[Congressional Record (Bound Edition), Volume 155 (2009), Part 8]
[House]
[Pages 10732-10795]
[From the U.S. Government Publishing Office, www.gpo.gov]




  CONFERENCE REPORT ON S. CON. RES. 13, CONCURRENT RESOLUTION ON THE 
                      BUDGET FOR FISCAL YEAR 2010

  Mr. SPRATT submitted the following conference report and statement on 
the Senate concurrent resolution (S. Con. Res. 13) setting forth the 
congressional budget for the United States Government for fiscal year 
2010, revising the appropriate budgetary levels for fiscal year 2009, 
and setting forth the appropriate budgetary levels for fiscal years 
2011 through 2014:

                  Conference Report (S. Con. Res. 13)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the House to the concurrent 
     resolution (S. Con. Res. 13), setting forth the congressional 
     budget for the United States Government for fiscal year 2010, 
     revising the appropriate budgetary levels for fiscal year 
     2009, and setting forth the appropriate budgetary levels for 
     fiscal years 2011 through 2014, having met, after full and 
     free conference, have agreed to recommend and do recommend to 
     their respective Houses as follows:
       That the Senate recede from its disagreement to the 
     amendment of the House and agree to the same with an 
     amendment as follows:
       In lieu of the matter proposed to be inserted by the House 
     amendment, insert the following:

     SECTION 1. CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL 
                   YEAR 2010.

       (a) Declaration.--Congress declares that this resolution is 
     the concurrent resolution on the budget for fiscal year 2010 
     and that this resolution sets forth the appropriate budgetary 
     levels for fiscal years 2009 and 2011 through 2014.
       (b) Table of Contents.--The table of contents for this 
     concurrent resolution is as follows:

Sec. 1. Concurrent resolution on the budget for fiscal year 2010.

                TITLE I--RECOMMENDED LEVELS AND AMOUNTS

Sec. 101. Recommended levels and amounts.
Sec. 102. Social Security.
Sec. 103. Postal Service discretionary administrative expenses.
Sec. 104. Major functional categories.

                        TITLE II--RECONCILIATION

Sec. 201. Reconciliation in the Senate.
Sec. 202. Reconciliation in the House.

                        TITLE III--RESERVE FUNDS

                    Subtitle A--Senate Reserve Funds

Sec. 301. Deficit-neutral reserve fund to transform and modernize 
              America's health care system.
Sec. 302. Deficit-neutral reserve fund to invest in clean energy and 
              preserve the environment.
Sec. 303. Deficit-neutral reserve fund for higher education.
Sec. 304. Deficit-neutral reserve fund for child nutrition and WIC.
Sec. 305. Deficit-neutral reserve fund for investments in America's 
              infrastructure.
Sec. 306. Deficit-neutral reserve fund to promote economic 
              stabilization and growth.
Sec. 307. Deficit-neutral reserve fund for America's veterans and 
              wounded servicemembers.
Sec. 308. Deficit-neutral reserve fund for judicial pay and judgeships, 
              postal retiree assistance, and certain pension 
              obligations.
Sec. 309. Deficit-neutral reserve fund for defense acquisition and 
              Federal contracting reform.
Sec. 310. Deficit-neutral reserve fund for investments in our Nation's 
              counties and schools.
Sec. 311. Deficit-neutral reserve fund for the Food and Drug 
              Administration.
Sec. 312. Deficit-neutral reserve fund for a comprehensive 
              investigation into the current financial crisis.
Sec. 313. Deficit-neutral reserve fund for increased transparency at 
              the Federal Reserve.
Sec. 314. Deficit-neutral reserve fund for 21st century community 
              learning centers.
Sec. 315. Deficit-neutral reserve fund for provision of critical 
              resources to firefighters and fire departments.
Sec. 316. Deficit-neutral reserve fund to promote tax equity for States 
              without personal income taxes, and other selected tax 
              relief policies.
Sec. 317. Deficit-neutral reserve fund to promote individual savings 
              and financial security.
Sec. 318. Deficit-neutral reserve fund to increase FDIC and NCUA 
              borrowing authority.
Sec. 319. Deficit-neutral reserve fund for improving the well-being of 
              children.
Sec. 320. Deficit-neutral reserve fund for a 9/11 health program.

                    Subtitle B--House Reserve Funds

Sec. 321. Deficit-neutral reserve fund for health care reform.
Sec. 322. Deficit-neutral reserve fund for college access, 
              affordability, and completion.
Sec. 323. Deficit-neutral reserve fund for increasing energy 
              independence.
Sec. 324. Deficit-neutral reserve fund for America's veterans and 
              wounded servicemembers.
Sec. 325. Deficit-neutral reserve fund for certain tax relief.
Sec. 326. Deficit-neutral reserve fund for a 9/11 health program.
Sec. 327. Deficit-neutral reserve fund for child nutrition.
Sec. 328. Deficit-neutral reserve fund for structural unemployment 
              insurance reforms.
Sec. 329. Deficit-neutral reserve fund for child support.
Sec. 330. Deficit-neutral reserve fund for the Affordable Housing Trust 
              Fund.
Sec. 331. Deficit-neutral reserve fund for home visiting.
Sec. 332. Deficit-neutral reserve fund for low-income home energy 
              assistance program trigger.

[[Page 10733]]

Sec. 333. Deficit-neutral reserve fund for county payments legislation.
Sec. 334. Reserve fund for the surface transportation reauthorization.

                        TITLE IV--BUDGET PROCESS

                     Subtitle A--Senate Provisions

                       PART I--Budget Enforcement

Sec. 401. Discretionary spending limits, program integrity initiatives, 
              and other adjustments.
Sec. 402. Point of order against advance appropriations.
Sec. 403. Emergency legislation.
Sec. 404. Point of order against legislation increasing short-term 
              deficit.
Sec. 405. Point of order against certain legislation related to surface 
              transportation funding.

                       PART II--Other Provisions

Sec. 411. Oversight of Government performance.
Sec. 412. Budgetary treatment of certain discretionary administrative 
              expenses.
Sec. 413. Application and effect of changes in allocations and 
              aggregates.
Sec. 414. Adjustments to reflect changes in concepts and definitions.
Sec. 415. Exercise of rulemaking powers.

                Subtitle B--House Enforcement Provisions

Sec. 421. Adjustments for direct spending and revenues.
Sec. 422. Adjustments to discretionary spending limits.
Sec. 423. Costs of overseas deployments and emergency needs.
Sec. 424. Point of order against advance appropriations.
Sec. 425. Oversight of government performance.
Sec. 426. Budgetary treatment of certain discretionary administrative 
              expenses.
Sec. 427. Application and effect of changes in allocations and 
              aggregates.
Sec. 428. Adjustments to reflect changes in concepts and definitions.
Sec. 429. Exercise of rulemaking powers.

                            TITLE V--POLICY

Sec. 501. Policy on middle-class tax relief and revenues.
Sec. 502. Policy on defense priorities.

                    TITLE VI--SENSE OF THE CONGRESS

Sec. 601. Sense of the Congress on veterans' and servicemembers' health 
              care.
Sec. 602. Sense of the Congress on homeland security.
Sec. 603. Sense of the Congress on promoting American innovation and 
              economic competitiveness.
Sec. 604. Sense of the Congress regarding pay parity.
Sec. 605. Sense of the Congress on college affordability and student 
              loan reform.
Sec. 606. Sense of the Congress on Great Lakes restoration.
Sec. 607. Sense of the Congress regarding the importance of child 
              support enforcement.

                TITLE I--RECOMMENDED LEVELS AND AMOUNTS

     SEC. 101. RECOMMENDED LEVELS AND AMOUNTS.

       The following budgetary levels are appropriate for each of 
     fiscal years 2009 through 2014:
       (1) Federal revenues.--For purposes of the enforcement of 
     this resolution:
       (A) The recommended levels of Federal revenues are as 
     follows:
       Fiscal year 2009: $1,532,571,000,000.
       Fiscal year 2010: $1,653,682,000,000.
       Fiscal year 2011: $1,929,625,000,000.
       Fiscal year 2012: $2,129,601,000,000.
       Fiscal year 2013: $2,291,120,000,000.
       Fiscal year 2014: $2,495,781,000,000.
       (B) The amounts by which the aggregate levels of Federal 
     revenues should be changed are as follows:
       Fiscal year 2009: $0.
       Fiscal year 2010: -$12,304,000,000.
       Fiscal year 2011: -$159,006,000,000.
       Fiscal year 2012: -$230,792,000,000.
       Fiscal year 2013: -$224,217,000,000.
       Fiscal year 2014: -$137,877,000,000.
       (2) New budget authority.--For purposes of the enforcement 
     of this resolution, the appropriate levels of total new 
     budget authority are as follows:
       Fiscal year 2009: $3,675,927,000,000.
       Fiscal year 2010: $2,888,691,000,000.
       Fiscal year 2011: $2,844,910,000,000.
       Fiscal year 2012: $2,848,117,000,000.
       Fiscal year 2013: $3,012,193,000,000.
       Fiscal year 2014: $3,188,847,000,000.
       (3) Budget outlays.--For purposes of the enforcement of 
     this resolution, the appropriate levels of total budget 
     outlays are as follows:
       Fiscal year 2009: $3,356,270,000,000.
       Fiscal year 2010: $3,001,311,000,000.
       Fiscal year 2011: $2,967,908,000,000.
       Fiscal year 2012: $2,881,842,000,000.
       Fiscal year 2013: $3,019,375,000,000.
       Fiscal year 2014: $3,174,814,000,000.
       (4) Deficits (on-budget).--For purposes of the enforcement 
     of this resolution, the amounts of the deficits are as 
     follows:
       Fiscal year 2009: $1,823,699,000,000.
       Fiscal year 2010: $1,347,629,000,000.
       Fiscal year 2011: $1,038,283,000,000.
       Fiscal year 2012: $752,241,000,000.
       Fiscal year 2013: $728,255,000,000.
       Fiscal year 2014: $679,033,000,000.
       (5) Debt subject to limit.--Pursuant to section 301(a)(5) 
     of the Congressional Budget Act of 1974, the appropriate 
     levels of the public debt are as follows:
       Fiscal year 2009: $12,016,335,000,000.
       Fiscal year 2010: $13,233,246,000,000.
       Fiscal year 2011: $14,349,372,000,000.
       Fiscal year 2012: $15,277,119,000,000.
       Fiscal year 2013: $16,159,829,000,000.
       Fiscal year 2014: $17,022,631,000,000.
       (6) Debt held by the public.--The appropriate levels of 
     debt held by the public are as follows:
       Fiscal year 2009: $7,728,718,000,000.
       Fiscal year 2010: $8,778,081,000,000.
       Fiscal year 2011: $9,683,425,000,000.
       Fiscal year 2012: $10,345,343,000,000.
       Fiscal year 2013: $10,930,977,000,000.
       Fiscal year 2014: $11,499,230,000,000.

     SEC. 102. SOCIAL SECURITY.

       (a) Social Security Revenues.--For purposes of Senate 
     enforcement under sections 302 and 311 of the Congressional 
     Budget Act of 1974, the amounts of revenues of the Federal 
     Old-Age and Survivors Insurance Trust Fund and the Federal 
     Disability Insurance Trust Fund are as follows:
       Fiscal year 2009: $653,117,000,000.
       Fiscal year 2010: $668,208,000,000.
       Fiscal year 2011: $694,864,000,000.
       Fiscal year 2012: $726,045,000,000.
       Fiscal year 2013: $766,065,000,000.
       Fiscal year 2014: $802,166,000,000.
       (b) Social Security Outlays.--For purposes of Senate 
     enforcement under sections 302 and 311 of the Congressional 
     Budget Act of 1974, the amounts of outlays of the Federal 
     Old-Age and Survivors Insurance Trust Fund and the Federal 
     Disability Insurance Trust Fund are as follows:
       Fiscal year 2009: $513,029,000,000.
       Fiscal year 2010: $544,140,000,000.
       Fiscal year 2011: $564,523,000,000.
       Fiscal year 2012: $586,897,000,000.
       Fiscal year 2013: $612,017,000,000.
       Fiscal year 2014: $639,054,000,000.
       (c) Social Security Administrative Expenses.--In the 
     Senate, the amounts of new budget authority and budget 
     outlays of the Federal Old-Age and Survivors Insurance Trust 
     Fund and the Federal Disability Insurance Trust Fund for 
     administrative expenses are as follows:
       Fiscal year 2009:
       (A) New budget authority, $5,296,000,000.
       (B) Outlays, $4,945,000,000.
       Fiscal year 2010:
       (A) New budget authority, $6,072,000,000.
       (B) Outlays, $5,934,000,000.
       Fiscal year 2011:
       (A) New budget authority, $6,568,000,000.
       (B) Outlays, $6,433,000,000.
       Fiscal year 2012:
       (A) New budget authority, $6,895,000,000.
       (B) Outlays, $6,809,000,000.
       Fiscal year 2013:
       (A) New budget authority, $7,223,000,000.
       (B) Outlays, $7,148,000,000.
       Fiscal year 2014:
       (A) New budget authority, $7,599,000,000.
       (B) Outlays, $7,517,000,000.

     SEC. 103. POSTAL SERVICE DISCRETIONARY ADMINISTRATIVE 
                   EXPENSES.

       In the Senate, the amounts of new budget authority and 
     budget outlays of the Postal Service for discretionary 
     administrative expenses are as follows:
       Fiscal year 2009:
       (A) New budget authority, $253,000,000.
       (B) Outlays, $253,000,000.
       Fiscal year 2010:
       (A) New budget authority, $262,000,000.
       (B) Outlays, $262,000,000.
       Fiscal year 2011:
       (A) New budget authority, $267,000,000.
       (B) Outlays, $267,000,000.
       Fiscal year 2012:
       (A) New budget authority, $272,000,000.
       (B) Outlays, $272,000,000.
       Fiscal year 2013:
       (A) New budget authority, $277,000,000.
       (B) Outlays, $277,000,000.
       Fiscal year 2014:
       (A) New budget authority, $283,000,000.
       (B) Outlays, $283,000,000.

     SEC. 104. MAJOR FUNCTIONAL CATEGORIES.

       Congress determines and declares that the appropriate 
     levels of new budget authority and outlays for fiscal years 
     2009 through 2014 for each major functional category are:
       (1) National Defense (050):
       Fiscal year 2009:
       (A) New budget authority, $618,057,000,000.
       (B) Outlays, $646,810,000,000.
       Fiscal year 2010:
       (A) New budget authority, $562,033,000,000.
       (B) Outlays, $606,043,000,000.
       Fiscal year 2011:
       (A) New budget authority, $570,107,000,000.
       (B) Outlays, $587,945,000,000.
       Fiscal year 2012:
       (A) New budget authority, $579,135,000,000.
       (B) Outlays, $576,023,000,000.
       Fiscal year 2013:
       (A) New budget authority, $589,895,000,000.
       (B) Outlays, $584,670,000,000.
       Fiscal year 2014:
       (A) New budget authority, $603,828,000,000.
       (B) Outlays, $595,476,000,000.
       (2) International Affairs (150):
       Fiscal year 2009:
       (A) New budget authority, $40,885,000,000.
       (B) Outlays, $37,797,000,000.
       Fiscal year 2010:
       (A) New budget authority, $47,866,000,000.
       (B) Outlays, $44,668,000,000.

[[Page 10734]]

       Fiscal year 2011:
       (A) New budget authority, $51,505,000,000.
       (B) Outlays, $50,423,000,000.
       Fiscal year 2012:
       (A) New budget authority, $52,205,000,000.
       (B) Outlays, $52,078,000,000.
       Fiscal year 2013:
       (A) New budget authority, $53,553,000,000.
       (B) Outlays, $52,899,000,000.
       Fiscal year 2014:
       (A) New budget authority, $54,928,000,000.
       (B) Outlays, $52,777,000,000.
       (3) General Science, Space, and Technology (250):
       Fiscal year 2009:
       (A) New budget authority, $35,389,000,000.
       (B) Outlays, $30,973,000,000.
       Fiscal year 2010:
       (A) New budget authority, $31,139,000,000.
       (B) Outlays, $32,467,000,000.
       Fiscal year 2011:
       (A) New budget authority, $33,993,000,000.
       (B) Outlays, $34,532,000,000.
       Fiscal year 2012:
       (A) New budget authority, $34,246,000,000.
       (B) Outlays, $33,532,000,000.
       Fiscal year 2013:
       (A) New budget authority, $34,473,000,000.
       (B) Outlays, $33,823,000,000.
       Fiscal year 2014:
       (A) New budget authority, $34,841,000,000.
       (B) Outlays, $34,141,000,000.
       (4) Energy (270):
       Fiscal year 2009:
       (A) New budget authority, $43,919,000,000.
       (B) Outlays, $2,952,000,000.
       Fiscal year 2010:
       (A) New budget authority, $4,989,000,000.
       (B) Outlays, $6,275,000,000.
       Fiscal year 2011:
       (A) New budget authority, $5,037,000,000.
       (B) Outlays, $9,089,000,000.
       Fiscal year 2012:
       (A) New budget authority, $4,995,000,000.
       (B) Outlays, $11,760,000,000.
       Fiscal year 2013:
       (A) New budget authority, $5,272,000,000.
       (B) Outlays, $11,758,000,000.
       Fiscal year 2014:
       (A) New budget authority, $5,280,000,000.
       (B) Outlays, $11,121,000,000.
       (5) Natural Resources and Environment (300):
       Fiscal year 2009:
       (A) New budget authority, $56,009,000,000.
       (B) Outlays, $36,834,000,000.
       Fiscal year 2010:
       (A) New budget authority, $37,587,000,000.
       (B) Outlays, $40,557,000,000.
       Fiscal year 2011:
       (A) New budget authority, $37,859,000,000.
       (B) Outlays, $39,889,000,000.
       Fiscal year 2012:
       (A) New budget authority, $38,579,000,000.
       (B) Outlays, $39,535,000,000.
       Fiscal year 2013:
       (A) New budget authority, $38,718,000,000.
       (B) Outlays, $39,191,000,000.
       Fiscal year 2014:
       (A) New budget authority, $39,338,000,000.
       (B) Outlays, $39,322,000,000.
       (6) Agriculture (350):
       Fiscal year 2009:
       (A) New budget authority, $24,974,000,000.
       (B) Outlays, $23,070,000,000.
       Fiscal year 2010:
       (A) New budget authority, $23,690,000,000.
       (B) Outlays, $23,951,000,000.
       Fiscal year 2011:
       (A) New budget authority, $24,726,000,000.
       (B) Outlays, $24,025,000,000.
       Fiscal year 2012:
       (A) New budget authority, $21,640,000,000.
       (B) Outlays, $17,545,000,000.
       Fiscal year 2013:
       (A) New budget authority, $22,449,000,000.
       (B) Outlays, $22,026,000,000.
       Fiscal year 2014:
       (A) New budget authority, $23,116,000,000.
       (B) Outlays, $22,090,000,000.
       (7) Commerce and Housing Credit (370):
       Fiscal year 2009:
       (A) New budget authority, $694,439,000,000.
       (B) Outlays, $665,437,000,000.
       Fiscal year 2010:
       (A) New budget authority, $61,113,000,000.
       (B) Outlays, $85,750,000,000.
       Fiscal year 2011:
       (A) New budget authority, $26,181,000,000.
       (B) Outlays, $38,016,000,000.
       Fiscal year 2012:
       (A) New budget authority, $9,561,000,000.
       (B) Outlays, $8,649,000,000.
       Fiscal year 2013:
       (A) New budget authority, $17,247,000,000.
       (B) Outlays, $5,585,000,000.
       Fiscal year 2014:
       (A) New budget authority, $11,226,000,000.
       (B) Outlays, -$2,500,000,000.
       (8) Transportation (400):
       Fiscal year 2009:
       (A) New budget authority, $122,457,000,000.
       (B) Outlays, $87,784,000,000.
       Fiscal year 2010:
       (A) New budget authority, $88,151,000,000.
       (B) Outlays, $95,695,000,000.
       Fiscal year 2011:
       (A) New budget authority, $89,071,000,000.
       (B) Outlays, $96,474,000,000.
       Fiscal year 2012:
       (A) New budget authority, $90,047,000,000.
       (B) Outlays, $95,851,000,000.
       Fiscal year 2013:
       (A) New budget authority, $90,866,000,000.
       (B) Outlays, $96,150,000,000.
       Fiscal year 2014:
       (A) New budget authority, $91,809,000,000.
       (B) Outlays, $96,793,000,000.
       (9) Community and Regional Development (450):
       Fiscal year 2009:
       (A) New budget authority, $23,811,000,000.
       (B) Outlays, $29,983,000,000.
       Fiscal year 2010:
       (A) New budget authority, $18,308,000,000.
       (B) Outlays, $29,303,000,000.
       Fiscal year 2011:
       (A) New budget authority, $21,232,000,000.
       (B) Outlays, $27,530,000,000.
       Fiscal year 2012:
       (A) New budget authority, $16,311,000,000.
       (B) Outlays, $24,767,000,000.
       Fiscal year 2013:
       (A) New budget authority, $16,202,000,000.
       (B) Outlays, $21,945,000,000.
       Fiscal year 2014:
       (A) New budget authority, $16,270,000,000.
       (B) Outlays, $19,147,000,000.
       (10) Education, Training, Employment, and Social Services 
     (500):
       Fiscal year 2009:
       (A) New budget authority, $164,276,000,000.
       (B) Outlays, $73,219,000,000.
       Fiscal year 2010:
       (A) New budget authority, $94,430,000,000.
       (B) Outlays, $140,624,000,000.
       Fiscal year 2011:
       (A) New budget authority, $107,858,000,000.
       (B) Outlays, $141,412,000,000.
       Fiscal year 2012:
       (A) New budget authority, $117,121,000,000.
       (B) Outlays, $118,480,000,000.
       Fiscal year 2013:
       (A) New budget authority, $115,931,000,000.
       (B) Outlays, $118,911,000,000.
       Fiscal year 2014:
       (A) New budget authority, $125,788,000,000.
       (B) Outlays, $120,959,000,000.
       (11) Health (550):
       Fiscal year 2009:
       (A) New budget authority, $380,158,000,000.
       (B) Outlays, $354,397,000,000.
       Fiscal year 2010:
       (A) New budget authority, $384,309,000,000.
       (B) Outlays, $388,885,000,000.
       Fiscal year 2011:
       (A) New budget authority, $363,778,000,000.
       (B) Outlays, $367,412,000,000.
       Fiscal year 2012:
       (A) New budget authority, $367,840,000,000.
       (B) Outlays, $367,391,000,000.
       Fiscal year 2013:
       (A) New budget authority, $386,483,000,000.
       (B) Outlays, $382,172,000,000.
       Fiscal year 2014:
       (A) New budget authority, $395,248,000,000.
       (B) Outlays, $396,541,000,000.
       (12) Medicare (570):
       Fiscal year 2009:
       (A) New budget authority, $427,076,000,000.
       (B) Outlays, $426,736,000,000.
       Fiscal year 2010:
       (A) New budget authority, $449,668,000,000.
       (B) Outlays, $449,798,000,000.
       Fiscal year 2011:
       (A) New budget authority, $504,895,000,000.
       (B) Outlays, $504,721,000,000.
       Fiscal year 2012:
       (A) New budget authority, $505,686,000,000.
       (B) Outlays, $505,436,000,000.
       Fiscal year 2013:
       (A) New budget authority, $540,017,000,000.
       (B) Outlays, $540,146,000,000.
       Fiscal year 2014:
       (A) New budget authority, $593,421,000,000.
       (B) Outlays, $593,233,000,000.
       (13) Income Security (600):
       Fiscal year 2009:
       (A) New budget authority, $520,123,000,000.
       (B) Outlays, $503,020,000,000.
       Fiscal year 2010:
       (A) New budget authority, $536,740,000,000.
       (B) Outlays, $540,202,000,000.
       Fiscal year 2011:
       (A) New budget authority, $509,101,000,000.
       (B) Outlays, $512,335,000,000.
       Fiscal year 2012:
       (A) New budget authority, $451,472,000,000.
       (B) Outlays, $452,176,000,000.
       Fiscal year 2013:
       (A) New budget authority, $455,310,000,000.
       (B) Outlays, $455,184,000,000.
       Fiscal year 2014:
       (A) New budget authority, $455,984,000,000.
       (B) Outlays, $454,858,000,000.
       (14) Social Security (650):
       Fiscal year 2009:
       (A) New budget authority, $31,820,000,000.
       (B) Outlays, $31,264,000,000.
       Fiscal year 2010:
       (A) New budget authority, $20,255,000,000.
       (B) Outlays, $20,378,000,000.
       Fiscal year 2011:
       (A) New budget authority, $23,380,000,000.
       (B) Outlays, $23,513,000,000.
       Fiscal year 2012:
       (A) New budget authority, $26,478,000,000.
       (B) Outlays, $26,628,000,000.
       Fiscal year 2013:
       (A) New budget authority, $29,529,000,000.
       (B) Outlays, $29,679,000,000.
       Fiscal year 2014:
       (A) New budget authority, $32,728,000,000.
       (B) Outlays, $32,728,000,000.
       (15) Veterans Benefits and Services (700):
       Fiscal year 2009:
       (A) New budget authority, $97,705,000,000.
       (B) Outlays, $94,831,000,000.
       Fiscal year 2010:
       (A) New budget authority, $106,498,000,000.
       (B) Outlays, $105,578,000,000.
       Fiscal year 2011:

[[Page 10735]]

       (A) New budget authority, $112,977,000,000.
       (B) Outlays, $112,520,000,000.
       Fiscal year 2012:
       (A) New budget authority, $108,839,000,000.
       (B) Outlays, $108,242,000,000.
       Fiscal year 2013:
       (A) New budget authority, $113,942,000,000.
       (B) Outlays, $113,293,000,000.
       Fiscal year 2014:
       (A) New budget authority, $116,163,000,000.
       (B) Outlays, $115,624,000,000.
       (16) Administration of Justice (750):
       Fiscal year 2009:
       (A) New budget authority, $55,783,000,000.
       (B) Outlays, $49,853,000,000.
       Fiscal year 2010:
       (A) New budget authority, $53,400,000,000.
       (B) Outlays, $52,043,000,000.
       Fiscal year 2011:
       (A) New budget authority, $53,892,000,000.
       (B) Outlays, $55,589,000,000.
       Fiscal year 2012:
       (A) New budget authority, $53,738,000,000.
       (B) Outlays, $55,468,000,000.
       Fiscal year 2013:
       (A) New budget authority, $53,569,000,000.
       (B) Outlays, $54,537,000,000.
       Fiscal year 2014:
       (A) New budget authority, $54,247,000,000.
       (B) Outlays, $54,058,000,000.
       (17) General Government (800):
       Fiscal year 2009:
       (A) New budget authority, $30,405,000,000.
       (B) Outlays, $24,629,000,000.
       Fiscal year 2010:
       (A) New budget authority, $21,979,000,000.
       (B) Outlays, $22,757,000,000.
       Fiscal year 2011:
       (A) New budget authority, $22,264,000,000.
       (B) Outlays, $23,099,000,000.
       Fiscal year 2012:
       (A) New budget authority, $22,620,000,000.
       (B) Outlays, $23,689,000,000.
       Fiscal year 2013:
       (A) New budget authority, $22,396,000,000.
       (B) Outlays, $23,196,000,000.
       Fiscal year 2014:
       (A) New budget authority, $22,898,000,000.
       (B) Outlays, $23,167,000,000.
       (18) Net Interest (900):
       Fiscal year 2009:
       (A) New budget authority, $288,952,000,000.
       (B) Outlays, $288,952,000,000.
       Fiscal year 2010:
       (A) New budget authority, $284,153,000,000.
       (B) Outlays, $284,153,000,000.
       Fiscal year 2011:
       (A) New budget authority, $323,325,000,000.
       (B) Outlays, $323,325,000,000.
       Fiscal year 2012:
       (A) New budget authority, $387,488,000,000.
       (B) Outlays, $387,488,000,000.
       Fiscal year 2013:
       (A) New budget authority, $470,412,000,000.
       (B) Outlays, $470,412,000,000.
       Fiscal year 2014:
       (A) New budget authority, $558,265,000,000.
       (B) Outlays, $558,265,000,000.
       (19) Allowances (920):
       Fiscal year 2009:
       (A) New budget authority, $7,150,000,000.
       (B) Outlays, $1,788,000,000.
       Fiscal year 2010:
       (A) New budget authority, $1,157,000,000.
       (B) Outlays, $2,548,000,000.
       Fiscal year 2011:
       (A) New budget authority, -$14,278,000,000.
       (B) Outlays, -$8,066,000,000.
       Fiscal year 2012:
       (A) New budget authority, -$14,914,000,000.
       (B) Outlays, -$13,147,000,000.
       Fiscal year 2013:
       (A) New budget authority, -$16,126,000,000.
       (B) Outlays, -$14,979,000,000.
       Fiscal year 2014:
       (A) New budget authority, -$16,670,000,000.
       (B) Outlays, -$15,235,000,000.
       (20) Undistributed Offsetting Receipts (950):
       Fiscal year 2009:
       (A) New budget authority, -$78,206,000,000.
       (B) Outlays, -$78,206,000,000.
       Fiscal year 2010:
       (A) New budget authority, -$68,774,000,000.
       (B) Outlays, -$68,774,000,000.
       Fiscal year 2011:
       (A) New budget authority, -$71,993,000,000.
       (B) Outlays, -$71,993,000,000.
       Fiscal year 2012:
       (A) New budget authority, -$74,970,000,000.
       (B) Outlays, -$74,970,000,000.
       Fiscal year 2013:
       (A) New budget authority, -$77,945,000,000.
       (B) Outlays, -$77,945,000,000.
       Fiscal year 2014:
       (A) New budget authority, -$79,861,000,000.
       (B) Outlays, -$79,861,000,000.
       (21) Overseas Deployments and Other Activities (970):
       Fiscal year 2009:
       (A) New budget authority, $90,745,000,000.
       (B) Outlays, $24,147,000,000.
       Fiscal year 2010:
       (A) New budget authority, $130,000,000,000.
       (B) Outlays, $98,410,000,000.
       Fiscal year 2011:
       (A) New budget authority, $50,000,000,000.
       (B) Outlays, $76,118,000,000.
       Fiscal year 2012:
       (A) New budget authority, $50,000,000,000.
       (B) Outlays, $65,221,000,000.
       Fiscal year 2013:
       (A) New budget authority, $50,000,000,000.
       (B) Outlays, $56,722,000,000.
       Fiscal year 2014:
       (A) New budget authority, $50,000,000,000.
       (B) Outlays, $52,110,000,000.

                        TITLE II--RECONCILIATION

     SEC. 201. RECONCILIATION IN THE SENATE.

       (a) Committee on Finance.--The Senate Committee on Finance 
     shall report changes in laws within its jurisdiction to 
     reduce the deficit by $1,000,000,000 for the period of fiscal 
     years 2009 through 2014.
       (b) Committee on Health, Education, Labor, and Pensions.--
     The Senate Committee on Health, Education, Labor, and 
     Pensions shall report changes in laws within its jurisdiction 
     to reduce the deficit by $1,000,000,000 for the period of 
     fiscal years 2009 through 2014.
       (c) Submissions.--In the Senate, not later than October 15, 
     2009, the Senate committees named in subsections (a) and (b) 
     shall submit their recommendations to the Senate Committee on 
     the Budget. Upon receiving all such recommendations, the 
     Senate Committee on the Budget shall report to the Senate a 
     reconciliation bill carrying out all such recommendations 
     without any substantive revision.

     SEC. 202. RECONCILIATION IN THE HOUSE.

       (a) Health Care Reform.--
       (1) The House Committee on Energy and Commerce shall report 
     changes in laws to reduce the deficit by $1,000,000,000 for 
     the period of fiscal years 2009 through 2014.
       (2) The House Committee on Ways and Means shall report 
     changes in laws to reduce the deficit by $1,000,000,000 for 
     the period of fiscal years 2009 through 2014.
       (3) The House Committee on Education and Labor shall report 
     changes in laws to reduce the deficit by $1,000,000,000 for 
     the period of fiscal years 2009 through 2014.
       (b) Investing in Education.--The House Committee on 
     Education and Labor shall report changes in laws to reduce 
     the deficit by $1,000,000,000 for the period of fiscal years 
     2009 through 2014.
       (c) Submissions.--In the House, not later than October 15, 
     2009, the House committees named in subsections (a) and (b) 
     shall submit their recommendations to the House Committee on 
     the Budget. Upon receiving all such recommendations, the 
     House Committee on the Budget shall report to the House a 
     reconciliation bill carrying out all such changes without any 
     substantive revision.

                        TITLE III--RESERVE FUNDS

                    Subtitle A--Senate Reserve Funds

     SEC. 301. DEFICIT-NEUTRAL RESERVE FUND TO TRANSFORM AND 
                   MODERNIZE AMERICA'S HEALTH CARE SYSTEM.

       (a) Transform and Modernize America's Health Care System.--
     The chairman of the Senate Committee on the Budget may revise 
     the allocations of a committee or committees, aggregates, and 
     other appropriate levels and limits in this resolution, and 
     make adjustments to the pay-as-you-go ledger that are 
     deficit-neutral over 11 years, for one or more bills, joint 
     resolutions, amendments, motions, or conference reports that 
     are deficit-neutral, reduce excess cost growth in health care 
     spending and are fiscally sustainable over the long term, 
     and--
       (1) protect families' financial health including 
     restraining the growth of health premiums and other health-
     related costs;
       (2) make health coverage affordable to businesses (in 
     particular to small business and individuals who are self-
     employed), households, and governments, including by reducing 
     wasteful and inefficient spending in the health care system 
     with periodic reports on savings achieved through these 
     efforts, and by moving forward with improvements to the 
     health care delivery system, including Medicare;
       (3) aim for quality, affordable health care for all 
     Americans;
       (4) provide portability of coverage and assurance of 
     coverage with appropriate consumer protections;
       (5) guarantee choice of health plans and health care 
     providers to Americans;
       (6) invest in prevention and wellness and address issues of 
     health disparities;
       (7) improve patient safety and quality care, including the 
     appropriate use of health information technology and health 
     data, and promote transparency in cost and quality 
     information to Americans; or
       (8) maintain long-term fiscal sustainability and pays for 
     itself by reducing health care cost growth, improving 
     productivity, or dedicating additional sources of revenue;
     by the amounts provided in such legislation for those 
     purposes, provided that such legislation would not increase 
     the deficit over the period of the total of fiscal years 2009 
     through 2019.
       (b) Other Revisions.--The chairman of the Senate Committee 
     on the Budget may revise the allocations of a committee or 
     committees, aggregates, and other appropriate levels and 
     limits in this resolution for one or more bills, joint 
     resolutions, amendments, motions, or conference reports 
     that--
       (1) increase the reimbursement rate for physician services 
     under section 1848(d) of the Social Security Act and that 
     include financial incentives for physicians to improve the 
     quality and efficiency of items and services furnished to 
     Medicare beneficiaries through the use of consensus-based 
     quality measures;
       (2) include measures to encourage physicians to train in 
     primary care residencies and ensure an adequate supply of 
     residents and physicians;
       (3) improve the Medicare program for beneficiaries and 
     protect access to outpatient therapy services (including 
     physical therapy, occupational therapy, and speech-language 
     pathology services) through measures such as repealing the 
     current outpatient therapy caps while protecting 
     beneficiaries from associated premium increases; or
       (4) promote payment policies that address the systemic 
     inequities of Medicare and Medicaid

[[Page 10736]]

     reimbursement that lead to access problems in rural areas, 
     including access to primary care and outpatient services, 
     hospitals, and an adequate supply of providers in the 
     workforce or that reward quality and efficient care and 
     address geographic variations in spending in the Medicare 
     program;

     by the amounts provided in such legislation for those 
     purposes, provided that such legislation would not increase 
     the deficit over either the period of the total of fiscal 
     years 2009 through 2014 or the period of the total of fiscal 
     years 2009 through 2019.

     SEC. 302. DEFICIT-NEUTRAL RESERVE FUND TO INVEST IN CLEAN 
                   ENERGY AND PRESERVE THE ENVIRONMENT.

       (a) Investing in Clean Energy and Preserving the 
     Environment.--The chairman of the Senate Committee on the 
     Budget may revise the allocations of a committee or 
     committees, aggregates, and other appropriate levels and 
     limits in this resolution for one or more bills, joint 
     resolutions, amendments, motions, or conference reports that 
     would--
       (1) reduce our Nation's dependence on imported energy;
       (2) produce green jobs;
       (3) promote renewable energy development (including 
     expediting research on the viability of using higher ethanol 
     blends at the service station pump);
       (4) authorize long-term contracts for procurement of 
     alternative fuels from domestic sources, provided that such 
     procurement is consistent with section 526 of the Energy 
     Independence and Security Act of 2007 (Public Law 110-140);
       (5) accelerate the research, development, demonstration, 
     and deployment of advanced technologies to capture and store 
     carbon dioxide emissions from coal-fired power plants and 
     other industrial emission sources and to use coal in an 
     environmentally acceptable manner;
       (6) strengthen and retool manufacturing supply chains;
       (7) create a clean energy investment fund;
       (8) improve electricity transmission;
       (9) encourage conservation and efficiency;
       (10) make improvements to the Low-Income Home Energy 
     Assistance Program;
       (11) set aside additional funding from the Oil Spill 
     Liability Trust Fund for Arctic oil spill research;
       (12) implement water settlements;
       (13) provide additional resources for wildland fire 
     management activities (including the removal of the 
     requirement for State matching funds); or
       (14) preserve or protect public lands, oceans or coastal 
     areas;
     by the amounts provided in such legislation for those 
     purposes, provided that such legislation would not increase 
     the deficit over either the period of the total of fiscal 
     years 2009 through 2014 or the period of the total of fiscal 
     years 2009 through 2019. The legislation may include tax 
     provisions.
       (b) Climate Change Legislation.--The chairman of the Senate 
     Committee on the Budget may revise the allocations of a 
     committee or committees, aggregates, and other appropriate 
     levels and limits in this resolution for one or more bills, 
     joint resolutions, amendments, motions, or conference reports 
     that would--
       (1) invest in clean energy technology initiatives;
       (2) decrease greenhouse gas emissions;
       (3) create new jobs in a clean technology economy;
       (4) strengthen the manufacturing competitiveness of the 
     United States;
       (5) diversify the domestic clean energy supply to increase 
     the energy security of the United States;
       (6) protect consumers (including policies that address 
     regional differences);
       (7) provide incentives for cost-savings achieved through 
     energy efficiencies;
       (8) provide voluntary opportunities for agriculture and 
     forestry communities to contribute to reducing the levels of 
     greenhouse gases in the atmosphere; and
       (9) help families, workers, communities, and businesses 
     make the transition to a clean energy economy;

     by the amounts provided in such legislation for those 
     purposes, provided that such legislation would not increase 
     the deficit over either the period of the total of fiscal 
     years 2009 through 2014 or the period of the total of fiscal 
     years 2009 through 2019.

     SEC. 303. DEFICIT-NEUTRAL RESERVE FUND FOR HIGHER EDUCATION.

       The chairman of the Senate Committee on the Budget may 
     revise the allocations of a committee or committees, 
     aggregates, and other appropriate levels and limits in this 
     resolution for one or more bills, joint resolutions, 
     amendments, motions, or conference reports that make higher 
     education more accessible and affordable while maintaining a 
     competitive private sector role in the student loan program, 
     which may include legislation to expand and strengthen 
     student aid, such as Pell Grants, or increase college 
     enrollment and completion rates for low-income students, by 
     the amounts provided in such legislation for those purposes, 
     provided that such legislation would not increase the deficit 
     over either the period of the total of fiscal years 2009 
     through 2014 or the period of the total of fiscal years 2009 
     through 2019. The legislation may include tax provisions.

     SEC. 304. DEFICIT-NEUTRAL RESERVE FUND FOR CHILD NUTRITION 
                   AND WIC.

       The chairman of the Senate Committee on the Budget may 
     revise the allocations of a committee or committees, 
     aggregates, and other appropriate levels and limits in this 
     resolution for one or more bills, joint resolutions, 
     amendments, motions, or conference reports that would 
     reauthorize child nutrition programs or the Special 
     Supplemental Nutrition Program for Women, Infants, and 
     Children (the WIC program), by the amounts provided in such 
     legislation for those purposes, provided that such 
     legislation would not increase the deficit over either the 
     period of the total of fiscal years 2009 through 2014 or the 
     period of the total of fiscal years 2009 through 2019.

     SEC. 305. DEFICIT-NEUTRAL RESERVE FUND FOR INVESTMENTS IN 
                   AMERICA'S INFRASTRUCTURE.

       (a) Infrastructure.--The chairman of the Senate Committee 
     on the Budget may revise the allocations of a committee or 
     committees, aggregates, and other appropriate levels and 
     limits in this resolution for one or more bills, joint 
     resolutions, amendments, motions, or conference reports that 
     provide for a robust Federal investment in America's 
     infrastructure, which may include projects for public 
     housing, energy, water, transportation, freight and passenger 
     rail, or other infrastructure projects, by the amounts 
     provided in that legislation for those purposes, provided 
     that such legislation would not increase the deficit over 
     either the period of the total of fiscal years 2009 through 
     2014 or the period of the total of fiscal years 2009 through 
     2019.
       (b) Surface Transportation.--The chairman of the Senate 
     Committee on the Budget may revise the allocations of a 
     committee or committees, aggregates, and other appropriate 
     levels and limits in this resolution for one or more bills, 
     joint resolutions, amendments, motions, or conference reports 
     that provide new contract authority paid out of the Highway 
     Trust Fund for surface transportation programs to the extent 
     such new contract authority is offset by an increase in 
     receipts to the Highway Trust Fund (excluding transfers from 
     the general fund of the Treasury into the Highway Trust Fund 
     not offset by a similar increase in receipts), provided 
     further that such legislation would not increase the deficit 
     over either the period of the total of fiscal years 2009 
     through 2014 or the period of the total of fiscal years 2009 
     through 2019.
       (c) Multimodal Transportation Projects.--The chairman of 
     the Senate Committee on the Budget may revise the allocations 
     of a committee or committees, aggregates, and other 
     appropriate levels and limits in this resolution for one or 
     more bills, joint resolutions, amendments, motions, or 
     conference reports that would authorize multimodal 
     transportation projects that--
       (1) provide a set of performance measures;
       (2) require a cost-benefit analysis be conducted to ensure 
     accountability and overall project goals are met; and
       (3) provide flexibility for States, cities, and localities 
     to create strategies that meet the needs of their 
     communities;

     by the amounts provided in that legislation for those 
     purposes, provided that such legislation would not increase 
     the deficit over either the period of the total of fiscal 
     years 2009 through 2014 or the period of the total of fiscal 
     years 2009 through 2019.
       (d) Flood Control Projects and Insurance Reform.--The 
     chairman of the Senate Committee on the Budget may revise the 
     allocations of a committee or committees, aggregates, and 
     other appropriate levels and limits in this resolution for 
     one or more bills, joint resolutions, amendments, motions, or 
     conference reports that provide for levee modernization, 
     maintenance, repair, and improvement, or provide for flood 
     insurance reform and modernization, by the amounts provided 
     in that legislation for those purposes, provided that such 
     legislation would not increase the deficit over either the 
     period of the total of fiscal years 2009 through 2014 or the 
     period of the total of fiscal years 2009 through 2019.

     SEC. 306. DEFICIT-NEUTRAL RESERVE FUND TO PROMOTE ECONOMIC 
                   STABILIZATION AND GROWTH.

       (a) Manufacturing.--The chairman of the Senate Committee on 
     the Budget may revise the allocations of a committee or 
     committees, aggregates, and other appropriate levels and 
     limits in this resolution for one or more bills, joint 
     resolutions, amendments, motions, or conference reports, 
     including tax legislation, that would revitalize and 
     strengthen the United States domestic manufacturing sector by 
     increasing Federal research and development, by expanding the 
     scope and effectiveness of manufacturing programs across the 
     Federal Government, by increasing efforts to train and 
     retrain manufacturing workers, by enhancing workers' 
     technical skills in the use of the new advanced manufacturing 
     technologies to produce competitive energy efficient 
     products, by increasing support for sector workforce 
     training, by increasing support for the redevelopment of 
     closed manufacturing plants, by increasing support for 
     development of alternative fuels and leap-ahead automotive 
     and energy technologies such as advanced batteries, or by 
     establishing tax incentives to encourage the continued 
     production in the United States of advanced technologies and 
     the infrastructure to support such technologies, by the 
     amounts provided in that legislation for those purposes, 
     provided that such legislation would not increase the deficit 
     over either the period of the total of fiscal years 2009 
     through 2014 or the period of the total of fiscal years 2009 
     through 2019.
       (b) Tax Relief.--The chairman of the Senate Committee on 
     the Budget may revise the allocations of a committee or 
     committees, aggregates, and other appropriate levels in this 
     resolution

[[Page 10737]]

     by the amounts provided by one or more bills, joint 
     resolutions, amendments, motions, or conference reports that 
     would provide tax relief, including but not limited to 
     extensions of expiring and expired tax relief, or refundable 
     tax relief, by the amounts provided in such legislation for 
     those purposes, provided that such legislation would not 
     increase the deficit over either the period of the total of 
     fiscal years 2009 through 2014 or the period of the total of 
     fiscal years 2009 through 2019.
       (c) Tax Reform.--The chairman of the Senate Committee on 
     the Budget may revise the allocations of a committee or 
     committees, aggregates, and other appropriate levels in this 
     resolution for one or more bills, joint resolutions, 
     amendments, motions, or conference reports that would reform 
     the Internal Revenue Code to ensure a sustainable revenue 
     base that would lead to a fairer and more efficient tax 
     system and to a more competitive business environment for 
     United States enterprises, by the amounts provided in such 
     legislation for those purposes, provided that such 
     legislation would not increase the deficit over either the 
     period of the total of fiscal years 2009 through 2014 or the 
     period of the total of fiscal years 2009 through 2019.
       (d) Trade.--The chairman of the Senate Committee on the 
     Budget may revise the allocations of a committee or 
     committees, aggregates, and other appropriate levels in this 
     resolution for one or more bills, joint resolutions, 
     amendments, motions, or conference reports related to trade 
     by the amounts provided in such legislation for those 
     purposes, provided that such legislation would not increase 
     the deficit over either the period of the total of fiscal 
     years 2009 through 2014 or the period of the total of fiscal 
     years 2009 through 2019.
       (e) Housing Assistance.--The chairman of the Senate 
     Committee on the Budget may revise the allocations of a 
     committee or committees, aggregates, and other appropriate 
     levels and limits in this resolution for one or more bills, 
     joint resolutions, amendments, motions, or conference reports 
     related to housing assistance, which may include low income 
     rental assistance, or assistance provided through the Housing 
     Trust Fund created under section 1131 of the Housing and 
     Economic Recovery Act of 2008, by the amounts provided in 
     such legislation for those purposes, provided that such 
     legislation would not increase the deficit over either the 
     period of the total of fiscal years 2009 through 2014 or the 
     period of the total of fiscal years 2009 through 2019.
       (f) Unemployment Mitigation.--The chairman of the Senate 
     Committee on the Budget may revise the allocations of a 
     committee or committees, aggregates, and other appropriate 
     levels in this resolution for one or more bills, joint 
     resolutions, amendments, motions, or conference reports that 
     reduce the unemployment rate or provide assistance to the 
     unemployed, particularly in the states and localities with 
     the highest rates of unemployment, or improve the 
     implementation of the unemployment compensation program, by 
     the amounts provided in such legislation for those purposes, 
     provided that such legislation would not increase the deficit 
     over either the period of the total of fiscal years 2009 
     through 2014 or the period of the total of fiscal years 2009 
     through 2019.

     SEC. 307. DEFICIT-NEUTRAL RESERVE FUND FOR AMERICA'S VETERANS 
                   AND WOUNDED SERVICEMEMBERS.

       The chairman of the Senate Committee on the Budget may 
     revise the allocations of a committee or committees, 
     aggregates, and other appropriate levels in this resolution 
     for one or more bills, joint resolutions, amendments, 
     motions, or conference reports that would--
       (1) expand the number of disabled military retirees who 
     receive both disability compensation and retired pay;
       (2) accelerate the phase-in of concurrent receipt;
       (3) reduce or eliminate the offset between Survivor Benefit 
     Plan annuities and Veterans' Dependency and Indemnity 
     Compensation;
       (4) enhance or maintain the affordability of health care 
     for military personnel, military retirees or veterans;
       (5) improve disability benefits or evaluations for wounded 
     or disabled military personnel or veterans (including 
     measures to expedite the claims process);
       (6) enhance servicemember education benefits for members of 
     the National Guard and Reserve by ensuring those benefits 
     keep pace with the national average cost of tuition; or
       (7) expand veterans' benefits (including for veterans 
     living in rural areas);
     by the amounts provided in such legislation for those 
     purposes, provided that such legislation would not increase 
     the deficit over either the period of the total of fiscal 
     years 2009 through 2014 or the period of the total of fiscal 
     years 2009 through 2019.

     SEC. 308. DEFICIT-NEUTRAL RESERVE FUND FOR JUDICIAL PAY AND 
                   JUDGESHIPS, POSTAL RETIREE ASSISTANCE, AND 
                   CERTAIN PENSION OBLIGATIONS.

       (a) Judicial Pay and Judgeships.--The chairman of the 
     Senate Committee on the Budget may revise the allocations of 
     a committee or committees, aggregates, and other appropriate 
     levels and limits in this resolution for one or more bills, 
     joint resolutions, amendments, motions, or conference reports 
     that would authorize salary adjustments for justices and 
     judges of the United States, or increase the number of 
     Federal judgeships, by the amounts provided in such 
     legislation for those purposes, provided that such 
     legislation would not increase the deficit over either the 
     period of the total of fiscal years 2009 through 2014 or the 
     period of the total of fiscal years 2009 through 2019.
       (b) Postal Retirees.--The chairman of the Senate Committee 
     on the Budget may revise the allocations of a committee or 
     committees, aggregates, and other appropriate levels in this 
     resolution for one or more bills, joint resolutions, 
     amendments, motions, or conference reports relating to 
     adjustments to funding for postal retiree health coverage, by 
     the amounts provided in such legislation for those purposes, 
     provided that such legislation would not increase the deficit 
     over either the period of the total of fiscal years 2009 
     through 2014 or the period of the total of fiscal years 2009 
     through 2019.
       (c) Pension Obligations.--The chairman of the Senate 
     Committee on the Budget may revise the allocations of a 
     committee or committees, aggregates, and other appropriate 
     levels in this resolution for one or more bills, joint 
     resolutions, amendments, motions, or conference reports that 
     would authorize funding to cover the full cost of pension 
     obligations for current and past employees of laboratories 
     and environmental cleanup sites under the jurisdiction of the 
     Department of Energy (including benefits paid to security 
     personnel) in a manner that does not impact the missions of 
     those laboratories and environmental cleanup sites, by the 
     amounts provided in such legislation for those purposes, 
     provided that such legislation would not increase the deficit 
     over either the period of the total of fiscal years 2009 
     through 2014 or the period of the total of fiscal years 2009 
     through 2019.

     SEC. 309. DEFICIT-NEUTRAL RESERVE FUND FOR DEFENSE 
                   ACQUISITION AND FEDERAL CONTRACTING REFORM.

       The chairman of the Senate Committee on the Budget may 
     revise the allocations of a committee or committees, 
     aggregates, and other appropriate levels and limits in this 
     resolution for one or more bills, joint resolutions, 
     amendments, motions, or conference reports that--
       (1) provide funding to the Department of Defense for 
     additional activities to reduce waste, fraud, abuse and 
     overpayments in defense contracting;
       (2) enhance the capability of the Federal acquisition or 
     contracting workforce to achieve better value for taxpayers;
       (3) reduce the use of no-bid and cost-plus contracts;
       (4) reform Department of Defense processes for acquiring 
     weapons systems or services in order to reduce costs, improve 
     cost and schedule estimation, enhance developmental testing 
     of weapons, enhance oversight, or increase the rigor of 
     reviews of programs that experience critical cost growth;
       (5) reduce the award of contracts to contractors with 
     seriously delinquent tax debts;
       (6) reduce the use of non-competitive contracts and the 
     continuation of task orders for logistics support;
       (7) reduce the use of contracts for acquisition, oversight, 
     and management support services;
       (8) enhance the capability of auditors and inspectors 
     general to oversee Federal acquisition and procurement;
       (9) reform the processes for payment of bonuses to 
     contractors and government executives responsible for over-
     budget projects and programs that fail to meet basic 
     performance requirements; or
       (10) achieve savings by requiring that Federal departments 
     and agencies eliminate improper payments and increase the use 
     of recovery audits;
     by the amounts provided in such legislation for those 
     purposes, provided that such legislation would not increase 
     the deficit over either the period of the total of fiscal 
     years 2009 through 2014 or the period of the total of fiscal 
     years 2009 through 2019.

     SEC. 310. DEFICIT-NEUTRAL RESERVE FUND FOR INVESTMENTS IN OUR 
                   NATION'S COUNTIES AND SCHOOLS.

       The chairman of the Senate Committee on the Budget may 
     revise the allocations of a committee or committees, 
     aggregates, and other appropriate levels and limits in this 
     resolution for one or more bills, joint resolutions, 
     amendments, motions, or conference reports that provide for 
     the reauthorization of the Secure Rural Schools and Community 
     Self Determination Act of 2000 (Public Law 106-393) or make 
     changes to the Payments in Lieu of Taxes Act of 1976 (Public 
     Law 94-565), or both, by the amounts provided by that 
     legislation for those purposes, provided that such 
     legislation would not increase the deficit over either the 
     period of the total of fiscal years 2009 through 2014 or the 
     period of the total of fiscal years 2009 through 2019.

     SEC. 311. DEFICIT-NEUTRAL RESERVE FUND FOR THE FOOD AND DRUG 
                   ADMINISTRATION.

       (a) Regulation.--The chairman of the Senate Committee on 
     the Budget may revise the allocations of a committee or 
     committees, aggregates, and other appropriate levels in this 
     resolution for one or more bills, joint resolutions, 
     amendments, motions, or conference reports that authorize the 
     Food and Drug Administration to regulate products and assess 
     user fees on manufacturers and importers of those products to 
     cover the cost of the Food and Drug Administration's 
     regulatory activities, by the amounts provided in that 
     legislation for those purposes, provided that such 
     legislation would not increase the deficit over either the 
     period of the total of fiscal years 2009 through 2014 or the 
     period of the total of fiscal years 2009 through 2019.
       (b) Drug Importation.--The chairman of the Senate Committee 
     on the Budget may revise the allocations of a committee or 
     committees, aggregates, and other appropriate levels in this 
     resolution for one or more bills, joint resolutions,

[[Page 10738]]

     amendments, motions, or conference reports that permit the 
     safe importation of prescription drugs approved by the Food 
     and Drug Administration from a specified list of countries, 
     by the amounts provided in such legislation for those 
     purposes, provided that such legislation would not increase 
     the deficit over either the period of the total of fiscal 
     years 2009 through 2014 or the period of the total of fiscal 
     years 2009 through 2019.
       (c) Food Safety.--The chairman of the Senate Committee on 
     the Budget may revise the allocations of a committee or 
     committees, aggregates, and other appropriate levels and 
     limits in this resolution for one or more bills, joint 
     resolutions, amendments, motions, or conference reports that 
     would improve the safety of the food supply in the United 
     States, by the amounts provided in such legislation for these 
     purposes, provided that such legislation would not increase 
     the deficit over either the period of the total of fiscal 
     years 2009 through 2014 or the period of the total of fiscal 
     years 2009 through 2019.

     SEC. 312. DEFICIT-NEUTRAL RESERVE FUND FOR A COMPREHENSIVE 
                   INVESTIGATION INTO THE CURRENT FINANCIAL 
                   CRISIS.

       The chairman of the Senate Committee on the Budget may 
     revise the allocations of a committee or committees, 
     aggregates, and other appropriate levels and limits in this 
     resolution for one or more bills, joint resolutions, 
     amendments, motions, or conference reports that provide 
     resources for a comprehensive investigation to determine the 
     cause of the current financial crisis, hold those responsible 
     accountable, and provide recommendations to prevent another 
     financial crisis of this magnitude from occurring again by 
     the amounts provided in such legislation for those purposes, 
     provided that such legislation would not increase the deficit 
     over either the period of the total of fiscal years 2009 
     through 2014 or the period of the total of fiscal years 2009 
     through 2019.

     SEC. 313. DEFICIT-NEUTRAL RESERVE FUND FOR INCREASED 
                   TRANSPARENCY AT THE FEDERAL RESERVE.

       The chairman of the Senate Committee on the Budget may 
     revise the allocations of a committee or committees, 
     aggregates, and other appropriate levels and limits in this 
     resolution for one or more bills, joint resolutions, 
     amendments, motions, or conference reports that increase 
     transparency at the Federal Reserve System, including audits 
     of the Board of Governors of the Federal Reserve System and 
     the Federal reserve banks, to include--
       (1) an evaluation of the appropriate number and the 
     associated costs of Federal reserve banks;
       (2) publication on its website, with respect to all lending 
     and financial assistance facilities created by the Board to 
     address the financial crisis, of--
       (A) the nature and amounts of the collateral that the 
     central bank is accepting on behalf of American taxpayers in 
     the various lending programs, on no less than a monthly 
     basis;
       (B) the extent to which changes in valuation of credit 
     extensions to various special purpose vehicles, such as 
     Maiden Lane I, Maiden Lane II, and Maiden Lane III, are a 
     result of losses on collateral which will not be recovered;
       (C) the number of borrowers that participate in each of the 
     lending programs and details of the credit extended, 
     including the extent to which the credit is concentrated in 
     one or more institutions; and
       (D) information on the extent to which the central bank is 
     contracting for services of private sector firms for the 
     design, pricing, management, and accounting for the various 
     lending programs and the terms and nature of such contracts 
     and bidding processes; and
       (3) including the identity of each entity to which the 
     Board has provided all loans and other financial assistance 
     since March 24, 2008, the value or amount of that financial 
     assistance, and what that entity is doing with such financial 
     assistance;

     by the amounts provided in such legislation for those 
     purposes, provided that such legislation would not increase 
     the deficit over either the period of the total of fiscal 
     years 2009 through 2014 or the period of the total of fiscal 
     years 2009 through 2019.

     SEC. 314. DEFICIT-NEUTRAL RESERVE FUND FOR 21ST CENTURY 
                   COMMUNITY LEARNING CENTERS.

       The chairman of the Senate Committee on the Budget may 
     revise the allocations of a committee or committees, 
     aggregates, and other levels and limits in this resolution 
     for one or more bills, joint resolutions, amendments, 
     motions, or conference reports that would increase funding 
     for the 21st Century Community Learning Centers program by 
     the amounts provided in such legislation for such purpose, 
     provided that such legislation would not increase the deficit 
     over either the period of the total of fiscal years 2009 
     through 2014 or the period of the total of fiscal years 2009 
     through 2019.

     SEC. 315. DEFICIT-NEUTRAL RESERVE FUND FOR PROVISION OF 
                   CRITICAL RESOURCES TO FIREFIGHTERS AND FIRE 
                   DEPARTMENTS.

       The chairman of the Senate Committee on the Budget may 
     revise the allocations of a committee or committees, 
     aggregates, and other levels and limits in this resolution 
     for one or more bills, joint resolutions, amendments, 
     motions, or conference reports that would provide 
     firefighters and fire departments with critical resources 
     under the Assistance to Firefighters Grant and the Staffing 
     for Adequate Fire and Emergency Response Firefighters Grant 
     of the Federal Emergency Management Agency, by the amounts 
     provided in such legislation for such purpose, provided that 
     such legislation would not increase the deficit over either 
     the period of the total of fiscal years 2009 through 2014 or 
     the period of the total of fiscal years 2009 through 2019.

     SEC. 316. DEFICIT-NEUTRAL RESERVE FUND TO PROMOTE TAX EQUITY 
                   FOR STATES WITHOUT PERSONAL INCOME TAXES, AND 
                   OTHER SELECTED TAX RELIEF POLICIES.

       The chairman of the Senate Committee on the Budget may 
     revise the allocations of a committee or committees, 
     aggregates, and other appropriate levels in this resolution 
     for one or more bills, joint resolutions, amendments, 
     motions, or conference reports that would extend permanently 
     the deduction for State and local sales taxes, extend 
     incentives for enhanced charitable giving from individual 
     retirement accounts, including life-income gifts, or enhance 
     the employer-provided child care credit and the dependent 
     care tax credit, by the amounts provided in such legislation 
     for those purposes, provided that such legislation would not 
     increase the deficit over either the period of the total of 
     fiscal years 2009 through 2014 or the period of the total of 
     fiscal years 2009 through 2019.

     SEC. 317. DEFICIT-NEUTRAL RESERVE FUND TO PROMOTE INDIVIDUAL 
                   SAVINGS AND FINANCIAL SECURITY.

       The chairman of the Committee on the Budget of the Senate 
     may revise the aggregates, allocations, and other appropriate 
     levels in this resolution for one or more bills, joint 
     resolutions, amendments, motions, or conference reports that 
     promote financial security through financial literacy, 
     retirement planning, and savings incentives, including 
     individual development accounts and child savings accounts, 
     provided that such legislation does not increase the deficit 
     over either the period of the total fiscal years 2009 through 
     2014 or the period of the total fiscal years 2009 through 
     2019.

     SEC. 318. DEFICIT-NEUTRAL RESERVE FUND TO INCREASE FDIC AND 
                   NCUA BORROWING AUTHORITY.

       The chairman of the Committee on the Budget of the Senate 
     may revise the aggregates, allocations, and other appropriate 
     levels in this resolution for one or more bills, joint 
     resolutions, amendments, motions, or conference reports to 
     increase the borrowing authority of the Federal Deposit 
     Insurance Corporation and the National Credit Union 
     Administration, provided that such legislation does not 
     increase the deficit over either the period of the total 
     fiscal years 2009 through 2014 or the period of the total 
     fiscal years 2009 through 2019.

     SEC. 319. DEFICIT-NEUTRAL RESERVE FUND FOR IMPROVING THE 
                   WELL-BEING OF CHILDREN.

       The chairman of the Senate Committee on the Budget may 
     revise the allocations of a committee or committees, 
     aggregates, and other appropriate levels in this resolution 
     for one or more bills, joint resolutions, amendments, 
     motions, or conference reports that--
       (1) make improvements to child welfare programs, including 
     strengthening the recruitment and retention of foster 
     families, or make improvements to the child support 
     enforcement program;
       (2) improve the Federal foster care payment system to 
     better support children, improve family support, family 
     preservation, family reunification services, address the 
     needs of children prior to removal, during removal, and post 
     placement or address the needs of children who have been 
     abused or neglected; or
       (3) provide funds to states for a program of home visits to 
     low-income mothers-to-be and low-income families that will 
     produce sizeable, sustained improvements in the health, well-
     being, or school readiness of children or their parents;

     by the amounts provided in such legislation for those 
     purposes, provided that such legislation would not increase 
     the deficit over either the period of the total of fiscal 
     years 2009 through 2014 or the period of the total of fiscal 
     years 2009 through 2019.

     SEC. 320. DEFICIT-NEUTRAL RESERVE FUND FOR A 9/11 HEALTH 
                   PROGRAM.

       The chairman of the Senate Committee on the Budget may 
     revise the allocations of a committee or committees, 
     aggregates, and other appropriate levels in this resolution 
     for one or more bills, joint resolutions, amendments, 
     motions, or conference reports that would establish a 
     program, including medical monitoring and treatment, 
     addressing the adverse health impacts linked to the September 
     11, 2001 attacks, by the amounts provided in such legislation 
     for those purposes, provided that such legislation would not 
     increase the deficit over either the period of the total of 
     fiscal years 2009 through 2014 or the period of the total of 
     fiscal years 2009 through 2019.

                    Subtitle B--House Reserve Funds

     SEC. 321. DEFICIT-NEUTRAL RESERVE FUND FOR HEALTH CARE 
                   REFORM.

       The chairman of the House Committee on the Budget may 
     revise the allocations, aggregates, and other appropriate 
     levels in this resolution for any bill, joint resolution, 
     amendment, or conference report that makes improvements to 
     health care in America, which may include making affordable 
     health coverage available for all, improving the quality of 
     health care, reducing rising health care costs, building on 
     and strengthening existing public and private insurance 
     coverage, including employer-sponsored coverage, and 
     preserving choice of provider and plan by the amounts 
     provided in such measure if such measure would not increase 
     the deficit or

[[Page 10739]]

     decrease the surplus for either time period provided in 
     clause 10 of rule XXI of the Rules of the House of 
     Representatives.

     SEC. 322. DEFICIT-NEUTRAL RESERVE FUND FOR COLLEGE ACCESS, 
                   AFFORDABILITY, AND COMPLETION.

       The chairman of the House Committee on the Budget may 
     revise the allocations, aggregates, and other appropriate 
     levels in this resolution for any bill, joint resolution, 
     amendment, or conference report that makes college more 
     affordable or accessible or that increases college enrollment 
     and completion through reforms to the Higher Education Act of 
     1965 or other legislation, including increasing the maximum 
     Pell grant award annually by an amount equal to one 
     percentage point more than the Consumer Price Index, or 
     student loan reform, by the amounts provided in such measure 
     if such measure would not increase the deficit or decrease 
     the surplus for either time period provided in clause 10 of 
     rule XXI of the Rules of the House of Representatives, and 
     minimize disruption to schools, students, and the employees 
     of the student loan originating and servicing industry.

     SEC. 323. DEFICIT-NEUTRAL RESERVE FUND FOR INCREASING ENERGY 
                   INDEPENDENCE.

       The chairman of the House Committee on the Budget may 
     revise the allocations, aggregates, and other appropriate 
     levels in this resolution for any bill, joint resolution, 
     amendment, or conference report that--
       (1) provides tax incentives for or otherwise encourages the 
     production of renewable energy or increased energy 
     efficiency;
       (2) encourages investment in emerging energy or vehicle 
     technologies or carbon capture and sequestration;
       (3) limits and provides for reductions in greenhouse gas 
     emissions;
       (4) assists businesses, industries, States, communities, 
     the environment, workers, or households as the United States 
     moves toward reducing and offsetting the impacts of 
     greenhouse gas emissions; or
       (5) facilitates the training of workers for these 
     industries (``green collar jobs'');
     by the amounts provided in such measure if such measure would 
     not increase the deficit or decrease the surplus for either 
     time period provided in clause 10 of rule XXI of the Rules of 
     the House of Representatives.

     SEC. 324. DEFICIT-NEUTRAL RESERVE FUND FOR AMERICA'S VETERANS 
                   AND WOUNDED SERVICEMEMBERS.

       The chairman of the House Committee on the Budget may 
     revise the allocations of a committee or committees, 
     aggregates, and other appropriate levels in this resolution 
     for any bill, joint resolution, amendment, or conference 
     report that would:
       (1) expand the number of disabled military retirees who 
     receive both disability compensation and retired pay 
     (concurrent receipt);
       (2) accelerate the phase-in of concurrent receipt;
       (3) reduce or eliminate the offset between Survivor Benefit 
     Plan annuities and Veterans' Dependency and Indemnity 
     Compensation;
       (4) enhance or maintain the affordability of health care 
     for military personnel, military retirees or veterans;
       (5) improve disability benefits or evaluations for wounded 
     or disabled military personnel or veterans (including 
     measures to expedite the claims process);
       (6) enhance servicemember education benefits for members of 
     the National Guard and Reserve by ensuring those benefits 
     keep pace with the national average cost of tuition; or
       (7) expand veterans' benefits (including for veterans 
     living in rural areas);
     by the amounts provided in such legislation for those 
     purposes, provided that such legislation would not increase 
     the deficit or decrease the surplus for either time period 
     provided in clause 10 of rule XXI of the Rules of the House 
     of Representatives.

     SEC. 325. DEFICIT-NEUTRAL RESERVE FUND FOR CERTAIN TAX 
                   RELIEF.

       The chairman of the House Committee on the Budget may 
     revise the allocations, aggregates, and other appropriate 
     levels in this resolution for any bill, joint resolution, 
     amendment, or conference report that provides for tax relief 
     that supports working families (such as expanding the 
     refundable child credit), businesses, States, or communities, 
     by the amounts provided in such measure if such measure would 
     not increase the deficit or decrease the surplus for either 
     time period provided in clause 10 of rule XXI of the Rules of 
     the House of Representatives.

     SEC. 326. DEFICIT-NEUTRAL RESERVE FUND FOR A 9/11 HEALTH 
                   PROGRAM.

       The chairman of the House Committee on the Budget may 
     revise the allocations, aggregates, and other appropriate 
     levels in this resolution for any bill, joint resolution, 
     amendment, or conference report that would establish a 
     program, including medical monitoring and treatment, 
     addressing the adverse health impacts linked to the September 
     11, 2001, attacks by the amounts provided in such measure if 
     such measure would not increase the deficit or decrease the 
     surplus for either time period provided in clause 10 of rule 
     XXI of the Rules of the House of Representatives.

     SEC. 327. DEFICIT-NEUTRAL RESERVE FUND FOR CHILD NUTRITION.

       The chairman of the House Committee on the Budget may 
     revise the allocations, aggregates, and other appropriate 
     levels in this resolution for any bill, joint resolution, 
     amendment, or conference report that reauthorizes, expands, 
     or improves child nutrition programs by the amounts provided 
     in such measure if such measure would not increase the 
     deficit or decrease the surplus for either time period 
     provided in clause 10 of rule XXI of the Rules of the House 
     of Representatives.

     SEC. 328. DEFICIT-NEUTRAL RESERVE FUND FOR STRUCTURAL 
                   UNEMPLOYMENT INSURANCE REFORMS.

       The chairman of the House Committee on the Budget may 
     revise the allocations, aggregates, and other appropriate 
     levels in this resolution for any bill, joint resolution, 
     amendment, or conference report that makes structural reforms 
     to make the unemployment insurance system respond better to 
     serious economic downturns by the amounts provided in such 
     measure if such measure would not increase the deficit or 
     decrease the surplus for either time period provided in 
     clause 10 of rule XXI of the Rules of the House of 
     Representatives.

     SEC. 329. DEFICIT-NEUTRAL RESERVE FUND FOR CHILD SUPPORT.

       The chairman of the House Committee on the Budget may 
     revise the allocations, aggregates, and other appropriate 
     levels in this resolution for any bill, joint resolution, 
     amendment, or conference report that increases parental 
     support for children, particularly from non-custodial 
     parents, including legislation that results in a greater 
     share of collected child support reaching the child, by the 
     amounts provided in such measure if such measure would not 
     increase the deficit or decrease the surplus for either time 
     period provided in clause 10 of rule XXI of the Rules of the 
     House of Representatives.

     SEC. 330. DEFICIT-NEUTRAL RESERVE FUND FOR THE AFFORDABLE 
                   HOUSING TRUST FUND.

       The chairman of the House Committee on the Budget may 
     revise the allocations, aggregates, and other appropriate 
     levels in this resolution for any bill, joint resolution, 
     amendment, or conference report that capitalizes the existing 
     Affordable Housing Trust Fund by the amounts provided in such 
     measure if such measure would not increase the deficit or 
     decrease the surplus for either time period provided in 
     clause 10 of rule XXI of the Rules of the House of 
     Representatives.

     SEC. 331. DEFICIT-NEUTRAL RESERVE FUND FOR HOME VISITING.

       The chairman of the House Committee on the Budget may 
     revise the allocations, aggregates, and other appropriate 
     levels in this resolution for any bill, joint resolution, 
     amendment, or conference report that provides funds to states 
     for a program of home visits to low-income mothers-to-be and 
     low-income families which will produce sizeable, sustained 
     improvements in the health, well-being, or school readiness 
     of children or their parents, by the amounts provided in such 
     measure if such measure would not increase the deficit or 
     decrease the surplus for either time period provided in 
     clause 10 of rule XXI of the Rules of the House of 
     Representatives.

     SEC. 332. DEFICIT-NEUTRAL RESERVE FUND FOR LOW-INCOME HOME 
                   ENERGY ASSISTANCE PROGRAM TRIGGER.

       The chairman of the House Committee on the Budget may 
     revise the allocations, aggregates, and other appropriate 
     levels in this resolution for any bill, joint resolution, 
     amendment, or conference report that makes the Low-Income 
     Home Energy Assistance Program more responsive to energy 
     price increases by the amounts provided in such measure if 
     such measure would not increase the deficit or decrease the 
     surplus for either time period provided in clause 10 of rule 
     XXI of the Rules of the House of Representatives.

     SEC. 333. DEFICIT-NEUTRAL RESERVE FUND FOR COUNTY PAYMENTS 
                   LEGISLATION.

       The chairman of the House Committee on the Budget may 
     revise the allocations, aggregates, and other appropriate 
     levels in this resolution for any bill, joint resolution, 
     amendment, or conference report that provides for the 
     reauthorization of the Secure Rural Schools and Community 
     Self Determination Act of 2000 (Public Law 106-393) or makes 
     changes to the Payments in Lieu of Taxes Act of 1976 (Public 
     Law 94-565) by the amounts provided in such measure if such 
     measure would not increase the deficit or decrease the 
     surplus for either time period provided in clause 10 of rule 
     XXI of the Rules of the House of Representatives.

     SEC. 334. RESERVE FUND FOR THE SURFACE TRANSPORTATION 
                   REAUTHORIZATION.

       The chairman of the House Committee on the Budget may 
     revise the allocations, aggregates, and other appropriate 
     levels in this resolution for any bill, joint resolution, 
     amendment, or conference report that reauthorizes surface 
     transportation programs or that authorizes other 
     transportation-related spending by providing new contract 
     authority by the amounts provided in such measure if such 
     measure establishes or maintains a solvent Highway Trust Fund 
     over the period of fiscal years 2009 through 2015. 
     ``Solvency'' is defined as a positive cash balance. Such 
     measure may include a transfer into the Highway Trust Fund 
     from other Federal funds, as long as the transfer of Federal 
     funds is fully offset.

                        TITLE IV--BUDGET PROCESS

                     Subtitle A--Senate Provisions

                       PART I--BUDGET ENFORCEMENT

     SEC. 401. DISCRETIONARY SPENDING LIMITS, PROGRAM INTEGRITY 
                   INITIATIVES, AND OTHER ADJUSTMENTS.

       (a) Senate Point of Order.--
       (1) In general.--Except as otherwise provided in this 
     section, it shall not be in order in the

[[Page 10740]]

     Senate to consider any bill or joint resolution (or 
     amendment, motion, or conference report on that bill or joint 
     resolution) that would cause the discretionary spending 
     limits in this section to be exceeded.
       (2) Supermajority waiver and appeals.--
       (A) Waiver.--This subsection may be waived or suspended in 
     the Senate only by the affirmative vote of three-fifths of 
     the Members, duly chosen and sworn.
       (B) Appeals.--Appeals in the Senate from the decisions of 
     the Chair relating to any provision of this subsection shall 
     be limited to 1 hour, to be equally divided between, and 
     controlled by, the appellant and the manager of the bill or 
     joint resolution. An affirmative vote of three-fifths of the 
     Members of the Senate, duly chosen and sworn, shall be 
     required to sustain an appeal of the ruling of the Chair on a 
     point of order raised under this subsection.
       (b) Senate Discretionary Spending Limits.--In the Senate 
     and as used in this section, the term ``discretionary 
     spending limit'' means--
       (1) for fiscal year 2009, $1,391,471,000,000 in new budget 
     authority and $1,220,843,000,000 in outlays; and
       (2) for fiscal year 2010, $1,082,250,000,000 in new budget 
     authority and $1,269,471,000,000 in outlays;
     as adjusted in conformance with the adjustment procedures in 
     subsection (c).
       (c) Adjustments in the Senate.--
       (1) In general.--After the reporting of a bill or joint 
     resolution relating to any matter described in paragraph (2), 
     or the offering of an amendment thereto or the submission of 
     a conference report thereon--
       (A) the chairman of the Senate Committee on the Budget may 
     adjust the discretionary spending limits, budgetary 
     aggregates, and allocations pursuant to section 302(a) of the 
     Congressional Budget Act of 1974, by the amount of new budget 
     authority in that measure for that purpose and the outlays 
     flowing therefrom; and
       (B) following any adjustment under subparagraph (A), the 
     Senate Committee on Appropriations may report appropriately 
     revised suballocations pursuant to section 302(b) of the 
     Congressional Budget Act of 1974 to carry out this 
     subsection.
       (2) Matters described.--Matters referred to in paragraph 
     (1) are as follows:
       (A) Continuing disability reviews and ssi 
     redeterminations.--
       (i) In general.--If a bill or joint resolution is reported 
     making appropriations for fiscal year 2010 that appropriates 
     $273,000,000 for continuing disability reviews and 
     Supplemental Security Income redeterminations for the Social 
     Security Administration, and provides an additional 
     appropriation of up to $485,000,000 for continuing disability 
     reviews and Supplemental Security Income redeterminations for 
     the Social Security Administration, then the discretionary 
     spending limits, allocation to the Senate Committee on 
     Appropriations, and aggregates may be adjusted by the amounts 
     provided in such legislation for that purpose, but not to 
     exceed $485,000,000 in budget authority and outlays flowing 
     therefrom for fiscal year 2010.
       (ii) Asset verification.--The additional appropriation of 
     $485,000,000 may also provide that a portion of that amount, 
     not to exceed $34,000,000, instead may be used for asset 
     verification for Supplemental Security Income recipients, but 
     only if and to the extent that the Office of the Chief 
     Actuary estimates that the initiative would be at least as 
     cost effective as the redeterminations of eligibility 
     described in subparagraph (i).
       (B) Internal revenue service tax enforcement.--If a bill or 
     joint resolution is reported making appropriations for fiscal 
     year 2010 that appropriates $7,100,000,000 for the Internal 
     Revenue Service for enhanced tax enforcement to address the 
     Federal tax gap (taxes owed but not paid) and provides an 
     additional appropriation of up to $890,000,000 for the 
     Internal Revenue Service for enhanced tax enforcement to 
     address the Federal tax gap, then the discretionary spending 
     limits, allocation to the Senate Committee on Appropriations, 
     and aggregates may be adjusted by the amounts provided in 
     such legislation for that purpose, but not to exceed 
     $890,000,000 in budget authority and outlays flowing 
     therefrom for fiscal year 2010.
       (C) Health care fraud and abuse control.--If a bill or 
     joint resolution is reported making appropriations for fiscal 
     year 2010 that appropriates up to $311,000,000 to the Health 
     Care Fraud and Abuse Control program at the Department of 
     Health and Human Services, then the discretionary spending 
     limits, allocation to the Senate Committee on Appropriations, 
     and aggregates may be adjusted by the amounts provided in 
     such legislation for that purpose, but not to exceed 
     $311,000,000 in budget authority and outlays flowing 
     therefrom for fiscal year 2010.
       (D) Unemployment insurance improper payment reviews.--If a 
     bill or joint resolution is reported making appropriations 
     for fiscal year 2010 that appropriates $10,000,000 for in-
     person reemployment and eligibility assessments and 
     unemployment insurance improper payment reviews, and provides 
     an additional appropriation of up to $50,000,000 for in-
     person reemployment and eligibility assessments and 
     unemployment insurance improper payment reviews, then the 
     discretionary spending limits, allocation to the Senate 
     Committee on Appropriations, and aggregates may be adjusted 
     by the amounts provided in such legislation for that purpose, 
     but not to exceed $50,000,000 in budget authority and outlays 
     flowing therefrom for fiscal year 2010.
       (3) Low-income home energy assistance program (liheap).--If 
     a bill or joint resolution is reported making appropriations 
     for fiscal year 2010 that appropriates $3,200,000,000 in 
     funding for the Low-Income Home Energy Assistance Program and 
     provides an additional appropriation of up to $1,900,000,000 
     for that program, then the discretionary spending limits, 
     allocation to the Senate Committee on Appropriations, and 
     aggregates may be adjusted by the amounts provided in such 
     legislation for that purpose, but not to exceed 
     $1,900,000,000 in budget authority and outlays flowing 
     therefrom for fiscal year 2010.
       (4) Adjustments to support ongoing overseas deployments and 
     other activities.--The chairman of the Senate Committee on 
     the Budget may adjust the discretionary spending limits, 
     allocations to the Senate Committee on Appropriations, and 
     aggregates for one or more--
       (A) bills reported by the Senate Committee on 
     Appropriations or passed by the House of Representatives;
       (B) joint resolutions or amendments reported by the Senate 
     Committee on Appropriations;
       (C) amendments between the Houses received from the House 
     of Representatives or Senate amendments offered by the 
     authority of the Senate Committee on Appropriations; or
       (D) conference reports;
     making appropriations for fiscal years 2009 and 2010 for 
     overseas deployments and other activities by the amounts 
     provided in such legislation for those purposes (and so 
     designated pursuant to this paragraph), up to the amounts of 
     budget authority specified in section 104(21) for fiscal 
     years 2009 and 2010 and the new outlays flowing therefrom.
       (5) Revised appropriations for fiscal year 2010.--
       (A) In general.--If after adoption of this resolution by 
     the Congress, the President submits his budget pursuant to 
     section 1105(a) of title 31, United States Code, and the 
     Congressional Budget Office (CBO) re-estimates the budget, 
     the chairman of the Senate Committee on the Budget may adjust 
     the discretionary spending limits, budgetary aggregates, and 
     allocations pursuant to section 302(a) of the Congressional 
     Budget Act of 1974 by the aggregate difference for 
     discretionary appropriations and related outlays between the 
     CBO re-estimate and the President's Budget.
       (B) Suballocations.--Following any adjustment under 
     subparagraph (A), the Senate Committee on Appropriations may 
     report appropriately revised suballocations pursuant to 
     section 302(b) of the Congressional Budget Act of 1974 to 
     carry out this paragraph.
       (d) Inapplicability.--In the Senate, subsections (a), (b), 
     (c), and (d) of section 312 of S. Con. Res. 70 (110th 
     Congress) shall no longer apply.

     SEC. 402. POINT OF ORDER AGAINST ADVANCE APPROPRIATIONS.

       (a) In General.--
       (1) Point of order.--Except as provided in subsection (b), 
     it shall not be in order in the Senate to consider any bill, 
     joint resolution, motion, amendment, or conference report 
     that would provide an advance appropriation.
       (2) Definition.--In this section, the term ``advance 
     appropriation'' means any new budget authority provided in a 
     bill or joint resolution making appropriations for fiscal 
     year 2010 that first becomes available for any fiscal year 
     after 2010, or any new budget authority provided in a bill or 
     joint resolution making general appropriations or continuing 
     appropriations for fiscal year 2011, that first becomes 
     available for any fiscal year after 2011.
       (b) Exceptions.--Advance appropriations may be provided--
       (1) for fiscal years 2011 and 2012 for programs, projects, 
     activities, or accounts identified in the joint explanatory 
     statement of managers accompanying this resolution under the 
     heading ``Accounts Identified for Advance Appropriations'' in 
     an aggregate amount not to exceed $28,852,000,000 in new 
     budget authority in each year;
       (2) for the Corporation for Public Broadcasting; and
       (3) for the Department of Veterans Affairs for the Medical 
     Services, Medical Support and Compliance, and Medical 
     Facilities accounts of the Veterans Health Administration.
       (c) Supermajority Waiver and Appeal.--
       (1) Waiver.--In the Senate, subsection (a) may be waived or 
     suspended only by an affirmative vote of three-fifths of the 
     Members, duly chosen and sworn.
       (2) Appeal.--An affirmative vote of three-fifths of the 
     Members of the Senate, duly chosen and sworn, shall be 
     required to sustain an appeal of the ruling of the Chair on a 
     point of order raised under subsection (a).
       (d) Form of Point of Order.--A point of order under 
     subsection (a) may be raised by a Senator as provided in 
     section 313(e) of the Congressional Budget Act of 1974.
       (e) Conference Reports.--When the Senate is considering a 
     conference report on, or an amendment between the Houses in 
     relation to, a bill, upon a point of order being made by any 
     Senator pursuant to this section, and such point of order 
     being sustained, such material contained in such conference 
     report shall be deemed stricken, and the Senate shall proceed 
     to consider the question of whether the Senate shall recede 
     from its amendment and concur with a further amendment, or 
     concur in the House amendment with a further amendment, as 
     the case may be, which further amendment shall consist of 
     only that portion of the conference report or House 
     amendment, as the case may be, not so stricken. Any such 
     motion in the Senate

[[Page 10741]]

     shall be debatable. In any case in which such point of order 
     is sustained against a conference report (or Senate amendment 
     derived from such conference report by operation of this 
     subsection), no further amendment shall be in order.
       (f) Inapplicability.--In the Senate, section 313 of S. Con. 
     Res. 70 (110th Congress) shall no longer apply.

     SEC. 403. EMERGENCY LEGISLATION.

       (a) Authority To Designate.--In the Senate, with respect to 
     a provision of direct spending or receipts legislation or 
     appropriations for discretionary accounts that Congress 
     designates as an emergency requirement in such measure, the 
     amounts of new budget authority, outlays, and receipts in all 
     fiscal years resulting from that provision shall be treated 
     as an emergency requirement for the purpose of this section.
       (b) Exemption of Emergency Provisions.--Any new budget 
     authority, outlays, and receipts resulting from any provision 
     designated as an emergency requirement, pursuant to this 
     section, in any bill, joint resolution, amendment, or 
     conference report shall not count for purposes of sections 
     302 and 311 of the Congressional Budget Act of 1974, section 
     201 of S. Con. Res. 21 (110th Congress) (relating to pay-as-
     you-go), section 311 of S. Con. Res. 70 (110th Congress) 
     (relating to long-term deficits), and sections 401 and 404 of 
     this resolution (relating to discretionary spending and 
     short-term deficits). Designated emergency provisions shall 
     not count for the purpose of revising allocations, 
     aggregates, or other levels pursuant to procedures 
     established under section 301(b)(7) of the Congressional 
     Budget Act of 1974 for deficit-neutral reserve funds and 
     revising discretionary spending limits set pursuant to 
     section 301 of this resolution.
       (c) Designations.--If a provision of legislation is 
     designated as an emergency requirement under this section, 
     the committee report and any statement of managers 
     accompanying that legislation shall include an explanation of 
     the manner in which the provision meets the criteria in 
     subsection (f).
       (d) Definitions.--In this section, the terms ``direct 
     spending'', ``receipts'', and ``appropriations for 
     discretionary accounts'' mean any provision of a bill, joint 
     resolution, amendment, motion, or conference report that 
     affects direct spending, receipts, or appropriations as those 
     terms have been defined and interpreted for purposes of the 
     Balanced Budget and Emergency Deficit Control Act of 1985.
       (e) Point of Order.--
       (1) In general.--When the Senate is considering a bill, 
     resolution, amendment, motion, or conference report, if a 
     point of order is made by a Senator against an emergency 
     designation in that measure, that provision making such a 
     designation shall be stricken from the measure and may not be 
     offered as an amendment from the floor.
       (2) Supermajority waiver and appeals.--
       (A) Waiver.--Paragraph (1) may be waived or suspended in 
     the Senate only by an affirmative vote of three-fifths of the 
     Members, duly chosen and sworn.
       (B) Appeals.--Appeals in the Senate from the decisions of 
     the Chair relating to any provision of this subsection shall 
     be limited to 1 hour, to be equally divided between, and 
     controlled by, the appellant and the manager of the bill or 
     joint resolution, as the case may be. An affirmative vote of 
     three-fifths of the Members of the Senate, duly chosen and 
     sworn, shall be required to sustain an appeal of the ruling 
     of the Chair on a point of order raised under this 
     subsection.
       (3) Definition of an emergency designation.--For purposes 
     of paragraph (1), a provision shall be considered an 
     emergency designation if it designates any item as an 
     emergency requirement pursuant to this subsection.
       (4) Form of the point of order.--A point of order under 
     paragraph (1) may be raised by a Senator as provided in 
     section 313(e) of the Congressional Budget Act of 1974.
       (5) Conference reports.--When the Senate is considering a 
     conference report on, or an amendment between the Houses in 
     relation to, a bill, upon a point of order being made by any 
     Senator pursuant to this section, and such point of order 
     being sustained, such material contained in such conference 
     report shall be deemed stricken, and the Senate shall proceed 
     to consider the question of whether the Senate shall recede 
     from its amendment and concur with a further amendment, or 
     concur in the House amendment with a further amendment, as 
     the case may be, which further amendment shall consist of 
     only that portion of the conference report or House 
     amendment, as the case may be, not so stricken. Any such 
     motion in the Senate shall be debatable. In any case in which 
     such point of order is sustained against a conference report 
     (or Senate amendment derived from such conference report by 
     operation of this subsection), no further amendment shall be 
     in order.
       (f) Criteria.--
       (1) In general.--For purposes of this section, any 
     provision is an emergency requirement if the situation 
     addressed by such provision is--
       (A) necessary, essential, or vital (not merely useful or 
     beneficial);
       (B) sudden, quickly coming into being, and not building up 
     over time;
       (C) an urgent, pressing, and compelling need requiring 
     immediate action;
       (D) subject to paragraph (2), unforeseen, unpredictable, 
     and unanticipated; and
       (E) not permanent, temporary in nature.
       (2) Unforeseen.--An emergency that is part of an aggregate 
     level of anticipated emergencies, particularly when normally 
     estimated in advance, is not unforeseen.
       (g) Inapplicability.--In the Senate, section 204(a) of S. 
     Con. Res. 21 (110th Congress), the concurrent resolution on 
     the budget for fiscal year 2008, shall no longer apply.

     SEC. 404. POINT OF ORDER AGAINST LEGISLATION INCREASING 
                   SHORT-TERM DEFICIT.

       (a) Point of Order.--It shall not be in order in the Senate 
     to consider any bill, joint resolution, amendment, motion, or 
     conference report (except measures within the jurisdiction of 
     the Committee on Appropriations) that would cause a net 
     increase in the deficit in excess of $10,000,000,000 in any 
     fiscal year provided for in the most recently adopted 
     concurrent resolution on the budget unless it is fully offset 
     over the period of all fiscal years provided for in the most 
     recently adopted concurrent resolution on the budget.
       (b) Supermajority Waiver and Appeal in the Senate.--
       (1) Waiver.--This section may be waived or suspended only 
     by the affirmative vote of three-fifths of the Members, duly 
     chosen and sworn.
       (2) Appeal.--An affirmative vote of three-fifths of the 
     Members, duly chosen and sworn, shall be required to sustain 
     an appeal of the ruling of the Chair on a point of order 
     raised under this section.
       (c) Limitation.--The provisions of this section shall not 
     apply to any bills, joint resolutions, amendments, motions, 
     or conference reports for which the chairman of the Senate 
     Committee on the Budget has made adjustments to the 
     allocations, levels or limits contained in this resolution 
     pursuant to Section 301(a) of this resolution.
       (d) Determinations of Budget Levels.--For purposes of this 
     section, the levels shall be determined on the basis of 
     estimates provided by the Senate Committee on the Budget.
       (e) Sunset.--This section shall expire on September 30, 
     2018.
       (f) Inapplicability.--In the Senate, section 315 of S. Con. 
     Res. 70 (110th Congress), the concurrent resolution in the 
     budget for fiscal year 2009, shall no longer apply.

     SEC. 405. POINT OF ORDER AGAINST CERTAIN LEGISLATION RELATED 
                   TO SURFACE TRANSPORTATION FUNDING.

       (a) Point of Order.--It shall not be in order in the Senate 
     to consider any bill, joint resolution, amendment, motion, or 
     conference report that extends the authority or reauthorizes 
     surface transportation programs that appropriates budget 
     authority from sources other than the Highway Trust Fund, 
     including the Mass Transit Account of such fund.
       (b) Supermajority Waiver and Appeals in the Senate.--
       (1) Waiver.--This section may be waived or suspended only 
     by an affirmative vote of three-fifths of the Members, duly 
     chosen and sworn.
       (2) Appeals.--An affirmative vote of three-fifths of the 
     Members of the Senate, duly chosen and sworn, shall be 
     required to sustain an appeal of the ruling of the Chair on a 
     point of order raised under this section.
       (c) Sunset.--This section shall expire on September 30, 
     2018.

                       PART II--OTHER PROVISIONS

     SEC. 411. OVERSIGHT OF GOVERNMENT PERFORMANCE.

       In the Senate, all committees are directed to review 
     programs within their jurisdiction to root out waste, fraud, 
     and abuse in program spending, giving particular scrutiny to 
     issues raised by Government Accountability Office reports. 
     Based on these oversight efforts and committee performance 
     reviews of programs within their jurisdiction, committees are 
     directed to include recommendations for improved governmental 
     performance in their annual views and estimates reports 
     required under section 301(d) of the Congressional Budget Act 
     of 1974 to the Senate Committee on the Budget.

     SEC. 412. BUDGETARY TREATMENT OF CERTAIN DISCRETIONARY 
                   ADMINISTRATIVE EXPENSES.

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

     SEC. 413. APPLICATION AND EFFECT OF CHANGES IN ALLOCATIONS 
                   AND AGGREGATES.

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

[[Page 10742]]

       (d) Adjustments.--The chairman of the Senate Committee on 
     the Budget may adjust the aggregates, allocations, and other 
     levels and limits in this resolution for legislation which 
     has received final Congressional approval in the same form by 
     the House of Representatives and the Senate, but has yet to 
     be presented to or signed by the President at the time of 
     final consideration of this resolution.

     SEC. 414. ADJUSTMENTS TO REFLECT CHANGES IN CONCEPTS AND 
                   DEFINITIONS.

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

     SEC. 415. EXERCISE OF RULEMAKING POWERS.

       The Senate adopts the provisions of this subtitle--
       (1) as an exercise of the rulemaking power of the Senate, 
     and as such they shall be considered as part of the rules of 
     the Senate and such rules shall supersede other rules only to 
     the extent that they are inconsistent with such other rules; 
     and
       (2) with full recognition of the constitutional right of 
     the Senate to change those rules at any time, in the same 
     manner, and to the same extent as is the case of any other 
     rule of the Senate.

                Subtitle B--House Enforcement Provisions

     SEC. 421. ADJUSTMENTS FOR DIRECT SPENDING AND REVENUES.

       (a) Adjustments for Current Policy.--
       (1) In general.--For the policies set forth in and not to 
     exceed the amounts in paragraph (2), and subject to the 
     condition specified in paragraph (3), when the chairman of 
     the House Committee on the Budget evaluates the budgetary 
     effects of any provision in a bill, joint resolution, 
     amendment, or conference report for the purposes of the 
     Congressional Budget Act of 1974, this concurrent resolution, 
     or the Rules of the House of Representatives relative to 
     baseline estimates consistent with section 257 of the 
     Balanced Budget and Emergency Deficit Control Act of 1985, he 
     may exclude from his evaluation the budgetary effects of such 
     provisions if such effects would have been reflected in a 
     baseline adjusted for current policy.
       (2) Policies and amounts.--Paragraph (1) shall apply only 
     to the following provisions:
       (A) Medicare improvements.--An increase in the deficit of 
     not to exceed $38,000,000,000 in fiscal years 2010 through 
     2014 and of not to exceed $38,000,000,000 in fiscal years 
     2010 through 2019 by reforming the Medicare payment system 
     for physicians to--
       (i) change incentives to encourage efficiency and higher 
     quality care in a way that supports fiscal sustainability;
       (ii) improve payment accuracy to encourage efficient use of 
     resources and ensure that primary care receives appropriate 
     compensation;
       (iii) improve coordination of care among all providers 
     serving a patient in all appropriate settings; or
       (iv) hold providers accountable for their utilization 
     patterns and quality of care.
       (B) Middle class tax relief.--A decrease in revenues (or 
     increase in outlays, as appropriate) of an amount not to 
     exceed $512,165,000,000 in fiscal years 2010 through 2014 and 
     of an amount not to exceed $1,294,476,000,000 in fiscal years 
     2010 through 2019, resulting from extending certain 
     provisions of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 and the Jobs and Growth Tax Relief 
     Reconciliation Act of 2003 for middle class tax relief, 
     including--
       (i) the 10 percent individual income tax bracket;
       (ii) marriage penalty relief;
       (iii) the child credit at $1,000 and partial refundability 
     of the credit;
       (iv) education incentives;
       (v) other incentives for middle class families and 
     children;
       (vi) other reductions to individual income tax brackets; 
     and
       (vii) small business tax relief.
       (C) Reform of the alternative minimum tax.--A decrease in 
     revenues of an amount not to exceed $214,433,000,000 in 
     fiscal years 2010 through 2014 and fiscal years 2010 through 
     2019 resulting from reform of the AMT so that tens of 
     millions of working families will not become subject to it.
       (D) Reform of the estate and gift tax.--A decrease in 
     revenues of an amount not to exceed $72,033,000,000 in fiscal 
     years 2010 through 2014 and of an amount not to exceed 
     $256,244,000,000 in fiscal years 2010 through 2019 resulting 
     from reform of the Estate and Gift Tax so that only a minute 
     fraction of estates owe tax, by extending the law as in 
     effect for 2009 for the Estate and Gift Tax.
       (3) Condition.--Subsection (a) shall apply only if the 
     House of Representatives has previously passed a bill to 
     impose statutory pay-as-you-go requirements or the measure 
     containing the provision being evaluated by the chairman of 
     the House Committee on the Budget imposes such requirements 
     and such bill is designated as providing statutory pay-as-
     you-go-requirements under this subsection.
       (4) Revisions.--The chairman of the House Committee on the 
     Budget may revise or adjust the allocations, aggregates, and 
     other appropriate levels in this resolution to reflect 
     current policy adjustments made pursuant to this section.
       (b) Deposit Insurance.--When the chairman of the House 
     Committee on the Budget evaluates the budgetary effects of a 
     provision of a bill, joint resolution, amendment, or 
     conference report for the purposes of the Congressional 
     Budget Act of 1974, this resolution, or the Rules of the 
     House of Representatives, the chairman shall exclude the 
     budgetary effects of any provision that affects the full 
     funding of the deposit insurance guarantee commitment in 
     effect on the date of enactment of Public Law 110-343, the 
     Emergency Economic Stabilization Act of 2008.

     SEC. 422. ADJUSTMENTS TO DISCRETIONARY SPENDING LIMITS.

       (a) Program Integrity Initiatives.--
       (1) Social security administration program integrity 
     initiatives.--
       (A) In general.--In the House, prior to consideration of 
     any bill, joint resolution, amendment, or conference report 
     making appropriations for fiscal year 2010 that appropriates 
     $273,000,000 for continuing disability reviews and 
     Supplemental Security Income redeterminations for the Social 
     Security Administration and (except as provided in 
     subparagraph (B)) provides an additional appropriation of up 
     to $485,000,000, and that amount is designated for continuing 
     disability reviews and Supplemental Security Income 
     redeterminations for the Social Security Administration, the 
     allocation to the House Committee on Appropriations shall be 
     increased by the amount of the additional budget authority 
     and outlays resulting from that budget authority for fiscal 
     year 2010.
       (B) Asset verification.--The additional appropriation of 
     $485,000,000 may also provide that a portion of that amount, 
     not to exceed $34,000,000, instead may be used for asset 
     verification for Supplemental Security Income recipients, but 
     only if and to the extent that the Office of the Chief 
     Actuary estimates that the initiative would be at least as 
     cost effective as the redeterminations of eligibility 
     described in subparagraph (A).
       (2) Internal revenue service tax compliance.--In the House, 
     prior to consideration of any bill, joint resolution, 
     amendment, or conference report making appropriations for 
     fiscal year 2010 that appropriates $4,904,000,000 to the 
     Internal Revenue Service for Enforcement and provides an 
     additional appropriation of up to $600,000,000 for 
     Enforcement to address the Federal tax gap, and provides that 
     such sums as may be necessary shall be available from the 
     Operations Support account in the Internal Revenue Service to 
     fully support these Enforcement activities, the allocation to 
     the House Committee on Appropriations shall be increased by 
     the amount of the additional budget authority and outlays 
     resulting from that budget authority for fiscal year 2010.
       (3) Health care fraud and abuse control program.--In the 
     House, prior to consideration of any bill, joint resolution, 
     amendment, or conference report making appropriations for 
     fiscal year 2010 that appropriates up to $311,000,000, and 
     the amount is designated to the health care fraud and abuse 
     control program at the Department of Health and Human 
     Services, the allocation to the House Committee on 
     Appropriations shall be increased by the amount of additional 
     budget authority and outlays resulting from that budget 
     authority for fiscal year 2010.
       (4) Unemployment insurance program integrity activities.--
     In the House, prior to consideration of any bill, joint 
     resolution, amendment, or conference report making 
     appropriations for fiscal year 2010 that appropriates 
     $10,000,000 for in-person reemployment and eligibility 
     assessments and unemployment insurance improper payment 
     reviews for the Department of Labor and provides an 
     additional appropriation of up to $50,000,000, and the amount 
     is designated for in-person reemployment and eligibility 
     assessments and unemployment insurance improper payment 
     reviews for the Department of Labor, the allocation to the 
     House Committee on Appropriations shall be increased by the 
     amount of additional budget authority and outlays resulting 
     from that budget authority for fiscal year 2010.
       (5) Procedure for adjustments.--Prior to consideration of 
     any bill, joint resolution, amendment, or conference report, 
     the chairman of the House Committee on the Budget shall make 
     the adjustments set forth in this subsection for the 
     incremental new budget authority in that measure and the 
     outlays resulting from that budget authority if that measure 
     meets the requirements set forth in this subsection.
       (b) Low-Income Home Energy Assistance Program (LIHEAP).--In 
     the House, prior to consideration of any bill, joint 
     resolution, amendment, or conference report making 
     appropriations for fiscal year 2010 that appropriates 
     $3,200,000,000 in funding for the Low-Income Home Energy 
     Assistance Program and provides additional appropriations of 
     up to $1,900,000,000 for that program, if a mandatory trigger 
     for LIHEAP is not enacted, the chairman of the House 
     Committee on the Budget may allocate such additional budget 
     authority and outlays resulting from that budget authority to 
     the House Committee on Appropriations.
       (c) Revised Appropriations for Fiscal Year 2010.--
       (1) In general.--If after adoption of this resolution by 
     the Congress, the President submits his budget pursuant to 
     section 1105(a) of title 31, United States Code, and the 
     Congressional Budget Office (CBO) re-estimates the budget, 
     the chairman of the House Committee on the Budget may adjust 
     the discretionary spending limits, budgetary aggregates, and 
     the allocation to the House Committee on Appropriations by 
     the aggregate difference for discretionary appropriations and 
     related outlays between the CBO re-estimate and the 
     President's Budget.

[[Page 10743]]

       (2) Suballocations.--Following any adjustment under 
     subparagraph (A), the House Committee on Appropriations may 
     report appropriately revised suballocations pursuant to 
     section 302(b) of the Congressional Budget Act of 1974 to 
     carry out this paragraph.

     SEC. 423. COSTS OF OVERSEAS DEPLOYMENTS AND EMERGENCY NEEDS.

       (a) Overseas Deployments and Other Activities.--
       (1) In the House, if any bill, joint resolution, amendment, 
     or conference report makes appropriations for fiscal year 
     2009 or fiscal year 2010 for overseas deployments and other 
     activities and such amounts are so designated pursuant to 
     this paragraph, then the allocation to the House Committee on 
     Appropriations may be adjusted by the amounts provided in 
     such legislation for that purpose up to the amounts of budget 
     authority specified in section 104(21) for fiscal year 2009 
     or fiscal year 2010 and the new outlays resulting therefrom.
       (2) In the House, if any bill, joint resolution, amendment, 
     or conference report makes appropriations for fiscal year 
     2009 or fiscal year 2010 for overseas deployments and other 
     activities above the amounts of budget authority and new 
     outlays specified in paragraph (1) and such amounts are so 
     designated pursuant to this paragraph, then new budget 
     authority, outlays, or receipts resulting therefrom shall not 
     count for the purposes of the Congressional Budget Act of 
     1974 or this resolution.
       (b) Emergency Needs.--If any bill, joint resolution, 
     amendment, or conference report makes appropriations for 
     discretionary amounts and such amounts are designated as 
     necessary to meet emergency needs pursuant to this 
     subsection, then new budget authority and outlays resulting 
     therefrom shall not count for the purposes of the 
     Congressional Budget Act of 1974 or this resolution.

     SEC. 424. POINT OF ORDER AGAINST ADVANCE APPROPRIATIONS.

       (a) In General.--In the House, except as provided in 
     subsection (b), any bill, joint resolution, amendment, or 
     conference report making a general appropriation or 
     continuing appropriation may not provide for advance 
     appropriations.
       (b) Exceptions.--Advance appropriations may be provided--
       (1) for fiscal year 2011 for programs, projects, 
     activities, or accounts identified in the joint explanatory 
     statement of managers to accompany this resolution under the 
     heading ``Accounts Identified for Advance Appropriations'' in 
     an aggregate amount not to exceed $28,852,000,000 in new 
     budget authority, and for 2012, accounts separately 
     identified under the same heading; and
       (2) for the Department of Veterans Affairs for the Medical 
     Services, Medical Support and Compliance, and Medical 
     Facilities accounts of the Veterans Health Administration.
       (c) Definition.--In this section, the term ``advance 
     appropriation'' means any new discretionary budget authority 
     provided in a bill or joint resolution making general 
     appropriations or any new discretionary budget authority 
     provided in a bill or joint resolution making continuing 
     appropriations for fiscal year 2010 that first becomes 
     available for any fiscal year after 2010.

     SEC. 425. OVERSIGHT OF GOVERNMENT PERFORMANCE.

       In the House, all committees are directed to conduct 
     rigorous oversight hearings to root out waste, fraud, and 
     abuse in all aspects of Federal spending and Government 
     operations, giving particular scrutiny to issues raised by 
     the Federal Office of the Inspector General or the 
     Comptroller General of the United States. Based upon these 
     oversight efforts, the committees are directed to make 
     recommendations to reduce wasteful Federal spending to 
     promote deficit reduction and long-term fiscal 
     responsibility. Such recommendations should be submitted to 
     the House Committee on the Budget in the views and estimates 
     reports prepared by committees as required under 301(d) of 
     the Congressional Budget Act of 1974.

     SEC. 426. BUDGETARY TREATMENT OF CERTAIN DISCRETIONARY 
                   ADMINISTRATIVE EXPENSES.

       (a) In General.--In the House, notwithstanding section 
     302(a)(1) of the Congressional Budget Act of 1974, section 
     13301 of the Budget Enforcement Act of 1990, and section 4001 
     of the Omnibus Budget Reconciliation Act of 1989, the joint 
     explanatory statement accompanying the conference report on 
     any concurrent resolution on the budget shall include in its 
     allocation under section 302(a) of the Congressional Budget 
     Act of 1974 to the House Committee on Appropriations amounts 
     for the discretionary administrative expenses of the Social 
     Security Administration and of the Postal Service.
       (b) Special Rule.--For purposes of applying section 302(f) 
     of the Congressional Budget Act of 1974, estimates of the 
     level of total new budget authority and total outlays 
     provided by a measure shall include any off-budget 
     discretionary amounts.

     SEC. 427. APPLICATION AND EFFECT OF CHANGES IN ALLOCATIONS 
                   AND AGGREGATES.

       (a) Application.--In the House, any adjustments of 
     allocations and aggregates made pursuant to this resolution 
     shall--
       (1) apply while that measure is under consideration;
       (2) take effect upon the enactment of that measure; and
       (3) be published in the Congressional Record as soon as 
     practicable.
       (b) Effect of Changed Allocations and Aggregates.--Revised 
     allocations and aggregates resulting from these adjustments 
     shall be considered for the purposes of the Congressional 
     Budget Act of 1974 as allocations and aggregates included in 
     this resolution.
       (c) Budget Committee Determinations.--For purposes of this 
     resolution, the levels of new budget authority, outlays, 
     direct spending, new entitlement authority, revenues, 
     deficits, and surpluses for a fiscal year or period of fiscal 
     years shall be determined on the basis of estimates made by 
     the House Committee on the Budget.
       (d) Adjustments.--The chairman of the House Committee on 
     the Budget may adjust the aggregates, allocations, and other 
     levels in this resolution for legislation which has received 
     final Congressional approval in the same form by the House of 
     Representatives and the Senate, but has yet to be presented 
     to or signed by the President at the time of final 
     consideration of this resolution.

     SEC. 428. ADJUSTMENTS TO REFLECT CHANGES IN CONCEPTS AND 
                   DEFINITIONS.

       Upon the enactment of any bill or joint resolution 
     providing for a change in budgetary concepts or definitions, 
     the chairman of the House Committee on the Budget shall 
     adjust any appropriate levels and allocations in this 
     resolution accordingly.

     SEC. 429. EXERCISE OF RULEMAKING POWERS.

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

                            TITLE V--POLICY

     SEC. 501. POLICY ON MIDDLE-CLASS TAX RELIEF AND REVENUES.

       It is the policy of this resolution to minimize fiscal 
     burdens on working families and their children and 
     grandchildren. It is the policy of this resolution to extend 
     the following tax relief consistent with current policy--
       (1) relief for the tens of millions of middle-income 
     households who would otherwise be subject to the Alternative 
     Minimum Tax (AMT) under current law;
       (2) middle-class tax relief; and
       (3) elimination of estate taxes on all but a minute 
     fraction of estates.
     In total, this resolution supports the extension of over 
     $1,750,000,000,000 in tax relief to individuals and families 
     relative to current law. This resolution supports additional, 
     deficit-neutral tax relief, including the extension of AMT 
     relief, expanding the eligibility for the refundable child 
     credit, the research and experimentation tax credit, the 
     deduction for State and local sales taxes, the enactment of a 
     tax credit for school construction bonds, and other tax 
     relief for working families. The cost of enacting such 
     policies may be offset by reforms within the Internal Revenue 
     Code of 1986 that produce higher rates of tax compliance to 
     close the ``tax gap'' and reduce taxpayer burdens through tax 
     simplification. The President's budget proposes a variety of 
     other revenue offsets. Unless expressly provided, this 
     resolution does not assume any of the specific revenue offset 
     proposals provided for in the President's budget. Decisions 
     about specific revenue offsets are made by the House 
     Committee on Ways and Means and the Senate Committee on 
     Finance, which are the tax-writing committees.

     SEC. 502. POLICY ON DEFENSE PRIORITIES.

       It is the policy of this resolution that--
       (1) there is no higher priority than the defense of our 
     Nation, and therefore the Administration and Congress will 
     make the necessary investments and reforms to strengthen our 
     military so that it can successfully meet the threats of the 
     21st century;
       (2) acquisition reform is needed at the Department of 
     Defense to end excessive cost growth in the development of 
     new weapons systems and to ensure that weapons systems are 
     delivered on time and in adequate quantities to equip our 
     servicemen and servicewomen;
       (3) the Department of Defense should review defense plans 
     to ensure that weapons developed to counter Cold War-era 
     threats are not redundant and are applicable to 21st century 
     threats;
       (4) sufficient resources should be provided for the 
     Department of Defense to aggressively address the 758 
     unimplemented recommendations made by the Government 
     Accountability Office (GAO) since 2001 to improve practices 
     at the Department of Defense, which could save billions of 
     dollars that could be applied to priorities identified in 
     this section;
       (5) the Department of Defense should review the role that 
     contractors play in its operations, including the degree to 
     which contractors are performing inherently governmental 
     functions, to ensure it has the most effective mix of 
     government and contracted personnel;
       (6) the Department of Defense report to Congress on its 
     assessment of Cold War-era weaponry, its progress on 
     implementing GAO recommendations, and its review of 
     contractors at the Department as outlined in paragraphs (3), 
     (4), and (5) by a date to be determined by the appropriate 
     committees;
       (7) the GAO provide a report to the appropriate 
     congressional committees by December 31, 2009, on the 
     Department of Defense's progress in implementing its audit 
     recommendations;

[[Page 10744]]

       (8) ballistic missile defense technologies that are not 
     proven to work through adequate testing and that are not 
     operationally viable should not be deployed, and that no 
     funding should be provided for the research or development of 
     space-based interceptors;
       (9) cooperative threat reduction and other nonproliferation 
     programs (securing ``loose nukes'' and other materials used 
     in weapons of mass destruction), which were highlighted as 
     high priorities by the 9/11 Commission, need to be funded at 
     a level that is commensurate with the evolving threat;
       (10) readiness of our troops, particularly the National 
     Guard and Reserves, is a high priority, and that continued 
     emphasis is needed to ensure adequate equipment and training;
       (11) improving military health care services and ensuring 
     quality health care for returning combat veterans is a high 
     priority;
       (12) military pay and benefits should be enhanced to 
     improve the quality of life for military personnel and their 
     families;
       (13) the Department of Defense should make every effort to 
     investigate the national security benefits of energy 
     independence, including those that may be associated with 
     alternative energy sources and energy efficiency conversions;
       (14) the Administration's budget requests should continue 
     to comply with section 1008, Public Law 109-364, the John 
     Warner National Defense Authorization Act for Fiscal Year 
     2007, and that to the extent practicable overseas military 
     operations should no longer be funded through emergency 
     supplemental appropriations; and
       (15) when assessing security threats and reviewing the 
     programs and funding needed to counter these threats, the 
     Administration should do so in a comprehensive manner that 
     includes all agencies involved in our national security.

                    TITLE VI--SENSE OF THE CONGRESS

     SEC. 601. SENSE OF THE CONGRESS ON VETERANS' AND 
                   SERVICEMEMBERS' HEALTH CARE.

       It is the sense of the Congress that--
       (1) the Congress supports excellent health care for current 
     and former members of the United States Armed Services--they 
     have served well and honorably and have made significant 
     sacrifices for this Nation;
       (2) the President's budget will improve health care for 
     veterans by increasing appropriations for VA by 10 percent 
     more than the 2009 level, increasing VA's appropriated 
     resources for every year after 2010, and restoring health 
     care eligibility to additional nondisabled veterans with 
     modest incomes;
       (3) VA is not and should not be authorized to bill private 
     insurance companies for treatment of health conditions that 
     are related to veterans' military service;
       (4) VA may find it difficult to realize the level of 
     increase in medical care collections estimated in the 
     President's budget for 2010 using existing authorities, and 
     increases to veterans beneficiary travel reimbursement are 
     important; therefore, this resolution provides $673,000,000 
     more for Function 700 (Veterans Benefits and Services) than 
     the President's budget to safeguard the provision of health 
     care to veterans;
       (5) it is important to continue providing sufficient and 
     timely funding for veterans' and servicemembers' health care; 
     and
       (6) this resolution provides additional funding above the 
     2009 levels for VA to research and treat mental health, post-
     traumatic stress disorder, and traumatic brain injury.

     SEC. 602. SENSE OF THE CONGRESS ON HOMELAND SECURITY.

       It is the sense of the Congress that because making the 
     country safer and more secure is such a critical priority, 
     the resolution therefore provides robust resources in the 
     four budget functions--Function 400 (Transportation), 
     Function 450 (Community and Regional Development), Function 
     550 (Health), and Function 750 (Administration of Justice)--
     that fund most nondefense homeland security activities that 
     can be used to address our key security priorities, 
     including--
       (1) safeguarding the Nation's transportation systems, 
     including rail, mass transit, ports, and airports;
       (2) continuing with efforts to identify and to screen for 
     threats bound for the United States;
       (3) strengthening border security;
       (4) enhancing emergency preparedness and training and 
     equipping first responders;
       (5) helping to make critical infrastructure more secure and 
     resilient against the threat of terrorism and natural 
     disasters;
       (6) making the Nation's cyber infrastructure resistive to 
     attack; and
       (7) increasing the preparedness of the public health 
     system.

     SEC. 603. SENSE OF THE CONGRESS ON PROMOTING AMERICAN 
                   INNOVATION AND ECONOMIC COMPETITIVENESS.

       It is the sense of the Congress that--
       (1) the Congress should provide sufficient investments to 
     enable our Nation to continue to be the world leader in 
     education, innovation, and economic growth as envisioned in 
     the goals of the America COMPETES Act;
       (2) this resolution builds on significant funding provided 
     in the American Recovery and Reinvestment Act for scientific 
     research and education in Function 250 (General Science, 
     Space and Technology), Function 270 (Energy), Function 300 
     (Natural Resources and Environment), Function 500 (Education, 
     Training, Employment, and Social Services), and Function 550 
     (Health);
       (3) the Congress also should pursue policies designed to 
     ensure that American students, teachers, businesses, and 
     workers are prepared to continue leading the world in 
     innovation, research, and technology well into the future; 
     and
       (4) this resolution recognizes the importance of the 
     extension of investments and tax policies that promote 
     research and development and encourage innovation and future 
     technologies that will ensure American economic 
     competitiveness.

     SEC. 604. SENSE OF THE CONGRESS REGARDING PAY PARITY.

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

     SEC. 605. SENSE OF THE CONGRESS ON COLLEGE AFFORDABILITY AND 
                   STUDENT LOAN REFORM.

       It is the Sense of the Congress that--
       (1) nothing in the resolution should be construed to reduce 
     any assistance that makes college more affordable and 
     accessible for students, including but not limited to student 
     aid programs and services provided by nonprofit State 
     agencies and private lenders;
       (2) private and non-profit lenders, originators, and loan 
     servicers help students plan for, apply to, and pay for post-
     secondary education and training;
       (3) any reform of the federal student loan programs to 
     ensure that students have reliable and efficient access to 
     federal loans should include some future role for the 
     currently involved private and non-profit entities, including 
     state non-profits with 100% FFEL lending in the State, and 
     capitalize on the current infrastructure provided by private 
     and non-profit entities, in order both to provide employment 
     to many Americans during this time of economic distress and 
     to maintain valuable services that make post-secondary 
     education more accessible and attainable for many Americans; 
     and
       (4) therefore, pursuant to any changes to the student loan 
     programs, loan processing, administration, and servicing 
     should continue to be performed, as needed, by for-profit and 
     non-profit entities.

     SEC. 606. SENSE OF THE CONGRESS ON GREAT LAKES RESTORATION.

       It is the sense of the Congress that this resolution 
     recognizes the need to address significant and long-standing 
     problems affecting the major large scale aquatic, estuarine, 
     and coastal ecosystems nationwide. This resolution includes 
     funding for a new interagency initiative to address such 
     regional ecosystems. It also includes funding to work with 
     Great Lakes States, tribes, local communities, and 
     organizations to more effectively address issues prioritized 
     in the Great Lakes Regional Collaborative. This initiative 
     could address issues such as invasive species, habitat 
     restoration and conservation, non-point source pollution, and 
     contaminated sediment. The resolution also supports the 
     President's proposal to use outcome-oriented performance 
     goals and measures to target the most significant problems 
     and track progress in addressing these ecosystems.

     SEC. 607. SENSE OF THE CONGRESS REGARDING THE IMPORTANCE OF 
                   CHILD SUPPORT ENFORCEMENT.

       It is the sense of the Congress that--
       (1) additional legislative action is needed to ensure that 
     States have the necessary resources to collect all child 
     support that is owed to families and to allow them to pass 
     100 percent of support on to families without financial 
     penalty; and
       (2) when 100 percent of child support payments are passed 
     to the child, rather than administrative expenses, program 
     integrity is improved and child support participation 
     increases.
       And the House agree to the same.
     John M. Spratt, Jr.,
     Rosa L. DeLauro,
     Allen Boyd,
                                Managers on the Part of the House.

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

       Joint Explanatory Statement of the Committee of Conference

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the House to the concurrent resolution (S. Con. 
     Res. 13), setting forth the congressional budget for the 
     United States Government for fiscal year 2010, revising the 
     appropriate budgetary levels for fiscal year 2009, and 
     setting forth the appropriate budgetary levels for fiscal 
     years 2011 through 2014, submit the following joint statement 
     to the House and the Senate in explanation of the effect of 
     the action agreed upon by the managers and recommended in the 
     accompanying conference report:
       The House amendment struck all of the Senate concurrent 
     resolution after the resolving clause and inserted the House-
     passed concurrent resolution on the budget (H. Con. Res. 85) 
     as a substitute text.
       The Senate recedes from its disagreement to the amendment 
     of the House with an amendment that is a substitute for the 
     Senate concurrent resolution and the House amendment. The 
     differences between the Senate concurrent resolution, the 
     House amendment, and the substitute agreed to in conference 
     are noted below, except for clerical corrections, conforming 
     changes made necessary by agreements reached by the 
     conferees, and minor drafting and clarifying changes.

[[Page 10745]]



                          DISPLAYS AND AMOUNTS

       The required contents of concurrent budget resolutions are 
     set forth in section 301(a) of the Congressional Budget Act 
     of 1974. The years in this document are fiscal years unless 
     otherwise noted.
       The treatment of budget function levels in the House-passed 
     and Senate-passed budget resolutions and the conference 
     report is as follows:
     Senate-passed Resolution
       The Senate concurrent resolution includes all of the items 
     required under section 301(a) of the Congressional Budget 
     Act.
     House-passed Resolution
       The House resolution includes all of the items required as 
     part of a concurrent budget resolution under section 301(a) 
     of the Congressional Budget Act other than the spending and 
     revenue levels for Social Security (which are not required 
     for the House, but are used to enforce a point of order 
     applicable only in the Senate).
     Conference Agreement
       The conference agreement includes all of the items required 
     by section 301(a) of the Congressional Budget Act.

                     AGGREGATE AND FUNCTION LEVELS

       Pursuant to section 301(a)(4) of the Congressional Budget 
     Act, the budget resolution must set appropriate levels for 
     each major functional category based on the 302(a) 
     allocations and the budgetary totals.
       The respective levels of the Senate concurrent resolution, 
     the House concurrent resolution, and conference agreement for 
     each major budget function, as well as revenue totals, are 
     discussed in the section after the numerical tables. A 
     summary of the overall budget policy is as follows:
       Total spending is $3.444 trillion in budget authority (BA) 
     and $3.555 trillion in outlays in 2010, and $17.783 trillion 
     in BA and $18.031 trillion in outlays over 2010-2014.
       Discretionary spending totals $1.226 trillion in BA and 
     $1.376 trillion in outlays in 2010, and $5.958 trillion in BA 
     and $6.521 trillion in outlays over 2010-2014. Excluding 
     funding for overseas deployments and other activities, and 
     for disasters accounted for in Function 920, discretionary 
     spending for 2010 totals $1.086 trillion in BA and $1.273 
     trillion in outlays. These aggregate amounts (minus cap 
     adjustments for program integrity initiatives and the Low-
     Income Home Energy Assistance Program) are allocated to the 
     Appropriations Committees to be suballocated among their 
     respective appropriations subcommittees.
       Mandatory spending totals $2.218 trillion in BA and $2.178 
     trillion in outlays in 2010, and $11.825 trillion in BA and 
     $11.510 trillion in outlays over 2010-2014. This includes $2 
     billion in reconciled savings over 2009-2014. These savings 
     are reflected in Function 920 and will be determined by the 
     committees of jurisdiction. (The resolution assumes the 
     instructions will be used for health care reform and 
     investing in education.)
       Revenue totals $2.322 trillion in 2010, and $14.157 
     trillion over five years. Specific policies will be 
     determined by the Committee on Finance in the Senate and the 
     Committee on Ways and Means in the House.
       The conference agreement uses the Congressional Budget 
     Office (CBO) March 2009 baseline.
       The conference agreement reduces the budget deficit from 
     $1.233 trillion in 2010 to $523 billion in 2014.
       The following section describes the conference agreement's 
     revenue levels and spending according to the budget's 
     functional categories. 

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                                REVENUES

     Summary
       The revenue component of the budget resolution reflects all 
     of the federal government's tax receipts that are classified 
     as ``on-budget.'' This includes individual income taxes; 
     corporate income taxes; excise taxes, such as the gasoline 
     tax; and other taxes, such as estate and gift taxes. Taxes 
     collected for the Social Security system--the Old Age and 
     Survivors and Disability Insurance (OASDI) payroll tax--are 
     ``off-budget.'' The Hospital Insurance payroll tax portion of 
     Medicare, the Federal Unemployment Tax Act payroll tax, 
     railroad retirement and other retirement systems are all 
     ``on-budget.'' Customs duties, tariffs, and other 
     miscellaneous receipts are also included in the revenue 
     component. Pursuant to the Congressional Budget Act of 1974 
     and the Budget Enforcement Act of 1990, Social Security 
     payroll taxes are not included in the budget resolution.
     Senate-passed Resolution
       The Senate budget resolution includes $1.6 trillion in on-
     budget revenues for 2010, and $10.4 trillion over 2010-2014. 
     (The corresponding revenue figures on a unified basis are 
     $2.3 trillion for 2010 and $14.1 trillion over five years.)
       The revenue level in the Senate resolution is $825.0 
     billion below the levels in the CBO baseline over 2010-2014.
       The Senate resolution provides substantial tax relief for 
     the middle class. Consistent with the President's budget, the 
     Senate resolution assumes: the 10 percent bracket, child tax 
     credit, marriage penalty relief are made permanent, as well 
     as the related expansions of the child tax credit and the 
     earned income tax credit included in the economic recovery 
     package are extended; the American Opportunity Tax Credit 
     providing a $2,500 credit for higher education is made 
     permanent; an expansion of the existing ``savers credit'' and 
     a new policy to require employers that do not offer 401(k)s 
     to offer automatic enrollment in IRAs. The Senate resolution 
     also follows the President's proposals to extend other 2001 
     and 2003 tax changes for couples with incomes under $250,000 
     and singles with incomes under $200,000, including the 25 
     percent and 28 percent brackets and the preferential rates 
     for capital gains and dividend income.
       The Senate resolution assumes three years of alternative 
     minimum tax relief, through 2012, without offsets. It calls 
     for permanent reform of the estate tax, reflecting 
     continuation of the 2009 estate tax parameters, with an 
     exemption of $3.5 million ($7 million for a couple) indexed 
     to inflation and a top rate of 45 percent. The Senate 
     resolution would extend through 2011 those tax provisions 
     that are slated to expire in 2009 or 2010, but that have been 
     routinely extended in the past. These provisions (referred to 
     as ``extenders'') include, among others, the research and 
     experimentation tax credit, the deduction for state and local 
     sales taxes, the deduction for teacher classroom expenses, 
     and the exception for active financing income.
       The Senate resolution calls for small business tax relief. 
     It assumes the permanent extension of the section 179 
     expensing provision for small businesses. In addition, it 
     includes a new proposal to eliminate capital gains taxes for 
     small businesses, going beyond the current 75 percent 
     exclusion. It also calls for expanding the net operating loss 
     carryback rules.
       The Senate resolution includes several reserve funds that 
     provide for tax relief, including refundable tax relief and 
     the extension of expired and expiring tax relief, as long as 
     the costs of these provisions are offset. One reserve fund 
     would provide for comprehensive tax reform that would ensure 
     a sustainable revenue base in a tax system that promotes 
     simplicity, fairness, and competitiveness. Additional reserve 
     funds address specific tax issues, such as extending the 
     deduction for state and local sales taxes and the incentives 
     for promoting charitable donations from individual retirement 
     account funds, enhancing the employer-provided child care 
     credit and the dependent care tax credit, among other things.
       Finally, the Senate resolution assumes enactment of 
     loophole closers and other revenue-raising provisions 
     consistent with levels in the President's budget. The 
     resolution assumes that the Finance Committee will work 
     closely with the Administration to develop the proposals to 
     achieve the revenue levels assumed in the resolution. To help 
     close the tax gap and bolster Internal Revenue Service (IRS) 
     enforcement, the resolution provides additional resources 
     available through a discretionary cap adjustment that directs 
     $890 million to IRS enforcement activities.
     House-passed Resolution
       The House budget resolution calls for reducing the revenues 
     provided under CBO's baseline forecast by $613.2 billion over 
     the 2009-2014 period and by $1,480.2 billion over the 2010-19 
     period. This reduction in revenues reflects the House budget 
     resolution's extension of the elements of the 2001-2003 tax 
     cuts benefitting middle class families (including, but not 
     limited to the child tax credit, marriage penalty relief, the 
     10 percent bracket, education incentives, other benefits for 
     families with children, reductions in other individual income 
     tax brackets, and small business tax relief). The House 
     resolution also extends the estate tax at 2009 levels--
     eliminating estate taxes on all but a minute fraction of 
     estates by reforming and substantially increasing the unified 
     tax credit. It also includes a one-year patch of the 
     Alternative Minimum Tax (AMT). The House resolution also 
     accommodates additional AMT relief in a deficit-neutral 
     manner. The House resolution further accommodates deficit-
     neutral extension of other expiring tax provisions and other 
     proposals that support working families, businesses, states, 
     or communities. It also accommodates other high priority 
     deficit-neutral revenue adjustments, such as tax incentives 
     for energy efficiency and renewable energy, the deduction for 
     State and local taxes, and a tax credit for construction of 
     public schools. Decisions about specific revenue offsets are 
     made by the Ways and Means Committee, which has a significant 
     range of offsets that it can consider. However, unless 
     expressly indicated otherwise, the House resolution does not 
     assume any of the specific revenue offset proposals provided 
     for in the President's budget.
     Conference Agreement
       The conference agreement includes $1.654 trillion in on-
     budget revenues for 2010, and $10.500 trillion over 2010-
     2014. (The corresponding revenue figures on a unified basis 
     are $2.322 trillion for 2010 and $14.157 trillion over five 
     years.) The conference agreement provides for three 
     additional years of AMT relief, without offset, a two-year 
     extension of expired and expiring tax provisions, and a new 
     incentive for retirement savings. The agreement supports the 
     permanent extension of tax relief first enacted in 2001 and 
     2003 to benefit middle-income individuals and families--
     including extension of the child tax credit, the 10-percent 
     bracket, and marriage penalty relief--and provides for estate 
     tax reform. In addition, the agreement assumes the extension 
     of other 2001 and 2003 tax changes for middle-income 
     taxpayers, including the 25 percent and 28 percent brackets 
     and the preferential rates for investment income. Further, 
     the agreement includes several deficit-neutral reserve funds 
     that accommodate a range of additional tax reform and tax 
     relief proposals, such as expanding eligibility for the 
     refundable child credit, among the most effective tax relief 
     vehicles for working families with children.
       The revenue level in the conference agreement is $764 
     billion below the levels under current law over 2009-2014. 
     Revenue legislation is subject to House and Senate pay-as-
     you-go rules. In the House, section 421 of the conference 
     agreement allows the chairman of the Budget Committee to make 
     current policy adjustments before evaluating the costs of tax 
     legislation for compliance with House budget rules and 
     procedures, assuming the condition stated in that section is 
     met.

                     NATIONAL DEFENSE: FUNCTION 050

     Function Summary
       The National Defense function includes the military 
     activities of the Department of Defense (DoD), the nuclear 
     weapons-related activities of the Department of Energy (DOE) 
     and the National Nuclear Security Administration, and the 
     national security activities of several other agencies such 
     as the Selective Service, Coast Guard, and Federal Bureau of 
     Investigation. The programs in this function include: the pay 
     and benefits of active, Guard, and reserve military 
     personnel; DoD operations including training, maintenance of 
     equipment, and facilities; health care for military personnel 
     and dependents; procurement of weapons; research and 
     development; construction of military facilities, including 
     housing; research on nuclear weapons; and the cleanup of 
     nuclear weapons production facilities.
     Senate-passed Resolution
       The Senate resolution fully funds the President's core 
     defense budget request over the five-year budget window. 
     Total national defense discretionary funding in the Senate 
     resolution is $556.1 billion. This includes $533.7 billion in 
     2010 for the Department of Defense, $20.3 billion more than 
     the 2009 enacted level exclusive of war funding and defense 
     spending in the economic recovery package.
       The Senate resolution reflects the President's request for 
     additional 2009 overseas contingency operations funding of 
     $75.5 billion for the Defense Department. If enacted, this 
     will bring total war funding for 2009 to $152.6 billion. 
     Under President Bush, the total cost of the wars reached $864 
     billion. The Senate resolution also provides for the 2010 war 
     request of $130 billion. Including requested war funds and 
     mandatory spending, the Senate resolution provides $691.7 
     billion in BA for defense in 2010.
       The Obama Administration has demonstrated its commitment to 
     budgetary transparency when it comes to funding for overseas 
     contingency operations. The Bush Administration failed to 
     honor its commitment to include war costs in its budget 
     request and obscured the fiscal situation by seeking war 
     funding as an emergency even after five years of war in Iraq. 
     The Obama Administration, on the other hand, has provided a 
     good faith estimate of war costs for 2010 and an annual 
     allowance of $50 billion for potential future costs of 
     overseas contingency operations from 2011 onward. These

[[Page 10767]]

     amounts are reflected in the Senate resolution.
       In keeping with how the past two budget resolutions have 
     handled war costs, the Senate resolution includes a $130 
     billion cap adjustment provision for 2010 that allows the 
     Chairman to revise the discretionary spending cap for non-
     emergency appropriations related to overseas contingency 
     operations such as the wars in Iraq and Afghanistan. The 
     Senate resolution assumes the use of this cap adjustment and 
     allocates the amounts to the National Defense function. 
     However, the cap adjustment would not prevent further war 
     funding on an emergency basis if war costs exceed the 
     allotted level.
       The Senate resolution includes a reserve fund to facilitate 
     enactment of the President's proposal to expand ``concurrent 
     receipt'' of military retired pay and veterans disability 
     compensation to retirees who were medically retired from 
     active service. While full programmatic details will be 
     provided later, the administration has indicated that the 
     budget funds the expansion of the Army and Marine Corps in 
     order to enhance military readiness and reduce the strain of 
     multiple, extended deployments on current servicemembers. 
     Additionally, the President's request includes funding to 
     modernize military barracks and dormitories, and to improve 
     medical care and housing for wounded servicemembers. The 
     Senate resolution supports these objectives.
       The Senate resolution also recognizes the serious inequity 
     in how the military death benefits system treats widows and 
     orphans whom our servicemembers and veterans leave behind. 
     The Senate resolution provides a deficit-neutral reserve fund 
     to facilitate the repeal of the law that requires a dollar-
     for-dollar reduction in Department of Defense Survivor 
     Benefit Plan (SBP) annuity benefit payments by benefits 
     received under the Department of Veterans Affairs Dependency 
     and Indemnity Compensation (DIC) program. Repeal of the 
     offset would allow the widows and orphans whom our 
     servicemembers and veterans leave behind to receive the full 
     SBP amount due to them. Congress recognized the injustice of 
     the SBP-DIC offset in the National Defense Authorization Act 
     for Fiscal Year 2008 when it authorized a special payment to 
     SBP-DIC-affected survivors, but this payment is far below the 
     full amount that is offset.
       The ability of the United States military to project power 
     worldwide depends on the aerial refueling tanker fleet. The 
     backbone of this fleet is the KC-135, which is rapidly 
     approaching its 50th year in service. Further postponement of 
     the tanker re-capitalization program will have an adverse 
     effect on our ability to achieve the requirements of the 
     National Military Strategy. Accordingly, the Senate 
     resolution assumes that the Air Force will receive not less 
     than $2.37 billion in 2010, and not less than $13 billion 
     across the Future Years Defense Plan to fund the development 
     and procurement of a next generation aerial refueling tanker.
       The National Guard has a long history of outstanding 
     service to our nation, and our nation's reliance on the Guard 
     has only increased since September 11, 2001. The Senate 
     resolution encourages the Appropriations Committee to 
     identify additional resources within the defense budget to 
     address needs for National Guard equipment.
       The Senate resolution also assumes no less than $5.55 
     billion in funding for the Defense Environmental Cleanup 
     account. The environmental management program is charged with 
     efficiently cleaning up the environmental damage resulting 
     from 50 years of nuclear weapons production. The Senate 
     resolution provides for increased funding at several major 
     sites addressed under this program including Hanford, Idaho 
     Falls, Oak Ridge, and Savannah River. This increase brings 
     total environmental management funding for nuclear site 
     cleanup (including amounts in other budget functions) to $6.5 
     billion.
       Defense funding remains at record levels, even after 
     adjusting for inflation. The Department of Defense has had 
     serious trouble with cost growth in its weapons acquisition 
     programs. The Government Accountability Office has found that 
     the total acquisition cost of the Pentagon's 2007 portfolio 
     of major programs has exceeded initial estimates by nearly 
     $300 billion.
       The Obama Administration has announced that it will make 
     reform of the acquisition process a top priority in order to 
     get the best possible value for defense spending. The Senate 
     resolution supports that reform effort by including a reserve 
     fund for defense contracting reform. Additionally, the Senate 
     resolution assumes not less than $500 million for the 
     Acquisition Workforce Development Fund, which is already 
     showing great promise as a mechanism for enhancing the 
     capability of the Department of Defense to oversee 
     acquisition programs and get better value for our defense 
     dollar. While the Senate resolution does not project savings 
     from acquisition reform or the contracting reform initiatives 
     announced by the President, successful implementation of 
     those initiatives could result in significant savings in 
     future years that should be reserved for deficit reduction.
       The Senate resolution also includes a program integrity cap 
     adjustment dedicated to reducing waste in defense 
     contracting. The cap adjustment allows the Chairman of the 
     Budget Committee to increase the discretionary spending cap 
     by up to $100 million to accommodate legislation 
     appropriating funding for the Department of Defense for 
     additional activities to reduce waste, fraud, abuse and 
     overpayments in defense contracting or to enhance the 
     capability of the defense acquisition or contracting 
     workforce to save taxpayer resources. When billions of 
     dollars are wasted due to poor contracting practices, 
     ordering of unneeded spare parts, or other waste, fraud and 
     abuse, it is our troops that suffer.
     House-passed Resolution
       The House resolution reflects a total of $562.0 billion in 
     BA and $606.0 billion in outlays for 2010, and $2.9 trillion 
     in BA and $3.0 trillion in outlays over five years.
       There is no higher priority than the defense of our nation, 
     and therefore this resolution makes the necessary investments 
     and calls for the necessary reforms to ensure the country is 
     able to meet the security challenges of the 21st century.
       The House resolution includes specific defense policy 
     assumptions in Title V, section 502. It recognizes that as 
     the country faces its worst economic crisis since the Great 
     Depression, DoD needs to get the most out of every dollar it 
     spends by making tough but necessary tradeoffs to ensure 
     resources are applied to the most effective and operationally 
     viable programs, and by assessing national security needs in 
     a comprehensive manner that includes all agencies involved in 
     our national security.
       The National Commission on Terrorist Attacks Upon the 
     United States (commonly referred to as the 9/11 Commission) 
     identified terrorists with weapons of mass destruction as our 
     number one threat. Consequently, it is the policy of the 
     House resolution that non-proliferation programs, such as the 
     Cooperative Threat Reduction program and the nonproliferation 
     programs at the Department of Energy, be funded at a level 
     that is commensurate with the evolving threat.
       The House resolution recognizes that our most important 
     security resource is our men and women who serve in uniform. 
     To honor their service, it is the policy of the House 
     resolution to not only ensure that they are properly equipped 
     and trained to perform their mission, but that they also have 
     the proper support in terms of health care, pay, and support 
     for their families. The House resolution also includes a 
     deficit-neutral reserve fund for an expansion of eligibility 
     to permit additional disabled military retirees to receive 
     both disability compensation and retired pay.
       In recent years, cost overruns on major weapons programs 
     have worsened. According to the Government Accountability 
     Office (GAO), the cost of major weapon systems on DoD's books 
     as of 2007 increased nearly $300 billion above initial 
     estimates. As a result, our military is not able to purchase 
     equipment in adequate quantities to equip our servicemen and 
     servicewomen. To put our defense plans on a sustainable path 
     and to meet our military's equipment requirements, the House 
     resolution affirms the Administration's calls to make 
     acquisition reform a top priority.
       According to GAO, government-wide spending on contractor 
     services has more than doubled over the last ten years. DoD 
     has expanded the use of contractors in its acquisition 
     process to aid in program management functions and has relied 
     heavily on contractors to carry out operations in Iraq and 
     Afghanistan. This trend has implications for DoD in terms of 
     accountability, operational effectiveness, and cost. 
     Consequently, it is the policy of the House resolution that 
     DoD review the role that contractors play in its operations, 
     including the degree to which contractors are performing 
     inherently governmental functions, to ensure it has the most 
     effective mix of government and contracted personnel.
       GAO has performed numerous audits and has produced numerous 
     recommendations regarding DoD's programs and processes that 
     have produced billions of dollars of savings. According to a 
     GAO report released in December 2008, DoD implemented 1,682 
     recommendations made by GAO from 2001 to 2007 that have 
     resulted in financial benefits exceeding $89 billion. There 
     are still 758 recommendations made over that period that DoD 
     has not yet implemented that could yield billions of dollars 
     in further savings. The House resolution continues to 
     highlight the need for DoD to continue to make implementation 
     of GAO recommendations a top priority and, to the extent 
     possible, encourages DoD to use savings resulting from 
     implemented GAO recommendations toward any upfront 
     investments needed to implement the remaining 758 
     recommendations.
       The House resolution encourages the committees with 
     jurisdiction over defense to continue to conduct vigorous 
     oversight with the objective of ferreting out wasteful 
     practices, fraud, and abuse. It encourages the committees to 
     require DoD to report to Congress on its progress in 
     implementing GAO recommendations, the role contractors play 
     in its operations, its assessment of the applicability of 
     Cold War-era weapons to meet 21st century threats, and how 
     well DoD's comprehensive Financial Improvement and

[[Page 10768]]

     Audit Readiness (FIAR) plan is moving the Department toward 
     achieving a clean audit.
       DoD spends billions of dollars on fuel and electricity for 
     its planes, ships, vehicles and facilities each year and 
     increasing world demand for energy could therefore have 
     significant consequences for our military in the future. As a 
     result, the House resolution calls on DoD to investigate the 
     benefit of alternative energy sources and energy efficiency 
     conversions. The Department should pursue those technologies 
     that could reduce its energy needs, enhance expeditionary 
     operations, achieve savings, and reduce dependence on 
     unreliable energy sources.
       The House resolution continues to recognize the need for 
     the DoD to develop a shipbuilding plan that is viable in 
     terms of providing an adequate number of ships for the Navy 
     to perform its mission and that is viable in terms of 
     sustaining the industrial base.
       Our national security is not solely dependent on our 
     military, and other agencies and programs are important to 
     effectively address the threats of today and mitigate the 
     possibility of future threats. Therefore, it is the policy of 
     the House resolution that coordination is needed to ensure 
     that all of our agencies involved in our national security 
     work in a complementary way, and that when assessing security 
     threats and the funding needed to counter them, the 
     Administration should do so in a comprehensive manner that 
     includes all agencies involved in our national security.
     Conference Agreement
       The conference agreement for Function 050 includes a total 
     of $562.0 billion in BA and $606.0 billion in outlays in 
     2010, and $2.9 trillion in BA and $3.0 trillion in outlays 
     over five years. Consistent with both the House- and Senate-
     passed resolutions, the conference agreement affirms the 
     importance of reforming the defense acquisition and 
     contracting processes to achieve better value for the 
     American taxpayer.
       For mandatory programs, the conference agreement provides 
     $5.9 billion in BA and $6.0 billion in outlays in 2010, and 
     $28.3 billion in BA and $28.4 billion in outlays over five 
     years.
       The conference agreement reflects the cost of overseas 
     deployments and other activities in Function 970, as in the 
     House-passed resolution. Consistent with the Senate 
     resolution, the conference agreement allows the discretionary 
     spending caps to be adjusted to accommodate appropriations 
     for such costs.
       The conference agreement includes deficit-neutral reserve 
     funds addressing defense-related matters. Both chambers have 
     deficit neutral reserve funds to accommodate initiatives 
     related to meeting our commitments to the nation's military 
     personnel, veterans, and survivors. The Department of Defense 
     and congressional committees of jurisdiction are encouraged 
     to reverse the decision to eliminate credit toward DOD 
     retirement pay for service in the Alaska Territorial Guard 
     during World War II.
       The conference agreement also includes a Senate deficit-
     neutral reserve fund providing for legislation that would 
     reform defense contracting and acquisition policy in order to 
     achieve better value for taxpayer resources. The reserve fund 
     would accommodate legislation that provided for additional 
     activities to reduce waste, fraud, abuse, and overpayments in 
     defense contracting or to enhance the capability of the 
     defense acquisition or contracting workforce, among other 
     purposes.
       The conference agreement includes a statement of policy on 
     defense issues (section 502) that outlines key priorities to 
     be funded within the defense allocation and the need for the 
     Department of Defense to reform its acquisition process and 
     to do a better job of reining in wasteful spending, 
     particularly with regard to contracting practices and 
     continuing funding of Cold War-era weapons systems that may 
     not be as effective against today's threats. It also 
     highlights the need for DoD to place greater emphasis on 
     implementing GAO recommendations, which could yield billions 
     of dollars in savings.

                  INTERNATIONAL AFFAIRS: FUNCTION 150

     Function Summary
       Function 150 covers funding for U.S. international 
     activities, including: operating and securing U.S. embassies 
     and consulates throughout the world; providing military 
     assistance to allies; assisting refugees; aiding developing 
     nations; dispensing economic assistance to fledgling 
     democracies; promoting U.S. exports abroad; making U.S. 
     payments to international organizations; and contributing to 
     international peacekeeping efforts. The major agencies in 
     this function include the Departments of State, Agriculture, 
     and the Treasury; the U.S. Agency for International 
     Development; and the Millennium Challenge Corporation.
     Senate-passed Resolution
       The President's request for international affairs 
     activities, as re-estimated by CBO, is $53.8 billion. This 
     represents an increase of $15.6 billion above the non-
     emergency 2009 level. However, the size of the year-over-year 
     increase requested by the President's budget reflects a 
     change in concept, as the President seeks to transfer 
     international affairs funding in support of overseas 
     contingency operations and programs with predictable and 
     recurring funding requirements that have previously been 
     funded in supplementals to the base budget. This more 
     transparent budgeting is commendable.
       Typically, the baseline used for year-over-year comparisons 
     in the Congressional budget resolution excludes all 
     supplementals and emergency funding. Therefore, the 
     President's decision to reduce or eliminate emergency 
     requests for international affairs in 2010 artificially 
     inflates the year-over-year increase. A more realistic 
     comparison, including enacted bridge funding in the 2009 
     level, shows a year-over-year increase of $11.5 billion for 
     the President's request.
       The Senate resolution calls for $53.8 billion for the 
     international affairs function and assumes that the top 
     priorities in allocating the increase for international 
     affairs will be related to core national security concerns 
     such as counter-proliferation and anti-terrorism, as well as 
     enhancing the capacity of the State Department and USAID to 
     assume responsibilities that have been taken on by the 
     military.
     House-passed Resolution
       The House resolution calls for a total of $45.3 billion in 
     BA and $43.5 billion in outlays for 2010, and for $271.8 
     billion in BA and $259.3 billion in outlays over five years. 
     The total BA level for 2010 reflects discretionary BA of 
     $48.5 billion and mandatory BA of -$3.1 billion. This 
     function has negative mandatory BA and outlay levels. These 
     levels reflect receipts of the foreign military sales trust 
     fund, the repayment of loans and credits by foreign nations, 
     and the liquidation of economic assistance loans, foreign 
     military financing loans, Export-Import Bank loans, and 
     housing and other credit guaranty programs.
       The 2009 level of discretionary BA includes $4.5 billion in 
     enacted supplemental appropriations. It does not include an 
     additional $7.1 billion in supplemental appropriations for 
     2009 that the President has requested for international 
     affairs, which is included under Function 970 (Overseas 
     Deployments and Other Activities).
       For 2010, the House resolution provides $10.2 billion (26.8 
     percent) more discretionary BA than the 2009 level, excluding 
     supplemental funding, and $5.8 billion (13.6 percent) more 
     funding than total enacted funding for 2009 so far. The House 
     resolution provides $5.4 billion (9.9 percent) less than the 
     President's 2010 budget, which includes his proposal to 
     provide in the regular budget request funding that has in 
     recent years been requested and appropriated as supplemental 
     funding. Pursuant to the House resolution, funding designated 
     as an emergency or for overseas deployments and other 
     activities does not count against the House Appropriations 
     Committee's allocation provided in this resolution.
       The House shares the President's commitment to reduce 
     global hunger and poverty. The House resolution provides 
     funding in this function to help achieve the goal of cutting 
     it in half by no later than 2015.
       The House notes the strong support for H.R. 44, the Guam 
     World War II Loyalty Recognition Act, which the House 
     approved on February 23, 2009. The House also approved this 
     legislation during the 110th Congress (H.R. 1595). The bill 
     authorizes compensation to the Guamanian victims of the 
     Imperial Japanese military occupation during World War II.
     Conference Agreement
       International Affairs discretionary spending under the 
     conference agreement totals $51.0 billion in BA and $47.5 
     billion in outlays for 2010. This represents an increase of 
     $12.8 billion in BA above the non-emergency 2009 level and 
     $8.7 billion above the 2009 level adjusted to include enacted 
     supplemental funding (other than American Recovery and 
     Reinvestment Act funding).
       Including negative mandatory spending, the conference 
     agreement provides an overall total of $47.9 billion in BA 
     and $44.7 billion in outlays for 2010, and $260 billion in BA 
     and $253 billion in outlays over five years.

          GENERAL SCIENCE, SPACE AND TECHNOLOGY: FUNCTION 250

     Function Summary
       The General Science, Space, and Technology function 
     includes funding for the National Aeronautics and Space 
     Administration (NASA), except aviation programs, the National 
     Science Foundation (NSF), as well as programs in the 
     Department of Energy (DOE) Office of Science.
     Senate-passed Resolution
       The Senate resolution provides an increase above the 
     President's requested level over the five-year window by 
     providing $31.1 billion in BA and $32.5 billion in outlays 
     for 2010, and $171.9 billion in BA and $170.3 billion in 
     outlays over five years.
       The Senate resolution funds the National Aeronautics and 
     Space Administration (NASA) at $18.7 billion for 2010. This 
     level of funding recognizes the importance of our nation's 
     space program and endorses the agency's balanced goals of 
     exploration, science, and aeronautics. This level of funding 
     also reflects the vital role our space program plays in 
     driving scientific and technological advancements critical to 
     our economy.
       NASA currently intends to retire its Space Shuttles at the 
     end of 2010. The criteria for Shuttle retirement, however, 
     remains the completion of scheduled flights, and a fixed

[[Page 10769]]

     retirement date could create dangerous scheduling pressures. 
     Consequently, the Senate resolution recognizes the 
     possibility that currently planned Shuttle missions may 
     continue beyond the end of 2010, and provides $2.5 billion 
     above the President's request for 2011 with additional 
     resources for NASA in the outyears.
       Currently, NASA projects a five-year gap in U.S. human 
     space flight capability. During that gap the United States 
     will need to purchase space flight services from Russia, 
     costing in excess of $500 million. The Senate resolution 
     recognizes the strategic importance of uninterrupted access 
     to space and supports efforts to reduce or eliminate this 
     five-year gap in U.S. human space flight.
     House-passed Resolution
       The House resolution calls for a total of $31.1 billion in 
     BA and $32.5 billion in outlays for 2010, and for $166.1 
     billion in BA and $165.8 billion in outlays over five years.
       The House budget resolution total for this function equals 
     the level requested by the President for FY 2010, and for all 
     five years in the budget window. Funding for scientific 
     research and education is also included in Function 270 
     (Energy), Function 300 (Environment and Natural Resources), 
     Function 350 (Agriculture), Function 370 (Commerce and 
     Housing Credit), Function 400 (Transportation), Function 500 
     (Education, Training, Employment, and Social Services), and 
     Function 550 (Health). This funding will support the science 
     and technology goals of the House Leadership's Innovation 
     Agenda and the America COMPETES Act: to put NSF funding on a 
     path toward doubling, to train more qualified science and 
     math teachers, and to invest in basic research on energy 
     technologies.
     Conference Agreement
       The conference agreement includes $31.1 billion in BA and 
     $32.5 billion in outlays in 2010, and $168.7 billion in BA 
     and $168.5 billion in outlays over five years.
       The conference agreement provides additional resources 
     throughout the five year budget window, as requested by the 
     President, for COMPETES Act and other Innovation programs in 
     Function 250 as well as in other functions.
       The conference agreement recognizes the scientific and 
     technological contributions of our nation's manned and 
     unmanned space program and the strategic importance of 
     uninterrupted human access to space, and supports efforts to 
     reduce the impending gap in US human spaceflight. The 
     conference agreement matches the President's request for NASA 
     in 2010 (while acknowledging that an additional $400 million 
     was appropriated for NASA exploration in the 2009 American 
     Recovery and Reinvestment Act) and provides $2.5 billion 
     above the President's request in 2011. The additional funding 
     is provided in 2011 in anticipation that the funding is 
     needed for the remaining eight space shuttle missions to 
     safely fly and to complete the construction and equipping of 
     the international space station.

                          ENERGY: FUNCTION 270

     Function Summary
       Function 270 covers energy-related programs including 
     research and development, environmental clean-up, and rural 
     utility loans. Most of these programs are within the 
     Department of Energy (DOE). This function covers a portion of 
     the appropriated funding for DOE but does not include DOE's 
     national security activities, which are in Function 050 
     (National Defense), or its basic research and science 
     activities, which are in Function 250 (General Science, Space 
     and Technology). This function also includes the Department 
     of Agriculture's Rural Utilities Service, the Tennessee 
     Valley Authority, the Federal Energy Regulatory Commission, 
     and the Nuclear Regulatory Commission.
     Senate-passed Resolution
       The Senate resolution calls for a total of $4.5 billion in 
     BA and $6.2 billion in outlays for 2010, and $22.5 billion in 
     BA and $31.6 billion in outlays over five years.
       Our nation's economic and national security are directly 
     linked to our energy policy. We must confront the challenges 
     of global climate change and our nation's addiction to 
     foreign oil. By doing so, we can also create the green jobs 
     that will drive our nation's economic recovery. To meet these 
     challenges, President Obama and the Congress have responded 
     with a historic investment of resources in a strategy to 
     reduce our dependence on imported energy.
       The economic recovery package included $38.7 billion to 
     fund important energy priorities such as modernizing the 
     electric grid, renewable energy and transmission loan 
     guarantees, local government energy efficiency and 
     conservation grants, weatherization assistance, carbon 
     capture and sequestration technology, energy efficiency and 
     renewable energy research and development, and advanced 
     battery development. When the emergency funding provided in 
     the stimulus and other bills is included, overall funding for 
     the Department of Energy climbed from approximately $24 
     billion in 2008 to $73 billion in 2009. This $73 billion 2009 
     funding level represents the largest budget in the history of 
     the Department of Energy.
       The Senate resolution builds on the investments in the 
     economic recovery package by fully funding the President's 
     request for 2010 energy discretionary funding. The energy 
     funding level in the Senate resolution will provide increases 
     for the Energy Efficiency and Renewable Energy program. These 
     increases will accommodate investments in important 
     priorities such as wind, solar, geothermal, biomass and 
     biorefinery R&D, hydrogen, vehicle/building technologies and 
     the weatherization assistance program. The Senate resolution 
     supports increased funding for the Energy Efficiency and 
     Conservation Block Grant Program. The resolution also 
     includes increases to invest in the development of low carbon 
     coal technologies such as carbon capture and sequestration. 
     The resolution supports continued funding increases for the 
     Department of Energy's loan guarantee program.
       The Senate resolution would increase funding for 
     electricity delivery and energy reliability. The funding 
     increase could be used to modernize the electric grid, 
     enhance security and reliability of energy infrastructure, 
     and facilitate recovery from disruptions to energy supply.
       The Senate resolution supports the reclassification of 
     receipts for the annual operating expenses of Southeastern, 
     Southwestern, and Western Area Power Administrations (PMAs). 
     By reclassifying the receipts from mandatory to 
     discretionary, power rates will become more closely linked to 
     the annual appropriations they fund. This direct link will 
     promote long-term planning and improve the overall efficiency 
     and reliability of the Federal power program.
       The Senate resolution includes an energy reserve fund to 
     accommodate legislation that advances important priorities 
     such as reducing our Nation's dependence on imported energy, 
     producing green jobs, promoting renewable energy development, 
     improving electricity transmission, creating a clean energy 
     investment fund, and encouraging conservation and efficiency. 
     The legislation could also include energy tax proposals. This 
     reserve fund could be used for legislation such as a proposal 
     to extend the permissible term of power purchase agreements 
     used by federal agencies to acquire renewable energy. It 
     could also be used for a proposal to expand the economic 
     recovery package's investments in transmission infrastructure 
     and smart grid technology. Additionally, the reserve fund 
     could accommodate a proposal to create a Clean Energy 
     Investment Fund. That type of proposal could aid in the 
     transition to a low-carbon economy by using financing tools 
     such as direct loans and loan guarantees to invest in clean 
     energy technologies.
     House-passed Resolution
       The House resolution calls for a total of $5.5 billion in 
     BA and $7.3 billion in outlays for 2010, and for $29.1 
     billion in BA and $54.6 billion in outlays over five years. 
     The total BA level for 2010 reflects discretionary BA of $6.7 
     billion and mandatory BA of -$1.2 billion.
       The 2009 level of discretionary BA includes $39.4 billion 
     in emergency appropriations from the American Recovery and 
     Reinvestment Act and other legislation. The House resolution 
     for 2010 builds on this funding for renewable energy, energy 
     efficiency, emerging energy and vehicle technologies, and 
     other important investments to increase the United States' 
     energy independence and create new jobs. The House resolution 
     provides $1.0 billion (18.4 percent) more in appropriated 
     funding for 2010 than the 2009 level of regular 
     appropriations. The House resolution recognizes the 
     importance of continuing adequate funding for the 
     Weatherization Assistance Program, which helps lower-income 
     families to reduce their energy bills and increase the 
     comfort and safety of their homes.
       The House urges the Appropriations Committee to include 
     language in its appropriations bill to implement a ``net 
     zero'' policy for the annual expenses of the Power Marketing 
     Administrations (PMAs). The President's budget also supports 
     this proposal. Reclassifying these receipts would more 
     closely link the PMAs' annual appropriations with payments 
     from their customers.
     Conference Agreement
       The conference agreement provides a total of $5.0 billion 
     in BA and $6.3 billion in outlays for 2010, and $25.6 billion 
     in BA and $50.0 billion in outlays over five years. The 
     conference agreement provides $6.2 billion in 2010 for 
     discretionary programs in this function. This is $500 million 
     more than the President's proposed discretionary funding 
     level for 2010. (The total BA and outlay levels are lower 
     than the discretionary BA and outlay levels because this 
     function has negative mandatory BA and outlay levels, 
     reflecting the fact that the U.S. government collects more 
     money than it spends marketing federally produced power and 
     collects fees from commercial nuclear reactors.)
       The conference agreement includes a significant commitment 
     of resources to invest in emerging energy technologies, 
     promote renewable energy and energy efficiency, and reduce 
     our nation's dependence on imported energy. The conference 
     agreement includes deficit-neutral reserve funds to 
     accommodate energy legislation. Like the Senate-passed and 
     House-passed resolutions, the conference agreement supports 
     reclassifying the receipts of the Power Marketing 
     Administrations (PMAs) to more closely link the

[[Page 10770]]

     PMAs' annual appropriations with payments from their 
     customers.

            NATURAL RESOURCES AND ENVIRONMENT: FUNCTION 300

     Function Summary
       The Natural Resources and Environment function consists of 
     funding for water resources, conservation, land management, 
     pollution control and abatement, and recreational resources. 
     Major departments and agencies in this function are the 
     Department of the Interior (including the National Park 
     Service, the Bureau of Land Management, the Bureau of 
     Reclamation, the Fish and Wildlife Service, and the Minerals 
     Management Service), conservation-oriented and land 
     management agencies within the Department of Agriculture 
     (including the Forest Service), the National Oceanic and 
     Atmospheric Administration at the Department of Commerce, the 
     Army Corps of Engineers, and the Environmental Protection 
     Agency (EPA).
     Senate-passed Resolution
       The Senate resolution calls for a total of $37.7 billion in 
     BA and $40.7 billion in outlays for 2010, and $190.8 billion 
     in BA and $197.7 billion in outlays over five years.
       The Senate resolution recognizes that we have an obligation 
     to current and future generations to take meaningful action 
     to reduce greenhouse gas emissions. The resolution includes a 
     reserve fund to accommodate legislation that would invest in 
     clean energy technology initiatives, decrease greenhouse gas 
     emissions, or help families, workers, communities, and 
     businesses make the transition to a clean energy economy. The 
     resolution includes no specific assumptions regarding the 
     policy details of such a proposal. The details of the 
     proposal will be left to the committees of jurisdiction and 
     the legislative process.
       If climate change legislation brings new revenues into the 
     Treasury, the Senate resolution would support the President's 
     proposal to invest $15 billion per year in a variety of clean 
     energy technology initiatives. These initiatives would 
     accelerate the widespread deployment of energy efficient 
     technologies, increase our reliance on clean and renewable 
     energy sources, and move America forward on the path to 
     energy security.
       The Senate resolution fully funds the President's request 
     for the Environmental Protection Agency (EPA). The resolution 
     includes $3.9 billion for EPA's Clean Water and Drinking 
     Water State Revolving Funds. The overall EPA funding level 
     could accommodate significant increases for Superfund, the 
     brownfields program and a variety of other EPA programs. The 
     resolution would accommodate increases for water 
     infrastructure priorities at the Army Corps of Engineers and 
     the Bureau of Reclamation.
       The Senate resolution recognizes the importance of the 
     Bureau of Reclamation rural water program to support ongoing 
     Municipal, Rural, and Industrial (MR&I) systems for the Great 
     Plains Region. The Bureau of Reclamation supplies drinking 
     water to 2.6 million people in the Great Plains region and is 
     encouraged to prioritize the completion of the Pick Sloan-
     Missouri Basin Program--Garrison Diversion Unit, Mni Wiconi, 
     Lewis and Clark, Perkins County, Fort Peck Reservation/Dry 
     Prairie, and Rocky Boys/North Central rural water system 
     projects. The Senate resolution supports funding these vital 
     rural water development projects at a level that is as close 
     to $292 million as possible.
       The Senate resolution includes increases for the Army Corps 
     of Engineers and the Department of Interior which are 
     sufficient to fully fund ongoing Everglades Restoration 
     activities, including construction of authorized projects 
     contained in the Comprehensive Everglades Restoration Plan 
     and the Everglades National Park Expansion Act.
       The funding levels in the Senate resolution allow for 
     increases for the National Oceanic and Atmospheric 
     Administration (NOAA). In addition, the resolution includes a 
     reserve fund which would accommodate legislation to preserve 
     or protect oceans or coastal areas.
       The Senate resolution assumes increases for the Department 
     of the Interior and the Forest Service. The resolution also 
     includes the President's proposal to increase funding for 
     land acquisition programs. The Senate-passed resolution 
     includes a reserve fund which could be used for legislation 
     that preserves or protects public lands. This could include, 
     but is not limited to, legislation that protects national 
     parks, national monuments, wilderness areas, wild and scenic 
     rivers, and national recreation areas.
       The Senate resolution fully funds wildfire suppression 
     activities at the Forest Service and the Department of the 
     Interior. The resolution commends the President for taking 
     steps to budget for growing annual fire suppression costs. It 
     provides the 10-year average for fire suppression costs and 
     assumes that an additional $357 million will be provided if 
     appropriated funds are exhausted and the severity of the fire 
     season requires additional funding. The Senate resolution 
     also included increases in funding for hazardous fuel 
     reduction.
       The Senate resolution recognizes the need to address 
     significant and long-standing problems affecting the major 
     large scale aquatic, estuarine, and coastal ecosystems 
     nationwide. The Senate resolution includes funding for a new 
     interagency initiative to address such regional ecosystems. 
     It assumes the President's request of $475 million to work 
     with Great Lakes states, tribes, and local communities and 
     organizations to address issues prioritized in the Great 
     Lakes Regional Collaborative. This initiative could address 
     issues such as invasive species, non-point source pollution, 
     habitat restoration and contaminated sediment. The resolution 
     also supports the President's proposal to use outcome-
     oriented performance goals and measures to target the most 
     significant problems and track progress in addressing these 
     ecosystems.
     House-passed Resolution
       The House resolution calls for a total of $37.4 billion in 
     BA and $40.5 billion in outlays for 2010, and for $194.6 
     billion in BA and $200.5 billion in outlays over five years.
       The House budget resolution matches the President's total 
     discretionary funding request for this function, and provides 
     increased resources for programs such as the Land and Water 
     Conservation Fund, the EPA's Clean Water and Drinking Water 
     State Revolving Funds, and other EPA programs. The House 
     recognizes the need for maintaining and upgrading water 
     infrastructure in the Commonwealth of the Northern Mariana 
     Islands and other U.S. territories, and encourages relevant 
     federal agencies to work with territory governments on this 
     issue. The House resolution also allows for additional 
     funding for other programs at NOAA, the Department of the 
     Interior, and the Forest Service.
       For mandatory spending, the House resolution assumes levels 
     provided by current law.
       The House resolution includes a deficit-neutral reserve 
     fund that accommodates legislation to increase investments in 
     renewable energy and energy independence, encourage new 
     technological development, take steps to provide for 
     reductions in greenhouse gas emissions, and help families, 
     businesses, the environment and industries adapt to the new 
     energy economy.
     Conference Agreement
       The conference agreement includes a total of $37.6 billion 
     in BA and $40.6 billion in outlays for 2010, and $192.1 
     billion in BA and $198.5 billion in outlays over five years. 
     The conference agreement provides $35.3 billion in 2010 for 
     discretionary programs in this function. This is $200 million 
     more than the President's proposed discretionary funding 
     level for 2010.
       The conference agreement includes significant increases for 
     natural resources and environment programs, including a 
     variety of programs at the Environmental Protection Agency. 
     The agreement provides additional resources for agencies such 
     as the Army Corps of Engineers and the Bureau of Reclamation 
     to invest in national water infrastructure priorities. It 
     also increases funding for a number of other programs 
     throughout the Department of the Interior, the Forest 
     Service, and the National Oceanic and Atmospheric 
     Administration. The funding levels in the conference 
     agreement include the President's proposal to provide 
     additional funding for wildland fire suppression activities 
     at the Forest Service and the Department of the Interior. The 
     conference agreement could also accommodate increases in 
     funding for hazardous fuel reduction activities. The 
     conference agreement includes deficit-neutral reserve funds 
     which could be used for legislation to reduce greenhouse gas 
     emissions.

                       AGRICULTURE: FUNCTION 350

     Function Summary
       The Agriculture function includes farm income 
     stabilization, agricultural research, and other services 
     administered by the U.S. Department of Agriculture. The 
     discretionary programs include research and education 
     programs, economics and statistics services, administration 
     of the farm support programs, farm loan programs, meat and 
     poultry inspection, and a portion of the Public Law 480 
     international food aid program. The mandatory programs 
     include commodity programs, crop insurance, and certain farm 
     loans.
     Senate-passed Resolution
       The Senate resolution reflects a total of $23.6 billion in 
     BA and $23.9 billion in outlays for 2010, and $114.9 billion 
     in BA and $109.0 billion in outlays over five years. During 
     Committee consideration, an amendment was adopted assuming 
     $70 million in savings per year in crop insurance over the 
     next five years. The amendment dedicated $175 million for 
     child nutrition and $175 million for deficit reduction. 
     Besides these changes, the Senate resolution leaves all other 
     nutrition, conservation, renewable energy, and farm safety 
     net improvements included in the 2008 Farm Bill unchanged.
       Given our current fiscal situation, the Senate resolution 
     recognizes that all areas of the federal budget need to be 
     examined for savings. Even though the 2008 Farm Bill received 
     over 80 votes in the Senate and was fully paid for, the 
     Senate resolution would support targeted savings in 
     agriculture, including some savings in the Environmental 
     Quality Incentives Program and the federal crop insurance 
     program.
     House-passed Resolution
       The House resolution calls for a total of $23.7 billion in 
     BA and $24.0 billion in outlays

[[Page 10771]]

     for 2010, and for $115.7 billion in BA and $109.7 billion in 
     outlays over five years. The House resolution provides 
     resources for commodity support, agricultural research, and 
     the Animal and Plant Health Inspection Service, including 
     activities to support eradication of the Asian Longhorn 
     Beetle.
       For mandatory spending, the House resolution assumes levels 
     provided by current law. For discretionary programs, the 
     House resolution matches the levels in the President's 
     budget.
     Conference Agreement
       The conference agreement calls for a total of $23.7 billion 
     in BA and $24.0 billion in outlays for 2010, and for $115.6 
     billion in BA and $109.6 billion in outlays over five years. 
     For discretionary spending, the conference agreement assumes 
     $6.1 billion in BA and $6.2 billion in outlays for 2010. For 
     mandatory spending, the agreement matches CBO's baseline 
     estimate for March 2009 (assuming levels provided by current 
     law), leaving all of the nutrition, conservation, renewable 
     energy, and farm safety net improvements made in the 2008 
     Farm Bill unchanged.

               COMMERCE AND HOUSING CREDIT: FUNCTION 370

     Function Summary
       The Commerce and Housing Credit function includes mortgage 
     credit, the Postal Service, deposit insurance, and other 
     advancement of commerce (the majority of the discretionary 
     and mandatory spending in this function). The mortgage credit 
     component of this function includes housing assistance 
     through the Federal Housing Administration, the Federal 
     National Mortgage Association (Fannie Mae), the Federal Home 
     Loan Mortgage Corporation (Freddie Mac), the Government 
     National Mortgage Association (Ginnie Mae), and rural housing 
     programs of the Department of Agriculture. The function also 
     includes net Postal Service spending and spending for deposit 
     insurance activities of banks, thrifts, and credit unions. 
     Most of the Commerce Department is provided for in this 
     function, including the International Trade Administration, 
     the Bureau of Economic Analysis, the Patent and Trademark 
     Office, the National Institute of Standards and Technology, 
     the National Telecommunications and Information 
     Administration, and the Bureau of the Census. Finally, the 
     function also includes funding for independent agencies such 
     as the Securities and Exchange Commission, the Commodity 
     Futures Trading Commission, the Federal Trade Commission, the 
     Federal Communications Commission, and the majority of the 
     Small Business Administration.
     Senate-passed Resolution
       The Senate resolution calls for a total of $64.4 billion in 
     unified BA and $89.1 billion in unified outlays for 2010, and 
     $129.6 billion in unified BA and $139.8 billion in unified 
     outlays over five years. (The corresponding on-budget figures 
     are $61.1 billion in BA and $85.8 billion in outlays for 
     2010, and $124.3 billion in BA over five years and $134.6 
     billion in outlays over five years.) The Senate resolution 
     includes a deficit-neutral reserve fund that would allow for 
     additional investments in housing assistance, including low-
     income rental assistance and assistance provided through the 
     Affordable Housing Trust Fund. The Senate resolution provides 
     $880 million for the Small Business Administration and adopts 
     the Administration's budget level for the Manufacturing 
     Extension Program (MEP), which is authorized in the America 
     COMPETES Act.
     House-passed Resolution
       For the unified budget, the House resolution calls for a 
     total of $64.2 billion in BA and $88.9 billion in outlays for 
     2010, and for $130.4 billion in BA and $140.6 billion in 
     outlays over five years. (The budget resolution provides only 
     the on-budget amounts, which are $60.9 billion in BA and 
     $85.6 billion in outlays for 2010, and $125.1 billion in BA 
     and $135.3 billion in outlays over five years.)
       The discretionary function total for 2010 includes 
     significantly increased funding to ensure that the Bureau of 
     the Census has the necessary resources to hire workers and to 
     complete the 2010 Census. The 2010 total also fully accounts 
     for funding to support Federal Housing Administration (FHA) 
     and other mortgage credit programs in order to respond to the 
     current housing crisis.
       The House notes that the goal of the Treasury's Troubled 
     Assets Relief Program is to help stabilize credit and housing 
     markets, not to use eventual returns to support additional, 
     non-related spending. Proceeds from the sale of troubled 
     assets, repayments of loans, or other resulting revenues to 
     the Treasury from Federal assistance provided under the 
     Emergency Economic Stabilization Act of 2008, Public Law 110-
     343, should be available to reduce the Federal deficit and 
     the public debt.
     Conference Agreement
       For the unified budget, the conference agreement calls for 
     a total of $64.4 billion in BA and $89.0 billion in outlays 
     for 2010, and for $130.6 billion in BA and $140.8 billion in 
     outlays over five years. (The conference agreement provides 
     only the on-budget amounts, which are $61.1 billion in BA and 
     $85.8 billion in outlays for 2010, and $125.3 billion in BA 
     and $135.5 billion in outlays over five years.) The 
     discretionary function total includes significantly increased 
     funding for the Bureau of the Census, reflecting execution of 
     the 2010 census, and continues to support the Small Business 
     Administration and the Manufacturing Extension Program. The 
     2010 total also fully accounts for funding to support Federal 
     Housing Administration (FHA) and other mortgage credit 
     programs in order to respond to the current housing crisis.
       The conference agreement supports efforts to provide 
     additional investment in and oversight of housing assistance. 
     Both the Senate and the House include reserve funds that 
     allow for investments in the Affordable Housing Trust Fund. 
     The Senate economic stabilization reserve fund also allows 
     for additional investments in low-income rental assistance. 
     The conference agreement also supports efforts to increase 
     the capacity of HUD's Inspector General to investigate cases 
     of FHA loan fraud. The HUD Inspector General's office has not 
     expanded even as the number of FHA-approved lenders has 
     doubled over the past two years.
       The conference agreement notes that the goal of the 
     Treasury's Troubled Assets Relief Program is to help 
     stabilize credit and housing markets, not to use eventual 
     returns to support additional, non-related spending. Proceeds 
     from the sale of troubled assets, repayments of loans, or 
     other resulting revenues to the Treasury from Federal 
     assistance provided under the Emergency Economic 
     Stabilization Act of 2008, Public Law 110-343, should be 
     available to reduce the Federal deficit and the public debt.

                      TRANSPORTATION: FUNCTION 400

     Function Summary
       The Transportation function consists mostly of the programs 
     administered by the Department of Transportation, including 
     programs for highways, mass transit, aviation, and maritime 
     activities. This function also includes two components of the 
     Department of Homeland Security: the Coast Guard and the 
     Transportation Security Administration. In addition, this 
     function includes several small transportation-related 
     agencies and the research program for civilian aviation at 
     NASA.
     Senate-passed Resolution
       The Senate resolution calls for a total of $75.2 billion in 
     BA and $95.7 billion in outlays for 2010, and $377.8 billion 
     in BA and $477.0 billion in outlays over five years. The 
     Senate resolution includes an infrastructure reserve fund 
     that would be available for surface transportation programs 
     and multimodal transportation projects. The reserve fund 
     anticipates that future surface transportation investments 
     will be paid for and the solvency of the Highway Trust Fund 
     will be maintained for the length of the surface 
     transportation authorization. The Senate resolution 
     understands that the surface transportation reauthorization 
     will augment current investments, and provides funding levels 
     for highways, transit, and safety programs which will be 
     adjusted when a reauthorization bill is reported. The Senate 
     resolution does not adopt the administration's proposed 
     change to scoring of contract authority. The Senate 
     resolution continues the unprecedented commitment to high 
     speed rail made in the economic recovery package by providing 
     $1 billion for high speed rail in 2010.
     House-passed Resolution
       The House resolution calls for a total of $88.2 billion in 
     BA and $95.7 billion in outlays for 2010, and for $449.9 
     billion in BA and $481.0 billion in outlays over five years.
       The House budget resolution recognizes that transportation 
     programs are charged with helping to pull the economy out of 
     the recession. The American Recovery and Reinvestment Act 
     made significant investments in highway construction, mass 
     transit, passenger rail, and aviation. In addition, as the 
     Safe, Accountable, Flexible, Efficient Transportation Equity 
     Act: A Legacy for Users (SAFETEA-LU) expires, the House will 
     craft a new highway and transit bill for the 2010-2015 
     period.
       The House's task of reauthorizing highway construction 
     programs is made more difficult by a large set of current law 
     rescissions to contract authority, a form of mandatory budget 
     authority. Beginning in 2010, the House resolution restores 
     the mandatory baseline for the federal-aid highway program so 
     that its funding authority is in line with current 
     projections of obligation limitations. The House resolution 
     retains current scorekeeping practices for contract authority 
     programs.
       In order to address the highway and transit programs during 
     reauthorization, the House resolution includes a surface 
     transportation reserve fund that provides further increases 
     to highway and transit contract authority if the future 
     legislation maintains a solvent Highway Trust Fund.
       Finally, as a part of the reauthorization of the Federal 
     Aviation Administration, the House resolution accommodates 
     increases to the Airport Improvement Program (AIP).
     Conference Agreement
       The Conference agreement calls for a total of $88.2 billion 
     in BA and $95.7 billion in outlays for 2010, and $449.9 
     billion in BA and $481.0 billion in outlays over five years. 
     The conference agreement recognizes that this

[[Page 10772]]

     year's economic recovery package made significant investments 
     in highway construction, mass transit, passenger rail, and 
     aviation that will create badly needed jobs to help sustain 
     the recovery. The conference agreement recognizes that 
     continued investment in infrastructure programs is important 
     and includes House and Senate infrastructure reserve funds to 
     accommodate legislation to reauthorize surface transportation 
     programs and ensure the solvency of the Highway Trust Fund 
     for the length of the surface transportation authorization.
       The task of reauthorizing highway construction programs is 
     made more difficult by a large set of current law rescissions 
     to contract authority, a form of mandatory budget authority. 
     Beginning in 2010, the conference agreement restores the 
     mandatory baseline for the federal-aid highway program so 
     that its funding authority is in line with current 
     projections of obligation limitations. In the Senate, it will 
     not be in order for legislation that extends or reauthorizes 
     surface transportation bills to appropriate budget authority 
     for those programs outside of the Highway Trust Fund. The 
     conference agreement also does not adopt the administration's 
     proposed change to scoring of contract authority and does not 
     assume increases to fuel taxes.
       The Senate infrastructure reserve fund would also 
     accommodate legislation that makes additional investments in 
     multimodal transportation projects, passenger and freight 
     rail and could also accommodate legislation regarding the 
     Denali Commission, an independent federal agency focusing on 
     rural Alaskan communities.
       The conference agreement continues the unprecedented 
     commitment to high speed rail made in the economic recovery 
     package by providing $1 billion for high speed rail in 2010. 
     Finally, as a part of the reauthorization of the Federal 
     Aviation Administration, the conference agreement 
     accommodates increases to the Airport Improvement Program 
     (AIP).

            COMMUNITY AND REGIONAL DEVELOPMENT: FUNCTION 450

     Function Summary
       The Community and Regional Development function includes 
     federal programs to improve community economic conditions, 
     promote rural development, and assist in federal preparations 
     for and response to disasters. This function provides 
     appropriated funding for the Community Development Block 
     Grant, Department of Agriculture rural development programs, 
     the Bureau of Indian Affairs (BIA), the Federal Emergency 
     Management Agency (FEMA) (including homeland security 
     grants), and other disaster mitigation and community 
     development-related programs. It also provides mandatory 
     funding for the federal flood insurance program.
     Senate-passed Resolution
       The Senate resolution calls for a total of $16.3 billion in 
     BA and $28.9 billion in outlays for 2010, and $80.8 billion 
     in BA and $114.3 billion in outlays over five years.
       The Senate resolution recognizes the importance of 
     providing investments in our communities and protecting the 
     homeland. The Senate resolution includes increased funding 
     for the Community Development Block Grant (CDBG), the largest 
     source of federal grant assistance in support of state and 
     local government housing and community development efforts, 
     and for grants to local governments to revitalize closed 
     manufacturing plants. The Senate resolution also supports 
     funding for Department of Homeland Security grant programs 
     and BIA programs.
     House-passed Resolution
       The House resolution calls for a total of $18.3 billion in 
     BA and $29.3 billion in outlays for 2010, and for $103.3 
     billion in BA and $129.5 billion in outlays over five years.
       The House budget resolution provides increased funding to 
     accommodate urgent community development and homeland 
     security needs, which could include full funding for the 
     Community Development Block Grant (CDBG), similar to the 
     President's budget. Function 450 also accommodates funding 
     for a new National Infrastructure Bank, capitalized with 
     federal funds, to direct public and private dollars towards 
     infrastructure investments of national or regional 
     significance. However, because a National Infrastructure Bank 
     is not yet authorized, the House resolution includes initial 
     funding in 2010 and larger amounts over the 2011-2014 period.
     Conference Agreement
       The conference agreement includes a total of $18.3 billion 
     in BA and $29.3 billion in outlays for 2010, and $88.3 
     billion in BA and $122.7 billion in outlays over five years.
       The conference agreement provides increased funding levels 
     that will provide needed investments in our communities and 
     homeland security. The agreement provides increased funding, 
     which could include full funding for the Community 
     Development Block Grant (CDBG), and for grants to local 
     governments to revitalize closed manufacturing plants. The 
     conference agreement also includes $2.0 billion in 2010 and 
     $5.0 billion in 2011 for a National Infrastructure Bank, if 
     authorized, with an understanding that at least one quarter 
     of the funding would be targeted to rural areas. The 
     conference agreement also supports funding for Department of 
     Homeland Security grant programs and BIA programs.

   EDUCATION, TRAINING, EMPLOYMENT, AND SOCIAL SERVICES: FUNCTION 500

     Function Summary
       The Education, Training, Employment and Social Services 
     function includes funding for the Department of Education, as 
     well as programs in the Department of Health and Human 
     Services (HHS) and the Department of Labor. This function 
     provides funding for elementary and secondary, career and 
     technical, and post-secondary educational programs; job 
     training and employment services; children and family 
     services; and statistical analysis and research related to 
     these areas. It also contains funding for the Library of 
     Congress and independent research and arts agencies.
     Senate-passed Resolution
       The Senate resolution calls for a total of $94.4 billion in 
     BA and $140.6 billion in outlays for 2010, and $561.1 billion 
     in BA and $640.4 billion in outlays over five years.
       Building on the investments in education and training 
     provided in the economic recovery package, the Senate 
     resolution fully funds the President's request for education 
     and training programs over the five-year budget window. 
     Investments in education and training programs have sound 
     economic benefits and the Senate-passed resolution provides 
     Americans a complete and competitive education from cradle to 
     career.
       There is increasing evidence that investing in high quality 
     early childhood education programs, such as Head Start, is a 
     solid investment, yielding $10 in reduced social costs for 
     every dollar invested. Despite these benefits, many preschool 
     students do not have access to quality early education 
     programs. The Senate-passed resolution provides expanded 
     resources to invest in the long-term returns of early 
     education.
       Moreover, decreased federal funding for education has 
     implications at the state and local level. When the federal 
     government reduces its share of funding for the Individuals 
     with Disabilities Education Act, state and local governments 
     have to cut programs to cover the decreasing share of special 
     education.
       The Senate resolution calls for a significant investment to 
     build our human capital through programs targeting low-income 
     students, such as Title I, and for innovative and effective 
     strategies to reduce achievement gaps and improve student 
     learning in grade schools, middle schools, and high schools. 
     The competitive educational advantage we used to enjoy, 
     relative to other nations, has eroded significantly in recent 
     years.
       The Senate resolution proposes to reduce barriers to higher 
     education by including provisions that could accommodate the 
     President's student aid proposals, such as expanding Pell 
     grants. The President has challenged our students to commit 
     to at least one year of post-secondary study. However, many 
     low- and moderate-income high school graduates who are fully 
     prepared to go to college do not because of financial 
     barriers. Employers indicate that we are not producing enough 
     trained workers with the skills for the modern workplace, 
     particularly in high-growth sectors such as health care and 
     green energy technologies. Increasingly, these sectors 
     require some form of post-secondary education or job re-
     training.
       The Senate resolution recognizes that effective education 
     and training programs are necessary to restart U.S. economic 
     growth and allow our citizens to compete in the global 
     economy. It makes this effort a high priority. The Senate 
     resolution also provides the President's requested level for 
     the Corporation for National and Community Service to 
     encourage Americans to serve their community and country.
       The Senate resolution provides a deficit-neutral reserve 
     fund for higher education to facilitate enactment of 
     legislation to make college more accessible and affordable.
       The Senate resolution adopted three amendments to the 
     Higher Education reserve fund which would maintain a 
     competitive student loan program; facilitate expanded funding 
     for programs that provide need-based grants and community 
     work-study programs; and facilitate expanded funding for 
     programs that provide outreach to low-income students to 
     prepare for college. The Senate also adopted an amendment to 
     the Economic Stabilization and Growth reserve fund to provide 
     specialized training for workers in emerging industries. In 
     addition the Senate adopted an amendment to provide a reserve 
     fund for after-school programs.
     House-passed Resolution
       The House resolution calls for a total of $93.7 billion in 
     BA and $140.3 billion in outlays for 2010, and for $560.4 
     billion in BA and $639.6 billion in outlays over five years.
       The 2010 House resolution supports the President's 
     investments in education from early childhood through post-
     secondary education and training and shares the President's 
     goal of improving American education and creating a workforce 
     that is prepared to compete and succeed in the global 
     economy. The House resolution supports the President's plan 
     to make a new investment in

[[Page 10773]]

     early childhood education, improve student achievement in 
     elementary and secondary education through both proven 
     strategies and innovative approaches, and increase the number 
     of high school graduates that attend and complete higher 
     education by making college more affordable and accessible. 
     The House resolution also accommodates the President's 
     support for strong job training services that will prepare 
     Americans for stable and high-paying jobs.
       The 111th Congress has already made significant new 
     investments in education in the American Recovery and 
     Reinvestment Act, which provided about $100 billion that 
     states will use primarily to maintain elementary, secondary, 
     and higher education services. The American Recovery and 
     Reinvestment Act targeted significant funds to Title I 
     (Education for the Disadvantaged), Head Start, and special 
     education, where the funding can be used to train more 
     teachers to provide needed services in the future. The House 
     budget resolution builds upon that start by providing the 
     level of funding in the President's request for education, 
     job training, and social services for 2010.
       The House resolution's funding could support services that 
     will help students meet high standards and will provide 
     effective teachers and principals, including investments in 
     key programs such as Head Start and the Individuals with 
     Disabilities Education Act. It also could support the No 
     Child Left Behind Act programs that work to close the 
     achievement gap and ensure that all children learn, including 
     Impact Aid and after-school services. The funding could be 
     used as a down payment on a comprehensive literacy initiative 
     for the nation that encompasses early childhood, elementary, 
     and secondary education.
       This year Congress increased the maximum Pell Grant award 
     by $619--the largest annual increase for a program that helps 
     more than seven million students pay for college. The House 
     resolution provides discretionary funding to support the 
     President's Pell grant increase for 2010. Going forward, the 
     House resolution could accommodate the President's proposals 
     to provide additional assistance to help more low-income high 
     school graduates attend and complete college, provided they 
     are enacted in a fiscally responsible way. Further assistance 
     could include expanding access to Historically Black Colleges 
     and Universities as well as Hispanic-serving institutions and 
     other minority-serving institutions, which continue to make 
     important contributions towards increasing the percentage of 
     minority students gaining a college degree.
       The House urges the Committee on Education and Labor to 
     review options for the student loan program that will 
     maintain a role for FFELP lenders in the student loan 
     program, and to look to ways to achieve savings that 
     capitalize on current infrastructure and minimize the 
     disruption to students and the employees of FFELP lenders who 
     currently serve 75 percent of loans at American colleges, 
     universities, and community colleges.
       The House resolution continues to support two-year advance 
     funding for the Corporation for Public Broadcasting, and 
     recognizes that public television and radio stations are 
     experiencing financial distress as a result of the recession.
       The House resolution contains a reserve fund to accommodate 
     legislation that makes college more affordable, consistent 
     with the House pay-as-you-go rule. It also contains fiscally 
     responsible reconciliation instructions directing the 
     Committee on Education and Labor to report a bill that 
     invests in education while reducing the deficit by $1 billion 
     over the 2009-2014 period.
     Conference Agreement
       The conference agreement calls for a total of $94.4 billion 
     in BA and $140.6 billion in outlays for 2010, and for $561.1 
     billion in BA and $640.4 billion in outlays over five years.
       The conference agreement recognizes the importance of 
     investing in education and training programs to build a 
     highly skilled workforce that can compete in the global 
     marketplace and provides the President's requested level for 
     education, training and social service programs in every year 
     over the five-year budget window. The increased funding will 
     assist Americans from cradle to career with job training 
     programs, access to higher education through Pell grants and 
     state programs targeted to low-income students, elementary 
     and secondary education programs such as Title I and IDEA, 
     and expanded resources for Head Start and other early 
     education programs.
       The conference agreement contains deficit-neutral reserve 
     funds for higher education legislation in both the House and 
     Senate. It also includes a Senate reserve fund for 21st 
     Century Learning Centers.
       The conference agreement includes a Sense of Congress 
     provision on college affordability and student loan reform 
     that reaffirms the importance of the student aid services 
     provided by both non-profit and for-profit entities in the 
     student loan program, as well as the employment they provide 
     across the country.

                          HEALTH: FUNCTION 550

     Function Summary
       The Health function includes most direct health care 
     service programs as well as funding for anti-bioterrorism 
     activities, national biomedical research, protecting the 
     health of the general population and workers in their places 
     of employment, providing health services for under-served 
     populations, and promoting training for the health care 
     workforce. The major programs in this function include 
     Medicaid, the State Children's Health Insurance Program 
     (SCHIP), health benefits for federal workers and retirees, 
     the National Institutes of Health (NIH), the Food and Drug 
     Administration (FDA), the Health Resources and Services 
     Administration (HRSA), the Centers for Disease Control and 
     Prevention (CDC), the Substance Abuse and Mental Health 
     Services Administration (SAMHSA), the Indian Health Service 
     (IHS), and the Agency for Healthcare Research and Quality.
     Senate-passed Resolution
       The Senate resolution calls for a total of $385.4 billion 
     in BA and $389.2 billion in outlays for 2010, and for $1.9 
     trillion in BA and outlays over five years.
       The Senate resolution includes increased funding above the 
     2010 baseline level consistent with the President's health 
     priorities for NIH, HRSA, CDC, IHS, and FDA. Significant 
     increases for Community Health Centers, health professions, 
     and the National Health Service Corps within HRSA are also 
     included. Increases above the President's request are also 
     included for the Maternal and Child Health Block Grant, the 
     organ transplantation program, and several other programs.
       In addition, the Senate resolution contains several health 
     care related deficit-neutral reserve funds, including reserve 
     funds for health care reform legislation and for improvements 
     at the FDA.
     House-passed Resolution
       The House resolution calls for a total of $383.9 billion in 
     BA and $388.7 billion in outlays for 2010, and for $1.9 
     trillion in BA and outlays over five years.
       The discretionary resources for Function 550 for 2010 match 
     the President's 2010 request and increase funding over the 
     2010 baseline level, enabling support of the President's 
     priorities for cancer research, food safety, and other 
     important programs. The House resolution provides critical 
     resources for public health, which includes programs focused 
     on addressing health promotion and disease prevention. 
     Preventative health care measures and disease management have 
     the potential to lead to more efficient use of health care 
     spending, and reduced illness, as well as an improvement in 
     the health of the public.
       Programs in Function 550 are also addressed in the House 
     resolution's deficit-neutral reserve funds for health care 
     reform and the 9/11 health program.
     Conference Agreement
       The conference agreement includes a total of $384.3 billion 
     in BA and $388.9 billion in outlays for 2010, and $1.9 
     trillion in BA and outlays over five years.
       Discretionary funding levels for Function 550 include 
     increased funding above the 2010 baseline level consistent 
     with the President's health priorities for NIH, HRSA, CDC, 
     IHS, and FDA. In addition, the conference agreement assumes 
     significant increases for Community Health Centers, health 
     professions, and the National Health Service Corps within 
     HRSA as well as food safety efforts at FDA. Increases are 
     also included for the Maternal and Child Health Block Grant 
     and the organ transplantation program as well as additional 
     funding for IHS to help meet the needs of American Indians 
     and Alaska Natives.
       The conference agreement provides critical resources for 
     public health, which includes programs focused on addressing 
     health promotion and disease prevention. Preventative health 
     care measures and disease management have the potential to 
     lead to more efficient use of health care spending, and 
     reduced illness, as well as an improvement in the health of 
     the public.
       In addition, programs in Function 550 are also addressed in 
     several health care related deficit-neutral reserve funds, 
     including a reserve fund for health care reform legislation.

                         MEDICARE: FUNCTION 570

     Function Summary
       The Medicare function includes funding to administer and to 
     provide benefits under the Medicare program. Medicare is a 
     federal health insurance program that currently covers 45 
     million Americans aged 65 and older, as well as younger 
     adults who are disabled or suffer from end-stage renal 
     disease.
       Congress provides an annual appropriation for the costs of 
     administering Medicare, including resources to conduct 
     program integrity activities to guard against improper 
     payments, fraud, and abuse. The remainder of spending in this 
     function is mandatory and reflects payments to health care 
     providers and private insurance plans, as well as beneficiary 
     premiums and other receipts and payments to the Medicare 
     trust funds, under the Part A Hospital Insurance (HI) 
     program, the Part B Supplementary Medical Insurance (SMI) 
     program, the Part C Medicare Advantage program, and the Part 
     D Prescription Drug program.
     Senate-passed Resolution
       The Senate resolution calls for a total of $442.8 billion 
     in BA and $443.0 billion in outlays for 2010, and $2.6 
     trillion in BA and $2.6

[[Page 10774]]

     trillion in outlays over five years. The mandatory spending 
     levels in the Senate resolution are at the CBO baseline level 
     in all years covered by the resolution. In addition, the 
     Senate resolution includes a deficit-neutral reserve fund in 
     Sec. 201(b) for legislation that increases the reimbursement 
     rate for Medicare physician services (and overrides a large 
     payment rate cut that would otherwise go into effect on 
     January 1, 2010) and addresses other Medicare benefit and 
     payment issues. In addition, the Senate resolution also 
     contemplates Medicare physician payment reform as a component 
     of comprehensive health reform and subject to the flexibility 
     of the reserve fund in Sec. 201(a).
       The discretionary spending levels in the Senate resolution 
     assume $25 million over the period 2010 to 2012 to begin 
     addressing the administrative costs associated with 
     legislation that would reduce the potential for identity 
     theft by requiring the Centers for Medicare and Medicaid 
     Services to remove Social Security numbers from Medicare 
     cards.
       For 2010, the discretionary funding levels in this function 
     include a discretionary cap adjustment of up to $311 million 
     for program integrity activities of the Health Care Fraud and 
     Abuse Control (HCFAC program) to address improper payments, 
     fraud, and abuse in the Medicare program.
     House-passed Resolution
       The House resolution calls for a total of $449.7 billion in 
     BA and $449.8 billion in outlays for 2010, and for $2.6 
     trillion in BA and outlays over five years.
       The House budget resolution function level for Medicare 
     assumes that the payment rates in effect for physicians for 
     2009 will stay in effect through 2019. This assumption is 
     consistent with the President's budget and is based on 
     Congressional actions in recent years to prevent cuts in 
     physician payments that would otherwise be required by the 
     Sustainable Growth Rate formula. However, like the 
     President's budget, the House budget resolution does not 
     intend this assumption as a reflection of future policy. 
     Instead, the assumption represents a realistic and meaningful 
     benchmark against which to measure the fiscal effects of 
     legislation reforming the Medicare physician payment system. 
     The House resolution includes a reserve fund (Sec. 314) to 
     accommodate legislation for improvements in Medicare's system 
     for paying physicians.
       The House resolution provides a discretionary cap 
     adjustment of $311 million for additional activities aimed at 
     detecting and preventing Medicare fraud and other improper 
     payments. The Health Care Fraud and Abuse Control program is 
     a joint effort of the Department of Health and Human 
     Services, the HHS Office of the Inspector General, and the 
     Department of Justice.
     Conference Agreement
       The conference agreement reflects a total of $449.7 billion 
     in BA and $449.8 billion in outlays in 2010, and $2.6 
     trillion in BA and $2.6 trillion in outlays over five years.
       For 2010, the discretionary spending levels in this 
     function are $5 million above the President's request. Over 
     five years, the discretionary funding in this function 
     assumes $25 million to begin addressing the administrative 
     costs associated with legislation that would reduce the 
     potential for identity theft by requiring the Centers for 
     Medicare and Medicaid Services to remove Social Security 
     numbers from Medicare cards.
       The mandatory spending levels in this function assume $38 
     billion above the CBO baseline level, which reflects Medicare 
     payment rates in effect for physicians for 2009 staying in 
     effect through 2010, 2011, and at least part of 2012. 
     However, the conference agreement does not intend this 
     assumption as a reflection of future policy. In the Senate, 
     legislation that would freeze physician payments at current 
     levels, provide a positive update for physician payments, or 
     reform the Medicare physician payment system, whether on a 
     temporary or permanent basis, must be compliant with Sec. 
     301(a) or Sec. 301(b) in this conference agreement. In the 
     House, Sec. 421 of the conference agreement allows the 
     chairman of the Budget Committee to treat the additional $38 
     billion as a current policy adjustment before evaluating the 
     costs of legislation affecting Medicare physician payments 
     for compliance with House budget rules and procedures, 
     assuming the condition stated in that section is met.
       The conference agreement includes a Senate reserve fund 
     (Sec. 301) and a House reserve fund (Sec. 321) to accommodate 
     comprehensive health reform legislation and related 
     provisions, including legislation for improvements in 
     Medicare's system for paying physicians.

                     INCOME SECURITY: FUNCTION 600

     Function Summary
       The Income Security function contains a range of income 
     security programs including: (1) major cash and in-kind 
     means-tested entitlements; (2) general retirement, 
     disability, and pension programs excluding Social Security 
     and veterans' compensation programs; (3) federal and military 
     retirement programs; (4) unemployment compensation; (5) low-
     income housing programs; and (6) other low-income support 
     programs. Major federal entitlement programs in this function 
     include unemployment insurance, food stamps, child nutrition, 
     Temporary Assistance to Needy Families (TANF), foster care, 
     child support enforcement, child care, Supplemental Security 
     Income, and spending for the refundable portion of the Earned 
     Income Credit.
     Senate-passed Resolution
       The Senate resolution calls for a total of $536.6 billion 
     in BA and $539.9 billion in outlays for 2010, and for $2.4 
     trillion in BA and outlays over five years.
       The resolution provides increased funding for the Low-
     Income Home Energy Assistance Program. These funds for LIHEAP 
     will help to continue providing heating and cooling 
     assistance to over five million low-income households, 
     including the working poor, disabled persons, elderly, and 
     families with young children. The Senate resolution continues 
     to support funding for the Public Housing Capital Fund, Hope 
     VI Distressed Housing Program, Housing for the Disabled, 
     Housing for the Elderly, and the Section 8 tenant-based 
     Housing Choice Voucher program and the project-based Section 
     8 program. The resolution includes increases for the Special 
     Supplemental Nutrition Program for Women, Infants, and 
     Children (WIC).
       In addition, the Senate resolution includes deficit-neutral 
     reserve funds for improvements to child welfare, child 
     support enforcement, foster care financing, and LIHEAP, as 
     well as for the reauthorization of the child nutrition and 
     WIC programs, and for establishing or expanding early 
     childhood home visitation programs.
     House-passed Resolution
       The House resolution calls for a total of $536.2 billion in 
     BA and $539.9 billion in outlays for 2010, and for $2.5 
     trillion in BA and outlays over five years.
       The House budget resolution matches the President's 
     increase in discretionary funding for Function 600 in order 
     to invest in children and meet urgent needs of low-income 
     families and elderly and disabled people in difficult 
     economic times. These resources will build upon the recently 
     enacted American Recovery and Reinvestment Act, which 
     provided increases in mandatory and discretionary funding for 
     child care, child support, and assistance to needy families.
       The House shares the President's commitment to ending 
     childhood hunger in the United States by 2015, and funding to 
     move toward that goal is provided here. The House resolution 
     accommodates continued economically-driven increases in 
     participation in the Special Supplemental Nutrition Program 
     for Women, Infants, and Children (WIC), which is currently 
     projected to have 9.8 million participants in 2010. The House 
     resolution also includes a deficit-neutral reserve fund and 
     additional funding to accommodate a reauthorization of child 
     nutrition programs that will improve meal quality and access.
       The House resolution provides the necessary funding to 
     continue rental housing assistance to families, elderly, and 
     disabled people who rely on assistance from the Department of 
     Housing and Urban Development (HUD). The House also 
     recognizes the unmet need for affordable housing, both by 
     including a deficit-neutral reserve fund for the Affordable 
     Housing Trust Fund, and by providing additional discretionary 
     resources for affordable housing preservation.
       The House resolution also accommodates the President's 
     proposal to make the Low-income Home Energy Assistance 
     Program (LIHEAP) more quickly responsive to rising energy 
     costs, coupled with an increase in regular discretionary 
     funding to allow the program to reach families in need.
       In addition to the policies mentioned above, mandatory 
     programs in Function 600 are also addressed in deficit-
     neutral reserve funds for home visiting, structural reform of 
     extended unemployment benefits, and child support.
     Conference Agreement
       The conference agreement includes a total of $536.7 billion 
     in BA and $540.2 billion in outlays for 2010, and $2.4 
     trillion in BA and outlays over five years.
       The conference agreement provides discretionary funding 
     increases consistent with President's budget request for 
     Function 600 in order to invest in children and meet urgent 
     needs of low-income families and elderly and disabled people. 
     The conference agreement supports the President's request of 
     $3.2 billion for LIHEAP in 2010. However the agreement also 
     includes a discretionary cap adjustment for an additional 
     $1.9 billion, for a total LIHEAP funding level of $5.1 
     billion if the President's funding level of $3.2 billion is 
     included in an appropriations measure. These funds for LIHEAP 
     will help to continue providing heating and cooling 
     assistance to over five million low-income households, 
     including the working poor, disabled persons, elderly, and 
     families with young children.
       The conference agreement accommodates funding for increases 
     in participation in the Special Supplemental Nutrition 
     Program for Women, Infants, and Children (WIC), which is 
     currently projected to have 9.8 million participants in 2010. 
     The conference agreement also continues to support funding 
     for important housing assistance programs for low-income 
     families, the elderly, and the disabled.

[[Page 10775]]

       In addition, the conference agreement includes deficit-
     neutral reserve funds for improvements to child welfare, 
     child support enforcement, foster care financing, and LIHEAP, 
     as well as for the reauthorization of the child nutrition and 
     WIC programs to help meet the President's goal of ending 
     childhood hunger in the United States, and for establishing 
     or expanding home visitation programs.

                     SOCIAL SECURITY: FUNCTION 650

     Function Summary
       The Social Security function includes funding for the Old-
     Age, Survivors, and Disability Insurance (OASDI) programs, 
     which provide earned Social Security benefits to over 52 
     million eligible retired workers, disabled persons, and their 
     spouses and survivors. In addition, this function provides 
     funding to the Social Security Administration (SSA) and the 
     Office of the Inspector General (OIG) to administer the 
     Social Security program and ensure program integrity.
       Under provisions of the Congressional Budget Act and the 
     Budget Enforcement Act, the Old-Age and Survivors Insurance 
     (OASI) trust fund and the Disability Insurance (DI) trust 
     fund are off-budget and do not appear in the budget 
     resolution totals. A small portion of spending in Function 
     650, the general fund transfer of income taxes on Social 
     Security benefits to the trust funds and outlays resulting 
     from funding authorized in the American Recovery and 
     Reinvestment Act of 2009, is considered on-budget and appears 
     in the budget resolution totals.
     Senate-passed Resolution
       The Senate resolution calls for $20.3 billion in on-budget 
     BA and $20.4 billion in on-budget outlays for 2010, and 
     $132.4 billion in on-budget BA and $132.9 billion in on-
     budget outlays over five years. (The corresponding figures on 
     a unified basis are $703.4 billion in BA and $701.4 billion 
     in outlays for 2010 and $3.8 trillion in BA and outlays over 
     five years.) This spending reflects the general fund transfer 
     of income taxes on Social Security benefits to the trust 
     funds and the outlay effect of funding for the Social 
     Security Administration (SSA) that was authorized in the 
     American Recovery and Reinvestment Act of 2009.
       For 2010, the Senate resolution provides $6.1 billion in BA 
     and $5.9 billion in off-budget discretionary outlays for SSA 
     administrative expenses, as outlined in section 102(c) of the 
     resolution, which matches the President's budget request. 
     When combined with funding resources in Function 570 
     (Medicare) and Function 600 (Income Security), the total 
     administrative budget for SSA assumed in the Senate 
     resolution is $11.6 billion. This substantial increase over 
     the FY09 level is intended to help address the serious and 
     unacceptable backlog of Social Security disability claims and 
     hearings, as well as other backlog workloads for which 
     additional resources are needed.
       The discretionary funding levels in the Senate resolution 
     assume a discretionary cap adjustment of $485 million to fund 
     additional continuing disability reviews and Supplemental 
     Security Income redeterminations, if appropriators provide a 
     base funding level for these program integrity initiatives of 
     $273 million.
     House-passed Resolution
       For the unified budget, the House resolution calls for a 
     total of $703.4 billion in BA and $701.4 billion in outlays 
     for 2010, and for $3.8 trillion in BA and outlays over five 
     years. (The budget resolution provides only the on-budget 
     amounts, which are $20.3 billion in BA and $20.4 billion in 
     outlays for 2010, and $132.4 billion in BA and $132.9 billion 
     in outlays over five years.)
       The administrative budget for the SSA includes resources in 
     Function 570 (Medicare) and Function 600 (Income Security) as 
     well as Function 650. The House resolution assumes an $11.6 
     billion funding level for the administrative expenses at the 
     SSA, the same as the President's budget level. The increased 
     resources will enable SSA to address the rising number of 
     disability and retirement claims, as well as address the 
     serious backlog of disability claims and hearings and provide 
     for improved service to the American public.
       Included in the total funding level above are resources to 
     accommodate $485 million through an adjustment of the 
     discretionary allocation for program integrity initiatives. 
     The adjustment allows the SSA to conduct an increasing number 
     of Continuing Disability Reviews (CDRs) and Supplemental 
     Security Income (SSI) redeterminations. The language also 
     allows funding of up to $34 million of the $485 million 
     allocation adjustment to be used for asset verification for 
     SSI recipients, but only if it has a return on investment at 
     least as high as a low-priority SSI redetermination of 
     eligibility, at a 4:1 return.
     Conference Agreement
       For the unified budget, the conference agreement calls for 
     $703.4 billion in BA and $701.4 billion in outlays for 2010, 
     and $3.8 trillion in BA and outlays over five years. (The 
     conference agreement provides only the on-budget amounts, 
     which are $20.3 billion in BA and $20.4 billion in outlays 
     for 2010, and $132.4 billion in BA and $132.9 billion in 
     outlays over five years.)
       For 2010, the conference agreement provides total net 
     discretionary resources for the administrative expenses of 
     SSA (across all relevant functions) of $11.6 billion, meeting 
     the President's requested level. The total SSA funding level 
     in the conference agreement assumes the President's full 
     request for a cap adjustment for program integrity efforts 
     (including CDRs, SSI redeterminations and SSI asset 
     verification). It also reflects the President's full request 
     for more resources to address the serious backlog of 
     disability claims and hearings, as well as other backlog 
     workloads for which additional resources are needed.

              VETERANS BENEFITS AND SERVICES: FUNCTION 700

     Function Summary
       Function 700 covers the programs of the Department of 
     Veterans Affairs (VA), including veterans' medical care, 
     compensation and pensions, education and rehabilitation 
     benefits, and housing programs. It also includes the 
     Department of Labor's Veterans' Employment and Training 
     Service, the United States Court of Appeals for Veterans 
     Claims, and the American Battle Monuments Commission. More 
     than 99 percent of appropriated veterans' funding goes to VA, 
     and more than 85 percent of this funding is for VA medical 
     care and hospital services.
     Senate-passed Resolution
       The Senate resolution calls for a total of $106.5 billion 
     in BA and $105.6 billion in outlays for 2010, and $557.6 
     billion in BA and $554.5 billion in outlays over five years. 
     The Senate resolution provides a $5.6 billion increase for 
     the VA in 2010, and continues that commitment by increasing 
     funding for the VA by $27 billion over the next five years. 
     The Senate resolution also provides additional resources to 
     the VA so that veterans' insurance need not be billed for 
     service-connected VA care and for increased beneficiary 
     travel reimbursement. Once again, the Senate resolution 
     recognizes the deep debt our nation owes to those who have 
     served in defending our country and continues to provide 
     critical resources to ensure that they get the quality health 
     care they deserve.
       In addition, the Senate resolution understands that there 
     is an urgent need for funding of grants for State Veterans 
     Cemeteries with the aging of the WWII generation. 
     Unfortunately, funding levels have not kept up with need. 
     Therefore, the Senate resolution supports adequate funding 
     that can address the costs of constructing new cemeteries as 
     well as the needs of existing State Veterans Cemeteries.
     House-passed Resolution
       The House resolution calls for a total of $106.4 billion in 
     BA and $105.5 billion in outlays for 2010, and for $557.7 
     billion in BA and $554.6 billion in outlays over five years. 
     The total BA level for 2010 includes discretionary BA of 
     $53.3 billion.
       The 2009 level of discretionary BA includes $1.6 billion in 
     emergency appropriations from the American Recovery and 
     Reinvestment Act and other legislation. For 2010, the House 
     resolution provides $5.5 billion (11.5 percent) more 
     discretionary BA than the 2009 level (excluding emergency 
     funding) and $540 million (1.0 percent) more than the 
     President's 2010 budget.
       The House resolution emphasizes the high priority that the 
     House places on continuing to provide sufficient and timely 
     funding for veterans' health care. The House resolution 
     provides full funding to support excellent health care for 
     veterans. It includes funding to restore health care 
     eligibility to additional non-disabled veterans with modest 
     incomes (Priority Group 8), consistent with the President's 
     budget. In addition, the House resolution provides funding 
     above the 2009 levels for VA to research and treat mental 
     health, post-traumatic stress disorder (PTSD), and traumatic 
     brain injury. In particular, the House resolution recognizes 
     the importance of ensuring adequate funding for 
     neuropsychiatric-PTSD staff and research.
       The House resolution affirms that VA is not and should not 
     be authorized to bill private insurance companies for 
     treatment of health conditions that are related to veterans' 
     military service. VA already is authorized to bill such 
     companies for treatment of conditions that are not service-
     connected. The House resolution adds $540 million to the 
     President's strong budget for veterans to safeguard the 
     provision of health care if, using existing authorities, VA 
     does not realize the level of increase in these medical care 
     collections that is estimated in the President's budget.
     Conference Agreement
       The conference agreement calls for a total of $106.5 
     billion in BA and $105.6 billion in outlays for 2010, and 
     $558.4 billion in BA and $555.3 billion in outlays over five 
     years. The conference agreement provides an 11.7 percent 
     increase for discretionary BA for veterans' health care and 
     other services (excluding emergency funding), and continues 
     that commitment by increasing discretionary funding for the 
     Department of Veterans Affairs (VA) and related agencies by 
     more than $27 billion over the next five years. The decrease 
     in mandatory BA and outlays between 2011 and 2012 reflects 
     the timing of monthly benefit payments--primarily, disability 
     compensation and pensions--in any given fiscal year. It is 
     not the result of any reduction in

[[Page 10776]]

     benefits. As a result, 2011 includes 13 benefit payment 
     dates, while 2012 contains only 11 benefit payment dates.
       The conference agreement includes funding to restore health 
     care eligibility to additional non-disabled veterans with 
     modest incomes (Priority Group 8), consistent with the 
     President's budget. In addition, the agreement provides 
     funding above the 2009 levels for VA to research and treat 
     mental health, post-traumatic stress disorder, and traumatic 
     brain injury. The conference agreement supports increasing 
     the number of healthcare professionals in the Veterans Health 
     Administration (VHA) to meet the needs of the expanding 
     number of veterans and to fill vacant healthcare professional 
     positions at VHA. The conference agreement supports enhanced 
     incentives for healthcare professionals of the VHA who serve 
     in rural areas and increases to veterans beneficiary travel 
     reimbursement. The conference agreement also provides 
     additional resources to the VA so that veterans' private 
     insurance need not be billed for service-connected VA care, 
     and the agreement affirms that VA is not and should not be 
     authorized to bill private insurance companies for treatment 
     of health conditions that are related to veterans' military 
     service.
       In addition, the conference agreement recognizes that there 
     is an urgent need to open new national and State Veterans 
     Cemeteries with the aging of the WWII generation. 
     Unfortunately, funding levels for grants for State Veterans 
     Cemeteries have not kept up with the need. Therefore, the 
     conference agreement supports adequate funding that can 
     address the costs of constructing new cemeteries as well as 
     the needs of existing State Veterans Cemeteries.
       Sections 402 and 424 of the conference agreement include 
     language exempting the following VA accounts from a point of 
     order against advance appropriations: Medical Services, 
     Medical Support and Compliance, and Medical Facilities.

                ADMINISTRATION OF JUSTICE: FUNCTION 750

     Function Summary
       The Administration of Justice function includes funding for 
     federal law enforcement activities at the Department of 
     Justice (DOJ) including criminal investigations by the 
     Federal Bureau of Investigation (FBI) and the Drug 
     Enforcement Agency (DEA). The function also includes funding 
     for border enforcement by the Department of Homeland Security 
     (DHS). Additionally, the function includes funding for civil 
     rights enforcement and prosecution; federal block, 
     categorical, and formula law enforcement grant programs to 
     state and local governments; prison construction and 
     operation; the United States Attorneys; and the federal 
     judiciary.
     Senate-passed Resolution
       The Senate resolution calls for a total of $53.5 billion in 
     BA and $52.1 billion in outlays for 2010, and for $260.6 
     billion in BA and $264.4 billion in outlays over five years.
       The Senate resolution recognizes the important role the 
     partnership between federal, state, and local law enforcement 
     entities plays in maintaining safe communities. For example, 
     the Community Oriented Policing Service (COPS) grant program 
     provides funding that is critical in many urban and rural 
     areas in maintaining police presence, carrying out criminal 
     investigations, combating methamphetamine, and in training 
     and equipping law enforcement officers. This and other 
     support for local law enforcement remain a priority.
       The Senate resolution includes funding to protect children 
     by funding Adam Walsh Child Protection and Safety Act 
     programs. The Senate resolution also provides resources to 
     support the Administration's efforts to combat drug, gun, and 
     cash smuggling by cartels and for addressing potential 
     spillover violence along the Southern border.
     House-passed Resolution
       The House resolution calls for a total of $52.9 billion in 
     BA and $51.6 billion in outlays for 2010, and for $268.3 
     billion in BA and $271.2 billion in outlays over five years.
       The House budget resolution provides significant resources 
     for our federal and local law enforcement programs, matching 
     the level in the President's budget. The House resolution 
     provides increased funding for the Federal Bureau of 
     Investigation (FBI) as it meets the country's domestic crime 
     fighting, financial fraud investigation, and national 
     security needs. In addition, the House resolution supports 
     the Department of Justice's programs and initiatives that 
     hire and equip police officers, combat drugs, protect 
     juveniles, and that provide other important services to our 
     communities. For example, the Community Oriented Policing 
     Services (COPS) program includes hiring grants for new police 
     officers, the Edward Byrne Memorial Justice Assistance Grant 
     (Byrne JAG) provides flexible resources to our communities to 
     meet a variety of their criminal justice needs, and the State 
     Criminal Alien Assistance Program (SCAAP) reimburses states 
     and localities for their incarceration costs--and the House 
     resolution recognizes the importance of these and other 
     programs.
     Conference Agreement
       The conference agreement calls for a total of $53.4 billion 
     in BA and $52.0 billion in outlays for 2010, and for $268.8 
     billion BA and $271.7 billion in outlays over five years. The 
     conference agreement provides significant resources for 
     federal and local law enforcement programs. The conference 
     agreement provides increased funding for the Federal Bureau 
     of Investigation (FBI) as it meets the country's domestic 
     crime fighting, financial fraud investigation, and national 
     security needs.
       The conference agreement supports the Department of 
     Justice's programs and initiatives that hire and equip police 
     officers and that provide other important services to our 
     communities. For example, the conference agreement supports 
     drug control efforts in urban and rural areas by including 
     funding for High Intensity Drug Areas (HIDTA) programs and 
     drug interdiction efforts carried out by both the Departments 
     of Justice and Homeland Security. In addition, the Community 
     Oriented Policing Services (COPS) program includes hiring 
     grants and grants to combat methamphetamine, the Edward Byrne 
     Memorial Justice Assistance Grant (Byrne JAG) provides 
     flexible resources to our communities to meet a variety of 
     their criminal justice needs, the State Criminal Alien 
     Assistance Program (SCAAP) reimburses states and localities 
     for their incarceration costs, and Adam Walsh Child 
     Protection and Safety Act programs prevents crimes against 
     children.
       The conference agreement includes funding for Violence 
     Against Women Act (VAWA) and Family Violence Prevention and 
     Services Act. These funds supplement support for violence 
     prevention and services activities. In particular, the 
     conference agreement supports the VAWA Long-Term Stability/
     Housing for Victims Program, which builds collaborations 
     between domestic violence service providers, housing 
     providers, and developers to leverage existing resources and 
     create housing solutions that meet victims' need for long-
     term housing. Helping victims remain safe and stable over 
     time is critical since victims of domestic violence often 
     return to their abusers because they cannot find long-term 
     housing.
       Finally, the conference agreement provides additional 
     funding to support the President's initiative to combat 
     violence along the U.S.-Mexico border.

                    GENERAL GOVERNMENT: FUNCTION 800

     Function Summary
       The General Government function consists of the activities 
     of the Legislative Branch, the Executive Office of the 
     President, general tax collection and fiscal operations of 
     the Department of the Treasury (including the IRS), the 
     Office of Personnel Management, the property and personnel 
     costs of the General Services Administration, and general 
     purpose fiscal assistance to states, localities, the District 
     of Columbia, and U.S. territories.
     Senate-passed Resolution
       The Senate resolution calls for a total of $22.3 billion in 
     BA and $23.0 billion in outlays for 2010, and $112.8 billion 
     in BA and $116.5 billion in outlays over five years.
       The Senate resolution supports enhanced Internal Revenue 
     Service (IRS) tax enforcement to address the tax gap. The 
     resolution fully funds the President's budget request for the 
     IRS and includes the President's request for additional 
     resources for IRS enforcement. By including a discretionary 
     cap adjustment of $890 million, the budget resolution would 
     direct approximately $8 billion to IRS enforcement 
     activities. A similar cap adjustment was included in the 2009 
     budget resolution.
       The Senate resolution assumes that rates of compensation 
     for civilian employees of the United States should be 
     adjusted at the same time, and in the same proportion, as are 
     rates of compensation for members of the uniformed services.
     House-passed Resolution
       The House resolution calls for a total of $22.0 billion in 
     BA and $22.8 billion in outlays for 2010, and for $113.2 
     billion in BA and $116.8 billion in outlays over five years.
       The House budget resolution includes a program integrity 
     initiative to increase IRS tax compliance efforts to collect 
     unpaid taxes. In a change from previous years, the amounts 
     included within the House resolution's adjustments for this 
     purpose focus solely on amounts in IRS's Enforcement account. 
     The House resolution assumes the full level for IRS 
     activities proposed by the President.
     Conference Agreement
       The conference agreement includes $22.0 billion in BA and 
     $22.8 billion in outlays for 2010, and $112.2 billion in BA 
     and $115.9 billion in outlays over five years. It fully funds 
     the President's budget request for IRS enforcement 
     activities, including additional resources available through 
     a discretionary cap adjustment. The Senate retains an $890 
     million discretionary cap adjustment, which would require 
     approximately $8 billion for IRS enforcement related 
     activities. The House reflects an equivalent amount for 
     enforcement activities using a cap adjustment for the 
     Enforcement account and additional funding from related 
     accounts.

                       NET INTEREST: FUNCTION 900

     Function Summary
       The Net Interest function is entirely mandatory with no 
     discretionary components. It

[[Page 10777]]

     consists primarily of the interest paid by the federal 
     government to private and foreign government holders of U.S. 
     Treasury securities. It includes the interest on the public 
     debt after deducting the interest income received by the 
     federal government from trust fund investments, loans and 
     cash balances, and earnings of the National Railroad 
     Retirement Investment Trust.
     Senate-passed Resolution
       For the unified budget, the Senate resolution calls for BA 
     and outlays of $168.8 billion for 2010 and $1.4 trillion over 
     five years. (The budget resolution provides only the on-
     budget amounts, which total $284.6 billion in BA and outlays 
     for 2010 and $2.0 trillion in BA and outlays over five 
     years.)
     House-passed Resolution
       For the unified budget, the House resolution calls for a 
     total of $168.3 billion in BA and outlays for 2010, and for 
     $1.4 trillion in BA and outlays over five years. (The budget 
     resolution provides only the on-budget amounts, which are 
     $284.1 billion in BA and outlays for 2010, and $2.0 trillion 
     in BA and outlays over five years.)
     Conference Agreement
       For the unified budget, the conference agreement calls for 
     BA and outlays of $168.4 billion for 2010 and $1.4 trillion 
     over five years. (The on-budget amounts are $284.2 billion in 
     BA and outlays for 2010 and $2.0 trillion in BA and outlays 
     over five years.)

                        ALLOWANCES: FUNCTION 920

     Function Summary
       The Allowances function is used for planning purposes to 
     address the budgetary effects of proposals or assumptions 
     that cross several budget functions. Once such changes are 
     enacted, the budgetary effects are distributed to the 
     appropriate budget function.
     Senate-passed Resolution
       The Senate resolution calls for a total of -$16.0 billion 
     in BA and -$7.0 billion in outlays for 2010, and -$89.4 
     billion in BA and -$78.8 billion in outlays over five years.
     House-passed Resolution
       The House resolution calls for a total of $9.4 billion in 
     BA and $4.9 billion in outlays for 2010, and for $33.4 
     billion in BA and $22.6 billion in outlays over five years.
       Function 920 includes a placeholder to recognize the 
     potential costs of disasters over the resolution period. It 
     also includes a variety of savings, including savings related 
     to program integrity initiatives, savings pursuant to 
     reconciliation instructions, and savings to offset program 
     initiatives in other budget functions.
     Conference Agreement
       The conference agreement calls for a total of $1.2 billion 
     in BA and $2.5 billion in outlays for 2010, and -$60.8 
     billion in BA and -$48.9 billion in outlays over five years. 
     These funding levels include a placeholder for 2009 and 2010 
     to recognize the potential costs of disasters. Offsetting 
     these amounts are other non-security discretionary 
     adjustments, savings pursuant to reconciliation instructions, 
     and offsets for policy in other budget functions.

            UNDISTRIBUTED OFFSETTING RECEIPTS: FUNCTION 950

     Function Summary
       The Undistributed Offsetting Receipts function includes 
     major offsetting receipt items that would distort the funding 
     levels of other functional categories if they were 
     distributed to them. Examples of such items include the 
     employer share of federal employee retirement benefits, outer 
     continental shelf rents and royalties, and the sale of major 
     assets.
     Senate-passed Resolution
       The Senate resolution calls for unified undistributed 
     offsetting receipts of -$83.6 billion in BA and outlays for 
     2010 and -$456.2 billion in BA and outlays over five years. 
     (The on-budget totals for BA and outlays are -$68.4 billion 
     for 2010 and -$371.8 billion over five years.) The Senate 
     resolution matches the CBO's baseline estimate of 
     undistributed offsetting receipts.
     House-passed Resolution
       For the unified budget, the House resolution calls for a 
     total of -$83.9 billion in BA and outlays for 2010, and for 
     -$458.0 billion in BA and outlays over five years. (The 
     budget resolution provides only the on-budget amounts, which 
     are -$68.8 billion in BA and outlays for 2010, and -$373.5 
     billion in BA and outlays over five years.)
       The negative spending in Function 950 represents CBO's 
     baseline estimate of undistributed offsetting receipts and 
     the impact of concurrent receipt policy.
     Conference Agreement
       For the unified budget, the conference agreement includes 
     undistributed offsetting receipts of -$83.9 billion in BA and 
     outlays for 2010 and -$458.0 billion in BA and outlays over 
     five years. (The on-budget amounts are -$68.8 billion in BA 
     and outlays for 2010 and -$373.5 billion in BA and outlays 
     over five years.)

        OVERSEAS DEPLOYMENTS AND OTHER ACTIVITIES: FUNCTION 970

     Function Summary
       This function includes funding for overseas deployments and 
     other activities.
     Senate-passed Resolution
       The Senate resolution did not include Function 970.
     House-passed Resolution
       The House resolution includes amounts equal to the 
     President's budget to account for any future House 
     consideration of appropriations for overseas deployments and 
     other activities.
     Conference Agreement
       The conference agreement includes Function 970 to account 
     for the President's pending supplemental request, other 
     Presidential requests, and an estimate of potential future 
     costs of overseas deployments.

                             RECONCILIATION

     Senate-passed Resolution
       The Senate resolution did not include any reconciliation 
     instructions.
     House-passed Resolution
       Title II of the House resolution includes reconciliation 
     instructions. The instructions direct committees to make 
     changes in laws under its jurisdiction that affect revenues 
     or direct spending to achieve a specified budgetary result. 
     The legislation used to implement those instructions is 
     reported as a reconciliation bill.
       Section 201 of the House resolution includes reconciliation 
     instructions to committees assumed to be used for health care 
     reform and for education, but not for other policies. In 
     section 201(a), entitled Health Care Reform, the Committee on 
     Energy and Commerce and the Committee on Ways and Means each 
     are instructed to report changes in laws by September 29, 
     2009, to reduce the deficit by $1 billion for the period of 
     fiscal years 2009 through 2014. In section 201(b), entitled 
     Investments in Education, the Committee on Education and 
     Labor is instructed to report changes in laws by September 
     30, 2009, to reduce the deficit by $1 billion for the period 
     of fiscal years 2009 through 2014. Reconciliation 
     instructions do not preclude the consideration of legislation 
     in these policy areas under regular order.
       Procedural language included in section 201(c) of the House 
     resolution permits but does not require the Clerk of the 
     House to join two separate reconciliation measures that meet 
     the above descriptions, once one such measure has passed the 
     House, for the purpose of forming a single engrossed 
     reconciliation bill within the meaning of section 310 of the 
     Congressional Budget Act of 1974.
       The House has adopted a rule relating to reconciliation 
     instructions (clause 7 of rule XXI) that requires that any 
     reconciliation instruction must not increase the deficit or 
     reduce the surplus over the time periods specified in the 
     House pay-as-you-go rule. The reconciliation instructions 
     provided in title II of the House resolution satisfy the 
     requirement of clause 7 of rule XXI of the House of 
     Representatives.
     Conference Agreement
       The conference agreement includes reconciliation 
     instructions.
       For the Senate, Sec. 201 of the conference agreement 
     provides reconciliation instructions to the Committee on 
     Finance and Committee on Health, Education, Labor, and 
     Pensions to report changes in laws within their jurisdiction 
     that reduce the deficit by $1,000,000,000 each for the period 
     of fiscal years 2009 through 2014. The deadline for these 
     committees to report legislation complying with their 
     instructions is October 15, 2009.
       For the House, Sec. 202 of the conference agreement 
     provides two sets of reconciliation instructions, one 
     intended for health reform and one intended for education. 
     The deadline for affected committees to report legislation 
     complying with each set of instructions is October 15, 2009. 
     The committees shall report reconciliation legislation 
     directly to the House Committee on the Budget.
       Sec. 202(a), for health reform, instructs the Committee on 
     Ways and Means, the Committee on Energy and Commerce, and the 
     Committee on Education and Labor to report changes in laws to 
     reduce the deficit by $1.0 billion for the period of fiscal 
     years 2009 through 2014. Because of overlapping committee 
     jurisdictions in the House with respect to health programs 
     and related policies, the House Committee on the Budget 
     assumes that legislation reported pursuant to Sec. 201(a) by 
     the three named committees will, in combination, result in 
     total net deficit reduction of at least $1.0 billion for the 
     period of fiscal years 2009 through 2014.
       Sec. 202(b), for education, instructs the Committee on 
     Education and Labor to report changes in laws to reduce the 
     deficit by $1.0 billion for the period of fiscal years 2009 
     through 2014.
       It is assumed that reconciliation will not be used for 
     changes in legislation related to global climate change.

                             RESERVE FUNDS

       The Senate and House use reserve funds in connection with 
     consideration of legislation that complies with each 
     chamber's rules. The conference agreement therefore contains 
     reserve funds for the House and for the Senate to address the 
     rules and procedures that apply in each chamber.

[[Page 10778]]


     Senate-passed Resolution
       Sec. 201. Transform and modernize America's health care 
           system
       (a) Transform and Modernize America's Health Care System: 
     The Senate-passed resolution allows the Chairman of the 
     Budget Committee to revise the levels in the resolution for 
     one or more pieces of health reform legislation that expand 
     affordable coverage, improve health care quality and health 
     outcomes, and constrain costs, provided that such legislation 
     is deficit-neutral over the total of 2009-2019, reduces 
     excess cost growth in health care spending, and is fiscally-
     sustainable over the long-term. The reserve fund reflects the 
     eight principles for health reform outlined in the 
     President's budget and provides maximum flexibility to the 
     authorizing Committees to determine the appropriate level of 
     spending and the offsets that may be required to pay for 
     these investments.
       (b) Other Revisions: The Senate-passed resolution allows 
     the Chairman of the Budget Committee to revise the levels in 
     the resolution for one or more pieces of legislation in the 
     following areas, provided it is deficit-neutral over the 
     total of 2009-2014 and 2009-2019:
       (1) Physician Payments--legislation that increases the 
     reimbursement rate for physician services under Medicare Part 
     B.
       (2) Physician Training--legislation to encourage physicians 
     to train in primary care residencies and ensure an adequate 
     supply of residents and physicians.
       (3) Medicare Outpatient Therapy--legislation to improve the 
     Medicare program for beneficiaries and protect access to 
     outpatient therapy services (including physical therapy, 
     occupational therapy, and speech-language pathology services) 
     while protecting beneficiaries from associated premium 
     increases.
       (4) Geographic Variation--legislation to promote Medicare 
     payment policies that reward quality and efficient care and 
     address geographic variation in spending.
       (5) Medicare Advantage Enrollees--legislation to protect 
     Medicare Advantage enrollees from premium increases and 
     benefit reductions in their Medicare Advantage plans that 
     would result from estimates in the 2010 Medicare Advantage 
     Call Letter.
       Sec. 202. Investing in clean energy and preserving the 
           environment
       The Senate-passed resolution includes a deficit-neutral 
     reserve fund allowing the Chairman of the Budget Committee to 
     revise the levels in the resolution for legislation in the 
     following areas, provided that such legislation would not 
     increase the deficit over either the period of the total of 
     2009 through 2014 or the period of the total of 2009 through 
     2019.
       (a) Investing in Clean Energy and Preserving the 
     Environment: Legislation that would reduce our Nation's 
     dependence on imported energy including through expanded 
     offshore oil and gas production in the Outer Continental 
     Shelf, produce green jobs, promote renewable energy 
     development, strengthen and retool manufacturing supply 
     chains, create a clean energy investment fund, improve 
     electricity transmission, encourage conservation and 
     efficiency (including through industrial energy efficiency 
     programs), make improvements to the Low Income Home Energy 
     Assistance Program, set aside additional funding from the Oil 
     Spill Liability Trust Fund for Arctic oil spill research 
     conducted by the Oil Spill Recovery Institute, implement 
     water settlements, or preserve or protect public lands, 
     oceans or coastal areas, by the amounts provided in such 
     legislation for those purposes, provided that such 
     legislation would not increase the cost of producing energy 
     from domestic sources, including oil and gas from the Outer 
     Continental Shelf or other areas; would not increase the cost 
     of energy for American families; would not increase the cost 
     of energy for domestic manufacturers, farmers, fishermen, or 
     other domestic industries; and would not enhance foreign 
     competitiveness against U.S. businesses. The legislation may 
     include tax provisions.
       (b) Climate Change Legislation: Legislation that would 
     invest in clean energy technology initiatives, decrease 
     greenhouse gas emissions (without regulating carbon dioxide, 
     nitrogen oxide, water vapor, or methane emissions from 
     biological processes associated with livestock production), 
     create new jobs in a clean technology economy, strengthen the 
     manufacturing competitiveness of the United States, diversify 
     the domestic clean energy supply to increase the energy 
     security of the United States, protect consumers (including 
     policies that address regional differences), provide 
     incentives for cost-savings achieved through energy 
     efficiencies, provide voluntary opportunities for agriculture 
     and forestry communities to contribute to reducing the levels 
     of greenhouse gases in the atmosphere, and help families, 
     workers, communities, and businesses make the transition to a 
     clean energy economy, without increasing electricity or 
     gasoline prices or increasing the overall burden on 
     consumers, through the use of revenues and policies provided 
     in such legislation.
       (c) Allocations: The Chairman of the Senate Committee on 
     the Budget shall not revise the allocations in this 
     resolution if the legislation provided for in subsections (a) 
     or (b) is reported from any committee pursuant to section 310 
     of the Congressional Budget Act of 1974.
       Sec. 203. Higher education
       The Senate-passed resolution allows the Chairman of the 
     Budget Committee to revise the levels and limits in the 
     resolution for one or more pieces of legislation that would 
     make higher education more accessible and more affordable 
     while maintaining a competitive student loan program that 
     provides students and institutions of higher education with a 
     comprehensive choice of loan products and services which may 
     include legislation to expand and strengthen student aid, 
     such as Pell grants, or increase college enrollment and 
     completion rates for low income students such as by investing 
     in programs that provide need-based grants and community work 
     study programs or provide outreach to low-income students to 
     prepare for college, provided it is deficit-neutral over the 
     total of 2009-2014 and 2009-2019. This may include tax 
     legislation.
       Sec. 204. Child nutrition and WIC
       The Senate-passed resolution allows the Chairman of the 
     Budget Committee to revise the levels in the resolution for 
     one or more pieces of legislation that would reauthorize 
     child nutrition programs and/or the Special Supplemental 
     Nutrition Program for Women, Infants, and Children (the WIC 
     program), provided it is deficit-neutral over the total of 
     2009-2014 and 2009-2019.
       Sec. 205. Investments in America's infrastructure
       (a) Infrastructure: The Senate-passed resolution allows the 
     Chairman of the Budget Committee to revise the levels and 
     limits in the resolution for one or more pieces of 
     legislation that would provide a sustained robust federal 
     investment in infrastructure, which may include public 
     housing, energy, water, transportation, including freight and 
     passenger rail, or other infrastructure projects, provided it 
     is deficit-neutral over the total of 2009-2014 and 2009-2019.
       The Senate-passed resolution also allows the Chairman of 
     the Budget Committee to revise the allocations to allow 
     funding for the Denali Commission for each applicable fiscal 
     year at a level equal to not less than the level of funding 
     made available for the Denali Commission during 2006.
       (b) Surface Transportation: The Senate resolution allows 
     the Chairman of the Budget Committee to revise the levels and 
     limits in the resolution for one or more pieces of 
     legislation that would provide new budget authority for 
     surface transportation programs to the extent such new budget 
     authority is offset by an increase in receipts to the Highway 
     Trust Fund (excluding transfers from the general fund of the 
     Treasury into the Highway Trust Fund not offset by a similar 
     increase in receipts), provided it is deficit-neutral over 
     the total of 2009-2014 and 2009-2019.
       (c) Multimodal Transportation Projects: The Senate 
     resolution allows the Chairman of the Budget Committee to 
     revise the levels and limits in the resolution for one or 
     more pieces of legislation that would authorize multimodal 
     transportation projects that--
       (1) provide a set of performance measures;
       (2) require a cost-benefit analysis be conducted to ensure 
     accountability and overall project goals are met; and
       (3) provide flexibility for States, cities, and localities 
     to create strategies that meet the needs of their communities

     --provided the legislation is deficit-neutral over the total 
     of 2009-2014 and 2009-2019.
       (d) Flood Control Projects: The Senate resolution allows 
     the Chairman of the Budget Committee to revise the levels and 
     limits in the resolution for one or more pieces of 
     legislation that provide for levee modernization, 
     maintenance, repair, and improvement, provided it is deficit-
     neutral over the total of 2009-2014 and 2009-2019.
       (e) Allowing Amtrak Passengers to Securely Transport 
     Firearms on Passenger Trains: The Senate resolution states 
     that none of amounts made available in the reserve fund 
     authorized under this section may be used to provide 
     financial assistance for the National Railroad Passenger 
     Corporation (Amtrak) unless Amtrak passengers are allowed to 
     securely transport firearms in their checked baggage.
       Sec. 206. Promote economic stabilization and growth
       (a) Manufacturing: The Senate-passed resolution allows the 
     Chairman of the Budget Committee to revise the levels and 
     limits in the resolution for one or more pieces of 
     legislation that would revitalize and strengthen the United 
     States domestic manufacturing sector by increasing Federal 
     research and development, by expanding the scope and 
     effectiveness of manufacturing programs across the Federal 
     Government, by increasing efforts to train and retrain 
     manufacturing workers, by enhancing workers' technical skills 
     in the use of the new advanced manufacturing technologies to 
     produce competitive energy efficient products, by increasing 
     support for sector workforce training, by increasing support 
     for the redevelopment of closed manufacturing plants, by 
     increasing support for development of alternative fuels and 
     leap-ahead automotive and energy technologies such as 
     advanced batteries, or by establishing tax incentives to 
     encourage the

[[Page 10779]]

     continued production in the United States of advanced 
     technologies and the infrastructure to support such 
     technologies, provided it is deficit-neutral over the total 
     of 2009-2014 and 2009-2019.
       (b) Tax Relief: The Senate resolution allows the Chairman 
     of the Budget Committee to revise the levels in the 
     resolution for legislation that would provide tax relief 
     including, but not limited to, extensions of expiring and 
     expired tax relief provisions, provided it is deficit-neutral 
     over the total of 2009-2014 and 2009-2019.
       (c) Tax Reform: The Senate resolution allows the Chairman 
     of the Budget Committee to revise the levels in the 
     resolution for legislation that would reform the Internal 
     Revenue Code to ensure a sustainable revenue base that would 
     lead to a fairer and more efficient tax system and to a more 
     competitive business environment for United States 
     enterprises, provided it is deficit-neutral over the total of 
     2009-2014 and 2009-2019.
       (d) Flood Insurance Reform: The Senate resolution allows 
     the Chairman of the Budget Committee to revise the levels in 
     the resolution for one or more pieces of legislation that 
     would provide for flood insurance reform and modernization, 
     provided it is deficit-neutral over the total of 2009-2014 
     and 2009-2019.
       (e) Trade: The Senate resolution allows the Chairman of the 
     Budget Committee to revise the levels in the resolution for 
     one or more pieces of legislation related to trade, provided 
     it is deficit-neutral over the total of 2009-2014 and 2009-
     2019.
       (f) Housing Assistance: The Senate resolution allows the 
     Chairman of the Budget Committee to revise the levels and 
     limits in the resolution for one or more pieces of 
     legislation related to housing assistance, which may include 
     low income rental assistance and assistance provided through 
     the Housing Trust Fund created under section 1131 of the 
     Housing and Economic Recovery Act of 2008, and legislation 
     that allows for a temporary suspension of the 10 percent tax 
     penalty on early withdrawal from qualified retirement 
     accounts, provided it is deficit-neutral over the total of 
     2009-2014 and 2009-2019.
       (g) Unemployment Mitigation: The Senate resolution allows 
     the Chairman of the Budget Committee to revise the levels in 
     the resolution for one or more pieces of legislation that 
     would reduce the unemployment rate or provide assistance to 
     the unemployed, particularly in the states and localities 
     with the highest rates of unemployment, or improve the 
     implementation of the unemployment compensation program, 
     provided it is deficit-neutral over the total of 2009-2014 
     and 2009-2019.
       Sec. 207. America's veterans and wounded servicemembers
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that would expand 
     the number of disabled military retirees who receive both 
     disability compensation and retired pay, accelerate the 
     phase-in of concurrent receipt, eliminate the offset between 
     Survivor Benefit Plan annuities and Veterans' Dependency and 
     Indemnity Compensation, enhance servicemember education 
     benefits for members of the National Guard and Reserve by 
     ensuring those benefits keep pace with the national average 
     cost of tuition, provide for the payment of retired pay for 
     members of the Alaska Territorial Guard who served in the 
     Alaska Territorial Guard during and after World War II, or 
     expand veterans' benefits (including for veterans living in 
     rural areas), provided such legislation is deficit-neutral 
     over the total of 2008-2013 and 2008-2018.
       Sec. 208. Judicial pay and judgeships and postal retiree 
           assistance
       (a) Judicial Pay and Judgeships: The Senate-passed 
     resolution allows the Chairman of the Budget Committee to 
     revise the levels in the resolution for one or more pieces of 
     legislation that authorize salary adjustments for justices 
     and judges of the United States or increases the number of 
     federal judgeships, provided it is deficit-neutral over the 
     total of 2009-2014 and 2009-2019.
       (b) Postal Retirees: The Senate resolution allows the 
     Chairman of the Budget Committee to revise the levels in the 
     resolution for one or more pieces of legislation relating to 
     funding adjustments for United States Postal Service retiree 
     health coverage, provided it is deficit-neutral over the 
     total of 2009-2014 and 2009-2019.
       Sec. 209. Defense acquisition and contracting reform
       The Senate resolution allows the Chairman of the Budget 
     Committee to revise the levels in the resolution for one or 
     more pieces of legislation that would--
       (1) enhance the capability of the Federal acquisition or 
     contracting workforce to achieve better value for taxpayers;
       (2) reduce the use of no-bid and cost-plus contracts;
       (3) reform Department of Defense processes for acquiring 
     weapons systems in order to reduce costs, improve cost and 
     schedule estimation, enhance developmental testing of 
     weapons, or increase the rigor of reviews of programs that 
     experience critical cost growth;
       (4) reduce the award of contracts to contractors with 
     seriously delinquent tax debts;
       (5) reduce the use of contracts, including the continuation 
     of task orders, awarded under the Logistics Civil 
     Augmentation Program (LOGCAP) III;
       (6) reform Department of Defense processes for acquiring 
     services in order to reduce costs, improve costs and schedule 
     estimation, enhance oversight, or increase the rigor of 
     reviews of programs that experience critical cost growth;
       (7) reduce the use of contracts for acquisition, oversight, 
     and management support services; or
       (8) enhance the capability of auditors and inspectors 
     general to oversee Federal acquisition and procurement;

     --provided the legislation is deficit-neutral over the total 
     of 2009-2014 and 2009-2019.
       Sec. 210. Investments in our nation's counties and schools
       The Senate-passed resolution allows the Chairman of the 
     Budget Committee to revise the levels in the resolution for 
     one or more pieces of legislation that would reauthorize the 
     Secure Rural Schools and Community Self Determination Act of 
     2000 (Public Law 106-393), make changes to the Payments in 
     Lieu of Taxes Act of 1976 (Public Law 94-565), or both, 
     provided that such legislation would not increase the deficit 
     over either the period of the total of 2009 through 2014 or 
     the period of the total of 2009 through 2019.
       Sec. 211. The Food and Drug Administration
       (a) Regulation: The Senate-passed resolution allows the 
     Chairman of the Budget Committee to revise the levels in the 
     resolution for one or more pieces of legislation that would 
     authorize the Food and Drug Administration to regulate 
     products and assess user fees on manufacturers and importers 
     of those products to cover the cost of the Food and Drug 
     Administration's regulatory activities, provided it is 
     deficit-neutral over the total of 2009-2014 and 2009-2019.
       (b) Drug Importation: The Senate resolution allows the 
     Chairman of the Budget Committee to revise the levels in the 
     resolution for one or more pieces of legislation that would 
     permit the safe importation of prescription drugs approved by 
     the Food and Drug Administration from a specified list of 
     countries, provided it is deficit-neutral over the total of 
     2009-2014 and 2009-2019.
       (c) Food Safety: The Senate resolution allows the Chairman 
     of the Budget Committee to revise the levels in the 
     resolution for one or more pieces of legislation that would 
     improve the safety of the food supply in the United States, 
     provided it is deficit-neutral over the total of 2009-2014 
     and 2009-2019.
       Sec. 212. Bipartisan Congressional Sunset Commission
       The Senate-passed resolution allows the Chairman of the 
     Budget Committee to revise the levels in the resolution for 
     one or more pieces of legislation that--
       (1) provide for a bipartisan congressional sunset 
     commission that will review Federal programs, focusing on 
     unauthorized and nonperforming programs;
       (2) provide for a process that will help abolish obsolete 
     and duplicative Federal programs;
       (3) provide for improved government accountability and 
     greater openness in government decision-making; and
       (4) provide for a process that ensures that Congress will 
     consider the commission's reports and recommendations

     --provided that such legislation would not increase the 
     deficit over either the period of the total of 2009 through 
     2014 or the period of the total of 2009 through 2019.
       Sec. 213. Improving domestic fuels security
       The Senate-passed resolution allows the Chairman of the 
     Budget Committee to revise the levels in the resolution for 
     one or more pieces of legislation that would achieve domestic 
     fuels security by authorizing the Department of Defense to 
     procure alternative fuels from domestic sources under 
     contracts for up to 20 years, provided that procurement is 
     consistent with section 526 of the Energy Independence and 
     Security Act of 2007 (Public Law 110-140), and provided that 
     such legislation would not increase the deficit over either 
     the period of the total of 2009 through 2014 or the period of 
     the total of 2009 through 2019.
       Sec. 214. Comprehensive investigation into the current 
           financial crisis
       The Senate resolution allows the Chairman of the Budget 
     Committee to revise the levels and limits in the resolution 
     for one or more pieces of legislation that provide resources 
     for a comprehensive investigation to determine the cause of 
     the current financial crisis, hold those responsible 
     accountable, and provide recommendations to prevent another 
     financial crisis of this magnitude from occurring again, 
     provided it is deficit-neutral over the total of 2009-2014 
     and 2009-2019.
       Sec. 215. Increased transparency at the federal reserve
       The Senate-passed resolution allows the Chairman of the 
     Budget Committee to revise the levels and limits in the 
     resolution for one or more pieces of legislation that 
     increase transparency at the Federal Reserve System, 
     including audits of the Board of Governors of the Federal 
     Reserve System and the Federal reserve banks, to include--

[[Page 10780]]

       (1) an evaluation of the appropriate number and the 
     associated costs of Federal reserve banks;
       (2) publication on its website, with respect to all lending 
     and financial assistance facilities created by the Board to 
     address the financial crisis, of--
       (a) the nature and amounts of the collateral that the 
     central bank is accepting on behalf of American taxpayers in 
     the various lending programs, on no less than a monthly 
     basis;
       (b) the extent to which changes in valuation of credit 
     extensions to various special purpose vehicles, such as 
     Maiden Lane I, Maiden Lane II, and Maiden Lane III, are a 
     result of losses on collateral which will not be recovered;
       (c) the number of borrowers that participate in each of the 
     lending programs and details of the credit extended, 
     including the extent to which the credit is concentrated in 
     one or more institutions; and
       (d) information on the extent to which the central bank is 
     contracting for services of private sector firms for the 
     design, pricing, management, and accounting for the various 
     lending programs and the terms and nature of such contracts 
     and bidding processes; and
       (3) including the identity of each entity to which the 
     Board has provided all loans and other financial assistance 
     since March 24, 2008, the value or amount of that financial 
     assistance, and what that entity is doing with such financial 
     assistance

     --provided it is deficit-neutral over the total of 2009-2014 
     and 2009-2019.
       Sec. 216. Improving child welfare
       The Senate-passed resolution allows the Chairman of the 
     Budget Committee to revise the levels in the resolution for 
     one or more pieces of legislation that would make 
     improvements to child welfare programs, including 
     strengthening the recruitment and retention of foster 
     families, or make improvements to the child support 
     enforcement program, provided it is deficit-neutral over the 
     total of 2009-2014 and 2009-2019.
       Sec. 217. Long-term stability/housing for victims
       The Senate-passed resolution allows the Chairman of the 
     Budget Committee to revise the levels and limits in the 
     resolution for one or more pieces of legislation that would 
     fully fund the Long-Term Stability/Housing for Victims 
     Program under the Violence Against Women Act, by the amounts 
     provided in that legislation for those purposes, provided it 
     is deficit-neutral over the total of 2009-2014 and 2009-2019.
       Sec. 218. Providing a tax credit for the purchase of a 
           principal residence
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that would provide a 
     non-refundable tax credit in the amount of the lesser of 
     $15,000 or 10 percent of the purchase price for the purchase 
     of a principal residence for the period of one year, provided 
     such legislation is deficit-neutral over the total of 2009-
     2014 and 2009-2019.
       Sec. 219. Monitoring of FHA-insured lending
       The Senate-passed resolution allows the Chairman of the 
     Budget Committee to revise the levels and limits in the 
     resolution for one or more pieces of legislation that would 
     increase the capacity of the Inspector General of the 
     Department of Housing and Urban Development to investigate 
     cases of mortgage fraud of Federal Housing Administration 
     loans, provided it is deficit-neutral over the total of 2009-
     2014 and 2009-2019.
       Sec. 220. Address the systemic inequities of Medicare and 
           Medicaid reimbursement that lead to access problems in 
           rural areas
       The Senate-passed resolution allows the Chairman of the 
     Budget Committee to revise the levels in the resolution for 
     one or more pieces of legislation that address the systemic 
     inequities of Medicare and Medicaid reimbursement that lead 
     to access problems in rural areas, including access to 
     primary care and outpatient services, hospitals, and an 
     adequate supply of providers in the workforce, provided that 
     it is deficit-neutral over the total of 2009-2014 and 2009-
     2019.
       Sec. 221. Carbon capture and storage and advanced clean 
           coal power generation research, development, 
           demonstration, and deployment
       The Senate-passed resolution allows the Chairman of the 
     Budget Committee to revise the levels in the resolution for 
     one or more pieces of legislation that would accelerate the 
     research, development, demonstration, and deployment of 
     advanced technologies to capture and store carbon dioxide 
     emissions from coal-fired power plants and other industrial 
     emission sources and to use coal in an environmentally 
     acceptable manner, provided that such legislation would not 
     increase the deficit over either the period of the total of 
     2009 through 2014 or the period of the total of 2009 through 
     2019.
       Sec. 222. Expenditure of remaining TARP funds
       The Senate-passed resolution allows the Chairman of the 
     Budget Committee to revise the levels and limits in the 
     resolution for one or more pieces of legislation that 
     reaffirm that the remaining Troubled Asset Relief Program 
     funds shall be used to save homes, save small businesses, 
     help the municipal bond market, make credit more widely 
     available, and provide additional resources for the Special 
     Inspector General for the Troubled Asset Relief Program, the 
     Congressional Oversight Panel, and the Government 
     Accountability Office for vigorous audit and evaluation of 
     all expenditures and commitments made under the Troubled 
     Asset Relief Program, by the amounts provided it is deficit-
     neutral over the total of 2009-2014 and 2009-2019.
       Sec. 223. Prohibiting undeserved contracting performance 
           bonuses
       The Senate-passed resolution allows the Chairman of the 
     Budget Committee to revise the levels and limits in the 
     resolution for one or more pieces of legislation that would 
     prohibit federally funded bonuses awarded to contractors and 
     government executives responsible for over budget projects 
     and programs that fail to meet basic performance 
     requirements, provided it is deficit-neutral over the total 
     of 2009-2014 and 2009-2019.
       Sec. 224. Eliminating wasteful programs
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that would achieve 
     savings by eliminating wasteful, inefficient, and duplicative 
     programs, provided that such legislation is deficit-neutral 
     over the total of 2009-2014 and 2009-2019.
       Sec. 225. Violence Against Women Act and the Family 
           Violence Prevention and Service Act
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that would provide 
     resources for programs administered through the Violence 
     Against Women Act and the Family Violence Prevention and 
     Services Act, and other related programs, provided that such 
     legislation is deficit-neutral over the total of 2009-2014 
     and 2009-2019.
       Sec. 226. Ending abusive no-bid contracts
       The Senate resolution allows the Chairman of the Budget 
     Committee to revise the levels in the resolution for one or 
     more pieces of legislation that would end abusive no-bid 
     contracts by requiring all Federal contracts over $25,000 to 
     be competitively bid provided the legislation is deficit-
     neutral over the total of 2009-2014 and 2009-2019.
       Sec. 227. Home visitation programs
       The Senate-passed resolution allows the Chairman of the 
     Budget Committee to revise the levels in the resolution for 
     one or more pieces of legislation that would provide funds to 
     States to establish or expand quality programs of early 
     childhood home visitation that increase school readiness, 
     child abuse and neglect prevention, and early identification 
     of developmental and health delays, provided it is deficit-
     neutral over the total of 2009-2014 and 2009-2019.
       Sec. 228. 21st Century learning centers
       The Senate-passed resolution allows the Chairman of the 
     Budget Committee to revise the levels and limits in the 
     resolution for one or more pieces of legislation that would 
     increase funding for the 21st Century Community Learning 
     Centers program, provided that such legislation is deficit-
     neutral over the total of 2009-2014 and 2009-2019.
       Sec. 229. Extending top tax brackets for individuals with 
           majority small business income
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that would extend 
     the top tax brackets of 33 percent and 35 percent for 
     individuals receiving more than 50 percent of income from 
     small business, provided such legislation is deficit-neutral 
     over the total of 2009-2014 and 2009-2019.
       Sec. 230. Pension coverage for employees of Department of 
           Energy laboratories and environmental cleanup sites
       The Senate-passed resolution includes a deficit-neutral 
     reserve fund allowing the Chairman of the Budget Committee to 
     revise the levels in the resolution for legislation that 
     would authorize funding to cover the full cost of pension 
     obligations for current and past employees of laboratories 
     and environmental cleanup sites under the jurisdiction of the 
     Department of Energy (including benefits paid to security 
     personnel) in a manner that does not impact the missions of 
     those laboratories and environmental cleanup sites.
       Sec. 231. Resources for firefighters and fire departments
       The Senate resolution allows the Chairman of the Budget 
     Committee to revise the levels and limits in the resolution 
     for one or more pieces of legislation that provide 
     firefighters and fire departments with critical resources 
     under FEMA Assistance to Firefighters Grant and Staffing for 
     Adequate Fire and Emergency Response Firefighters Grant 
     programs, provided it is deficit-neutral over the total of 
     2009-2014 and 2009-2019.
       Sec. 232. Increased use of recovery audits
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that would achieve 
     savings by requiring agencies to increase their use of 
     recovery audits and use those savings to reduce the deficit.

[[Page 10781]]


       Sec. 233. Repealing 1993 income tax on Social Security 
           benefits
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that would repeal 
     the 1993 increase in the income tax on social security 
     benefits, provided such legislation is deficit-neutral over 
     the total of 2009-2014 and 2009-2019.
       Sec. 234. Increasing the amount of capital losses allowed 
           to individuals
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that would increase 
     the amount of capital losses allowed to individuals, provided 
     such legislation is deficit-neutral over the total of 2009-
     2014 and 2009-2019.
       Sec. 235. Foster care financing reform
       The Senate-passed resolution allows the Chairman of the 
     Budget Committee to revise the levels in the resolution for 
     one or more pieces of legislation that would--
       (1) change the Federal foster care payment system;
       (2) promote and improve family support, family preservation 
     and time-limited family unification services;
       (3) provide for subsidies and support programs that are 
     available to support the needs of the children prior to 
     removal, during removal, and post placement;
       (4) promote innovation and best practice at the State 
     level; and
       (5) guarantee that public funds are used to effectively 
     meet the needs of children who have been abused or neglected

     --provided it is deficit-neutral over the total of 2009-2014 
     and 2009-2019.
       Sec. 236. Healthcare professionals for the Veterans Health 
           Administration
       The Senate-passed resolution allows the Chairman of the 
     Budget Committee to revise the levels and limits in the 
     resolution for one or more pieces of legislation that would--
       (1) increase the number of healthcare professionals in the 
     Veterans Health Administration to meet the needs of the 
     expanding number of veterans and to fill healthcare 
     professional positions in the Veterans Health Administration 
     that are currently vacant; and
       (2) provide enhanced incentives for healthcare 
     professionals of the Veterans Health Administration who serve 
     in rural areas

     --provided it is deficit-neutral over the total of 2009-2014 
     and 2009-2019.
       Sec. 237. Repealing deductions from mineral revenue 
           payments to states
       The Senate-passed resolution allows the Chairman of the 
     Budget Committee to revise the levels in the resolution for 
     legislation that would repeal the requirement to deduct 
     certain amounts from mineral revenues payable to States, 
     provided that such legislation would not increase the deficit 
     over either the period of the total of 2009 through 2014 or 
     the period of the total of 2009 through 2019.
       Sec. 238. Promoting tax equity for states without personal 
           income taxes
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that would provide 
     for the permanent extension of the deduction for state and 
     local sales taxes in order to promote tax equity for states 
     without personal income taxes, provided such legislation is 
     deficit-neutral over the total of 2009-2014 and 2009-2019.
       Sec. 239. Setting performance standards to identify failing 
           government programs
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that would set 
     performance standards to identify failing government 
     programs, provided that such legislation is deficit neutral 
     over the total 2009-2014 and 2009-2019.
       Sec. 240. Expediting research on viability of using higher 
           ethanol blends at service stations
       The Senate-passed resolution allows the Chairman of the 
     Budget Committee to revise the levels in the resolution for 
     legislation that would expedite research at the Department of 
     Energy and the Environmental Protection Agency on the 
     viability of the use of higher ethanol blends at the service 
     station pump, provided that such legislation would not 
     increase the deficit over either the period of the total of 
     2009 through 2014 or the period of the total of 2009 through 
     2019.
       Sec. 241. Enhanced drug-control efforts
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that would increase 
     the number of counties designated as High Intensity Drug 
     Trafficking Areas to provide coordination, equipment, 
     technology, and additional resources to combat drug 
     trafficking or legislation that increases drug interdiction 
     funding at the Department of Homeland Security, provided that 
     such legislation is deficit-neutral over the total of 2009-
     2014 and 2009-2019.
       Sec. 242. Promoting individual savings and financial 
           security
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that would promote 
     financial security through financial literacy, retirement 
     planning, and savings incentives, provided such legislation 
     is deficit-neutral over the total of 2009-2014 and 2009-2019.
       Sec. 243. National Health Services Corps
       The Senate-passed resolution allows the Chairman of the 
     Budget Committee to revise the levels in the resolution for 
     one or more pieces of legislation that would provide the 
     National Health Service Corps with $235 million for 2010, 
     provided it is deficit-neutral over the total of 2009-2014 
     and 2009-2019.
       Sec. 244. Improving the animal health and disease program
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that would fully 
     fund the animal health and disease program, provided that 
     such legislation is deficit neutral over the total 2009-2014 
     and 2009-2019.
       Sec. 245. Increase in the end strength for active duty 
           personnel of the Army
       The Senate-passed resolution allows the Chairman of the 
     Budget Committee to revise the levels in the resolution for 
     one or more pieces of legislation that would reduce the 
     strain on the United States Armed Forces by authorizing an 
     increase in the end strength for active duty personnel of the 
     Army to a level not less than 577,400 persons provided the 
     legislation is deficit-neutral over the total of 2009-2014 
     and 2009-2019.
       Sec. 246. Wildland fire management activities
       The Senate-passed resolution allows the Chairman of the 
     Budget Committee to revise the levels in the resolution for 
     legislation that would--
       (1) allow wildland fire management funds for hazardous 
     fuels reduction and hazard mitigation activities in areas at 
     high risk of catastrophic wildfire to be distributed to areas 
     demonstrating highest priority needs, as determined by the 
     Chief of the Forest Service, and
       (2) provide that no State matching funds are required for 
     the activities described in paragraph (1)

     --provided that such legislation would not increase the 
     deficit over either the period of the total of 2009 through 
     2014 or the period of the total of 2009 through 2019.
       Sec. 247. Increasing the estate tax exemption and lowering 
           the maximum estate tax rate
       The Senate-passed resolution includes a reserve fund 
     allowing the Chairman of the Budget Committee to revise the 
     levels in the resolution for legislation that would establish 
     the estate tax exemption at $5 million, indexed for 
     inflation, set the maximum estate tax rate at 35 percent, and 
     provide for reunification of the estate and gift credits and 
     the portability of exemption between spouses, provided such 
     legislation is deficit-neutral over the total of 2009-2014 
     and 2009-2019.
       Sec. 248. Point of order against legislation that provides 
           additional relief for the estate tax beyond the levels 
           assumed in the budget resolution unless an equal amount 
           of additional tax relief is provided to middle class 
           taxpayers.
       The Senate-passed resolution included a point of order in 
     the Senate against legislation that would provide additional 
     relief for the estate tax beyond the levels assumed in the 
     budget resolution of $7 million per married couple and a 
     graduated rate ending at a rate less than 45 percent unless 
     an equal amount of tax relief is provided to taxpayers 
     earning less than $100,000 per year and such relief is in 
     addition to the amounts assumed in the budget resolution. The 
     point of order could be waived with 60 votes.
       Sec. 249. Increase FDIC and NCUA borrowing authority
       The Senate-passed resolution allows the Chairman of the 
     Budget Committee to revise the levels in the resolution for 
     one or more pieces of legislation that would increase the 
     borrowing authority of the Federal Deposit Insurance 
     Corporation and the National Credit Union Administration, 
     provided it is deficit-neutral over the total of 2009-2019.
       Sec. 250. Innovative Loan Guarantee Program at the 
           Department of Energy
       The Senate-passed resolution allows the Chairman of the 
     Budget Committee to revise the levels in the resolution for 
     legislation that would authorize an additional 
     $50,000,000,000 for use to provide loan guarantees for 
     eligible projects under title XVII of the Energy Policy Act 
     of 2005 (42 U.S.C. 16511 et seq.), provided that such 
     legislation would not increase the deficit over either the 
     period of the total of 2009 through 2014 or the period of the 
     total of 2009 through 2019.
       Sec. 251. Nuclear research and development
       The Senate-passed resolution allows the Chairman of the 
     Budget Committee to revise the levels in the resolution for 
     legislation that would authorize nuclear research and 
     development activities, including the Generation IV program, 
     the Advanced Fuel

[[Page 10782]]

     Cycle Initiative, and the Light Water Reactor Sustainability 
     program, provided that such legislation would not increase 
     the deficit over either the period of the total of 2009 
     through 2014 or the period of the total of 2009 through 2019.
       Sec. 252. 2012 completion of Food and Drug Administration 
           facilities
       The Senate-passed resolution allows the Chairman of the 
     Budget Committee to revise the levels in the resolution for 
     one or more pieces of legislation that would provide 
     sufficient funding for the General services Administration to 
     complete construction of the Food and Drug administration 
     White Oak Campus in Silver Spring, Maryland by 2012, provided 
     it is deficit-neutral over the total of 2009-2014 and 2009-
     2019.
       Sec. 253. Energy Star for Small Business Program
       The Senate-passed resolution allows the Chairman of the 
     Budget Committee to revise the levels in the resolution for 
     legislation that would set aside, from amounts made available 
     for the Energy Star Program of the Environmental Protection 
     Agency, at least 2 percent for the Energy Star for Small 
     Business Program, provided that such legislation would not 
     increase the deficit over either the period of the total of 
     2009 through 2014 or the period of the total of 2009 through 
     2019.
       Throughout this subtitle, the use of the word ``limits'' 
     refers to the discretionary spending limits in the Senate.
     House-passed Resolution
       Sec. 301. Deficit-neutral reserve fund for health care 
           reform
       The reserve fund supports the President's goal of fiscally 
     responsible health reform legislation. The reserve fund 
     accommodates legislation that addresses the common goals of 
     making affordable health coverage available to all, improving 
     the quality of health care, and reducing rising health care 
     costs, while building on and strengthening existing public 
     and private insurance coverage and preserving choice of 
     provider and plan, consistent with the pay-as-you-go 
     principle.
       As part of health care reform, the House supports measures 
     to ensure that payments to providers are appropriate and 
     equitable and are designed to encourage efficiency, higher 
     quality care, coordination of care, and accountability.
       Sec. 302. Deficit-neutral reserve fund for college access, 
           affordability, and completion
       The reserve fund accommodates changes in laws that will 
     increase assistance or benefits to college students, 
     consistent with the pay-as-you-go principle. This reserve 
     fund will provide committees maximum flexibility in finding 
     offsets for legislation to help more students afford and 
     complete college.
       Sec. 303. Deficit-neutral reserve fund for increasing 
           energy independence
       The reserve fund accommodates legislation to increase U.S. 
     energy independence, consistent with the pay-as-you-go 
     principle. This reserve fund covers legislation that provides 
     tax incentives for or otherwise encourages the production of 
     renewable energy or increased energy efficiency; encourages 
     investment in emerging energy or vehicle technologies or 
     carbon capture and sequestration; limits and provides for 
     reductions in greenhouse gas emissions; assists businesses, 
     industries, states, communities, the environment, workers, or 
     households as the United States moves toward reducing and 
     offsetting the impacts of greenhouse gas emissions; or 
     facilitates the training of workers for these industries 
     (``green collar jobs'').
       Sec. 304. Deficit-neutral reserve fund for America's 
           veterans and servicemembers
       The reserve fund accommodates legislation to change health 
     care and benefits for veterans, servicemembers, or their 
     families, consistent with the pay-as-you-go principle. This 
     reserve fund covers legislation that enhances health care for 
     military personnel or veterans; maintains the affordability 
     of health care for military retirees or veterans; improves 
     disability benefits or evaluations for wounded or disabled 
     military personnel or veterans (including measures to 
     expedite the claims process); expands eligibility to permit 
     additional disabled military retirees to receive both 
     disability compensation and retired pay (concurrent receipt); 
     or eliminates the offset between Survivor Benefit Plan 
     annuities and veterans' dependency and indemnity 
     compensation. The reserve fund shall not accommodate 
     legislation authorizing the Department of Veterans Affairs 
     (VA) to bill private insurance companies for treatment of 
     health conditions that are related to veterans' military 
     service. VA already is authorized to bill such companies for 
     treatment of conditions that are not service-connected.
       Sec. 305. Deficit-neutral reserve fund for certain tax 
           relief
       The reserve fund for tax relief accommodates legislation to 
     reduce tax burdens on working families, businesses, States, 
     or communities if it complies with the pay-as-you-go 
     principle. This reserve fund could therefore accommodate 
     individual tax relief supporting working families, higher 
     education, and raising participation in retirement saving 
     vehicles, among other purposes. It could also accommodate tax 
     relief and investment incentives for businesses, States, or 
     communities.
       Sec. 306. Deficit-neutral reserve fund for a 
           9/11 health program
       The reserve fund accommodates legislation that would 
     establish a program, including medical monitoring and 
     treatment, addressing the adverse health impacts linked to 
     the attacks of September 11, 2001, consistent with the pay-
     as-you-go principle. Last year, the House and Senate included 
     this deficit neutral reserve fund as part of the Conference 
     Agreement.
       Sec. 307. Deficit-neutral reserve fund for child nutrition
       This reserve fund accommodates legislation to reauthorize, 
     expand, or improve the child nutrition programs, including, 
     but not limited to, the school lunch and school breakfast 
     programs, after-school and summer food programs, the Special 
     Supplemental Nutrition Program for Women, Infants, and 
     Children (WIC), and the child and adult care food program, 
     consistent with the pay-as-you-go principle.
       Sec. 308. Deficit-neutral reserve fund for structural 
           unemployment insurance reforms
       This reserve fund accommodates legislation consistent with 
     the pay-as-you-go principle that builds on the provisions of 
     the American Recovery and Reinvestment Act and continues 
     modernizing the unemployment system to better meet the 
     challenges of the 21st century workforce, in particular by 
     improving its response to economic downturns.
       Sec. 309. Deficit-neutral reserve fund for child support
       This reserve fund accommodates legislation to increase 
     parental support for children, including efforts to ensure 
     that children receive 100 percent of the child support that 
     they are owed and that is paid by non-custodial parents, as 
     well as other efforts to provide more parental support for 
     children, consistent with the pay-as-you-go principle.
       Sec. 310. Deficit-neutral reserve fund for the Affordable 
           Housing Trust Fund
       The reserve fund accommodates funding for the existing 
     Affordable Housing Trust Fund that provides grants to states, 
     communities, and other entities to provide or rehabilitate 
     housing for low-income families, consistent with the pay-as-
     you-go principle. The reserve fund provides committees with 
     flexibility to find offsets for legislation that capitalizes 
     the trust fund, which is already authorized.
       Sec. 311. Deficit-neutral reserve fund for home visiting
       This reserve fund accommodates legislation to provide 
     mandatory funding for a home visiting program or programs 
     serving low-income mothers-to-be and low-income families, 
     consistent with the pay-as-you-go principle. The House 
     anticipates that the legislation will fund evidence-based 
     programs that have been tested in well-designed randomized 
     controlled trials and are likely to produce future budget 
     savings by improving child and family health and well-being. 
     Research studies on providing nurse home visiting services to 
     low-income families, for example, have documented between 
     three and six dollars in savings for every dollar invested in 
     the home visits.
       Sec. 312. Deficit-neutral reserve fund for Low-income Home 
           Energy Assistance Program trigger
       This reserve fund accommodates legislation to ensure that 
     the Low-income Home Energy Assistance Program (LIHEAP) 
     responds more quickly and efficiently to energy price 
     increases, so long as the legislation is consistent with the 
     pay-as-you-go principle.
       Sec. 313. Reserve fund for the surface transportation 
           reauthorization
       The reserve fund accommodates additional contract authority 
     for the reauthorization of highway construction, highway 
     safety and mass transit programs or other transportation-
     related legislation on the condition that the Highway Trust 
     Fund continues to fully meet its obligations. While the 
     eventual funding needs for the upcoming highway and transit 
     bill are not yet known, the reserve fund will provide 
     flexibility to adjust the Transportation and Infrastructure 
     Committee's allocation provided that the solvency of the 
     Highway Trust Fund is maintained.
       Sec. 314. Current policy reserve fund for Medicare 
           improvements
       The reserve fund accommodates additional mandatory spending 
     to reform the Medicare physician payment system. The reserve 
     fund supports legislation to change incentives to encourage 
     efficiency and higher quality care in a way that supports 
     fiscal sustainability, to improve payment accuracy to 
     encourage efficient use of resources and ensure that primary 
     care receives appropriate compensation, to improve 
     coordination of care among all providers serving a patient in 
     all appropriate settings, or to hold providers accountable 
     for their utilization patterns and quality of care.
       The reserve fund allows Medicare physician payment reform 
     legislation's costs to be measured against current policy, 
     that is assuming the payment rates in effect for physicians 
     for 2009 will stay in effect through 2019.

[[Page 10783]]

     This assumption is consistent with the President's budget and 
     is based on Congressional actions in recent years to prevent 
     cuts in physician payments that would otherwise be required 
     by the Sustainable Growth Rate (SGR) formula. However, like 
     the President's budget, the budget resolution does not intend 
     this assumption as a reflection of future policy. Instead, 
     the assumption represents a realistic and meaningful 
     benchmark against which to measure the fiscal effects of 
     legislation reforming the Medicare physician payment system.
       After the House has adopted a measure to impose statutory 
     pay-as-you-go requirements, or when a bill utilizing this 
     reserve fund includes provisions to impose statutory pay-as-
     you-go requirements, Section 401(a) of the House resolution 
     directs the chairman of the Budget Committee to make current 
     policy adjustments before evaluating the costs of the 
     Medicare bill for compliance with House budget rules and 
     procedures. The adjustments may be made only for the purposes 
     and in the amounts provided in this reserve fund.
       The SGR formula limits how much total physician 
     compensation can grow every year. The SGR formula has 
     required payment rate cuts every year since 2002. Since 2003, 
     Congress has enacted legislation to prevent these rate cuts 
     from taking effect, one or two years at a time. Consequently, 
     history has shown that the current statutory baseline as it 
     relates to Medicare physician payments is unrealistic. Under 
     current law, physicians face a 21 percent cut in their 
     Medicare payment rate in 2010, and further cuts for several 
     years after that. Cuts of this magnitude could destabilize 
     the Medicare program and present serious access problems for 
     Medicare beneficiaries.
       Sec. 315. Current policy reserve fund for middle class tax 
           relief
       The reserve fund allows the Chairman of the Budget 
     Committee to adjust the House resolution aggregates and 
     allocations to reflect current policy for certain provisions 
     of the Internal Revenue Code of 1986 for middle class tax 
     relief. The reserve fund supports the extension of middle 
     class tax relief such as the 10 percent individual income tax 
     bracket, marriage penalty relief, the child credit at $1,000 
     and partial refundability of the credit, education 
     incentives, other incentives for middle class families and 
     children, and other reductions or adjustments to individual 
     income tax brackets, as well as small business tax relief.
       After the House has adopted a measure to impose statutory 
     pay-as-you-go requirements, or when a bill utilizing this 
     reserve fund includes provisions to impose statutory pay-as-
     you-go requirements, Section 401(a) of the House resolution 
     directs the chairman of the Budget Committee to make current 
     policy adjustments to the baseline before evaluating the 
     costs of the tax bill for compliance with House budget rules 
     and procedures. The adjustments may be made only for the 
     purposes and in the amounts provided in this reserve fund.
       Sec. 316. Current policy reserve fund for reform of the 
           alternative minimum tax (AMT)
       The reserve fund allows the Chairman of the Budget 
     Committee to adjust the resolution aggregates and allocations 
     to reflect current policy for the alternative minimum tax 
     (AMT) for one additional year. The reserve fund would support 
     immediate AMT relief so that tens of millions of working 
     families will not become subject to it in tax year 2010. 
     Without reform, the number of taxpayers subject to the AMT 
     will rise from 4 million in 2010 to 28 million in 2010, 
     according to the Congressional Budget Office. The House 
     resolution would accommodate further, deficit-neutral relief 
     from the AMT.
       After the House has adopted a measure to impose statutory 
     pay-as-you-go requirements, or when a bill utilizing this 
     reserve fund includes provisions to impose statutory pay-as-
     you-go requirements, Section 401(a) of the House resolution 
     directs the chairman of the Budget Committee to make current 
     policy adjustments to the baseline before evaluating the 
     costs of the tax bill for compliance with House budget rules 
     and procedures. The adjustments may be made only for the 
     purposes and in the amounts provided in this reserve fund.
       Sec. 317. Current policy reserve fund for reform of the 
           Estate and Gift Tax
       The reserve fund allows the Chairman of the Budget 
     Committee to adjust the resolution aggregates and allocations 
     to reflect current policy by extending the law as in effect 
     for 2009 for the Estate and Gift Tax. The reserve fund 
     supports continuation of 2009 policy so that only a minute 
     fraction of estates will owe tax.
       After the House has adopted a measure to impose statutory 
     pay-as-you-go requirements, or when a bill utilizing this 
     reserve fund includes provisions to impose statutory pay-as-
     you-go requirements, Section 401(a) of the House resolution 
     directs the chairman of the Budget Committee to make current 
     policy adjustments to the baseline before evaluating the 
     costs of the tax bill for compliance with House budget rules 
     and procedures. The adjustments may be made only for the 
     purposes and in the amounts provided in this reserve fund.
     Conference Agreement
       Title III of the conference agreement contains reserve 
     funds.
       Subtitle A: Senate reserve funds
       Subtitle A of the conference agreement contains the 
     following reserve funds that apply only in the Senate:
       Sec. 301. Deficit-neutral reserve fund to transform and 
     modernize America's health care system (Secs. 201 and 220 of 
     the Senate-passed resolution, as modified)
       Sec. 302. Deficit-neutral reserve fund to invest in clean 
     energy and preserve the environment (Secs. 202, 213, 221, 240 
     and 246 of the Senate-passed resolution, as modified)
       Sec. 303. Deficit-neutral reserve fund for higher education 
     (Sec. 203 of the Senate-passed resolution, as modified)
       Sec. 304. Deficit-neutral reserve fund for child nutrition 
     and WIC (Sec. 204 of the Senate-passed resolution)
       Sec. 305. Deficit-neutral reserve fund for investments in 
     America's infrastructure (Secs. 205 and 206(d) of the Senate-
     passed resolution, as modified)
       Sec. 306. Deficit-neutral reserve fund to promote economic 
     stabilization and growth (Sec. 206 of the Senate-passed 
     resolution, as modified)
       Sec. 307. Deficit-neutral reserve fund for America's 
     veterans and wounded servicemembers (Sec. 207 of the Senate-
     passed resolution, as modified)
       Sec. 308. Deficit-neutral reserve fund for judicial pay and 
     judgeships, postal retiree assistance, and certain pension 
     obligations (Secs. 208 and 230 of the Senate-passed 
     resolution, as modified)
       Sec. 309. Deficit-neutral reserve fund for defense 
     acquisition and Federal contracting reform (Secs. 209, 223, 
     232 and 301(c)(2)(E) of the Senate-passed resolution, as 
     modified)
       Sec. 310. Deficit-neutral reserve fund for investments in 
     our Nation's counties and schools (Sec. 210 of the Senate-
     passed resolution)
       Sec. 311. Deficit-neutral reserve fund for the Food and 
     Drug Administration (Sec. 211 of the Senate-passed 
     resolution)
       Sec. 312. Deficit-neutral reserve fund for a comprehensive 
     investigation into the current financial crisis (Sec. 214 of 
     the Senate-passed resolution)
       Sec. 313. Deficit-neutral reserve fund for increased 
     transparency at the Federal Reserve (Sec. 215 of the Senate-
     passed resolution)
       Sec. 314. Deficit-neutral reserve fund for 21st Century 
     community learning centers (Sec. 228 of the Senate-passed 
     resolution)
       Sec. 315. Deficit-neutral reserve fund for provision of 
     critical resources to firefighters and fire departments (Sec. 
     231 of the Senate-passed resolution)
       Sec. 316. Deficit-neutral reserve fund to promote tax 
     equity for States without personal income taxes, and other 
     selected tax relief policies (combines Sec. 238 and 
     provisions from Sec. 206 of the Senate-passed resolution, as 
     modified)
       Sec. 317. Deficit-neutral reserve fund to promote 
     individual savings and financial security (Sec. 242 of the 
     Senate-passed resolution)
       Sec. 318. Deficit-neutral reserve fund to increase FDIC and 
     NCUA borrowing authority (Sec. 249 of the Senate-passed 
     resolution, as modified)
       Sec. 319. Deficit-neutral reserve fund for improving the 
     well-being of children (Secs. 216, 227 and 235 of the Senate-
     passed resolution, as modified, and Sec. 311 of the House-
     passed resolution, as modified)
       Sec. 320. Deficit-neutral reserve fund for a 9/11 health 
     program (Sec. 306 of the House-passed resolution, as 
     modified)
       Subtitle B: House reserve funds
       Subtitle B of the conference agreement contains the 
     following reserve funds that apply only in the House:
       Sec. 321. Deficit-neutral reserve fund for health care 
     reform (Sec. 301 of the House-passed resolution)
       Sec. 322. Deficit-neutral reserve fund for college access, 
     affordability, and completion (Sec. 302 of the House-passed 
     resolution, as modified)
       Sec. 323. Deficit-neutral reserve fund for increasing 
     energy independence (Sec. 303 of the House-passed resolution)
       Sec. 324. Deficit-neutral reserve fund for America's 
     veterans and wounded servicemembers (Sec. 304 of the House-
     passed resolution, as modified)
       Sec. 325. Deficit-neutral reserve fund for certain tax 
     relief (Sec. 305 of the House-passed resolution, as modified)
       Sec. 326. Deficit-neutral reserve fund for a 9/11 health 
     program (Sec. 306 of the House-passed resolution)
       Sec. 327. Deficit-neutral reserve fund for child nutrition 
     (Sec. 307 of the House-passed resolution)
       Sec. 328. Deficit-neutral reserve fund for structural 
     unemployment insurance reforms (Sec. 308 of the House-passed 
     resolution)
       Sec. 329. Deficit-neutral reserve fund for child support 
     (Sec. 309 of the House-passed resolution)
       Sec. 330. Deficit-neutral reserve fund for the Affordable 
     Housing Trust Fund (Sec. 310 of the House-passed resolution)
       Sec. 331. Deficit-neutral reserve fund for home visiting 
     (Sec. 311 of the House-passed resolution, as modified, and 
     Sec. 227 of the Senate resolution, as modified)

[[Page 10784]]

       Sec. 332. Deficit-neutral reserve fund for low-income home 
     energy assistance program trigger (Sec. 312 of the House-
     passed resolution)
       Sec. 333. Deficit-neutral reserve fund for county payments 
     legislation (Sec. 210 of the Senate-passed resolution, as 
     modified)
       Sec. 334. Reserve fund for the surface transportation 
     reauthorization (Sec. 313 of the House-passed resolution)
       Each House reserve fund references the time periods in 
     clause 10 of rule XXI of the Rules of the House of 
     Representatives. This citation references the House pay-as-
     you-go rule, as opposed to specific years. As long as the 
     legislation described in the reserve fund complies with the 
     House pay-as-you-go rule, the chairman may make the 
     applicable adjustment.
       The House-passed budget resolution included current policy 
     adjustments in Sections 314, 315, 316, and 317. The 
     adjustments provided for in those reserve funds are addressed 
     in the conference agreement in the budget process title under 
     Section 421 (Adjustments for Direct Spending and Revenues).

                             BUDGET PROCESS

       The Senate and the House use enforcement provisions to 
     ensure that legislation is consistent with the budget plan 
     set forth in the budget resolution. The conference agreement 
     contains enforcement provisions for the Senate and House to 
     accommodate the procedures that apply to consideration of 
     legislation in each chamber.
     Senate-passed Resolution
       The FY2008 and FY2009 budget resolutions included many 
     important enforcement provisions which remain in effect in 
     the Senate. These include:
     2008 Budget Resolution (S. Con. Res. 21)
       The Senate pay-as-you-go point of order (Sec. 201);
       The 60-vote point of order against reconciliation 
     increasing the deficit (Sec 202); and
       Continued 60-vote enforcement of budgetary points of order 
     in the Senate (Sec. 205).
     2009 Budget Resolution (S. Con. Res. 70)
       The 60-vote point of order against legislation increasing 
     long-term deficits (Sec. 311); and
       The 60-vote point of order against provisions of 
     appropriations legislation that constitute changes in 
     mandatory programs (Sec. 314).
       The Senate-passed resolution for 2010, S. Con. Res. 13, 
     continues the strong budget enforcement practices of the last 
     two budget resolutions with the following modifications.
       Subtitle A--Budget Enforcement
       Sec. 301. Discretionary spending caps
       The Senate-passed resolution would strengthen fiscal 
     responsibility by establishing discretionary spending limits 
     for 2009 and 2010, and enforcing them with a point of order 
     in the Senate that could only be waived with 60 votes. For 
     2009, it provides a cap of $1,391.5 billion in budget 
     authority and $1,220.8 billion in outlays. For 2010, it sets 
     a cap of $1,079.1 billion in budget authority and $1,268.1 
     billion in outlays. As in past years, the Senate-passed 
     resolution permits adjustments to the discretionary spending 
     limits in 2010 for program integrity initiatives, such as 
     Social Security Administration continuing disability reviews 
     (CDRs) and Supplemental Security Income redeterminations, 
     enhanced Internal Revenue Service tax enforcement to address 
     the tax gap, appropriations for Health Care Fraud and Abuse 
     Control (HCFAC) program at the Department of Health and Human 
     Services, and unemployment insurance improper payments 
     reviews at the Department of Labor. It also provides for 
     adjustments in 2010 for expenses related to overseas 
     contingency operations.
       The Senate-passed resolution also includes a program 
     integrity cap adjustment dedicated to reducing waste in 
     defense contracting by recovering overpayments to defense 
     contractors, reducing wasteful spending that undermines our 
     ability to purchase equipment needed for U.S. troops and 
     combating fraud. It allows the Chairman of the Budget 
     Committee to increase the discretionary spending cap by up to 
     $100 million to accommodate legislation appropriating funding 
     for the Department of Defense for additional activities to 
     reduce waste, fraud, abuse and overpayments in defense 
     contracting or to enhance the capability of the defense 
     acquisition or contracting workforce to save taxpayer 
     resources.
       The Senate-passed resolution permits the Chairman to adjust 
     the discretionary spending limits, budget aggregates, and 
     allocations, if the CBO re-estimates the President's 2010 
     request for discretionary spending at an aggregate level 
     different from the CBO preliminary estimate dated March 20, 
     2009.
     Sec. 302. Advance appropriations
       As in past years, the Senate-passed resolution provides a 
     supermajority point of order in the Senate against 
     appropriations in 2010 bills that would first become 
     effective in any year after 2010, and against appropriations 
     in 2011 bills that would first become effective in any year 
     after 2011. It does not apply against appropriations for the 
     Corporation for Public Broadcasting or Department of Veterans 
     Affairs for the Medical Services, Medical Administration, 
     Medical Facilities, and Medical and Prosthetic Research 
     accounts of the Veterans Health Administration, nor does it 
     apply against changes in mandatory programs or deferrals of 
     mandatory budget authority from one year to the next. There 
     is an exemption for each of 2010 and 2011 of up to $28.852 
     billion (the same level as provided for in the 2009 Budget 
     Resolution) for the following:


      ACCOUNTS IDENTIFIED FOR ADVANCE APPROPRIATIONS IN THE SENATE

       Labor, HHS:
       Employment and Training Administration
       Job Corps
       Education for the Disadvantaged
       School Improvement
       Children and Family Services (Head Start)
       Special Education
       Career, Technical, and Adult Education
       Financial Services and General Government: Payment to 
     Postal Service
       Transportation, Housing and Urban Development: Tenant-based 
     Rental Assistance Project-based Rental Assistance
       Sec. 303. Emergency legislation
       The Senate-passed resolution makes technical changes in the 
     emergency legislation designation to provide consistent 
     treatment for emergency legislation with respect to 
     enforcement of various points of order and revisions pursuant 
     to deficit-neutral reserve funds.
       Sec. 304. Point of order against legislation increasing 
           short-term deficit
       The Senate-passed resolution updates the expiration date in 
     the point of order against legislation that increases the 
     short-term deficit.
       Sec. 305 Point of order against appropriations legislation 
     that includes provisions affecting the crime victims fund
       The Senate-passed resolution includes a new 60-vote point 
     of order that applies to appropriations legislation 
     containing one or more provisions that constitute a change in 
     a mandatory program that affects the Crime Victims Fund, 
     section 1402 of the Victims of Crime Act of 1984 (42 U.S.C. 
     10601).
       Sec. 306. Point of order against increasing revenues beyond 
           the levels set in the budget resolution through a 
           widespread tax increase on taxpayers with incomes below 
           $200,000 or married couples with incomes below $250,000
       The Senate-passed resolution includes a point of order in 
     the Senate against legislation that would cause revenues to 
     exceed the levels set in the budget resolution and include a 
     tax increase that would have widespread applicability on 
     taxpayers with incomes below $200,000 or married couples with 
     incomes below $250,000. The point of order could be waived 
     with 60 votes.
       Sec. 307. Point of order against increasing certain federal 
           income tax rates
       The Senate-passed resolution includes a point of order in 
     the Senate against legislation that would increase certain 
     federal tax rates. The point of order could be waived with 60 
     votes.
       Sec. 308. Point of order against legislation increasing 
           energy taxes on middle-income taxpayers
       The Senate-passed resolution includes a point of order in 
     the Senate against legislation that would increase energy 
     taxes on middle-income taxpayers. The point of order could be 
     waived with 60 votes.
       Sec. 309. Point of order against legislation imposing a 
           marriage tax penalty
       The Senate-passed resolution includes a point of order in 
     the Senate against legislation that would result in a greater 
     Federal income tax liability for taxpayers filing a joint 
     return than if such taxpayers were unmarried and had filed 
     individual tax returns. The point of order could be waived 
     with 60 votes.
       Sec. 310. Point of order against legislation causing 
           revenues to increase above the levels set in the budget 
           resolution
       The Senate-passed resolution includes a point of order in 
     the Senate against legislation that would cause revenues to 
     be more than the level of revenues established in the budget 
     resolution. The point of order could be waived with 60 votes.
       Sec. 311. Point of order against increasing taxes while 
           unemployment rate is above 5.8 percent
       The Senate-passed resolution includes a point of order in 
     the Senate against considering legislation that would 
     increase taxes if the unemployment rate exceeds 5.8 percent. 
     The point of order could be waived with 60 votes.
       Sec. 312. Point of order against legislation that causes 
           significant job loss
       The Senate-passed resolution includes a point of order in 
     the Senate against legislation that would cause revenues to 
     be more than the level of revenues set forth for the 
     applicable years in the resolution or would cause significant 
     job loss in manufacturing or coal dependent regions of the 
     United States.

[[Page 10785]]


       Sec. 313. Point of order against legislation that would 
           permit the Secretary of Veterans Affairs to recover 
           from a private health insurer of a disabled veteran 
           amounts paid for treatment of such disability
       The Senate-passed resolution includes a point of order in 
     the Senate against legislation that would permit the 
     Secretary of Veterans Affairs to recover from a private 
     health insurer of a disabled veteran amounts paid for 
     treatment of such disability.
       Sec. 314. Point of order against legislation weakening 
           terrorism laws
       The Senate-passed resolution includes a point of order in 
     the Senate against legislation that would weaken or eliminate 
     anti-terrorism tools or investigative methods.
       Sec. 315. Restrictions on unfunded mandates on state and 
           local governments
       This section of the Senate-passed resolution increases from 
     a simple majority to three-fifths of all members duly sworn 
     and chosen the number of Senators necessary to waive a point 
     of order under section 424(a)(1) of the Congressional Budget 
     Act.
       Sec. 316. Point of order on legislation that eliminates the 
           ability of Americans to keep their health plan or their 
           choice of doctor
       The Senate-passed resolution includes a point of order in 
     the Senate against legislation that eliminates the ability of 
     Americans to keep their health plan or their choice of doctor 
     as determined by the Congressional Budget Office. The point 
     of order could be waived with 60 votes.
       Subtitle B--Other Provisions
       Sec. 321. Oversight of government performance
       The Senate-passed resolution continues the provision 
     instructing Committees of the Senate to review programs 
     within their jurisdiction to root out waste, fraud, and abuse 
     in program spending, giving particular scrutiny to issues 
     raised by Government Accountability Office reports, and 
     include recommendations for improved governmental performance 
     in their annual views and estimates reports required under 
     section 301(d) of the Congressional Budget Act of 1974 to the 
     Senate Committee on the Budget.
       Sec. 322. Budgetary treatment of certain discretionary 
           administrative expenses
       The Senate-passed resolution continues the provision 
     requiring that all budget resolutions include the 
     Administrative Expenses of the Social Security Administration 
     and of the Postal Service in the 302(a) allocations of the 
     Appropriations Committee.
       Sec. 323. Application and effect of changes in allocations 
           and aggregates
       The Senate-passed resolution details the adjustment 
     procedures required to accommodate legislation provided for 
     in this resolution, and requires adjustments made to be 
     printed in the Congressional Record. For purposes of 
     enforcement, the levels resulting from adjustments made 
     pursuant to this resolution will have the same effect as if 
     adopted in the levels of Title I of this resolution. The 
     Committee on the Budget determines the budgetary levels and 
     estimates required to enforce budgetary points of order, 
     including those pursuant to this resolution and the 
     Congressional Budget Act of 1974.
       Sec. 324. Adjustments to reflect changes in concepts and 
           definitions
       The Senate-passed resolution allows the Chairman of the 
     Committee on the Budget to adjust levels in this resolution 
     upon the enactment of legislation that changes concepts or 
     definitions.
       Secs. 325 and 326. Debt disclosure
       These sections reflect an amendment adopted in the 
     Committee on the Budget regarding the levels of debt assumed 
     in the budget resolution and to require budget resolutions to 
     contain a debt disclosure section.
       Sec. 327. Exercise of rulemaking powers
       This section of the Senate-passed resolution recognizes 
     that the provisions of this resolution are adopted pursuant 
     to the rulemaking power of the Senate, and also recognizes 
     the Constitutional right of the Senate to change those rules 
     as they apply to the Senate.
     House-passed Resolution
       Sec. 401. Adjustments for Direct Spending and Revenues
       After the House has acted upon a measure to impose 
     statutory pay-as-you-go requirements, or when a bill listed 
     in a current policy reserve fund includes provisions to 
     impose statutory pay-as-you-go requirements, subsection (a) 
     of this section of the House resolution directs the chairman 
     of the Budget Committee to make current policy adjustments to 
     the baseline before evaluating the costs of certain measures 
     for compliance with House budget rules and procedures. The 
     adjustments may be made only for the purposes and in the 
     amounts provided in a current policy reserve fund. Four 
     current policy reserve funds appear in title III of the House 
     resolution as sections 314, 315, 316, and 317.
       Subsection (b) allows the chairman of the House Budget 
     Committee to adjust the 302(a) allocation to the 
     Appropriations Committee if changes to the Low-Income Home 
     Energy Assistance Program (reflected in the House 
     resolution's mandatory spending totals) are not funded in an 
     authorization bill and are included instead in an 
     appropriations measure.
       Subsection (c) updates and reinstates a provision of the 
     Budget Enforcement Act of 1990. The chairman of the House 
     Budget Committee is directed to exempt from the calculation 
     of the cost of any measure any budgetary effects of 
     legislative provisions that affect the full funding of the 
     federal deposit insurance guarantee.
       Sec. 402. Adjustments to Discretionary Spending Limits
       Section 402 of the House resolution provides for specific 
     allocation adjustments for the Committee on Appropriations 
     when the Committee reports legislation that includes 
     increased appropriations for the following program integrity 
     initiatives: (1) program integrity initiatives at the Social 
     Security Administration; (2) Internal Revenue Service tax 
     compliance; (3) the health care fraud and abuse control 
     program at the Department of Health and Human Services; and 
     (4) unemployment insurance in-person reemployment and 
     eligibility assessments and improper payment reviews. In 
     addition, a new program integrity adjustment has been added 
     this year to create the Partnership Fund for Program 
     Integrity at the Office of Management and Budget for program 
     integrity pilot initiatives across federal agencies. This 
     adjustment is intended to develop new ideas to promote 
     administrative efficiency gains and reductions in erroneous 
     payments.
       The adjustments under this section are primarily intended 
     to provide additional administrative funding for current 
     program integrity activities to eliminate errors or fraud in 
     the operation of a number of federal programs and to promote 
     compliance with federal tax laws. For example, the adjustment 
     for unemployment compensation programs is provided to 
     increase limited administrative funding for current program 
     integrity activities, and not to finance other proposals that 
     would adversely affect workers who have received unemployment 
     benefits. The section outlines procedures for these 
     allocation adjustments.
       This section also incorporates a procedure whereby 
     provisions or measures reported by the Committee on 
     Appropriations will be exempt in certain circumstances from 
     compliance with titles III and IV of the Congressional Budget 
     Act of 1974 and the budget resolution. Such an exemption 
     applies if: (1) the Committee on Appropriations determines 
     and designates that amounts appropriated are necessary for 
     overseas deployments and related activities; or (2) the 
     Committee on Appropriations provides discretionary 
     appropriations and designates those amounts as necessary to 
     meet emergency needs.
       Sec. 403. Advance Appropriations
       Section 403 of the House resolution limits the amount and 
     type of advance appropriations for fiscal years 2011 and 
     2012. Under this section, advance appropriations for fiscal 
     year 2011 are restricted to $28.852 billion for the programs, 
     projects, activities, or accounts listed below. Advances for 
     2012 are listed separately. The section defines advance 
     appropriations as any new discretionary budget authority 
     provided in a bill or joint resolution making general or 
     continuing appropriations for fiscal year 2010 that first 
     becomes available for any fiscal year after 2010.
       Advance Appropriations for Fiscal Year 2011:
       Employment and Training Administration
       Office of Job Corps
       Education for the Disadvantaged
       School Improvement Programs
       Special Education
       Career, Technical and Adult Education
       Payment to Postal Service
       Tenant-based Rental Assistance
       Project-based Rental Assistance
       Advance Appropriations for Fiscal Year 2012:
       The Corporation for Public Broadcasting
       Sec. 404. Oversight of Government Performance
       Section 404 of the House resolution encourages all 
     committees of the House to conduct rigorous oversight 
     hearings to root out waste, fraud, and abuse in federal 
     programs, with particular attention to issues raised by the 
     Office of the Inspector General or the Government 
     Accountability Office. Based on these oversight efforts, such 
     recommendations should be included in the views and estimates 
     reports submitted to the Budget Committee under section 
     301(d) of the Congressional Budget Act on 1974.
       Sec. 405. Budgetary Treatment of Certain Discretionary 
           Administrative Expenses
       Section 405 of the House resolution provides that 
     administrative expenses of the Social Security Administration 
     and of the Postal Service shall be part of the annual 
     appropriations process by including those expenses in the 
     allocation to the Committee on Appropriations pursuant to 
     section 302 of the Congressional Budget Act.
       Sec. 406. Application and Effect of Changes in Allocations 
           and Aggregates
       Section 406 of the House resolution details the allocation 
     and aggregate adjustment procedures that are required to 
     accommodate legislation for the reserve funds and program 
     integrity initiatives in the House resolution. This section 
     provides that the adjustments

[[Page 10786]]

     shall apply while the legislation is under consideration and 
     take effect upon enactment of the legislation. In addition, 
     the section requires the adjustments to be printed in the 
     Congressional Record.
       The section also notes that, for purposes of enforcement, 
     aggregate and allocation levels resulting from adjustments 
     made pursuant to the House resolution will have the same 
     effect as if adopted in the original levels of Title I of 
     this budget resolution. This section also provides that the 
     Committee on the Budget shall determine the budgetary levels 
     and estimates which are required to enforce points of order 
     under the Congressional Budget Act.
       Sec. 407. Adjustments to Reflect Changes in Concepts and 
           Definitions
       Section 407 of the House resolution requires the chairman 
     of the Committee on the Budget to adjust levels and 
     allocations in the budget resolution upon enactment of 
     legislation that changes concepts or definitions.
       Sec. 408. Exercise of Rulemaking Powers
       Section 408 of the House resolution provides that, once 
     adopted, the provisions of the budget resolution are 
     incorporated into the rules of the House of Representatives 
     and shall supersede inconsistent rules. The section 
     recognizes the constitutional right of the House of 
     Representatives to change those rules at any time.
     Conference Agreement
       Title IV contains the following budget process and 
     enforcement provisions:
       Subtitle A--Senate Provisions
       The FY2008 and FY2009 budget resolutions included many 
     important enforcement provisions which remain in effect in 
     the Senate. These include:
       2008 Budget Resolution (S. Con. Res. 21)
       The Senate pay-as-you-go point of order (Sec. 201);
       The 60-vote point of order against reconciliation 
     increasing the deficit (Sec 202); and
       Continued 60-vote enforcement of budgetary points of order 
     in the Senate (Sec. 205).
       2009 Budget Resolution (S. Con. Res. 70)
       The 60-vote point of order against legislation increasing 
     long-term deficits (Sec. 311); and
       The 60-vote point of order against provisions of 
     appropriations legislation that constitute changes in 
     mandatory programs (Sec. 314).
     Part I--Budget Enforcement
       Sec. 401. Discretionary spending limits, program integrity 
           initiatives, and other adjustments (Sec. 301 of the 
           Senate-passed resolution, as modified)
       Sec. 402. Point of order against advance appropriations 
           (Sec. 302 of the Senate-passed resolution, as modified)


      accounts identified for advance appropriations in the senate

       Labor, HHS:
       Employment and Training Administration
       Job Corps
       Education for the Disadvantaged
       School Improvement
       Children and Family Services (Head Start)
       Special Education
       Career, Technical, and Adult Education
       Financial Services and General Government: Payment to 
     Postal Service
       Transportation, Housing and Urban Development: Tenant-based 
     Rental Assistance, Project-based Rental Assistance
       Sec. 403. Emergency legislation (Sec. 303 of the Senate-
           passed resolution, as modified)
       Sec. 404. Point of order against legislation increasing 
           short-term deficit (Sec. 304 of the Senate-passed 
           resolution, as modified)
       Sec. 405. Point of order against certain legislation 
           related to surface transportation funding
     Part II--Other Provisions
       Sec. 411. Oversight of Government performance (Sec. 321 of 
           the Senate-passed resolution)
       To support the President's commitment to eliminate 
     ineffective or duplicative federal programs, the Senate 
     adopted amendments to set standards to identify failing 
     federal programs and to review inefficient programs. This 
     section retains the requirement of the Senate-passed 
     resolution requiring that committees of the Senate review 
     programs to root out waste, fraud, and abuse, giving 
     particular scrutiny to issues raised by Government 
     Accountability Office reports.
       Sec. 412. Budgetary treatment of certain discretionary 
           administrative expenses (Sec. 322 of the Senate-passed 
           resolution)
       Sec. 413. Application and effect of changes in allocations 
           and aggregates (Sec. 323 of the Senate-passed 
           resolution, as modified)
       Sec. 414. Adjustments to reflect changes in concepts and 
           definitions (Sec. 324 of the Senate-passed resolution)
       Sec. 415. Exercise of rulemaking powers (Sec. 302 of the 
           Senate-passed resolution)
       Subtitle B--House Enforcement Provisions
       Sec. 421. Adjustments for direct spending and revenues--
       Sec. 421(a).--Adjustments for current policy
       This subsection provides that after the House has adopted a 
     measure to impose statutory paygo requirements (or if such 
     measure is included as part of the legislation under 
     consideration), the Chairman of the House Budget Committee 
     may make current policy adjustments to the baseline before 
     evaluating the costs of certain measures for compliance with 
     House budget rules and procedures. The adjustments may only 
     be made for the purposes and in the amounts provided in 
     paragraph (a)(2). This subsection, as revised, replaces 
     sections 314, 315, 316 and 317 of the House-passed 
     resolution. Subsection (a)(4) allows the chairman of the 
     House Budget Committee to adjust the 302(a) allocations and 
     aggregates as may be necessary to reflect the current policy 
     adjustments.
       Sec. 421(b).--Deposit insurance (Sec. 401(c) of the House-
           passed resolution)
       Sec. 422. Adjustments to discretionary spending (Sec. 402 
           of the House-passed resolution, as modified)
       Sec. 423. Costs of overseas deployments and emergency needs 
           (Sec. 402(b) of the House-passed resolution, as 
           modified)
       Sec. 424. Point of order against advance appropriations 
           (Sec. 403 of the House-passed resolution, as modified)
       Accounts identified for advance appropriations in the 
     House:
       Sec. 424(b)(1) Advance Appropriations for Fiscal Year 2011:
       Employment and Training Administration
       Office of Job Corps
       Education for the Disadvantaged
       School Improvement Programs
       Special Education
       Career, Technical and Adult Education
       Payment to Postal Service
       Tenant-based Rental Assistance
       Project-based Rental Assistance
       Sec. 424(b)(1) Advance Appropriations for Fiscal Year 2012:
       The Corporation for Public Broadcasting
       Sec. 424(b)(2) Advance Appropriations for Fiscal Year 2011:
       VA--Medical Services
       VA--Medical Support and Compliance
       VA--Medical Facilities
       Sec. 425. Oversight of Government Performance (Sec. 404 of 
           the House-passed resolution)
       Sec. 426. Budgetary Treatment of Certain Discretionary 
           Administrative Expenses (Sec. 405 of the House-passed 
           resolution)
       Sec. 427. Application and Effects of Changes in Allocations 
           and Aggregates (Sec. 406 of the House-passed 
           resolution)
       Sec. 428. Adjustments to Reflect Changes In Concepts and 
           Definitions (Sec. 407 of the House-passed resolution)
       Sec. 429. Exercise of Rulemaking Powers (Sec. 408 of the 
           House-passed resolution)

                                 POLICY

     Senate-passed Resolution
       The Senate-passed resolution did not contain a policy 
     statement title.
     House-passed Resolution
       Title V of the House-passed resolution contains the 
     following policy sections:
       Sec. 501. Policy on middle-class tax relief and revenues 
       Sec. 502. Policy on defense priorities 
     Conference Agreement
       Title V of the conference agreement contains the following 
     policy sections, which apply to both Houses:
       Sec. 501. Policy on middle-class tax relief and revenues 
     (Sec. 501 of the House-passed resolution, as modified)
       Sec. 502. Policy on defense priorities (Sec. 502 of the 
     House-passed resolution, as modified)

                SENSE OF THE SENATE, HOUSE AND CONGRESS

     Senate-passed Resolution
       The Senate resolution did not contain a sense of the Senate 
     title.
     House-passed Resolution
       Title VI of the House-passed resolution contains the 
     following Sense of the House sections:
       Sec. 601. Sense of the House on veterans' and 
     servicemembers' health care
       Sec. 602. Sense of the House on homeland security
       Sec. 603. Sense of the House on promoting American 
     innovation and economic competitiveness
       Sec. 604. Sense of the House regarding pay parity
       Sec. 605. Sense of the House on college affordability
       Sec. 606. Sense of the House on Great Lakes restoration
       Sec. 607. Sense of the House regarding the importance of 
     child support enforcement
     Conference Agreement
       Title VI of the conference agreement contains the following 
     Sense of Congress provisions:
       Sec. 601. Sense of the Congress on veterans' and 
     servicemembers' health care (Sec. 601 of the House-passed 
     resolution, as modified)
       Sec. 602. Sense of the Congress on homeland security (Sec. 
     602 of the House-passed resolution, as modified)
       Sec. 603. Sense of the Congress on promoting American 
     innovation and economic competitiveness (Sec. 603 of the 
     House-passed resolution, as modified)

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       Sec. 604. Sense of the Congress regarding pay parity (Sec. 
     604 of the House-passed resolution, as modified)
       Sec. 605. Sense of the Congress on college affordability 
     and student loan reform (Sec. 605 of the House-passed 
     resolution, as modified)
       Sec. 606. Sense of the Congress on Great Lakes restoration 
     (Sec. 606 of the House-passed resolution, as modified)
       Sec. 607. Sense of the Congress regarding the importance of 
     child support enforcement (Sec. 607 of the House-passed 
     resolution, as modified)

                          ECONOMIC ASSUMPTIONS

       Section 301(g)(2) of the Congressional Budget Act requires 
     that the joint explanatory statement accompanying a 
     conference report on a budget resolution set forth the common 
     economic assumptions upon which the joint statement and 
     conference report are based. The conference agreement is 
     built upon the economic forecasts developed by the 
     Congressional Budget Office, as updated in March 2009 to 
     include the forecasted economic effects of the fiscal 
     stimulus package.
     Senate-passed Resolution
       CBO's economic assumptions were used.
     House-passed Resolution
       CBO's economic assumptions were used.
     Conference Agreement
       CBO's economic assumptions were used.

                                  ECONOMIC ASSUMPTIONS OF THE BUDGET RESOLUTION
                                                [Calendar Years]
----------------------------------------------------------------------------------------------------------------
                                                                   2009    2010    2011    2012    2013    2014
----------------------------------------------------------------------------------------------------------------
Real GDP, Percent Change, Year Over Year........................    -3.0     2.9     4.0     4.1     4.0     3.5
GDP Price Index, Percent Change, Year Over Year.................     1.5     0.8     0.5     0.6     0.6     0.9
Consumer Prices, Percent Change, Year Over Year.................    -0.7     1.4     1.2     1.0     1.0     1.2
Unemployment Rate, Percent, Yearly Average......................     8.8     9.0     7.7     6.6     5.7     5.1
3-Month Treasury Bill Rate, Percent, Yearly Average.............     0.3     0.9     1.8     3.0     3.9     4.4
10-Year Treasury Bond Rate, Percent, Yearly Average.............     2.9     3.4     4.0     4.6     5.0     5.3
----------------------------------------------------------------------------------------------------------------

                              ALLOCATIONS

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

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   PAY-AS-YOU-GO SCORECARD FOR THE SENATE REFLECTING LEVELS FOR THE 
                          CONFERENCE AGREEMENT

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

        RULE XXVIII OF THE RULES OF THE HOUSE OF REPRESENTATIVES

       The adoption of this conference agreement by the two houses 
     would result in the engrossment of a House joint resolution 
     changing the statutory limit on the public debt pursuant to 
     clause 3 of rule XXVIII of the Rules of the House of 
     Representatives. The rule requires a joint resolution in the 
     following form:
       ``Resolved, by the Senate and the House of Representatives 
     of the United States in Congress assembled, that subsection 
     (b) of section 3101 of title 31, United States Code, is 
     amended by striking out the dollar limitation contained in 
     such subsection and inserting in lieu thereof 
     $13,029,000,000,000.''
       Legislative jurisdiction over the public debt remains with 
     the Finance Committee in the Senate and the Committee on Ways 
     and Means in the House.
     John M. Spratt, Jr.,
     Rosa L. DeLauro,
     Allen Boyd,
                                Managers on the Part of the House.

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

                          ____________________