[Congressional Record (Bound Edition), Volume 154 (2008), Part 18]
[Senate]
[Pages 24116-24138]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Ms. MIKULSKI (for herself, Mr. Bond, Mr. Levin, and Ms. 
        Stabenow):
  S. 3684. A bill to amend the Internal Revenue Code of 1986 to allow 
an above-the-line deduction against individual income tax for interest 
in indebtedness and for State sales and excise taxes with respect to 
the purchase of certain motor vehicles; to the Committee on Finance.
  Ms. MIKULSKI. Mr. President, our economy is in shambles. People are 
losing their jobs, they are losing their life savings, and they are 
losing their homes. Congress must act and we must act now.
  I agree with the Senator from Pennsylvania, Mr. Specter, that this 
session of the Congress and this session of the Senate should not be 
called a lameduck. We should neither be lame nor should we duck the big 
issue facing our country. We have helped out. If you look at what we 
have done already--well, we have already done a bailout. We helped the 
sharks and we helped the whales. Now it is time to help the minnows, 
the little guy and gal, the American consumer.
  I have that solution. Today, I introduce legislation, cosponsored by 
my colleague from Missouri, to save jobs in the American automobile 
industry, to help consumers, and get our economy back on track. It is 
simple, it is straightforward, and it is bipartisan. It is also timely 
and temporary.
  My bill would save jobs. What is it that I want to do? I want to 
stimulate demand in the automobile industry so people actually come 
into showrooms and buy cars, minivans, or light trucks. Why is this a 
good idea? Actually, if you buy a car, someone has to make it, someone 
has to sell it, someone has to service it, and someone has to provide 
administrative services. This is good for manufacturers, the dealers, 
and the suppliers. It could save considerable jobs in the auto 
industry.
  My bill is not about bailouts. It is about jobs, jobs, jobs. Six 
million jobs are at stake in the American car industry. One out of ten 
jobs in America relies on the auto industry. Right now, the facts are 
gloomy. Sales are down. The auto industry has already cut over 100,000 
jobs. The 30,000 American dealerships in this country are at risk of 
losing 37,000 jobs. We cannot let this happen. We cannot let the 
American automobile industry implode.
  I believe we can help by getting the consumers into the showroom, 
have them feel that Government is on their side in helping them with 
one of the biggest purchases during this tough time.
  What does this amendment do? My bill is simple. If you buy a 
passenger car, minivan, or light truck between November 12 of this year 
and December 31 of 2009, you will get a tax deduction for your sales or 
excise tax and the interest on your loan. Families can save anywhere 
from $2,000 to $5,000 by the Mikulski-Bond bill.
  This is a big deal because, next to the purchase of your home, the 
purchase of your automobile is your next big ticket.
  It is targeted. I cap it at families with an income of over $250,000 
a year. It focuses on the middle-income and the middle-class family 
cars. It is also timely because we need to know that the biggest 6-week 
period for automobile sales is between Thanksgiving and New Year's Eve. 
They sell other cars during 6-week periods, but between Thanksgiving 
and New Year's Eve is the biggest 6-week sale. This bill also helps the 
environment because it gets more people in more fuel-efficient cars.
  This bill is not limited to only American cars. It focuses on any 
car, recognizing that many automobiles are now made in southern States, 
as Texas does Toyotas; Kentucky does Toyotas; Tennessee does Nissans. 
Any way we look at it, even though it might have a foreign logo, it is 
American jobs doing the manufacturing.
  What would this mean? I have here a chart--it is bigger than me--for 
a Dodge minivan. The average minivans cost about $25,500.
  On a 4-year loan at an 8 percent excise tax, it would result in a 
savings of anywhere, depending on the State, from $1,500 to $2,000.
  I have already heard from people all over this country how that, plus 
the deals being offered by manufacturers and dealers, could result in 
being able to buy a minivan for under $20,000 a year.
  This would be fantastic. I could put up chart after chart for the 
Malibu, for the Ford pickup 150, for the Toyota Camry. This would 
stimulate demand. Just think what it means. People could come into a 
showroom of their choice, and if we passed this bill--it would be 
retroactive to the day I announced they could actually buy something 
that would put them on the road with a car that is more fuel efficient 
with lower carbon emissions.
  At the same time, jobs, jobs, jobs. As I said, there are 30,000 new 
car dealerships nationwide. They employ close to 1 million people. In 
my own home State there are 300 dealerships. People do not realize that 
dealers in many rural parts of my State usually employ over 50 people 
in sales, the auto mechanics, as well as the administrative positions. 
This legislation would help them because they would actually be 
working. It would help the people who are actually making those.
  Senator Specter said he has been traveling the State. I have been 
traveling mine too. I went to the General Motors plant in Maryland at 
White Marsh where they make the new power transmission. Right now they 
can make a Tahoe hybrid, a Tahoe, a big muscle car, that with the 
hybrid technology they have now, can get the same mileage as a Toyota 
Camry.
  If you also talk to the people who worked there, they could employ 
1,000; they now employ 250 people. If you were with me in the car 
dealership and would talk to people such as the mechanic--I talked to a 
mechanic who works for a Chevy dealer in Bethesda. He has worked there 
for 23 years.
  He said to me: Senator Barb, all my life I have loved to work on 
cars. I just love it. I love to fix them; I love to repair them. If 
they are new, I want to make sure they are fit for duty. I have earned 
a good living. I have been happy. I think I have helped make a lot of 
other people happy. But the only way I can stay happy is if I continue 
to work. I have a mortgage. I have two kids in college. Maybe they are 
going to go into engineering, I do not know, but I know if we do not 
get more people into this dealership my job could be gone.
  Talk to the dealer. The dealer's name is Sam. The first thing you 
know about him is he wears the little Rotary pin on his lapel because 
he is the guy who not only provides jobs, tries to provide good deals 
to customers, but also is the one who is part of the Chamber of 
Commerce, part of the United Way.

[[Page 24117]]

  We are talking about people who are part of the fabric of our 
society. We are not talking about an abstraction. We are not talking 
about a single ZIP code like Wall Street. We are talking about the 
automobile industry in every State and every community. So when we help 
them, we are helping ourselves.
  People say: what is the cost of this, Senator Barb? Well, I will tell 
you. It is about $8 billion. They go: Oh, well, we just spent $350 
billion and threw it down the rat hole. We do not have anything to show 
for this $350 billion but more arrogance and more greed. While they 
want Americans to dine on Lean Cuisine, they are dining on spa cuisine.
  So I think it is time we help people in our own community, help the 
consumers who want to participate in the economy. Clunkers get traded 
in, and we also help them. Maybe you know somebody who works for a 
hedge fund, I do not. But I do know the people who work for the 
automobile industry--whether it is the dealers or the receptionist who 
came to work 43 years ago right out of high school who said: Senator 
Barb, we could not sell cars in those days, but I have been here in and 
out of this same dealer for 43 years, raised my kids, earned a good 
living, did the back office work. I want to keep on doing it. I am not 
ready for Social Security, and, for God's sake, do not put it in Wall 
Street.
  Well, I say do not put Social Security on Wall Street and do not put 
another nickel on Wall Street. If we are going to help with our 
economy, let's do it where it creates jobs.
  I wanted to explain the bill I have introduced today that I am going 
to bring up as part of our economic recovery plan on Wednesday. But 
most of all, what I wanted to say is, the Congress should not go home 
until we see how we are going to help this economy get rolling.
  I think my bill which has been cosponsored by Senator Bond puts 
wheels on the American economy, and I hope I have victory on it later 
this week.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Missouri is recognized.
  Mr. BOND. Mr. President, it is a real pleasure to join and partner 
with my good friend, Senator Mikulski, on this initiative to save 
American jobs, help American families, support the auto industry, as 
she has just said, and put America back on wheels.
  During those tough economic times, we believe this proposal will help 
American families afford the cars, small trucks, and SUVs they need to 
get to work, to take their kids to school, and encourage investment 
needed to boost auto sales which will help save American jobs, help 
middle-class families, and support the auto industry.
  Selling cars, again, is one of the most important things we can do 
for the entire auto industry, by encouraging now tentative buyers who 
are worried about making the payments to go ahead and purchase. This is 
the best way to get our auto industry back to work and provide the jobs 
people need.
  In my home State of Missouri and throughout the Nation car sales have 
declined sharply in recent months, and there will likely be a further 
decline as the economy struggles. Cars and trucks are one of the 
largest purchases for households. Most rely on some kind of financing 
to acquire the vehicles.
  By making interest payments and sales and excise taxes deductible, 
this program will help middle-class families afford the cars, SUVs, and 
light trucks they need to get to work and take their kids to school. 
This should mean real savings to middle-class families who are 
struggling to pay a mortgage or rent, buy groceries, and afford health 
care.
  This proposal also helps the struggling auto industry and millions of 
jobs that are dependent on them: auto suppliers, steel and glass 
manufacturers, and the car dealers.
  There are closing car dealerships in Missouri. They are shutting 
their doors, laying off workers, cutting jobs. Others are facing real 
squeezes. They, too, may be facing this same crisis if they do not get 
people purchasing cars.
  With our economy shedding hundreds of thousands of jobs over the past 
several months, it is critical that we act now to prevent further 
losses to an industry that touches the entire Nation.
  Now, in addition to this tax proposal, I think we must take action to 
provide bridge loan financing to Detroit's big three auto companies. 
The idea of getting Government involved in the free market is 
troublesome and potentially dangerous to the health of our system, but 
I strongly believe we have to act in unique times of crisis when 
millions of workers are in danger of losing their jobs. We are clearly 
in this unique crisis. We are experiencing a crisis unparalleled since 
the Great Depression.
  It is for that reason that I will not turn my back on hundreds of 
thousands of Missouri jobs. Now is the time to act. Unlike many other 
industries, the auto industry touches, as I said, millions of 
manufacturing and servicing jobs across the Nation.
  Over 100,000 auto workers are in assembly plants, more than 1 million 
workers are at auto dealerships in every State, over 300,000 workers 
are in the wholesale end of the auto industry, over 800,000 workers 
work in auto repair, and over 500,000 workers are in auto parts plants.
  These autoworkers are not just in big cities such as Detroit. 
Autoworkers are found supporting families in small- and medium-sized 
communities across rural America.
  In my home State of Missouri, small towns such as Maryville in 
northwest Missouri have 10,000 people, and 1,800 families depend upon 
the 200 workers at the Federal-Mogul plant. They are making steering 
systems. Closing that plant will be a tough blow to the Maryville 
community dependent upon it.
  We have 500 jobs at the Dura plant in Moberly, 400 at the Gates plant 
in Versailles, 170 at the Modine plant in Joplin. On and on it goes, 
like a long list of just about every Missouri small- and medium-sized 
town. We cannot afford to pull the plug on the manufacturing backbone 
of rural America.
  These auto-dependent jobs, whether they are union or not--and many 
are not--provide very good wages. They are manufacturing jobs that 
support middle-class families. They provide health care benefits for 
families, retirement for the elderly, and a couple weeks of paid 
vacation. Without these blue-collar jobs, many of these middle-class 
families would slip back into lower incomes with no health care, little 
hope for college, and an uncertain future. We have to fight for working 
people and their jobs and not allow their employers to go under.
  Despite the real need for temporary emergency assistance to save jobs 
in Missouri and across the country, I do not support a blank check from 
the Government. I want to make sure we are not simply throwing good 
money after bad. It is critical that any rescue include three basic 
principles: First, the bill must have strong taxpayer protection. This 
means any bill must ensure that taxpayers are repaid for their 
emergency assistance and that taxpayers share in the turnaround profits 
of participating automakers.
  Second, the bill must include executive accountability so that failed 
executives are not rewarded for poor management. I do not know about 
you, but I am offended when I read in the paper that companies getting 
Federal bailout money are using it to pay bonuses. Some of them said 
they have already set the bonuses aside. Well, if they set the bonuses 
aside, they set them aside as their company was going down. Getting 
money from the Federal Government should not enable them to make those 
bonus payments.
  I have seen one major Wall Street firm saying it is going to stop 
bonuses until this crisis is over. I think that is something we should 
commend. I think that is a practice that ought to be followed.
  Third, and most important--and this is key--the bill must include 
significant financial reform so that recipients of taxpayer funds 
demonstrate that they have a plan to ensure long-term competitiveness, 
health, and profitability by bringing their costs under control.
  Funds should be conditioned on a strong restructuring plan for the 
industry and for each recipient to have funds so that this aid is a 
bridge to somewhere, not a bridge to nowhere. That is

[[Page 24118]]

why I need to emphasize the need for a real financial strategy that 
will put the Detroit big three on the road to competitiveness, health, 
and profitability.
  I believe we ought to set up a system where a responsible Government 
agency, a Secretary-level official, has to approve the continuing 
plans, the goals, the definable standards that must be met, and that 
official ought to hold them accountable for accomplishing the purposes, 
cutting the costs, and making the tough business decisions that are 
necessary to assure profitability.
  Well, these are things I believe most of my colleagues want to see. I 
do not believe anybody wants to see the auto industry go down. But 
there is real concern that if we put in some money now, we may be back 
seeing them in the same condition several months down the road.
  Well, the time has come for the auto industry to lay out for 
Government officials in their ability to approve the release of these 
funds if they have a plan. And as they go forward, they ought to be 
required to show the approving official that they are taking those 
steps that are necessary to make their plants and their companies 
profitable.
  Some ask: Why don't we just allow the automakers to fall into 
bankruptcy like some in the airline industry? We all know bankruptcy 
has successfully allowed many airlines to get back in the air. I am 
afraid it would be a disaster for the thousands of parts and service 
businesses dependent on major automakers. How would they get credit to 
run their operations to supply a company in bankruptcy? How would the 
bankrupt company in the current crisis get the credit it needs to 
emerge from bankruptcy? Who is going to buy a car from a bankrupt 
company? What protections would they have for their warranties and 
other requirements they have for servicing?
  Others say a financial rescue has no place in the free market. I 
agree that generally that is a good question. But even free markets 
need oversight and a safety net. That is why we have the Federal 
Reserve, the Securities and Exchange Commission, and the Federal 
Deposit Insurance Corporation. Each of these agencies is designed to 
take emergency actions in times of emergency. Clearly, that is what we 
have. That is why we should respond now.
  There have been a lot of discussions on the source of funding for the 
auto industry, whether it should come out of the Treasury's Troubled 
Asset Relief Program, or TARP, or the Department of Energy's Section 
136 program. I am pleased to see that there seems to be broad support 
for assisting the auto industry despite the differences in funding. I 
support either or both of these measures of support, provided we meet 
the conditions I laid out which include significantly laying out a plan 
to profitability, cost cutting that will be approved and then will be 
monitored by the appropriate Government official who has the power to 
continue to release the funds.
  I will discuss in other remarks how the TARP has changed in purpose 
from what we were told it would be. It has continued to change. I am 
afraid it has caused a great deal of uncertainty, which, obviously, 
markets do not like. But before closing, I wish to suggest an area 
where there is great need and where I believe the funds under the 
Troubled Asset Relief Program can and should be used to give the 
economy a major boost, creating the jobs we badly need, and that is in 
State and local government infrastructure.
  Despite the Government's efforts to thaw the credit crunch, State and 
local governments continue to face hardships in municipal bond 
financing. People were telling me, once we got the money into the 
banks, credit would loosen up and municipal bonds could be sold. So 
far, we are not seeing that. State and local bond and debt financing is 
still a problem. In Missouri and throughout the Nation, many 
infrastructure projects are being delayed or scaled back due to credit 
problems, the inability to get credit, and they have not faced it in 
many years.
  Even State and local governments with high credit ratings are 
struggling to obtain affordable financing. In Missouri, for example, we 
have some $800 million approved in debt to rebuild our bridges. The 
city of Kansas City, MO, has $200 million it is ready to spend on its 
water and sewer infrastructure. The St. Louis Airport is badly in need 
of funding for $100 million in upgrades to facilitate commerce and 
continue to provide jobs. I believe the funds should be used to 
purchase those portions of those debts that can be used to put people 
to work in 2009. Not all of the $800 million on fixing bridges is going 
to be spent in 1 year, but there should be a reasonable judgment as to 
how much work can be started when construction season begins in the 
spring.
  We ought to be willing to have the Federal Government provide the 
funding and get the debt issuance in return, which, if they fund it at 
the current going rate for debt with the Federal Government, should be 
a no-cost ultimate cost to the taxpayer or an addition to the debt. But 
what these infrastructure jobs will do right now is provide work so 
that working men and women will be able to do things such as buy cars, 
provide for their families, spend the money to get the economy growing 
again.
  I urge Treasury to consider assisting the municipal bond market 
through the TARP program. It will not only boost infrastructure 
investments, build the critical infrastructure we need to make our 
economy go forward, but it will create jobs. As has been said many 
times before by people a lot smarter than I, a good job is the best 
social policy we have. A good job is the basis of the economy.
  What we are advocating today in the bill I cosponsored with Senator 
Mikulski is a way to get cars sold so they will create jobs all up and 
down the chain in the auto industry and provide a bridge to somewhere 
for the future of the auto industry so they will get their costs under 
control, keep them out of bankruptcy, and make the changes that are 
needed to be competitive in the national and the world market.
  I urge my colleagues to join with us in the legislation by Senator 
Mikulski and also in pushing to use the TARP funds for investment in 
municipal bonds that will put people to work on infrastructure.
                                 ______
                                 
      By Mrs. FEINSTEIN (for herself and Mrs. Boxer):
  S. 3685. A bill to prohibit the selling and counterfeiting of tickets 
for a Presidential inaugural ceremony; to the Committee on Rules and 
Administration.
  Mrs. FEINSTEIN. Mr. President, I come to the floor as chairman of the 
Rules Committee and as chairman of the Joint House-Senate Inaugural 
Committee. I come to introduce legislation to prohibit the selling and 
counterfeiting of tickets to the President's inauguration ceremony.
  The inauguration of the President of the United States is one of the 
most important rituals of our democracy, and the chance to witness this 
solemn event should not be bought and sold similar to tickets to a 
football game. This is not a football game. This is a dignified and 
critical moment of transition in Government, a moment of which 
Americans have always been proud because it is, in fact, the strength 
of our democracy--the fact that all across this great land people go to 
the polls and elect the next President of the United States, they don't 
take to the streets, they don't take to weapons. They elect the next 
President of the United States.
  We have all read the news reports: Tickets bid on the Internet for 
$5,000 apiece, some going as high as $40,000 each. Internet sites today 
are selling tickets they do not have and will not have unless somehow, 
some way they obtain them. I find it unconscionable.
  These tickets are supposed to be free for people, for the volunteers 
who gave up their weekends, walking miles door to door to encourage 
voters to turn out at the polls on election day, for Members of the 
African-American community to see one of their own take the oath of 
office, the highest office in the land, for schoolchildren to witness 
history, and for the American public to watch this affirmation of our 
Constitution, this peaceful transition from one administration to 
another.

[[Page 24119]]

  This is going to be a major civic event of our time. Excitement is at 
an all time high, and every one of us has received more phone calls for 
tickets than we could possibly ever meet. People are desperate to 
become part of it, to touch it, to be around, to feel it, to listen to 
it, and they are coming from all over the country. We could have more 
than 1.5 million people descend on the Nation's Capital for this 
inauguration.
  Congress has the responsibility of overseeing this historic event. So 
we must ensure that the inauguration has all the respect and dignity it 
deserves.
  These tickets are supposed to be free for the people. No one should 
have to pay for them. Once more, these tickets are not yet even 
available. They will not be distributed to congressional offices until 
the end of the week before the inauguration. And then the offices will 
require in-person pickup, with secure identification. But they will be 
free and they should stay that way.
  I can tell you what I am going to do. We will ask people to pick up 
their tickets the day before the inauguration in my office. Everyone 
will submit their name, their address, and their driver's license. They 
must be who they are if there are tickets waiting for them. I believe 
this kind of procedure essentially deters unscrupulous people from 
selling these tickets on the Internet. No Web sites or other ticket 
outlets have inaugural swearing-in tickets to sell, despite what some 
of them claim.
  This legislation is aimed at stopping those who seek to profit by 
selling these tickets. It would also target those who seek to dupe the 
public with fraudulent tickets or those who merely promise but can't 
deliver on tickets that they do not actually have.
  I want to say one thing. We are working now to see if there is any 
creative way we might be able to secure more tickets for the House and 
the Senate. We have followed protocol with exactly the same 
distribution system that existed in prior inaugurals, but it is clear 
that there are not as many tickets as there are requests.
  Those who violate the law under this legislation, if in fact it 
passes, would face a class A misdemeanor with a substantial fine, 
imprisonment up to 1 year, or both. I am also very pleased to tell you, 
Mr. President, that eBay and StubHub announced last week that they will 
not allow the sale of inaugural swearing-in tickets on any of their Web 
sites. I want to take this opportunity to thank them and to commend 
them for leading the way.
  It is my hope that Congress will pass this legislation this week. I 
hope my colleagues will join me in supporting it on a hotline. I think 
it is very important to establish once and for all that tickets to the 
inauguration of the next President of the United States are not issues 
of commerce, they are free tickets to be given to the people.
  So I hope that this week this legislation can pass unanimously by 
this body. I send it to the desk and thank the Chair.
  The ACTING PRESIDENT pro tempore. The bill will be received and 
appropriately referred.
                                 ______
                                 
      By Mr. SPECTER:
  S. 3686. A bill to establish an Office of Foreclosure Evaluation to 
coordinate the responsibilities of the Department of the Treasury, the 
Department of Housing and Urban Development, the Federal Housing 
Administration, the Federal Housing Finance Agency, the Neighborhood 
Reinvestment Corporation, the Federal Deposit Insurance Corporation, 
the Board of Governors of the Federal Reserve System, and other Federal 
Government entities regarding foreclosure prevention, and for other 
purposes; to the Committee on Banking, Housing, and Urban Affairs.
  Mr. SPECTER. I am now introducing legislation captioned ``The 
Foreclosure Diversion and Mortgage Loan Modification Act of 2008.'' It 
would create an Office of Foreclosure Evaluation inside the Treasury 
Department, to coordinate a great many efforts. The core purpose of 
this legislation is to provide Federal endorsement and financial 
assistance for setting up programs such as those now in existence in 
Philadelphia and Pittsburgh, and similar programs which exist in New 
York, New Jersey, Ohio, and Connecticut, that suspend foreclosure until 
there has been an opportunity, under court supervision, to have the 
borrower and the lender sit down to try to work out a plan to avoid 
foreclosure. My full statement, which I will ask consent to place in 
the Record, goes into some great detail about the problems that exist 
at the present time regarding foreclosures.
  In addition to the legislation I am proposing, the Federal Deposit 
Insurance Corporation has proposed a program aimed at preventing an 
estimated 1.5 million foreclosures in the next year. I have talked to 
the FDIC Chairwoman Sheila Bair, and think her proposal is a good one. 
The legislation I am proposing and the program Chairwoman Bair has 
proposed would supplement legislation which is now pending in the 
Congress. Last October, Senator Durbin and I separately introduced 
bills that would permit mortgages to be modified by the bankruptcy 
courts. However, Senator Durbin's legislation would permit the court to 
modify the principal sum. I think that goes too far and would have the 
undesirable consequence of making it more difficult to obtain a 
mortgage in the future. My legislation authorizes the bankruptcy courts 
to modify interest rates on variable interest rate mortgages. In many 
cases, there was not full disclosure to borrowers who took out these 
loans. Then they found that their mortgage went from $1,200 a month, 
for illustrative purposes, to $2,000.
  It is my hope that Congress would stay in session beyond just this 
week. It seems to me the economic problems we faced last July, before 
we adjourned for the month of August, required our remaining in 
session; I urged the leaders of the Senate to keep the body in session 
during August. And, I urged the President to call the Congress back 
into session. It seems to me the problem of delinquent mortgages and 
foreclosures is critical at the moment. I noticed Senator Dodd was 
quoted in the Washington Post last Friday as saying he plans to 
introduce legislation and that he thought the FDIC proposal was a good 
one.
  We are finding so many people are facing the threat of foreclosure. 
This is an issue which ought to be considered further. Congress ought 
to stay in session, ought to work these issues through, and ought to 
remain in session long enough to consider the details necessary to make 
a rational judgment on the proposal of economic aid to General Motors 
and the other companies.
  I ask unanimous consent that the full text of my floor statement on 
the mortgage issue and the full text of the legislation be printed in 
the Record as if set forth in full on the Senate floor.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

    Floor Statement of Senator Arlen Specter on Introduction of the 
    Foreclosure Diversion and Mortgage Loan Modification Act of 2008

       Mr. President, I seek recognition today to introduce the 
     ``Foreclosure Diversion and Mortgage Loan Modification Act of 
     2008.'' The bill amends the recently passed Emergency 
     Economic Stabilization Act and the Housing and Economic 
     Recovery Act passed last July to ensure that more attention 
     and resources are given to the urgent need to prevent home 
     foreclosures and to stabilize the housing market.
       The bill creates an Office of Foreclosure Evaluation in the 
     Treasury Department. This Office will coordinate and foster 
     foreclosure prevention efforts of the Treasury Department, 
     the Federal Housing Finance Agency, the Federal Reserve, the 
     Federal Deposit Insurance Corporation, the Department of 
     Housing and Urban Development, and other federal agencies. 
     The Office will also support and collaborate in foreclosure 
     prevention efforts with state and local government agencies, 
     state and local courts, and community based non-profit 
     organizations, such as the State Foreclosure Prevention 
     Working Group.
       The current economic turmoil began with a housing market 
     collapse that has had devastating consequences across the 
     entire financial system. Widespread mortgage modification 
     will address the root cause of the current crisis. Despite 
     talk and efforts since early 2007 to encourage voluntary loan 
     modification, the pace of affordable and sustainable 
     modifications has not been of sufficient scale to contain the 
     harm to our communities and our economy.

[[Page 24120]]

       This month, HUD made a preliminary projection that only 
     about 20,000 homeowners may be helped by the Hope for 
     Homeowners program created as part of the Housing and 
     Economic Recovery Act, instead of the anticipated 400,000. In 
     October, a Federal Reserve Governor expressed concerns about 
     the recent rise of shady companies that masquerade as non-
     profit foreclosure prevention organizations, and then charge 
     distressed borrowers thousands of dollars for their services. 
     Congress must act to ensure that homeowners are getting the 
     information and help they need to prevent avoidable 
     foreclosures.
       For the second quarter of 2008, foreclosure filings 
     nationwide were up 121 percent over the second quarter of 
     2007. Comparing third quarter filings, the 2008 increase over 
     2007 is 71 percent. Today there are more than 1.5 million 
     houses in foreclosure--three times the normal rate--and 
     approximately 3.5 million other homeowners are behind on 
     their mortgage payments. Too many families are losing their 
     homes even when it makes more sense for the lenders to let 
     them stay and make payments on a sustainable, modified 
     mortgage. And despite reports from industry groups that there 
     have been many modifications, consumer groups say many of 
     these modifications simply spread missed payments over the 
     remaining life of the loan, which has the perverse effect of 
     raising, not lowering, the monthly payment. A recent Credit 
     Suisse report found that of those mortgages where the monthly 
     payments increased, 44 percent were more than 60 days 
     delinquent after 8 months. By contrast, of those mortgages 
     that received an interest rate reduction, only 15 percent 
     were more than 60 days delinquent after 8 months. Similarly, 
     of those mortgages where the principal balance was reduced 
     only 23 percent were delinquent. .
       In some regions of the country the housing and job markets 
     are holding up fairly well, but in other areas the increase 
     in foreclosures is or will be devastating. But there is some 
     good news: in some of the areas that have been hardest hit, 
     there are newly instituted state-court based mortgage 
     foreclosure diversion programs that require conciliation 
     conferences between lenders and borrowers before a 
     foreclosure or sheriff sale may proceed. In some places, 
     there are hundreds of trained pro bono attorneys willing to 
     help homeowners. Homeowners need these programs because, even 
     though many states have housing financing programs, 
     homeowners may not know about them and they may not know that 
     lenders may offer modifications. A recent policy paper by the 
     Mortgage Bankers Association of America showed that borrowers 
     in 21% of foreclosures initiated in the third quarter of 2007 
     either could not be located or would not respond to repeated 
     attempts by lenders to contact them. According to a report by 
     Freddie Mac, 57 percent of late-paying borrowers do not know 
     that their lenders may offer alternatives to help avoid 
     foreclosure.
       The October 17, 2008 Senate Judiciary Committee hearing I 
     held in Pittsburgh explored Allegheny County's foreclosure 
     prevention program, which is at an early stage. The 
     Philadelphia hearing I held on October 24, 2008 explored a 
     program that was adopted in April 2008, and it appears to be 
     working. In the Philadelphia Mortgage Foreclosure Diversion 
     Program's first few months, there were 1,019 mortgage 
     foreclosure cases scheduled for conciliation conferences. In 
     467 cases (46%), borrowers did not participate. Of the 552 
     (54%) in which borrowers did participate, there was a 
     ``success'' rate of 80%--meaning the homeowners remained in 
     their homes as a result of settlement, postponement, or 
     bankruptcy. Only 2 properties (.4%) were ordered to be sold 
     at sheriff sale. The delays allow for more negotiation, or, 
     in some cases for ``graceful exits'' so families can find a 
     new place to live.
       The witnesses at the Philadelphia hearing testified about 
     successful outcomes for homeowners. One witness, Tania 
     Harrigan, testified that her family fell behind in mortgage 
     payments when her husband was laid off. They filed for 
     bankruptcy but could not afford to pay the fees; the 
     bankruptcy suit was dismissed and the house was listed for 
     sheriff sale for November 4, 2008. Through the Philadelphia 
     foreclosure prevention program, the interest rate was lowered 
     from 9.75% to 7%, which reduced the monthly payment from $437 
     to $411. The lender waived $6,500 in late fees and the 
     arrearage was put back into a new 30-year fixed rate 
     mortgage. Another homeowner who was contacted through the 
     program's door-to-door outreach initiative had an adjustable 
     rate mortgage modified from a 22% interest rate to a fixed 
     rate of 6%. Another homeowner saw a reduction in her monthly 
     payments from $1479 to $1124 after the interest rate went 
     from 9.9% to 5.5%. These were ``voluntary'' in the sense that 
     the court did not impose the terms of the modifications. But 
     the court does require communication, research and 
     preparation before the conference. The court makes 
     foreclosure a last resort instead of the first step by 
     ensuring that servicers or lenders are not simply ignoring 
     alternatives to foreclosure.
       A city employee testified that, as a result of coordinated 
     outreach, calls to the Save Your Home Philly Hotline, which 
     sets up appointments with housing counselors, tripled from 
     150 per month at the beginning of the year to 460 per month 
     currently. City-funded neighborhood assistance groups who 
     have access to court foreclosure files go door-to-door to 
     reach homeowners. The participation rate in the conciliation 
     program for homeowners who answered the door and spoke to the 
     outreach team was 73 percent, compared to 48 percent for 
     families that received no such outreach. The city also funds 
     Community Legal Services to provide legal assistance to 
     distressed homeowners and training to the hundreds of 
     volunteer attorneys who represent clients pro bono.
       New York, New Jersey, Ohio, Connecticut and Florida have 
     similar programs. As I've noted, Pittsburgh is also adopting 
     a foreclosure diversion program. Common Pleas Court Judge 
     Annette Rizzo in Philadelphia testified that she has had many 
     inquiries about the foreclosure diversion program from 
     numerous cities, states, and even from Sweden. These are good 
     developments, and they should be nurtured.
       That is what this legislation would do. It creates a 
     federal Office of Foreclosure Evaluation that will encourage 
     and assist cities and states in adopting mortgage foreclosure 
     diversion programs. The Office will also conduct an 
     informational campaign so that homeowners learn of state and 
     federal housing finance programs that are available to help 
     them, as well as other resources such as free counseling and 
     legal representation by community legal services groups and 
     local bar associations.
       The states and cities are making progress, but federal 
     assistance would help. The bill permits certain HUD Community 
     Block Grant funds to be used for foreclosure prevention 
     programs that provide free counseling and legal aid. 
     Currently those funds may only be used for rehabilitation of 
     vacant or foreclosed properties. There is also a provision 
     that will free up funds so they may be used to support 
     programs that provide legal advice and representation to 
     homeowners in foreclosure actions; the current restriction on 
     using funds for litigation is overly broad. Unlike some plans 
     discussed in the press, this bill does not call for direct 
     payments to borrowers. Rather, it makes federal funds 
     available to support state and local foreclosure prevention 
     programs that work.
       The bill also addresses another reason there are not more 
     affordable and sustainable loan modifications--even though 
     modifications usually leave lenders with more money than the 
     50 cents on the dollar that a foreclosure sale typically 
     brings them. Up until the last 10 or 15 years, a mortgage 
     loan involved two parties--the borrower and a bank that both 
     originated the loan and retained the default risk. If the 
     individual borrower had trouble, it was in the bank's 
     interest to adjust the terms of the loan. But that is no 
     longer the model. Through securitization, the risk of default 
     has been transferred to investors. There is no longer a 
     single entity that has an interest in reworking failing 
     loans. The loans are pooled together and the stream of 
     payments from those mortgages is divided up into securities 
     owned by investors all over the world. A mortgage servicer 
     manages the pools of loans and distributes the payments to 
     investors. It is the mortgage servicer who has the ability to 
     restructure a mortgage or foreclose on the property. However, 
     the servicers do not have the same incentives that banks used 
     to have. The way many pooling and servicing agreements (PSAs) 
     are written, there may be no incentives for the servicers to 
     restructure the loans. Servicers typically get paid a fee if 
     they foreclose, but may have to absorb the cost of 
     renegotiating the loans. One of the first steps the Office of 
     Foreclosure Evaluation should take is to encourage servicers 
     to use technology that would standardize the income to 
     expense and loan resolution process to keep costs down. The 
     Office also should determine what incentives may be needed to 
     encourage servicers to modify contracts. It may ultimately be 
     appropriate for the government to offer servicers a flat fee 
     for each sustainable, affordable modification completed 
     within a certain time period to help cover their additional 
     costs.
       Perhaps a more significant roadblock is that servicers are 
     worried they may be sued by some of the investors. Many 
     servicers still are thinking that it is best to simply pursue 
     foreclosures. Congress tried to address this concern in the 
     Housing and Economic Recovery Act of 2008 and again in the 
     Emergency Economic Stabilization Act, by clarifying that, 
     unless the contract or PSA clearly provides otherwise, the 
     duty owed by the servicer to investors is owed to the entire 
     pool and not to any individual groups or tranches of 
     investors, but the servicers still appear to be reluctant or 
     slow to modify.
       The concerns of the servicers or lenders may not be 
     unfounded. Recently, lawyers claiming to represent investors 
     are challenging the settlement between Countrywide and 11 
     attorneys general; the settlement proposes to modify the 
     loans of 400,000 borrowers. An October 24, 2008 article in 
     the New York Times reported that certain hedge funds are 
     opposing loan modifications because it might hurt their 
     investments. At least two funds recently have warned 
     servicers that they might be sued if they participated in 
     government-backed plans to renegotiate delinquent loans. 
     Congress must

[[Page 24121]]

     take action to protect homeowners who are getting caught in 
     the middle. So far disputes over loan modifications have been 
     theoretical because most mortgage servicers are not 
     aggressively altering the terms of loans, but as a matter of 
     public policy, we cannot let fear of tort and contract claims 
     cause grave harm to consumers and the entire economy.
       The bill addresses the litigation threat by requiring 
     investors' attorneys to conduct a careful inquiry into the 
     factual and legal bases of their claims, including 
     consideration of the recent statutory clarification that the 
     servicer's duty is to the entire pool of investors or 
     beneficial owners. The attorneys also would have to obtain, 
     as a prerequisite to filing suit, a certification from the 
     new Office of Foreclosure Evaluation that the loan 
     modifications in question were unreasonable or not permitted 
     by restrictions on Real Estate Mortgage Investment Conduits 
     under the Internal Revenue Code. This opinion would be 
     admissible, but not conclusive. These administrative 
     prerequisites should result in more uniformity, guidance and 
     clarity regarding applicable legal standards and best 
     practices for servicers, taking into account the public 
     interest and current threat to our economy posed by barriers 
     to reasonable modification. This is not complete immunity 
     from suit. If the litigation threat continues to impede 
     modifications, Congress may have to hold hearings to consider 
     sufficient safeguards for servicers--taking into 
     consideration the importance of having capital available for 
     the mortgage market.
       In addition, although financial services industry groups 
     have criticized arbitrary quotas in PSAs that limit the 
     percentage of loans in a pool that may be modified, some PSAs 
     do contain such quotas. These quotas may have seemed 
     reasonable before the housing market crashed, but they do not 
     make sense now, are against public policy and, to the extent 
     these quotas are less than 25% of the total, they are 
     rendered unenforceable by this bill.
       Finally, to ensure we have reliable data regarding mortgage 
     loan modifications, the bill requires mortgage servicers to 
     report detailed data to the Office of Foreclosure Evaluation. 
     The bill also requires the Office to submit reports to 
     Congress. This data will help the Office and Congress 
     understand whether voluntary efforts are sufficient, and what 
     specific barriers there may be to case-by-case loan 
     modifications, including specific provisions in pooling and 
     service agreements that may be impeding reasonable steps to 
     avoid foreclosures.
       In the end, case-by-case loan modifications may not be 
     sufficient to appreciably slow the rate of foreclosures, in 
     which case the government may have to consider other options. 
     In that regard, I believe the proposal made recently by 
     Sheila Bair, the Chairman of the FDIC, deserves close 
     consideration. Ms. Bair's proposal is based on the FDIC's 
     real world experience with 5000 troubled mortgages at IndyMac 
     Bank, which the FDIC recently took over. Under the proposal, 
     delinquent homeowners would have their mortgage payments 
     reduced to as low as 31 percent of their monthly income. The 
     modifications would be based on interest rate reductions, 
     extension of the term of the mortgage, and principal 
     forbearance--in that order. The same protocol would be 
     applied to all delinquent mortgages, rather than having a 
     case-by-case assessment of each mortgage. The Bair proposal 
     may have the advantage of enabling rapid modification of 
     large numbers of mortgages, stemming the tide of 
     foreclosures. If a modified loan defaults later, the 
     government would share up to half of the losses. The proposal 
     would be funded under the $700 billion financial rescue 
     package. I spoke to Ms. Bair last week, and she estimates her 
     proposal could reach up to 2.2 million mortgages and enable 
     1.5 million homeowners to keep their homes. If effective, 
     across-the-board rather than case-by-case modifications may 
     be necessary.
       In the meantime, the Foreclosure Diversion and Mortgage 
     Loan Modification Act of 2008 will encourage servicers to 
     engage in greater numbers of case-by-case mortgage 
     modifications. This should be a goal those on both sides of 
     the aisle can agree to. I urge my colleagues to support it.
                                 ______
                                 
      By Mr. REID:
  S. 3688. A bill to provide for additional emergency unemployment 
compensation, to amend the Emergency Economic Stabilization Act of 2008 
to authorize loans to automobile manufacturers and component suppliers, 
and for other purposes; read the first time.
  Mr. REID. Mr. President, I ask unanimous consent that the text of the 
bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
placed in the Record, as follows:

                                S. 3688

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

                   TITLE I--UNEMPLOYMENT COMPENSATION

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Unemployment Compensation 
     Extension Act of 2008''.

     SEC. 102. ADDITIONAL FIRST-TIER BENEFITS.

       Section 4002(b)(1) of the Supplemental Appropriations Act, 
     2008 (26 U.S.C. 3304 note) is amended--
       (1) in subparagraph (A), by striking ``50'' and inserting 
     ``80''; and
       (2) in subparagraph (B), by striking ``13'' and inserting 
     ``20''.

     SEC. 103. SECOND-TIER BENEFITS.

       Section 4002 of the Supplemental Appropriations Act, 2008 
     (26 U.S.C. 3304 note) is amended by adding at the end the 
     following:
       ``(c) Special Rule.--
       ``(1) In general.--If, at the time that the amount 
     established in an individual's account under subsection 
     (b)(1) is exhausted or at any time thereafter, such 
     individual's State is in an extended benefit period (as 
     determined under paragraph (2)), such account shall be 
     augmented by an amount equal to the lesser of--
       ``(A) 50 percent of the total amount of regular 
     compensation (including dependents' allowances) payable to 
     the individual during the individual's benefit year under the 
     State law, or
       ``(B) 13 times the individual's average weekly benefit 
     amount (as determined under subsection (b)(2)) for the 
     benefit year.
       ``(2) Extended benefit period.--For purposes of paragraph 
     (1), a State shall be considered to be in an extended benefit 
     period, as of any given time, if--
       ``(A) such a period is then in effect for such State under 
     the Federal-State Extended Unemployment Compensation Act of 
     1970;
       ``(B) such a period would then be in effect for such State 
     under such Act if section 203(d) of such Act--
       ``(i) were applied by substituting `4' for `5' each place 
     it appears; and
       ``(ii) did not include the requirement under paragraph 
     (1)(A) thereof; or
       ``(C) such a period would then be in effect for such State 
     under such Act if--
       ``(i) section 203(f) of such Act were applied to such State 
     (regardless of whether the State by law had provided for such 
     application); and
       ``(ii) such section 203(f)--

       ``(I) were applied by substituting `6.0' for `6.5' in 
     paragraph (1)(A)(i) thereof; and
       ``(II) did not include the requirement under paragraph 
     (1)(A)(ii) thereof.

       ``(3) Limitation.--The account of an individual may be 
     augmented not more than once under this subsection.''.

     SEC. 104. PHASEOUT PROVISIONS.

       Section 4007(b) of the Supplemental Appropriations Act, 
     2008 (26 U.S.C. 3304 note) is amended--
       (1) in paragraph (1), by striking ``paragraph (2),'' and 
     inserting ``paragraphs (2) and (3),''; and
       (2) by striking paragraph (2) and inserting the following:
       ``(2) No augmentation after march 31, 2009.--If the amount 
     established in an individual's account under subsection 
     (b)(1) is exhausted after March 31, 2009, then section 
     4002(c) shall not apply and such account shall not be 
     augmented under such section, regardless of whether such 
     individual's State is in an extended benefit period (as 
     determined under paragraph (2) of such section).
       ``(3) Termination.--No compensation under this title shall 
     be payable for any week beginning after August 27, 2009.''.

     SEC. 105. TEMPORARY FEDERAL MATCHING FOR THE FIRST WEEK OF 
                   EXTENDED BENEFITS FOR STATES WITH NO WAITING 
                   WEEK.

       With respect to weeks of unemployment beginning after the 
     date of the enactment of this Act and ending on or before 
     December 8, 2009, subparagraph (B) of section 204(a)(2) of 
     the Federal-State Extended Unemployment Compensation Act of 
     1970 (26 U.S.C. 3304 note) shall not apply.

     SEC. 106. EFFECTIVE DATE.

       (a) In General.--The amendments made by sections 102, 103, 
     and 104 shall apply as if included in the enactment of the 
     Supplemental Appropriations Act, 2008, subject to subsection 
     (b).
       (b) Additional Benefits.--In applying the amendments made 
     by sections 102 and 103, any additional emergency 
     unemployment compensation made payable by such amendments 
     (which would not otherwise have been payable if such 
     amendments had not been enacted) shall be payable only with 
     respect to any week of unemployment beginning on or after the 
     date of the enactment of this Act.

           TITLE II--AUTOMOBILE INDUSTRY EMERGENCY ASSISTANCE

     SEC. 201. DIRECT BRIDGE LOANS TO MANUFACTURERS AND SUPPLIERS.

       (a) In General.--The Emergency Economic Stabilization Act 
     of 2008 (division A of Public Law 110-343) is amended by 
     adding at the end the following:

               ``TITLE IV--DIRECT BRIDGE LOAN PROVISIONS

     ``SEC. 401. FINDINGS.

       ``Congress finds that extraordinary and exigent 
     circumstances have prevented the automobile industry from 
     securing essential credit and liquidity from other sources 
     and that the failure of the automobile industry to obtain 
     such credit and liquidity will have a systemic adverse effect 
     on the economy.

[[Page 24122]]



     ``SEC. 402. PURPOSES.

       ``The purposes of this title are--
       ``(1) to clarify that authority and facilities are 
     available to be used immediately by the Secretary to restore 
     liquidity and stability to the automobile industry in the 
     United States;
       ``(2) to ensure that such authority and such facilities are 
     used in a manner that--
       ``(A) stimulates manufacturing and sales of automobiles 
     produced by automobile manufacturers in the United States;
       ``(B) enhances the ability and the capacity of the domestic 
     automobile industry to pursue the timely and aggressive 
     production of energy-efficient advanced technology vehicles;
       ``(C) preserves and promotes the jobs of 355,000 workers in 
     the United States directly employed by the automobile 
     industry and an additional 4,500,000 workers in the United 
     States employed in related industries; and
       ``(D) safeguards the ability of the domestic automobile 
     industry to provide retirement and health care benefits for 
     1,000,000 retirees and their spouses and dependents; and
       ``(3) to reaffirm the purposes of section 2, which include 
     providing the Secretary with broad authority to restore 
     liquidity and stability to financial institutions, including 
     automobile finance companies.

     ``SEC. 403. EMERGENCY DIRECT LOAN PROGRAM.

       ``(a) In General.--The Secretary shall make loans in an 
     aggregate amount equal to $25,000,000,000, to automobile 
     manufacturers and component suppliers that have--
       ``(1) submitted an application for a loan under this title 
     that includes a statement of need for Government funding 
     under this title to prevent a systemic adverse effect on the 
     United States economy;
       ``(2) operated a manufacturing facility for the purposes of 
     producing automobiles or automobile components in the United 
     States throughout the 20-year period ending on the date of 
     enactment of this title; and
       ``(3) operations in the United States the failure of which 
     would have a systemic adverse effect on the overall United 
     States economy, as determined by the Secretary.
       ``(b) Allocation.--In allocating loan amounts under this 
     title, the Secretary shall prioritize the distribution of 
     loans under this section based on the magnitude of the impact 
     of the manufacturing operations of the applicant in the 
     United States on the overall economy of the United States and 
     other segments of the automobile industry, including the 
     impact on levels of employment, domestic manufacturing of 
     automobiles and automobile components, and automobile 
     dealerships.
       ``(c) Plan for Long-Term Financial Viability.--At the time 
     of application for a loan under this title, an automobile 
     manufacturer or component supplier shall submit to the 
     Secretary a detailed plan on how the Government funds 
     requested will be utilized to ensure the long-term financial 
     posture of the company, and how such funds will stimulate 
     automobile production in the United States and improve the 
     capacity of the company to pursue the timely and aggressive 
     production of energy-efficient advanced technology vehicles.

     ``SEC. 404. FUNDING FROM THIRD TRANCHE; TREATMENT OF LOAN 
                   AMOUNTS.

       ``The costs incurred by the Federal Government in making 
     loans under this title, including credit subsidy costs and 
     administrative expenses, shall be covered out of the funds 
     made available to the Secretary generally under section 118 
     and, specifically, not from funds which are described in 
     paragraph (1) or (2) of section 115(a), but with respect to 
     the availability of which the reporting and procedural 
     requirements contained in paragraph (3) of such section and 
     section 115(c) shall not apply.

     ``SEC. 405. TIMING OF DISBURSEMENTS.

       ``(a) Applications.--On and after the date that is 3 days 
     after the date of enactment of this title, the Secretary 
     shall accept applications for loans under this title.
       ``(b) Determination of Eligibility.--Not later than 15 days 
     after the date on which the Secretary receives an application 
     for a loan under subsection (a), the Secretary shall make a 
     determination regarding the eligibility of the applicant, 
     based on whether the applicant meets the requirements of 
     section 403(a).
       ``(c) Disbursement.--The Secretary shall begin disbursement 
     of the proceeds of a loan under this title to an eligible 
     applicant not later than 7 days after the date on which the 
     Secretary receives a disbursal request from the applicant, 
     upon a determination of the Secretary that the applicant is 
     eligible under subsection (b).

     ``SEC. 406. TERMS AND CONDITIONS.

       ``(a) Term to Maturity.--The term to maturity of any loan 
     made under this title shall be 10 years, or such longer 
     period as the Secretary may determine with respect to such 
     loan.
       ``(b) Rate of Interest.--The annual rate of interest for a 
     loan under this title shall be--
       ``(1) 5 percent during the 5-year period beginning on the 
     date on which the Secretary disburses the loan; and
       ``(2) 9 percent after the end of the period described in 
     paragraph (1).
       ``(c) Warrants and Debt Instruments.--The Secretary may not 
     make a loan under this title unless the Secretary receives 
     from the automobile manufacturer or component supplier a 
     warrant or senior debt instrument made in accordance with the 
     requirements for a warrant or senior debt instrument by a 
     financial institution under section 113(d).
       ``(d) No Prepayment Penalty.--A loan made under this title 
     shall be prepayable without penalty at any time.
       ``(e) Executive Compensation.--
       ``(1) Standards required.--The Secretary shall require any 
     recipient of a loan under this title to meet appropriate 
     standards for executive compensation and corporate 
     governance.
       ``(2) Specific requirements.--The standards established 
     under paragraph (1) shall include the following:
       ``(A) Limits on compensation that exclude incentives for 
     senior executive officers of a recipient of a loan under this 
     title to take unnecessary and excessive risks that threaten 
     the value of such recipient during the period that the loan 
     is outstanding.
       ``(B) A provision for the recovery by such recipient of any 
     bonus or incentive compensation paid to a senior executive 
     officer based on statements of earnings, gains, or other 
     criteria that are later found to be materially inaccurate.
       ``(C) A prohibition on such recipient making any golden 
     parachute payment to a senior executive officer during the 
     period that the loan under this title is outstanding.
       ``(D) A prohibition on such recipient paying or accruing 
     any bonus or incentive compensation during the period that 
     the loan is outstanding to any executive whose annual base 
     compensation exceeds $250,000 (which amount shall be adjusted 
     by the Secretary for inflation).
       ``(E) A prohibition on any compensation plan that could 
     encourage manipulation of the reported earnings of the 
     recipient to enhance the compensation of any of its 
     employees.
       ``(3) Definitions.--For purposes of this subsection, the 
     following definitions shall apply:
       ``(A) Senior executive officer.--The term `senior executive 
     officer' means an individual who is 1 of the top 5 most 
     highly paid executives of a public company, whose 
     compensation is required to be disclosed pursuant to the 
     Securities Exchange Act of 1934, and any regulations issued 
     thereunder, and non-public company counterparts.
       ``(B) Golden parachute payment.--The term `golden parachute 
     payment' means any payment to a senior executive officer for 
     departure from a company for any reason.
       ``(f) Prohibition on Payment of Dividends.--No common stock 
     dividends may be paid by any recipient of a loan under this 
     title for the duration of the loan.

     ``SEC. 407. OVERSIGHT.

       ``(a) In General.--The provisions of sections 105, 116, 
     121, and 125 shall apply with respect to any loans made under 
     this title, to the extent possible, in the same manner and to 
     the same extent as such sections apply to transactions made 
     under the authority of title I.''.
       (b) Technical and Conforming Amendments.--
       (1) Table of contents.--The table of contents in section 
     1(b) of the Emergency Economic Stabilization Act of 2008 
     (division A of Public Law 110-343) is amended--
       (A) by inserting after the item relating to section 3 the 
     following new item:

``Sec. 4. References.''

     ; and
       (B) by adding at the end the following:

               ``TITLE IV--DIRECT BRIDGE LOAN PROVISIONS

``Sec. 401. Findings.
``Sec. 402. Purposes.
``Sec. 403. Emergency direct loan program.
``Sec. 404. Funding from third tranche; treatment of loan amounts.
``Sec. 405. Timing of disbursements.
``Sec. 406. Terms and conditions.
``Sec. 407. Oversight.''

     ; and
       (2) References.--The Emergency Economic Stabilization Act 
     of 2008 (division A of Public Law 110-343) is amended by 
     inserting after section 3 the following new section:

     ``SEC. 4. REFERENCES.

       ``Any reference--
       ``(1) in this division to `this Act' or any subdivision 
     thereof is a reference to this division A or any subdivision 
     thereof;
       ``(2) in division (B) to `this Act' or any subdivision 
     thereof is a reference to division B or any subdivision 
     thereof; and
       ``(3) in division (C) to `this Act' or any subdivision 
     thereof is a reference to division C or any subdivision 
     thereof.''.

                     TITLE III--EMERGENCY TREATMENT

     SEC. 301. EMERGENCY TREATMENT.

       All provisions of this Act and the amendments made by this 
     Act are designated as an emergency requirement and necessary 
     to meet emergency needs pursuant to section 204(a) of S. Con. 
     Res 21 (110th Congress), the concurrent resolution on the 
     budget for fiscal year 2008.
                                 ______
                                 
      By Mr. REID (for himself and Mr. Byrd):
  S. 3689. A bill making supplemental appropriations for job creation 
and

[[Page 24123]]

preservation, infrastructure investment, and economic and energy 
assistance for the fiscal year ending September 30, 2009, and for other 
purposes; read the first time.
  Mr. REID. Mr. President, I ask unanimous consent that the text of the 
bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
placed in the Record, as follows:

                                S. 3689

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled, That the 
     following sums are appropriated, out of any money in the 
     Treasury not otherwise appropriated, for the fiscal year 
     ending September 30, 2009, and for other purposes, namely:

                                TITLE I

             INFRASTRUCTURE, ENERGY, AND ECONOMIC RECOVERY

                               CHAPTER 1

                       DEPARTMENT OF AGRICULTURE

                          Farm Service Agency


                         SALARIES AND EXPENSES

       For an additional amount for ``Farm Service Agency, 
     Salaries and Expenses'', for the purpose of maintaining and 
     modernizing the information technology system, $171,700,000, 
     to remain available until expended.

                         Rural Housing Service


                RURAL HOUSING INSURANCE PROGRAM ACCOUNT

       For an additional amount for gross obligations for the 
     principal amount of direct and guaranteed loans as authorized 
     by title V of the Housing Act of 1949, to be available from 
     funds in the rural housing insurance fund, as follows: 
     $171,000,000 for section 502 direct loans, and $3,000,000,000 
     for section 502 unsubsidized guaranteed loans.
       For an additional amount for the cost of direct and 
     guaranteed loans, including the cost of modifying loans, as 
     defined in section 502 of the Congressional Budget Act of 
     1974, to remain available until expended, as follows: 
     $11,500,000 for section 502 direct loans, and $38,100,000 for 
     section 502 unsubsidized guaranteed loans.


               RURAL COMMUNITY FACILITIES PROGRAM ACCOUNT

       For an additional amount for gross obligations for the 
     principal amount of direct and guaranteed loans and grants as 
     authorized by section 306 of the Consolidated Farm and Rural 
     Development Act, to be available from the rural community 
     facilities program account, as follows: $612,000,000 for 
     rural community facilities direct loans; $130,000,000 for 
     guaranteed rural community facilities loans; and $50,000,000 
     for rural community facilities grants.
       For an additional amount for the cost of direct loans, 
     guaranteed loans, and grants, including the cost of modifying 
     loans, as defined in section 502 of the Congressional Budget 
     Act of 1974, to remain available until expended, as follows: 
     $35,000,000 for rural community facilities direct loans; 
     $4,000,000 for rural community facilities guaranteed loans; 
     and $50,000,000 for rural community facilities grants.

                  Rural Business--Cooperative Service


                     rural business program account

       For an additional amount for gross obligations for the 
     principal amount of guaranteed loans as authorized by section 
     310B(a)(2)(A) of the Consolidated Farm and Rural Development 
     Act, to be available from the rural business program account, 
     as follows: $1,000,000,000 for business and industry 
     guaranteed loans.
       For an additional amount for the cost of guaranteed loans, 
     including the cost of modifying loans, as defined in section 
     502 of the Congressional Budget Act of 1974, to remain 
     available until expended, as follows: $43,500,000 for 
     business and industry guaranteed loans.


                    RURAL BUSINESS ENTERPRISE GRANTS

       For an additional amount for ``Rural Business Enterprise 
     Grants'', $40,000,000, to remain available until expended.


              RURAL DEVELOPMENT LOAN FUND PROGRAM ACCOUNT

       For an additional amount for gross obligations for the 
     principal amount of direct loans as authorized by the Rural 
     Development Loan Fund (42 U.S.C. 9812(a)), $30,000,000.
       For an additional amount for the cost of direct loans, 
     including the cost of modifying loans, as defined in section 
     502 of the Congressional Budget Act of 1974, to remain 
     available until expended, $12,600,000, for direct loans as 
     authorized by the Rural Development Loan Fund (42 U.S.C. 
     9812(a)).

                        Rural Utilities Service


             RURAL WATER AND WASTE DISPOSAL PROGRAM ACCOUNT

       For an additional amount for the cost of direct loans, loan 
     guarantees, and grants for the rural water, waste water, 
     waste disposal, and solid waste management programs 
     authorized by sections 306, 306A, 306C, 306D, and 310B and 
     described in sections 306C(a)(2), 306D, and 381E(d)(2) of the 
     Consolidated Farm and Rural Development Act, $200,000,000, to 
     remain available until expended.

                       Food and Nutrition Service


special supplemental nutrition program for women, infants, and children

       For an additional amount for the special supplemental 
     nutrition program as authorized by section 17 of the Child 
     Nutrition Act of 1966 (42 U.S.C. 1786), $445,000,000.


               SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM

       For an additional amount for the Emergency Food Assistance 
     Program, as authorized by Section 4201 of Public Law 110-246, 
     $50,000,000, of which the Secretary may use up to 10 percent 
     for costs associated with the distribution of commodities.


                      COMMODITY ASSISTANCE PROGRAM

       For an additional amount for the Commodity Supplemental 
     Food Program, $8,218,000, to support additional food 
     purchases.

                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 1101. (a) Hereafter, in this section, the term 
     ``nonambulatory disabled cattle'' means cattle, other than 
     cattle that are less than 5 months old or weigh less than 500 
     pounds, subject to inspection under section 3(b) of the 
     Federal Meat Inspection Act (21 U.S.C. 603(b)) that cannot 
     rise from a recumbent position or walk, including cattle with 
     a broken appendage, severed tendon or ligament, nerve 
     paralysis, fractured vertebral column, or a metabolic 
     condition.
       (b) Hereafter, none of the funds made available under this 
     or any other Act may be used to pay the salaries or expenses 
     of any personnel of the Food Safety and Inspection Service to 
     pass through inspection any nonambulatory disabled cattle for 
     use as human food, regardless of the reason for the 
     nonambulatory status of the cattle or the time at which the 
     cattle became nonambulatory.
       (c) Hereafter, in addition to any penalties available under 
     the Federal Meat Inspection Act (21 U.S.C. 601 et seq.), the 
     Secretary shall impose penalties consistent with sections 
     10414 and 10415 of the Animal Health Protection Act (7 U.S.C. 
     8313, 8314) on any establishment that slaughters 
     nonambulatory disabled cattle or prepares a carcass, part of 
     a carcass, or meat or meat food product, from any 
     nonambulatory disabled cattle, for use as human food.
       Sec. 1102. Farm Relief. (a) Short Title.--This section may 
     be cited as the ``Farm Relief Act of 2008''.
       (b) 2008 Crop Disaster Assistance.--Section 9001 of the 
     U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and 
     Iraq Accountability Appropriations Act, 2007 (Public Law 110-
     28; 121 Stat. 211) is amended--
       (1) in subsection (a)--
       (A) by striking ``There are hereby'' and inserting the 
     following:
       ``(1) In general.--There are hereby''; and
       (B) by adding at the end the following:
       ``(2) 2008 crop disaster assistance.--
       ``(A) In general.--There are hereby appropriated to the 
     Secretary such sums as are necessary, to remain available 
     until expended, to make emergency financial assistance under 
     this section available to producers on a farm that incurred 
     qualifying quantity or quality losses for the 2008 crop due a 
     natural disaster or any related condition, as determined by 
     the Secretary.
       ``(B) Sugar and sugarcane disaster assistance.--
       ``(i) Florida.--There are hereby appropriated to the 
     Secretary such sums as are necessary, to remain available 
     until expended, to make payments to processors in Florida 
     that are eligible to obtain a loan under section 156(a) of 
     the Federal Agriculture Improvement and Reform Act of 1996 (7 
     U.S.C. 7272(a)) to compensate first processors and producers 
     for crop and other losses due a natural disaster or any 
     related condition, as determined by the Secretary, in Florida 
     during calendar year 2008, by an agreement on the same terms 
     and conditions, to the maximum extent practicable, as the 
     payments made under section 102 of the Emergency Supplemental 
     Appropriations for Hurricane Disasters Assistance Act of 2005 
     (Public Law 108-324; 118 Stat. 1235), including that the 2008 
     base production of each harvesting unit shall be determined 
     using the same base year crop production history that was 
     used pursuant to the agreement under that section.
       ``(ii) Louisiana.--

       ``(I) Compensation for losses.--There are hereby 
     appropriated to the Secretary such sums as are necessary, to 
     remain available until expended, to make assistance available 
     to first processors of sugarcane that operate in a county 
     affected by a natural disaster, or obtain sugarcane from a 
     county affected by a natural disaster, in Louisiana and that 
     are eligible to obtain a loan under section 156(a) of the 
     Federal Agriculture Improvement and Reform Act of 1996 (7 
     U.S.C. 7272(a)), in the form of monetary payments or 
     commodities in the inventory of the Commodity Credit 
     Corporation derived from carrying out that section, to 
     compensate producers and first processors for crop and other 
     losses due to the natural disaster or any related condition, 
     as determined by the Secretary.
       ``(II) Administration.--Assistance under this clause shall 
     be--

       ``(aa) shared by an affected first processor with affected 
     producers that provide commodities to the processor in a 
     manner that reflects contracts entered into between the

[[Page 24124]]

     processor and the producers, except with respect to a portion 
     of the amount of total assistance provided under subclause 
     (I) necessary to compensate affected producers for individual 
     losses experienced by the producers, including losses due to 
     saltwater intrusion, flooding, wind damage, or increased 
     planting, replanting, or harvesting costs, which shall be 
     transferred by the first processor to the affected producers 
     without regard to contractual share arrangements; and
       ``(bb) made available under such terms and conditions as 
     the Secretary determines are necessary to carry out this 
     clause.

       ``(III) Form of assistance.--In carrying out this clause, 
     the Secretary shall--

       ``(aa) convey to the first processor commodities in the 
     inventory of the Commodity Credit Corporation derived from 
     carrying out section 156(a) of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7272(a));
       ``(bb) make monetary payments to the first processor; or
       ``(cc) take any combination of actions described in items 
     (aa) and (bb), using commodities or monetary payments.

       ``(IV) Loss determination.--In carrying out this clause, 
     the Secretary shall use the same base year to determine crop 
     loss that was elected by a producer to determine crop loss in 
     carrying out the hurricane assistance program under section 
     207 of the Agricultural Assistance Act of 2003 (Public Law 
     108-7; 117 Stat. 543).

       ``(iii) Texas.--There are hereby appropriated to the 
     Secretary such sums as are necessary, to remain available 
     until expended, to assist sugarcane growers in Texas by 
     making a payment in that amount to a farmer-owned cooperative 
     sugarcane processor in that State, for costs of demurrage, 
     storage, and transportation resulting from natural disaster 
     or any related condition during calendar year 2008.
       ``(C) Relation to supplemental agricultural disaster 
     assistance program.--A producer on a farm that accepts 
     assistance made available under this paragraph for a crop 
     loss is not eligible to receive supplemental agricultural 
     disaster assistance for that crop loss under subtitle B of 
     the Federal Crop Insurance Act (7 U.S.C. 1531) or title IX of 
     the Trade Act of 1974 (19 U.S.C. 2497 et seq.).''; and
       (2) in subsection (b), by striking ``this section'' each 
     place it appears and inserting ``subsection (a)(1)''.
       (c) Aquaculture Grants.--
       (1) In general.--The Secretary of Agriculture shall make 
     available grants under this subsection to appropriate State 
     departments of agriculture (or other appropriate State 
     agencies) that agree to assist producers of animals described 
     in section 10806(a)(1) of the Farm Security and Rural 
     Investment Act of 2002 (21 U.S.C. 321d(a)(1)) injured by 
     increased costs for animal feed and that agree to comply with 
     paragraph (2).
       (2) Eligibility for grants.--To be eligible to receive a 
     grant under this subsection, the State department of 
     agriculture (or other appropriate State agency) shall--
       (A) agree to use the grants to distribute feed assistance 
     through animal feed providers; and
       (B) agree to require such animal feed providers to make 
     such feed assistance available on a pro rata basis to active 
     producers described in paragraph (1) based on documented feed 
     use by such producers in 2007.
       (3) Feed assistance.--The Secretary shall make such grants 
     available to such State departments of agriculture or other 
     agencies allocated on a pro rata basis, based on total tons 
     of feed for such animals consumed in such State in 2007.
       (4) Funding.--There are hereby appropriated $50,000,000 to 
     carry out this subsection.

                               CHAPTER 2

                         DEPARTMENT OF COMMERCE

                  Economic Development Administration


                Economic Development Assistance Programs

       For an additional amount for ``Economic Development 
     Assistance Programs'' for economic adjustment assistance as 
     authorized by section 209 of the Public Works and Economic 
     Development Act of 1965, as amended (42 U.S.C. 3149), 
     $50,000,000, to remain available until expended: Provided, 
     That in allocating funds provided in the previous proviso, 
     the Secretary of Commerce shall give priority consideration 
     to areas of the Nation that have experienced sudden and 
     severe economic dislocation and job loss due to corporate 
     restructuring.

                         DEPARTMENT OF JUSTICE

                     United States Marshals Service


                         SALARIES AND EXPENSES

       For an additional amount for ``Salaries and Expenses'', 
     $50,000,000, for the United States Marshals Service, to 
     implement and enforce the Adam Walsh Child Protection and 
     Safety Act (Public Law 109-248) to apprehend non-compliant 
     sex offenders.

                    Federal Bureau of Investigation


                         SALARIES AND EXPENSES

       For an additional amount for ``Salaries and Expenses'', 
     $75,000,000.

                       Office of Justice Programs


               STATE AND LOCAL LAW ENFORCEMENT ASSISTANCE

       For an additional amount for ``State and Local Law 
     Enforcement Assistance'' Edward Byrne Memorial Justice 
     Assistance Grant program as authorized by subpart 1 of part E 
     of title I of the Omnibus Crime Control and Safe Street Act 
     of 1968 (``1968 Act''), (except that section 1001(c), and the 
     special rules for Puerto Rico under section 505(g), of the 
     1968 Act, shall not apply for purposes of this Act), 
     $490,000,000.
       For an additional amount for ``State and Local Law 
     Enforcement Assistance'', $100,000,000, for competitive 
     grants to provide assistance and equipment to local law 
     enforcement along the Southern border and in High-Intensity 
     Drug Trafficking Areas to combat criminal narcotic activity 
     stemming from the Southern border, of which $15,000,000 shall 
     be transferred to the ``Bureau of Alcohol, Tobacco, Firearms 
     and Explosives'', ``Salaries and Expenses'' for the ATF 
     Project Gunrunner.


                  COMMUNITY ORIENTED POLICING SERVICES

       For additional amount for ``Community Oriented Policing 
     Services'', for grants under section 1701 of title I of the 
     1968 Omnibus Crime Control and Safe Streets Act (42 U.S.C. 
     379dd) for hiring and rehiring of additional career law 
     enforcement officers under part Q of such title 
     notwithstanding subsection (i) of such section, $500,000,000.

                                SCIENCE

             National Aeronautics and Space Administration


                            RETURN TO FLIGHT

       For necessary expenses, not otherwise provided for, in 
     carrying out return to flight activities associated with the 
     space shuttle and activities from which funds were 
     transferred to accommodate return to flight activities, 
     $400,000,000, with such sums as determined by the 
     Administrator of the National Aeronautics and Space 
     Administration as available for transfer to ``Science'', 
     ``Aeronautics'', ``Exploration'', and ``Space Operations'' 
     for restoration of funds previously reallocated to meet 
     return to flight activities.

                             RELATED AGENCY

                       Legal Services Corporation


               Payment to the Legal Services Corporation

       For an additional amount for ``Payment to the Legal 
     Services Corporation'', $37,500,000, to provide legal 
     assistance related to home ownership preservation, home 
     foreclosure prevention, and tenancy associated foreclosure: 
     Provided, That each limitation on expenditures, and each term 
     or condition, that applies to funds appropriated to the Legal 
     Services Corporation under the Consolidated Appropriations 
     Act of 2008 (Public Law 110-61), shall apply to funds 
     appropriated under this Act: Provided further, That priority 
     shall be given to entities and individuals that (1) provide 
     legal assistance in the 100 metropolitan statistical areas 
     (as defined by the Director of the Office of Management and 
     Budget) with the highest home foreclosure rates; and (2) have 
     the capacity to begin using the funds within 90 days of 
     receipt of the funds.

                               CHAPTER 3

                      DEPARTMENT OF DEFENSE--CIVIL

                         DEPARTMENT OF THE ARMY

                       Corps of Engineers--Civil


                              CONSTRUCTION

       For an additional amount for ``Construction'' for expenses 
     necessary for the construction of river and harbor, flood and 
     storm damage reduction, shore protection, aquatic ecosystem 
     restoration, and related projects authorized by law, 
     $400,000,000, to remain available until expended: Provided, 
     That not less than $100,000,000 of the funds provided shall 
     be for environmental infrastructure assistance: Provided 
     further, That not less than $75,000,000 of the funds provided 
     shall be for rehabilitation of Corps of Engineers owned or 
     operated hydropower infrastructure: Provided further, That 33 
     U.S.C. 2221 shall not apply to funds provided in this Act: 
     Provided further, That notwithstanding any other provision of 
     law, funds provided in this Act shall not be cost shared with 
     the Inland Waterways Trust Fund as authorized in Public Law 
     99-662: Provided further, That funds provided in this Act may 
     only be used for programs, projects or activities previously 
     funded: Provided further, That funds provided in this Act 
     shall be used for elements of projects, programs or 
     activities that can be completed within these funding amounts 
     and shall not create budgetary obligations in future fiscal 
     years: Provided further, That the Secretary of the Army shall 
     submit a report to the House and Senate Appropriations 
     Committees within 45 days of enactment of this Act, 
     specifying the projects, programs or activities that are to 
     be funded with these supplemental funds: Provided further, 
     That these funds must be obligated no later than December 31, 
     2010.


                       OPERATIONS AND MAINTENANCE

       For an additional amount for ``Operation and Maintenance'' 
     for expenses necessary for the operation, maintenance, and 
     care of existing river and harbor, flood and storm damage 
     reduction, aquatic ecosystem restoration, and related 
     projects authorized by law,

[[Page 24125]]

     and for surveys and charting of northern and northwestern 
     lakes and connecting waters, clearing and straightening 
     channels, and removal of obstructions to navigation, 
     $500,000,000, to remain available until expended, of which 
     such sums as are necessary to cover the Federal share of 
     operation and maintenance costs for coastal harbors and 
     channels, and inland harbors shall be derived from the Harbor 
     Maintenance Trust Fund, pursuant to Public Law 99-662; and of 
     which such sums as become available under section 217 of the 
     Water Resources Development Act of 1996, Public Law 104-303, 
     shall be used to cover the cost of operation and maintenance 
     of the dredged material disposal facilities for which fees 
     have been collected: Provided, That not less than 
     $150,000,000 of the funds provided shall be used for dredging 
     any authorized inland and coastal waterways and ports to 
     provide useful navigable widths and depths: Provided further, 
     That not less than $25,000,000 of the funds provided shall be 
     used for rehabilitation of public use areas at Corps of 
     Engineers projects and facilities: Provided further, That 
     $75,000,000 of the funds provided shall be used for 
     maintenance activities for Corps of Engineers owned or 
     operated hydropower infrastructure: Provided further, That 
     funds provided in this Act may only be used for programs, 
     projects or activities previously funded: Provided further, 
     That funds provided in this Act shall be used for elements of 
     projects, programs or activities that can be completed within 
     these funding amounts and shall not create budgetary 
     obligations in future fiscal years: Provided further, That 
     the Secretary of the Army shall submit a report to the House 
     and Senate Appropriations Committees within 45 days of 
     enactment of this Act, specifying the projects, programs or 
     activities that are to be funded with these supplemental 
     funds: Provided further, That these funds must be obligated 
     no later than December 31, 2010.


                   MISSISSIPPI RIVER AND TRIBUTARIES

       For an additional amount for ``Mississippi River and 
     Tributaries'' for expenses necessary for the flood damage 
     reduction program for the Mississippi River alluvial valley 
     below Cape Girardeau, Missouri, as authorized by law, 
     $100,000,000, to remain available until expended, of which 
     such sums as are necessary to cover the Federal share of 
     operation and maintenance costs for inland harbors shall be 
     derived from the Harbor Maintenance Trust Fund, pursuant to 
     Public Law 99-662: Provided, That not less than $75,000,000 
     of the funds provided shall be utilized for flood control, 
     ecosystem restoration, and backlog maintenance of facilities 
     along the tributaries of the mainstem of the river eligible 
     under this account: Provided further, That funds provided in 
     this Act may only be used for programs, projects or 
     activities previously funded in Acts making appropriations 
     for Energy and Water Development: Provided further, That 
     funds provided in this Act shall be used for elements of 
     projects, programs or activities that can be completed within 
     these funding amounts and shall not create budgetary 
     obligations in future fiscal years: Provided further, That 
     the Secretary of the Army shall submit a report to the House 
     and Senate Appropriations Committees within 45 days of 
     enactment of this Act, specifying the projects, programs or 
     activities that are to be funded with these supplemental 
     funds: Provided further, That these funds must be obligated 
     no later than December 31, 2010.

                       DEPARTMENT OF THE INTERIOR

                         Bureau of Reclamation


                      WATER AND RELATED RESOURCES

       For an additional amount for ``Water and Related 
     Resources'' for management, development, and restoration of 
     water and related natural resources and for related 
     activities, including the operation, maintenance, and 
     rehabilitation and modification of reclamation and other 
     facilities, including improvements or modification to provide 
     environmental benefit, participation in fulfilling related 
     Federal responsibilities to Native Americans, and related 
     grants to, and cooperative and other agreements with, State 
     and local governments, federally recognized Indian tribes, 
     and others, $200,000,000, to remain available until expended: 
     Provided, That not less than $50,000,000 of the funds 
     provided under this heading shall be used for rural water 
     projects and these funds should be concentrated on water 
     intake and treatment facilities: Provided further, That not 
     less than $5,000,000 of the funds provided under this heading 
     shall be used for a bureauwide program for inspection of 
     canals in urbanized areas: Provided further, That not less 
     than $45,000,000 of the funds provided under this heading 
     shall be used for water reclamation and reuse projects: 
     Provided further, That not less than $15,000,000 of the funds 
     provided under this heading shall be for maintenance and 
     rehabilitation of Bureau of Reclamation owned or operated 
     hydropower infrastructure: Provided further, That funds 
     provided in this Act may only be used for programs, projects 
     or activities previously funded: Provided further, That funds 
     provided in this Act shall be used for elements of projects, 
     programs or activities that can be completed within these 
     funding amounts and shall not create budgetary obligations in 
     future fiscal years: Provided further, That the Secretary of 
     the Interior shall submit a report to the House and Senate 
     Appropriations Committees within 45 days of enactment of this 
     Act, specifying the projects, programs or activities that are 
     to be funded with these supplemental funds: Provided further, 
     That these funds must be obligated no later than December 31, 
     2010.

                          DEPARTMENT OF ENERGY

                 Energy Efficiency and Renewable Energy

       For an additional amount for ``Energy Efficiency and 
     Renewable Energy'', $1,800,000,000, to remain available until 
     expended: Provided, That of the funds appropriated, 
     $500,000,000 is directed to the Weatherization Assistance 
     Program: Provided further, That of the funds appropriated, 
     not less than $300,000,000 is directed to advance battery 
     technology research, development, and demonstration: Provided 
     further, That of the funds appropriated, $500,000,000 is 
     directed to competitively awarded local government and tribal 
     technology demonstration grants.

              Electricity Delivery and Energy Reliability

       For an additional amount for ``Electricity Delivery and 
     Energy Reliability'', $140,000,000, to remain available until 
     expended: Provided, That funds shall be available for 
     expenses related to smart grid technologies, critical energy 
     facility process operation systems, and cyber security of 
     control systems.

                   Non-Defense Environmental Cleanup

       For an additional amount for ``Non-Defense Environmental 
     Cleanup'', $150,000,000, to remain available until expended.

      Uranium Enrichment Decontamination and Decommissioning Fund

       For an additional amount for ``Uranium Enrichment 
     Decontamination and Decommissioning Fund'', $170,000,000, to 
     remain available until expended.

                                Science

       For an additional amount for ``Science'', $175,000,000, to 
     remain available until expended.

                Advanced Battery Loan Guarantee Program

       For the cost of guaranteed loans as authorized by section 
     135 of the Energy Independence and Security Act of 2007 
     (Public Law 110-140; 42 U.S.C. 17012), $1,000,000,000, to 
     remain available until expended: Provided, That of such 
     amount, $5,000,000 shall be used for administrative expenses 
     in carrying out the guaranteed loan program.

                    Atomic Energy Defense Activities

                National Nuclear Security Administration


                           WEAPONS ACTIVITIES

       For an additional amount for ``Weapons Activities'', 
     $100,000,000, to remain available until expended.

               Environmental and Other Defense Activities


                     DEFENSE ENVIRONMENTAL CLEANUP

       For an additional amount for ``Defense Environmental 
     Cleanup'', $800,000,000, to remain available until expended.

                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 1301. FutureGen. (a) Subject to subsection (b), the 
     Secretary of Energy shall reinstate and continue--
       (1) the cooperative agreement numbered DE-FC-26-06NT42073 
     (as in effect on May 15, 2008); and
       (2) Budget Period 1, under such agreement, through July 31, 
     2009.
       (b) During the period beginning on the date of enactment of 
     this Act and ending March 31, 2009--
       (1) The agreement described in subsection (a) may not be 
     terminated except by the mutual consent of the parties to the 
     agreement; and
       (2) Funds may be expended under the agreement only to 
     complete and provide information and documentation to the 
     Department of Energy.
       Sec. 1302. Section 1222(g) of the Energy Policy Act of 2005 
     (Public Law 109-58; 42 U.S.C. 16421) is amended by striking 
     ``$100,000,000'' and inserting ``$2,500,000,000''.

                               CHAPTER 4

                       DEPARTMENT OF THE TREASURY

                      Office of Inspector General


                         SALARIES AND EXPENSES

       For an additional amount for ``Salaries and Expenses'', 
     $10,550,000, to carry out the provisions of the Inspector 
     General Act of 1978, including material loss reviews in 
     conjunction with bank failures.

                  COMMODITY FUTURES TRADING COMMISSION

                         Salaries and Expenses

       For an additional amount to carry out the provisions of the 
     Commodity Exchange Act (7 U.S.C. 1 et seq.), $13,100,000, of 
     which $8,000,000 shall remain available until September 30, 
     2010.

                    GENERAL SERVICES ADMINISTRATION

                        Real Property Activities


                         FEDERAL BUILDINGS FUND

                      (limitation on availability)

       For an additional amount to be deposited in the Federal 
     Buildings Fund, $547,639,000, to

[[Page 24126]]

     be used by the Administrator of General Services for GSA real 
     property activities; of which $201,000,000 shall be used for 
     construction, repair and alteration of border inspection 
     facility projects for any previously funded or authorized 
     prospectus level project, for which additional funding is 
     required, to expire on September 30, 2009 and remain in the 
     Federal Buildings Fund except for funds for projects as to 
     which funds for design or other funds have been obligated in 
     whole or in part prior to such date; and of which 
     $346,639,000 shall be used for the development and 
     construction of the St. Elizabeths campus in the District of 
     Columbia, to remain available until expended and remain in 
     the Federal Buildings Fund except for funds for projects as 
     to which funds for design or other funds have been obligated 
     in whole or in part prior to such date: Provided, That each 
     of the foregoing limits of costs on new construction projects 
     may be exceeded to the extent that savings are effected in 
     other such projects, but not to exceed 10 percent of the 
     amounts provided unless advance approval is obtained from the 
     Committees on Appropriations of a greater amount.

                     SMALL BUSINESS ADMINISTRATION

                         Salaries and Expenses

       For an additional amount to be available until September 
     30, 2010, $4,000,000 for marketing, management, and technical 
     assistance under section 7(m)(4) of the Small Business Act 
     (15 U.S.C. 636(m)(4)) by intermediaries that make microloans 
     under the Microloan program.
       For an additional amount to be available until September 
     30, 2010, $15,000,000 for lender oversight activities as 
     authorized under section 1401(c) of this Act.

                     Business Loans Program Account

       For an additional amount for the cost of direct loans, 
     $1,000,000, to remain available until September 30, 2010; and 
     for an additional amount for the cost of guaranteed loans, 
     $615,000,000, to remain available until September 30, 2010: 
     Provided, That of the amount for the cost of guaranteed 
     loans, $515,000,000 shall be for loan subsidies and loan 
     modifications for loans to small business concerns authorized 
     under section 1401(a) of this Act; and $100,000,000 shall be 
     for loan subsidies and loan modifications for loans to small 
     business concerns authorized under section 1401(b) of this 
     Act: Provided further, That such costs, including the cost of 
     modifying such loans, shall be as defined in section 502 of 
     the Congressional Budget Act of 1974.

        Administrative Provisions--Small Business Administration

       Sec. 1401. Economic Stimulus for Small Business Concerns. 
     (a) Temporary Fee Elimination for the 7(a) Loan Program.--
     Until September 30, 2010, and to the extent the cost of such 
     elimination of fees is offset by appropriations, with respect 
     to each loan guaranteed under section 7(a) of Small Business 
     Act (15 U.S.C. 636(a)) for which the application is approved 
     on or after the date of enactment of this Act, the 
     Administrator shall--
       (1) in lieu of the fee otherwise applicable under section 
     7(a)(23)(A) of the Small Business Act (15 U.S.C. 
     636(a)(23)(A)), collect no fee; and
       (2) in lieu of the fee otherwise applicable under section 
     7(a)(18)(A) of the Small Business Act (15 U.S.C. 
     636(a)(18)(A)), collect no fee.
       (b) Temporary Fee Elimination for the 504 Loan Program.--
       (1) In general.--Until September 30, 2010, and to the 
     extent the cost of such elimination in fees is offset by 
     appropriations, with respect to each project or loan 
     guaranteed by the Administrator under title V of the Small 
     Business Investment Act of 1958 (15 U.S.C. 695 et seq.) for 
     which the application is approved or pending approval on or 
     after the date of enactment of this Act--
       (A) the Administrator shall, in lieu of the fee otherwise 
     applicable under section 503(d)(2) of the Small Business 
     Investment Act of 1958 (15 U.S.C. 697(d)(2)) for an 
     institution described in subclause (I), (II), or (III) of 
     section 502(3)(B)(i) of that Act (15 U.S.C. 696(3)(B)(i)), 
     collect no fee;
       (B) a development company shall, in lieu of the mandatory 
     0.625 servicing fee under section 120.971(a)(3) of title 13, 
     Code of Federal Regulations (relating to fees paid by 
     borrowers), or any successor thereto, collect no fee; and
       (C) the Administrator shall, in lieu of the fee otherwise 
     applicable under section 503(d)(3) of the Small Business 
     Investment Act (15 U.S.C. 697(d)(3)), collect no fee.
       (2) Reimbursement for waived fees.--
       (A) In general.--To the extent the cost of such payments is 
     offset by appropriations, the Administrator shall reimburse 
     each development company that does not collect a servicing 
     fee pursuant to paragraph (1)(B).
       (B) Amount.--The payment to a development company under 
     subparagraph (A) shall be in an amount equal to 0.5 percent 
     of the outstanding principal balance of any guaranteed 
     debenture for which the development company does not collect 
     a servicing fee pursuant to paragraph (1)(B).
       (c) Temporary Fee Elimination of Lender Oversight Fees.--
     Until September 30, 2010, and to the extent the cost of such 
     elimination in fees is offset by appropriations, the 
     Administrator shall, in lieu of the fee otherwise applicable 
     under section 5(b)(14) of the Small Business Act (15 U.S.C. 
     634(b)(14)), collect no fee.
       (d) Technical Correction.--Section 7(a) of the Small 
     Business Act (15 U.S.C. 636(a)) is amended by redesignating 
     paragraph (32) relating to an increased veteran participation 
     pilot program, as added by section 208 of the Military 
     Reservist and Veteran Small Business Reauthorization and 
     Opportunity Act of 2008 (Public Law 110-186; 122 Stat. 631), 
     as paragraph (33).
       (e) Application of Fee Eliminations.--The Administrator 
     shall eliminate fees under subsections (a), (b), and (c) 
     until the amount provided for such purposes, as applicable, 
     under the headings ``Salaries and Expenses'' and ``Business 
     Loans Program Account'' under the heading ``Small Business 
     Administration'' under this Act are expended.
       (f) Definitions.--In this section--
       (1) the terms ``Administration'' and ``Administrator'' mean 
     the Small Business Administration and the Administrator 
     thereof, respectively; and
       (2) the term ``small business concern'' has the same 
     meaning as in section 3 of the Small Business Act (15 U.S.C. 
     632).
       Sec. 1402. None of the funds made available under this Act 
     or any other appropriations Act for any fiscal year may be 
     used by the Small Business Administration to implement the 
     rule relating to women-owned small business Federal contract 
     assistance procedures published in the Federal Register on 
     October 1, 2008 (73 Fed. Reg. 56940 et seq.).

                               CHAPTER 5

                    DEPARTMENT OF HOMELAND SECURITY

                   U.S. Customs and Border Protection


        Border Security, Fencing, Infrastructure, and Technology

       For an additional amount for ``Border Security, Fencing, 
     Infrastructure, and Technology'', $303,000,000, to remain 
     available until expended; of which not less that $215,000,000 
     shall be for development and deployment of border security 
     technology on the Southwest border; and of which not less 
     than $88,000,000 shall be for procurement and deployment of 
     tactical communications equipment and land mobile radios for 
     the U.S. Border Patrol.


                              Construction

       For an additional amount for ``Construction'', 
     $100,000,000, to remain available until expended, to repair 
     and construct inspection facilities at land border ports of 
     entry.

                 Transportation Security Administration


                           Aviation Security

       For an additional amount for ``Aviation Security'', 
     $500,000,000, to remain available until expended; of which 
     $300,000,000 shall be for procurement and installation of 
     checked baggage explosives detection systems; and of which 
     $200,000,000 shall be for checkpoint explosives detection 
     equipment: Provided, That no later than 90 days after the 
     date of enactment of this Act, the Secretary of Homeland 
     Security shall provide the Committees on Appropriations of 
     the Senate and the House of Representatives a plan for the 
     expenditure of these funds.

                              Coast Guard


              Acquisition, Construction, and Improvements

       For an additional amount for ``Acquisition, Construction, 
     and Improvements'', $1,220,000,000, to remain available until 
     expended; of which $925,000,000 shall be for the acquisition 
     of a new polar icebreaker or for necessary expenses related 
     to the service life extension of existing Coast Guard polar 
     icebreakers; of which $150,000,000 shall be for the National 
     Security Cutter program; and of which $145,000,000 shall be 
     for shore facilities and aids to navigation facilities: 
     Provided, That no later than 90 days after the date of 
     enactment of this Act, the Secretary of Homeland Security 
     shall provide the Committees on Appropriations of the Senate 
     and the House of Representatives a plan for the expenditure 
     of these funds.


                         Alteration of Bridges

       For an additional amount for alteration or removal of 
     obstructive bridges, as authorized by section 6 of the 
     Truman-Hobbs Act (33 U.S.C. 516), $90,000,000, to remain 
     available until expended: Provided, That no later than 90 
     days after the date of enactment of this Act, the Secretary 
     of Homeland Security shall provide the Committees on 
     Appropriations of the Senate and the House of Representatives 
     an expenditure plan detailing how the Coast Guard will 
     allocate the additional funds appropriated under this heading 
     for bridges ready to proceed to construction.

                  Federal Emergency Management Agency


            DISASTER ASSISTANCE DIRECT LOAN PROGRAM ACCOUNT

       Notwithstanding section 417(b) of the Robert T. Stafford 
     Disaster Relief and Emergency Assistance Act, the amount of 
     any such loan issued pursuant to this section for major 
     disasters occurring in calendar year 2008 may exceed 
     $5,000,000, and may be equal to not more than 50 percent of 
     the annual operating budget of the local government in any 
     case in which that local government has suffered a loss of 25 
     percent or more in tax revenues.

                Federal Law Enforcement Training Center


     Acquisition, Construction, Improvements, and Related Expenses

       For an additional amount for ``Acquisition, Construction, 
     Improvements, and Related

[[Page 24127]]

     Expenses'', $9,000,000, to remain available until expended, 
     for security upgrades to the Federal Law Enforcement Training 
     Center's border-related training facilities.

                               CHAPTER 6

                       DEPARTMENT OF THE INTERIOR

                       Bureau of Land Management


                              Construction

       For an additional amount for ``Construction'', 
     $147,000,000, to remain available until September 30, 2010, 
     of which $114,000,000 shall be for deferred maintenance 
     projects, including the repair of earthen dams; of which 
     $15,000,000 shall be for restoration and rehabilitation of 
     trails; and of which $18,000,000 shall be for remediation of 
     abandoned mine sites: Provided, That the Secretary shall 
     utilize to the maximum extent possible the Public Land Corps, 
     the Youth Conservation Corps, and other related partnerships 
     with State, local, tribal or nonprofit groups that serve 
     young adults.

                United States Fish and Wildlife Service


                              Construction

       For an additional amount for ``Construction'', $88,000,000, 
     to remain available until September 30, 2010, for refuge and 
     hatchery deferred maintenance projects: Provided, That the 
     Secretary shall utilize to the maximum extent possible the 
     Public Land Corps, the Youth Conservation Corps, and other 
     related partnerships with State, local, tribal or nonprofit 
     groups that serve young adults.

                         National Park Service


                              Construction

       For an additional amount for ``Construction'', 
     $105,000,000, to remain available until September 30, 2010, 
     of which $45,000,000 shall be for deferred maintenance 
     projects; of which $45,000,000 shall be for restoration and 
     rehabilitation of trails; and of which $15,000,000 shall be 
     for remediation of abandoned mine sites: Provided, That the 
     Secretary shall utilize to the maximum extent possible the 
     Public Land Corps, the Youth Conservation Corps, and other 
     related partnerships with State, local, tribal or nonprofit 
     groups that serve young adults.

                    United States Geological Survey


                 Surveys, Investigations, and Research

       For an additional amount for ``Surveys, Investigations, and 
     Research'', $84,000,000, to remain available until September 
     30, 2010, for repair and restoration of facilities and other 
     deferred maintenance projects.

                        Bureau of Indian Affairs


                              Construction

       For an additional amount for ``Construction'', 
     $200,000,000, to remain available until September 30, 2010, 
     for repair and restoration of bureau-operated facilities and 
     other deferred maintenance projects.

                    ENVIRONMENTAL PROTECTION AGENCY

                   State and Tribal Assistance Grants

       For an additional amount for ``State and Tribal Assistance 
     Grants'', $2,500,000,000, to remain available until expended, 
     of which $1,750,000,000 shall be for making capitalization 
     grants for the Clean Water State Revolving Funds under title 
     VI of the Federal Water Pollution Control Act, as amended; 
     and of which $750,000,000 shall be for making capitalization 
     grants for the Drinking Water State Revolving Funds under 
     section 1452 of the Safe Drinking Water Act, as amended: 
     Provided, That none of these funds shall be subject to State 
     matching requirements: Provided further, That of the amount 
     made available for the Clean Water State Revolving Fund, not 
     to exceed 1.5 percent may be set aside for grants to tribes 
     pursuant to section 518(c) of the Federal Water Pollution 
     Water Control Act.

                       DEPARTMENT OF AGRICULTURE

                             Forest Service


                  Capital Improvement and Maintenance

       For an additional amount for ``Capital Improvement and 
     Maintenance'', $425,000,000, to remain available until 
     September 30, 2010, for deferred maintenance projects, which 
     may include remediation of abandoned mine sites: Provided, 
     That the Secretary shall utilize to the maximum extent 
     possible the Public Land Corps, the Youth Conservation Corps, 
     and other related partnerships with State, local, tribal or 
     nonprofit groups that serve young adults.

                        SMITHSONIAN INSTITUTION

                           Facilities Capital

       For an additional amount for ``Facilities Capital'', 
     $93,500,000, to remain available until September 30, 2010, 
     for deferred maintenance projects.

                    GENERAL PROVISION--THIS CHAPTER

       Sec. 1601. Notwithstanding any other provision of law, 
     including section 152 of division A of H.R. 2638 (110th 
     Congress), the Consolidated Security, Disaster Assistance, 
     and Continuing Appropriations Act, 2009, the terms and 
     conditions contained in section 433 of division F of Public 
     Law 110-161 shall remain in effect for the fiscal year ending 
     September 30, 2009.

                               CHAPTER 7

                          DEPARTMENT OF LABOR

                 Employment and Training Administration


                    Training and Employment Services

       For an additional amount for ``Training and Employment 
     Services'' under the Employment and Training Administration, 
     $600,000,000, for youth activities and dislocated worker 
     activities authorized by the Workforce Investment Act of 1998 
     (``WIA''): Provided, That $300,000,000 shall be for youth 
     activities and available through June 30, 2009: Provided 
     further, That $300,000,000 shall be for dislocated worker 
     employment and training activities and available for the 
     period July 1, 2008 through June 30, 2009: Provided further, 
     That no portion of funds available under this heading in this 
     Act shall be reserved to carry out section 127(b)(1)(A), 
     section 128(a), or section 133(a) of the WIA: Provided 
     further, That the work readiness performance indicator 
     described in section 136(b)(2)(A)(ii)(I) of the WIA shall be 
     the only measure of performance used to assess the 
     effectiveness of the youth activities, and that the 
     performance indicators in section 136(b)(2)(A)(i) of the WIA 
     shall be the measures of performance used to assess the 
     effectiveness of the dislocated worker activities funded with 
     such funds: Provided further, That, notwithstanding any other 
     provision of law, additional funds for youth activities 
     provided by this Act shall be allotted as if the total amount 
     of funding available for youth activities in program year 
     2008 is less than $1,000,000,000.

                DEPARTMENT OF HEALTH AND HUMAN SERVICES

               Centers for Disease Control and Prevention


                DISEASE CONTROL, RESEARCH, AND TRAINING

       For an additional amount for ``Disease Control, Research, 
     and Training'', $46,000,000, of which $20,000,000 shall be to 
     continue and expand investigations to determine the root 
     causes of disease clusters, including but not limited to 
     polycythemia vera clusters; of which $21,000,000 shall be for 
     the prevention of and response to medical errors including 
     research, education and outreach activities; and of which 
     $5,000,000 shall be for responding to outbreaks of 
     communicable diseases related to the re-use of syringes in 
     outpatient clinics, including reimbursement of local health 
     departments for testing and genetic sequencing of persons 
     potentially exposed.

                     National Institutes of Health


                         OFFICE OF THE DIRECTOR

                     (including transfer of funds)

       For an additional amount for ``Office of the Director'', 
     $1,000,000,000, which shall be transferred to the Institutes 
     and Centers of the National Institutes of Health and to the 
     Common Fund established under section 402A(c)(1) of the 
     Public Health Service Act in proportion to the appropriations 
     otherwise made to such Institutes, Centers, and Common Fund 
     for fiscal year 2008: Provided, That funds shall be used to 
     support additional scientific research and be available for 
     the same purposes as the appropriation or fund to which 
     transferred: Provided further, That this transfer authority 
     is in addition to any other transfer authority available to 
     the National Institutes of Health: Provided further, That 
     none of these funds may be transferred to ``National 
     Institutes of Health--Buildings and Facilities'', the Center 
     for Scientific Review, the Center for Information Technology, 
     the Clinical Center, the Global Fund for HIV/AIDS, 
     Tuberculosis and Malaria, or the Office of the Director 
     (except for the transfer to the Common Fund).

                Administration for Children and Families


                Children and Families Services Programs

       For an additional amount for ``Children and Families 
     Services Programs'' for carrying out activities under 
     sections 674 through 679 of the Community Services Block 
     Grant Act, $200,000,000, of which no part shall be subject to 
     paragraph (3) of section 674(b) of such Act.

                        Administration on Aging


                        AGING SERVICES PROGRAMS

       For an additional amount for ``Aging Services Programs'', 
     $60,000,000, of which $40,750,000 shall be for Congregate 
     Nutrition Services and $19,250,000 shall be for Home-
     Delivered Nutrition Services.

                        Office of the Secretary


            Public Health and Social Services Emergency Fund

                     (Including Transfer of Funds)

       For an additional amount for the ``Public Health and Social 
     Services Emergency Fund'' to support activities related to 
     countering potential biological, nuclear, radiological and 
     chemical threats to civilian populations, and for other 
     public health emergencies, $542,000,000: Provided, That 
     $473,000,000 is for advanced research and development of 
     medical countermeasures and ancillary products: Provided 
     further, That $50,000,000 is available to support the 
     delivery of medical countermeasures, of which up to 
     $20,000,000 may be made available to the United States Postal 
     Service to support such delivery.
       For an additional amount for the ``Public Health and Social 
     Services Emergency Fund'' to prepare for and respond to an 
     influenza pandemic, $363,000,000, for activities including 
     the development and purchase of vaccine, antivirals, 
     necessary medical supplies, diagnostics, and other 
     surveillance tools: Provided, That products purchased

[[Page 24128]]

     with these funds may, at the discretion of the Secretary, be 
     deposited in the Strategic National Stockpile: Provided 
     further, That notwithstanding section 496(b) of the Public 
     Health Service Act, funds may be used for the construction or 
     renovation of privately owned facilities for the production 
     of pandemic influenza vaccines and other biologics, where the 
     Secretary finds such a contract necessary to secure 
     sufficient supplies of such vaccines or biologics: Provided 
     further, That funds appropriated herein may be transferred to 
     other appropriation accounts of the Department of Health and 
     Human Services, as determined by the Secretary to be 
     appropriate, to be used for the purposes specified in this 
     sentence.

                        DEPARTMENT OF EDUCATION

       For carrying out section 1702 of this Act, $2,500,000,000, 
     which shall be available for obligation from July 1, 2008 
     through September 30, 2009.


                      School Improvement Programs

       For an additional amount for ``School Improvement 
     Programs'', $36,000,000, for carrying out activities 
     authorized by subtitle B of title VII of the McKinney-Vento 
     Homeless Assistance Act: Provided, That the Secretary shall 
     make such funds available on a competitive basis to local 
     educational agencies that demonstrate a high need for such 
     assistance.

                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 1701. Report on the Impact of Past and Future Minimum 
     Wage Increases. (a) In General.--Section 8104 of the U.S. 
     Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq 
     Accountability Appropriations Act, 2007 (Public Law 110-28; 
     121 Stat. 189) is amended to read as follows:

     ``SEC. 8104. REPORT ON THE IMPACT OF PAST AND FUTURE MINIMUM 
                   WAGE INCREASES.

       ``(a) Study.--Beginning on the date that is 60 days after 
     the date of enactment of this Act, and every year thereafter 
     until the minimum wage in the respective territory is $7.25 
     per hour, the Government Accountability Office shall conduct 
     a study to--
       ``(1) assess the impact of the minimum wage increases that 
     occurred in American Samoa and the Commonwealth of the 
     Northern Mariana Islands in 2007 and 2008, as required under 
     Public Law 110-28, on the rates of employment and the living 
     standards of workers, with full consideration of the other 
     factors that impact rates of employment and the living 
     standards of workers such as inflation in the cost of food, 
     energy, and other commodities; and
       ``(2) estimate the impact of any further wage increases on 
     rates of employment and the living standards of workers in 
     American Samoa and the Commonwealth of the Northern Mariana 
     Islands, with full consideration of the other factors that 
     may impact the rates of employment and the living standards 
     of workers, including assessing how the profitability of 
     major private sector firms may be impacted by wage increases 
     in comparison to other factors such as energy costs and the 
     value of tax benefits.
       ``(b) Report.--No earlier than March 15, 2009, and not 
     later than April 15, 2009, the Government Accountability 
     Office shall transmit its first report to Congress concerning 
     the findings of the study required under subsection (a). The 
     Government Accountability Office shall transmit any 
     subsequent reports to Congress concerning the findings of a 
     study required by subsection (a) between March 15 and April 
     15 of each year.
       ``(c) Economic Information.--To provide sufficient economic 
     data for the conduct of the study under subsection (a)--
       ``(1) the Department of Labor shall include and separately 
     report on American Samoa and the Commonwealth of the Northern 
     Mariana Islands in its household surveys and establishment 
     surveys;
       ``(2) the Bureau of Economic Analysis of the Department of 
     Commerce shall include and separately report on American 
     Samoa and the Commonwealth of the Northern Mariana Islands in 
     its gross domestic product data; and
       ``(3) the Bureau of the Census of the Department of 
     Commerce shall include and separately report on American 
     Samoa and the Commonwealth of the Northern Mariana Islands in 
     its population estimates and demographic profiles from the 
     American Community Survey,

     with the same regularity and to the same extent as the 
     Department or each Bureau collects and reports such data for 
     the 50 States. In the event that the inclusion of American 
     Samoa and the Commonwealth of the Northern Mariana Islands in 
     such surveys and data compilations requires time to structure 
     and implement, the Department of Labor, the Bureau of 
     Economic Analysis, and the Bureau of the Census (as the case 
     may be) shall in the interim annually report the best 
     available data that can feasibly be secured with respect to 
     such territories. Such interim reports shall describe the 
     steps the Department or the respective Bureau will take to 
     improve future data collection in the territories to achieve 
     comparability with the data collected in the United States. 
     The Department of Labor, the Bureau of Economic Analysis, and 
     the Bureau of the Census, together with the Department of the 
     Interior, shall coordinate their efforts to achieve such 
     improvements.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on the date of enactment of this Act.
       Sec. 1702. Grants for School Renovation. (a) Allocation of 
     Funds.--
       (1) Reservation.--From the funds appropriated to carry out 
     this section for a fiscal year, the Secretary shall reserve 1 
     percent to provide assistance under this section to the 
     outlying areas and for payments to the Secretary of the 
     Interior to provide assistance consistent with this section 
     to schools funded by the Bureau of Indian Education. Funds 
     reserved under this subsection shall be distributed by the 
     Secretary among the outlying areas and the Secretary of the 
     Interior on the basis of their relative need, as determined 
     by the Secretary, in accordance with the purposes of this 
     section.
       (2) Allocation to state educational agencies.--After making 
     the reservation described in paragraph (1), from the 
     remainder of the appropriated funds described in paragraph 
     (1), the Secretary shall allocate to each State educational 
     agency serving a State an amount that bears the same relation 
     to the remainder for the fiscal year as the amount the State 
     received under part A of title I of such Act for fiscal year 
     2008 bears to the amount all States received under such part 
     for fiscal year 2008, except that no such State educational 
     agency shall receive less than 0.5 percent of the amount 
     allocated under this paragraph.
       (b) Within-State Allocations.--
       (1) Administrative costs.--
       (A) State educational agency administration.--Except as 
     provided in subparagraph (C), each State educational agency 
     may reserve not more than 1 percent of its allocation under 
     subsection (a)(2) or $1,000,000, whichever is less, for the 
     purpose of administering the distribution of grants under 
     this subsection.
       (B) Required uses.--The State educational agency shall use 
     a portion of the reserved funds to establish or support a 
     State-level database of public school facility inventory, 
     condition, design, and utilization.
       (C) State entity administration.--If the State educational 
     agency transfers funds to a State entity described in 
     paragraph (2)(A), the State educational agency shall transfer 
     to such entity 0.75 of the amount reserved under this 
     paragraph for the purpose of administering the distribution 
     of grants under this subsection.
       (2) Reservation for competitive school repair and 
     renovation grants to local educational agencies.--
       (A) In general.--Subject to the reservation under paragraph 
     (1), of the funds allocated to a State educational agency 
     under subsection (a)(2), the State educational agency shall 
     distribute 100 percent of such funds to local educational 
     agencies or, if such State educational agency is not 
     responsible for the financing of education facilities, the 
     State educational agency shall transfer such funds to the 
     State entity responsible for the financing of education 
     facilities (referred to in this section as the ``State 
     entity'') for distribution by such entity to local 
     educational agencies in accordance with this paragraph, to be 
     used, consistent with subsection (c), for school repair and 
     renovation.
       (B) Competitive grants to local educational agencies.--The 
     State educational agency or State entity shall carry out a 
     program awarding grants, on a competitive basis, to local 
     educational agencies for the purpose described in 
     subparagraph (A). Of the total amount available for 
     distribution to local educational agencies under this 
     paragraph, the State educational agency or State entity, 
     shall, in carrying out the grant competition--
       (i) award to high-need local educational agencies, in the 
     aggregate, at least an amount which bears the same 
     relationship to such total amount as the aggregate amount 
     such high-need local educational agencies received under part 
     A of title I of the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 6311 et seq.) for fiscal year 2008 bears to 
     the aggregate amount received for such fiscal year under such 
     part by all local educational agencies in the State;
       (ii) award to rural local educational agencies in the 
     State, in the aggregate, at least an amount which bears the 
     same relationship to such total amount as the aggregate 
     amount such rural local educational agencies received under 
     such part for fiscal year 2008 bears to the aggregate amount 
     received for such fiscal year under such part by all local 
     educational agencies in the State; and
       (iii) award the remaining funds to local educational 
     agencies not receiving an award under clause (i) or (ii), 
     including high-need local educational agencies and rural 
     local educational agencies that did not receive such an 
     award.
       (C) Criteria for awarding grants.--In awarding competitive 
     grants under this paragraph, a State educational agency or 
     State entity shall take into account the following criteria:
       (i) Percentage of poor children.--The percentage of poor 
     children 5 to 17 years of age, inclusive, in a local 
     educational agency.
       (ii) Need for school repair and renovation.--The need of a 
     local educational agency for school repair and renovation, as 
     demonstrated by the condition of the public school facilities 
     of the local educational agency.
       (iii) Fiscal capacity.--The fiscal capacity of a local 
     educational agency to meet the

[[Page 24129]]

     needs of the local educational agency for repair and 
     renovation of public school facilities without assistance 
     under this section, including the ability of the local 
     educational agency to raise funds through the use of local 
     bonding capacity and otherwise.
       (iv) Charter school access to funding.--In the case of a 
     local educational agency that proposes to fund a repair or 
     renovation project for a charter school, the extent to which 
     the school has access to funding for the project through the 
     financing methods available to other public schools or local 
     educational agencies in the State.
       (v) Likelihood of maintaining the facility.--The likelihood 
     that the local educational agency will maintain, in good 
     condition, any facility whose repair or renovation is 
     assisted under this section.
       (D) Matching requirement.--
       (i) In general.--A State educational agency or State entity 
     shall require local educational agencies to match funds 
     awarded under this subsection.
       (ii) Match amount.--The amount of a match described in 
     clause (i) may be established by using a sliding scale that 
     takes into account the relative poverty of the population 
     served by the local educational agency.
       (c) Rules Applicable to School Repair and Renovation.--With 
     respect to funds made available under this section that are 
     used for school repair and renovation, the following rules 
     shall apply:
       (1) Permissible uses of funds.--School repair and 
     renovation shall be limited to 1 or more of the following:
       (A) Emergency repairs or renovations.--Emergency repairs or 
     renovations to public school facilities only to ensure the 
     health and safety of students and staff, including--
       (i) repairing, replacing, or installing roofs, windows, 
     doors, electrical wiring, plumbing systems, or sewage 
     systems;
       (ii) repairing, replacing, or installing heating, 
     ventilation, or air conditioning systems (including 
     insulation); and
       (iii) bringing public schools into compliance with fire and 
     safety codes.
       (B) Modifications for compliance with the americans with 
     disabilities act of 1990.--School facilities modifications 
     necessary to render public school facilities accessible in 
     order to comply with the Americans with Disabilities Act of 
     1990 (42 U.S.C. 12101 et seq.).
       (C) Modifications for compliance with section 504 of the 
     rehabilitation act of 1973.--School facilities modifications 
     necessary to render public school facilities accessible in 
     order to comply with section 504 of the Rehabilitation Act of 
     1973 (29 U.S.C. 794).
       (D) Asbestos abatement or removal.--Asbestos abatement or 
     removal from public school facilities.
       (E) Charter school building infrastructure.--Renovation and 
     repair needs related to the building infrastructure of a 
     charter school.
       (2) Impermissible uses of funds.--No funds received under 
     this section may be used for--
       (A) payment of maintenance costs in connection with any 
     projects constructed in whole or part with Federal funds 
     provided under this section;
       (B) the construction of new facilities; or
       (C) stadiums or other facilities primarily used for 
     athletic contests or exhibitions or other events for which 
     admission is charged to the general public.
       (3) Supplement, not supplant.--Excluding the uses described 
     in subparagraphs (B) and (C) of paragraph (1), a local 
     educational agency shall use Federal funds subject to this 
     subsection only to supplement the amount of funds that would, 
     in the absence of such Federal funds, be made available from 
     non-Federal sources for school repair and renovation.
       (d) Qualified Bidders; Competition.--Each local educational 
     agency that receives funds under this section shall ensure 
     that, if the local educational agency carries out repair or 
     renovation through a contract, any such contract process 
     ensures the maximum number of qualified bidders, including 
     small, minority, and women-owned businesses, through full and 
     open competition.
       (e) Reporting.--
       (1) Local reporting.--Each local educational agency 
     receiving funds made available under subsection (a)(2) shall 
     submit a report to the State educational agency, at such time 
     as the State educational agency may require, describing the 
     use of such funds for school repair and renovation.
       (2) State reporting.--Each State educational agency 
     receiving funds made available under subsection (a)(2) shall 
     submit to the Secretary, not later than December 31, 2010, a 
     report on the use of funds received under subsection (a)(2) 
     and made available to local educational agencies for school 
     repair and renovation.
       (f) Reallocation.--If a State educational agency does not 
     apply for an allocation of funds under subsection (a)(2) for 
     a fiscal year, or does not use its entire allocation for such 
     fiscal year, then the Secretary may reallocate the amount of 
     the State educational agency's allocation (or the remainder 
     thereof, as the case may be) for such fiscal year to the 
     remaining State educational agencies in accordance with 
     subsection (a)(2).
       (g) Definitions.--For purposes of this section:
       (1) Charter school.--The term ``charter school'' has the 
     meaning given the term in section 5210 of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7221i).
       (2) High-need local educational agency.--The term ``high-
     need local educational agency'' has the meaning given the 
     term in section 2102(3)(A) of such Act (20 U.S.C. 
     6602(3)(A)).
       (3) Local educational agency; secretary; state educational 
     agency.--The terms ``local educational agency'', 
     ``Secretary'', and ``State educational agency'' have the 
     meanings given the terms in section 9101 of such Act (20 
     U.S.C. 7801).
       (4) Outlying area.--The term ``outlying area'' has the 
     meaning given the term in section 1121(c) of such Act (20 
     U.S.C. 6331(c)).
       (5) Poor children.--The term ``poor children'' refers to 
     children 5 to 17 years of age, inclusive, who are from 
     families with incomes below the poverty line (as defined by 
     the Office of Management and Budget and revised annually in 
     accordance with section 673(2) of the Community Services 
     Block Grant Act (42 U.S.C. 9902(2)) applicable to a family of 
     the size involved for the most recent fiscal year for which 
     data satisfactory to the Secretary are available.
       (6) Rural local educational agency.--The term ``rural local 
     educational agency'' means a local educational agency that 
     the State determines is located in a rural area using 
     objective data and a commonly employed definition of the term 
     ``rural''.
       (7) State.--The term ``State'' means each of the several 
     states of the United States, the District of Columbia, and 
     the Commonwealth of Puerto Rico.
       Sec. 1703. Restoration of Access to Nominal Drug Pricing 
     for Certain Clinics and Health Centers. (a) In General.--
     Section 1927(c)(1)(D) of the Social Security Act (42 U.S.C. 
     Sec. 1396r-8(c)(1)(D)), as added by section 6001(d)(2) of the 
     Deficit Reduction Act of 2005 (Public Law 109-171), is 
     amended--
       (1) in clause (i)--
       (A) by redesignating subclause (IV) as subclause (VI); and
       (B) by inserting after subclause (III) the following:

       ``(IV) An entity that--

       ``(aa) is described in section 501(c)(3) of the Internal 
     Revenue Code of 1986 and exempt from tax under section 501(a) 
     of such Act or is State-owned or operated; and
       ``(bb) would be a covered entity described in section 
     340(B)(a)(4) of the Public Health Service Act insofar as the 
     entity provides the same type of services to the same type of 
     populations as a covered entity described in such section 
     provides, but does not receive funding under a provision of 
     law referred to in such section.

       ``(V) A public or nonprofit entity, or an entity based at 
     an institution of higher learning whose primary purpose is to 
     provide health care services to students of that institution, 
     that provides a service or services described under section 
     1001(a) of the Public Health Service Act.''; and

         (2) by adding at the end the following new clause:
       ``(iv) Rule of construction.--Nothing in this subparagraph 
     shall be construed to alter any existing statutory or 
     regulatory prohibition on services with respect to an entity 
     described in subclause (IV) or (V) of clause (i), including 
     the prohibition set forth in section 1008 of the Public 
     Health Service Act.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect as if included in the amendment made by 
     section 6001(d)(2) of the Deficit Reduction Act of 2005.

                               CHAPTER 8

                         DEPARTMENT OF DEFENSE

              Military Construction, Navy and Marine Corps

       For an additional amount for ``Military Construction, Navy 
     and Marine Corps'', $75,000,000, to remain available until 
     expended, for the planning, design, and construction of child 
     development centers: Provided, That notwithstanding any other 
     provision of law, such funds may be obligated and expended to 
     carry out planning and design and construction not otherwise 
     authorized by law: Provided further, That within 30 days of 
     enactment of this Act, the Secretary of the Navy shall submit 
     to the Committees on Appropriations of both Houses of 
     Congress an expenditure plan for funds provided under this 
     heading.

                   Family Housing Construction, Army

       For an additional amount for ``Family Housing Construction, 
     Army'', $50,000,000, to remain available until expended, for 
     military family housing construction and improvements: 
     Provided, That notwithstanding any other provision of law, 
     such funds may be obligated and expended to carry out 
     planning and design and construction not otherwise authorized 
     by law: Provided further, That within 30 days of enactment of 
     this Act, the Secretary of the Army shall submit to the 
     Committees on Appropriations of both Houses of Congress an 
     expenditure plan for funds provided under this heading.

                 Family Housing Construction, Air Force

       For an additional amount for ``Family Housing Construction, 
     Air Force'',

[[Page 24130]]

     $125,000,000, to remain available until expended, for 
     military family housing construction and improvements: 
     Provided, That notwithstanding any other provision of law, 
     such funds may be obligated and expended to carry out 
     planning and design and construction not otherwise authorized 
     by law: Provided further, That within 30 days of enactment of 
     this Act, the Secretary of the Air Force shall submit to the 
     Committees on Appropriations of both Houses of Congress an 
     expenditure plan for funds provided under this heading.

                    GENERAL PROVISION--THIS CHAPTER

       Sec. 1801. Payments to Eligible Persons Who Served in the 
     United States Army Forces in the Far East During World War 
     II. (a) Findings.--Congress makes the following findings:
       (1) The Philippine islands became a United States 
     possession in 1898 when they were ceded from Spain following 
     the Spanish-American War.
       (2) During World War II, Filipinos served in a variety of 
     units, some of which came under the direct control of the 
     United States Armed Forces.
       (3) The regular Philippine Scouts, the new Philippine 
     Scouts, the Guerilla Services, and more than 100,000 members 
     of the Philippine Commonwealth Army were called into the 
     service of the United States Armed Forces of the Far East on 
     July 26, 1941, by an executive order of President Franklin D. 
     Roosevelt.
       (4) Even after hostilities had ceased, wartime service of 
     the new Philippine Scouts continued as a matter of law until 
     the end of 1946, and the force gradually disbanded and was 
     disestablished in 1950.
       (5) Filipino veterans who were granted benefits prior to 
     the enactment of the so-called Rescissions Acts of 1946 
     (Public Laws 79-301 and 79-391) currently receive full 
     benefits under laws administered by the Secretary of Veterans 
     Affairs, but under section 107 of title 38, United States 
     Code, the service of certain other Filipino veterans is 
     deemed not to be active service for purposes of such laws.
       (6) These other Filipino veterans only receive certain 
     benefits under title 38, United States Code, and, depending 
     on where they legally reside, are paid such benefit amounts 
     at reduced rates.
       (7) The benefits such veterans receive include service-
     connected compensation benefits paid under chapter 11 of 
     title 38, United States Code, dependency indemnity 
     compensation survivor benefits paid under chapter 13 of title 
     38, United States Code, and burial benefits under chapters 23 
     and 24 of title 38, United States Code, and such benefits are 
     paid to beneficiaries at the rate of $0.50 per dollar 
     authorized, unless they lawfully reside in the United States.
       (8) Dependents' educational assistance under chapter 35 of 
     title 38, United States Code, is also payable for the 
     dependents of such veterans at the rate of $0.50 per dollar 
     authorized, regardless of the veterans' residency.
       (b) Compensation Fund.--
       (1) In general.--There is in the general fund of the 
     Treasury a fund to be known as the ``Filipino Veterans Equity 
     Compensation Fund'' (in this section referred to as the 
     ``compensation fund'').
       (2) Availability of funds.--Subject to the availability of 
     appropriations for such purpose, amounts in the compensation 
     fund shall be available to the Secretary of Veterans Affairs 
     without fiscal year limitation to make payments to eligible 
     persons in accordance with this section.
       (c) Payments.--
       (1) In general.--During the one-year period beginning on 
     the date of the enactment of this Act, the Secretary shall 
     make a payment to an eligible person who, during such period, 
     submits to the Secretary an application containing such 
     information and assurances as the Secretary may require.
       (2) Payment to surviving spouse.--If an eligible person 
     dies during the period described in paragraph (1) before 
     payment is made to the eligible person under this section, 
     the payment otherwise to be made to the eligible person under 
     this section shall be made instead to the surviving spouse of 
     the eligible person.
       (d) Eligible Persons.--An eligible person is any person who 
     served--
       (1) before July 1, 1946, in the organized military forces 
     of the Government of the Commonwealth of the Philippines, 
     while such forces were in the service of the Armed Forces of 
     the United States pursuant to the military order of the 
     President dated July 26, 1941, including among such military 
     forces organized guerrilla forces under commanders appointed, 
     designated, or subsequently recognized by the Commander in 
     Chief, Southwest Pacific Area, or other competent authority 
     in the Army of the United States; or
       (2) in the Philippine Scouts under section 14 of the Armed 
     Forces Voluntary Recruitment Act of 1945 (59 Stat. 538).
       (e) Payment Amounts.--Each payment under this section shall 
     be--
       (1) in the case of an eligible person who is not a citizen 
     of the United States, in the amount of $9,000; and
       (2) in the case of an eligible person who is a citizen of 
     the United States, in the amount of $15,000.
       (f) Limitation.--The Secretary may not make more than one 
     payment under this section for each person described in 
     subsection (d).
       (g) Clarification of Treatment of Payments Under Certain 
     Laws.--Amounts paid to a person under this section--
       (1) shall be treated for purposes of the internal revenue 
     laws of the United States as damages for human suffering; and
       (2) shall not be included in income or resources for 
     purposes of determining--
       (A) eligibility of an individual to receive benefits 
     described in section 3803(c)(2)(C) of title 31, United States 
     Code, or the amount of such benefits; or
       (B) eligibility of an individual to receive benefits under 
     title II or VIII of the Social Security Act, or the amount of 
     such benefits.
       (h) Release.--
       (1) In general.--Except as provided in paragraph (2), the 
     acceptance by an eligible person of a payment under this 
     section shall be final, and shall constitute a complete 
     release of any claim against the United States by reason of 
     any service described in subsection (d).
       (2) Payment of previously awarded benefits.--Nothing in 
     this section shall prohibit a person from receiving any 
     benefit to which the person is entitled based on a claim for 
     which benefits are awarded before the date of the enactment 
     of this Act, including on a claim for medical care and 
     nursing care benefits, burial benefits, and any other 
     benefits to which the person is entitled by law.
       (i) Recognition of Service.--The service of a person as 
     described in subsection (d) is hereby recognized as active 
     military service in the Armed Forces for purposes of, and to 
     the extent provided in, this section.
       (j) Reports.--The Secretary shall include, in documents 
     submitted to Congress by the Secretary in support of the 
     President's budget for each fiscal year in which payments are 
     made from the compensation fund under this section, detailed 
     information on the operation of the compensation fund, 
     including the number of applicants, the number of eligible 
     persons receiving benefits, the amounts paid out of the 
     compensation fund, and the administration of the compensation 
     fund.
       (k) Regulations.--Not later than 90 days after the date of 
     the enactment of this Act, the Secretary shall prescribe 
     regulations to carry out this section.
       (l) Authorization of Appropriation.--There is authorized to 
     be appropriated to the compensation fund $198,000,000, to 
     remain available until expended, to make payments under this 
     section.

                               CHAPTER 9

                      DEPARTMENT OF TRANSPORTATION

                    Federal Aviation Administration


        SUPPLEMENTAL DISCRETIONARY GRANTS FOR AIRPORT INVESTMENT

       For an additional amount for capital expenditures 
     authorized under section 47102(3) of title 49, United States 
     Code, $500,000,000: Provided, That the Secretary of 
     Transportation shall distribute funds provided under this 
     heading as discretionary grants to airports that demonstrate 
     to his or her satisfaction their ability to obligate these 
     funds within 180 days of the date of such distribution and 
     shall serve to supplement and not supplant planned 
     expenditures from airport-generated revenues or from other 
     State and local sources on such activities: Provided further, 
     That no funds provided under this heading shall be used for 
     activities not identified on an airport layout plan: Provided 
     further, That the Federal share payable of the costs for 
     which a grant is made under this heading shall be 100 
     percent: Provided further, That the amount made available 
     under this heading shall not be subject to any limitation on 
     obligations for the Grants-in-Aid for Airports program set 
     forth in any Act: Provided further, That projects conducted 
     using funds provided under this heading must comply with the 
     requirements of subchapter IV of chapter 31 of title 40, 
     United States Code.

                     Federal Highway Administration


    Supplemental Grants to States for Federal-Aid Highway Investment

       For an additional amount for restoration, repair, 
     construction and other activities eligible under paragraph 
     (b) of section 133 of title 23, United States Code, 
     $10,000,000,000: Provided, That the Secretary of 
     Transportation shall transfer $2,000,000 to the Inspector 
     General of the Department of Transportation for costs 
     associated with audits and investigations of projects and 
     activities carried out with funds made available to the 
     Department of Transportation in this Act: Provided further, 
     That after making such transfer, the remaining funds provided 
     under this heading shall be apportioned to States using the 
     formula set forth in section 104(b)(3) of such title: 
     Provided further, That funding provided under this heading 
     shall be in addition to any and all funds provided for fiscal 
     years 2008 and 2009 in any other Act for ``Federal-aid 
     Highways'' and shall not affect the distribution of funds 
     provided for ``Federal-aid Highways'' in any other Act: 
     Provided further, That the Secretary of Transportation shall 
     institute measures to ensure that funds provided under this 
     heading shall be obligated within 180 days of the date of 
     their apportionment: Provided further, That 180 days 
     following the date of such apportionment, the Secretary shall 
     withdraw and redistribute any unobligated funds utilizing 
     whatever method he or she deems appropriate to

[[Page 24131]]

     ensure that all funds provided under this heading shall be 
     obligated promptly: Provided further, That the Federal share 
     payable on account of any project or activity carried out 
     with funds made available under this heading shall be 100 
     percent of the total cost thereof: Provided further, That the 
     amount made available under this heading shall not be subject 
     to any limitation on obligations for Federal-aid highways or 
     highway safety construction programs set forth in any Act: 
     Provided further, That projects conducted using funds 
     provided under this heading must comply with the requirements 
     of subchapter IV of chapter 31 of title 40, United States 
     Code: Provided further, That for the purposes of the 
     definition of States for this paragraph, sections 101(a)(32) 
     of title 23, United States Code, shall apply.


   Supplemental Grants to States for Ferry Transportation Investment

       For an additional amount for capital expenditures eligible 
     under section 147 of title 23, United States Code, 
     $60,000,000: Provided, That the Secretary of Transportation 
     shall distribute funds provided under this heading as 
     discretionary grants to States, with the highest priority 
     given to those projects that demonstrate to his or her 
     satisfaction their ability to obligate these funds within 180 
     days of the date of such distribution: Provided further, That 
     the Federal share payable of the costs for which a grant is 
     made under this heading shall be 100 percent: Provided 
     further, That the amount made available under this heading 
     shall not be subject to any limitation on obligations for the 
     Federal-aid highways or highway safety construction programs 
     set forth in any Act: Provided further, That projects 
     conducted using funds provided under this heading must comply 
     with the requirements of subchapter IV of chapter 31 of title 
     40, United States Code.

                    Federal Railroad Administration


   Supplemental Grants to States for Intercity Passenger Rail Service

       For an additional amount for grants to States to pay for 
     the cost of projects described in paragraph (2)(A) and (2)(B) 
     of section 24401 and subsection (b) of section 24105 of title 
     49, United States Code, $100,000,000: Provided, That to be 
     eligible for assistance under this paragraph, the specific 
     project must be on the Statewide Transportation Improvement 
     Plan at the time of the application to qualify: Provided 
     further, That the Secretary of Transportation shall give 
     priority to projects that demonstrate an ability to obligate 
     funds within 180 days of the date of enactment of this Act 
     and to projects that improve the safety and reliability of 
     intercity passenger trains: Provided further, That the 
     Federal share payable of the costs for which a grant is made 
     under this heading shall be 100 percent: Provided further, 
     That projects conducted using funds provided under this 
     heading must comply with the requirements of subchapter IV of 
     chapter 31 of title 40, United States Code.


    SUPPLEMENTAL CAPITAL GRANTS TO THE NATIONAL RAILROAD PASSENGER 
                              CORPORATION

       For an additional amount for the immediate investment in 
     capital projects necessary to maintain and improve national 
     intercity passenger rail service, $400,000,000: Provided, 
     That funds made available under this heading shall be 
     allocated directly to the corporation for the purpose of 
     immediate investment in capital projects including the 
     rehabilitation of rolling stock for the purpose of expanding 
     passenger rail capacity: Provided further, that the Board of 
     Directors shall take measures to ensure that funds provided 
     under this heading shall be obligated within 180 days of the 
     enactment of this Act and shall serve to supplement and not 
     supplant planned expenditures for such activities from other 
     Federal, State, local and corporate sources: Provided 
     further, That said Board of Directors shall certify to the 
     House and Senate Committees on Appropriations in writing 
     their compliance with the preceding proviso: Provided 
     further, That not more than 50 percent of the funds provided 
     under this heading may be used for capital projects along the 
     Northeast Corridor.

                     Federal Transit Administration


    SUPPLEMENTAL DISCRETIONARY GRANTS FOR PUBLIC TRANSIT INVESTMENT

       For an additional amount for capital expenditures 
     authorized under section 5302(a)(1) of title 49, United 
     States Code, $2,500,000,000: Provided, That the Secretary of 
     Transportation shall apportion funds provided under this 
     heading based on the formula set forth in subsections (a) 
     through (c) of section 5336 of title 49, United States Code: 
     Provided further, That the Secretary shall take such measures 
     necessary to ensure that the minimum amount of funding 
     distributed under this heading to any individual transit 
     authority shall not be less than $100,000: Provided further, 
     That the Secretary of Transportation shall institute measures 
     to ensure that funds provided under this heading shall be 
     obligated within 180 days of the date of their apportionment: 
     Provided further, That 180 days following the date of such 
     apportionment, the Secretary shall withdraw and redistribute 
     any unobligated funds utilizing whatever method he or she 
     deems appropriate to ensure that all funds provided under 
     this paragraph shall be obligated promptly: Provided further, 
     That the Secretary of Transportation shall make such funds 
     available to pay for operating expenses to the extent that a 
     transit authority demonstrates to his or her satisfaction 
     that such funds are necessary to continue current services or 
     expand such services to meet increased ridership: Provided 
     further, That the Federal share of the costs for which a 
     grant is made under this heading shall be 100 percent: 
     Provided further, That the amount made available under this 
     heading shall not be subject to any limitation on obligations 
     for transit programs set forth in any Act: Provided further, 
     That the funds appropriated under this heading shall be 
     subject to section 5333(a) of title 49, United States Code 
     but shall not be comingled with funds available under the 
     Formula and Bus Grants account.

                        Maritime Administration


         SUPPLEMENTAL GRANTS for ASSISTANCE TO SMALL SHIPYARDS

       For an additional amount to make grants to qualified 
     shipyards as authorized under section 3506 of Public Law 109-
     163 or section 54101 of title 46, United States Code, 
     $60,000,000: Provided, That the Secretary of Transportation 
     shall institute measures to ensure that funds provided under 
     this heading shall be obligated within 180 days of the date 
     of their distribution.

              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

    Supplemental Grants to Public Housing Agencies for Capital Needs

       For an additional amount for discretionary grants to public 
     housing agencies for capital expenditures permitted under 
     section 9(d)(1) of the United States Housing Act of 1937, as 
     amended, $700,000,000: Provided, That in allocating 
     discretionary grants under this paragraph, the Secretary of 
     Housing and Urban Development shall give priority 
     consideration to housing agencies that have projects that are 
     ready-to-go, as well as projects resulting in the 
     rehabilitation of vacant rental units or improved energy 
     efficiency: Provided further, That the Secretary may also 
     give priority to projects that require additional capital to 
     complete development transactions stalled by changes in the 
     low-income housing tax credit and housing bond markets: 
     Provided further, That the Secretary shall not provide any 
     additional priority to any housing agency that is under the 
     receivership of the Department and no housing agency shall 
     receive more than 5 percent of the total amount provided: 
     Provided further, That notwithstanding any other provision of 
     law, the Secretary shall institute measures to ensure that 
     funds provided under this paragraph shall be obligated within 
     180 days of the date of enactment of this Act and shall serve 
     to supplement and not supplant expenditures from other 
     Federal, State, or local sources: Provided further, That in 
     administering funds provided in this paragraph, the Secretary 
     may waive any provision of any statute or regulation that the 
     Secretary administers in connection with the obligation by 
     the Secretary or the use by the recipient of these funds 
     (except for requirements related to fair housing, 
     nondiscrimination, labor standards, and the environment), 
     upon a finding that such waiver is required to facilitate the 
     timely use of such funds.


SUPPLEMENTAL GRANTS TO PUBLIC HOUSING AGENCIES FOR EXTRAORDINARY ENERGY 
                                 COSTS

       For an additional amount for discretionary grants to public 
     housing agencies for operating expenses permitted under 
     section 9(e) of the United States Housing Act of 1937 (42 
     U.S.C. 1437g(e)), $200,000,000: Provided, That funding 
     provided under this heading shall be used to cover 
     extraordinary energy costs: Provided further, That to be 
     eligible for such grants, public housing agencies must 
     demonstrate to the satisfaction of the Secretary a 
     significant increase in energy costs associated with 
     operating and maintaining public housing: Provided further, 
     That notwithstanding any other provision of law, the 
     Secretary shall institute measures to ensure that funds 
     provided under this paragraph shall be allocated to those 
     public housing agencies most in need of such assistance and 
     that such funds shall be obligated within 180 days of the 
     date of enactment of this Act: Provided further, That in 
     administering funds provided in this paragraph, the Secretary 
     may waive any provision of any statute or regulation that the 
     Secretary administers in connection with the obligation by 
     the Secretary or the use by the recipient of these funds 
     (except for requirements related to fair housing, 
     nondiscrimination, labor standards and the environment), upon 
     a finding that such a waiver is required to facilitate the 
     timely use of such funds.


        HOUSING ASSISTANCE FOR TENANTS DISPLACED BY FORECLOSURE

       For an additional amount to provide relocation and 
     temporary housing assistance to individuals and families that 
     rent dwelling units that have been foreclosed upon, or are in 
     default and where foreclosure is imminent, $575,000,000: 
     Provided, That the Secretary of Housing and Urban Development 
     shall establish a formula to allocate amounts made available 
     under this heading to States and units of general local 
     government (as such terms are defined in section 102 of the 
     Housing and Community Development Act of 1974 (42 U.S.C. 
     5302)): Provided

[[Page 24132]]

     further, That in developing the formula, the Secretary shall 
     consider areas with the greatest need based on the number and 
     percentage of rental properties in default or delinquency and 
     the greatest number and percentage of rental properties in 
     foreclosure: Provided further, That grantees shall 
     demonstrate their ability to coordinate with local Continuums 
     of Care and their ability to serve tenants who are least 
     likely to obtain stable, affordable housing upon eviction, 
     including families with children: Provided further, That 
     funding made available under this heading may be used for 
     temporary rental assistance, first and last month's rent, 
     security deposit, case management services, or other 
     appropriate services necessary to assist eligible individuals 
     or families in finding safe and affordable permanent housing: 
     Provided further, That the Secretary shall provide notice of 
     the availability of funding provided under this heading 
     within 60 days of the enactment of this Act.

                     Federal Housing Administration


                         Information Technology

       For an additional amount to maintain, modernize and improve 
     technology systems and infrastructure for the Federal Housing 
     Administration, $36,093,000: Provided, That these funds shall 
     serve to supplement and not supplant planned expenditures for 
     the Federal Housing Administration for information technology 
     maintenance and development funding provided through the 
     Departmental Working Capital Fund.


                         Salaries and Expenses

       For an additional amount for salaries and expenses for the 
     Federal Housing Administration, $15,000,000: Provided, That 
     of the total amount provided under this paragraph, not less 
     than $13,000,000 shall be made available under the heading 
     ``Housing Personnel Compensation and Benefits'' and up to 
     $2,000,000 shall be made available under the heading 
     ``Management and Administration, Administration, Operations 
     and Management'': Provided further, That with funding 
     provided under this paragraph, the Federal Housing 
     Administration Commissioner is hereby authorized to take such 
     actions and perform such functions as necessary regarding the 
     hiring of personnel for performing functions of the Federal 
     Housing Administration within the Office of Housing.

                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 1901. Section 5309(g)(4)(A) of title 49, United States 
     Code, is amended by striking ``or an amount equivalent to the 
     last 3 fiscal years of funding allocated under subsections 
     (m)(1)(A) and (m)(2)(A)(ii)'' and inserting ``or the sum of 
     the funds available for the next three fiscal years beyond 
     the current fiscal year, assuming an annual growth of the 
     program of 10 percent''.
       Sec. 1902. No funds provided in this Act or any other Act 
     may be used by the Secretary of Transportation to take any 
     action regarding airline operations at any United States 
     commercial airport that involves:
       (1) auction, sale, lease, or the imposition of any charge 
     or fee, by the Secretary or the Federal Aviation 
     Administrator, for rights, authorization or permission by 
     them to conduct flight operations at, or in the navigable 
     airspace of, any such airport;
       (2) implementing or facilitating any such auction, sale or 
     lease, or the imposition of any such charge or fee by the 
     Secretary or the Administrator initiated prior to enactment 
     of this Act; or
       (3) the withdrawal or involuntary transfer by the Secretary 
     or Administrator of rights, authorizations or permissions to 
     operate at, or in the navigable airspace of, any such airport 
     for the purpose of the auction, sale or lease of such rights, 
     authorizations or permissions, or the imposition by the 
     Secretary or Administrator of any charge or fee for such 
     rights, authorization or permission.
       Sec. 1903. (a) Survey.--Not later than 60 days after the 
     date of enactment of this Act, the Secretary of Commerce 
     shall conduct a survey to estimate, for any area for which 
     the President declared a major disaster (as defined in 
     section 102 of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5122)) during 2008, the 
     total economic output lost, Federal assistance provided, and 
     economic revitalization funds needed to recover from the 
     major disaster. The Secretary of Commerce shall provide 
     information obtained from the survey under this paragraph to 
     the Governors of affected States and the Secretary of Housing 
     and Urban Development.
       (b) Funds.--The Secretary of Housing and Urban Development 
     shall use information provided under subsection (a) in 
     allocating funds provided under the heading ``Community 
     Planning and Development, Community Development Fund'' in 
     Public Law 110-329.

           TITLE II--NUTRITION PROGRAMS FOR ECONOMIC STIMULUS

     SEC. 2001. NUTRITION PROGRAMS FOR ECONOMIC STIMULUS.

       (a) Maximum Benefit Increase.--
       (1) In general.--Beginning with the first month that begins 
     not less than 25 days after the date of enactment of this 
     Act, the Secretary of Agriculture (referred to in this 
     section as the ``Secretary'') shall increase the cost of the 
     thrifty food plan for purposes of section 8(a) of the Food 
     and Nutrition Act of 2008 (7 U.S.C. 2017(a)) by 10 percent.
       (2) Termination of effectiveness.--The authority provided 
     by this subsection terminates and has no effect, effective on 
     October 1, 2009.
       (b) Requirements for the Secretary.--In carrying out this 
     section, the Secretary shall--
       (1) consider the benefit increase described in subsection 
     (a) to be a ``mass change'';
       (2) require a simple process for States to notify 
     households of the increase in benefits;
       (3) consider section 16(c)(3)(A) of the Food and Nutrition 
     Act of 2008 (7 U.S.C. 2025(c)(3)(A)) to apply to any errors 
     in the implementation of this section, without regard to the 
     120-day limit described in that section; and
       (4) disregard the value of benefits resulting from this 
     section in any required calculations or estimates of benefits 
     if the Secretary determines it is necessary to ensure 
     efficient administration of programs authorized under the 
     Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) or 
     other Federal programs.
       (c) State Administrative Expenses.--
       (1) In general.--For the costs of State administrative 
     expenses associated with carrying out this section, the 
     Secretary shall make available $50,000,000, to remain 
     available until expended.
       (2) Availability of funds.--Funds described in paragraph 
     (1) shall be made available to State agencies based on each 
     State's share of households that participate in the 
     supplemental nutrition assistance program established under 
     the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.).
       (3) Consolidated block grants for puerto rico and american 
     samoa.--For fiscal year 2009, the Secretary shall increase by 
     10 percent the amount available for nutrition assistance for 
     eligible households under the consolidated block grants for 
     Puerto Rico and American Samoa under section 19 of the Food 
     and Nutrition Act of 2008 (7 U.S.C. 2028).
       (d) Funding.--There are hereby appropriated to the 
     Secretary such sums as are necessary to carry out this 
     section, to remain available until September 30, 2010.

                     TITLE III--STATE FISCAL RELIEF

     SEC. 3001. TEMPORARY INCREASE OF MEDICAID FMAP.

       (a) Permitting Maintenance of Fiscal Year 2008 Fmap for 
     Fiscal Year 2009.--Subject to subsections (d), (e), and (f), 
     if the FMAP determined without regard to this section for a 
     State for fiscal year 2009 is less than the FMAP as so 
     determined for fiscal year 2008, the FMAP for the State for 
     fiscal year 2008 shall be substituted for the State's FMAP 
     for fiscal year 2009, before the application of this section.
       (b) Permitting Maintenance of Fiscal Year 2009 Fmap for 
     First Quarter of Fiscal Year 2010.--Subject to subsections 
     (d), (e), and (f), if the FMAP determined without regard to 
     this section for a State for fiscal year 2010 is less than 
     the FMAP as so determined for fiscal year 2009, the FMAP for 
     the State for fiscal year 2009 shall be substituted for the 
     State's FMAP for the first calendar quarter of fiscal year 
     2010, before the application of this section.
       (c) General 8 Percentage Points Increase for Fiscal Year 
     2009 and First Calendar Quarter of Fiscal Year 2010.--
       (1) In general.--Subject to subsections (d), (e), and (f), 
     for each State for fiscal year 2009 and for the first 
     calendar quarter of fiscal year 2010, the FMAP (taking into 
     account the application of subsections (a) and (b)) shall be 
     increased by 8.0 percentage points.
       (2) Increase in cap on medicaid payments to territories.--
     Subject to subsections (e) and (f), with respect to fiscal 
     year 2009 and the first calendar quarter of fiscal year 2010, 
     the amounts otherwise determined for Puerto Rico, the Virgin 
     Islands, Guam, the Northern Mariana Islands, and American 
     Samoa under subsections (f) and (g) of section 1108 of the 
     Social Security Act (42 U.S.C. 1308) shall each be increased 
     by an amount equal to 8.0 percent of such amounts.
       (d) Scope of Application.--The increases in the FMAP for a 
     State under this section shall apply only for purposes of 
     title XIX of the Social Security Act and shall not apply with 
     respect to--
       (1) disproportionate share hospital payments described in 
     section 1923 of such Act (42 U.S.C. 1396r-4);
       (2) payments under title IV or XXI of such Act (42 U.S.C. 
     601 et seq. and 1397aa et seq.); or
       (3) any payments under title XIX of such Act that are based 
     on the enhanced FMAP described in section 2105(b) of such Act 
     (42 U.S.C. 1397ee(b)).
       (e) State Ineligibility.--
       (1) In general.--Subject to paragraph (2), a State is not 
     eligible for an increase in its FMAP under subsection (c)(1), 
     or an increase in a cap amount under subsection (c)(2), if 
     the eligibility under its State plan under title XIX of the 
     Social Security Act (including any waiver under such title or 
     under section 1115 of such Act (42 U.S.C. 1315)) is more 
     restrictive than the eligibility under such plan (or waiver) 
     as in effect on September 1, 2008.
       (2) State reinstatement of eligibility permitted.--A State 
     that has restricted eligibility under its State plan under 
     title XIX of the Social Security Act (including any waiver 
     under such title or under section 1115

[[Page 24133]]

     of such Act (42 U.S.C. 1315)) after September 1, 2008, is no 
     longer ineligible under paragraph (1) beginning with the 
     first calendar quarter in which the State has reinstated 
     eligibility that is no more restrictive than the eligibility 
     under such plan (or waiver) as in effect on September 1, 
     2008.
       (3) Rule of construction.--Nothing in paragraph (1) or (2) 
     shall be construed as affecting a State's flexibility with 
     respect to benefits offered under the State Medicaid program 
     under title XIX of the Social Security Act (42 U.S.C. 1396 et 
     seq.) (including any waiver under such title or under section 
     1115 of such Act (42 U.S.C. 1315)).
       (f) Requirements.--
       (1) In general.--A State may not use the additional Federal 
     funds paid to the State as a result of this section for 
     purposes of increasing any reserve or rainy day fund 
     maintained by the State.
       (2) Additional requirement for certain states.--In the case 
     of a State that requires political subdivisions within the 
     State to contribute toward the non-Federal share of 
     expenditures under the State Medicaid plan required under 
     section 1902(a)(2) of the Social Security Act (42 U.S.C. 
     1396a(a)(2)), the State is not eligible for an increase in 
     its FMAP under subsection (c)(1), or an increase in a cap 
     amount under subsection (c)(2), if it requires that such 
     political subdivisions pay a greater percentage of the non-
     Federal share of such expenditures for fiscal year 2009, and 
     the first calendar quarter of fiscal year 2010, than the 
     percentage that would have been required by the State under 
     such plan on September 1, 2008, prior to application of this 
     section.
       (g) Definitions.--In this section:
       (1) FMAP.--The term ``FMAP'' means the Federal medical 
     assistance percentage, as defined in section 1905(b) of the 
     Social Security Act (42 U.S.C. 1396d(b)).
       (2) State.--The term ``State'' has the meaning given such 
     term for purposes of title XIX of the Social Security Act (42 
     U.S.C. 1396 et seq.).
       (h) Repeal.--Effective as of January 1, 2010, this section 
     is repealed.

     SEC. 3002. TEMPORARY REINSTATEMENT OF AUTHORITY TO PROVIDE 
                   FEDERAL MATCHING PAYMENTS FOR STATE SPENDING OF 
                   CHILD SUPPORT INCENTIVE PAYMENTS.

       During the period that begins on October 1, 2008, and ends 
     on September 30, 2010, section 455(a)(1) of the Social 
     Security Act (42 U.S.C. 655(a)(1)) shall be applied without 
     regard to the amendment made by section 7309(a) of the 
     Deficit Reduction Act of 2005 (Public Law 109-171, 120 Stat. 
     147).

                    TITLE IV--UNEMPLOYMENT INSURANCE

     SEC. 4001. EMERGENCY UNEMPLOYMENT COMPENSATION PROGRAM.

       (a) Additional First-Tier Benefits.--Section 4002(b)(1) of 
     the Supplemental Appropriations Act, 2008 (26 U.S.C. 3304 
     note) is amended--
       (1) in subparagraph (A), by striking ``50'' and inserting 
     ``80''; and
       (2) in subparagraph (B), by striking ``13'' and inserting 
     ``20''.
       (b) Second-Tier Benefits.--Section 4002 of the Supplemental 
     Appropriations Act, 2008 (26 U.S.C. 3304 note) is amended by 
     adding at the end the following:
       ``(c) Special Rule.--
       ``(1) In general.--If, at the time that the amount 
     established in an individual's account under subsection 
     (b)(1) is exhausted or at any time thereafter, such 
     individual's State is in an extended benefit period (as 
     determined under paragraph (2)), such account shall be 
     augmented by an amount equal to the lesser of--
       ``(A) 50 percent of the total amount of regular 
     compensation (including dependents' allowances) payable to 
     the individual during the individual's benefit year under the 
     State law, or
       ``(B) 13 times the individual's average weekly benefit 
     amount (as determined under subsection (b)(2)) for the 
     benefit year.
       ``(2) Extended benefit period.--For purposes of paragraph 
     (1), a State shall be considered to be in an extended benefit 
     period, as of any given time, if--
       ``(A) such a period is then in effect for such State under 
     the Federal-State Extended Unemployment Compensation Act of 
     1970;
       ``(B) such a period would then be in effect for such State 
     under such Act if section 203(d) of such Act--
       ``(i) were applied by substituting `4' for `5' each place 
     it appears; and
       ``(ii) did not include the requirement under paragraph 
     (1)(A) thereof; or
       ``(C) such a period would then be in effect for such State 
     under such Act if--
       ``(i) section 203(f) of such Act were applied to such State 
     (regardless of whether the State by law had provided for such 
     application); and
       ``(ii) such section 203(f)--

       ``(I) were applied by substituting `6.0' for `6.5' in 
     paragraph (1)(A)(i) thereof; and
       ``(II) did not include the requirement under paragraph 
     (1)(A)(ii) thereof.

       ``(3) Limitation.--The account of an individual may be 
     augmented not more than once under this subsection.''.
       (c) Phaseout Provisions.--Section 4007(b) of the 
     Supplemental Appropriations Act, 2008 (26 U.S.C. 3304 note) 
     is amended--
       (1) in paragraph (1), by striking ``paragraph (2),'' and 
     inserting ``paragraphs (2) and (3),''; and
       (2) by striking paragraph (2) and inserting the following:
       ``(2) No augmentation after march 31, 2009.--If the amount 
     established in an individual's account under subsection 
     (b)(1) is exhausted after March 31, 2009, then section 
     4002(c) shall not apply and such account shall not be 
     augmented under such section, regardless of whether such 
     individual's State is in an extended benefit period (as 
     determined under paragraph (2) of such section).
       ``(3) Termination.--No compensation under this title shall 
     be payable for any week beginning after November 27, 2009.''.
       (d) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply as if included in the enactment of the Supplemental 
     Appropriations Act, 2008, subject to paragraph (2).
       (2) Additional benefits.--In applying the amendments made 
     by subsections (a) and (b), any additional emergency 
     unemployment compensation made payable by such amendments 
     (which would not otherwise have been payable if such 
     amendments had not been enacted) shall be payable only with 
     respect to any week of unemployment beginning on or after the 
     date of the enactment of this Act.

     SEC. 4002. TEMPORARY FEDERAL MATCHING FOR THE FIRST WEEK OF 
                   EXTENDED BENEFITS FOR STATES WITH NO WAITING 
                   WEEK.

       With respect to weeks of unemployment beginning after the 
     date of enactment of this Act and ending on or before 
     December 8, 2009, subparagraph (B) of section 204(a)(2) of 
     the Federal-State Extended Unemployment Compensation Act of 
     1970 (26 U.S.C. 3304 note) shall not apply.

               TITLE V--NATIONAL PARK CENTENNIAL FUND ACT

     SECTION 5001. SHORT TITLE.

       This Act may be cited as the ``National Park Centennial 
     Fund Act''.

     SEC. 5002. DEFINITIONS.

       In this Act:
       (1) Fund.--The term ``Fund'' means the National Park 
     Centennial Fund established under section 5003.
       (2) In-kind.--The term ``in-kind'' means the fair market 
     value of non-cash contributions provided by non-Federal 
     partners, which may be in the form of real property, 
     equipment, supplies and other expendable property, as well as 
     other goods and services.
       (3) Project or program.--The term ``Project or program'' 
     means a National Park Centennial Project or Program funded 
     pursuant to this Act.
       (4) Proposal.--The term ``Proposal'' means a National Park 
     Centennial Proposal submitted pursuant to section 5004.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.

     SEC. 5003. NATIONAL PARK CENTENNIAL FUND.

       (a) In General.--There is established in the Treasury of 
     the United States a fund which shall be known as the 
     ``National Park Centennial Fund''. In each of fiscal years 
     2009 through 2018, the Secretary of the Treasury shall 
     deposit into the Fund the following:
       (1) Cash donations received by the National Park Service in 
     support of projects or programs authorized by this Act.
       (2) From the General Fund, an amount equivalent to--
       (A) the amount described in paragraph (1), excluding 
     donations pledged through a letter of credit in a prior year; 
     and
       (B) the amount of donations pledged through letters of 
     credit in the same fiscal year.
       (b) Limitation on Amount.--The total amount of deposits 
     from the General Fund under subsection (a)(2) shall not 
     exceed, in the aggregate, $1,000,000,000 for fiscal years 
     2009 through 2018.

     SEC. 5004. PROGRAM ALLOCATION.

       (a) In General.--Each fiscal year, the President's annual 
     budget submission for the Department of the Interior shall 
     include a list of proposals which shall be known as National 
     Park Centennial Proposals. The Secretary shall establish a 
     standard process for developing the list that shall encourage 
     input from both the public and a broad cross-section of 
     employees at every level of the National Park Service. The 
     list--
       (1) shall include proposals having an aggregate cost to the 
     Federal Government equal to the unobligated amount in the 
     Fund;
       (2) shall include only proposals consistent with National 
     Park Service policies and adopted park planning documents;
       (3) may include proposals for any area within the national 
     park system (as that term is defined in section 2 of the Act 
     of August 8, 1953 (16 U.S.C. 1c)), clusters of areas within 
     such system, a region or regions of such system, or such 
     system in its entirety;
       (4) shall cumulatively represent a nationwide array of 
     proposals that is diverse geographically, in size, scope, 
     magnitude, theme, and variety under the initiatives described 
     in subsection (b);
       (5) shall give priority to proposals demonstrating long-
     term viability beyond receipts from the Fund;
       (6) shall include only proposals meeting the requirements 
     of one or more of the initiatives set forth in subsection 
     (b);

[[Page 24134]]

       (7) should contain proposals under each of the initiatives 
     set forth in subsection (b); and
       (8) shall give priority to proposals with committed, non-
     Federal support but shall also include proposals funded 
     entirely by the Fund.
       (b) National Park Centennial Initiatives.--The requirements 
     referred to in subsection (a)(6) are as follows:
       (1) Education in parks centennial initiative.--Proposals 
     for the ``Education in Parks Centennial Initiative'' shall 
     meet the following requirements:
       (A) Priority shall be given to proposals designed to 
     increase National Park-based educational opportunities for 
     elementary, secondary and college students particularly those 
     from populations historically under represented among 
     visitors to the National Park System.
       (B) Priority shall be given to proposals designed to bring 
     students into the National Park System in person.
       (C) Proposals should include strategies for encouraging 
     young people to become lifelong advocates for National Parks.
       (D) Proposals shall be developed in consultation with the 
     leadership of educational and youth organizations expected to 
     participate in the proposed initiative.
       (2) Diversity in parks centennial initiative.--
       (A) Study.--Not later than 1 year after the date of the 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Natural Resources of the House of 
     Representatives and the Committee on Energy and Natural 
     Resources of the Senate a report detailing a service-wide 
     strategy for increasing diversity among National Park Service 
     employees at all levels and visitors to the National Park 
     System.
       (B) Proposals.--Proposals for the ``Diversity in Parks 
     Centennial Initiative'' shall meet the following 
     requirements:
       (i) Each proposal shall be based on recommendations 
     contained in the report required in subparagraph (A).
       (ii) Each proposal shall be designed to make National Park 
     Service employees, visitors to the National Park System, or 
     both, reflect the diversity of the population of the United 
     States.
       (3) Supporting park professionals centennial initiative.--
     Proposals for the ``Supporting Park Professionals Centennial 
     Initiative'' shall meet the following requirements:
       (A) Taken as a whole, proposals shall provide specific 
     opportunities for National Park Service employees, at all 
     levels, to participate in professional career development.
       (B) Proposals may include National Park Service-designed, 
     internal professional development programs.
       (C) Proposals may also be designed to facilitate 
     participation in external professional development programs 
     or established courses of study by National Park Service 
     employees.
       (4) Environmental leadership centennial initiative.--
     Proposals for the ``Environmental Leadership Centennial 
     Initiative'' shall meet the following requirements:
       (A) Each proposal shall be designed to do one or more of 
     the following:
       (i) Reduce harmful emissions.
       (ii) Conserve energy or water resources.
       (iii) Reduce solid waste production within the National 
     Park System.
       (B) Each proposal shall include strategies for educating 
     the public regarding Environmental Leadership projects and 
     their results.
       (C) Priority shall be given to proposals with the potential 
     to spread technological advances to other Federal agencies or 
     to the private sector.
       (5) Natural resource protection centennial initiative.--
     Proposals for the ``Natural Resource Protection Centennial 
     Initiative'' shall meet the following requirements:
       (A) Each proposal shall be designed to restore or conserve 
     native ecosystems within the National Park System.
       (B) Priority shall be given to proposals designed to 
     control invasive species.
       (C) Each proposal shall be based on the best available 
     scientific information.
       (6) Cultural resource protection centennial initiative.--
     Proposals for the ``Cultural Resource Protection Centennial 
     Initiative'' shall--
       (A) either--
       (i) increase the National Park Service's knowledge of 
     cultural resources located within the National Park System 
     through means including, but not limited to, surveys, 
     studies, mapping, and documentation of such resources; or
       (ii) improve the condition of documented cultural resources 
     within the National Park System;
       (B) incorporate the best available scientific information; 
     and
       (C) where appropriate, be developed in consultation with 
     Native American tribes, State historic preservation offices, 
     or other organizations with cultural resource preservation 
     expertise.
       (7) Health and fitness in parks centennial initiative.--
       (A) In general.--Proposals for the ``Health and Fitness in 
     Parks Centennial Initiative'' shall fall into one or more of 
     the following four categories:
       (i) Proposals designed to repair, rehabilitate, or 
     otherwise improve infrastructure, including trails, that 
     facilitates healthy outdoor activity within the National Park 
     System.
       (ii) Proposals designed to expand opportunities for access 
     to the National Park System for visitors with disabilities.
       (iii) Proposals to develop and implement management plans 
     (such as climbing plans and trail system plans) for 
     activities designed to increase the health and fitness of 
     visitors to the National Park System.
       (iv) Proposals to develop outreach programs and media that 
     provide public information regarding health and fitness 
     opportunities within the National Park System.
       (B) Miscellaneous requirements.--All proposals for ``the 
     Health and Fitness in Parks Centennial Initiative'' shall--
       (i) be consistent with National Park Service policies and 
     adopted park planning documents; and
       (ii) be designed to provide for visitor enjoyment in such a 
     way as to leave the National Park System unimpaired for 
     future generations.
       (c) Funding.--In each of fiscal years 2009 through 2018, 
     unobligated amounts in the Fund shall be available without 
     further appropriation for projects authorized by this Act, 
     but may not be obligated or expended until 120 days after the 
     annual submission of the list of proposals required under 
     this section to allow for Congressional review.
       (d) Limitation on Distribution of Funds.--No more than 50 
     percent of amounts available from the Fund for any fiscal 
     year may be spent on projects that are for the construction 
     of facilities that cost in excess of $5,000,000.

     SEC. 5005. PARTNERSHIPS.

       (a) Donations.--The Secretary may actively encourage and 
     facilitate participation in proposals from non-Federal and 
     philanthropic partners, and may accept donations, both 
     monetary and in-kind for any Project or Program pursuant to 
     section 1 of the Act of June 5, 1920 (16 U.S.C. 6), and other 
     authorities to accept donations existing on the date of 
     enactment of this Act.
       (b) Terms and Conditions.--To the extent that private 
     organizations or individuals are to participate in or 
     contribute to any Project or Program, the terms and 
     conditions of that participation or contribution as well as 
     all actions of employees of the National Park Service, shall 
     be governed by National Park Service Directors Order #21, 
     ``Donations and Fundraising'', as in force on the date of the 
     enactment of this Act.

     SEC. 5006. MAINTENANCE OF EFFORT.

       Amounts made available from the Fund shall supplement 
     rather than replace annual expenditures by the National Park 
     Service, including authorized expenditures from the Land and 
     Water Conservation Fund and the National Park Service Line 
     Item Construction Program. The National Park Service shall 
     maintain adequate, permanent staffing levels and permanent 
     staff shall not be replaced with nonpermanent employees hired 
     to carry out this Act or Projects or Programs carried out 
     with funds provided under this Act.

     SEC. 5007. REPORTS.

       For each fiscal year beginning in fiscal year 2009, the 
     Secretary shall submit to Congress a report that includes the 
     following:
       (1) A detailed accounting of all expenditures from the Fund 
     divided by categories of proposals under section 4(b), 
     including a detailed accounting of any private contributions, 
     either in funds or in kind, to any Project or Program.
       (2) A cumulative summary of the results of the National 
     Park Centennial program including recommendations for 
     revisions to the program.
       (3) A statement of whether the National Park Service has 
     maintained adequate, permanent staffing levels and what 
     nonpermanent and permanent staff have been hired to carry out 
     this Act or Projects or Programs carried out with funds 
     provided under this Act.

                TITLE VI--AUTOMOTIVE INDUSTRY ASSISTANCE

     SECTION 6001. DIRECT LOAN PROVISIONS.

       (a) In General.--The Emergency Economic Stabilization Act 
     of 2008 (division A of Public Law 110-343) is amended by 
     adding at the end the following:

               ``TITLE IV--DIRECT BRIDGE LOAN PROVISIONS

     ``SEC. 401. FINDINGS.

       ``Congress finds that extraordinary and exigent 
     circumstances have prevented the automobile industry from 
     securing essential credit and liquidity from other sources 
     and that the failure of the automobile industry to obtain 
     such credit and liquidity will have a systemic adverse effect 
     on the economy.

     ``SEC. 402. PURPOSES.

       ``The purposes of this title are--
       ``(1) to clarify that authority and facilities are 
     available to be used immediately by the Secretary to restore 
     liquidity and stability to the automobile industry in the 
     United States;
       ``(2) to ensure that such authority and such facilities are 
     used in a manner that--
       ``(A) stimulates manufacturing and sales of automobiles 
     produced by automobile manufacturers in the United States;

[[Page 24135]]

       ``(B) enhances the ability and the capacity of the domestic 
     automobile industry to pursue the timely and aggressive 
     production of energy-efficient advanced technology vehicles;
       ``(C) preserves and promotes the jobs of 355,000 workers in 
     the United States directly employed by the automobile 
     industry and an additional 4,500,000 workers in the United 
     States employed in related industries; and
       ``(D) safeguards the ability of the domestic automobile 
     industry to provide retirement and health care benefits for 
     1,000,000 retirees and their spouses and dependents; and
       ``(3) to reaffirm the purposes of section 2, which include 
     providing the Secretary with broad authority to restore 
     liquidity and stability to financial institutions, including 
     automobile finance companies.

     ``SEC. 403. EMERGENCY DIRECT LOAN PROGRAM.

       ``(a) In General.--The Secretary shall make loans in an 
     aggregate amount equal to $25,000,000,000, to any automobile 
     manufacturer or component supplier that has--
       ``(1) submitted an application for a loan under this title 
     that includes a statement of need for Government funding 
     under this title to prevent a systemic adverse effect on the 
     United States economy;
       ``(2) operated 2 or more manufacturing facilities for the 
     purposes of producing automobiles or automobile components in 
     the United States throughout the 25-year period ending on the 
     date of enactment of this title; and
       ``(3) operations in the United States the failure of which 
     would have a systemic adverse effect on the overall United 
     States economy, as determined by the Secretary.
       ``(b) Allocation.--In allocating loan amounts under this 
     title, the Secretary shall prioritize applications based on 
     the magnitude of the impact of the manufacturing operations 
     of the applicant in the United States on the overall economy 
     of the United States and other segments of the automobile 
     industry, including the impact on levels of employment, 
     domestic manufacturing of automobiles and automobile 
     components, and automobile dealerships.
       ``(c) Plan for Long-Term Financial Viability.--At the time 
     of application for a loan under this title, an automobile 
     manufacturer or component supplier shall submit to the 
     Secretary a detailed plan on how the Government funds 
     requested will be utilized to ensure the long-term financial 
     posture of the company, and how such funds will stimulate 
     automobile production in the United States and improve the 
     capacity of the company to pursue the timely and aggressive 
     production of energy-efficient advanced technology vehicles.
       ``(d) Authority to Issue Stock.--At the discretion of the 
     Secretary, the automobile manufacturer or component supplier 
     may issue preferred stock in lieu of a loan, on analogous 
     terms and conditions as those described for loans under this 
     title.

     ``SEC. 404. FUNDING FROM THIRD TRANCHE; TREATMENT OF LOAN 
                   AMOUNTS.

       ``The costs incurred by the Federal Government in making 
     loans under this title, including credit subsidy costs and 
     administrative expenses, shall be covered out of the funds 
     made available to the Secretary generally under section 118 
     and, specifically, not from funds which are described in 
     paragraph (1) or (2) of section 115(a), but with respect to 
     the availability of which the reporting and procedural 
     requirements contained in paragraph (3) of such section and 
     section 115(c) shall not apply.

     ``SEC. 405. TIMING OF DISBURSEMENTS.

       ``(a) Applications.--On and after the date that is 3 days 
     after the date of enactment of this title, the Secretary 
     shall accept applications for loans under this title.
       ``(b) Determination of Eligibility.--Not later than 15 days 
     after the date on which the Secretary receives an application 
     for a loan under subsection (a), the Secretary shall make a 
     determination regarding the eligibility of the applicant, 
     based on whether the applicant meets the requirements of 
     section 403(a).
       ``(c) Disbursement.--The Secretary shall begin disbursement 
     of the proceeds of a loan under this title to an eligible 
     applicant not later than 7 days after the date on which the 
     Secretary receives a disbursal request from the applicant, 
     upon a determination of the Secretary that the applicant is 
     eligible under subsection (b).

     ``SEC. 406. TERMS AND CONDITIONS.

       ``(a) Term to Maturity.--The term to maturity of any loan 
     made under this title shall be 10 years, or such longer 
     period as the Secretary may determine with respect to such 
     loan.
       ``(b) Rate of Interest.--The annual rate of interest for a 
     loan under this title shall be--
       ``(1) 5 percent during the 5-year period beginning on the 
     date on which the Secretary disburses the loan; and
       ``(2) 9 percent after the end of the period described in 
     paragraph (1).
       ``(c) Warrants and Debt Instruments.--The Secretary may not 
     make a loan under this title unless the Secretary receives 
     from the automobile manufacturer or component supplier a 
     warrant or senior debt instrument made in accordance with the 
     requirements for a warrant or senior debt instrument by a 
     financial institution under section 113(d).
       ``(d) No Prepayment Penalty.--A loan made under this title 
     shall be prepayable without penalty at any time.
       ``(e) Executive Compensation.--
       ``(1) Standards required.--The Secretary shall require any 
     recipient of a loan under this title to meet appropriate 
     standards for executive compensation and corporate 
     governance.
       ``(2) Specific requirements.--The standards established 
     under paragraph (1) shall include the following:
       ``(A) Limits on compensation that exclude incentives for 
     senior executive officers of a recipient of a loan under this 
     title to take unnecessary and excessive risks that threaten 
     the value of such recipient during the period that the loan 
     is outstanding.
       ``(B) A provision for the recovery by such recipient of any 
     bonus or incentive compensation paid to a senior executive 
     officer based on statements of earnings, gains, or other 
     criteria that are later found to be materially inaccurate.
       ``(C) A prohibition on such recipient making any golden 
     parachute payment to a senior executive officer during the 
     period that the loan under this title is outstanding.
       ``(D) A prohibition on such recipient paying or accruing 
     any bonus or incentive compensation during the period that 
     the loan is outstanding to any executive whose annual base 
     compensation exceeds $250,000 (which amount shall be adjusted 
     by the Secretary for inflation).
       ``(E) A prohibition on any compensation plan that could 
     encourage manipulation of the reported earnings of the 
     recipient to enhance the compensation of any of its 
     employees.
       ``(3) Definitions.--For purposes of this subsection, the 
     following definitions shall apply:
       ``(A) Senior executive officer.--The term `senior executive 
     officer' means an individual who is 1 of the top 5 most 
     highly paid executives of a public company, whose 
     compensation is required to be disclosed pursuant to the 
     Securities Exchange Act of 1934, and any regulations issued 
     thereunder, and non-public company counterparts.
       ``(B) Golden parachute payment.--The term `golden parachute 
     payment' means any payment to a senior executive officer for 
     departure from a company for any reason.
       ``(f) Prohibition on Payment of Dividends.--No common stock 
     dividends may be paid by any recipient of a loan under this 
     title for the duration of the loan.
       ``(g) Other Interests Subordinated.--Any obligation or 
     liability of a recipient of a loan under this title to any 
     person shall be subordinate to the liability and obligation 
     of the recipient for such loan.

     ``SEC. 407. OVERSIGHT.

       ``(a) In General.--The provisions of sections 105, 116, 
     121, and 125 shall apply with respect to any loans made under 
     this title, to the extent possible, in the same manner and to 
     the same extent as such sections apply to transactions made 
     under the authority of title I.''.
       (b) Technical and Conforming Amendments.--
       (1) Table of contents.--The table of contents in section 
     1(b) of the Emergency Economic Stabilization Act of 2008 
     (division A of Public Law 110-343) is amended--
       (A) by inserting after the item relating to section 3 the 
     following new item:

``Sec. 4. References.''

     ; and
       (B) by adding at the end the following:

               ``TITLE IV--DIRECT BRIDGE LOAN PROVISIONS

``Sec. 401. Findings.
``Sec. 402. Purposes.
``Sec. 403. Emergency direct loan program.
``Sec. 404. Funding from third tranche; treatment of loan amounts.
``Sec. 405. Timing of disbursements.
``Sec. 406. Terms and conditions.
``Sec. 407. Oversight.''

     ; and
       (2) References.--The Emergency Economic Stabilization Act 
     of 2008 (division A of Public Law 110-343) is amended by 
     inserting after section 3 the following new section:

     ``SEC. 4. REFERENCES.

       ``Any reference--
       ``(1) in this division to `this Act' or any subdivision 
     thereof is a reference to this division A or any subdivision 
     thereof;
       ``(2) in division (B) to `this Act' or any subdivision 
     thereof is a reference to division B or any subdivision 
     thereof; and
       ``(3) in division (C) to `this Act' or any subdivision 
     thereof is a reference to division C or any subdivision 
     thereof.''.

                  TITLE VII--AUTO SALES TAX DEDUCTIONS

     SECTION 7001. ABOVE-THE-LINE DEDUCTION FOR INTEREST ON 
                   INDEBTEDNESS WITH RESPECT TO THE PURCHASE OF 
                   CERTAIN MOTOR VEHICLES.

       (a) In General.--Paragraph (2) of section 163(h) of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking ``and'' at the end of subparagraph (E),
       (2) by striking the period at the end of subparagraph (F) 
     and inserting ``, and'', and
       (3) by adding at the end the following new subparagraph:
       ``(G) any qualified motor vehicle interest (within the 
     meaning of paragraph (5).''.

[[Page 24136]]

       (b) Qualified Motor Vehicle Interest.--Section 163(h) of 
     the Internal Revenue Code of 1986 is amended by adding at the 
     end the following new paragraph:
       ``(5) Qualified motor vehicle interest.--For purposes of 
     this subsection--
       ``(A) In general.--The term `qualified motor vehicle 
     interest' means any interest which is paid or accrued during 
     the taxable year on any indebtedness which--
       ``(i) is incurred after November 12, 2008, and before 
     January 1, 2010, in acquiring any qualified motor vehicle of 
     the taxpayer, and
       ``(ii) is secured by such qualified motor vehicle.

     Such term also includes any indebtedness secured by such 
     qualified motor vehicle resulting from the refinancing of 
     indebtedness meeting the requirements of the preceding 
     sentence (or this sentence); but only to the extent the 
     amount of the indebtedness resulting from such refinancing 
     does not exceed the amount of the refinanced indebtedness.
       ``(B) Dollar limitation.--The aggregate amount of 
     indebtedness treated as described in subparagraph (A) for any 
     period shall not exceed $49,500 ($24,750 in the case of a 
     separate return by a married individual).
       ``(C) Income limitation.--The amount otherwise treated as 
     interest under subparagraph (A) for any taxable year (after 
     the application of subparagraph (B)) shall be reduced (but 
     not below zero) by the amount which bears the same ratio to 
     the amount which is so treated as--
       ``(i) the excess (if any) of--

       ``(I) the taxpayer's modified adjusted gross income for 
     such taxable year, over
       ``(II) $125,000 ($250,000 in the case of a joint return), 
     bears to

       ``(ii) $10,000.

     For purposes of the preceding sentence, the term `modified 
     adjusted gross income' means the adjusted gross income of the 
     taxpayer for the taxable year increased by any amount 
     excluded from gross income under section 911, 931, or 933.
       ``(D) Qualified motor vehicle.--The term `qualified motor 
     vehicle' means a passenger automobile (within the meaning of 
     section 30B(h)(3)) or a light truck (within the meaning of 
     such section)--
       ``(i) which is acquired for use by the taxpayer and not for 
     resale after November 12, 2008, and before January 1, 2010,
       ``(ii) the original use of which commences with the 
     taxpayer, and
       ``(iii) which has a gross vehicle weight rating of not more 
     than 8,500 pounds.''.
       (c) Deduction Allowed Above-the-Line.--Section 62(a) of the 
     Internal Revenue Code of 1986 is amended by inserting after 
     paragraph (21) the following new paragraph:
       ``(22) Qualified motor vehicle interest.--The deduction 
     allowed under section 163 by reason of subsection (h)(2)(G) 
     thereof.''.
       (d) Reporting of Qualified Motor Vehicle Interest.--
       (1) In general.--Subpart B of part III of subchapter A of 
     chapter 61 of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following new section:

     ``SEC. 6050X. RETURNS RELATING TO QUALIFIED MOTOR VEHICLE 
                   INTEREST RECEIVED IN TRADE OR BUSINESS FROM 
                   INDIVIDUALS.

       ``(a) Qualified Motor Vehicle Interest.--Any person--
       ``(1) who is engaged in a trade or business, and
       ``(2) who, in the course of such trade or business, 
     receives from any individual interest aggregating $600 or 
     more for any calendar year on any indebtedness secured by a 
     qualified motor vehicle (as defined in section 163(h)(5)(D)),

     shall make the return described in subsection (b) with 
     respect to each individual from whom such interest was 
     received at such time as the Secretary may by regulations 
     prescribe.
       ``(b) Form and Manner of Returns.--A return is described in 
     this subsection if such return--
       ``(1) is in such form as the Secretary may prescribe,
       ``(2) contains--
       ``(A) the name and address of the individual from whom the 
     interest described in subsection (a)(2) was received,
       ``(B) the amount of such interest received for the calendar 
     year, and
       ``(C) such other information as the Secretary may 
     prescribe.
       ``(c) Application to Governmental Units.--For purposes of 
     subsection (a)--
       ``(1) Treated as persons.--The term `person' includes any 
     governmental unit (and any agency or instrumentality 
     thereof).
       ``(2) Special rules.--In the case of a governmental unit or 
     any agency or instrumentality thereof--
       ``(A) subsection (a) shall be applied without regard to the 
     trade or business requirement contained therein, and
       ``(B) any return required under subsection (a) shall be 
     made by the officer or employee appropriately designated for 
     the purpose of making such return.
       ``(d) Statements to Be Furnished to Individuals With 
     Respect to Whom Information Is Required.--Every person 
     required to make a return under subsection (a) shall furnish 
     to each individual whose name is required to be set forth in 
     such return a written statement showing--
       ``(1) the name, address, and phone number of the 
     information contact of the person required to make such 
     return, and
       ``(2) the aggregate amount of interest described in 
     subsection (a)(2) received by the person required to make 
     such return from the individual to whom the statement is 
     required to be furnished.

     The written statement required under the preceding sentence 
     shall be furnished on or before January 31 of the year 
     following the calendar year for which the return under 
     subsection (a) was required to be made.
       ``(e) Returns Which Would Be Required to Be Made by 2 or 
     More Persons.--Except to the extent provided in regulations 
     prescribed by the Secretary, in the case of interest received 
     by any person on behalf of another person, only the person 
     first receiving such interest shall be required to make the 
     return under subsection (a).''.
       (2) Amendments relating to penalties.--
       (A) Section 6721(e)(2)(A) of such Code is amended by 
     striking ``or 6050L'' and inserting ``6050L, or 6050X''.
       (B) Section 6722(c)(1)(A) of such Code is amended by 
     striking ``or 6050L(c)'' and inserting ``6050L(c), or 
     6050X(d)''.
       (C) Subparagraph (B) of section 6724(d)(1) of such Code is 
     amended by redesignating clauses (xvi) through (xxii) as 
     clauses (xvii) through (xxiii), respectively, and by 
     inserting after clause (xii) the following new clause:
       ``(xvi) section 6050X (relating to returns relating to 
     qualified motor vehicle interest received in trade or 
     business from individuals),''.
       (D) Paragraph (2) of section 6724(d) of such Code is 
     amended by striking the period at the end of subparagraph 
     (DD) and inserting ``, or'' and by inserting after 
     subparagraph (DD) the following new subparagraph:
       ``(EE) section 6050X(d) (relating to returns relating to 
     qualified motor vehicle interest received in trade or 
     business from individuals).''.
       (3) Clerical amendment.--The table of sections for subpart 
     B of part III of subchapter A of chapter 61 of such Code is 
     amended by inserting after the item relating to section 6050W 
     the following new item:

``Sec. 6050X. Returns relating to qualified motor vehicle interest 
              received in trade or business from individuals.''.

     SEC. 7002. ABOVE-THE-LINE DEDUCTION FOR STATE SALES TAX AND 
                   EXCISE TAX ON THE PURCHASE OF CERTAIN MOTOR 
                   VEHICLES.

       (a) In General.--Subsection (a) of section 164 of the 
     Internal Revenue Code of 1986 is amended by inserting after 
     paragraph (5) the following new paragraph:
       ``(6) Qualified motor vehicle taxes.''.
       (b) Qualified Motor Vehicle Taxes.--Subsection (b) of 
     section 164 of the Internal Revenue Code of 1986 is amended 
     by adding at the end the following new paragraph:
       ``(6) Qualified motor vehicle taxes.--
       ``(A) In general.--For purposes of this section, the term 
     `qualified motor vehicle taxes' means any State and local 
     sales or excise tax imposed on the purchase of a qualified 
     motor vehicle (as defined in section 163(h)(5)(D)).
       ``(B) Income limitation.--The amount otherwise taken into 
     account under subparagraph (A) for any taxable year shall be 
     reduced (but not below zero) by the amount which bears the 
     same ratio to the amount which is so treated as--
       ``(i) the excess (if any) of--

       ``(I) the taxpayer's modified adjusted gross income for 
     such taxable year, over
       ``(II) $125,000 ($250,000 in the case of a joint return), 
     bears to

       ``(ii) $10,000.

     For purposes of the preceding sentence, the term `modified 
     adjusted gross income' means the adjusted gross income of the 
     taxpayer for the taxable year increased by any amount 
     excluded from gross income under section 911, 931, or 933.
       ``(C) Qualified motor vehicle taxes not included in cost of 
     acquired property.--The last sentence of subsection (a) shall 
     not apply to any qualified motor vehicle taxes.
       ``(D) Coordination with general sales tax.--This paragraph 
     shall not apply in the case of a taxpayer who makes an 
     election under paragraph (5) for the taxable year.''.
       (c) Conforming Amendments.--Paragraph (5) of section 163(h) 
     of the Internal Revenue Code of 1986, as added by section 1, 
     is amended--
       (1) by adding at the end the following new subparagraph:
       ``(E) Exclusion.--If the indebtedness described in 
     subparagraph (A) includes the amounts of any State sales or 
     excise taxes paid or accrued by the taxpayer in connection 
     with the acquisition of a qualified motor vehicle, the 
     aggregate amount of such indebtedness taken into account 
     under such subparagraph shall be reduced, but not below zero, 
     by the amount of any such taxes for which a deduction is 
     allowed under section 164(a) by reason of paragraph (6) 
     thereof.'', and
       (2) by inserting ``, after the application of subparagraph 
     (E),'' after ``for any period'' in subparagraph (B).
       (d) Deduction Allowed Above-the-Line.--Section 62(a) of the 
     Internal Revenue Code of 1986, as amended by section 1, is 
     amended by

[[Page 24137]]

     inserting after paragraph (22) the following new paragraph:
       ``(23) Qualified motor vehicle taxes.--The deduction 
     allowed under section 164 by reason of subsection (a)(6) 
     thereof.''.

                               TITLE VIII

                      GENERAL PROVISIONS--THIS ACT


                         emergency designation

       Sec. 8001. Each amount in this Act is designated as an 
     emergency requirement and necessary to meet emergency needs 
     pursuant to section 204(a) of S. Con. Res. 21 (110th 
     Congress) and section 301(b)(2) of S. Con. Res. 70 (110th 
     Congress), the concurrent resolutions on the budget for 
     fiscal years 2008 and 2009.


                              AVAILABILITY

       Sec. 8002. No part of any appropriation contained in this 
     Act shall remain available for obligation beyond the current 
     fiscal year unless expressly so provided herein.
       This Act may be cited as the ``Economic Recovery Act of 
     2008''.
      By Mr. DURBIN:
  S. 3690. A bill to help struggling families stay in their homes and 
to ensure that taxpayers are protected when the Secretary of the 
Treasury purchases equity shares in financial situations; to the 
Committee on the Judiciary.
  Mr. DURBIN. Just before the Congress paused for the elections, we 
passed one of the most historic--and contentious--pieces of legislation 
in my 26 years in Washington. We gave the Treasury Department the 
authority to spend $700 billion in taxpayer funds to prevent the 
complete meltdown of the financial system, which in turn would 
hopefully prevent the overall economy from descending into a deep and 
painful recession.
  I didn't like voting for that bill, but I joined the majority of my 
colleagues in doing so because not voting for it was even worse. I hope 
in the end that we were right.
  However, there are two areas that I do not believe were adequately 
addressed in that legislation: helping families save their homes from 
foreclosure and protecting taxpayers from the misuse of their dollars 
by the bankers that receive them. Today I am introducing legislation--
the Homeowner Assistance and Taxpayer Protection Act--to address both 
concerns.
  For far too long the Bush administration has relied on the voluntary 
efforts of the mortgage servicers to rework millions of troubled 
mortgages on a case by case basis. These voluntary efforts have been 
and still are insufficient. There aren't strong enough incentives for 
the servicers to pursue work-outs. Servicers aren't equipped to handle 
the huge volume of mortgages at risk. Far-flung investors who own 
pieces of many mortgages, and who often refuse to let servicers rework 
mortgages even in the cases where the servicers would like to help, 
present legal obstacles. And the mortgage industry has failed to take 
strong action against foreclosures, even if it is in their own best 
interests. The $700 billion rescue bill encouraged the administration 
to take stronger steps to help homeowners, but did not require the 
Government to do so.
  My bill would bring real hope to families who fear that they will 
lose their homes, by doing three things. First, it would require 
Treasury, the Federal Reserve, the FDIC, and FHFA to restructure all 
loans that meet the criteria established in the Hope for Homeowners 
program to make the mortgages affordable. That means mortgages these 
regulators own or in which they have a controlling interest must be 
restructured if a reworked mortgage can be paid by the homeowner and is 
viable economically for the creditors. The Emergency Economic 
Stabilization Act as it is currently written only encourages the 
regulators to restructure those loans, rather than requiring them to do 
so.
  Second, it would require servicers to restructure all loans that 
qualify for the Hope for Homeowners program, rather than simply 
encouraging them to do so as the Housing and Economic Recovery Act is 
currently written.
  And, finally, it would allow bankruptcy judges to modify mortgages on 
primary residences. As I have argued for months now, this is the single 
most important thing we can do to spur nationwide systematic mortgage 
restructurings.
  The financial crisis will not ease, and the economy will not begin to 
recover, until we address the root cause of the crisis: the failed 
mortgage market. My bill would do just that.
  The rescue bill also failed to put in place enough taxpayer 
protections. Congress meant for banks to use the money provided by the 
Treasury to lend to qualified borrowers, rather than enriching their 
shareholders and executives. Recent reports indicating that AIG will 
lavish more than a half billion dollars on its employees at the same 
time that it receives an even larger $152 billion taxpayer bailout than 
originally announced speaks loudly to this problem.
  My bill would try to address this concern. The bill would bar banks 
participating in the Capital Purchase Program authorized by the 
Emergency Economic Stabilization Act from increasing common share 
dividends as long as the Government owns preferred shares. It also 
would require participating banks to reduce the next year's dividends 
in an amount equal to the compensation paid to the top five executives 
in excess of $500,000.
  The bill would not bar companies receiving assistance from the 
Treasury from paying their executives, nor would it bar them from 
paying dividends. But it would ensure that financial institutions think 
carefully before redirecting taxpayer-injected dollars away from 
lending for the good of the economy towards compensation for the good 
of its own executives and shareholders.
  The debate on how to help stabilize the financial sector will 
certainly continue into the 111th Congress, and I intend to continue to 
fight for homeowners and for the taxpayers so that we get our economy 
moving again as quickly as we can, and as prudently as we can.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3690

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Homeowner Assistance and 
     Taxpayer Protection Act''.

                     TITLE I--ASSISTING HOMEOWNERS

     SEC. 101. RESTRUCTURING LOANS OWNED BY THE GOVERNMENT.

       (a) Mortgages Acquired by the Secretary.--Section 109(a) of 
     the Emergency Economic Stabilization Act of 2008 (division A 
     of Public Law 110-343) is amended by striking ``encourage'' 
     and inserting ``require''.
       (b) Mortgages Held by Federal Property Managers.--Section 
     110(b)(1) of the Emergency Economic Stabilization Act of 2008 
     (division A of Public Law 110-343) is amended by striking 
     ``encourage'' and inserting ``require''.
       (c) Obligations Secured by Mortgages Held by Federal 
     Property Managers.--Section 110(c)(1) of the Emergency 
     Economic Stabilization Act of 2008 (division A of Public Law 
     110-343) is amended by striking ``encourage'' and inserting 
     ``require''.

     SEC. 102. REQUIRING LENDERS TO PARTICIPATE IN HOPE FOR 
                   HOMEOWNERS PROGRAM WHEN HOMEOWNERS ELECT TO 
                   PARTICIPATE.

       Section 257(b)(1) of the National Housing Act (12 U.S.C. 
     1715z-23(b)(1)) is amended by striking ``and existing loan 
     holders'' and inserting ``, but required on the part of 
     existing loan holders when homeowners apply,''.

     SEC. 103. HELPING FAMILIES SAVE THEIR HOMES IN BANKRUPTCY.

       (a) Special Rules for Modification of Loans Secured by 
     Residences.--
       (1) In general.--Section 1322(b) of title 11, United States 
     Code, is amended--
       (A) in paragraph (10), by striking ``and'' at the end;
       (B) by redesignating paragraph (11) as paragraph (12); and
       (C) by inserting after paragraph (10) the following:
       ``(11) notwithstanding paragraph (2) and otherwise 
     applicable nonbankruptcy law--
       ``(A) modify an allowed secured claim secured by the 
     debtor's principal residence, as described in subparagraph 
     (B), if, after deduction from the debtor's current monthly 
     income of the expenses permitted for debtors described in 
     section 1325(b)(3) of this title (other than amounts 
     contractually due to creditors holding such allowed secured 
     claims and additional payments necessary to maintain 
     possession of that residence), the debtor has insufficient 
     remaining income to retain possession of the residence by 
     curing a default and maintaining payments while the case is 
     pending, as provided under paragraph (5); and
       ``(B) provide for payment of such claim--
       ``(i) in an amount equal to the amount of the allowed 
     secured claim;

[[Page 24138]]

       ``(ii) for a period that is not longer than 40 years; and
       ``(iii) at a rate of interest accruing after such date 
     calculated at a fixed annual percentage rate, in an amount 
     equal to the most recently published annual yield on 
     conventional mortgages published by the Board of Governors of 
     the Federal Reserve System, as of the applicable time set 
     forth in the rules of the Board, plus a reasonable premium 
     for risk; and''.
       (2) Conforming amendment.--Section 1325(a)(5) of title 11, 
     United States Code, is amended by inserting before ``with 
     respect'' the following: ``except as otherwise provided in 
     section 1322(b)(11) of this title,''.
       (b) Waiver of Counseling Requirement When Homes Are in 
     Foreclosure.--Section 109(h) of title 11, United States Code, 
     is amended by adding at the end the following:
       ``(5) The requirements of paragraph (1) shall not apply 
     with respect to a debtor who files with the court a 
     certification that a foreclosure sale of the debtor's 
     principal residence has been scheduled.''.
       (c) Combating Excessive Fees.--Section 1322(c) of title 11, 
     the United States Code, is amended--
       (1) in paragraph (1), by striking ``and'' at the end;
       (2) in paragraph (2), by striking the period at the end and 
     inserting a semicolon; and
       (3) by adding at the end the following:
       ``(3) the plan need not provide for the payment of, and the 
     debtor, the debtor's property, and property of the estate 
     shall not be liable for, any fee, cost, or charge, 
     notwithstanding section 506(b), that arises in connection 
     with a claim secured by the debtor's principal residence if 
     the event that gives rise to such fee, cost, or charge occurs 
     while the case is pending but before the discharge order, 
     except to the extent that--
       ``(A) notice of such fees, costs, or charges is filed with 
     the court, and served on the debtor and the trustee, before 
     the expiration of the earlier of--
       ``(i) 1 year after the event that gives rise to such fee, 
     cost, or charge occurs; or
       ``(ii) 60 days before the closing of the case; and
       ``(B) such fees, costs, or charges are lawful, reasonable, 
     and provided for in the agreement under which such claim or 
     security interest arose;
       ``(4) the failure of a party to give notice described in 
     paragraph (3) shall be deemed a waiver of any claim for fees, 
     costs, or charges described in paragraph (3) for all 
     purposes, and any attempt to collect such fees, costs, or 
     charges shall constitute a violation of section 524(a)(2) of 
     this title or, if the violation occurs before the date of 
     discharge, of section 362(a) of this title; and
       ``(5) a plan may provide for the waiver of any prepayment 
     penalty on a claim secured by the principal residence of the 
     debtor.''.
       (d) Prohibiting Claims Arising From Violations of Consumer 
     Protection Laws.--Section 502(b) of title 11, United States 
     Code, is amended--
       (1) in paragraph (8), by striking ``or'' at the end;
       (2) in paragraph (9), by striking the period at the end and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(10) such claim includes a request for damages or 
     rescission based on a failure to comply with the Truth in 
     Lending Act (15 U.S.C. 1601 et seq.), or any other provision 
     of applicable State or Federal consumer protection law in 
     force when the failure to comply occurred, notwithstanding a 
     prior entry of a foreclosure judgment.''.
       (e) Application of Amendments.--The amendments made to 
     title 11, United States Code, by this section shall apply 
     with respect to cases commenced under that title 11 on or 
     after the date of enactment of this Act, or pending on the 
     date of enactment of this Act.

                     TITLE II--PROTECTING TAXPAYERS

     SEC. 201. BARRING DIVIDEND INCREASES.

       Section 113(d) of the Emergency Economic Stabilization Act 
     of 2008 (division A of Public Law 110-343) is amended by 
     adding at the end the following:
       ``(4) Dividends.--If the Secretary purchases troubled 
     assets under the authority of this Act, the financial 
     institutions from which such assets are purchased may not pay 
     dividends in a cumulative amount that is higher in the 
     current or a future fiscal year than the cumulative dividends 
     paid in the fiscal year immediately preceding the sale of the 
     troubled assets until such time as the troubled assets are no 
     longer owned by the Secretary.''.

     SEC. 202. REDUCING DIVIDENDS TO PAY FOR EXCESSIVE EXECUTIVE 
                   COMPENSATION.

       Section 111(b)(2) of the Emergency Economic Stabilization 
     Act of 2008 (Public Law 110-343) is amended--
       (1) in subparagraph (B), by striking ``and'' at the end;
       (2) in subparagraph (C), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(D) a reduction in dividends paid by the institution in 
     its next fiscal year equal to the executive compensation paid 
     to senior executive officers in excess of $500,000 per 
     officer in the current fiscal year.''.

                          ____________________