[Congressional Record (Bound Edition), Volume 156 (2010), Part 10]
[Senate]
[Pages 14569-14577]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 4562. Mr. MENENDEZ submitted an amendment intended to be proposed 
to amendment SA 4557 submitted by Mr. Menendez and intended to be 
proposed to the amendment SA 4519 proposed by Mr. Reid (for himself, 
Mr. Baucus, and Ms. Landrieu) to the bill H.R. 5297, to create the 
Small Business Lending Fund Program to direct the Secretary of the 
Treasury to make capital investments in eligible institutions in order 
to increase the availability of credit for small businesses, to amend 
the Internal Revenue Code of 1986 to provide tax incentives for small 
business job creation, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page 1, strike line 3 and all that follows through page 
     2, line 2, and insert the following:
       (v) Nonowner-occupied commercial real estate loans.
       (vi)(I) Loans secured by real estate--

       (aa) that are made to finance--

       (AA) land development that is preparatory to erecting new 
     structures, including improving land, laying sewers, and 
     laying water pipes; or
       (BB) the on-site construction of industrial, commercial, 
     residential, or farm buildings;

       (bb) that is vacant land, except land known to be used or 
     usable for agricultural purposes, such as crop and livestock 
     production;
       (cc) the proceeds of which are to be used to acquire and 
     improve developed or undeveloped property; or
       (dd) that are made under title I of the National Housing 
     Act (12 U.S.C. 1702 et seq.).

       (II) Subclause (I) shall only apply to loans that are 
     extended to small business concerns (as defined under section 
     3 of the Small Business Act (15 U.S.C. 632)) in the 
     construction industry, as such term is defined by the 
     Secretary in consultation with the Administrator of the Small 
     Business Administration.
       (III) For purposes of this clause, the term 
     ``construction'' includes the construction of new structures, 
     additions or alterations to existing structures, and the 
     demolition of existing structures to make way for new 
     structures.
       (B) Limitation.--Notwithstanding subparagraph (A), a loan 
     shall constitute small business lending only if it is made to 
     a small business concerns (as defined under section 3 of the 
     Small Business Act (15 U.S.C. 632)).
                                 ______
                                 
  SA 4563. Mrs. HUTCHISON submitted an amendment intended to be 
proposed

[[Page 14570]]

to amendment SA 4519 proposed by Mr. Reid (for himself, Mr. Baucus, and 
Ms. Landrieu) to the bill H.R. 5297, to create the Small Business 
Lending Fund Program to direct the Secretary of the Treasury to make 
capital investments in eligible institutions in order to increase the 
availability of credit for small businesses, to amend the Internal 
Revenue Code of 1986 to provide tax incentives for small business job 
creation, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end of subtitle B, add the following:

    PART ___--TITLE 17 INNOVATIVE TECHNOLOGY LOAN GUARANTEE PROGRAM

     SEC. 4___. TITLE 17 INNOVATIVE TECHNOLOGY LOAN GUARANTEE 
                   PROGRAM.

       (a) Funding.--The matter under the heading ``Title 17 
     Innovative Technology Loan Guarantee Program'' of title III 
     of division C of the Omnibus Appropriations Act, 2009 (Public 
     Law 111-8; 123 Stat. 619) is amended, in the matter preceding 
     the first proviso--
       (1) by striking ``$47,000,000,000'' and inserting 
     ``$56,000,000,000''; and
       (2) by striking ``$18,500,000,000'' and inserting 
     ``$27,500,000,000''.
       (b) Use of Stimulus Funds To Offset Spending.--
       (1) In general.--The unobligated balance of each amount 
     appropriated or made available under the American Recovery 
     and Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 
     115) (other than under title X of division A of that Act) is 
     rescinded, on a pro rata basis, by an aggregate amount that 
     equals the amounts necessary to offset any net increase in 
     spending or foregone revenues resulting from this section and 
     the amendments made by this section.
       (2) Report.--The Director of the Office of Management and 
     Budget shall submit to each congressional committee the 
     amounts rescinded under paragraph (1) that are within the 
     jurisdiction of the committee.
                                 ______
                                 
  SA 4564. Mr. REED submitted an amendment intended to be proposed to 
amendment SA 4519 proposed by Mr. Reid (for himself, Mr. Baucus, and 
Ms. Landrieu) to the bill H.R. 5297, to create the Small Business 
Lending Fund Program to direct the Secretary of the Treasury to make 
capital investments in eligible institutions in order to increase the 
availability of credit for small businesses, to amend the Internal 
Revenue Code of 1986 to provide tax incentives for small business job 
creation, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 130 of the amendment, after line 25, insert the 
     following:

     SEC. 1705. COMMUNITY DEVELOPMENT FUNDS.

       Chapter 11 of title I of the Supplemental Appropriations 
     Act, 2010, is amended by striking the heading ``Community 
     Development Fund'' and all the matter that follows through 
     the ninth proviso under such heading and inserting the 
     following:

                      ``community development fund

       ``For an additional amount for the `Community Development 
     Fund', for necessary expenses related to disaster relief, 
     long-term recovery, and restoration of infrastructure, 
     housing, and economic revitalization in areas affected by 
     flooding for which the President declared a major disaster 
     between March 29, 2010, and May 7, 2010, which included 
     Individual Assistance for an entire State or not fewer than 
     45 counties within a State under title IV of the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act of 
     1974, $100,000,000, to remain available until expended, for 
     activities authorized under title I of the Housing and 
     Community Development Act of 1974 (Public Law 93-383): 
     Provided, That funds shall be awarded directly to the State 
     or unit of general local government at the discretion of the 
     Secretary: Provided further, That prior to the obligation of 
     funds a grantee shall submit a plan to the Secretary 
     detailing the proposed use of all funds, including criteria 
     for eligibility and how the use of these funds will address 
     long-term recovery and restoration of infrastructure: 
     Provided further, That funds provided under this heading may 
     be used by a State or locality as a matching requirement, 
     share, or contribution for any other Federal program: 
     Provided further, That such funds may not be used for 
     activities reimbursable by, or for which funds are made 
     available by, the Federal Emergency Management Agency or the 
     Army Corps of Engineers: Provided further, That funds 
     allocated under this heading shall not adversely affect the 
     amount of any formula assistance received by a State or 
     subdivision thereof under the Community Development Fund: 
     Provided further, That a State or subdivision thereof may use 
     up to 5 percent of its allocation for administrative costs: 
     Provided further, That in administering the funds under this 
     heading, the Secretary of Housing and Urban Development may 
     waive, or specify alternative requirements for, any provision 
     of any statute or regulation that the Secretary administers 
     in connection with the obligation by the Secretary or the use 
     by the recipient of these funds or guarantees (except for 
     requirements related to fair housing, nondiscrimination, 
     labor standards, and the environment), upon a request by a 
     State or subdivision thereof explaining why such waiver is 
     required to facilitate the use of such funds or guarantees, 
     if the Secretary finds that such waiver would not be 
     inconsistent with the overall purpose of title I of the 
     Housing and Community Development Act of 1974: Provided 
     further, That the Secretary shall publish in the Federal 
     Register any waiver of any statute or regulation that the 
     Secretary administers pursuant to title I of the Housing and 
     Community Development Act of 1974 no later than 5 days before 
     the effective date of such waiver: Provided further, That the 
     Secretary shall obligate to a State or subdivision thereof 
     not less than 50 percent of the funding provided under this 
     heading within 90 days after the enactment of this Act: 
     Provided further, That not more than 50 percent of the 
     funding provided under this heading shall be allocated to any 
     State (including units of general local government).''.
                                 ______
                                 
  SA 4565. Mr. REED submitted an amendment intended to be proposed to 
amendment SA 4519 proposed by Mr. Reid (for himself, Mr. Baucus, and 
Ms. Landrieu) to the bill H.R. 5297, to create the Small Business 
Lending Fund Program to direct the Secretary of the Treasury to make 
capital investments in eligible institutions in order to increase the 
availability of credit for small businesses, to amend the Internal 
Revenue Code of 1986 to provide tax incentives for small business job 
creation, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end of subtitle A of title IV, add the following:

     SEC. 41__. ECONOMIC DEVELOPMENT ASSISTANCE PROGRAMS.

       In chapter 2 of title I of the Act entitled ``An Act making 
     supplemental appropriations for the fiscal year ending 
     September 30, 2010, and for other purposes'', strike the 
     matter under the heading ``economic development assistance 
     programs'' under the heading ``Economic Development 
     Administration'' under the heading ``DEPARTMENT OF COMMERCE'' 
     and insert the following:
       ``Pursuant to section 703 of the Public Works and Economic 
     Development Act of 1965 (42 U.S.C. 3233), for an additional 
     amount for ```Economic Development Assistance Programs''', 
     for necessary expenses relating to disaster relief, long-term 
     recovery, and restoration of infrastructure in areas affected 
     by flooding for which the President declared a major disaster 
     during the period beginning on March 29, 2010, and ending on 
     May 7, 2010, which included individual assistance for an 
     entire State or not fewer than 45 counties within a State 
     under title IV of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5170 et seq.), 
     $49,000,000, to remain available until expended: Provided, 
     That not more than 50 percent of the amount provided under 
     this heading shall be allocated to any State.''.

                                 ______
                                 
  SA 4566. Mr. WEBB submitted an amendment intended to be proposed by 
him to the bill S. 3454, to authorize appropriations for fiscal year 
2011 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end of subtitle D of title VI, add the following:

     SEC. 633. SURVIVOR BENEFIT PLAN ANNUITIES FOR SPECIAL NEEDS 
                   TRUSTS ESTABLISHED FOR THE BENEFIT OF DEPENDENT 
                   CHILDREN INCAPABLE OF SELF-SUPPORT.

       (a) Special Needs Trust as Eligible Beneficiary.--
       (1) In general.--Subsection (a) of section 1450 of title 
     10, United States Code, is amended--
       (A) by redesignating paragraph (4) as paragraph (5); and
       (B) by inserting after paragraph (3) the following new 
     paragraph (4):
       ``(4) Special needs trusts for sole benefit of certain 
     dependent children.--Notwithstanding subsection (i), a 
     supplemental or special needs trust established under 
     subparagraph (A) or (C) of section 1917(d)(4) of the Social 
     Security Act (42 U.S.C. 1396p(d)(4)) for the sole benefit of 
     a dependent child considered disabled under section 
     1614(a)(3) of that Act (42 U.S.C. 1382c(a)(3)) who is 
     incapable of self-support because of mental or physical 
     incapacity.''.
       (2) Conforming amendment.--Subsection (i) of such section 
     is amended by inserting ``(a)(4) or'' after ``subsection''.
       (b) Regulations.--Section 1455(d) of such title is 
     amended--
       (1) in the subsection caption, by striking ``and 
     Fiduciaries'' and inserting ``, Fiduciaries, and Special 
     Needs Trusts'';

[[Page 14571]]

       (2) in paragraph (1)--
       (A) in subparagraph (A), by striking ``and'' at the end;
       (B) in subparagraph (B), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following new subparagraph:
       ``(C) a dependent child incapable of self-support because 
     of mental or physical incapacity for whom a supplemental or 
     special needs trust has been established under subparagraph 
     (A) or (C) of section 1917(d)(4) of the Social Security Act 
     (42 U.S.C. 1396p(d)(4)).'';
       (3) in paragraph (2)--
       (A) by redesignating subparagraphs (C) through (H) as 
     subparagraphs (D) through (I), respectively;
       (B) by inserting after subparagraph (B) the following new 
     subparagraph (C):
       ``(C) In the case of an annuitant referred to in paragraph 
     (1)(C), payment of the annuity to the supplemental or special 
     needs trust established for the annuitant.'';
       (C) in subparagraph (D), as redesignated by subparagraph 
     (A) of this paragraph, by striking ``subparagraphs (D) and 
     (E)'' and inserting ``subparagraphs (E) and (F)''; and
       (D) in subparagraph (H), as so redesignated--
       (i) by inserting ``or (1)(C)'' after ``paragraph (1)(B)'' 
     in the matter preceding clause (i);
       (ii) in clause (i), by striking ``and'' at the end;
       (iii) in clause (ii), by striking the period at the end and 
     inserting ``; and''; and
       (iv) by adding at the end the following new clause:
       ``(iii) procedures for determining when annuity payments to 
     a supplemental or special needs trust shall end based on the 
     death or marriage of the dependent child for which the trust 
     was established.''; and
       (4) in paragraph (3), by striking ``or fiduciary'' in the 
     paragraph caption and inserting ``, fiduciary, or trust''.
                                 ______
                                 
  SA 4567. Mr. REID (for Mrs. Murray (for herself, Mr. Harkin, Mr. 
Reid, and Mr. Schumer)) proposed an amendment to the bill H.R. 1586, to 
modernize the air traffic control system, improve the safety, 
reliability, and availability of transportation by air in the United 
States, provide for modernization of the air traffic control system, 
reauthorize the Federal Aviation Administration, and for other 
purposes; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:


                              short title

       Section 1. This Act may be cited as the ``______ Act of 
     ____''.

                                TITLE I

                          EDUCATION JOBS FUND


                          education jobs funds

       Sec. 101. There are authorized to be appropriated and there 
     are appropriated out of any money in the Treasury not 
     otherwise obligated for necessary expenses for an Education 
     Jobs Fund, $10,000,000,000: Provided, That the amount under 
     this heading shall be administered under the terms and 
     conditions of sections 14001 through 14013 and title XV of 
     division A of the American Recovery and Reinvestment Act of 
     2009 (Public Law 111-5) except as follows:
       (1) Allocation of funds.--
       (A) Funds appropriated under this heading shall be 
     available only for allocation by the Secretary of Education 
     (in this heading referred to as the Secretary) in accordance 
     with subsections (a), (b), (d), (e), and (f) of section 14001 
     of division A of Public Law 111-5 and subparagraph (B) of 
     this paragraph, except that the amount reserved under such 
     subsection (b) shall not exceed $1,000,000 and such 
     subsection (f) shall be applied by substituting one year for 
     two years.
       (B) Prior to allocating funds to States under section 
     14001(d) of division A of Public Law 111-5, the Secretary 
     shall allocate 0.5 percent to the Secretary of the Interior 
     for schools operated or funded by the Bureau of Indian 
     Affairs on the basis of the schools' respective needs for 
     activities consistent with this heading under such terms and 
     conditions as the Secretary of the Interior may determine.
       (2) Reservation.--A State that receives an allocation of 
     funds appropriated under this heading may reserve not more 
     than 2 percent for the administrative costs of carrying out 
     its responsibilities with respect to those funds.
       (3) Awards to local educational agencies.--
       (A) Except as specified in paragraph (2), an allocation of 
     funds to a State shall be used only for awards to local 
     educational agencies for the support of elementary and 
     secondary education in accordance with paragraph (5) for the 
     2010-2011 school year (or, in the case of reallocations made 
     under section 14001(f) of division A of Public Law 111-5, for 
     the 2010-2011 or the 2011-2012 school year).
       (B) Funds used to support elementary and secondary 
     education shall be distributed through a State's primary 
     elementary and secondary funding formulae or based on local 
     educational agencies' relative shares of funds under part A 
     of title I of the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 6311 et seq.) for the most recent fiscal year 
     for which data are available.
       (C) Subsections (a) and (b) of section 14002 of division A 
     of Public Law 111-5 shall not apply to funds appropriated 
     under this heading.
       (4) Compliance with education reform assurances.--For 
     purposes of awarding funds appropriated under this heading, 
     any State that has an approved application for Phase II of 
     the State Fiscal Stabilization Fund that was submitted in 
     accordance with the application notice published in the 
     Federal Register on November 17, 2009 (74 Fed. Reg. 59142) 
     shall be deemed to be in compliance with subsection (b) and 
     paragraphs (2) through (5) of subsection (d) of section 14005 
     of division A of Public Law 111-5.
       (5) Requirement to use funds to retain or create education 
     jobs.--Notwithstanding section 14003(a) of division A of 
     Public Law 111-5, funds awarded to local educational agencies 
     under paragraph (3)--
       (A) may be used only for compensation and benefits and 
     other expenses, such as support services, necessary to retain 
     existing employees, to recall or rehire former employees, and 
     to hire new employees, in order to provide early childhood, 
     elementary, or secondary educational and related services; 
     and
       (B) may not be used for general administrative expenses or 
     for other support services expenditures as those terms were 
     defined by the National Center for Education Statistics in 
     its Common Core of Data as of the date of enactment of this 
     Act.
       (6) Prohibition on use of funds for rainy-day funds or debt 
     retirement.--A State that receives an allocation may not use 
     such funds, directly or indirectly, to--
       (A) establish, restore, or supplement a rainy-day fund;
       (B) supplant State funds in a manner that has the effect of 
     establishing, restoring, or supplementing a rainy-day fund;
       (C) reduce or retire debt obligations incurred by the 
     State; or
       (D) supplant State funds in a manner that has the effect of 
     reducing or retiring debt obligations incurred by the State.
       (7) Deadline for award.--The Secretary shall award funds 
     appropriated under this heading not later than 45 days after 
     the date of the enactment of this Act to States that have 
     submitted applications meeting the requirements applicable to 
     funds under this heading. The Secretary shall not require 
     information in applications beyond what is necessary to 
     determine compliance with applicable provisions of law.
       (8) Alternate distribution of funds.--If, within 30 days 
     after the date of the enactment of this Act, a Governor has 
     not submitted an approvable application, the Secretary shall 
     provide for funds allocated to that State to be distributed 
     to another entity or other entities in the State 
     (notwithstanding section 14001(e) of division A of Public Law 
     111-5) for support of elementary and secondary education, 
     under such terms and conditions as the Secretary may 
     establish, provided that all terms and conditions that apply 
     to funds appropriated under this heading shall apply to such 
     funds distributed to such entity or entities. No distribution 
     shall be made to a State under this paragraph, however, 
     unless the Secretary has determined (on the basis of such 
     information as may be available) that the requirements of 
     clauses (i), (ii), or (iii) of paragraph 10(A) are likely to 
     be met, notwithstanding the lack of an application from the 
     Governor of that State.
       (9) Local educational agency application.--Section 442 of 
     the General Education Provisions Act shall not apply to a 
     local educational agency that has previously submitted an 
     application to the State under title XIV of division A of 
     Public Law 111-5. The assurances provided under that 
     application shall continue to apply to funds awarded under 
     this heading.
       (10) Maintenance of effort.--
       (A) Except as provided in paragraph (8), the Secretary 
     shall not allocate funds to a State under paragraph (1) 
     unless the Governor of the State provides an assurance to the 
     Secretary that--
       (i) for State fiscal year 2011, the State will maintain 
     State support for elementary and secondary education (in the 
     aggregate or on the basis of expenditures per pupil) and for 
     public institutions of higher education (not including 
     support for capital projects or for research and development 
     or tuition and fees paid by students) at not less than the 
     level of such support for each of the two categories, 
     respectively, for State fiscal year 2009;
       (ii) for State fiscal year 2011, the State will maintain 
     State support for elementary and secondary education and for 
     public institutions of higher education (not including 
     support for capital projects or for research and development 
     or tuition and fees paid by students) at a percentage of the 
     total revenues available to the State that is equal to or 
     greater than the percentage provided for each of the two 
     categories, respectively, for State fiscal year 2010; or
       (iii) in the case of a State in which State tax collections 
     for calendar year 2009 were less than State tax collections 
     for calendar year 2006, for State fiscal year 2011 the State 
     will maintain State support for elementary and secondary 
     education (in the aggregate) and for public institutions of 
     higher education (not including support for capital

[[Page 14572]]

     projects or for research and development or tuition and fees 
     paid by students)--

       (I) at not less than the level of such support for each of 
     the two categories, respectively, for State fiscal year 2006; 
     or
       (II) at a percentage of the total revenues available to the 
     State that is equal to or greater than the percentage 
     provided for each of the two categories, respectively, for 
     State fiscal year 2006.

       (B) Section 14005(d)(1) and subsections (a) through (c) of 
     section 14012 of division A of Public Law 111-5 shall not 
     apply to funds appropriated under this heading.
       (11) Additional requirements for the state of texas.--The 
     following requirements shall apply to the State of Texas:
       (A) Notwithstanding paragraph (3)(B), funds used to support 
     elementary and secondary education shall be distributed based 
     on local educational agencies' relative shares of funds under 
     part A of title I of the Elementary and Secondary Education 
     Act of 1965 (20 U.S.C. 6311 et seq.) for the most recent 
     fiscal year which data are available. Funds distributed 
     pursuant to this paragraph shall be used to supplement and 
     not supplant State formula funding that is distributed on a 
     similar basis to part A of title I of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.).
       (B) The Secretary shall not allocate funds to the State of 
     Texas under paragraph (1) unless the Governor of the State 
     provides an assurance to the Secretary that the State will 
     for fiscal years 2011, 2012, and 2013 maintain State support 
     for elementary and secondary education at a percentage of the 
     total revenues available to the State that is equal to or 
     greater than the percentage provided for such purpose for 
     fiscal year 2011 prior to the enactment of this Act.
       (C) Notwithstanding paragraph (8), no distribution shall be 
     made to the State of Texas or local education agencies 
     therein unless the Governor of Texas makes an assurance to 
     the Secretary that the requirements in paragraphs (11)(A) and 
     (11)(B) will be met, notwithstanding the lack of an 
     application from the Governor of Texas.

  TITLE II--STATE FISCAL RELIEF AND OTHER PROVISIONS; REVENUE OFFSETS

          Subtitle A--State Fiscal Relief and Other Provisions


                   extension of arra increase in fmap

       Sec. 201. 
       Section 5001 of the American Recovery and Reinvestment Act 
     of 2009 (Public Law 111-5) is amended--
       (1) in subsection (a)(3), by striking ``first calendar 
     quarter'' and inserting ``first 3 calendar quarters'';
       (2) in subsection (b)--
       (A) in paragraph (1), by striking ``paragraph (2)'' and 
     inserting ``paragraphs (2) and (3)''; and
       (B) by adding at the end the following:
       ``(3) Phase-down of general increase.--
       ``(A) Second quarter of fiscal year 2011.--For each State, 
     for the second quarter of fiscal year 2011, the FMAP 
     percentage increase for the State under paragraph (1) or (2) 
     (as applicable) shall be 3.2 percentage points.
       ``(B) Third quarter of fiscal year 2011.--For each State, 
     for the third quarter of fiscal year 2011, the FMAP 
     percentage increase for the State under paragraph (1) or (2) 
     (as applicable) shall be 1.2 percentage points.'';
       (3) in subsection (c)--
       (A) in paragraph (2)(B), by striking ``July 1, 2010'' and 
     inserting ``January 1, 2011'';
       (B) in paragraph (3)(B)(i), by striking ``July 1, 2010'' 
     and inserting ``January 1, 2011'' each place it appears; and
       (C) in paragraph (4)(C)(ii), by striking ``the 3-
     consecutive-month period beginning with January 2010'' and 
     inserting ``any 3-consecutive-month period that begins after 
     December 2009 and ends before January 2011'';
       (4) in subsection (e), by adding at the end the following:

     ``Notwithstanding paragraph (5), effective for payments made 
     on or after January 1, 2010, the increases in the FMAP for a 
     State under this section shall apply to payments under title 
     XIX of such Act that are attributable to expenditures for 
     medical assistance provided to nonpregnant childless adults 
     made eligible under a State plan under such title (including 
     under any waiver under such title or under section 1115 of 
     such Act (42 U.S.C. 1315)) who would have been eligible for 
     child health assistance or other health benefits under 
     eligibility standards in effect as of December 31, 2009, of a 
     waiver of the State child health plan under the title XXI of 
     such Act.'';
       (5) in subsection (g)--
       (A) in paragraph (1), by striking ``September 30, 2011'' 
     and inserting ``March 31, 2012'';
       (B) in paragraph (2), by inserting ``of such Act'' after 
     ``1923''; and
       (C) by adding at the end the following:
       ``(3) Certification by chief executive officer.--No 
     additional Federal funds shall be paid to a State as a result 
     of this section with respect to a calendar quarter occurring 
     during the period beginning on January 1, 2011, and ending on 
     June 30, 2011, unless, not later than 45 days after the date 
     of enactment of this paragraph, the chief executive officer 
     of the State certifies that the State will request and use 
     such additional Federal funds.''; and
       (6) in subsection (h)(3), by striking ``December 31, 2010'' 
     and inserting ``June 30, 2011''.


       treatment of certain drugs for computation of medicaid amp

       Sec. 202. 
       Effective as if included in the enactment of Public Law 
     111-148, section 1927(k)(1)(B)(i)(IV) of the Social Security 
     Act (42 U.S.C. 1396r-8(k)(1)(B)(i)(IV)), as amended by 
     section 2503(a)(2)(B) of Public Law 111-148 and section 
     1101(c)(2) of Public Law 111-152, is amended by adding at the 
     end the following: ``, unless the drug is an inhalation, 
     infusion, instilled, implanted, or injectable drug that is 
     not generally dispensed through a retail community pharmacy; 
     and''.


    sunset of temporary increase in benefits under the supplemental 
                      nutrition assistance program

       Sec. 203. 
       Section 101(a) of title I of division A of Public Law 111-5 
     (123 Stat. 120), as amended by section 4262 of this Act, is 
     amended by striking paragraph (2) and inserting the 
     following:
       ``(2) Termination.--The authority provided by this 
     subsection shall terminate after March 31, 2015.''.

                      Subtitle B--Revenue Offsets


rules to prevent splitting foreign tax credits from the income to which 
                              they relate

       Sec. 211. 
       (a) In General.--Subpart A of part III of subchapter N of 
     chapter 1 of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following new section:

     ``SEC. 909. SUSPENSION OF TAXES AND CREDITS UNTIL RELATED 
                   INCOME TAKEN INTO ACCOUNT.

       ``(a) In General.--If there is a foreign tax credit 
     splitting event with respect to a foreign income tax paid or 
     accrued by the taxpayer, such tax shall not be taken into 
     account for purposes of this title before the taxable year in 
     which the related income is taken into account under this 
     chapter by the taxpayer.
       ``(b) Special Rules With Respect to Section 902 
     Corporations.--If there is a foreign tax credit splitting 
     event with respect to a foreign income tax paid or accrued by 
     a section 902 corporation, such tax shall not be taken into 
     account--
       ``(1) for purposes of section 902 or 960, or
       ``(2) for purposes of determining earnings and profits 
     under section 964(a),
     before the taxable year in which the related income is taken 
     into account under this chapter by such section 902 
     corporation or a domestic corporation which meets the 
     ownership requirements of subsection (a) or (b) of section 
     902 with respect to such section 902 corporation.
       ``(c) Special Rules.--For purposes of this section--
       ``(1) Application to partnerships, etc.--In the case of a 
     partnership, subsections (a) and (b) shall be applied at the 
     partner level. Except as otherwise provided by the Secretary, 
     a rule similar to the rule of the preceding sentence shall 
     apply in the case of any S corporation or trust.
       ``(2) Treatment of foreign taxes after suspension.--In the 
     case of any foreign income tax not taken into account by 
     reason of subsection (a) or (b), except as otherwise provided 
     by the Secretary, such tax shall be so taken into account in 
     the taxable year referred to in such subsection (other than 
     for purposes of section 986(a)) as a foreign income tax paid 
     or accrued in such taxable year.
       ``(d) Definitions.--For purposes of this section--
       ``(1) Foreign tax credit splitting event.--There is a 
     foreign tax credit splitting event with respect to a foreign 
     income tax if the related income is (or will be) taken into 
     account under this chapter by a covered person.
       ``(2) Foreign income tax.--The term `foreign income tax' 
     means any income, war profits, or excess profits tax paid or 
     accrued to any foreign country or to any possession of the 
     United States.
       ``(3) Related income.--The term `related income' means, 
     with respect to any portion of any foreign income tax, the 
     income (or, as appropriate, earnings and profits) to which 
     such portion of foreign income tax relates.
       ``(4) Covered person.--The term `covered person' means, 
     with respect to any person who pays or accrues a foreign 
     income tax (hereafter in this paragraph referred to as the 
     `payor')--
       ``(A) any entity in which the payor holds, directly or 
     indirectly, at least a 10 percent ownership interest 
     (determined by vote or value),
       ``(B) any person which holds, directly or indirectly, at 
     least a 10 percent ownership interest (determined by vote or 
     value) in the payor,
       ``(C) any person which bears a relationship to the payor 
     described in section 267(b) or 707(b), and
       ``(D) any other person specified by the Secretary for 
     purposes of this paragraph.
       ``(5) Section 902 corporation.--The term `section 902 
     corporation' means any foreign corporation with respect to 
     which one or more domestic corporations meets the ownership 
     requirements of subsection (a) or (b) of section 902.
       ``(e) Regulations.--The Secretary may issue such 
     regulations or other guidance as

[[Page 14573]]

     is necessary or appropriate to carry out the purposes of this 
     section, including regulations or other guidance which 
     provides--
       ``(1) appropriate exceptions from the provisions of this 
     section, and
       ``(2) for the proper application of this section with 
     respect to hybrid instruments.''.
       (b) Clerical Amendment.--The table of sections for subpart 
     A of part III of subchapter N of chapter 1 of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new item:

``Sec. 909. Suspension of taxes and credits until related income taken 
              into account.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to--
       (1) foreign income taxes (as defined in section 909(d) of 
     the Internal Revenue Code of 1986, as added by this section) 
     paid or accrued in taxable years beginning after December 31, 
     2010; and
       (2) foreign income taxes (as so defined) paid or accrued by 
     a section 902 corporation (as so defined) in taxable years 
     beginning on or before such date (and not deemed paid under 
     section 902(a) or 960 of such Code on or before such date), 
     but only for purposes of applying sections 902 and 960 with 
     respect to periods after such date.

     Section 909(b)(2) of the Internal Revenue Code of 1986, as 
     added by this section, shall not apply to foreign income 
     taxes described in paragraph (2).


denial of foreign tax credit with respect to foreign income not subject 
   to united states taxation by reason of covered asset acquisitions

       Sec. 212. 
       (a) In General.--Section 901 of the Internal Revenue Code 
     of 1986 is amended by redesignating subsection (m) as 
     subsection (n) and by inserting after subsection (l) the 
     following new subsection:
       ``(m) Denial of Foreign Tax Credit With Respect to Foreign 
     Income Not Subject to United States Taxation by Reason of 
     Covered Asset Acquisitions.--
       ``(1) In general.--In the case of a covered asset 
     acquisition, the disqualified portion of any foreign income 
     tax determined with respect to the income or gain 
     attributable to the relevant foreign assets--
       ``(A) shall not be taken into account in determining the 
     credit allowed under subsection (a), and
       ``(B) in the case of a foreign income tax paid by a section 
     902 corporation (as defined in section 909(d)(5)), shall not 
     be taken into account for purposes of section 902 or 960.
       ``(2) Covered asset acquisition.--For purposes of this 
     section, the term `covered asset acquisition' means--
       ``(A) a qualified stock purchase (as defined in section 
     338(d)(3)) to which section 338(a) applies,
       ``(B) any transaction which--
       ``(i) is treated as an acquisition of assets for purposes 
     of this chapter, and
       ``(ii) is treated as the acquisition of stock of a 
     corporation (or is disregarded) for purposes of the foreign 
     income taxes of the relevant jurisdiction,
       ``(C) any acquisition of an interest in a partnership which 
     has an election in effect under section 754, and
       ``(D) to the extent provided by the Secretary, any other 
     similar transaction.
       ``(3) Disqualified portion.--For purposes of this section--
       ``(A) In general.--The term `disqualified portion' means, 
     with respect to any covered asset acquisition, for any 
     taxable year, the ratio (expressed as a percentage) of--
       ``(i) the aggregate basis differences (but not below zero) 
     allocable to such taxable year under subparagraph (B) with 
     respect to all relevant foreign assets, divided by
       ``(ii) the income on which the foreign income tax referred 
     to in paragraph (1) is determined (or, if the taxpayer fails 
     to substantiate such income to the satisfaction of the 
     Secretary, such income shall be determined by dividing the 
     amount of such foreign income tax by the highest marginal tax 
     rate applicable to such income in the relevant jurisdiction).
       ``(B) Allocation of basis difference.--For purposes of 
     subparagraph (A)(i)--
       ``(i) In general.--The basis difference with respect to any 
     relevant foreign asset shall be allocated to taxable years 
     using the applicable cost recovery method under this chapter.
       ``(ii) Special rule for disposition of assets.--Except as 
     otherwise provided by the Secretary, in the case of the 
     disposition of any relevant foreign asset--

       ``(I) the basis difference allocated to the taxable year 
     which includes the date of such disposition shall be the 
     excess of the basis difference with respect to such asset 
     over the aggregate basis difference with respect to such 
     asset which has been allocated under clause (i) to all prior 
     taxable years, and
       ``(II) no basis difference with respect to such asset shall 
     be allocated under clause (i) to any taxable year thereafter.

       ``(C) Basis difference.--
       ``(i) In general.--The term `basis difference' means, with 
     respect to any relevant foreign asset, the excess of--

       ``(I) the adjusted basis of such asset immediately after 
     the covered asset acquisition, over
       ``(II) the adjusted basis of such asset immediately before 
     the covered asset acquisition.

       ``(ii) Built-in loss assets.--In the case of a relevant 
     foreign asset with respect to which the amount described in 
     clause (i)(II) exceeds the amount described in clause (i)(I), 
     such excess shall be taken into account under this subsection 
     as a basis difference of a negative amount.
       ``(iii) Special rule for section 338 elections.--In the 
     case of a covered asset acquisition described in paragraph 
     (2)(A), the covered asset acquisition shall be treated for 
     purposes of this subparagraph as occurring at the close of 
     the acquisition date (as defined in section 338(h)(2)).
       ``(4) Relevant foreign assets.--For purposes of this 
     section, the term `relevant foreign asset' means, with 
     respect to any covered asset acquisition, any asset 
     (including any goodwill, going concern value, or other 
     intangible) with respect to such acquisition if income, 
     deduction, gain, or loss attributable to such asset is taken 
     into account in determining the foreign income tax referred 
     to in paragraph (1).
       ``(5) Foreign income tax.--For purposes of this section, 
     the term `foreign income tax' means any income, war profits, 
     or excess profits tax paid or accrued to any foreign country 
     or to any possession of the United States.
       ``(6) Taxes allowed as a deduction, etc.--Sections 275 and 
     78 shall not apply to any tax which is not allowable as a 
     credit under subsection (a) by reason of this subsection.
       ``(7) Regulations.--The Secretary may issue such 
     regulations or other guidance as is necessary or appropriate 
     to carry out the purposes of this subsection, including to 
     exempt from the application of this subsection certain 
     covered asset acquisitions, and relevant foreign assets with 
     respect to which the basis difference is de minimis.''.
       (b) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to covered asset 
     acquisitions (as defined in section 901(m)(2) of the Internal 
     Revenue Code of 1986, as added by this section) after 
     December 31, 2010.
       (2) Transition rule.--The amendments made by this section 
     shall not apply to any covered asset acquisition (as so 
     defined) with respect to which the transferor and the 
     transferee are not related if such acquisition is--
       (A) made pursuant to a written agreement which was binding 
     on January 1, 2011, and at all times thereafter,
       (B) described in a ruling request submitted to the Internal 
     Revenue Service on or before May 20, 2010, or
       (C) described on or before January 1, 2011, in a public 
     announcement or in a filing with the Securities and Exchange 
     Commission.
       (3) Related persons.--For purposes of this subsection, a 
     person shall be treated as related to another person if the 
     relationship between such persons is described in section 267 
     or 707(b) of the Internal Revenue Code of 1986.


 separate application of foreign tax credit limitation, etc., to items 
                        resourced under treaties

       Sec. 213. 
       (a) In General.--Subsection (d) of section 904 of the 
     Internal Revenue Code of 1986 is amended by redesignating 
     paragraph (6) as paragraph (7) and by inserting after 
     paragraph (5) the following new paragraph:
       ``(6) Separate application to items resourced under 
     treaties.--
       ``(A) In general.--If--
       ``(i) without regard to any treaty obligation of the United 
     States, any item of income would be treated as derived from 
     sources within the United States,
       ``(ii) under a treaty obligation of the United States, such 
     item would be treated as arising from sources outside the 
     United States, and
       ``(iii) the taxpayer chooses the benefits of such treaty 
     obligation,

     subsections (a), (b), and (c) of this section and sections 
     902, 907, and 960 shall be applied separately with respect to 
     each such item.
       ``(B) Coordination with other provisions.--This paragraph 
     shall not apply to any item of income to which subsection 
     (h)(10) or section 865(h) applies.
       ``(C) Regulations.--The Secretary may issue such 
     regulations or other guidance as is necessary or appropriate 
     to carry out the purposes of this paragraph, including 
     regulations or other guidance which provides that related 
     items of income may be aggregated for purposes of this 
     paragraph.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.


 limitation on the amount of foreign taxes deemed paid with respect to 
                         section 956 inclusions

       Sec. 214. 
       (a) In General.--Section 960 of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     subsection:
       ``(c) Limitation With Respect to Section 956 Inclusions.--
       ``(1) In general.--If there is included under section 
     951(a)(1)(B) in the gross income of a domestic corporation 
     any amount attributable to the earnings and profits of a 
     foreign corporation which is a member of a qualified group 
     (as defined in section 902(b))

[[Page 14574]]

     with respect to the domestic corporation, the amount of any 
     foreign income taxes deemed to have been paid during the 
     taxable year by such domestic corporation under section 902 
     by reason of subsection (a) with respect to such inclusion in 
     gross income shall not exceed the amount of the foreign 
     income taxes which would have been deemed to have been paid 
     during the taxable year by such domestic corporation if cash 
     in an amount equal to the amount of such inclusion in gross 
     income were distributed as a series of distributions 
     (determined without regard to any foreign taxes which would 
     be imposed on an actual distribution) through the chain of 
     ownership which begins with such foreign corporation and ends 
     with such domestic corporation.
       ``(2) Authority to prevent abuse.--The Secretary shall 
     issue such regulations or other guidance as is necessary or 
     appropriate to carry out the purposes of this subsection, 
     including regulations or other guidance which prevent the 
     inappropriate use of the foreign corporation's foreign income 
     taxes not deemed paid by reason of paragraph (1).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to acquisitions of United States property (as 
     defined in section 956(c) of the Internal Revenue Code of 
     1986) after December 31, 2010.


      special rule with respect to certain redemptions by foreign 
                              subsidiaries

       Sec. 215. 
       (a) In General.--Paragraph (5) of section 304(b) of the 
     Internal Revenue Code of 1986 is amended by redesignating 
     subparagraph (B) as subparagraph (C) and by inserting after 
     subparagraph (A) the following new subparagraph:
       ``(B) Special rule in case of foreign acquiring 
     corporation.--In the case of any acquisition to which 
     subsection (a) applies in which the acquiring corporation is 
     a foreign corporation, no earnings and profits shall be taken 
     into account under paragraph (2)(A) (and subparagraph (A) 
     shall not apply) if more than 50 percent of the dividends 
     arising from such acquisition (determined without regard to 
     this subparagraph) would neither--
       ``(i) be subject to tax under this chapter for the taxable 
     year in which the dividends arise, nor
       ``(ii) be includible in the earnings and profits of a 
     controlled foreign corporation (as defined in section 957 and 
     without regard to section 953(c)).''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to acquisitions after the date of the enactment 
     of this Act.


  modification of affiliation rules for purposes of rules allocating 
                            interest expense

       Sec. 216. 
       (a) In General.--Subparagraph (A) of section 864(e)(5) of 
     the Internal Revenue Code of 1986 is amended by adding at the 
     end the following: ``Notwithstanding the preceding sentence, 
     a foreign corporation shall be treated as a member of the 
     affiliated group if--
       ``(i) more than 50 percent of the gross income of such 
     foreign corporation for the taxable year is effectively 
     connected with the conduct of a trade or business within the 
     United States, and
       ``(ii) at least 80 percent of either the vote or value of 
     all outstanding stock of such foreign corporation is owned 
     directly or indirectly by members of the affiliated group 
     (determined with regard to this sentence).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.


 termination of special rules for interest and dividends received from 
      persons meeting the 80-percent foreign business requirements

       Sec. 217. 
       (a) In General.--Paragraph (1) of section 861(a) of the 
     Internal Revenue Code of 1986 is amended by striking 
     subparagraph (A) and by redesignating subparagraphs (B) and 
     (C) as subparagraphs (A) and (B), respectively.
       (b) Grandfather Rule With Respect to Withholding on 
     Interest and Dividends Received From Persons Meeting the 80-
     percent Foreign Business Requirements.--
       (1) In general.--Subparagraph (B) of section 871(i)(2) of 
     the Internal Revenue Code of 1986 is amended to read as 
     follows:
       ``(B) The active foreign business percentage of--
       ``(i) any dividend paid by an existing 80/20 company, and
       ``(ii) any interest paid by an existing 80/20 company.''.
       (2) Definitions and special rules.--Section 871 of such 
     Code is amended by redesignating subsections (l) and (m) as 
     subsections (m) and (n), respectively, and by inserting after 
     subsection (k) the following new subsection:
       ``(l) Rules Relating to Existing 80/20 Companies.--For 
     purposes of this subsection and subsection (i)(2)(B)--
       ``(1) Existing 80/20 company.--
       ``(A) In general.--The term `existing 80/20 company' means 
     any corporation if--
       ``(i) such corporation met the 80-percent foreign business 
     requirements of section 861(c)(1) (as in effect before the 
     date of the enactment of this subsection) for such 
     corporation's last taxable year beginning before January 1, 
     2011,
       ``(ii) such corporation meets the 80-percent foreign 
     business requirements of subparagraph (B) with respect to 
     each taxable year after the taxable year referred to in 
     clause (i), and
       ``(iii) there has not been an addition of a substantial 
     line of business with respect to such corporation after the 
     date of the enactment of this subsection.
       ``(B) Foreign business requirements.--
       ``(i) In general.--Except as provided in clause (iv), a 
     corporation meets the 80-percent foreign business 
     requirements of this subparagraph if it is shown to the 
     satisfaction of the Secretary that at least 80 percent of the 
     gross income from all sources of such corporation for the 
     testing period is active foreign business income.
       ``(ii) Active foreign business income.--For purposes of 
     clause (i), the term `active foreign business income' means 
     gross income which--

       ``(I) is derived from sources outside the United States (as 
     determined under this subchapter), and
       ``(II) is attributable to the active conduct of a trade or 
     business in a foreign country or possession of the United 
     States.

       ``(iii) Testing period.--For purposes of this subsection, 
     the term `testing period' means the 3-year period ending with 
     the close of the taxable year of the corporation preceding 
     the payment (or such part of such period as may be 
     applicable). If the corporation has no gross income for such 
     3-year period (or part thereof), the testing period shall be 
     the taxable year in which the payment is made.
       ``(iv) Transition rule.--In the case of a taxable year for 
     which the testing period includes 1 or more taxable years 
     beginning before January 1, 2011--

       ``(I) a corporation meets the 80-percent foreign business 
     requirements of this subparagraph if and only if the weighted 
     average of--

       ``(aa) the percentage of the corporation's gross income 
     from all sources that is active foreign business income (as 
     defined in subparagraph (B) of section 861(c)(1) (as in 
     effect before the date of the enactment of this subsection)) 
     for the portion of the testing period that includes taxable 
     years beginning before January 1, 2011, and
       ``(bb) the percentage of the corporation's gross income 
     from all sources that is active foreign business income (as 
     defined in clause (ii) of this subparagraph) for the portion 
     of the testing period, if any, that includes taxable years 
     beginning on or after January 1, 2011,

     is at least 80 percent, and
       ``(II) the active foreign business percentage for such 
     taxable year shall equal the weighted average percentage 
     determined under subclause (I).

       ``(2) Active foreign business percentage.--Except as 
     provided in paragraph (1)(B)(iv), the term `active foreign 
     business percentage' means, with respect to any existing 80/
     20 company, the percentage which--
       ``(A) the active foreign business income of such company 
     for the testing period, is of
       ``(B) the gross income of such company for the testing 
     period from all sources.
       ``(3) Aggregation rules.--For purposes of applying 
     paragraph (1) (other than subparagraphs (A)(i) and (B)(iv) 
     thereof) and paragraph (2)--
       ``(A) In general.--The corporation referred to in paragraph 
     (1)(A) and all of such corporation's subsidiaries shall be 
     treated as one corporation.
       ``(B) Subsidiaries.--For purposes of subparagraph (A), the 
     term `subsidiary' means any corporation in which the 
     corporation referred to in subparagraph (A) owns (directly or 
     indirectly) stock meeting the requirements of section 
     1504(a)(2) (determined by substituting `50 percent' for `80 
     percent' each place it appears and without regard to section 
     1504(b)(3)).
       ``(4) Regulations.--The Secretary may issue such 
     regulations or other guidance as is necessary or appropriate 
     to carry out the purposes of this section, including 
     regulations or other guidance which provide for the proper 
     application of the aggregation rules described in paragraph 
     (3).''.
       (c) Conforming Amendments.--
       (1) Section 861 of the Internal Revenue Code of 1986 is 
     amended by striking subsection (c) and by redesignating 
     subsections (d), (e), and (f) as subsections (c), (d), and 
     (e), respectively.
       (2) Paragraph (9) of section 904(h) of such Code is amended 
     to read as follows:
       ``(9) Treatment of certain domestic corporations.--In the 
     case of any dividend treated as not from sources within the 
     United States under section 861(a)(2)(A), the corporation 
     paying such dividend shall be treated for purposes of this 
     subsection as a United States-owned foreign corporation.''.
       (3) Subsection (c) of section 2104 of such Code is amended 
     in the last sentence by striking ``or to a debt obligation of 
     a domestic corporation'' and all that follows and inserting a 
     period.
       (d) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to taxable years 
     beginning after December 31, 2010.
       (2) Grandfather rule for outstanding debt obligations.--

[[Page 14575]]

       (A) In general.--The amendments made by this section shall 
     not apply to payments of interest on obligations issued 
     before the date of the enactment of this Act.
       (B) Exception for related party debt.--Subparagraph (A) 
     shall not apply to any interest which is payable to a related 
     person (determined under rules similar to the rules of 
     section 954(d)(3)).
       (C) Significant modifications treated as new issues.--For 
     purposes of subparagraph (A), a significant modification of 
     the terms of any obligation (including any extension of the 
     term of such obligation) shall be treated as a new issue.


limitation on extension of statute of limitations for failure to notify 
                 secretary of certain foreign transfers

       Sec. 218. 
       (a) In General.--Paragraph (8) of section 6501(c) of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking ``In the case of any information'' and 
     inserting the following:
       ``(A) In general.--In the case of any information''; and
       (2) by adding at the end the following:
       ``(B) Application to failures due to reasonable cause.--If 
     the failure to furnish the information referred to in 
     subparagraph (A) is due to reasonable cause and not willful 
     neglect, subparagraph (A) shall apply only to the item or 
     items related to such failure.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect as if included in section 513 of the Hiring 
     Incentives to Restore Employment Act.

                               TITLE III

                              RESCISSIONS

       Sec. 301.  There is rescinded from accounts under the 
     heading ``Department of Agriculture--Rural Development'', 
     $122,000,000, to be derived from the unobligated balances of 
     funds that were provided for such accounts in prior 
     appropriation Acts (other than Public Law 111-5) and that 
     were designated by the Congress in such Acts as an emergency 
     requirement pursuant to a concurrent resolution on the budget 
     or the Balanced Budget and Emergency Deficit Control Act of 
     1985.
       Sec. 302.  Of the funds made available for ``Department of 
     Agriculture--Rural Utilities Service--Distance Learning, 
     Telemedicine, and Broadband Program'' in title I of division 
     A of Public Law 111-5 (123 Stat. 118), $300,000,000 are 
     rescinded.
       Sec. 303.  There is rescinded from accounts under the 
     heading ``Department of Agriculture--Food and Nutrition 
     Service--Special Supplemental Nutrition Program for Women, 
     Infants, and Children (WIC)'', $361,825,000, to be derived 
     from unobligated balances available from amounts placed in 
     reserve in title I of division A of Public Law 111-5 (123 
     Stat. 115).
       Sec. 304.  Of the funds made available for ``Department of 
     Commerce--National Telecommunications and Information 
     Administration--Broadband Technology Opportunities Program'' 
     in title II of division A of Public Law 111-5, $302,000,000 
     are rescinded.
       Sec. 305. (a) Of the funds appropriated in Department of 
     Defense Appropriations Acts, the following funds are 
     rescinded from the following accounts in the specified 
     amounts:
       ``Shipbuilding and Conversion, Navy, 2006/2010'', 
     $107,000,000;
       ``Aircraft Procurement, Army, 2008/2010'', $21,000,000;
       ``Procurement of Weapons and Tracked Combat Vehicles, Army, 
     2008/2010'', $21,000,000;
       ``Procurement of Ammunition, Army, 2008/2010'', 
     $17,000,000;
       ``Other Procurement, Army, 2008/2010'', $75,000,000;
       ``Weapons Procurement, Navy, 2008/2010'', $26,000,000;
       ``Other Procurement, Navy, 2008/2010'', $42,000,000;
       ``Procurement, Marine Corps, 2008/2010'', $13,000,000;
       ``Aircraft Procurement, Air Force, 2008/2010'', 
     $102,000,000;
       ``Missile Procurement, Air Force, 2008/2010'', $28,000,000;
       ``Procurement of Ammunition, Air Force, 2008/2010'', 
     $7,000,000;
       ``Other Procurement, Air Force, 2008/2010'', $130,000,000;
       ``Procurement, Defense-Wide, 2008/2010'', $33,000,000;
       ``Research, Development, Test and Evaluation, Army, 2009/
     2010'', $76,000,000;
       ``Research, Development, Test and Evaluation, Navy, 2009/
     2010'', $131,000,000;
       ``Research, Development, Test and Evaluation, Air Force, 
     2009/2010'', $164,000,000;
       ``Research, Development, Test and Evaluation, Defense-Wide, 
     2009/2010'', $137,000,000;
       ``Operation, Test and Evaluation, Defense, 2009/2010'', 
     $1,000,000;
       ``Operation and Maintenance, Army, 2010'', $154,000,000;
       ``Operation and Maintenance, Navy, 2010'', $155,000,000;
       ``Operation and Maintenance, Marine Corps, 2010'', 
     $25,000,000;
       ``Operation and Maintenance, Air Force, 2010'', 
     $155,000,000;
       ``Operation and Maintenance, Defense-Wide, 2010'', 
     $126,000,000;
       ``Operation and Maintenance, Army Reserve, 2010'', 
     $12,000,000;
       ``Operation and Maintenance, Navy Reserve, 2010'', 
     $6,000,000;
       ``Operation and Maintenance, Marine Corps Reserve, 2010'', 
     $1,000,000;
       ``Operation and Maintenance, Air Force Reserve, 2010'', 
     $14,000,000;
       ``Operation and Maintenance, Army National Guard, 2010'', 
     $28,000,000; and
       ``Operation and Maintenance, Air National Guard, 2010'', 
     $27,000,000.
       (b) Section 3002 shall not apply to amounts in this 
     section.
       Sec. 306. (a) Of the funds appropriated in the American 
     Recovery and Reinvestment Act of 2009 (Public Law 111-5), the 
     following funds are rescinded from the following accounts in 
     the specified amounts:
       ``Operation and Maintenance, Army, 2009/2010'', 
     $113,500,000;
       ``Operation and Maintenance, Navy, 2009/2010'', 
     $34,000,000;
       ``Operation and Maintenance, Marine Corps, 2009/2010'', 
     $7,000,000;
       ``Operation and Maintenance, Air Force, 2009/2010'', 
     $61,000,000;
       ``Operation and Maintenance, Army Reserve, 2009/2010'', 
     $3,500,000;
       ``Operation and Maintenance, Navy Reserve, 2009/2010'', 
     $8,000,000;
       ``Operation and Maintenance, Marine Corps Reserve, 2009/
     2010'', $1,000,000;
       ``Operation and Maintenance, Air Force Reserve, 2009/
     2010'', $2,000,000;
       ``Operation and Maintenance, Army National Guard, 2009/
     2010'', $1,000,000;
       ``Operation and Maintenance, Air National Guard, 2009/
     2010'', $2,500,000; and
       ``Defense Health Program, 2009/2010'', $27,000,000.
       (b) Of the funds appropriated in the Supplemental 
     Appropriations Act, 2008 (Public Law 110-252), the following 
     funds are rescinded from the following account in the 
     specified amount:
       ``Procurement, Marine Corps, 2009/2011'', $122,000,000.
       Sec. 307. (a) Of the funds appropriated for ``Procurement 
     of Weapons and Tracked Combat Vehicles, Army'' in title III 
     of division A of public Law 111-118, $116,000,000 are 
     rescinded.
       (b) Of the funds appropriated for ``Other Procurement, 
     Army'' in title III of division C of Public Law 110-329, 
     $87,000,000 are rescinded.
       (c) Section 3002 shall not apply to amounts in this 
     section.
       Sec. 308. (a) There are rescinded the following amounts 
     from the specified accounts:
       (1) $20,000,000, to be derived from unobligated balances of 
     funds made available in prior appropriations Acts under the 
     heading ``Department of Energy--Nuclear Energy''.
       (b) Section 3002 shall not apply to amounts in this 
     section.
       Sec. 309.  Of the unobligated balances of funds provided 
     under the heading ``Nuclear Regulatory Commission'' in prior 
     appropriations Acts, $18,000,000 is permanently rescinded: 
     Provided, That section 3002 shall not apply to the amount in 
     this section.
       Sec. 310.  Of the funds made available for ``Department of 
     Energy--Title 17--Innovative Technology Loan Guarantee 
     Program'' in title III of division A of Public Law 111-5, 
     $1,500,000,000 are rescinded.
       Sec. 311.  There are permanently rescinded from ``General 
     Services Administration--Real Property Activities--Federal 
     Building Fund'', $75,000,000 from Rental of Space and 
     $25,000,000 from Building Operations, to be derived from 
     unobligated balances that were provided in previous 
     appropriations Acts: Provided, That section 3002 shall not 
     apply to the amount in this section.
       Sec. 312.  Of the funds made available for ``Bureau of 
     Indian Affairs--Indian Guaranteed Loan Program Account'' in 
     title VII of division A of Public Law 111-5, $6,820,000 are 
     rescinded.
       Sec. 313.  Of the funds made available for ``Environmental 
     Protection Agency--Hazardous Substance Superfund'' in title 
     VII of division A of Public Law 111-5, $2,600,000 are 
     rescinded.
       Sec. 314.  Of the funds made available for ``Environmental 
     Protection Agency--Leaking Underground Storage Tank Trust 
     Fund Program'' in title VII of division A of Public Law 111-
     5, $9,200,000 are rescinded.
       Sec. 315.  Of the funds made available for transfer in 
     title VII of division A of Public Law 111-5, ``Environmental 
     Protection Agency--Environmental Programs and Management'', 
     $10,000,000 are rescinded.
       Sec. 316.  Of the funds made available for ``National Park 
     Service--Construction'' in chapter 7 of division B of Public 
     Law 108-324, $4,800,000 are rescinded.
       Sec. 317.  Of the funds made available for ``National Park 
     Service--Construction'' in chapter 5 of title II of Public 
     Law 109-234, $6,400,000 are rescinded.
       Sec. 318.  Of the funds made available for ``Fish and 
     Wildlife Service--Construction'' in chapter 6 of title I of 
     division B of Public Law 110-329, $3,000,000 are rescinded.
       Sec. 319.  The unobligated balance of funds appropriated in 
     the Departments of Labor, Health and Human Services, and 
     Education, and Related Agencies Appropriations Act, 1995 
     (Public Law 103-333; 108 Stat. 2574) under the heading 
     ``Public Health and Social Services Emergency Fund'' is 
     rescinded.
       Sec. 320.  Of the funds appropriated for the Commissioner 
     of Social Security under section 2201(e)(2)(B) in title II of 
     division B of Public Law 111-5, $47,000,000 are rescinded.

[[Page 14576]]

       Sec. 321.  Of the funds appropriated in part VI of subtitle 
     I of title II of division B of Public Law 111-5, $110,000,000 
     are rescinded, to be derived only from the amount provided 
     under section 1899K(b) of such title.
       Sec. 322.  Of the funds appropriated for ``Department of 
     Education--Education for the Disadvantaged'' in division D of 
     Public Law 111-117, $50,000,000 are rescinded, to be derived 
     only from the amount provided for a comprehensive literacy 
     development and education program under section 1502 of the 
     Elementary and Secondary Education Act of 1965: Provided, 
     That section 3002 of this Act shall not apply to this amount.
       Sec. 323.  Of the funds appropriated for ``Department of 
     Education--Student Aid Administration'' in division D of 
     Public Law 111-117, $82,000,000 are rescinded: Provided, That 
     section 3002 of this Act shall not apply to this amount.
       Sec. 324.  Of the funds appropriated for ``Department of 
     Education--Innovation and Improvement'' in division D of 
     Public Law 111-117, $10,700,000 are rescinded, to be derived 
     only from the amount provided to carry out subpart 8 of part 
     D of title V of the Elementary and Secondary Education Act of 
     1965: Provided, That section 3002 of this Act shall not apply 
     to this amount.
       Sec. 325.  Of the unobligated balances available under 
     ``Department of Defense, Military Construction, Army'' from 
     prior appropriations Acts, $340,000,000 is rescinded: 
     Provided, That no funds may be rescinded from amounts that 
     were designated by the Congress as an emergency requirement 
     or as appropriations for overseas deployments and other 
     activities pursuant to a concurrent resolution on the budget 
     or the Balanced Budget and Emergency Deficit Control Act of 
     1985: Provided further, That section 3002 shall not apply to 
     the amount in this section.
       Sec. 326.  Of the unobligated balances available under 
     ``Department of Defense, Military Construction, Navy and 
     Marine Corps'' from prior appropriations Acts, $110,000,000 
     is rescinded: Provided, That no funds may be rescinded from 
     amounts that were designated by the Congress as an emergency 
     requirement or as appropriations for overseas deployments and 
     other activities pursuant to a concurrent resolution on the 
     budget or the Balanced Budget and Emergency Deficit Control 
     Act of 1985: Provided further, That section 3002 shall not 
     apply to the amount in this section.
       Sec. 327.  Of the unobligated balances available under 
     ``Department of Defense, Military Construction, Air Force'' 
     from prior appropriations Acts, $50,000,000 is rescinded: 
     Provided, That no funds may be rescinded from amounts that 
     were designated by the Congress as an emergency requirement 
     or as appropriations for overseas deployments and other 
     activities pursuant to a concurrent resolution on the budget 
     or the Balanced Budget and Emergency Deficit Control Act of 
     1985: Provided further, That section 3002 shall not apply to 
     the amount in this section.
       Sec. 328.  Of the funds made available for the General 
     Operating Expenses account of the Department of Veterans 
     Affairs in section 2201(e)(4)(A)(ii) of division B of Public 
     Law 111-5 (123 Stat. 454; 26 U.S.C. 6428 note), $6,100,000 
     are rescinded.
       Sec. 329.  Of the amount appropriated or otherwise made 
     available by title X of division A of Public Law 111-5, the 
     American Recovery and Reinvestment Act of 2009, under the 
     heading `` Departmental Administration, Information 
     Technology Systems'' $5,000,000 is hereby rescinded.
       Sec. 330. (a) Millennium Challenge Corporation.--Of the 
     unobligated balances available under the heading ``Millennium 
     Challenge Corporation'' in title III of division H of Public 
     Law 111-8 and under such heading in prior Acts making 
     appropriations for the Department of State, foreign 
     operations, and related programs, $50,000,000 are rescinded.
       (b) Civilian Stabilization Initiative.--
       (1) Department of state.--Of the unobligated balances 
     available under the heading ``Department of State--
     Administration of Foreign Affairs--Civilian Stabilization 
     Initiative'' in prior Acts making appropriations for the 
     Department of State, foreign operations, and related 
     programs, $40,000,000 are rescinded.
       (2) United states agency for international development.--Of 
     the unobligated balances available under the heading ``United 
     States Agency for International Development--Funds 
     Appropriated to the President--Civilian Stabilization 
     Initiative'' in prior Acts making appropriations for the 
     Department of State, foreign operations, and related 
     programs, $30,000,000 are rescinded.
       (c) Section 3002 shall not apply to the amounts in this 
     section.
       Sec. 331.  There are rescinded the following amounts from 
     the specified accounts:
       (1) ``Department of Transportation--Federal Aviation 
     Administration--Facilities and Equipment'', $2,182,544, to be 
     derived from unobligated balances made available under this 
     heading in Public Law 108-324.
       (2) ``Department of Transportation--Federal Aviation 
     Administration--Facilities and Equipment'', $5,705,750, to be 
     derived from unobligated balances made available under this 
     heading in Public Law 109-148.
       Sec. 332.  Of the unobligated balances of funds apportioned 
     to each State under chapter 1 of title 23, United States 
     Code, $2,200,000,000 are permanently rescinded: Provided, 
     That such rescission shall be distributed among the States in 
     the same proportion as the funds subject to such rescission 
     were apportioned to the States for fiscal year 2009: Provided 
     further, That such rescission shall not apply to the funds 
     distributed in accordance with sections 130(f) and 104(b)(5) 
     of title 23, United States Code; sections 133(d)(1) and 163 
     of such title, as in effect on the day before the date of 
     enactment of Public Law 109-59; and the first sentence of 
     section 133(d)(3)(A) of such title: Provided further, That 
     notwithstanding section 1132 of Public Law 110-140, in 
     administering the rescission required under this heading, the 
     Secretary of Transportation shall allow each State to 
     determine the amount of the required rescission to be drawn 
     from the programs to which the rescission applies.

                                TITLE IV

                          BUDGETARY PROVISIONS


                          budgetary provisions

       Sec. 401.  (a) Statutory Paygo.--The budgetary effects of 
     this Act, for the purpose of complying with the Statutory 
     Pay-As-You-Go Act of 2010, shall be determined by reference 
     to the latest statement titled Budgetary Effects of PAYGO 
     Legislation for this Act, jointly submitted for printing in 
     the Congressional Record by the Chairmen of the House and 
     Senate Budget Committees, provided that such statement has 
     been submitted prior to the vote on passage in the House 
     acting first on this conference report or amendment between 
     the Houses.
       (b) Exclusion From Paygo.--
       (1) Savings in this Act that would be subject to inclusion 
     in the Statutory Pay-As-You-Go scorecards are providing an 
     offset to increased discretionary spending. As such, they 
     should not be available on the scorecards maintained by the 
     Office of Management and Budget to provide offsets for future 
     legislation.
       (2) The Director of the Office of Management and Budget 
     shall not include any net savings resulting from the changes 
     in direct spending or revenues contained in this Act on the 
     scorecards required to be maintained by OMB under the 
     Statutory Pay-As-You-Go Act of 2010.
                                 ______
                                 
  SA 4568. Mr. REID proposed an amendment to amendment SA 4567 proposed 
by Mr. Reid (for Mrs. Murray (for herself, Mr. Harkin, Mr. Reid, and 
Mr. Schumer)) to the bill H.R. 1586, to modernize the air traffic 
control system, improve the safety, reliability, and availability of 
transportation by air in the United States, provide for modernization 
of the air traffic control system, reauthorize the Federal Aviation 
Administration, and for other purposes; as follows:

       At the end of the amendment, insert the following:
       The provisions of this Act shall become effective 5 days 
     after enactment.
                                 ______
                                 
  SA 4569. Mr. REID proposed an amendment to the bill H.R. 1586, to 
modernize the air traffic control system, improve the safety, 
reliability, and availability of transportation by air in the United 
States, provide for modernization of the air traffic control system, 
reauthorize the Federal Aviation Administration, and for other 
purposes; as follows:

       At the end insert the following:
       The Appropriations Committee is requested to study the 
     impact of any delay in providing funding to educators across 
     the country.
                                 ______
                                 
  SA 4570. Mr. REID proposed an amendment to amendment SA 4569 proposed 
by Mr. Reid to the bill H.R. 1586, to modernize the air traffic control 
system, improve the safety, reliability, and availability of 
transportation by air in the United States, provide for modernization 
of the air traffic control system, reauthorize the Federal Aviation 
Administration, and for other purposes; as follows:

       At the end, insert the following: ``and include any data on 
     the impact on local school districts''.
                                 ______
                                 
  SA 4571. Mr. REID proposed an amendment to amendment SA 4570 proposed 
by Mr. Reid to the amendment SA 4569 proposed by Mr. Reid to the bill 
H.R. 1586, to modernize the air traffic control system, improve the 
safety, reliability, and availability of transportation by air in the 
United States, provide for modernization of the air traffic control 
system, reauthorize the Federal Aviation Administration, and for other 
purposes; as follows:

       At the end, insert the following: ``and the impact on local 
     community''.

[[Page 14577]]


                                 ______
                                 
  SA 4572. Mr. McCAIN (for himself and Mr. Kyl) submitted an amendment 
intended to be proposed by him to the bill H.R. 5875, making emergency 
supplemental appropriations for border security for the fiscal year 
ending September 30, 2010, and for other purposes; which was ordered to 
lie on the table; as follows:

       Strike all after the enacting clause and insert the 
     following:

     That the following sums are appropriated, out of any money in 
     the Treasury not otherwise appropriated, for the fiscal year 
     ending September 30, 2010, and for other purposes, namely:

                    DEPARTMENT OF HOMELAND SECURITY

                   U.S. Customs and Border Protection

                         salaries and expenses

       For an additional amount for ``Salaries and Expenses'', 
     $356,900,000, to remain available until September 30, 2012, 
     of which $78,000,000 shall be for costs to maintain U.S. 
     Customs and Border Protection Officer staffing on the 
     Southwest Border of the United States, $58,000,000 shall be 
     for hiring additional U.S. Customs and Border Protection 
     Officers for deployment at ports of entry on the Southwest 
     Border of the United States, $208,400,000 shall be for hiring 
     additional Border Patrol agents for deployment to the 
     Southwest Border of the United States, $2,500,000 shall be 
     for forward operating bases on the Southwest Border of the 
     United States, and $10,000,000 shall be to support integrity 
     and background investigation programs.

        border security fencing, infrastructure, and technology

       For an additional amount for ``Border Security Fencing, 
     Infrastructure, and Technology,'' $14,000,000, to remain 
     available until September 30, 2012, for costs of designing, 
     building, and deploying tactical communications for support 
     of enforcement activities on the Southwest Border of the 
     United States.

 air and marine interdiction, operations, maintenance, and procurement

       For an additional amount for ``Air and Marine Interdiction, 
     Operations, Maintenance, and Procurement'', $32,000,000, to 
     remain available until September 30, 2012, for costs of 
     acquisition and deployment of unmanned aircraft systems.

                 construction and facilities management

       For an additional amount for ``Construction and Facilities 
     Management'', $9,000,000, to remain available until September 
     30, 2012, for costs to construct up to three forward 
     operating bases for use by the Border Patrol to carry out 
     enforcement activities on the Southwest Border of the United 
     States.

                U.S. Immigration and Customs Enforcement

                         salaries and expenses

       For an additional amount for ``Salaries and Expenses'', 
     $30,000,000 to remain available until September 30, 2012, for 
     law enforcement activities targeted at reducing the threat of 
     violence along the Southwest Border of the United States.

                  Federal Emergency Management Agency

                        state and local programs

       For an additional amount for ``State and Local Programs'', 
     $50,000,000, to remain available until September 30, 2011, 
     for Operation Stonegarden.

                Federal Law Enforcement Training Center

                         salaries and expenses

       For an additional amount for ``Salaries and Expenses'', 
     $8,100,000, to remain available until September 30, 2011, for 
     costs to provide basic training for new U.S. Customs and 
     Border Protection Officers and Border Patrol agents.

                           GENERAL PROVISIONS

                        (including rescissions)

     SEC. 101.

       For an additional amount for the Department of Justice for 
     necessary expenses for increased law enforcement activities 
     related to Southwest border enforcement, $201,000,000, to 
     remain available until September 30, 2012: Provided, That 
     funds shall be distributed to the following accounts and in 
     the following specified amounts--
       (1) ``Administrative Review and Appeals'', $2,118,000;
       (2) ``Detention Trustee'', $7,000,000;
       (3) ``Legal Activities, Salaries and Expenses, General 
     Legal Activities'', $3,862,000;
       (4) ``Legal Activities, Salaries and Expenses, United 
     States Attorneys'', $9,198,000;
       (5) ``United States Marshals Service, Salaries and 
     Expenses'', $29,651,000;
       (6) ``United States Marshals Service, Construction'', 
     $8,000,000;
       (7) ``Interagency Law Enforcement, Interagency Crime and 
     Drug Enforcement'', $21,000,000;
       (8) ``Federal Bureau of Investigation, Salaries and 
     Expenses'', $25,262,000;
       (9) ``Drug Enforcement Administration, Salaries and 
     Expenses'', $35,805,000;
       (10) ``Bureau of Alcohol, Tobacco, Firearms and Explosives, 
     Salaries and Expenses'', $39,104,000; and
       (11) ``Federal Prison System, Salaries and Expenses'', 
     $20,000,000.

     SEC. 102.

       From unobligated balances made available to U.S. Customs 
     and Border Protection ``Border Security Fencing, 
     Infrastructure, and Technology'', $100,000,000 are rescinded.

     SEC. 103.

       Notwithstanding any other provision of law, from available 
     funds, the Department of Defense shall pay, in fiscal years 
     2010 and 2011, the full costs associated with the deployment 
     of the National Guard along the Southwest Border of the 
     United States.

     SEC. 104. USE OF STIMULUS FUNDS TO OFFSET COSTS OF BORDER 
                   SECURITY.

       (a) In General.--The unobligated balance of each amount 
     appropriated or made available under the American Recovery 
     and Reinvestment Act of 2009 (Public Law 111-5) (other than 
     under title X of division A of such Act) is rescinded on a 
     pro rata basis so that the aggregate amount of such 
     rescissions is equal to the net reduction in revenues to the 
     Treasury resulting from amounts appropriated under this Act, 
     after factoring in the rescission under section 102.
       (b) Report.--The Director of the Office of Management and 
     Budget shall report to each congressional committee the 
     amounts so rescinded within the jurisdiction of such 
     committee.
       This Act may be cited as the ``Emergency Border Security 
     Supplemental Appropriations Act, 2010''.

                          ____________________