[Congressional Record (Bound Edition), Volume 156 (2010), Part 11]
[Senate]
[Pages 14988-14995]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 4573. Mr. REED submitted an amendment intended to be proposed 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; which was ordered to lie on the table; as follows:

       At the end, add the following:

                TITLE V--ECONOMIC DEVELOPMENT ASSISTANCE

     SEC. 501. 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

[[Page 14989]]

     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 4574. Mr. REED submitted an amendment intended to be proposed 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; which was ordered to lie on the table; as follows:

       On page 38, after line 24, insert the following:

                Subtitle C--Community Development Funds

     SEC. 221. 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 4575. 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

[[Page 14990]]

     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 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, 2014.''.

                      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--

[[Page 14991]]

       ``(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 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

[[Page 14992]]

     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 July 29, 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)) 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

[[Page 14993]]

       ``(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.--
       (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.


      elimination of advance refundability of earned income credit

       Sec. 219. 
       (a) In General.--The following provisions of the Internal 
     Revenue Code of 1986 are repealed:
       (1) Section 3507.
       (2) Subsection (g) of section 32.
       (3) Paragraph (7) of section 6051(a).
       (b) Conforming Amendments.--
       (1) Section 6012(a) of the Internal Revenue Code of 1986 is 
     amended by striking paragraph (8) and by redesignating 
     paragraph (9) as paragraph (8).
       (2) Section 6302 of such Code is amended by striking 
     subsection (i).
       (3) The table of sections for chapter 25 of such Code is 
     amended by striking the item relating to section 3507.
       (c) Effective Date.--The repeals and amendments made by 
     this section shall apply to taxable years beginning after 
     December 31, 2010.

                               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 
     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. 303.  Of the funds appropriated in Department of 
     Defense Appropriations Acts, the following funds are 
     rescinded from the following accounts in the specified 
     amounts:
       ``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, 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.
       Sec. 304. (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. 305. (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.

[[Page 14994]]

       Sec. 306.  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''.
       Sec. 307.  Of the unobligated balances of funds provided 
     under the heading ``Nuclear Regulatory Commission'' in prior 
     appropriations Acts, $18,000,000 is permanently rescinded.
       Sec. 308.  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. 309.  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.
       Sec. 310.  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. 311.  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. 312.  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. 313.  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. 314.  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. 315.  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. 316.  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. 317.  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. 318.  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.
       Sec. 319.  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. 320.  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.
       Sec. 321.  Of the funds appropriated for ``Department of 
     Education--Student Aid Administration'' in division D of 
     Public Law 111-117, $82,000,000 are rescinded.
       Sec. 322.  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.
       Sec. 323.  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.
       Sec. 324.  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.
       Sec. 325.  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.
       Sec. 326.  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. 327.  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. 328. (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.
       Sec. 329.  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. 330.  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. 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.
                                 ______
                                 
  SA 4576. Mr. REID proposed an amendment to amendment SA 4575 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 4577. 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

[[Page 14995]]

     providing funding to educators across the country.
                                 ______
                                 
  SA 4578. Mr. REID proposed an amendment to amendment SA 4577 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 4579. Mr. REID proposed an amendment to amendment SA 4578 proposed 
by Mr. Reid to the amendment SA 4577 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 the local community.''
                                 ______
                                 
  SA 4580. Mr. JOHNSON 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:

       Insert after section 104 the following:
       Sec. 105.  Section 902 of chapter 9 of title I of the 
     Supplemental Appropriations Act, 2010 (Public Law 111-212) is 
     repealed.
                                 ______
                                 
  SA 4581. Mr. DODD (for Mrs. Boxer) proposed an amendment to the bill 
S. 1055, to grant the congressional gold medal, collectively, to the 
100th Infantry Battalion and the 442nd Regimental Combat Team, United 
States Army, in recognition of their dedicated service during World War 
II; as follows:

       On page 4, after line 24, insert the following:
       (17) The Military Intelligence Service (in this Act 
     referred to as the ``MIS'') was made up of about 6,000 
     Japanese American soldiers who conducted highly classified 
     intelligence operations that proved to be vital to United 
     States military successes in the Pacific Theatre.
       (18) As they were discharged from the Army, MIS soldiers 
     were told not to discuss their wartime work, due to its 
     sensitive nature, and their contributions were not known 
     until passage of the Freedom of Information Act in 1974.
       (19) MIS soldiers were attached individually or in small 
     groups to United States and Allied combat units, where they 
     intercepted radio transmissions, translated enemy documents, 
     interrogated enemy prisoners of war, volunteered for 
     reconnaissance and covert intelligence missions, and 
     persuaded enemy combatants to surrender.
       (20) Their contributions continued during the Allied 
     postwar occupation of Japan, and MIS linguistic skills and 
     understanding of Japanese customs were invaluable to 
     occupation forces as they assisted Japan in a peaceful 
     transition to a new, democratic form of government.
       On page 5, line 6, strike ``and'' and insert a comma.
       On page 5, line 7, insert ``and the Military Intelligence 
     Service,'' before ``United States''.
       On page 5, line 19, strike ``and'' and insert a comma.
       On page 5, line 19, insert ``and the Military Intelligence 
     Service,'' before ``United''.
       On page 6, line 3, strike ``and'' and insert a comma.
       On page 6, line 4, insert ``and the Military Intelligence 
     Service,'' before ``United States''.
       On page 6, line 6, strike ``Under'' and all that follows 
     through ``Secretary'' on line 7 and insert ``The Secretary''.
       On page 6, strike lines 15 through 17 and insert the 
     following:

     ``SEC. 5. AUTHORITY TO USE FUNDS; PROCEEDS OF SALE.

       ``(a) Authority to Use Funds.--There is''.

                          ____________________