), or its basic research and science 
     activities, which are in Function 250 (General Science, Space 
     and Technology). This function also includes the Agriculture 
     Department's Rural Utilities Service, the Tennessee Valley 
     Authority, the Federal Energy Regulatory Commission, and the 
     Nuclear Regulatory Commission.
     House-passed Resolution
       The House resolution calls for a total of $4.7 billion in 
     BA and $2.2 billion in outlays for 2009, and for $23.7 
     billion in BA and $16.2 billion in outlays over five years. 
     The House resolution provides $1.1 billion in appropriated 
     funding above the 2008 level and $1.2 billion above the 
     President's budget for 2009, funding that could be used for 
     energy efficiency and renewable energy programs. The House 
     resolution maintains the Weatherization Assistance Program, 
     which the President's budget unwisely terminates.
       The House resolution also invests in new initiatives for 
     renewable energy and energy efficiency, emerging energy and 
     vehicle technologies, carbon capture and sequestration, and 
     worker training for green collar jobs.
     Senate-passed Resolution
       The Senate resolution calls for a total of $7.0 billion in 
     BA and $2.8 billion in outlays for 2009, and $34.6 billion in 
     BA and $25.0 billion in outlays over five years. This funding 
     level would provide a significant commitment of resources to 
     invest in clean energy, create green collar jobs in our 
     communities, and reduce our dependence on imported energy. 
     The resolution assumes $8.45 billion in 2009 energy 
     discretionary spending. This would represent the highest 
     discretionary spending level for the energy function since 
     1981.
       The Senate resolution includes $2.7 billion to invest in 
     green jobs in our nation's communities (including $100 
     million in Function 500). This funding level could 
     accommodate

[[Page H4256]]

     significant increases in a variety of loan guarantee and 
     grant programs which would fund energy efficiency and 
     conservation activities, the production of fuel efficient 
     vehicles, worker training programs, and biofuels production. 
     These programs were authorized in the Energy Independence and 
     Security Act of 2007 and not adequately funded in the 
     President's budget. Funding these programs will move our 
     nation towards energy independence, cleaner energy, and 
     energy efficiency while also developing new industries and 
     creating green jobs. The resolution also assumes funding 
     increases for similar programs authorized in the Energy 
     Policy Act of 2005.
       The Senate resolution assumes approximately $2 billion for 
     DOE's Energy Efficiency and Renewable Energy program. This 
     funding level is $738 million above the President's request 
     and would accommodate significant increases for programs such 
     as wind, solar, geothermal, biomass and biorefinery R&D, 
     hydrogen, and vehicle/building technologies. This funding 
     level would also provide $450 million for the Weatherization 
     Assistance Program, a program which was zeroed out in the 
     President's budget. The resolution significantly increases 
     funding for the Energy Efficiency and Conservation Block 
     Grant Program and Energy Grants for Universities and 
     Institutions.
       The Senate resolution includes significant increases for 
     fossil energy R&D. This funding would provide additional 
     resources for programs such as carbon sequestration and clean 
     coal research. The resolution also significantly increases 
     funding for DOE's Office of Electricity Delivery and Energy 
     Reliability.
       The Senate resolution supports consideration by the Budget 
     Committees of the reclassification of receipts for the annual 
     operating expenses of Southeastern, Southwestern, and Western 
     Area Power Administrations. By reclassifying the receipts, 
     power rates will become more closely linked to the annual 
     appropriations they fund. This direct link will promote long-
     term planning and improve the overall efficiency and 
     reliability of the federal power program.
       The Senate resolution includes a deficit-neutral reserve 
     fund for legislation that would decrease greenhouse gas 
     emissions, reduce our nation's dependence on imported energy, 
     produce green jobs, or preserve or protect national parks, 
     oceans, or coastal areas. The legislation may include tax 
     legislation. The resolution also includes deficit-neutral 
     reserve funds for legislation that would improve energy 
     efficiency and production or provide for investments in 
     energy infrastructure.
     Conference Agreement
       The conference agreement provides a total of $6.5 billion 
     in BA and $2.8 billion in outlays for 2009, and $32.6 billion 
     in BA and $22.9 billion in outlays over five years. The 
     conference agreement provides $7.7 billion for discretionary 
     programs in this function. This amount is $2.8 billion more 
     than the President's proposed funding level for 2009. (The 
     total BA and outlay levels are lower than the discretionary 
     BA and outlay levels because this function has negative 
     mandatory BA and outlay levels, reflecting that the U.S. 
     government collects more money than it spends marketing 
     federally produced power and collects fees from commercial 
     nuclear reactors.)
       The conference agreement includes $2.0 billion to create 
     green collar jobs in our nation's communities. The conference 
     agreement includes a significant commitment of resources to 
     invest in cleaner energy, promote renewable energy and energy 
     efficiency, and reduce our nation's dependence on imported 
     energy. It also provides increases for the Weatherization 
     Assistance Program and emerging energy technologies such as 
     carbon capture and sequestration.
       The conference agreement includes deficit-neutral reserve 
     funds 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).
     House-passed Resolution
       The House resolution calls for a total of $38.7 billion in 
     BA and $35.6 billion in outlays for 2009, and for $179.2 
     billion in BA and $182.2 billion in outlays over five years. 
     The House resolution rejects the President's deep and 
     misguided cuts to priority programs, such as the Land and 
     Water Conservation Fund, the Fish and Wildlife Service's 
     wildlife refuge system, the EPA's Clean Water State Revolving 
     Fund and other 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 House resolution accommodates the 
     President's emergency Army Corps spending for efforts related 
     to Hurricane Katrina rebuilding. Additionally, the House 
     resolution recognizes that in recent years, fire suppression 
     costs have overwhelmed the Forest Service's budget, and that 
     Congress should work to identify solutions to this problem 
     and to address the impact of increasing fire suppression 
     costs.
       The House resolution includes deficit-neutral reserve funds 
     for Secure Rural Schools and Payments in Lieu of Taxes, San 
     Joaquin River Restoration and Navajo Nation Water Rights 
     Settlements, and the establishment of the National Park 
     Centennial Fund. Additional funding addressing environmental 
     quality is accommodated in the House resolution's deficit-
     neutral renewable energy and energy efficiency reserve fund.
     Senate-passed Resolution
       The Senate resolution calls for a total of $39.8 billion in 
     BA and $36.3 billion in outlays for 2009, and $182.9 billion 
     in BA and $185.7 billion in outlays over five years. The 
     Senate resolution includes approximately $7.9 billion for the 
     EPA. This funding level will accommodate significant 
     increases for programs such as Superfund and EPA's programs 
     to support clean and safe drinking water. The resolution 
     rejects the President's proposal to cut a variety of 
     environmental protection programs. The resolution also 
     rejects the President's cuts to a variety of discretionary 
     programs which fund climate change research.
       The Senate resolution provides significant increases for 
     the Army Corps of Engineers and the Bureau of Reclamation and 
     includes a deficit-neutral reserve fund to accommodate 
     legislation that provides for investments in water 
     infrastructure.
       The Senate resolution includes $5.8 billion in 2009 
     emergency funding for the Corps of Engineers to continue its 
     Katrina-related recovery work in Louisiana. The Senate 
     resolution also includes increases sufficient to fully fund 
     ongoing Everglades Restoration Activities at the Army Corps 
     of Engineers and the Department of the Interior. These 
     additional funds are provided to commence construction of the 
     Indian River Lagoon which received only planning funding in 
     the President's request. Additionally, these funds will 
     provide increases to Modified Water Deliveries, the C-111 
     canal, and the Kissimmee River Restoration, all critical 
     components of Everglades Restoration.
       The Senate resolution rejects the President's proposal to 
     cut crucial Great Lakes funding. The resolution recognizes 
     the importance of the Great Lakes, as they make up 90 percent 
     of the United States surface fresh water and serve as a 
     source of drinking water for over 35 million people. The 
     Senate resolution also recognizes that the approximately 
     5,000 miles of U.S. shoreline along the Great Lakes is 
     greater than that of either the Eastern or Western seaboard. 
     Unfortunately, the Great Lakes continue to face unique and 
     challenging problems such as toxic sediment remediation, 
     invasive species, non-point source pollution, and habitat 
     loss. The Senate resolution includes $175 million for Great 
     Lakes programs including the Great Lakes Legacy Act, the 
     Great Lakes Fish and Wildlife Restoration Act, Great Lakes 
     Fishery and Ecosystem Restoration, Remedial Action Plan (RAP) 
     Assistance, Great Lakes Environmental Research Lab and the 
     Great Lakes Basin Program.
       The Senate resolution includes a reserve fund to invest in 
     clean energy, preserve the environment, and provide for 
     certain settlements. The reserve fund would accommodate 
     legislation that would decrease greenhouse gas emissions, 
     reduce our Nation's dependence on imported energy, produce 
     green jobs, or preserve or protect national parks, oceans, or 
     coastal areas. It would also accommodate legislation that 
     would fulfill the purposes of the San Joaquin River 
     Restoration Settlement Act or implement a Navajo Nation water 
     rights settlement and other provisions authorized by the 
     Northwestern New Mexico Rural Water Projects Act.
       The Senate resolution rejects the President's cuts to 
     numerous programs at the Department of the Interior and the 
     Forest Service. The Senate resolution reflects concerns that, 
     in recent years, the President's budget has significantly 
     underestimated fire suppression costs. The Senate resolution 
     also responds to concerns that increasing fire suppression 
     costs are having a negative impact on funding levels for 
     other discretionary programs at agencies such as the Forest 
     Service. The funding levels in the resolution assume that if 
     the severity of the fire season requires additional funding, 
     wildland fire suppression activities will be funded for 2009 
     at no less than $500 million above the ten-year average.
       The Senate resolution does not assume savings from 
     proposals to permit oil and gas leasing in the Arctic 
     National Wildlife Refuge. The Senate resolution also does not 
     assume any savings from the President's proposal to sell 
     federal lands. The Senate resolution includes a deficit-
     neutral reserve fund that would accommodate legislation that 
     terminates deductions from mineral revenue payments to 
     states.
       The Senate resolution 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 Senate resolution recognizes the 
     importance of the Bureau of Reclamation rural water program 
     to support ongoing Municipal, Rural, and Industrial

[[Page H4257]]

     (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, Mni Wiconi, Lewis and Clark, Perkins County, 
     Fort Peck Reservation/Dry Prairie, and Rocky Boy's/North 
     Central rural water system projects. The Senate supports 
     funding these vital rural water development projects at a 
     level that is as close to $306 million as possible.
       The Senate resolution includes increases for the United 
     States Geological Survey and Endangered Species Act 
     assistance.
     Conference Agreement
       The conference agreement includes a total of $40.5 billion 
     in BA and $36.9 billion in outlays for 2009, and $187.5 
     billion in BA and $189.5 billion in outlays over five years.
       The conference agreement includes significant increases for 
     natural resources and environment programs, including a 
     variety of programs at the EPA. The agreement provides 
     additional resources for agencies such as the Army Corps of 
     Engineers and the Bureau of Reclamation to invest in national 
     water infrastructure priorities. It also increases funding 
     for a number of other programs throughout the Department of 
     the Interior and the Forest Service. 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 2009 at a level 
     that is above the ten-year average.

                       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.
     House-passed Resolution
       The House resolution calls for a total of $21.5 billion in 
     BA and $21.3 billion in outlays for 2009, and for $110.0 
     billion in BA and $106.1 billion in outlays over five years. 
     The budget resolution provides greater funds than the 
     President to ensure sufficient resources to bolster commodity 
     support, agricultural research, and animal and plant 
     inspection programs. The House resolution also assumes 
     sufficient resources for 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.
     Senate-passed Resolution
       The Senate resolution reflects a total of $21.4 billion in 
     BA and $21.1 billion in outlays for 2009, and $108.9 billion 
     in BA and $105.0 billion in outlays over five years. With the 
     2002 Farm Bill expiring, 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 2008 through 2013 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.
     Conference Agreement
       The conference agreement calls for a total of $22.6 billion 
     in BA and $22.3 billion in outlays for 2009, and for $109.9 
     billion in BA and $103.6 billion in outlays over five years. 
     For discretionary spending, the agreement matches CBO's 
     baseline estimate in 2009. For mandatory spending, the 
     agreement incorporates the effects of the recently passed 
     Farm Bill in this and several other functions where its 
     effects appear. In addition, in the event further action is 
     required by Congress, the conference agreement includes a 
     Senate-only deficit-neutral reserve fund (section 221(g)(1)) 
     for the Farm Bill and related changes.

               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.
     House-passed Resolution
       For the unified budget, the House resolution calls for a 
     total of $10.8 billion in BA and $5.0 billion in outlays for 
     2009, and for $53.1 billion in BA and $16.9 billion in 
     outlays over five years. (The budget resolution provides only 
     the on-budget amounts, which are $9.6 billion in BA and $3.7 
     billion in outlays for 2009, and $51.3 billion in BA and 
     $15.1 billion in outlays over five years.) The discretionary 
     function total includes significantly increased funding for 
     the Bureau of the Census, reflecting continued preparation 
     for the 2010 census, and continues to support agencies such 
     as the National Institute of Standards and Technology. For 
     2009, and over the following four years, funding in Function 
     370 is above the level in the President's budget.
     Senate-passed Resolution
       The Senate resolution calls for a total of $10.6 billion in 
     unified BA and $5.0 billion in unified outlays for 2009, and 
     $46.3 billion in unified BA and $10.6 billion in unified 
     outlays over five years. (The corresponding on-budget figures 
     are $9.4 billion in BA and $3.8 billion in outlays for 2009, 
     and $44.5 billion in BA over five years and $8.8 billion in 
     outlays over five years.) The Senate resolution rejects the 
     President's proposal to cut assistance to America's small 
     businesses. The President proposes to eliminate the 
     Manufacturing Extension Program, which helps small businesses 
     adopt advanced manufacturing technologies. The Senate 
     resolution restores funding to this vital program to the 
     level authorized in the America COMPETES Act. The Senate 
     resolution also provides robust resources for the Small 
     Business Administration and the Census Bureau.
     Conference Agreement
       For the unified budget, the conference agreement calls for 
     a total of $10.8 billion in BA and $5.0 billion in outlays 
     for 2009, and for $53.1 billion in BA and $16.9 billion in 
     outlays over five years. (The conference agreement provides 
     only the on-budget amounts, which are $9.6 billion in BA and 
     $3.7 billion in outlays for 2009, and $51.3 billion in BA and 
     $15.1 billion in outlays over five years.) The discretionary 
     function total includes significantly increased funding for 
     the Bureau of the Census, reflecting continued preparation 
     for the 2010 census, and continues to support programs such 
     as the Manufacturing Extension Program and the Technology 
     Innovation Program. For 2009, and over the following four 
     years, funding in Function 370 is above the level in the 
     President's budget.

                      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.
     House-passed Resolution
       The House resolution calls for a total of $73.4 billion in 
     BA and $80.4 billion in outlays for 2009, and for $389.4 
     billion in BA and $428.9 billion in outlays over five years. 
     This resolution recognizes the importance of investing in 
     infrastructure systems on which our Nation depends. Our 
     society depends on transportation systems to integrate the 
     economies of our communities. However, those systems are 
     stressed from growing congestion and a backlog of repair 
     needs. It is imperative that, in the last year of the current 
     surface transportation authorization, the budget place these 
     systems in a position to address the challenges of the 21st 
     century. To that end, the House resolution fully funds the 
     highway, transit, and highway safety programs at the levels 
     originally authorized in the Safe, Accountable, Flexible, 
     Efficient Transportation Equity Act: A Legacy for Users 
     (SAFETEA-LU). Specifically, considering the country's 
     infrastructure challenges, the House resolution does not 
     accept the President's estimate of revenue aligned budget 
     authority (RABA), or the further cuts in highway and transit 
     funding included in the President's 2009 budget. Rather, the 
     House resolution continues to invest in infrastructure, 
     laying the groundwork for a reauthorization of these programs 
     in 2010.
       The House resolution increases funding for Amtrak and 
     provides additional funding for grants to airports, in 
     anticipation of a new aviation authorization.
     Senate-passed Resolution
       The Senate resolution calls for a total of $75.1 billion in 
     BA and $83.3 billion in outlays for 2009, and $392.5 billion 
     in BA and $434.6 billion in outlays over five years. The 
     Senate resolution rejects the President's cuts to 
     transportation programs and fully funds the highway, transit, 
     and highway safety programs authorized in SAFETEA-LU for 
     2009.

[[Page H4258]]

     The Senate resolution also provides an additional $7 billion 
     for ``ready-to-go'' infrastructure projects. Additionally, 
     the Senate resolution provides $1.8 billion in BA for Amtrak, 
     a funding level that is $1 billion above the President's 
     request. 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.
     Conference Agreement
       The conference agreement calls for a total of $74.7 billion 
     in BA and $80.8 billion in outlays for 2009, and for $392.0 
     billion in BA and $430.7 billion in outlays over five years. 
     This agreement recognizes the importance of investing in 
     infrastructure systems on which our Nation depends. Our 
     society depends on transportation systems to integrate the 
     economies of our communities. However, those systems are 
     stressed from growing congestion and a backlog of repair 
     needs. The conference agreement fully funds the highway, 
     transit, and highway safety programs at the levels originally 
     authorized in SAFETEA-LU. Specifically, considering the 
     country's infrastructure challenges, the agreement does not 
     accept the President's estimate of RABA, or the further cuts 
     in highway and transit funding included in the President's 
     2009 budget. Rather, the agreement continues to invest in 
     infrastructure, laying the groundwork for a reauthorization 
     of these programs in 2010.
       The conference agreement provides $1.8 billion in BA for 
     Amtrak and provides additional funding for grants to 
     airports, in anticipation of a new aviation authorization.

            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, Department of Agriculture rural development programs, 
     the Bureau of Indian Affairs (BIA), the Federal Emergency 
     Management Agency (FEMA) (including homeland security 
     grants), and other disaster mitigation and community 
     development-related programs. It also provides mandatory 
     funding for the federal flood insurance program.
     House-passed Resolution
       The House resolution calls for a total of $14.6 billion in 
     BA and $24.3 billion in outlays for 2009, and for $75.7 
     billion in BA and $95.3 billion in outlays over five years. 
     The budget resolution provides substantially more than the 
     President's 2009 discretionary funding level for Function 
     450, rejecting the President's deep cuts to the Community 
     Development Block Grant program, first responder grants, and 
     rural development.
     Senate-passed Resolution
       The Senate resolution calls for a total of $15.2 billion in 
     BA and $24.5 billion in outlays for 2009, and $77.7 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 grant programs, including first responder 
     grants. In addition, the Senate resolution includes increases 
     in funding for interoperable communications equipment grants, 
     FEMA operations and management, and BIA tribal justice 
     programs.
     Conference Agreement
       The conference agreement includes a total of $15.2 billion 
     in BA and $24.4 billion in outlays for 2009, and $78.0 
     billion in BA and $97.1 billion in outlays over five years. 
     The conference agreement rejects the President's deep cuts to 
     community and rural development programs, including the 
     Community Development Block Grant, and to several Department 
     of Homeland Security grant programs, including first 
     responder grants. The agreement accommodates higher funding 
     for programs such as interoperable communications equipment 
     grants, FEMA operations and management, a new Department of 
     Homeland Security headquarters, and BIA tribal justice 
     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 arts 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.
     House-passed Resolution
       The House budget resolution calls for a total of $95.2 
     billion in BA and $90.9 billion in outlays for 2009, and for 
     $513.0 billion in BA and $500.3 billion in outlays over five 
     years. The House resolution specifically rejects the 
     President's cuts to education funding, including his plan to 
     eliminate many education programs, including all vocational 
     education programs. The House resolution also rejects the 
     President's steep cuts to job training and social services 
     programs--programs needed now more than ever when the economy 
     is slowing and the cost of living is rising.
       In contrast to the President's funding cuts, the House 
     budget resolution makes a down payment toward addressing 
     long-standing needs in education, training, employment, and 
     social services. To that end, the House resolution provides 
     an appropriated program level for Function 500 that is $7.1 
     billion above the 2009 level in the President's budget.
       The House resolution's increased funding could be used to 
     support vital assistance to help children learn and succeed. 
     Increased funding could support key programs such as Head 
     Start, Impact Aid, and the Individuals with Disabilities 
     Education Act. It also could support the No Child Left Behind 
     Act programs to ensure that children can read and achieve at 
     grade level, including programs such as Title I, school 
     improvement programs, teacher quality improvement, and 
     education technology state grants. Finally, the House 
     resolution's funding increase for education can help make 
     college more affordable and accessible by raising the maximum 
     Pell grant, maintaining Supplemental Educational Opportunity 
     Grants and Perkins Loans, and broadening access to 
     Historically Black Colleges and Universities as well as 
     Hispanic-serving institutions and other minority-serving 
     institutions, which continue to make important contributions 
     towards increasing the percentage of minority students 
     gaining a college degree.
       Increased funding could be used to enhance funding for the 
     Workforce Investment Act programs, which provide important 
     job training and assistance. It could also support training 
     for green collar jobs in renewable energy and energy 
     efficiency fields. Other aspects of the Democratic 
     leadership's innovation agenda could also be supported, 
     including math and science education, development of basic 
     and applied research, as well as demonstrations of effective 
     approaches to innovative learning such as those in H.R. 3631, 
     the Revolutionizing Education Through Digital Investment Act 
     of 2007.
       The House resolution rejects the President's proposed cuts 
     to the Corporation for Public Broadcasting, and provides a 
     funding level that could be used to support an increase. The 
     House continues to support two-year advance funding for the 
     Corporation.
       The House resolution also contains a reserve fund to 
     accommodate legislation that makes college more affordable, 
     consistent with the House pay-as-you-go rule.
     Senate-passed Resolution
       The Senate resolution calls for a total of $94.7 billion in 
     BA and $91.3 billion in outlays for 2009, and $515.0 billion 
     in BA and $502.2 billion in outlays over five years.
       The Senate-passed budget resolution recognizes that strong 
     education and training programs at all levels are critical 
     for building a highly skilled workforce that can compete in 
     the global marketplace. It makes this effort a high priority 
     by providing an increase for discretionary education and 
     training program-level funding of $9.3 billion above the 
     President's request, or $6 billion above 2009 baseline 
     levels.
       The Senate-passed resolution rejects the President's 
     proposed cuts in education, training and social services, 
     including his proposal to eliminate programs and slash 
     resources for the Corporation for Public Broadcasting. It 
     assumes that additional funding will be invested in critical 
     areas from birth through post-secondary education, including 
     Head Start; key programs authorized by the No Child Left 
     Behind Act, especially Title I; the Individuals with 
     Disabilities Education Act (IDEA); Pell Grants; and job 
     training. The increased investments will:
        ensure that more preschool children will be ready 
     for school;
        help grade schools, middle schools, and high 
     schools close achievement gaps, increase graduation rates, 
     and reduce the need for remedial education;
        ensure that all schools can attract, train, and 
     retain high-quality teachers and reduce class sizes;
        keep our commitment to educate students with 
     disabilities;
        expand access to higher education by making 
     college more affordable;
        ensure that employers have increasingly well-
     educated employees that can compete in the global 
     marketplace; and
        expand job training opportunities to help workers 
     respond to shifts in the economic landscape, including 
     training for green jobs.
       With regard to the Department of Education, the Senate 
     resolution increases overall program-level funding by $5.7 
     billion above the President's requested level. In contrast, 
     the President cuts Department of Education funding by $612 
     million in 2009, or one percent, below the 2008 inflation-
     adjusted level. To help schools meet the requirements of the 
     No Child Left Behind Act and IDEA, the Senate resolution 
     provides the largest increase for elementary and secondary 
     education programs since 2002. In addition, the Senate 
     resolution assumes an increase in the maximum Pell grant 
     award, and fully funds the Pell shortfall.
       The Senate adopted amendments to increase funding for the 
     Teacher Incentive Fund, adult literacy and civics programs, 
     and programs under the Older Americans

[[Page H4259]]

     Act, including the Lifespan Respite Care Act at the 
     Administration on Aging.
       The Senate resolution provides deficit-neutral reserve 
     funds to facilitate enactment of legislation to improve 
     college access and affordability, facilitate modernization of 
     school facilities through renovation or construction bonds, 
     reduce the cost of teachers' out-of-pocket expenses for 
     school supplies, provide tax incentives for highly qualified 
     teachers to serve in high-needs schools, improve student 
     achievement during secondary education, and promote 
     flexibility in existing federal education programs.
     Conference Agreement
       The conference agreement calls for a total of $94.3 billion 
     in BA and $91.4 billion in outlays for 2009, and for $511.9 
     billion in BA and $500.7 billion in outlays over five years. 
     The conference agreement rejects the cuts to education, 
     training, and social services programs in the President's 
     2009 budget, including the President's proposal to eliminate 
     many programs that boost student achievement, provide needed 
     social services, and provide workers with training and 
     assistance. In contrast to the President's funding cuts, the 
     conference agreement increases funds for vital programs, 
     providing $8.4 billion more than the President's budget for 
     program year 2009.
       The conference agreement recognizes the importance of 
     investing in strong education and training programs and 
     supporting social services, particularly when the cost of 
     living is rising rapidly and we are building a highly skilled 
     workforce that can compete in the global marketplace. It 
     therefore includes significant increases for education 
     programs to help students from early childhood through post-
     secondary education, which include programs such as Head 
     Start, Title I, services under the Individuals with 
     Disabilities Education Act, Pell Grants, and other key 
     programs.
       The conference agreement contains a deficit-neutral reserve 
     fund for the House to accommodate legislation that makes 
     college more affordable. It also includes a Senate reserve 
     fund to facilitate enactment of legislation to make higher 
     education more accessible or more affordable, facilitate 
     modernization of school facilities through renovation or 
     construction bonds, reduce the cost of teachers' out-of-
     pocket expenses for school supplies, provide tax incentives 
     for highly qualified teachers to serve in high-needs schools, 
     improve student achievement during secondary education, and 
     promote flexibility and accountability in federal education 
     programs.

                          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.
     House-passed Resolution
       The House resolution calls for a total of $306.8 billion in 
     BA and $305.3 billion in outlays for 2009, and for $1.7 
     trillion in BA and $1.7 trillion in outlays over five years. 
     The budget resolution rejects the Administration's harmful 
     cuts to Medicaid.
       The discretionary resources for Function 550 for 2009 
     represent an increase over both the 2008 level and the 
     President's 2009 request, with a particular focus on NIH, 
     CDC, FDA, and the Occupational Safety & Health Administration 
     (OSHA). The House resolution increases resources for public 
     health, which includes programs focused on addressing health 
     promotion and disease prevention. Preventative health care 
     measures and disease management have the potential to lead to 
     more efficient use of health care spending, and reduced 
     illness, as well as an improvement in the health of the 
     public. The House resolution also includes increased funding 
     for food safety, access to quality health care for under-
     served populations, and other important programs.
       Programs in Function 550 are also addressed in the House 
     resolution's deficit-neutral reserve funds for SCHIP and for 
     Medicaid.
     Senate-passed Resolution
       The Senate resolution calls for a total of $313.1 billion 
     in BA and $310.6 billion in outlays for 2009, and $1.7 
     trillion in BA and $1.7 trillion in outlays over five years. 
     The Senate resolution includes increases above the 2008 
     enacted level adjusted for inflation and above the 
     President's request for NIH, HRSA, FDA, CDC, and IHS. 
     Significant increases for Community Health Centers, health 
     professions, and the National Health Service Corps within 
     HRSA are also included. The Senate resolution rejects the 
     President's proposed cuts for Rural Health Activities in 
     HRSA. The Senate 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 as well as funding to 
     support research into the causes, diagnoses, and treatments 
     for postpartum depression. The Senate resolution also 
     includes increases for the Maternal and Child Health Block 
     Grant, for autism research, education, and early detection, 
     and for the organ transplantation program. In addition, the 
     Senate resolution contains various health care related 
     deficit-neutral reserve funds, including a reserve fund for 
     SCHIP legislation.
     Conference Agreement
       The conference agreement includes a total of $310.3 billion 
     in BA and $307.5 billion in outlays for 2009, and $1.7 
     trillion in BA and $1.7 trillion in outlays over five years. 
     The conference agreement rejects the Administration's harmful 
     cuts to Medicaid.
       The discretionary resources for Function 550 for 2009 
     include increases above the 2008 enacted level adjusted for 
     inflation and above the President's request for NIH, HRSA, 
     FDA, CDC, IHS, and OSHA. The conference agreement includes an 
     increase for the Indian Health Service to help meet the 
     health needs of American Indians and Alaska Natives. The 
     conference agreement assumes additional FDA funding to give 
     the agency resources to protect and promote the health of 
     American families. Significant increases for Community Health 
     Centers, the National Health Service Corps, and health 
     professions within HRSA are also included as well as 
     increases for patient navigator services, the Maternal and 
     Child Health Block Grant, and resources to enhance federal 
     efforts on autism. The conference agreement increases 
     resources for programs focused on addressing health promotion 
     and disease prevention. Preventative health care measures and 
     disease management have the potential to lead to more 
     efficient use of health care spending, and reduced illness, 
     as well as an improvement in the health of the public.
       Programs in Function 550 are also addressed in various 
     deficit-neutral reserve funds, including those addressing 
     SCHIP and Medicaid.

                         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 44 
     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.
     House-passed Resolution
       The House resolution reflects a total of $420.2 billion in 
     BA and $420.0 billion in outlays in 2009, and $2.4 trillion 
     in BA and $2.4 trillion in outlays over five years.
       The House resolution rejects the Administration's harmful 
     cuts to Medicare. The House resolution 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 House resolution 
     assumes that savings from Medicare program efficiency 
     improvements will offset the costs of extending the premium 
     assistance program as well other initiatives to improve the 
     Medicare program for beneficiaries.
       The House resolution 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 House resolution provides a discretionary cap 
     adjustment of $198 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 resolution also contains a reserve fund to 
     accommodate legislation for Medicare program improvements.
     Senate-passed Resolution
       The Senate resolution calls for a total of $420.4 billion 
     in BA and $420.2 billion in outlays for 2009, and $2.4 
     trillion in BA and $2.4 trillion in outlays over five years.
       For 2009, the discretionary funding levels in this function 
     include a discretionary cap adjustment of up to $198 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 $1.3 billion in 2013, allowing for 
     legislation to delay the Medicare trigger. Specific policies 
     to enact these savings will be determined by the Senate 
     Finance Committee.
     Conference Agreement
       The conference agreement reflects a total of $420.2 billion 
     in BA and $420.0 billion in

[[Page H4260]]

     outlays in 2009, and $2.4 trillion in BA and $2.4 trillion in 
     outlays over five years. Discretionary and mandatory spending 
     levels in this function are consistent with the CBO baseline 
     funding levels.
       For 2009, the discretionary funding levels in Function 920 
     include a discretionary cap adjustment of up to $198 million 
     for program integrity activities of the Health Care Fraud and 
     Abuse Control 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.
     House-passed Resolution
       The House resolution calls for a total of $411.7 billion in 
     BA and $414.0 billion in outlays for 2009, and for $2.1 
     trillion in BA and $2.1 trillion in outlays over five years. 
     The discretionary resources for Function 600 represent an 
     increase over both the 2008 level and the President's 
     request. The funding will support efforts to reduce the 
     unacceptable number of Americans who live in poverty and to 
     provide assistance to those in need. The budget resolution 
     includes additional funding to address the current shortfall 
     in the project-based rental assistance program, prevent a 
     shortfall in the tenant-based rental assistance program which 
     would occur under the President's budget, and improve 
     supportive housing for the elderly, as in H.R. 2930 as passed 
     by the House. The House resolution also specifically rejects 
     the President's cut to the Low-Income Home Energy Assistance 
     Program (LIHEAP).
       Economic uncertainty and rising costs are increasing the 
     need for food assistance for children and adults. The House 
     budget resolution rejects the President's proposals to 
     terminate food stamps for 390,000 working families and 
     eliminate the Commodity Supplemental Food Program and notes 
     that legislation that passed the House with bipartisan 
     support was an appropriate first step toward ensuring that 
     nutrition assistance keeps up with inflation and rising food 
     prices.
       Mandatory programs in Function 600 are also addressed in 
     the House resolution's deficit-neutral reserve funds for 
     trade adjustment assistance and unemployment insurance 
     modernization, and child support enforcement.
     Senate-passed Resolution
       The Senate resolution calls for a total of $414.4 billion 
     in BA and $419.0 billion in outlays for 2009, and $2.1 
     trillion in BA and $2.1 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 rejects the President's proposals to cut various 
     housing assistance programs and includes significant 
     resources for Section 8 housing assistance in order to 
     address the funding shortfall for the project-based Section 8 
     program. The Senate resolution also provides increases for 
     the Child Care Development Block Grant and for the Special 
     Supplemental Nutrition Program for Women, Infants, and 
     Children (WIC). The Senate resolution also includes several 
     deficit-neutral reserve funds including reserve funds for up 
     to an additional $5.0 billion in mandatory child care 
     funding, for the reauthorization of the Temporary Assistance 
     for Needy Families supplemental grants, for improvements to 
     TANF, child welfare, or child support enforcement, for 
     improvements to the unemployment compensation program, and 
     the reauthorization of the trade adjustment assistance 
     programs.
     Conference Agreement
       The conference agreement calls for a total of $415.5 
     billion in BA and $416.0 billion in outlays for 2009, and for 
     $2.1 trillion in BA and $2.1 trillion in outlays over five 
     years. The conference agreement supports a total funding 
     level of $5.1 billion for LIHEAP--$3.1 billion in regular 
     funding and $2 billion in contingency funding. Rising fuel 
     costs have strained family budgets. The conference agreement 
     level for LIHEAP will provide heating and cooling assistance 
     to over five million low income households, including the 
     working poor, disabled persons, elderly, and families with 
     young children. The conference agreement also recognizes that 
     additional funding above the 2008 level adjusted for 
     inflation will be needed for WIC.
       The conference agreement accommodates additional funding 
     for the project-based rental assistance program shortfall and 
     to increase funding for the tenant-based rental assistance 
     program. The conference agreement also includes funding to 
     improve supportive housing for the elderly, as in H.R. 2930 
     as passed by the House.
       Mandatory programs in Function 600 are addressed in several 
     deficit-neutral reserve funds in the House and the Senate, 
     including reserve funds for up to an additional $5.0 billion 
     in mandatory child care funding, for reauthorization or 
     expansion of TANF grants, for child welfare or child support 
     enforcement, for modernization of the unemployment 
     compensation program, and for the reauthorization of the 
     trade adjustment assistance programs.

                     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.
     House-passed Resolution
       For the unified budget, the House resolution calls for a 
     total of $654.3 billion in BA and $651.4 billion in outlays 
     for 2009, and for $3.6 trillion in BA and outlays over five 
     years. (The budget resolution provides only the on-budget 
     amounts, which are $21.3 billion in BA and outlays for 2009, 
     and $135.9 billion in BA and outlays over five years.) The 
     House resolution rejects the President's private account 
     proposal for Social Security.
       The administrative budget for the SSA includes resources in 
     Function 570 (Medicare) and Function 600 (Income Security) as 
     well as Function 650. The House resolution assumes a $10.4 
     billion discretionary funding level for the administrative 
     expenses of SSA and the OIG. The increased resources will 
     enable SSA to address the significant number of individuals 
     waiting for disability and hearing decisions and thereby 
     reduce its unacceptable backlog in case reviews.
       The House resolution also accommodates an additional $240 
     million above the funding level 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.
     Senate-passed Resolution
       The Senate resolution calls for $21.3 billion in on-budget 
     BA and outlays for 2009, and $135.9 billion in on-budget BA 
     and outlays over five years. (The corresponding figures on a 
     unified basis are $654.5 billion in BA and $651.7 billion in 
     outlays for 2009 and $3.6 trillion in BA and outlays over 
     five years.) This spending reflects the general fund transfer 
     of income taxes on Social Security benefits to the trust 
     funds.
       For 2009, the Senate resolution provides $5.5 billion in BA 
     and $5.5 billion in outlays for SSA administrative expenses, 
     as outlined in section 102(c) of the resolution, which 
     represents a $240 million increase over the President's 
     request. The resolution also provides $150 million in 
     additional one-time funding for SSA administrative expenses. 
     The additional funding is intended to help address the 
     serious backlog of Social Security disability claims and 
     hearings, as well as other backlog workloads for which 
     additional resources are needed.
     Conference Agreement
       For the unified budget, the conference agreement calls for 
     $654.3 billion in BA and $651.4 billion in outlays for 2009, 
     and $3.6 trillion in BA and outlays over five years. (The 
     conference agreement provides only the on-budget amounts, 
     which are $21.3 billion in BA and outlays for 2009, and 
     $136.0 billion in BA and outlays over five years.) The 
     conference agreement rejects the President's private account 
     proposal for Social Security.
       For 2009, the conference agreement provides total net 
     discretionary resources for the administrative expenses of 
     SSA and the OIG (across all relevant functions) of $10.7 
     billion, $240 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 CDRs and SSI redeterminations), and additional 
     resources to address the serious backlog of disability claims 
     and hearings, as well as other backlog workloads for which 
     additional resources are needed.

              VETERANS BENEFITS AND SERVICES: FUNCTION 700

     Function Summary
       Function 700 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. More 
     than 99 percent of appropriated veterans' funding goes to VA, 
     and

[[Page H4261]]

     more than 85 percent of this funding is for VA medical care 
     and hospital services.
     House-passed Resolution
       The House resolution calls for a total of $93.3 billion in 
     BA and $92.4 billion in outlays for 2009, and for $495.3 
     billion in BA and $492.2 billion in outlays over five years. 
     For 2009, the House resolution provides $4.9 billion of 
     discretionary budget authority over the 2008 level and $3.2 
     billion above the President's 2009 budget. The House 
     resolution reflects the very high priority that Congress 
     places on adequately funding veterans' medical care. The 
     House resolution also rejects the health care enrollment fees 
     and drug co-payment increases proposed by the President's 
     budget.
       The House resolution provides full funding to support 
     excellent health care for veterans. The House resolution 
     provides funding to continue addressing problems such as 
     those identified at Walter Reed Army Medical Center to 
     improve military and veterans' health care facilities and 
     services.
       The House resolution provides funding in Function 700 above 
     the President's requested level for 2009 to address important 
     priorities including veterans' mental health, post-traumatic 
     stress disorder, and traumatic brain injury. There have been 
     many traumatic brain injuries in Iraq and Afghanistan. The 
     House notes that there is legislation to address the 
     prevalence of epilepsy among veterans, especially those with 
     traumatic brain injury. Research conducted by VA and the 
     Department of Defense found that about half of Vietnam 
     veterans who suffered penetrating head injuries developed 
     epilepsy. The House resolution also has additional funding 
     for disability compensation claims processing so that VA can 
     continue to address the inventory of pending claims.
       The House notes that many military service families are 
     experiencing financial difficulties due to overseas military 
     deployments and that Congress should consider ways to address 
     these difficulties.
     Senate-passed Resolution
       The Senate resolution calls for a total of $93.3 billion in 
     BA and $92.4 billion in outlays for 2009, and $490.9 billion 
     in BA and $488.1 billion in outlays over five years. The 
     Senate resolution provides $48.2 billion in BA in 2009 for 
     discretionary veterans' programs, including medical care. 
     This amount is $3.3 billion more than the President's 
     proposed funding level. 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.
       Over the past several years, the President has consistently 
     underestimated the needs of veterans, and Congress has made 
     up the shortfall. In 2005, the President's budget underfunded 
     the Veterans Health Administration, which required Congress 
     to pass two supplemental funding bills. Last year, the nation 
     was shocked to learn of the mistreatment of soldiers 
     recuperating from wounds at the Walter Reed Army Medical 
     Center. To address these and other funding shortfalls in the 
     President's budget, last year's budget resolution paved the 
     way for the largest funding increase in VA's history.
       The Senate resolution also recognizes the difficulties 
     veterans leaving active duty have in transitioning their 
     medical records to the VA. These administrative disconnects 
     can have dramatic and sometimes dire consequences on our 
     young men and women when they leave the military. It is also 
     difficult for VA to evaluate and treat veterans because VA 
     may not have a complete medical record. Therefore, the Senate 
     resolution supports efforts to implement fully the Wounded 
     Warrior Act, section 1635 in the National Defense 
     Authorization Act. This provision requires the Department of 
     Defense and VA to develop a ``fully interoperable electronic 
     personal health information system'' as well as establish a 
     joint program office to oversee the creation of this new 
     healthcare system.
       Additionally, the Senate resolution recognizes that the 
     President's proposed funding for VA major construction 
     projects will result in significant delays and cost-growth to 
     on-going projects. Therefore, the Senate resolution provides 
     robust resources for VA major projects. The Senate resolution 
     also notes the importance of medical research at VA, 
     including the Air Force Health Study, and provides the 
     resources for this important priority. The Senate resolution 
     also supports robust funding for State Veterans Cemeteries.
     Conference Agreement
       The conference agreement provides a total of $93.3 billion 
     in BA and $92.5 billion in outlays for 2009, and $496.3 
     billion in BA and $493.1 billion in outlays over five years. 
     The conference agreement provides $48.2 billion for 2009 for 
     discretionary veterans' programs, including medical care. 
     This amount is $4.9 billion more than the 2008 enacted level, 
     $3.7 billion more than the amount needed to maintain 
     purchasing power at the 2008 level, and $3.3 billion more 
     than the President's proposed funding level for 2009. Over 
     five years (2009-2013) the agreement provides $39.0 billion 
     more than the President's budget. The conference agreement 
     level enjoys the strong support of major veterans 
     organizations, including the Independent Budget which is 
     developed by AMVETS, Disabled American Veterans, Paralyzed 
     Veterans of America, and Veterans of Foreign Wars the 
     American Legion, Iraq and Afghanistan Veterans of America, 
     and Vietnam Veterans of America.

                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.
     House-passed Resolution
       The House resolution calls for a total of $48.1 billion in 
     BA and $47.9 billion in outlays for 2009, and for $252.1 
     billion in BA and $252.2 billion in outlays over five years. 
     For Function 750, the House resolution rejects the 
     President's repeated cut of local law enforcement programs. 
     Instead, the function total includes enough resources to 
     increase homeland security programs and provide for law 
     enforcement programs, such as the State Criminal Alien 
     Assistance Program (SCAAP)--and recognizes the importance of 
     this critical reimbursement program.
       In addition to rejecting the repeated cuts to SCAAP in the 
     President's budget, the House resolution also rejects the 
     President's cuts to Community Oriented Policing Services 
     (COPS) and Edward Byrne Memorial Justice Assistance Grants--
     both of which are important priorities for keeping our 
     communities safe. The House resolution values the funding 
     Byrne-JAG provides to local law enforcement at a time when 
     many communities are combating problems including a 
     methamphetamine epidemic and other crimes.
       In addition, the House resolution protects both our youth 
     and victims of crime by restoring cuts to both juvenile 
     justice and programs to prevent violence against women and by 
     limiting amounts diverted from the Crime Victims Fund. The 
     House resolution provides funding above the President's 
     budget level for 2009 for these purposes and to protect the 
     border.
     Senate-passed Resolution
       The Senate resolution calls for a total of $49.4 billion in 
     BA and $46.9 billion in outlays for 2009, and $246.9 billion 
     in BA and $247.5 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, Violence Against Women Act programs, and 
     DOJ Tribal Justice programs. The Senate resolution also 
     includes increases in funding proposed in the President's 
     budget for border security.
     Conference Agreement
       The conference agreement calls for a total of $48.3 billion 
     in BA and $48.1 billion in outlays for 2009, and for $247.5 
     billion in BA and $248.1 billion in outlays over five years. 
     For Function 750, the agreement rejects the President's 
     repeated cuts and provides additional resources for law 
     enforcement programs such as COPS, including meth hotspot 
     grants, the Edward Byrne Memorial Justice Assistance Grant 
     program, and SCAAP an important reimbursement program for our 
     state and local law enforcement agencies.
       In addition, the conference agreement protects both our 
     youth and victims of crime by rejecting cuts to juvenile 
     justice, programs to prevent violence against women, and DOJ 
     tribal justice programs. The agreement provides funding for 
     these purposes and to protect the border.

                    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.
     House-passed Resolution
       The House resolution calls for a total of $23.5 billion in 
     BA and $23.9 billion in outlays for 2009, and for $107.4 
     billion in BA and $107.5 billion in outlays over five years. 
     The budget resolution includes a program integrity initiative 
     to increase IRS tax compliance efforts to collect unpaid 
     taxes from those who are not paying what they owe. Funding in 
     this function could be used for items such as H.R. 3548, the 
     Plain Language in Government Communications Act of 2007, to 
     enhance citizen access to government information and services 
     by establishing plain language as the standard style of 
     covered government documents issued to the public.
     Senate-passed Resolution
       The Senate resolution calls for $24.5 billion in BA and 
     $24.4 billion in outlays for 2009, and $106.8 billion in BA 
     and $106.9 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

[[Page H4262]]

     cap adjustment that directs an additional $490 million to IRS 
     enforcement activities. The Senate resolution includes 
     funding to carry out the Freedom of Information Act (FOIA) by 
     establishing the Office of Government Information Services at 
     the National Archives. The Senate resolution also includes 
     funding to construct a new headquarters for the Department of 
     Homeland Security.
       The Senate resolution 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. The Senate 
     resolution also includes a deficit-neutral reserve fund for 
     legislation that achieves savings by requiring that agencies 
     increase their use of recovery audits.
     Conference Agreement
       The conference agreement includes $24.0 billion in BA and 
     $24.4 billion in outlays for 2009, and $106.9 billion in BA 
     and $107.0 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 $490 
     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.
     House-passed Resolution
       For the unified budget, the House resolution calls for a 
     total of $216.8 billion in BA and outlays for 2009, and for 
     $1.3 trillion in BA and outlays over five years. (The budget 
     resolution provides only the on-budget amounts, which are 
     $334.2 billion in BA and outlays for 2009, and $2.0 trillion 
     in BA and outlays over five years.)
       Since 2001, the federal government's net interest payments 
     on its debt have grown dramatically, becoming one of the 
     largest and fastest-growing components of the federal budget, 
     exceeding spending on education, veterans' affairs, and 
     homeland security combined.
     Senate-passed Resolution
       The Senate resolution calls for BA and outlays of $217.7 
     billion in unified net interest payments in 2009 and a total 
     of $1.3 trillion over five years. (The on-budget totals for 
     BA and outlays are $335.1 billion for 2009 and $2.0 trillion 
     over five years.)
     Conference Agreement
       For the unified budget, the conference agreement calls for 
     a total of $217.0 billion in BA and outlays for 2009, and for 
     $1.3 trillion in BA and outlays over five years. (The on-
     budget amounts are $334.4 billion in BA and outlays for 2009, 
     and $2.0 trillion in BA and outlays 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.
     House-passed Resolution
       The House resolution calls for a total of $0.0 billion in 
     BA and $0.3 billion in outlays for 2009, and for -$0.8 
     billion in BA and -$0.3 billion in outlays over five years. 
     The House resolution includes $1.0 billion in 2008 
     discretionary budget authority to cover unanticipated needs, 
     should they arise. The House resolution also includes $750 
     million in mandatory savings over six years. These savings 
     reflect a reconciliation instruction to the Ways and Means 
     Committee. To meet the instructions, savings can be achieved 
     in any program within the Committee's jurisdiction, other 
     than Social Security, which reconciliation cannot impact.
     Senate-passed Resolution
       The Senate resolution calls for a total of -$14.9 billion 
     in BA and -$4.1 billion in outlays for 2009, and -$49.6 
     billion in BA and -$43.7 billion in outlays over five years.
     Conference Agreement
       The conference agreement includes a total of -$13.2 billion 
     in BA and -$6.5 billion in outlays for 2009, and -$63.2 
     billion in BA and -$54.8 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.
     House-passed Resolution
       For the unified budget, the House resolution calls for a 
     total of -$81.0 billion in BA and outlays for 2009, and for 
     -$444.9 billion in BA and outlays over five years. (The 
     budget resolution provides only the on-budget amounts, which 
     are -$67.1 billion in BA and outlays for 2009, and -$366.9 
     billion in BA and outlays over five years.) The negative 
     spending in Function 950 represents CBO's baseline estimate 
     of undistributed offsetting receipts.
     Senate-passed Resolution
       The Senate resolution calls for unified undistributed 
     offsetting receipts of $81.0 billion in BA and outlays for 
     2009 and -$444.9 billion in BA and outlays over five years. 
     (The on-budget totals for BA and outlays are -$67.1 billion 
     for 2009 and -$366.9 billion over five years.) The Senate 
     resolution matches CBO's baseline estimate of undistributed 
     offsetting receipts.
     Conference Agreement
       For the unified budget, the conference agreement includes 
     undistributed offsetting receipts of -$81.0 billion in BA and 
     outlays for 2009, and -$444.9 billion in BA and outlays over 
     five years. (The on-budget amounts are -$67.1 billion in BA 
     and outlays for 2009, and -$366.9 billion in BA and outlays 
     over five years.)

        OVERSEAS DEPLOYMENTS AND OTHER ACTIVITIES: FUNCTION 970

     Function Summary
       This function includes funding for overseas deployments and 
     other activities.
     House-passed Resolution
       The House resolution includes, as a placeholder, an amount 
     equal to the President's pending request for 2008 and 2009 to 
     account for any future House consideration of appropriations 
     for overseas deployments and other activities.
     Senate-passed Resolution
       The Senate resolution did not include Function 970.
     Conference Agreement
       The conference agreement includes Function 970 in an amount 
     equal to the President's pending request for 2008 and 2009 as 
     a placeholder to account for any future consideration of 
     appropriations for overseas deployments and other activities.

                             RECONCILIATION

     House-passed Resolution
       Section 201 of the House-passed resolution contains 
     reconciliation instructions. Reconciliation is a special 
     congressional procedure used to implement the spending and 
     revenue targets in a budget resolution. The instructions 
     direct a committee to make changes in laws under its 
     jurisdiction that affect revenues or direct spending to 
     achieve a specified budgetary result. The legislation used to 
     implement those instructions is reported as a reconciliation 
     bill.
       Section 201 contains two separate instructions to the House 
     Committee on Ways and Means. Subsection (a) directs the 
     Committee to report a measure by September 12, 2008, that 
     reduces direct spending by $750 million for the period of 
     2008 through 2013. Subsection (b) directs the Committee to 
     report a measure by July 15, 2008, to decrease revenues by 
     $70 billion in 2009 and to increase revenues by $70 billion 
     for the period of 2010 through 2013. When only one committee 
     receives an instruction the measure is reported directly to 
     the House.
       Last year the House adopted a rule relating to 
     reconciliation instructions (clause 7, Rule XXI). The rule 
     requires that any reconciliation instruction must not 
     increase the deficit or reduce the surplus over the pay-as-
     you-go time periods. These instructions satisfy the 
     requirement established under clause 7 of Rule XXI.
     Senate-passed Resolution
       The Senate resolution did not include any reconciliation 
     instructions.
     Conference Agreement
       The conference agreement does not include any 
     reconciliation instructions.

                             RESERVE FUNDS

       The House and the Senate use reserve funds in connection 
     with consideration of deficit-neutral legislation that 
     complies with each chamber's rules. The conference agreement 
     therefore contains reserve funds for the House and for the 
     Senate to address the rules and procedures that apply in each 
     chamber.
     House-passed Resolution
       Sec. 301. Deficit-neutral reserve fund for the State 
           Children's Health Insurance Program
       The reserve fund accommodates legislation, within the 
     jurisdiction of the Committee on Energy and Commerce, of up 
     to $50 billion in additional outlays to improve children's 
     health through reauthorization of the State Children's Health 
     Insurance 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. There are over nine million uninsured 
     children in this nation. Last year, Congress twice passed 
     bipartisan legislation that would have expanded coverage to 
     nearly four million additional children if the President had 
     not twice vetoed the legislation.

[[Page H4263]]

       Sec. 302. Deficit-neutral reserve fund for veterans and 
           servicemembers
       The reserve fund accommodates legislation that enhances 
     medical care for wounded or disabled military personnel or 
     veterans; maintains affordable health care for military 
     retirees and veterans; improves disability benefits or 
     evaluations for wounded or disabled military personnel or 
     veterans, including measures to expedite the claims process; 
     expands eligibility to permit additional disabled military 
     retirees to receive both disability compensation and retired 
     pay; eliminates the offset between Survivor Benefit Plan 
     annuities and veterans' Dependency and Indemnity 
     Compensation; or provides or increases benefits for Filipino 
     veterans of World War II or their survivors and dependents, 
     to the extent that any such legislation complies with the 
     pay-as-you-go principle.
       Sec. 303. Deficit-neutral reserve fund for education 
           benefits for servicemembers, veterans, and their 
           families
       The reserve fund accommodates legislation that enhances 
     education benefits or assistance for servicemembers, members 
     of the National Guard, reservists, veterans, or their 
     spouses, survivors, or dependents, to the extent that such 
     legislation complies with the pay-as-you-go principle. Among 
     the proposals that the reserve fund could accommodate is H.R. 
     3882, which would address a provision in law that results in 
     certain members of the National Guard and Reserves receiving 
     less in Montgomery GI bill (MGIB) education benefits than 
     servicemembers who served about the same amount of time on 
     active duty. The current requirement for receiving full MGIB 
     benefits is active-duty service of 24 months.
       Sec. 304. Deficit-neutral reserve fund for infrastructure 
           investment
       The reserve fund accommodates legislation that provides for 
     increased investment in infrastructure projects, so long as 
     it complies with the pay-as-you-go principle. The fund 
     accommodates new investment in highways, bridges, transit, 
     rail, aviation, ports, waterways, and water treatment 
     facilities, among other types of infrastructure.
       Sec. 305. Deficit-neutral reserve fund for renewable energy 
           and energy efficiency
       The reserve fund accommodates legislation that provides tax 
     incentives for or otherwise encourages the production of 
     renewable energy or increased energy efficiency; encourages 
     investment in emerging energy or vehicle technologies or 
     carbon capture and sequestration; provides for reductions in 
     greenhouse gas emissions; or facilitates the training of 
     workers for these industries (green collar jobs), to the 
     extent that any such legislation complies with the pay-as-
     you-go principle. For example, one item that the reserve fund 
     could accommodate is extension of the solar energy and fuel 
     cell investment tax credit.
       Sec. 306. Deficit-neutral reserve fund 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. 307. Deficit-neutral 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 
     2007 to 25.7 million in 2008 and to 28.3 million in 2009, 
     according to the Joint Committee on Taxation.
       Sec. 308. Deficit-neutral reserve fund for higher education
       The reserve fund accommodates reforms to the student loan 
     programs or changes in law that increase benefits to 
     students, consistent with the pay-as-you-go principle adopted 
     by the House. Both the House and the Senate have passed bills 
     to reauthorize the Higher Education Act, and this reserve 
     fund will provide committees maximum flexibility in finding 
     offsets to make college more affordable and accessible for 
     students.
       Sec. 309. Deficit-neutral 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. 310. Deficit-neutral reserve fund for Medicare 
           improvements
       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. Under current law, physicians face a 10.6 
     percent cut in their Medicare payment rate on July 1 of this 
     year, and further cuts every year through 2016. The reserve 
     fund also accommodates other program improvements, such as 
     greater access to preventive benefits; additional assistance 
     for low-income beneficiaries; and better efficiencies within 
     the Part D program, such as prompt payment of prescription 
     drug claims; as long as the legislation is consistent with 
     the pay-as-you-go principle.
       Sec. 311. Deficit-neutral reserve fund for health care 
           quality, effectiveness, and efficiency
       The reserve fund accommodates legislation that: provides 
     incentives or other support for adoption of modern health 
     information technology; establishes a new federal or public-
     private initiative for research on the comparative 
     effectiveness of different medical interventions; or that 
     provides parity between health insurance coverage of mental 
     health benefits and benefits for medical and surgical 
     services, including parity in public programs; as long as the 
     legislation is consistent with the House pay-as-you-go 
     principle.
       Sec. 312. Deficit-neutral reserve fund for Medicaid and 
           other programs
       The reserve fund accommodates legislation that prevents or 
     delays the implementation or administration of regulations or 
     administrative actions affecting Medicaid, SCHIP, or other 
     programs, as well as extension of the Transitional Medical 
     Assistance (TMA) or Qualified Individuals (QI) programs, as 
     long as the legislation complies with the pay-as-you-go 
     principle. TMA provides temporary Medicaid assistance for 
     families transitioning to the workforce and QI provides 
     premium assistance for lower-income Medicare beneficiaries.
       Sec. 313. Deficit-neutral reserve fund for trade adjustment 
           assistance and unemployment insurance modernization
       The reserve fund accommodates legislation to reauthorize 
     and expand the trade adjustment assistance program (TAA) and 
     modernize the unemployment insurance (UI) system, consistent 
     with the pay-as-you-go rule adopted by the House. Last year, 
     the House passed legislation that included much-needed 
     reforms to substantially increase the number of workers able 
     to receive needed income support and job training.
       Sec. 314. Deficit-neutral reserve fund for county payments 
           legislation
       The reserve fund accommodates any legislation that 
     reauthorizes the Secure Rural Schools and Community Self-
     Determination Act (Public Law 106-393) or makes changes to 
     the Payments in Lieu of Taxes Act of 1976 (Public Law 94-
     565), to the extent that such legislation complies with the 
     pay-as-you-go principle. Public Law 106-393 provides economic 
     assistance for roads and schools in rural communities 
     affected by the loss of receipts from sales on federal lands 
     in their communities. Federal payments under Public Law 94-
     565 to local governments are designed to offset lost property 
     tax revenue from federal lands within the localities. Both 
     forms of assistance are intended to compensate local 
     governments for the tax-exempt status of the national forests 
     and other federal lands.
       Sec. 315. Deficit-neutral reserve fund for San Joaquin 
           River restoration and Navajo Nation water rights 
           settlements
       The reserve fund accommodates 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, to the extent that the 
     legislation complies with the pay-as-you-go principle.
       Sec. 316. Deficit-neutral reserve fund for the National 
           Park Centennial Fund
       The reserve fund accommodates any legislation that provides 
     for the establishment of the National Park Centennial Fund, 
     so long as it complies with the pay-as-you-go principle. The 
     Centennial Fund would provide additional funding for specific 
     Interior-approved, community-supported projects within the 
     National Park system to improve parks and provide better 
     visitor experiences.
       Sec. 317. Deficit-neutral reserve fund for child support 
           enforcement
       The reserve fund accommodates legislation to increase the 
     number of children who receive the full child support that is 
     owed to them by enhancing federal collection efforts or 
     supporting state initiatives to pass through 100 percent of 
     collected child support to families, as long as the 
     legislation complies with the pay-as-you-go principle. For 
     every dollar the federal government spends on child support 
     enforcement, $6.50 is collected on behalf of working 
     families. Last year, the child support enforcement system 
     collected $22 billion in private support for 17 million 
     children.
     Senate-passed Resolution
       Sec. 301. Strengthening and stimulating the American 
           economy and providing economic relief to American 
           families
       (a) Tax Relief. The Senate-passed resolution allows the 
     Chairman of the Budget Committee to revise the levels in the 
     resolution for one or more pieces of tax relief legislation, 
     which may include extensions of expiring tax cuts and 
     reinstatement of expired tax relief, provided the legislation 
     is deficit-neutral over the total of 2008-2013 and 2008-2018.
       (b) Manufacturing. The Senate-passed resolution allows the 
     Chairman of the Budget

[[Page H4264]]

     Committee to revise the levels in the resolution for 
     legislation aimed at revitalizing the manufacturing sector in 
     the United States, which may include tax incentives, 
     increased research and development, and other important 
     support, provided such legislation is deficit-neutral over 
     the total of 2008-2013 and 2008-2018.
       (c) Housing. The Senate-passed resolution allows the 
     Chairman of the Budget Committee to revise the levels in the 
     resolution for legislation that would provide housing 
     assistance, which may include low-income rental assistance, 
     or establish an affordable housing fund to finance low-income 
     housing investments, financed by contributions from the 
     government-sponsored enterprises or other sources, provided 
     the legislation is deficit-neutral over the total of 2008-
     2013 and 2008-2018.
       (d) Flood Insurance Reform. The Senate-passed resolution 
     allows the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that authorizes 
     flood insurance reform and modernization, provided the 
     legislation is deficit-neutral over the total of 2008-2013 
     and 2008-2018.
       (e) Trade. The Senate-passed resolution allows the Chairman 
     of the Budget Committee to revise the levels in the 
     resolution for legislation to address our nation's trade 
     agreements, preferences, sanctions, enforcement, or customs 
     laws, provided the legislation is deficit-neutral over the 
     total of 2008-2013 and 2008-2018.
       (f) Economic Relief for American Families. The Senate-
     passed resolution allows the Chairman of the Budget Committee 
     to revise the levels in the resolution for legislation in the 
     following areas, provided it is deficit-neutral over the 
     total of 2008-2013 and 2008-2018:
       (1) TANF--legislation reauthorizing Temporary Assistance 
     for Needy Families supplemental grants or making improvements 
     to the TANF program, child welfare programs, or child support 
     enforcement. The legislation for improving child welfare 
     includes steps to help support foster children being raised 
     by grandparents, older youth aging out of foster care, and 
     other improvements in child welfare financing to prevent 
     child abuse and neglect and promote permanent families for 
     children. In addition, legislation that strengthens support 
     for treatment options for families struggling with substance 
     abuse and addiction, and in particular takes steps to prevent 
     the increased use of methamphetamines as well as provides 
     treatment for addicted individuals and families can be 
     accommodated within this reserve fund to improve child 
     welfare.
       (2) Child Care--legislation providing up to $5 billion for 
     the child care entitlement to states.
       (3) Emergency Food Assistance--legislation providing up to 
     $40 million for the emergency food assistance program.
       (4) Unemployment Compensation--legislation improving the 
     unemployment compensation program.
       (5) TAA--legislation reauthorizing trade adjustment 
     assistance programs.
       (g) America's Farms and Rural America.
       (1) Farm Bill. The Senate-passed resolution allows the 
     Chairman of the Budget Committee to revise the levels in the 
     resolution for legislation to reauthorize agricultural 
     programs, address the needs of rural America, promote new 
     sources of renewable energy from U.S. farm products, 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, provided the legislation is 
     deficit-neutral over the total of 2008-2013 and 2008-2018.
       (2) County Payments. The Senate-passed resolution includes 
     a deficit-neutral reserve fund allowing the Chairman of the 
     Budget Committee to revise the levels and limits in the 
     resolution for legislation that provides for the 
     reauthorization of the Secure Rural Schools and Community 
     Self-Determination Act of 2000, makes changes to the Payments 
     in Lieu of Taxes Act of 1976, or both, provided the 
     legislation is deficit-neutral over the total of 2008-2013 
     and 2008-2018.
       Sec. 302. Improving education
       The Senate-passed resolution includes deficit-neutral 
     reserve funds allowing the Chairman of the Budget Committee 
     to revise the levels in the resolution for--
       (a) legislation to make higher education more accessible or 
     more affordable, which may include increasing funding for the 
     federal Pell Grant program or increasing federal student loan 
     limits, modernize school facilities through renovation or 
     construction bonds, reduce the cost to teachers of out-of-
     pocket expenses for school supplies, or provide tax 
     incentives for highly-qualified teachers to serve in high-
     needs schools; and
       (b) legislation to improve student achievement during 
     secondary education--

     provided the legislation is deficit-neutral over the total of 
     2008-2013 and 2008-2018.
       Sec. 303. Investing in infrastructure
       The Senate-passed resolution provides a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels and limits in the resolution for legislation to 
     provide a sustained, robust federal investment in our 
     nation's infrastructure, which may include transit, housing, 
     energy, water, highways, bridges, or other important 
     infrastructure projects, provided the legislation is deficit-
     neutral over the total of 2008-2013 and 2008-2018.
       Sec. 304. Investing in clean energy, preserving the 
           environment, and providing for certain settlements
       (a) Energy and the Environment: The Senate-passed 
     resolution includes a deficit-neutral reserve fund that will 
     allow the Chairman of the Budget Committee to revise the 
     levels and limits in the resolution for energy legislation or 
     environmental legislation that would decrease greenhouse gas 
     emissions, reduce our nation's dependence on imported energy, 
     produce ``green'' jobs, or protect national parks, oceans, or 
     coastal areas, provided the legislation is deficit-neutral 
     over the total of 2008-2013 and 2008-2018. The legislation 
     may include tax provisions.
       (b) Settlements: The Senate-passed resolution includes a 
     deficit-neutral reserve fund allowing the Chairman of the 
     Budget Committee to revise the levels in the resolution for 
     legislation to carry out the San Joaquin River Restoration 
     Settlement Act, or legislation to implement a Navajo Nation 
     water rights settlement and other provisions authorized by 
     the Northwestern New Mexico Rural Water Projects Act, 
     provided the legislation is deficit-neutral over the total of 
     2008-2013 and 2008-2018.
       Sec. 305. Providing for America's veterans, wounded 
           servicemembers, and a post-9/11 G.I. bill
       The Senate-passed resolution includes deficit-neutral 
     reserve funds allowing the Chairman of the Budget Committee 
     to revise the levels in the resolution for--
       (a) Veterans and Wounded Servicemembers: Legislation that 
     would--
       (1) enhance medical care, disability evaluations, or 
     disability benefits for wounded or disabled military 
     personnel or veterans;
       (2) provide for or increase benefits to Filipino veterans 
     of World War II, their survivors and dependents;
       (3) allow for the transfer of education benefits from 
     servicemembers to family members or veterans (including the 
     elimination of the offset between Survivor Benefit Plan 
     annuities and veterans' dependency and indemnity 
     compensation);
       (4) provide for continuing payment to Armed Forces Members 
     retired or separated due to combat-related injury after 
     September 11, 2001, of bonuses they were entitled to prior to 
     retirement or separation; or
       (5) enhance availability of health care and other services 
     for veterans in rural areas
     --provided the legislation does not include increased fees 
     charged to veterans for pharmacy co-payments, annual 
     enrollment, or other third-party insurance payment offsets, 
     and provided it is deficit-neutral over the total of 2008-
     2013 and 2008-2018.
       (b) A Post-9/11 G.I. Bill: Legislation to enhance 
     educational benefits of servicemembers and veterans with 
     service on active duty in the Armed Forces on or after 
     September 11, 2001, provided such legislation is deficit-
     neutral over the total of 2008-2013 and 2008-2018.
       Sec. 306. Improving America's health
       The Senate-passed resolution includes deficit-neutral 
     reserve funds allowing the Chairman of the Budget Committee 
     to revise the levels in the resolution for legislation in the 
     following areas, provided such legislation is deficit-neutral 
     over the total of 2008-2013 and 2008-2018.
       (a) SCHIP: Legislation to reauthorize the State Children's 
     Health Insurance Program, expand coverage of the estimated 
     six million children eligible but not enrolled in either 
     SCHIP or Medicaid, and maintain coverage for all currently-
     enrolled children.
       (b) Medicare Improvements--
       (1) Physician Payments: Legislation to increase the 
     reimbursement rate for physician services under Medicare Part 
     B. Under current law, without further Congressional action, 
     physician payments under Medicare Part B will be cut over ten 
     percent on July 1, 2008, and an additional five percent in 
     subsequent years. The President's budget does not propose to 
     prevent this cut. If no adjustments are made, over time, more 
     and more physicians will stop providing services to Medicare 
     patients, reducing seniors' access to care.
       (2) Other Medicare Improvements: Legislation to make other 
     improvements to the Medicare program, including improvements 
     to the prescription drug benefit under Medicare Part D, 
     adjustments to the Medicare Savings Program, reductions to 
     beneficiary cost-sharing for preventive benefits under 
     Medicare Part B, and to 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.
       (3) Electronic Prescribing: Legislation to promote 
     deployment and use of electronic prescribing technologies.
       (4) Rural Equity Payment Policies: Legislation to preserve 
     existing Medicare payment provisions supporting rural health 
     care and promote Medicare payment policies that increase 
     access to quality health care in isolated and undeserved 
     rural areas.
       (5) Medicare Low-Income Programs: Legislation making 
     improvements to the Medicare Savings Program and the Medicare 
     Part D low-income subsidy program.
       (c) Health Care Quality, Effectiveness, Efficiency, and 
     Transparency, including:
       (1) Comparative Effectiveness Research: Legislation to 
     establish a new federal or public-private initiative for 
     comparative effectiveness research.
       (2) Improving the Health Care System: Legislation to create 
     a framework and parameters for the use of Medicare data for 
     the

[[Page H4265]]

     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, while protecting 
     the privacy of beneficiaries and other proprietary 
     information.
       (3) Health Information Technology and Best Practices--
       (A) Health Information Technology: Legislation to provide 
     incentives or other support for adoption of modern health 
     information technology, including the adoption of electronic 
     prescribing technology, to improve quality and protect 
     privacy in health care, such as activities by the Department 
     of Defense and the Department of Veterans Affairs to 
     integrate their electronic health record data.
       (B) Best Practices: Legislation that provides for payments 
     that are based on adherence to clinical ``best practices.''
       (d) FDA, including:
       (1) Regulation: Legislation that authorizes the Food and 
     Drug Administration (FDA) to regulate products and assess 
     user fees on manufacturers and importers of these products to 
     cover the cost of FDA's regulatory activities, and
       (2) Drug Importation: Legislation allowing for the safe 
     importation of prescription drugs approved by the FDA.
       (e) Medicaid, including:
       (1) Rules or Administrative Actions: Legislation addressing 
     certain rules or administrative actions, and
       (2) TMA: Legislation extending the Transitional Medical 
     Assistance program.
       (f) Other Improvements in Health, including legislation 
     making health insurance coverage more affordable and 
     available to small businesses and their employees, improving 
     health care and provide quality health insurance for the 
     uninsured and underinsured, reauthorizing special diabetes 
     programs, improving long-term care, or providing for mental 
     health parity.
       (g) Pediatric Dental Care, for legislation providing for 
     improved access to pediatric dental care for children from 
     low-income families. The Senate recognizes the importance of 
     pediatric dental services in the overall health of children 
     and the potential preventative dental care services have to 
     save costs in the long run. However, access to pediatric 
     dental services can be improved. For example, community-based 
     dental clinics cite low reimbursement as a strain on their 
     ability to treat uninsured patients and improve access to 
     Medicaid and SCHIP beneficiaries. To address this issue, the 
     Senate-passed resolution includes a deficit-neutral reserve 
     fund for legislation to improve pediatric oral health and 
     increase access to such services, including adequately 
     compensating qualified dental clinics and other oral health 
     providers for treatment of children from low-income families.
       Sec. 308. Judicial pay and judgeships
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that authorizes 
     salary adjustments for justices and judges of the United 
     States or increases the number of federal judgeships, 
     provided such legislation is deficit-neutral over the total 
     of 2008-2013 and 2008-2018.
       Sec. 309. Reforming the AMT for individuals
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that would reinstate 
     the pre-1993 rates for the alternative minimum tax for 
     individuals, provided such legislation is deficit-neutral 
     over the total of 2008-2013 and 2008-2018.
       Sec. 310. Repealing the 1993 increase in the income tax on 
           Social Security benefits
       The Senate-passed resolution includes a reserve fund 
     allowing 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 such legislation is deficit-neutral over 
     the total of 2008-2013 and 2008-2018.
       Sec. 311. Improving energy efficiency and production
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation including specific 
     proposals to improve energy efficiency and production, 
     provided such legislation is deficit-neutral over the total 
     of 2008-2013 and 2008-2018.
       Sec. 312. Immigration reform and enforcement
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that would provide 
     increased border security, immigration law enforcement, 
     staffing, reform measures, and penalties against employers 
     hiring undocumented immigrants; prohibit employers hiring 
     undocumented immigrants from receiving federal contracts; 
     provide funding for enforcing sanctions against such 
     employers; deploy National Guard troops to the northern or 
     southern borders of the U.S. under certain circumstances; 
     evaluate noncitizen prison populations for removable criminal 
     aliens; or implement exit data, provided such legislation is 
     deficit-neutral over the total of 2008-2013 and 2008-2018.
       Sec. 313. Border security, immigration enforcement, and 
           criminal alien removal
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that funds border 
     security, immigration enforcement, and criminal alien removal 
     programs, provided such legislation is deficit-neutral over 
     the total of 2008-2013 and 2008-2018.
       Sec. 314. Science parks
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that provides grants 
     and loan guarantees for developing and constructing science 
     parks to promote innovation through high technology, provided 
     such legislation is deficit-neutral over the total of 2008-
     2013 and 2008-2018.
       Sec. 315. Pilot program for background checks on long-term 
           care employees
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that provides for a 
     three-year extension of the pilot program for national and 
     state background checks on direct patient access employees of 
     long-term care facilities or providers under section 307 of 
     the Medicare Prescription Drug, Improvement, and 
     Modernization Act of 2003 and removes the limit on the number 
     of participating states under the pilot program, provided 
     such legislation is deficit-neutral over the total of 2008-
     2013 and 2008-2018.
       Sec. 316. Studying the effect of cooperation with local law 
           enforcement
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that requires an 
     assessment of the impact of local ordinances prohibiting 
     cooperation with the Department of Homeland Security 
     regarding the effectiveness of law enforcement, success rates 
     of criminal prosecutions, reporting of criminal activities by 
     immigrant victims of crime, and level of public safety; 
     changes in the number of reported incidents or complaints of 
     racial profiling; or wrongful detention of U.S. citizens and 
     lawful permanent residents, provided such legislation is 
     deficit-neutral over the total of 2008-2013 and 2008-2018.
       Sec. 317. Terminating deductions from mineral revenue 
           payments to states
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that would terminate 
     the authority to deduct certain amounts from mineral revenues 
     payable to states, provided such legislation is deficit-
     neutral over the total of 2008-2013 and 2008-2018.
       Sec. 318. Establishing state internet sites for disclosure 
           of information regarding payments made under the state 
           Medicaid program
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution if legislation is reported by the 
     Finance Committee that provides for states to disclose 
     through a publicly accessible internet site institutional 
     providers receiving payment under the state Medicaid program, 
     amounts paid to each provider each year, the number of 
     patients treated by each provider, and the dollar amount paid 
     per patient to each provider, provided that the Finance 
     Committee is within its committee allocation pursuant to 
     section 302(a) of the Congressional Budget Act of 1974 and 
     such legislation is deficit-neutral over the total of 2008-
     2013 and 2008-2018.
       Sec. 319. Traumatic brain injury
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that would provide 
     at least $9 million for 2009 to fund traumatic brain injury 
     programs, provided such legislation is deficit-neutral over 
     the total of 2008-2013 and 2008-2018.
       Sec. 320. Improving the animal health and disease program
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that would fully 
     fund the animal health and disease program, provided such 
     legislation is deficit-neutral over the total of 2008-2013 
     and 2008-2018.
       Sec. 321. Implementing yellow ribbon reintegration program 
           for National Guard and Reserve members
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that would provide 
     for implementation of the Yellow Ribbon Reintegration Program 
     for members of the National Guard and Reserve, provided such 
     legislation is deficit-neutral over the total of 2008-2013.
       Sec. 322. Reimbursing states for costs of housing 
           undocumented criminal aliens
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that would reimburse 
     states and local governments for costs incurred to house 
     undocumented criminal aliens, provided such legislation is 
     deficit-neutral over the total of 2008-2013 and 2008-2018.

[[Page H4266]]

       Sec. 323. Acceleration of phased-in eligibility for 
           concurrent receipt of benefits
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that would change 
     the date from December 31, 2013, to September 30, 2008, by 
     which eligibility of members of the Armed Forces for 
     concurrent receipt of retired pay and veterans' disability 
     compensation would be fully phased in, provided such 
     legislation is deficit-neutral over the total of 2008-2013 
     and 2008-2018.
       Sec. 324. Increased use of recovery audits
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that would achieve 
     savings by requiring agencies to increase their use of 
     recovery audits and use those savings to reduce the deficit, 
     provided such legislation would not increase the deficit over 
     the total of 2008-2013 or 2008-2018.
       Sec. 325. Food safety
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that would expand 
     FDA and Department of Agriculture food safety inspection 
     services, develop risk-based approaches to inspecting 
     domestic and imported food products, provide for 
     infrastructure and information technology systems to enhance 
     the safety of the food supply, expand scientific capacity and 
     training, invest in improved surveillance and testing 
     technologies, provide for foodborne illness awareness and 
     education, and enhance the FDA's recall authority, provided 
     such legislation is deficit-neutral over the total of 2008-
     2013 and 2008-2018.
       Sec. 326. Demonstration project regarding Medicaid coverage 
           of low-income HIV-infected individuals
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that would provide 
     for a demonstration project under which a state may apply to 
     provide medical assistance under a state Medicaid program to 
     HIV-infected individuals who are otherwise ineligible for 
     such medical assistance, provided such legislation is 
     deficit-neutral over the total of 2008-2013 and 2008-2018.
       Sec. 327. Reducing the income threshold for the refundable 
           child tax credit
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that would reduce 
     the income threshold for the refundable child tax credit to 
     $10,000 for 2009 and 2010 with no inflation adjustment, 
     provided such legislation is deficit-neutral over the total 
     of 2008-2013 and 2008-2018.
       Sec. 329. Education reform
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that would promote 
     flexibility in federal education programs, restore state and 
     local authority in education, ensure that public schools are 
     held accountable for results, and prevent discrimination 
     against homeschoolers, provided such legislation is deficit-
     neutral over the total of 2008-2013 and 2008-2018.
       Sec. 330. Processing naturalization applications
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that would provide 
     for adjudication of name check and security clearances by the 
     FBI or provide for adjudication of applications, including 
     interviewing and swearing-in of applications by the 
     Department of Homeland Security/U.S. Citizenship and 
     Immigration Services by October 1, 2008, for individuals who 
     have submitted applications for naturalization before March 
     1, 2008, provided such legislation is deficit-neutral over 
     the total of 2008-2013 and 2008-2018.
       Sec. 331. Access to quality and affordable health insurance
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that would promote 
     choice and competition to drive down costs and improve access 
     to health care for all Americans without increasing taxes, 
     strengthen health care quality by promoting wellness and 
     empowering consumers with information on quality and cost, 
     protect Americans' economic security from catastrophic events 
     by expanding insurance options and improving health insurance 
     portability, and promote advanced research and development of 
     new treatments and cures, provided such legislation is 
     deficit-neutral over the total of 2008-2013 and 2008-2018.
       Sec. 332. 9/11 health program
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution if the HELP Committee reports 
     legislation to establish a program that includes medical 
     monitoring and treatment to address adverse health impacts 
     linked to the September 11, 2001 attacks, and if the HELP 
     Committee finds that previously spent World Trade Center 
     Health Program funds were used to provide screening, 
     monitoring, and treatment services and directly related 
     program support, provided such legislation is deficit-neutral 
     over the total of 2008-2013 and 2008-2018.
       Sec. 333. Banning Medicare Advantage and Medicare 
           prescription drug plan sales and marketing abuses
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that would limit 
     inappropriate or abusive marketing tactics by private 
     insurers and their agents offering Medicare Advantage or 
     Medicare prescription drug plans by enacting recommendations 
     agreed to by leaders of the health insurance industry on 
     March 3, 2008, provided such legislation is deficit-neutral 
     over the total of 2008-2013 and 2008-2018.
     Conference Agreement
       Title II of the conference agreement contains reserve 
     funds.
       Subtitle A: House reserve funds
       Subtitle A of the conference agreement contains the 
     following reserve funds that apply only in the House:
       Sec. 201. Deficit-neutral reserve fund for SCHIP 
     legislation (Sec. 301 of the House-passed resolution)
       Sec. 202. Deficit-neutral reserve fund for America's 
     veterans and servicemembers (Sec. 302 of the House-passed 
     resolution, as modified)
       Sec. 203. Deficit-neutral reserve fund for education 
     benefits for servicemembers, veterans, and their families 
     (Sec. 303 of the House-passed resolution, as modified)
       Sec. 204. Deficit-neutral reserve fund for infrastructure 
     investment (Sec. 304 of the House-passed resolution, as 
     modified)
       Sec. 205. Deficit-neutral reserve fund for renewable energy 
     and energy efficiency (Sec. 305 of the House-passed 
     resolution)
       Sec. 206. Deficit-neutral reserve fund for middle-income 
     tax relief and economic equity (Sec. 306 of the House-passed 
     resolution)
       Sec. 207. Deficit-neutral reserve fund for reform of the 
     alternative minimum tax (Sec. 307 of the House-passed 
     resolution)
       Sec. 208. Deficit-neutral reserve fund for higher education 
     (Sec. 308 of the House-passed resolution)
       Sec. 209. Deficit-neutral reserve fund for affordable 
     housing (Sec. 309 of the House-passed resolution)
       Sec. 210. Deficit-neutral reserve fund for Medicare 
     improvements (Sec. 310 of the House-passed resolution, as 
     modified)
       Sec. 211. Deficit-neutral reserve fund for health care 
     quality, effectiveness, and efficiency (Sec. 311 of the 
     House-passed resolution, as modified)
       Sec. 212. Deficit-neutral reserve fund for Medicaid and 
     other programs (Sec. 312 of the House-passed resolution, as 
     modified)
       Sec. 213. Deficit-neutral reserve fund for a 9/11 health 
     program (Sec. 332 of the Senate-passed resolution, as 
     modified)
       Sec. 214. Deficit-neutral reserve fund for trade adjustment 
     assistance and unemployment insurance modernization (Sec. 313 
     of the House-passed resolution)
       Sec. 215. Deficit-neutral reserve fund for county payments 
     legislation (Sec. 314 of the House-passed resolution)
       Sec. 216. Deficit-neutral reserve fund for San Joaquin 
     River restoration and Navajo Nation water rights settlements 
     (Sec. 315 of the House-passed resolution, as modified)
       Sec. 217. Deficit-neutral reserve fund for the National 
     Park Centennial Fund (Sec. 316 of the House-passed 
     resolution)
       Sec. 218. Deficit-neutral reserve fund for child support 
     enforcement (Sec. 317 of the House-passed resolution)
       Sec. 219. Deficit-neutral reserve fund for children and 
     families (Sec. 301(f) of the Senate-passed resolution, as 
     modified)
       Sec. 220. Reserve fund adjustment for revenue measures in 
     the House
       Last year, section 321 of the Conference Report to 
     accompany S. Con. Res. 21 created a reserve fund for 
     consideration of any revenue measure (including a conference 
     report) in the House. This section supersedes last year's 
     provision. It applies to revenue measures that would increase 
     the deficit or reduce the surplus in violation of the House 
     PAYGO rule and would reduce revenues below the revenue levels 
     for the period of fiscal years 2009 through 2013 as measured 
     against the Congressional Budget Office baseline used for 
     consideration of this concurrent resolution. The revenue 
     measure can become effective only upon certification by the 
     Secretary of the Treasury and the Director of the Office of 
     Management and Budget that any reduction in revenues for the 
     period comprising the fiscal years through 2013 will not 
     exceed the lesser of $340.570 billion or 80 percent of the 
     sum of the unified budget surplus for fiscal years 2012 and 
     2013, as estimated by them no earlier than October 1, 2009. 
     If this certification provision is not included in the 
     language of the measure, 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 Congressional 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 over the periods specified in the PAYGO rule, 
     notwithstanding any other provisions of this conference 
     agreement.
       Any measure, including a conference report, that is in 
     violation of the PAYGO rule and decreases revenues in fiscal 
     years 2009

[[Page H4267]]

     through 2013 below the CBO baseline for that period, would 
     have this additional point of order against it in the House, 
     unless the measure includes 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 on or after October 
     1, 2009, the Secretary of the Treasury and the Director of 
     the Office of Management and Budget project a unified budget 
     surplus for the fiscal years 2012 and 2013, estimate the 
     budgetary impact of this Act, and certify by a joint 
     communication, published in the Federal Register, that the 
     estimated reduction in revenues for the period comprising the 
     fiscal years through 2013 resulting from this Act (including 
     any amendments made by this Act) will not exceed the lesser 
     of $340.570 billion or 80 percent of the sum of the projected 
     unified surplus for fiscal years 2012 and 2013.

       Section 220 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.
       Subtitle B: Senate reserve funds
       Subtitle B of the conference agreement contains the 
     following reserve funds that apply only in the Senate:
       Sec. 221. Deficit-neutral reserve fund to strengthen and 
     stimulate the American economy and provide economic relief to 
     American families (Sec. 301 of the Senate-passed resolution, 
     as modified)
       Sec. 222. Deficit-neutral reserve fund for improving 
     education (Secs. 302 and 329 of the Senate-passed resolution, 
     as modified)
       Sec. 223. Deficit-neutral reserve fund for investments in 
     America's infrastructure (Sec. 303 of the Senate-passed 
     resolution)
       Sec. 224. Deficit-neutral reserve fund to invest in clean 
     energy, preserve the environment, and provide for certain 
     settlements (combines provisions from Sec. 304 and Sec. 311 
     of the Senate-passed resolution, as modified)
       Sec. 225. Deficit-neutral reserve fund for America's 
     veterans and servicemembers (Sec. 305(a) of the Senate-passed 
     resolution, as modified)
       Sec. 226. Deficit-neutral reserve fund for education 
     benefits for servicemembers, veterans, and their families 
     (Sec. 305(b) of the Senate-passed resolution, as modified)
       Sec. 227. Deficit-neutral reserve fund to improve America's 
     health (Secs. 306, 315, and 333 of the Senate-passed 
     resolution, as modified)
       Sec. 228. Deficit-neutral reserve fund for reform of the 
     alternative minimum tax (Sec. 309 of the Senate-passed 
     resolution, as modified)
       Sec. 229. Deficit-neutral reserve fund for judicial pay and 
     judgeships (Sec. 308 of the Senate-passed resolution)
       Sec. 230. Deficit-neutral reserve fund for immigration 
     enforcement and reform (replaces Secs. 312, 313, 316, 322, 
     and 330 of the Senate-passed resolution)
       Sec. 231. Deficit-neutral reserve fund for science parks 
     (Sec. 314 of the Senate-passed resolution, as modified)
       Sec. 232. Deficit-neutral reserve fund to terminate 
     deductions from mineral revenue payments to States (Sec. 317 
     of the Senate-passed resolution, as modified)
       Sec. 233. Deficit-neutral reserve fund for increased used 
     of recovery audits (Sec. 324 of the Senate-passed resolution)
       Sec. 234. Deficit-neutral reserve fund for food safety 
     (Sec. 325 of the Senate-passed resolution, as modified)
       Sec. 235. Deficit-neutral reserve fund for demonstration 
     project regarding Medicaid coverage of low-income HIV-
     infected individuals (Sec. 326 of the Senate-passed 
     resolution)
       Sec. 236. Deficit-neutral reserve fund for reducing the 
     income threshold for the refundable child tax credit, and 
     other selected tax relief policies (Sec. 327 of the Senate-
     passed resolution, as modified)
       Sec. 237. Deficit-neutral reserve fund for a 9/11 health 
     program (Sec. 332 of the Senate-passed resolution, as 
     modified)
       Throughout this subtitle, the use of the word ``limits'' 
     refers to the discretionary spending limits in the Senate.

                           BUDGET ENFORCEMENT

       The House and the Senate use enforcement provisions to 
     ensure that legislation is consistent with the budget plan 
     set forth in the budget resolution. The conference agreement 
     contains enforcement provisions for the House and Senate to 
     accommodate the procedures that apply to consideration of 
     legislation in each chamber. Other provisions applicable in 
     both the House and Senate are included in Subtitle C.
     House-passed Resolution
       Sec. 401. Program Integrity Initiatives
       Section 401 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 in-person 
     reemployment and eligibility assessments and 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 to 
     promote 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.
       Sec. 402. Oversight of Government Performance
       Section 402 directs Committees of the House of 
     Representatives to review programs within their jurisdiction 
     for waste, fraud, and abuse and to include recommendations 
     for improved governmental performance in views and estimates 
     submitted to the Budget Committee pursuant to section 301(d) 
     of the Congressional Budget Act.
       Sec. 403. Advance Appropriations
       Section 403 limits the amount and type of advance 
     appropriations for fiscal years 2010 and 2011. Under this 
     section, advance appropriations for fiscal year 2010 are 
     restricted to $27.558 billion for the programs, projects, 
     activities, or accounts to be included in the joint 
     explanatory statement of managers to accompany the conference 
     report on this resolution. Advances for 2011 are listed 
     separately. The section defines advance appropriations as any 
     new discretionary budget authority provided in a bill or 
     joint resolution making general or continuing appropriations 
     for fiscal year 2009 that first becomes available for any 
     fiscal year after 2009.
       Sec. 404. Overseas Deployments and Emergency Needs
       Section 404 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 
     discretionary appropriations and designates those amounts as 
     necessary to meet emergency needs.
       Sec. 405. Budgetary Treatment of Certain Discretionary 
           Administrative Expenses
       Section 405 provides that administrative expenses of the 
     Social Security Administration and of the Postal Service 
     shall be part of the annual appropriations process by 
     including those expenses in the allocation to the Committee 
     on Appropriations pursuant to section 302 of the 
     Congressional Budget Act.
       Sec. 406. Application and Effect of Changes in Allocations 
           and Aggregates
       Section 406 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.
       Sec. 407. Adjustments to Reflect Changes in Concepts and 
           Definitions
       Section 407 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. 408. Exercise of Rulemaking Powers
       Section 408 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.
     Senate-passed Resolution
       The FY2008 budget resolution (S. Con Res. 21, 110th 
     Congress) included many important enforcement provisions 
     which remain in effect in the Senate. These include:
      The Senate pay-as-you-go point of order (Sec. 201), 
     requiring that new mandatory spending and tax cuts be offset 
     or get 60 votes. The Senate-passed resolution assumed that 
     all existing balances on the Senate pay-as-you-go ledger 
     would be eliminated, and the scorecard reset to zero for 
     2008-2013 and 2008-2018;
      The 60-vote point of order against reconciliation 
     increasing the deficit (Sec. 202);
      The 60-vote point of order against emergency 
     designations (Sec. 204);

[[Page H4268]]

      Continued 60-vote enforcement of Senate budgetary 
     points of order (Sec. 205); and
      The requirement that the discretionary 
     administrative expenses of the Social Security Administration 
     be included in the Appropriations Committee's 302(a) 
     allocation in any budget resolution (Sec. 210).
       The Senate-passed resolution for 2009, S. Con. Res. 70, 
     included the following enforcement provisions, most of which 
     updated provisions that were part of the 2008 budget 
     resolution.
       Subtitle A--Direct Spending and Receipts
       Sec. 201. Point of order against legislation increasing 
           long-term deficits
       The Senate-passed resolution included a point of order in 
     the Senate against legislation that would cause a net deficit 
     increase (including changes in revenues and mandatory 
     spending, but excluding debt service) in any of the four 
     consecutive ten-year periods beginning with the first fiscal 
     year that is ten years after the budget year provided for in 
     the most recently-adopted budget resolution (for 2009 these 
     time periods would be 2019-2028, 2029-2038, 2039-2048, and 
     2049-2058). The point of order could be waived with 60 votes, 
     and it would sunset at the end of 2017.
       Sec. 202. Point of order--20 percent limit on new direct 
           spending in reconciliation legislation
       The Senate-passed resolution would create a 60-vote point 
     of order against provisions of any reconciliation legislation 
     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.
       Subtitle B--Discretionary Spending
       Sec. 211. Discretionary spending caps
       The Senate-passed resolution would strengthen fiscal 
     responsibility by establishing discretionary spending limits 
     for 2008 and 2009, and enforce them with a point of order in 
     the Senate that could only be waived with 60 votes. For 2008, 
     it provides a cap of $1,055.478 billion in budget authority 
     and $1,093.343 billion in outlays. For 2009, it sets a cap 
     of $1,008.482 billion in budget authority and $1,108.449 
     billion in outlays.
       As in past years, the Senate resolution would permit 
     adjustments to the discretionary spending limits in 2009 for 
     program integrity initiatives, such as Social Security 
     Administration continuing disability reviews (CDRs) 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 unemployment insurance improper payments 
     reviews at the Department of Labor. It also provides for 
     adjustments in 2008 and 2009 for the wars in Iraq and 
     Afghanistan, as well as adjustments in 2009 for comparative 
     effectiveness research at the Agency for Healthcare Research 
     and Quality (AHRQ).
       The Senate resolution also includes a program integrity cap 
     adjustment dedicated to reducing waste in defense 
     contracting. It allows the Chairman of the Budget Committee 
     to increase the discretionary spending cap by up to 
     $100,000,000 to accommodate legislation appropriating funding 
     for the Department of Defense for additional activities to 
     reduce waste, fraud, abuse, and overpayments in defense 
     contracting; achieve the legal requirement for the Pentagon 
     to submit auditable financial statements; subject contracts 
     performed outside the U.S. to the same requirements as those 
     performed domestically; or improve accounting for and 
     ordering of spare parts.
       Sec. 212. Advance appropriations
       As in past years, the Senate-passed resolution provided 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 2009, and 
     against appropriations in fiscal year 2010 bills that would 
     first become effective in any year after fiscal year 2010. It 
     would not apply against appropriations for the Corporation 
     for Public Broadcasting, nor 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 2009 and 2010 of up to $29.352 billion for the 
     following:


      ACCOUNTS IDENTIFIED FOR ADVANCE APPROPRIATIONS IN THE SENATE

       Labor, HHS:
       Employment and Training Administration
       Job Corps
       Education for the Disadvantaged
       School Improvement
       Children and Family Services (Head Start)
       Special Education
       Career, Technical, and Adult Education
       Financial Services and General Government: Payment to 
     Postal Service
       Transportation, Housing and Urban Development: Section 8 
     Renewals
       Sec. 213. Appropriations changes in mandatory programs 
           (ChIMPs) with net costs
       The Senate-passed resolution again included a 60-vote point 
     of order against any provision of appropriations legislation 
     that would have been estimated as affecting direct spending 
     or receipts if it were 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 would not apply against any ChIMPs that 
     were enacted in each of the three fiscal years prior to the 
     budget year. 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. 214. Treatment of Postal Service administrative 
           expenses
       The 2008 budget resolution included a provision, which 
     remains in effect, requiring that all budget resolutions 
     include the Administrative Expenses of the Social Security 
     Administration in the 302(a) allocations to the 
     Appropriations Committee. The Senate-passed resolution for 
     2009 included a new, similar requirement, that all budget 
     resolutions include the Administrative Expenses of the Postal 
     Service in the 302(a) allocations to the Appropriations 
     Committee.
       Subtitle C--Other Provisions
       Sec. 221. Application and effect of changes in allocations 
           and aggregates
       This section of the Senate-passed resolution details the 
     adjustment procedures required to accommodate legislation 
     provided for in this resolution, and requires adjustments 
     made to be printed in the Congressional Record. For purposes 
     of enforcement, the levels resulting from adjustments made 
     pursuant to this resolution will have the same effect as if 
     adopted in the levels of Title I of this resolution. The 
     Committee on the Budget of the Senate determines the 
     budgetary levels and estimates required to enforce budgetary 
     points of order, including those pursuant to this resolution 
     and the Congressional Budget Act of 1974.
       Sec. 222. Adjustments to reflect changes in concepts and 
           definitions
       This section of the Senate-passed resolution allows the 
     Chairman of the Committee on the Budget to adjust levels in 
     this resolution upon the enactment of legislation that 
     changes concepts or definitions.
       Secs. 223 and 224. Debt disclosure
       These sections reflected an amendment adopted in the Senate 
     Budget Committee regarding the levels of debt assumed in the 
     budget resolution and to require budget resolutions to 
     contain a debt disclosure section.
       Sec. 225. Exercise of rulemaking powers
       This section of the Senate-passed resolution recognizes 
     that the provisions of this resolution are adopted pursuant 
     to the rulemaking power of the Senate, and also recognizes 
     the Constitutional right of the Senate to change those rules 
     as they apply to the Senate.
       Sec. 226. Circuit breaker to protect Social Security
       This section 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.
     Conference Agreement
       Title III contains the following enforcement provisions:
       Subtitle A: House Enforcement Provisions
       Sec. 301. Program integrity initiatives and other 
     adjustments (Secs. 401 and 404 of the House-passed 
     resolution, as modified, and Sec. 211 (d) of the Senate-
     passed resolution, as made applicable in the House)
       Sec. 302. Point of order against advance appropriations 
     (Sec. 403 of the House-passed resolution, as modified)
       Accounts identified for advance appropriations in the 
     House:
     Advance Appropriations for Fiscal Year 2010:
       Employment and Training Administration
       Job Corps
       Education for the Disadvantaged
       School Improvement
       Children and Family Services (Head Start)
       Special Education
       Career, Technical and Adult Education
       Payment to Postal Service
       Tenant-based Rental Assistance
       Project-based Rental Assistance
     Advance Appropriations for Fiscal Year 2011:
       The Corporation for Public Broadcasting
       Subtitle B: Senate Enforcement Provisions
       The FY2008 budget resolution (S. Con Res. 21, 110th 
     Congress) included many important enforcement provisions 
     which remain in effect in the Senate. These include:
        The Senate pay-as-you-go point of order (Sec. 
     201), requiring that new mandatory spending and tax cuts be 
     offset or get 60 votes. The Senate-passed resolution assumed 
     that all existing balances on the Senate pay-as-you-go ledger 
     would be eliminated, and the scorecard reset to zero for 
     2008-2013 and 2008-2018;

[[Page H4269]]

        The 60-vote point of order against reconciliation 
     increasing the deficit (Sec. 202);
        The 60-vote point of order against emergency 
     designations (Sec. 204);
        Continued 60-vote enforcement of Senate budgetary 
     points of order (Sec. 205); and
        The requirement that the discretionary 
     administrative expenses of the Social Security Administration 
     be included in the Appropriations Committee's 302(a) 
     allocation in any budget resolution (Sec. 210).
       Sec. 311. Senate point of order against legislation 
     increasing long-term deficits (Sec. 201 of the Senate-passed 
     resolution, as modified)
       Sec. 312. Discretionary spending limits, program integrity 
     initiatives, and other adjustments (Sec. 211 of the Senate-
     passed resolution, as modified)
       Sec. 313. Point of order against advance appropriations 
     (Sec. 212 of the Senate-passed resolution, as modified)
       Accounts identified for advance appropriations in the 
     Senate:
       Labor, HHS:
       Employment and Training Administration
       Job Corps
       Education for the Disadvantaged
       School Improvement
       Children and Family Services (Head Start)
       Special Education
       Career, Technical, and Adult Education
       Financial Services and General Government: Payment to 
     Postal Service
       Transportation, Housing and Urban Development:
       Tenant-based Rental Assistance
       Project-based Rental Assistance
       Sec. 314. Senate point of order against provisions of 
     appropriations legislation that constitute changes in 
     mandatory programs with net costs (Sec. 213 of the Senate-
     passed resolution, as modified)
       Sec. 315. Senate point of order against legislation 
     increasing short-term deficit
       This section creates a point of order in the Senate against 
     legislation other than appropriations measures that would 
     increase the on-budget deficit by more than $10 billion in 
     any year covered by the budget resolution, unless the 
     legislation is fully offset over the total of all of the 
     years covered by the budget resolution. Its purpose is to 
     complement paygo, by requiring that any measure with a cost 
     of over $10 billion in any year be paid for over the budget 
     window. The point of order can be waived only with 60 votes. 
     Like paygo and other Senate points of order, it will remain 
     in place until September 30, 2017.
       Subtitle C: Other Provisions
       Sec. 321. Oversight of government performance (Sec. 402 of 
     the House-passed resolution and Sec. 211(d) of the Senate-
     passed resolution, as modified)
       Sec. 322. Budgetary treatment of certain discretionary 
     administrative expenses (Sec. 405 of the House-passed 
     resolution and Sec. 214 of the Senate-passed resolution, as 
     modified)
       Sec. 323. Application and effect of changes in allocations 
     and aggregates (Sec. 406 of the House-passed resolution and 
     Sec. 221 of the Senate-passed resolution, as modified)
       Sec. 324. Adjustments to reflect changes in concepts and 
     definitions (Sec. 407 of the House-passed resolution and Sec. 
     222 of the Senate-passed resolution, as modified)
       Sec. 325. Exercise of rulemaking powers (Sec. 408 of the 
     House-passed resolution and Sec. 225 of the Senate-passed 
     resolution, as modified)

                                 POLICY

     House-passed Resolution
       Title V of the House-passed resolution contains the 
     following policy sections:
       Sec. 501. Policy on middle-income tax relief
       Sec. 502. Policy on defense priorities
     Senate-passed Resolution
       Unlike Title V of the House-passed resolution, the Senate 
     resolution did not contain a policy statement title.
     Conference Agreement
       Title IV of the conference agreement contains the following 
     policy sections:
       Sec. 401. Policy on middle-income tax relief
       Sec. 401 applies only in the House.
       The policy of the Senate with regard to middle-income tax 
     relief is as follows:
       The Senate adopted by a vote of 99 to 1 an amendment to S. 
     Con. Res. 70 as reported by the Senate Committee on the 
     Budget which, with regard to tax relief, reduced the revenue 
     aggregates by $340.570 billion to provide for--
       (A) extension of the child tax credit;
       (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) tax relief for America's troops and veterans;
       (H) property tax relief for homeowners;
       (I) expansion of the availability of the child tax credit 
     for low-income families;
       (J) relief for those whose homes were damaged or destroyed 
     by Hurricanes Katrina and Rita; and
       (K) other, unspecified tax relief.
       It is the policy of the Senate that this resolution 
     supports both the enactment of the policies listed above and 
     the Senate pay-as-you-go rule in section 201 of the FY2008 
     budget resolution (S. Con Res. 21, 110th Congress), 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
       Sec. 402 applies in both the House and the Senate.

                SENSE OF THE HOUSE, SENATE, AND CONGRESS

     House-passed Resolution
       Title VI of the House-passed resolution contains the 
     following Sense of the House sections:
       Sec. 601. Sense of the House on the Innovation Agenda and 
     America COMPETES Act
       Sec. 602. Sense of the House on servicemembers' and 
     veterans' health care and other priorities
       Sec. 603. Sense of the House on homeland security
       Sec. 604. Sense of the House regarding long-term fiscal 
     reform
       Sec. 605. Sense of the House regarding waste, fraud, and 
     abuse
       Sec. 606. Sense of the House regarding extension of the 
     statutory pay-as-you-go rule
       Sec. 607. Sense of the House on long-term budgeting
       Sec. 608. Sense of the House regarding the need to maintain 
     and build upon efforts to fight hunger
       Sec. 609. Sense of the House regarding affordable health 
     coverage
       Sec. 610. Sense of the House regarding pay parity
       Sec. 611. Sense of the House regarding subprime lending and 
     foreclosures
       Sec. 612. Sense of the House regarding the importance of 
     child support enforcement
     Senate-passed Resolution
       Title III of the Senate-passed resolution contains the 
     following Sense of the Senate sections:
       Sec. 307. Sense of the Senate regarding Medicaid 
     administrative regulations
       The Senate-passed resolution expresses the sense of the 
     Senate that administrative regulations should not undermine 
     Medicaid's role as a critical component of health care in the 
     United States, cap Medicaid spending or otherwise shift 
     Medicaid cost burdens to state or local governments and their 
     taxpayers and health providers, or undermine the federal 
     guarantee of health insurance coverage that Medicaid 
     provides.
       Sec. 328. Sense of the Senate regarding diversion of funds 
     set aside for USPTO
       The Senate-passed resolution expresses the sense of the 
     Senate that none of the funds recommended by this resolution 
     or appropriated or otherwise made available under any other 
     Act to the U.S. Patent and Trademark Office shall be 
     diverted, redirected, transferred, or used for any purpose 
     other than that for which the funds were intended.
       Sec. 334. Sense of the Senate regarding ``moving to work 
     agreement''
       The Senate-passed resolution expresses the sense of the 
     Senate that the Philadelphia Housing Authority should be 
     granted a one-year extension of its ``Moving to Work 
     Agreement'' with the U.S. Department of Housing and Urban 
     Development.
       Sec. 335. Sense of the Senate regarding balanced budget 
     amendment to the Constitution of the United States
       The Senate-passed resolution expresses the sense of the 
     Senate that a balanced budget amendment to the Constitution 
     should be voted on at the earliest opportunity.
       Sec. 336. Sense of the Senate regarding comprehensive 
     legislation to legalize importation of prescription drugs 
     from highly-industrialized countries with safe pharmaceutical 
     infrastructures
       The Senate-passed resolution expresses the sense of the 
     Senate in support of Senate consideration of comprehensive 
     legislation to legalize the importation of prescription drugs 
     from highly-industrialized countries with safe pharmaceutical 
     infrastructures and create a regulatory pathway to ensure 
     such drugs are safe.
     Conference Agreement
       Title V of the conference agreement contains the following 
     sense of the Senate and Congress provisions:
       Subtitle A: Sense of the Senate
       Sec. 501. Sense of the Senate regarding Medicaid 
     administrative regulations
       Subtitle B: Sense of the Congress
       Sec. 511. Sense of the Congress on servicemembers' and 
     veterans' health care and other priorities
       Sec. 512. Sense of the Congress on homeland security
       Sec. 513. Sense of the Congress regarding long-term fiscal 
     reform
       Sec. 514. Sense of the Congress regarding waste, fraud, and 
     abuse
       Sec. 515. Sense of the Congress regarding extension of the 
     statutory pay-as-you-go rule
       Sec. 516. Sense of the Congress on long-term budgeting
       Sec. 517. Sense of the Congress regarding affordable health 
     coverage
       Sec. 518. Sense of the Congress regarding pay parity
       Sec. 519. Sense of the Congress regarding subprime lending 
     and foreclosures
       Sec. 520. Sense of the Congress regarding the need to 
     maintain and build upon efforts to fight hunger
       Sec. 521. Sense of the Congress regarding the importance of 
     child support enforcement
       Sec. 522. Sense of the Congress on the Innovation Agenda 
     and America COMPETES Act

[[Page H4270]]

                          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, as updated in March 2008 to 
     include the forecasted economic effects of the fiscal 
     stimulus package.
     House-passed Resolution
       CBO's economic assumptions were used.

                        Senate-passed Resolution

       CBO's economic assumptions were used.

                          Conference Agreement

       CBO's economic assumptions were used.

                                  ECONOMIC ASSUMPTIONS OF THE BUDGET RESOLUTION
                                                [Calendar Years]
----------------------------------------------------------------------------------------------------------------
                                                                   2008    2009    2010    2011    2012    2013
----------------------------------------------------------------------------------------------------------------
Real GDP, Percent Change, Year Over Year........................     1.9     2.3     3.9     3.6     2.7     2.6
GDP Price Index, Percent Change, Year Over Year.................     1.8     1.7     1.9     1.9     1.9     1.9
Consumer Prices, Percent Change, Year Over Year.................     2.8     1.9     1.9     2.1     2.2     2.2
Unemployment Rate, Percent, Yearly Average......................     5.2     5.5     5.1     4.8     4.8     4.8
3-Month Treasury Bill Rate, Percent, Yearly Average.............     2.1     2.4     4.4     4.6     4.7     4.7
10-Year Treasury Bond Rate, Percent, Yearly Average.............     3.6     3.8     5.0     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 XXVIII

       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 XXVIII, 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 $10,615,000,000,000.
       Legislative jurisdiction over the public debt remains with 
     the Finance Committee in the Senate and the Committee on Ways 
     and Means in the House.

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

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

                          ____________________