[Congressional Record (Bound Edition), Volume 156 (2010), Part 2]
[House]
[Pages 2590-2614]
[From the U.S. Government Publishing Office, www.gpo.gov]




 COMMERCE, JUSTICE, SCIENCE, AND RELATED AGENCIES APPROPRIATIONS ACT, 
                                  2010

  Mr. ETHERIDGE. Madam Speaker, pursuant to House Resolution 1137, I 
call up the bill (H.R. 2847) making appropriations for the Departments 
of Commerce, Justice, Science, and Related Agencies for the fiscal year 
ending September 30, 2010, and for other purposes, with a Senate 
amendment to the House amendment to the Senate amendment thereto, and 
ask for its immediate consideration.
  The Clerk read the title of the bill.
  The SPEAKER pro tempore. The Clerk will designate the Senate 
amendment to the House amendment to the Senate amendment.
  The text of the amendment is as follows:

       Senate amendment to House amendment to Senate amendment:
       In lieu of the matter proposed to be inserted by the 
     amendment of the House to the amendment of the Senate insert 
     the following:

     SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE; TABLE OF 
                   CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Hiring 
     Incentives to Restore Employment Act''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.
       (c) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; amendment of 1986 Code; table of contents.

    TITLE I--INCENTIVES FOR HIRING AND RETAINING UNEMPLOYED WORKERS

Sec. 101. Payroll tax forgiveness for hiring unemployed workers.
Sec. 102. Business credit for retention of certain newly hired 
              individuals in 2010.

                          TITLE II--EXPENSING

Sec. 201. Increase in expensing of certain depreciable business assets.

                 TITLE III--QUALIFIED TAX CREDIT BONDS

Sec. 301. Issuer allowed refundable credit for certain qualified tax 
              credit bonds.

     TITLE IV--EXTENSION OF CURRENT SURFACE TRANSPORTATION PROGRAMS

Sec. 401. Short title.

                    Subtitle A--Federal-aid Highways

Sec. 411. In general.
Sec. 412. Administrative expenses.
Sec. 413. Rescission of unobligated balances.
Sec. 414. Reconciliation of funds.

  Subtitle B--National Highway Traffic Safety Administration, Federal 
      Motor Carrier Safety Administration, and Additional Programs

Sec. 421. Extension of National Highway Traffic Safety Administration 
              Highway Safety Programs.
Sec. 422. Extension of Federal Motor Carrier Safety Administration 
              Programs.
Sec. 423. Additional programs.

               Subtitle C--Public Transportation Programs

Sec. 431. Allocation of funds for planning programs.
Sec. 432. Special rule for urbanized area formula grants.
Sec. 433. Allocating amounts for capital investment grants.
Sec. 434. Apportionment of formula grants for other than urbanized 
              areas.
Sec. 435. Apportionment based on fixed guideway factors.
Sec. 436. Authorizations for public transportation.
Sec. 437. Amendments to SAFETEA-LU.

                     Subtitle D--Revenue Provisions

Sec. 441. Repeal of provision prohibiting the crediting of interest to 
              the Highway Trust Fund.
Sec. 442. Restoration of certain foregone interest to Highway Trust 
              Fund.
Sec. 443. Treatment of certain amounts appropriated to Highway Trust 
              Fund.
Sec. 444. Termination of transfers from highway trust fund for certain 
              repayments and credits.
Sec. 445. Extension of authority for expenditures.
Sec. 446. Level of obligation limitations.

[[Page 2591]]

                       TITLE V--OFFSET PROVISIONS

               Subtitle A--Foreign Account Tax Compliance

           PART I--Increased Disclosure of Beneficial Owners

Sec. 501. Reporting on certain foreign accounts.
Sec. 502. Repeal of certain foreign exceptions to registered bond 
              requirements.

        PART II--Under Reporting With Respect to Foreign Assets

Sec. 511. Disclosure of information with respect to foreign financial 
              assets.
Sec. 512. Penalties for underpayments attributable to undisclosed 
              foreign financial assets.
Sec. 513. Modification of statute of limitations for significant 
              omission of income in connection with foreign assets.

                 PART III--Other Disclosure Provisions

Sec. 521. Reporting of activities with respect to passive foreign 
              investment companies.
Sec. 522. Secretary permitted to require financial institutions to file 
              certain returns related to withholding on foreign 
              transfers electronically.

             PART IV--Provisions Related to Foreign Trusts

Sec. 531. Clarifications with respect to foreign trusts which are 
              treated as having a United States beneficiary.
Sec. 532. Presumption that foreign trust has United States beneficiary.
Sec. 533. Uncompensated use of trust property.
Sec. 534. Reporting requirement of United States owners of foreign 
              trusts.
Sec. 535. Minimum penalty with respect to failure to report on certain 
              foreign trusts.

PART V--Substitute Dividends and Dividend Equivalent Payments Received 
                by Foreign Persons Treated as Dividends

Sec. 541. Substitute dividends and dividend equivalent payments 
              received by foreign persons treated as dividends.

  Subtitle B--Delay in Application of Worldwide Allocation of Interest

Sec. 551. Delay in application of worldwide allocation of interest.

    TITLE I--INCENTIVES FOR HIRING AND RETAINING UNEMPLOYED WORKERS

     SEC. 101. PAYROLL TAX FORGIVENESS FOR HIRING UNEMPLOYED 
                   WORKERS.

       (a) In General.--Section 3111 is amended by adding at the 
     end the following new subsection:
       ``(d) Special Exemption for Certain Individuals Hired in 
     2010.--
       ``(1) In general.--Subsection (a) shall not apply to wages 
     paid by a qualified employer with respect to employment 
     during the period beginning on the day after the date of the 
     enactment of this subsection and ending on December 31, 2010, 
     of any qualified individual for services performed--
       ``(A) in a trade or business of such qualified employer, or
       ``(B) in the case of a qualified employer exempt from tax 
     under section 501(a), in furtherance of the activities 
     related to the purpose or function constituting the basis of 
     the employer's exemption under section 501.
       ``(2) Qualified employer.--For purposes of this 
     subsection--
       ``(A) In general.--The term `qualified employer' means any 
     employer other than the United States, any State, or any 
     political subdivision thereof, or any instrumentality of the 
     foregoing.
       ``(B) Treatment of employees of post-secondary educational 
     institutions.--Notwithstanding subparagraph (A), the term 
     `qualified employer' includes any employer which is a public 
     institution of higher education (as defined in section 101(b) 
     of the Higher Education Act of 1965).
       ``(3) Qualified individual.--For purposes of this 
     subsection, the term `qualified individual' means any 
     individual who--
       ``(A) begins employment with a qualified employer after 
     February 3, 2010, and before January 1, 2011,
       ``(B) certifies by signed affidavit, under penalties of 
     perjury, that such individual has not been employed for more 
     than 40 hours during the 60-day period ending on the date 
     such individual begins such employment,
       ``(C) is not employed by the qualified employer to replace 
     another employee of such employer unless such other employee 
     separated from employment voluntarily or for cause, and
       ``(D) is not an individual described in section 51(i)(1) 
     (applied by substituting `qualified employer' for `taxpayer' 
     each place it appears).
       ``(4) Election.--A qualified employer may elect to have 
     this subsection not apply. Such election shall be made in 
     such manner as the Secretary may require.''.
       (b) Coordination With Work Opportunity Credit.--Section 
     51(c) is amended by adding at the end the following new 
     paragraph:
       ``(5) Coordination with payroll tax forgiveness.--The term 
     `wages' shall not include any amount paid or incurred to a 
     qualified individual (as defined in section 3111(d)(3)) 
     during the 1-year period beginning on the hiring date of such 
     individual by a qualified employer (as defined in section 
     3111(d)) unless such qualified employer makes an election not 
     to have section 3111(d) apply.''.
       (c) Transfers to Federal Old-Age and Survivors Insurance 
     Trust Fund.--There are hereby appropriated to the Federal 
     Old-Age and Survivors Trust Fund and the Federal Disability 
     Insurance Trust Fund established under section 201 of the 
     Social Security Act (42 U.S.C. 401) amounts equal to the 
     reduction in revenues to the Treasury by reason of the 
     amendments made by subsection (a). Amounts appropriated by 
     the preceding sentence shall be transferred from the general 
     fund at such times and in such manner as to replicate to the 
     extent possible the transfers which would have occurred to 
     such Trust Fund had such amendments not been enacted.
       (d) Effective Date.--The amendments made by this section 
     shall apply to wages paid after the date of the enactment of 
     this Act.

     SEC. 102. BUSINESS CREDIT FOR RETENTION OF CERTAIN NEWLY 
                   HIRED INDIVIDUALS IN 2010.

       (a) In General.--In the case of any taxable year ending 
     after the date of the enactment of this Act, the current year 
     business credit determined under section 38(b) of the 
     Internal Revenue Code of 1986 for such taxable year shall be 
     increased by an amount equal to the product of--
       (1) $1,000, and
       (2) the number of retained workers with respect to which 
     subsection (b)(2) is first satisfied during such taxable 
     year.
       (b) Retained Worker.--For purposes of this section, the 
     term ``retained worker'' means any qualified individual (as 
     defined in section 3111(d)(3) of the Internal Revenue Code of 
     1986)--
       (1) who was employed by the taxpayer on any date during the 
     taxable year,
       (2) who was so employed by the taxpayer for a period of not 
     less than 52 consecutive weeks, and
       (3) whose wages for such employment during the last 26 
     weeks of such period equaled at least 80 percent of such 
     wages for the first 26 weeks of such period.
       (c) Limitation on Carrybacks.--No portion of the unused 
     business credit under section 38 of the Internal Revenue Code 
     of 1986 for any taxable year which is attributable to the 
     increase in the current year business credit under this 
     section may be carried to a taxable year beginning before the 
     date of the enactment of this section.

                          TITLE II--EXPENSING

     SEC. 201. INCREASE IN EXPENSING OF CERTAIN DEPRECIABLE 
                   BUSINESS ASSETS.

       (a) In General.--Subsection (b) of section 179 is amended--
       (1) by striking ``($125,000 in the case of taxable years 
     beginning after 2006 and before 2011)'' in paragraph (1) and 
     inserting ``($250,000 in the case of taxable years beginning 
     after 2007 and before 2011)'',
       (2) by striking ``($500,000 in the case of taxable years 
     beginning after 2006 and before 2011)'' in paragraph (2) and 
     inserting ``($800,000 in the case of taxable years beginning 
     after 2007 and before 2011)'',
       (3) by striking paragraphs (5) and (7), and
       (4) by redesignating paragraph (6) as paragraph (5).
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

                 TITLE III--QUALIFIED TAX CREDIT BONDS

     SEC. 301. ISSUER ALLOWED REFUNDABLE CREDIT FOR CERTAIN 
                   QUALIFIED TAX CREDIT BONDS.

       (a) Credit Allowed.--Section 6431 is amended by adding at 
     the end the following new subsection:
       ``(f) Application of Section to Certain Qualified Tax 
     Credit Bonds.--
       ``(1) In general.--In the case of any specified tax credit 
     bond--
       ``(A) such bond shall be treated as a qualified bond for 
     purposes of this section,
       ``(B) subsection (a) shall be applied without regard to the 
     requirement that the qualified bond be issued before January 
     1, 2011,
       ``(C) the amount of the payment determined under subsection 
     (b) with respect to any interest payment date under such bond 
     shall be--
       ``(i) in the case of a bond issued by a qualified small 
     issuer, 65 percent of the amount of interest payable on such 
     bond by such issuer with respect to such date, and
       ``(ii) in the case of a bond issued by any other person, 45 
     percent of the amount of interest payable on such bond by 
     such issuer with respect to such date,
       ``(D) interest on any such bond shall be includible in 
     gross income for purposes of this title,
       ``(E) no credit shall be allowed under section 54A with 
     respect to such bond,
       ``(F) any payment made under subsection (b) shall not be 
     includible as income for purposes of this title, and
       ``(G) the deduction otherwise allowed under this title to 
     the issuer of such bond with respect to interest paid under 
     such bond shall be reduced by the amount of the payment made 
     under this section with respect to such interest.
       ``(2) Definitions.--For purposes of this subsection--
       ``(A) Specified tax credit bond.--The term `specified tax 
     credit bond' means any qualified tax credit bond (as defined 
     in section 54A(d)) if--
       ``(i) such bond is--

       ``(I) a new clean renewable energy bond (as defined in 
     section 54C),
       ``(II) a qualified energy conservation bond (as defined in 
     section 54D),
       ``(III) a qualified zone academy bond (as defined in 
     section 54E), or
       ``(IV) a qualified school construction bond (as defined in 
     section 54F), and

       ``(ii) the issuer of such bond makes an irrevocable 
     election to have this subsection apply,
       ``(B) Qualified small issuer.--The term `qualified small 
     issuer' means, with respect to

[[Page 2592]]

     any calendar year, any issuer who is not reasonably expected 
     to issue tax-exempt bonds (other than private activity bonds) 
     and specified tax credit bonds (determined without regard to 
     whether an election is made under this subsection) during 
     such calendar year in an aggregate face amount exceeding 
     $30,000,000.''.
       (b) Technical Corrections Relating to Qualified School 
     Construction Bonds.--
       (1) The second sentence of section 54F(d)(1) is amended by 
     striking ``by the State'' and inserting ``by the State 
     education agency (or such other agency as is authorized under 
     State law to make such allocation)''.
       (2) The second sentence of section 54F(e) is amended by 
     striking ``subsection (d)(4)'' and inserting ``paragraphs (2) 
     and (4) of subsection (d)''.
       (c) Effective Dates.--
       (1) In general.--The amendment made by subsection (a) shall 
     apply to bonds issued after the date of the enactment of this 
     Act.
       (2) Technical corrections.--The amendments made by 
     subsection (b) shall take effect as if included in section 
     1521 of the American Recovery and Reinvestment Tax Act of 
     2009.

     TITLE IV--EXTENSION OF CURRENT SURFACE TRANSPORTATION PROGRAMS

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``Surface Transportation 
     Extension Act of 2010''.

                    Subtitle A--Federal-aid Highways

     SEC. 411. IN GENERAL.

       (a) In General.--Except as provided in this Act, 
     requirements, authorities, conditions, eligibilities, 
     limitations, and other provisions authorized under titles I, 
     V, and VI of the SAFETEA-LU (119 Stat. 1144), the SAFETEA-LU 
     Technical Corrections Act of 2008 (122 Stat. 1572), titles I 
     and VI of the Intermodal Surface Transportation Act of 1991 
     (105 Stat. 1914), titles I and V of the Transportation Equity 
     Act for the 21st Century (112 Stat. 107), and title 23, 
     United States Code (excluding chapter 4 of that title), which 
     would otherwise expire on or cease to apply after September 
     30, 2009, or the date specified in section 106(3) of the 
     Continuing Appropriations Resolution, 2010 (Public Law 111-
     68), are incorporated by reference and shall continue in 
     effect until December 31, 2010.
       (b) Authorization of Appropriations.--Except as provided in 
     section 412, there are authorized to be appropriated out of 
     the Highway Trust Fund (other than the Mass Transit 
     Account)--
       (1) for fiscal year 2010, a sum equal to the total amount 
     authorized to be appropriated out of the Highway Trust Fund 
     for programs, projects, and activities for fiscal year 2009 
     under titles I, V, and VI of the SAFETEA-LU (119 Stat. 1144), 
     and title 23, United States Code (excluding chapter 4 of that 
     title); and
       (2) for the period beginning on October 1, 2010, and ending 
     on December 31, 2010, a sum equal to \1/4\ of the total 
     amount authorized to be appropriated out of the Highway Trust 
     Fund for programs, projects, and activities for fiscal year 
     2009 under titles I, V, and VI of the SAFETEA-LU (119 Stat. 
     1144), and title 23, United States Code (excluding chapter 4 
     of that title).
       (c) Use of Funds.--
       (1) Fiscal year 2010.--Except as otherwise expressly 
     provided in this Act, funds authorized to be appropriated 
     under subsection (b)(1) for fiscal year 2010 shall be 
     distributed, administered, limited, and made available for 
     obligation in the same manner and at the same level as funds 
     authorized to be appropriated out of the Highway Trust Fund 
     for fiscal year 2009 to carry out programs, projects, 
     activities, eligibilities, and requirements under the 
     SAFETEA-LU (119 Stat. 1144), the SAFETEA-LU Technical 
     Corrections Act of 2008 (122 Stat. 1572), titles I and VI of 
     the Intermodal Surface Transportation Act of 1991 (105 Stat. 
     1914), titles I and V of the Transportation Equity Act for 
     the 21st Century (112 Stat. 107), and title 23, United States 
     Code (excluding chapter 4 of that title).
       (2) Fiscal year 2011.--Except as otherwise expressly 
     provided in this Act, funds authorized to be appropriated 
     under subsection (b)(2) for the period beginning on October 
     1, 2010, and ending on December 31, 2010, shall be 
     distributed, administered, limited, and made available for 
     obligation in the same manner and at the same level as \1/4\ 
     of the total amount of funds authorized to be appropriated 
     out of the Highway Trust Fund for fiscal year 2009 to carry 
     out programs, projects, activities, eligibilities, and 
     requirements under the SAFETEA-LU (119 Stat. 1144), the 
     SAFETEA-LU Technical Corrections Act of 2008 (122 Stat. 
     1572), titles I and VI of the Intermodal Surface 
     Transportation Act of 1991 (105 Stat. 1914), titles I and V 
     of the Transportation Equity Act for the 21st Century (112 
     Stat. 107), and title 23, United States Code (excluding 
     chapter 4 of that title).
       (3) Calculation.--The amounts authorized to be appropriated 
     under subsection (b) shall be calculated without regard to 
     any rescission or cancellation of funds or contract authority 
     for fiscal year 2009 under the SAFETEA-LU (119 Stat. 1144) or 
     any other law.
       (4) Contract authority.--
       (A) In general.--Except as provided in subparagraph (B), 
     funds authorized to be appropriated under this section shall 
     be available for obligation and shall be administered in the 
     same manner as if such funds were apportioned under chapter 1 
     of title 23, United States Code, and--
       (i) for fiscal year 2010, shall be subject to a limitation 
     on obligations for Federal-aid highways and highway safety 
     construction programs included in an Act making 
     appropriations for fiscal year 2010 or a portion of that 
     fiscal year; and
       (ii) for the period beginning on October 1, 2010, and 
     ending on December 31, 2010, shall be subject to a limitation 
     on obligations included in an Act making appropriations for 
     fiscal year 2011 or a portion of that fiscal year, except 
     that during such period obligations subject to such 
     limitation shall not exceed \1/4\ of the limitation on 
     obligations included in an Act making appropriations for 
     fiscal year 2011.
       (B) Exceptions.--A limitation on obligations described in 
     clause (i) or (ii) of subparagraph (A) shall not apply to any 
     obligation under--
       (i) section 125 of title 23, United States Code; or
       (ii) section 105 of title 23, United States Code--

       (I) for fiscal year 2010, only in an amount equal to 
     $639,000,000; and
       (II) for the period beginning on October 1, 2010, and 
     ending on December 31, 2010, only in an amount equal to 
     $159,750,000.

       (5) Calculations for distribution of obligation 
     limitation.--Upon enactment of an Act making appropriations 
     for the Department of Transportation for fiscal year 2011 
     (other than an Act or resolution making continuing 
     appropriations), the Secretary shall--
       (A) as necessary for purposes of making the calculations 
     for the distribution of any obligation limitation under such 
     Act, annualize the amount of contract authority provided 
     under this Act for Federal-aid highways and highway safety 
     construction programs; and
       (B) multiply the resulting distribution of any obligation 
     limitation under such Act by \1/4\.
       (d) Extension and Flexibility for Certain Allocated 
     Programs.--
       (1) Fiscal year 2010.--Notwithstanding any other provision 
     of law, for fiscal year 2010, the portion of the share of 
     funds of a State under subsection (b)(1) determined by the 
     amount that the State received or was authorized to receive 
     for fiscal year 2009 to carry out sections 1301, 1302, 1307, 
     1702, and 1934 of the SAFETEA-LU (119 Stat. 1198, 1204, 1217, 
     1256, and 1485), and section 144(f)(1) of title 23, United 
     States Code, shall be--
       (A) made available to the State for programs apportioned 
     under sections 104(b) and 144 of title 23, United States 
     Code, and in the same proportion for each such program that--
       (i) the amount apportioned to the State for that program 
     for fiscal year 2009; bears to
       (ii) the amount apportioned to the State for fiscal year 
     2009 for all programs apportioned under such sections of such 
     Code; and
       (B) administered in the same manner and with the same 
     period of availability as such funding is administered under 
     programs identified in subparagraph (A), except that no funds 
     may be used to carry out the project described in section 
     1307(d)(1) of the SAFETEA-LU (119 Stat. 1217; 122 Stat. 
     1577).
       (2) Fiscal year 2011.--Notwithstanding any other provision 
     of law, for the period beginning on October 1, 2010, and 
     ending on December 31, 2010, the portion of the share of 
     funds of a State under subsection (b)(2) determined by \1/4\ 
     of the amount that the State received or was authorized to 
     receive for fiscal year 2009 to carry out sections 1301, 
     1302, 1307, 1702, and 1934 of the SAFETEA-LU (119 Stat. 1198, 
     1204, 1217, 1256, and 1485) and section 144(f)(1) of title 
     23, United States Code, shall be--
       (A) made available to the State for programs apportioned 
     under sections 104(b) and 144 of title 23, United States 
     Code, and in the same proportion for each such program that--
       (i) the amount apportioned to the State for that program 
     for fiscal year 2009; bears to
       (ii) the amount apportioned to the State for fiscal year 
     2009 for all programs apportioned under such sections of such 
     Code; and
       (B) administered in the same manner and with the same 
     period of availability as such funding is administered under 
     programs identified in subparagraph (A), except that no funds 
     may be used to carry out the project described in section 
     1307(d)(1) of the SAFETEA-LU (119 Stat. 1217; 122 Stat. 
     1577).
       (3) Territories and puerto rico.--
       (A) Fiscal year 2010.--Notwithstanding any other provision 
     of law, for fiscal year 2010, the portion of the share of 
     funds of a territory or Puerto Rico under paragraph (b)(1) 
     determined by the amount that the territory or Puerto Rico 
     received or was authorized to receive for fiscal year 2009 to 
     carry out section 1934 of SAFETEA-LU (119 Stat. 1485), shall 
     be--
       (i) for a territory, made available and administered in the 
     same manner as funding is made available and administered 
     under section 215 of title 23, United States Code; and
       (ii) for Puerto Rico, made available and administered in 
     the same manner as funding is made available and administered 
     under section 165 of title 23, United States Code.
       (B) Fiscal year 2011.--Notwithstanding any other provision 
     of law, for the period beginning on October 1, 2010, and 
     ending on December 31, 2010, the portion of the share of 
     funds of a territory or Puerto Rico under paragraph (b)(2) 
     determined by \1/4\ of the amount that the territory or 
     Puerto Rico received or was authorized to receive for fiscal 
     year 2009 to carry out section 1934 of SAFETEA-LU (119 Stat. 
     1485), shall be--
       (i) for a territory, made available and administered in the 
     same manner as funding is made available and administered 
     under section 215 of title 23, United States Code; and
       (ii) for Puerto Rico, made available and administered in 
     the same manner as funding is made available and administered 
     under section 165 of title 23, United States Code.
       (C) Territory defined.--In this paragraph, the term 
     ``territory'' means any of the following

[[Page 2593]]

     territories of the United States: American Samoa, the 
     Commonwealth of the Northern Mariana Islands, Guam, or the 
     United States Virgin Islands.
       (4) Additional funds.--
       (A) In general.--No additional funds shall be provided for 
     any project or activity under subsection (c), or paragraph 
     (1) or (2) of this subsection, that the Secretary of 
     Transportation determines was sufficiently funded before or 
     during fiscal year 2009 to achieve the authorized purpose of 
     the project or activity.
       (B) Reservation and redistribution of funds.--Funds made 
     available in accordance with paragraph (1) or (2) of 
     subsection (c) or paragraph (1) or (2) of this subsection for 
     a project or activity described in subparagraph (A) shall 
     be--
       (i) reserved by the Secretary of Transportation; and
       (ii) distributed to each State in accordance with paragraph 
     (1) or (2) of subsection (c), or paragraph (1) or (2) of this 
     subsection, as appropriate, for use in carrying out other 
     highway projects and activities extended by subsection (c) or 
     this subsection, in the proportion that--

       (I) the total amount of funds made available for fiscal 
     year 2009 for projects and activities described in 
     subparagraph (A) in the State; bears to
       (II) the total amount of funds made available for fiscal 
     year 2009 for those projects and activities in all States.

       (e) Extension of Authorizations Under Title V of SAFETEA-
     LU.--
       (1) In general.--The programs authorized under paragraphs 
     (1) through (5) of section 5101(a) of the SAFETEA-LU (119 
     Stat. 1779) shall be continued--
       (A) for fiscal year 2010, at the funding levels authorized 
     for those programs for fiscal year 2009; and
       (B) for the period beginning on October 1, 2010, and ending 
     on December 31, 2010, at \1/4\ the funding levels authorized 
     for those programs for fiscal year 2009.
       (2) Distribution of funds.--Funds for programs continued 
     under paragraph (1) shall be distributed to major program 
     areas under those programs in the same proportions as funds 
     were allocated for those program areas for fiscal year 2009, 
     except that designations for specific activities shall not be 
     required to be continued for--
       (A) fiscal year 2010; or
       (B) the period beginning on October 1, 2010, and ending on 
     December 31, 2010.
       (3) Additional funds.--
       (A) In general.--No additional funds shall be provided for 
     any project or activity under this subsection that the 
     Secretary of Transportation determines was sufficiently 
     funded before or during fiscal year 2009 to achieve the 
     authorized purpose of the project or activity.
       (B) Distribution.--Funds that would have been made 
     available under paragraph (1) for a project or activity but 
     for the prohibition under subparagraph (A) shall be 
     distributed in accordance with paragraph (2).

     SEC. 412. ADMINISTRATIVE EXPENSES.

       (a) Authorization of Contract Authority.--Notwithstanding 
     any other provision of this Act or any other law, there are 
     authorized to be appropriated from the Highway Trust Fund 
     (other than the Mass Transit Account), from amounts provided 
     under section 411, for administrative expenses of the 
     Federal-aid highway program--
       (1) $422,425,000 for fiscal year 2010; and
       (2) $105,606,250 for the period beginning on October 1, 
     2010, and ending on December 31, 2010.
       (b) Contract Authority.--Funds authorized to be 
     appropriated by this section shall be--
       (1) available for obligation, and shall be administered, in 
     the same manner as if such funds were apportioned under 
     chapter 1 of title 23, United States Code; and
       (2) subject to a limitation on obligations for Federal-aid 
     highways and highway safety construction programs, except 
     that such funds shall remain available until expended.

     SEC. 413. RESCISSION OF UNOBLIGATED BALANCES.

       (a) In General.--The Secretary of Transportation shall 
     restore funds rescinded pursuant to section 10212 of the 
     SAFETEA-LU (Public Law 109-59; 119 Stat. 1937) to the States 
     and to the programs from which the funds were rescinded.
       (b) Administration of Funds.--The restored amounts shall be 
     administered in the same manner as the funds originally 
     rescinded, except those funds may only be used with an 
     obligation limitation provided in an Act making 
     appropriations for Federal-aid highways and highway safety 
     construction programs enacted after implementation of the 
     rescission under section 10212 of the SAFETEA-LU (Public Law 
     109-59; 119 Stat. 1937).
       (c) Funding.--
       (1) In general.--There is authorized to be appropriated 
     from the Highway Trust Fund (other than the Mass Transit 
     Account) for fiscal year 2010 to carry out this section an 
     amount equal to the amount of funds rescinded under section 
     10212 of the SAFETEA-LU (Public Law 109-59; 119 Stat. 1937).
       (2) Availability for obligation.--Funds authorized to be 
     appropriated by this section shall be--
       (A) made available under this section and available for 
     obligation in the same manner as if the funds were 
     apportioned under chapter 1 of title 23, United States Code, 
     except that the funds shall retain the characteristics of the 
     funds originally rescinded; and
       (B) subject to a limitation on obligations for Federal-aid 
     highways and highway safety construction programs included in 
     an Act making appropriations for fiscal year 2010 or a 
     portion of the fiscal year.
       (d) Limitation.--No funds authorized to be restored under 
     this section shall be restored after the end of fiscal year 
     2010.

     SEC. 414. RECONCILIATION OF FUNDS.

       The Secretary shall reduce the amount apportioned or 
     allocated for a program, project, or activity under this 
     title by amounts apportioned or allocated pursuant to the 
     Continuing Appropriations Resolution, 2010 (Public Law 111-
     68).

  Subtitle B--National Highway Traffic Safety Administration, Federal 
      Motor Carrier Safety Administration, and Additional Programs

     SEC. 421. EXTENSION OF NATIONAL HIGHWAY TRAFFIC SAFETY 
                   ADMINISTRATION HIGHWAY SAFETY PROGRAMS.

       (a) Chapter 4 Highway Safety Programs.--Section 2001(a)(1) 
     of the SAFETEA-LU (119 Stat. 1519) is amended--
       (1) by striking ``and''; and
       (2) by striking ``2009.'' and inserting ``2009, 
     $235,000,000 for fiscal year 2010, and $58,750,000 for the 
     period beginning on October 1, 2010, and ending on December 
     31, 2010.''.
       (b) Highway Safety Research and Development.--Section 
     2001(a)(2) of the SAFETEA-LU (119 Stat. 1519) is amended--
       (1) by striking ``and''; and
       (2) by striking ``2009.'' and inserting ``2009, 
     $107,329,000 for fiscal year 2010, and $27,061,000 for the 
     period beginning on October 1, 2010, and ending on December 
     31, 2010.''.
       (c) Occupant Protection Incentive Grants.--
       (1) Extension of program.--Section 405(a) of title 23, 
     United States Code, is amended--
       (A) in paragraph (3), by striking ``6'' and inserting 
     ``8''; and
       (B) in paragraph (4)(C), by striking ``fifth and sixth'' 
     and inserting ``fifth through eighth''.
       (2) Authorization of appropriations.--Section 2001(a)(3) of 
     the SAFETEA-LU (119 Stat. 1519) is amended--
       (A) by striking ``and''; and
       (B) by striking ``2009.'' and inserting ``2009, $25,000,000 
     for fiscal year 2010, and $6,250,000 for the period beginning 
     on October 1, 2010, and ending on December 31, 2010.''.
       (d) Safety Belt Performance Grants.--Section 2001(a)(4) of 
     the SAFETEA-LU (119 Stat. 1519) is amended--
       (1) by striking ``and''; and
       (2) by striking ``2009.'' and inserting ``2009, 
     $124,500,000 for fiscal year 2010, and $31,125,000 for the 
     period beginning on October 1, 2010, and ending on December 
     31, 2010.''.
       (e) State Traffic Safety Information System Improvements.--
     Section 2001(a)(5) of the SAFETEA-LU (119 Stat. 1519) is 
     amended--
       (1) by striking ``and''; and
       (2) by striking ``2009.'' and inserting ``2009, $34,500,000 
     for fiscal year 2010, and $8,625,000 for the period beginning 
     on October 1, 2010, and ending on December 31, 2010.''.
       (f) Alcohol-impaired Driving Countermeasures Incentive 
     Grant Program.--
       (1) Extension of program.--Section 410 of title 23, United 
     States Code, is amended--
       (A) in subsection (a)(3)(C), by striking ``fifth, sixth, 
     seventh, and eighth'' and inserting ``fifth through tenth''; 
     and
       (B) in subsection (b)(2)(C), by striking ``2008 and 2009'' 
     and inserting ``2008, 2009, 2010, and 2011''.
       (2) Authorization of appropriations.--Section 2001(a)(6) of 
     the SAFETEA-LU (119 Stat. 1519) is amended--
       (A) by striking ``and''; and
       (B) by striking ``2009.'' and inserting ``2009, 
     $139,000,000 for fiscal year 2010, and $34,750,000 for the 
     period beginning on October 1, 2010, and ending on December 
     31, 2010.''.
       (g) National Driver Register.--Section 2001(a)(7) of the 
     SAFETEA-LU (119 Stat. 1520) is amended--
       (1) by striking ``and''; and
       (2) by striking ``2009.'' and inserting ``2009, $4,078,000 
     for fiscal year 2010, and $1,029,000 for the period beginning 
     on October 1, 2010, and ending on December 31, 2010.''.
       (h) High Visibility Enforcement Program.--
       (1) Extension of program.--Section 2009(a) of the SAFETEA-
     LU (23 U.S.C. 402 note) is amended by striking ``2009'' and 
     inserting ``2011''.
       (2) Authorization of appropriations.--Section 2001(a)(8) of 
     the SAFETEA-LU (119 Stat. 1520) is amended--
       (A) by striking ``and''; and
       (B) by striking ``2009.'' and inserting ``2009, $29,000,000 
     for fiscal year 2010, and $7,250,000 for the period beginning 
     on October 1, 2010, and ending on December 31, 2010.''.
       (i) Motorcyclist Safety.--
       (1) Extension of program.--Section 2010(d)(1)(B) of the 
     SAFETEA-LU (23 U.S.C. 402 note) is amended by striking ``and 
     fourth'' and inserting ``fourth, fifth, and sixth''.
       (2) Authorization of appropriations.--Section 2001(a)(9) of 
     the SAFETEA-LU (119 Stat. 1520) is amended--
       (A) by striking ``and''; and
       (B) by striking ``2009.'' and inserting ``2009, $7,000,000 
     for fiscal year 2010, and $1,750,000 for the period beginning 
     on October 1, 2010, and ending on December 31, 2010.''.
       (j) Child Safety and Child Booster Seat Safety Incentive 
     Grants.--
       (1) Extension of program.--Section 2011(c)(2) of the 
     SAFETEA-LU (23 U.S.C. 405 note) is amended by striking 
     ``fourth fiscal year'' and inserting ``fourth, fifth, and 
     sixth fiscal years''.

[[Page 2594]]

       (2) Authorization of appropriations.--Section 2001(a)(10) 
     of the SAFETEA-LU (119 Stat. 1520) is amended--
       (A) by striking ``and''; and
       (B) by striking ``2009.'' and inserting ``2009, $7,000,000 
     for fiscal year 2010, and $1,750,000 for the period beginning 
     on October 1, 2010, and ending on December 31, 2010.''.
       (k) Administrative Expenses.--Section 2001(a)(11) of the 
     SAFETEA-LU (119 Stat. 1520) is amended--
       (1) by striking ``and'' the last place it appears; and
       (2) by striking ``2009.'' and inserting ``2009, $25,047,000 
     for fiscal year 2010, and $6,332,000 for the period beginning 
     on October 1, 2010, and ending on December 31, 2010.''.
       (l) Applicability of Title 23.--Section 2001(c) of the 
     SAFETEA-LU (119 Stat. 1520) is amended by striking ``2009'' 
     and inserting ``2011''.
       (m) Drug-impaired Driving Enforcement.--Section 2013(f) of 
     the SAFETEA-LU (23 U.S.C. 403 note) is amended by striking 
     ``2009'' and inserting ``2011''.
       (n) Older Driver Safety; Law Enforcement Training.--Section 
     2017 of the SAFETEA-LU is amended--
       (1) in subsection (a)(1) (119 Stat. 1541), by striking 
     ``2009'' and inserting ``2011''; and
       (2) in subsection (b)(2) (23 U.S.C. 402 note), by striking 
     ``2009'' and inserting ``2011''.

     SEC. 422. EXTENSION OF FEDERAL MOTOR CARRIER SAFETY 
                   ADMINISTRATION PROGRAMS.

       (a) Motor Carrier Safety Grants.--Section 31104(a) of title 
     49, United States Code, is amended--
       (1) in paragraph (4), by striking ``and'' at the end;
       (2) in paragraph (5), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(6) $209,000,000 for fiscal year 2010; and
       ``(7) $52,679,000 for the period beginning on October 1, 
     2010, and ending on December 31, 2010.''.
       (b) Administrative Expenses.--Section 31104(i)(1) of title 
     49, United States Code, is amended--
       (1) in subparagraph (D), by striking ``and'';
       (2) in subparagraph (E), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(F) ``(F) $239,828,000 for fiscal year 2010; and
       ``(G) ``(G) $61,036,000 for the period beginning on October 
     1, 2010, and ending on December 31, 2010.''.
       (c) Grant Programs.--Section 4101(c) of the SAFETEA-LU (119 
     Stat. 1715) is amended--
       (1) in paragraph (1), by striking ``2009.'' and inserting 
     ``2009, and $25,000,000 for fiscal year 2010, and $6,301,000 
     for the period beginning on October 1, 2010, and ending on 
     December 31, 2010.'';
       (2) in paragraph (2), by striking ``2009.'' and inserting 
     ``2009, $32,000,000 for fiscal year 2010, and $8,066,000 for 
     the period beginning on October 1, 2010, and ending on 
     December 31, 2010.'';
       (3) in paragraph (3), by striking ``2009.'' and inserting 
     ``2009, $5,000,000 for fiscal year 2010, and $1,260,000 for 
     the period beginning on October 1, 2010, and ending on 
     December 31, 2010.'';
       (4) in paragraph (4), by striking ``2009.'' and inserting 
     ``2009, $25,000,000 for fiscal year 2010, and $6,301,000 for 
     the period beginning on October 1, 2010, and ending on 
     December 31, 2010.''; and
       (5) in paragraph (5), by striking ``2009.'' and inserting 
     ``2009, $3,000,000 for fiscal year 2010, and $756,000 for the 
     period beginning on October 1, 2010, and ending on December 
     31, 2010.''.
       (d) High-priority Activities.--Section 31104(k) of title 
     49, United States Code, is amended by striking ``2009'' in 
     paragraph (2) and inserting ``2009, $15,000,000 for fiscal 
     year 2010, and $3,781,000 for the period beginning on October 
     1, 2010, and ending on December 31, 2010''.
       (e) New Entrant Audits.--Section 31144(g)(5)(B) of title 
     49, United States Code, is amended by inserting ``(and up to 
     $7,310,000 for the period beginning on October 1, 2010, and 
     ending on December 31, 2010)'' after ``fiscal year''.
       (f) Commercial Driver's License Information System 
     Modernization.--Section 4123(d) of the SAFETEA-LU (119 Stat. 
     1736) is amended--
       (1) in paragraph (3), by striking ``and'' at the end;
       (2) in paragraph (4), by striking the period at the end and 
     inserting a semicolon; and
       (3) by adding at the end the following:
       ``(5) $8,000,000 for fiscal year 2010; and
       ``(6) $2,016,000 for the period beginning on October 1, 
     2010, and ending on December 31, 2010.''.
       (g) Outreach and Education.--Section 4127(e) of the 
     SAFETEA-LU (119 Stat. 1741) is amended by striking ``and 
     2009'' and inserting ``2009, and 2010, and $252,000 to the 
     Federal Motor Carrier Safety Administration, and $756,000 to 
     the National Highway Traffic Safety Administration, for the 
     period beginning on October 1, 2010, and ending on December 
     31, 2010,''.
       (h) Grant Program for Commercial Motor Vehicle Operators.--
     Section 4134(c) of the SAFETEA-LU (119 Stat. 1744) is amended 
     by striking ``2009'' and inserting ``2009, 2010, and $252,000 
     for the period beginning on October 1, 2010, and ending on 
     December 31, 2010,''.
       (i) Motor Carrier Safety Advisory Committee.--Section 
     4144(d) of the SAFETEA-LU (1119 Stat. 1748) is amended by 
     striking ``September 30, 2010'' and inserting ``December 31, 
     2010''.
       (j) Working Group for Development of Practices and 
     Procedures To Enhance Federal-State Relations.--Section 
     4213(d) of the SAFETEA-LU (49 U.S.C. 14710 note) is amended 
     by striking ``September 30, 2009'' and inserting ``December 
     31, 2010''.

     SEC. 423. ADDITIONAL PROGRAMS.

       (a) Hazardous Materials Research Projects.--Section 7131(c) 
     of the SAFETEA-LU (119 Stat. 1910) is amended by striking 
     ``through 2009'' and inserting ``through 2010, and $315,000 
     for the period beginning on October 1, 2010, and ending on 
     December 31, 2010,''.
       (b) Dingell-Johnson Sport Fish Restoration Act.--Section 4 
     of the Dingell-Johnson Sport Fish Restoration Act (16 U.S.C. 
     777c) is amended--
       (1) in subsection (a), in the matter preceding paragraph 
     (1), by striking ``2009,'' and inserting ``2010 and for the 
     period beginning on October 1, 2010, and ending on December 
     31, 2010,''; and
       (2) in subsection (b)(1)(A), by striking ``2010,'' and 
     inserting ``and for the period beginning on October 1, 2010, 
     and ending on December 31, 2010,''.

               Subtitle C--Public Transportation Programs

     SEC. 431. ALLOCATION OF FUNDS FOR PLANNING PROGRAMS.

       Section 5305(g) of title 49, United States Code, is amended 
     by striking ``2009'' and inserting ``2010, and for the period 
     beginning October 1, 2010, and ending December 31, 2010,''.

     SEC. 432. SPECIAL RULE FOR URBANIZED AREA FORMULA GRANTS.

       Section 5307(b)(2) of title 49, United States Code, is 
     amended--
       (1) in the paragraph heading, by striking ``2009'' and 
     inserting ``2010, and the period beginning october 1, 2010, 
     and ending december 31, 2010'';
       (2) in subparagraph (A), by striking ``2009,'' and 
     inserting ``2010, and the period beginning October 1, 2010, 
     and ending December 31, 2010,''; and
       (3) in subparagraph (E)--
       (A) in the subparagraph heading, by striking ``and 2009'' 
     and inserting ``through 2010 and during the period beginning 
     october 1, 2010, and ending december 31, 2010''; and
       (B) in the matter preceding clause (i), by striking ``and 
     2009'' and inserting ``through 2010, and during the period 
     beginning October 1, 2010, and ending December 31, 2010,''.

     SEC. 433. ALLOCATING AMOUNTS FOR CAPITAL INVESTMENT GRANTS.

       Section 5309(m) of title 49, United States Code, is 
     amended--
       (1) in paragraph (2)--
       (A) in the heading, by striking ``2009'' and inserting 
     ``2010 and october 1, 2010, through december 31, 2010'';
       (B) in the matter preceding subparagraph (A), by striking 
     ``2009'' and inserting ``2010, and during the period 
     beginning October 1, 2010, and ending December 31, 2010,''; 
     and
       (C) in subparagraph (A)(i), by striking ``2009'' and 
     inserting ``2010, and $50,000,000 for the period beginning 
     October 1, 2010, and ending December 31, 2010,'';
       (2) in paragraph (6)--
       (A) in subparagraph (B), by striking ``2009'' and inserting 
     ``2010, and $3,750,000 shall be available for the period 
     beginning October 1, 2010, and ending December 31, 2010,''; 
     and
       (B) in subparagraph (C), by striking ``2009'' and inserting 
     ``2010, and $1,250,000 shall be available for the period 
     beginning October 1, 2010 and ending December 31, 2010,''; 
     and
       (3) in paragraph (7)--
       (A) in subparagraph (A)--
       (i) by redesignating clauses (i) through (viii) as 
     subclauses (I) through (VIII), respectively;
       (ii) in the matter preceding subclause (I), as so 
     redesignated, by striking ``$10,000,000'' and all that 
     follows through ``2009'' and inserting the following:
       ``(i) Fiscal years 2006 through 2010.--$10,000,000 shall be 
     available in each of fiscal years 2006 through 2010''; and
       (iii) by inserting after subclause (VIII), as so 
     redesignated, the following:
       ``(ii) Special rule for october 1, 2010, through december 
     31, 2010.--$2,500,000 shall be available in the period 
     beginning October 1, 2010, and ending December 31, 2010, for 
     ferry boats or ferry terminal facilities. The Secretary shall 
     set aside a portion of such amount in accordance with clause 
     (i), except that the Secretary shall set aside 25 percent of 
     each dollar amount specified in subclauses (I) through 
     (VIII).'';''.
       (B) in subparagraph (B), by inserting after ``2009.'' the 
     following:
       ``(v) $13,500,000 for fiscal year 2010.
       ``(vi) $3,375,000 for the period beginning October 1, 2010, 
     and ending December 31, 2010.'';
       (C) in subparagraph (C), by inserting ``, and during the 
     period beginning October 1, 2010, and ending December 31, 
     2010,'' after ``fiscal year'';
       (D) in subparagraph (D), by inserting ``, and not less than 
     $8,750,000 shall be available for the period beginning 
     October 1, 2010, and ending December 31, 2010,'' after 
     ``year''; and
       (E) in subparagraph (E), by inserting ``, and $750,000 
     shall be available for the period beginning October 1, 2010, 
     and ending December 31, 2010,'' after ``year''.

     SEC. 434. APPORTIONMENT OF FORMULA GRANTS FOR OTHER THAN 
                   URBANIZED AREAS.

       Section 5311(c)(1) of title 49, United States Code, is 
     amended by adding at the end the following:
       ``(E) $15,000,000 for fiscal year 2010.

[[Page 2595]]

       ``(F) $3,750,000 for the period beginning October 1, 2010, 
     and ending December 31, 2010.''.

     SEC. 435. APPORTIONMENT BASED ON FIXED GUIDEWAY FACTORS.

       Section 5337 of title 49, United States Code, is amended--
       (1) in subsection (a), in the matter preceding paragraph 
     (1), by striking ``2009'' and inserting ``2010''; and
       (2) by adding at the end the following:
       ``(g) Special Rule for October 1, 2010, Through December 
     31, 2010.--The Secretary shall apportion amounts made 
     available for fixed guideway modernization under section 5309 
     for the period beginning October 1, 2010, and ending December 
     31, 2010, in accordance with subsection (a), except that the 
     Secretary shall apportion 25 percent of each dollar amount 
     specified in subsection (a).''.

     SEC. 436. AUTHORIZATIONS FOR PUBLIC TRANSPORTATION.

       (a) Formula and Bus Grants.--Section 5338(b) of title 49, 
     United States Code, is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (C), by striking ``and'' at the end;
       (B) in subparagraph (D), by striking the period at the end 
     and inserting a semicolon; and
       (C) by adding at the end the following:
       ``(E) $8,360,565,000 for fiscal year 2010; and
       ``(F) $2,090,141,250 for the period beginning October 1, 
     2010, and ending December 31, 2010.''; and
       (2) in paragraph (2)--
       (A) in subparagraph (A), by striking ``and $113,500,000 for 
     fiscal year 2009'' and inserting ``$113,500,000 for each of 
     fiscal years 2009 and 2010, and $28,375,000 for the period 
     beginning October 1, 2010, and ending December 31, 2010,'';
       (B) in subparagraph (B), by striking ``and $4,160,365,000 
     for fiscal year 2009'' and inserting ``$4,160,365,000 for 
     each of fiscal years 2009 and 2010, and $1,040,091,250 for 
     the period beginning October 1, 2010, and ending December 31, 
     2010,'';
       (C) in subparagraph (C), by striking ``and $51,500,000 for 
     fiscal year 2009'' and inserting ``$51,500,000 for each of 
     fiscal years 2009 and 2010, and $12,875,000 for the period 
     beginning October 1, 2010, and ending December 31, 2010,'';
       (D) in subparagraph (D), by striking ``and $1,666,500,000 
     for fiscal year 2009'' and inserting ``$1,666,500,000 for 
     each of fiscal years 2009 and 2010, and $416,625,000 for the 
     period beginning October 1, 2010 and ending December 31, 
     2010,'';
       (E) in subparagraph (E), by striking ``and $984,000,000 for 
     fiscal year 2009'' and inserting ``$984,000,000 for each of 
     fiscal years 2009 and 2010, and $246,000,000 for the period 
     beginning October 1, 2010 and ending December 31, 2010,'';
       (F) in subparagraph (F), by striking ``and $133,500,000 for 
     fiscal year 2009'' and inserting ``$133,500,000 for each of 
     fiscal years 2009 and 2010, and $33,375,000 for the period 
     beginning October 1, 2010 and ending December 31, 2010,'';
       (G) in subparagraph (G), by striking ``and $465,000,000 for 
     fiscal year 2009'' and inserting ``$465,000,000 for each of 
     fiscal years 2009 and 2010, and $116,250,000 for the period 
     beginning October 1, 2010 and ending December 31, 2010,'';
       (H) in subparagraph (H), by striking ``and $164,500,000 for 
     fiscal year 2009'' and inserting ``$164,500,000 for each of 
     fiscal years 2009 and 2010, and $41,125,000 for the period 
     beginning October 1, 2010 and ending December 31, 2010,'';
       (I) in subparagraph (I), by striking ``and $92,500,000 for 
     fiscal year 2009'' and inserting ``$92,500,000 for each of 
     fiscal years 2009 and 2010, and $23,125,000 for the period 
     beginning October 1, 2010 and ending December 31, 2010,'';
       (J) in subparagraph (J), by striking ``and $26,900,000 for 
     fiscal year 2009'' and inserting ``$26,900,000 for each of 
     fiscal years 2009 and 2010, and $6,725,000 for the period 
     beginning October 1, 2010 and ending December 31, 2010,'';
       (K) in subparagraph (K), by striking ``and $3,500,000 for 
     fiscal year 2009'' and inserting ``$3,500,000 for each of 
     fiscal years 2009 and 2010, and $875,000 for the period 
     beginning October 1, 2010 and ending December 31, 2010,'';
       (L) in subparagraph (L), by striking ``and $25,000,000 for 
     fiscal year 2009'' and inserting ``$25,000,000 for each of 
     fiscal years 2009 and 2010, and $6,250,000 for the period 
     beginning October 1, 2010 and ending December 31, 2010,'';
       (M) in subparagraph (M), by striking ``and $465,000,000 for 
     fiscal year 2009'' and inserting ``$465,000,000 for each of 
     fiscal years 2009 and 2010, and $116,250,000 for the period 
     beginning October 1, 2010 and ending December 31, 2010,''; 
     and
       (N) in subparagraph (N), by striking ``and $8,800,000 for 
     fiscal year 2009'' and inserting ``$8,800,000 for each of 
     fiscal years 2009 and 2010, and $2,200,000 for the period 
     beginning October 1, 2010 and ending December 31, 2010,''.
       (b) Capital Investment Grants.--Section 5338(c) of title 
     49, United States Code, is amended--
       (1) in paragraph (3), by striking ``and'' at the end;
       (2) in paragraph (4), by striking the period at the end and 
     inserting a semicolon; and
       (3) by adding at the end the following:
       ``(5) $2,000,000,000 for fiscal year 2010; and
       ``(6) $500,000,000 for the period of October 1, 2010 
     through December 31, 2010.''.
       (c) Research and University Research Centers.--Section 
     5338(d) of title 49, United States Code, is amended--
       (1) in paragraph (1), in the matter preceding subparagraph 
     (A), by striking ``and $69,750,000 for fiscal year 2009'' and 
     inserting ``$69,750,000 for each of fiscal years 2009 and 
     2010, and $17,437,500 for the period beginning October 1, 
     2010, and ending December 31, 2010''; and
       (2) by adding at the end the following:
       ``(3) Additional authorizations.--
       ``(A) In general.--
       ``(i) Fiscal year 2010.--Of amounts authorized to be 
     appropriated for fiscal year 2010 under paragraph (1), the 
     Secretary shall allocate for each of the activities and 
     projects described in subparagraphs (A) through (F) of 
     paragraph (1) an amount equal to the amount allocated for 
     fiscal year 2009 under each such subparagraph.
       ``(ii) October 1, 2010 through december 31, 2010.--Of 
     amounts authorized to be appropriated for the period 
     beginning October 1, 2010, through December 31, 2010, under 
     paragraph (1), the Secretary shall allocate for each of the 
     activities and projects described in subparagraphs (A) 
     through (F) of paragraph (1) an amount equal to 25 percent of 
     the amount allocated for fiscal year 2009 under each such 
     subparagraph.
       ``(B) University centers program.--
       ``(i) Fiscal year 2010.--Of the amounts allocated under 
     subparagraph (A)(i) for the university centers program under 
     section 5506 for fiscal year 2010, the Secretary shall 
     allocate for each program described in clauses (i) through 
     (iii) and (v) through (viii) of paragraph (2)(A) an amount 
     equal to the amount allocated for fiscal year 2009 under each 
     such clause.
       ``(ii) October 1, 2010 through december 31, 2010.--Of the 
     amounts allocated under subparagraph (A)(i) for the 
     university centers program under section 5506 for the period 
     beginning October 1, 2010, and ending December 31, 2010, the 
     Secretary shall allocate for each program described in 
     clauses (i) through (iii) and (v) through (viii) of paragraph 
     (2)(A) an amount equal to 25 percent of the amount allocated 
     for fiscal year 2009 under each such clause.
       ``(iii) Funding.--If the Secretary determines that a 
     project or activity described in paragraph (2) received 
     sufficient funds in fiscal year 2009, or a previous fiscal 
     year, to carry out the purpose for which the project or 
     activity was authorized, the Secretary may not allocate any 
     amounts under clause (i) or (ii) for the project or activity 
     for fiscal year 2010, or any subsequent fiscal year.''.
       (d) Administration.--Section 5338(e) of title 49, United 
     States Code, is amended--
       (1) in paragraph (3), by striking ``and'' at the end;
       (2) in paragraph (4), by striking the period at the end and 
     inserting a semicolon; and
       (3) by adding at the end the following:
       ``(5) $98,911,000 for fiscal year 2010; and
       ``(6) $24,727,750 for the period beginning October 1, 2010, 
     and ending December 31, 2010.''.

     SEC. 437. AMENDMENTS TO SAFETEA-LU.

       (a) Contracted Paratransit Pilot.--Section 3009(i)(1) of 
     the SAFETEA-LU (Public Law 109-59; 119 Stat. 1572) is amended 
     by striking ``2009'' and inserting ``2010, and for the period 
     beginning October 1, 2010, and ending December 31, 2010''.
       (b) Public-private Partnership Pilot Program.--Section 3011 
     of the SAFETEA-LU (49 U.S.C. 5309 note) is amended--
       (1) in subsection (c)(5), by striking ``2009'' and 
     inserting ``2010 and the period beginning October 1, 2010, 
     and ending December 31, 2010''; and
       (2) in subsection (d), by striking ``2009'' and inserting 
     ``2010, and for the period beginning October 1, 2010, and 
     ending December 31, 2010''.
       (c) Elderly Individuals and Individuals With Disabilities 
     Pilot Program.--Section 3012(b)(8) of the SAFETEA-LU (49 
     U.S.C. 5310 note) is amended by striking ``September 30, 
     2009'' and inserting ``December 31, 2010''.
       (d) Obligation Ceiling.--Section 3040 of the SAFETEA-LU 
     (Public Law 109-59; 119 Stat. 1639) is amended--
       (1) in paragraph (4), by striking ``and'' at the end;
       (2) in paragraph (5), by striking the period at the end and 
     inserting a semicolon; and
       (3) by adding at the end the following:
       ``(6) $10,507,752,000 for fiscal year 2010, of which not 
     more than $8,360,565,000 shall be from the Mass Transit 
     Account; and
       ``(7) $2,626,938,000 for the period beginning October 1, 
     2010, and ending December 31, 2010, of which not more than 
     $2,090,141,250 shall be from the Mass Transit Account.''.
       (e) Project Authorizations for New Fixed Guideway Capital 
     Projects.--Section 3043 of the SAFETEA-LU (Public Law 109-59; 
     119 Stat. 1640) is amended--
       (1) in subsection (b), in the matter preceding paragraph 
     (1), by striking ``2009'' and inserting ``2010, and for the 
     period beginning October 1, 2010, and ending December 31, 
     2010,''; and
       (2) in subsection (c), in the matter preceding paragraph 
     (1), by striking ``2009'' and inserting ``2010, and for the 
     period beginning October 1, 2010, and ending December 31, 
     2010,''.
       (f) Allocations for National Research and Technology 
     Programs.--Section 3046 of the SAFETEA-LU (49 U.S.C. 5338 
     note) is amended--
       (1) in subsection (b), by inserting ``or period'' after 
     ``fiscal year''; and
       (2) by adding at the end the following:
       ``(c) Additional Appropriations.--The Secretary shall 
     allocate amounts appropriated pursuant to section 5338(d) of 
     title 49, United States Code, for national research and 
     technology programs under sections 5312, 5314, and 5322 of 
     such title--
       ``(1) for fiscal year 2010, in amounts equal to the amounts 
     allocated for fiscal year 2009 under each of paragraphs (2), 
     (3), (5), (6), and (8) through (25) of subsection (a); and
       ``(2) for the period beginning October 1, 2010, and ending 
     December 31, 2010, in amounts equal to 25 percent of the 
     amounts allocated for fiscal year 2009 under each of 
     paragraphs (2), (3), (5), (6), and (8) through (25) of 
     subsection (a).

[[Page 2596]]

       ``(d) Funding.--If the Secretary determines that a project 
     or activity described in subsection (a) received sufficient 
     funds in fiscal year 2009, or a previous fiscal year, to 
     carry out the purpose for which the project or activity was 
     authorized, the Secretary may not allocate any amounts under 
     subsection (c) for the project or activity for fiscal year 
     2010, or any subsequent fiscal year.''.

                     Subtitle D--Revenue Provisions

     SEC. 441. REPEAL OF PROVISION PROHIBITING THE CREDITING OF 
                   INTEREST TO THE HIGHWAY TRUST FUND.

       (a) In General.--Paragraph (1) of section 9503(f) is 
     amended by striking subparagraph (B).
       (b) Conforming Amendments.--Such paragraph, as amended by 
     paragraph (1), is further amended--
       (1) by striking ``, and'' at the end of subparagraph (A) 
     and inserting a period; and
       (2) by striking ``1998'' in the matter preceding 
     subparagraph (A) and all that follows through ``the opening 
     balance'' and inserting ``1998, the opening balance''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this title.

     SEC. 442. RESTORATION OF CERTAIN FOREGONE INTEREST TO HIGHWAY 
                   TRUST FUND.

       (a) In General.--Paragraph (2) of section 9503(f) is 
     amended to read as follows:
       ``(2) Restoration of foregone interest.--Out of money in 
     the Treasury not otherwise appropriated, there is hereby 
     appropriated--
       ``(A) $14,700,000,000 to the Highway Account (as defined in 
     subsection (e)(5)(B)) in the Highway Trust Fund; and
       ``(B) $4,800,000,000 to the Mass Transit Account in the 
     Highway Trust Fund.''.
       (b) Conforming Amendment.--Paragraph (1) of section 9503(e) 
     is amended by striking ``this subsection'' and inserting 
     ``this section''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 443. TREATMENT OF CERTAIN AMOUNTS APPROPRIATED TO 
                   HIGHWAY TRUST FUND.

       (a) In General.--Section 9503(f), as amended by this Act, 
     is amended by adding at the end the following new paragraph:
       ``(4) Treatment of appropriated amounts.--Any amount 
     appropriated under this subsection to the Highway Trust Fund 
     shall remain available without fiscal year limitation.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 444. TERMINATION OF TRANSFERS FROM HIGHWAY TRUST FUND 
                   FOR CERTAIN REPAYMENTS AND CREDITS.

       (a) In General.--Section 9503(c) is amended by striking 
     paragraph (2) and by redesignating paragraphs (3), (4), (5), 
     and (6) as paragraphs (2), (3), (4), and (5), respectively.
       (b) Conforming Amendments.--
       (1) Section 9502(a) is amended by striking ``section 
     9503(c)(7)'' and inserting ``section 9503(c)(5)''.
       (2) Section 9503(b)(4)(D) is amended by striking 
     ``paragraph (4)(D) or (5)(B)'' and inserting ``paragraph 
     (3)(D) or (4)(B)''.
       (3) Paragraph (2) of section 9503(c), as redesignated by 
     subsection (a), is amended by adding at the end the following 
     new sentence: ``The amounts payable from the Highway Trust 
     Fund under the preceding sentence shall be determined by 
     taking into account only the portion of the taxes which are 
     deposited into the Highway Trust Fund.''.
       (4) Section 9503(e)(5)(A) is amended by striking ``(2), 
     (3), and (4)'' and inserting ``(2) and (3)''.
       (5) Section 9504(a) is amended by striking ``section 
     9503(c)(4), section 9503(c)(5)'' and inserting ``section 
     9503(c)(3), section 9503(c)(4)''.
       (6) Section 9504(b)(2) is amended by striking ``section 
     9503(c)(5)'' and inserting ``section 9503(c)(4)''.
       (7) Section 9504(e) is amended by striking ``section 
     9503(c)(4)'' and inserting section ``9503(c)(3)''.
       (c) Effective Date.--The amendment made by this section 
     shall apply to transfers relating to amounts paid and credits 
     allowed after the date of the enactment of this Act.

     SEC. 445. EXTENSION OF AUTHORITY FOR EXPENDITURES.

       (a) Highways Trust Fund.--
       (1) Highway account.--Paragraph (1) of section 9503(c) is 
     amended--
       (A) by striking ``September 30, 2009 (October 1, 2009'' and 
     inserting ``December 31, 2010 (January 1, 2011''; and
       (B) by striking ``under'' and all that follows and 
     inserting ``under the Surface Transportation Extension Act of 
     2010 or any other provision of law which was referred to in 
     this paragraph before the date of the enactment of such Act 
     (as such Act and provisions of law are in effect on the date 
     of the enactment of such Act).''.
       (2) Mass transit account.--Paragraph (3) of section 9503(e) 
     is amended--
       (A) by striking ``October 1, 2009'' and inserting ``January 
     1, 2011''; and
       (B) by striking ``in accordance with'' and all that follows 
     and inserting ``in accordance with the Surface Transportation 
     Extension Act of 2010 or any other provision of law which was 
     referred to in this paragraph before the date of the 
     enactment of such Act (as such Act and provisions of law are 
     in effect on the date of the enactment of such Act).''.
       (3) Exception to limitation on transfers.--Subparagraph (B) 
     of section 9503(b)(6) is amended by striking ``September 30, 
     2009 (October 1, 2009'' and inserting ``December 31, 2010 
     (January 1, 2011''.
       (b) Sport Fish Restoration and Boating Trust Fund.--
       (1) In general.--Paragraph (2) of section 9504(b) is 
     amended--
       (A) by striking ``(as in effect'' in subparagraph (A) and 
     all that follows in such subparagraph and inserting ``(as in 
     effect on the date of the enactment of the Surface 
     Transportation Extension Act of 2010),'',
       (B) by striking ``(as in effect'' in subparagraph (B) and 
     all that follows in such subparagraph and inserting ``(as in 
     effect on the date of the enactment of the Surface 
     Transportation Extension Act of 2010), and'', and
       (C) by striking ``(as in effect'' in subparagraph (C) and 
     all that follows in such subparagraph and inserting ``(as in 
     effect on the date of the enactment of the Surface 
     Transportation Extension Act of 2010).''.
       (2) Exception to limitation on transfers.--Paragraph (2) of 
     section 9504(d) is amended by striking ``October 1, 2009'' 
     and inserting ``January 1, 2011''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on September 30, 2009.

     SEC. 446. LEVEL OF OBLIGATION LIMITATIONS.

       (a) Highway Category.--Section 8003(a) of the SAFETEA-LU (2 
     U.S.C. 901 note; 119 Stat. 1917) is amended--
       (1) in paragraph (4), by striking ``and'' at the end;
       (2) in paragraph (5), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(6) for the period beginning on October 1, 2009, and 
     ending on September 30, 2010, $42,469,970,178.
       ``(7) for the period beginning on October 1, 2010, and 
     ending on December 31, 2010, $10,617,492,545.''.
       (b) Mass Transit Category.--Section 8003(b) of the SAFETEA-
     LU (2 U.S.C. 901 note; 119 Stat. 1917) is amended--
       (1) in paragraph (4), by striking ``and'' at the end;
       (2) in paragraph (5), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(6) for the period beginning on October 1, 2009, and 
     ending on December 31, 2010, $10,338,065,000.
       ``(7) for the period beginning on October 1, 2010, and 
     ending on December 31, 2010, $2,584,516,250.''.
       (c) Treatment of Funds.--No adjustment pursuant to section 
     110 of title 23, United States Code, shall be made for fiscal 
     year 2010 or fiscal year 2011.
                       TITLE V--OFFSET PROVISIONS
               Subtitle A--Foreign Account Tax Compliance

           PART I--INCREASED DISCLOSURE OF BENEFICIAL OWNERS

     SEC. 501. REPORTING ON CERTAIN FOREIGN ACCOUNTS.

       (a) In General.--The Internal Revenue Code of 1986 is 
     amended by inserting after chapter 3 the following new 
     chapter:

  ``CHAPTER 4--TAXES TO ENFORCE REPORTING ON CERTAIN FOREIGN ACCOUNTS

``Sec. 1471. Withholdable payments to foreign financial institutions.
``Sec. 1472. Withholdable payments to other foreign entities.
``Sec. 1473. Definitions.
``Sec. 1474. Special rules.

     ``SEC. 1471. WITHHOLDABLE PAYMENTS TO FOREIGN FINANCIAL 
                   INSTITUTIONS.

       ``(a) In General.--In the case of any withholdable payment 
     to a foreign financial institution which does not meet the 
     requirements of subsection (b), the withholding agent with 
     respect to such payment shall deduct and withhold from such 
     payment a tax equal to 30 percent of the amount of such 
     payment.
       ``(b) Reporting Requirements, etc.--
       ``(1) In general.--The requirements of this subsection are 
     met with respect to any foreign financial institution if an 
     agreement is in effect between such institution and the 
     Secretary under which such institution agrees--
       ``(A) to obtain such information regarding each holder of 
     each account maintained by such institution as is necessary 
     to determine which (if any) of such accounts are United 
     States accounts,
       ``(B) to comply with such verification and due diligence 
     procedures as the Secretary may require with respect to the 
     identification of United States accounts,
       ``(C) in the case of any United States account maintained 
     by such institution, to report on an annual basis the 
     information described in subsection (c) with respect to such 
     account,
       ``(D) to deduct and withhold a tax equal to 30 percent of--
       ``(i) any passthru payment which is made by such 
     institution to a recalcitrant account holder or another 
     foreign financial institution which does not meet the 
     requirements of this subsection, and
       ``(ii) in the case of any passthru payment which is made by 
     such institution to a foreign financial institution which has 
     in effect an election under paragraph (3) with respect to 
     such payment, so much of such payment as is allocable to 
     accounts held by recalcitrant account holders or foreign 
     financial institutions which do not meet the requirements of 
     this subsection,
       ``(E) to comply with requests by the Secretary for 
     additional information with respect to any United States 
     account maintained by such institution, and

[[Page 2597]]

       ``(F) in any case in which any foreign law would (but for a 
     waiver described in clause (i)) prevent the reporting of any 
     information referred to in this subsection or subsection (c) 
     with respect to any United States account maintained by such 
     institution--
       ``(i) to attempt to obtain a valid and effective waiver of 
     such law from each holder of such account, and
       ``(ii) if a waiver described in clause (i) is not obtained 
     from each such holder within a reasonable period of time, to 
     close such account.

     Any agreement entered into under this subsection may be 
     terminated by the Secretary upon a determination by the 
     Secretary that the foreign financial institution is out of 
     compliance with such agreement.
       ``(2) Financial institutions deemed to meet requirements in 
     certain cases.--A foreign financial institution may be 
     treated by the Secretary as meeting the requirements of this 
     subsection if--
       ``(A) such institution--
       ``(i) complies with such procedures as the Secretary may 
     prescribe to ensure that such institution does not maintain 
     United States accounts, and
       ``(ii) meets such other requirements as the Secretary may 
     prescribe with respect to accounts of other foreign financial 
     institutions maintained by such institution, or
       ``(B) such institution is a member of a class of 
     institutions with respect to which the Secretary has 
     determined that the application of this section is not 
     necessary to carry out the purposes of this section.
       ``(3) Election to be withheld upon rather than withhold on 
     payments to recalcitrant account holders and nonparticipating 
     foreign financial institutions.--In the case of a foreign 
     financial institution which meets the requirements of this 
     subsection and such other requirements as the Secretary may 
     provide and which elects the application of this paragraph--
       ``(A) the requirements of paragraph (1)(D) shall not apply,
       ``(B) the withholding tax imposed under subsection (a) 
     shall apply with respect to any withholdable payment to such 
     institution to the extent such payment is allocable to 
     accounts held by recalcitrant account holders or foreign 
     financial institutions which do not meet the requirements of 
     this subsection, and
       ``(C) the agreement described in paragraph (1) shall--
       ``(i) require such institution to notify the withholding 
     agent with respect to each such payment of the institution's 
     election under this paragraph and such other information as 
     may be necessary for the withholding agent to determine the 
     appropriate amount to deduct and withhold from such payment, 
     and
       ``(ii) include a waiver of any right under any treaty of 
     the United States with respect to any amount deducted and 
     withheld pursuant to an election under this paragraph.

     To the extent provided by the Secretary, the election under 
     this paragraph may be made with respect to certain classes or 
     types of accounts of the foreign financial institution.
       ``(c) Information Required To Be Reported on United States 
     Accounts.--
       ``(1) In general.--The agreement described in subsection 
     (b) shall require the foreign financial institution to report 
     the following with respect to each United States account 
     maintained by such institution:
       ``(A) The name, address, and TIN of each account holder 
     which is a specified United States person and, in the case of 
     any account holder which is a United States owned foreign 
     entity, the name, address, and TIN of each substantial United 
     States owner of such entity.
       ``(B) The account number.
       ``(C) The account balance or value (determined at such time 
     and in such manner as the Secretary may provide).
       ``(D) Except to the extent provided by the Secretary, the 
     gross receipts and gross withdrawals or payments from the 
     account (determined for such period and in such manner as the 
     Secretary may provide).
       ``(2) Election to be subject to same reporting as united 
     states financial institutions.--In the case of a foreign 
     financial institution which elects the application of this 
     paragraph--
       ``(A) subparagraphs (C) and (D) of paragraph (1) shall not 
     apply, and
       ``(B) the agreement described in subsection (b) shall 
     require such foreign financial institution to report such 
     information with respect to each United States account 
     maintained by such institution as such institution would be 
     required to report under sections 6041, 6042, 6045, and 6049 
     if--
       ``(i) such institution were a United States person, and
       ``(ii) each holder of such account which is a specified 
     United States person or United States owned foreign entity 
     were a natural person and citizen of the United States.

     An election under this paragraph shall be made at such time, 
     in such manner, and subject to such conditions as the 
     Secretary may provide.
       ``(3) Separate requirements for qualified intermediaries.--
     In the case of a foreign financial institution which is 
     treated as a qualified intermediary by the Secretary for 
     purposes of section 1441 and the regulations issued 
     thereunder, the requirements of this section shall be in 
     addition to any reporting or other requirements imposed by 
     the Secretary for purposes of such treatment.
       ``(d) Definitions.--For purposes of this section--
       ``(1) United states account.--
       ``(A) In general.--The term `United States account' means 
     any financial account which is held by one or more specified 
     United States persons or United States owned foreign 
     entities.
       ``(B) Exception for certain accounts held by individuals.--
     Unless the foreign financial institution elects to not have 
     this subparagraph apply, such term shall not include any 
     depository account maintained by such financial institution 
     if--
       ``(i) each holder of such account is a natural person, and
       ``(ii) with respect to each holder of such account, the 
     aggregate value of all depository accounts held (in whole or 
     in part) by such holder and maintained by the same financial 
     institution which maintains such account does not exceed 
     $50,000.

     To the extent provided by the Secretary, financial 
     institutions which are members of the same expanded 
     affiliated group shall be treated for purposes of clause (ii) 
     as a single financial institution.
       ``(C) Elimination of duplicative reporting requirements.--
     Such term shall not include any financial account in a 
     foreign financial institution if--
       ``(i) such account is held by another financial institution 
     which meets the requirements of subsection (b), or
       ``(ii) the holder of such account is otherwise subject to 
     information reporting requirements which the Secretary 
     determines would make the reporting required by this section 
     with respect to United States accounts duplicative.
       ``(2) Financial account.--Except as otherwise provided by 
     the Secretary, the term `financial account' means, with 
     respect to any financial institution--
       ``(A) any depository account maintained by such financial 
     institution,
       ``(B) any custodial account maintained by such financial 
     institution, and
       ``(C) any equity or debt interest in such financial 
     institution (other than interests which are regularly traded 
     on an established securities market).

     Any equity or debt interest which constitutes a financial 
     account under subparagraph (C) with respect to any financial 
     institution shall be treated for purposes of this section as 
     maintained by such financial institution.
       ``(3) United states owned foreign entity.--The term `United 
     States owned foreign entity' means any foreign entity which 
     has one or more substantial United States owners.
       ``(4) Foreign financial institution.--The term `foreign 
     financial institution' means any financial institution which 
     is a foreign entity. Except as otherwise provided by the 
     Secretary, such term shall not include a financial 
     institution which is organized under the laws of any 
     possession of the United States.
       ``(5) Financial institution.--Except as otherwise provided 
     by the Secretary, the term `financial institution' means any 
     entity that--
       ``(A) accepts deposits in the ordinary course of a banking 
     or similar business,
       ``(B) as a substantial portion of its business, holds 
     financial assets for the account of others, or
       ``(C) is engaged (or holding itself out as being engaged) 
     primarily in the business of investing, reinvesting, or 
     trading in securities (as defined in section 475(c)(2) 
     without regard to the last sentence thereof), partnership 
     interests, commodities (as defined in section 475(e)(2)), or 
     any interest (including a futures or forward contract or 
     option) in such securities, partnership interests, or 
     commodities.
       ``(6) Recalcitrant account holder.--The term `recalcitrant 
     account holder' means any account holder which--
       ``(A) fails to comply with reasonable requests for the 
     information referred to in subsection (b)(1)(A) or (c)(1)(A), 
     or
       ``(B) fails to provide a waiver described in subsection 
     (b)(1)(F) upon request.
       ``(7) Passthru payment.--The term `passthru payment' means 
     any withholdable payment or other payment to the extent 
     attributable to a withholdable payment.
       ``(e) Affiliated Groups.--
       ``(1) In general.--The requirements of subsections (b) and 
     (c)(1) shall apply--
       ``(A) with respect to United States accounts maintained by 
     the foreign financial institution, and
       ``(B) except as otherwise provided by the Secretary, with 
     respect to United States accounts maintained by each other 
     foreign financial institution (other than any foreign 
     financial institution which meets the requirements of 
     subsection (b)) which is a member of the same expanded 
     affiliated group as such foreign financial institution.
       ``(2) Expanded affiliated group.--For purposes of this 
     section, the term `expanded affiliated group' means an 
     affiliated group as defined in section 1504(a), determined--
       ``(A) by substituting `more than 50 percent' for `at least 
     80 percent' each place it appears, and
       ``(B) without regard to paragraphs (2) and (3) of section 
     1504(b).

     A partnership or any other entity (other than a corporation) 
     shall be treated as a member of an expanded affiliated group 
     if such entity is controlled (within the meaning of section 
     954(d)(3)) by members of such group (including any entity 
     treated as a member of such group by reason of this 
     sentence).
       ``(f) Exception for Certain Payments.--Subsection (a) shall 
     not apply to any payment to the extent that the beneficial 
     owner of such payment is--

[[Page 2598]]

       ``(1) any foreign government, any political subdivision of 
     a foreign government, or any wholly owned agency or 
     instrumentality of any one or more of the foregoing,
       ``(2) any international organization or any wholly owned 
     agency or instrumentality thereof,
       ``(3) any foreign central bank of issue, or
       ``(4) any other class of persons identified by the 
     Secretary for purposes of this subsection as posing a low 
     risk of tax evasion.

     ``SEC. 1472. WITHHOLDABLE PAYMENTS TO OTHER FOREIGN ENTITIES.

       ``(a) In General.--In the case of any withholdable payment 
     to a non-financial foreign entity, if--
       ``(1) the beneficial owner of such payment is such entity 
     or any other non-financial foreign entity, and
       ``(2) the requirements of subsection (b) are not met with 
     respect to such beneficial owner,

     then the withholding agent with respect to such payment shall 
     deduct and withhold from such payment a tax equal to 30 
     percent of the amount of such payment.
       ``(b) Requirements for Waiver of Withholding.--The 
     requirements of this subsection are met with respect to the 
     beneficial owner of a payment if--
       ``(1) such beneficial owner or the payee provides the 
     withholding agent with either--
       ``(A) a certification that such beneficial owner does not 
     have any substantial United States owners, or
       ``(B) the name, address, and TIN of each substantial United 
     States owner of such beneficial owner,
       ``(2) the withholding agent does not know, or have reason 
     to know, that any information provided under paragraph (1) is 
     incorrect, and
       ``(3) the withholding agent reports the information 
     provided under paragraph (1)(B) to the Secretary in such 
     manner as the Secretary may provide.
       ``(c) Exceptions.--Subsection (a) shall not apply to--
       ``(1) except as otherwise provided by the Secretary, any 
     payment beneficially owned by--
       ``(A) any corporation the stock of which is regularly 
     traded on an established securities market,
       ``(B) any corporation which is a member of the same 
     expanded affiliated group (as defined in section 1471(e)(2) 
     without regard to the last sentence thereof) as a corporation 
     described in subparagraph (A),
       ``(C) any entity which is organized under the laws of a 
     possession of the United States and which is wholly owned by 
     one or more bona fide residents (as defined in section 
     937(a)) of such possession,
       ``(D) any foreign government, any political subdivision of 
     a foreign government, or any wholly owned agency or 
     instrumentality of any one or more of the foregoing,
       ``(E) any international organization or any wholly owned 
     agency or instrumentality thereof,
       ``(F) any foreign central bank of issue, or
       ``(G) any other class of persons identified by the 
     Secretary for purposes of this subsection, and
       ``(2) any class of payments identified by the Secretary for 
     purposes of this subsection as posing a low risk of tax 
     evasion.
       ``(d) Non-Financial Foreign Entity.--For purposes of this 
     section, the term `non-financial foreign entity' means any 
     foreign entity which is not a financial institution (as 
     defined in section 1471(d)(5)).

     ``SEC. 1473. DEFINITIONS.

       ``For purposes of this chapter--
       ``(1) Withholdable payment.--Except as otherwise provided 
     by the Secretary--
       ``(A) In general.--The term `withholdable payment' means--
       ``(i) any payment of interest (including any original issue 
     discount), dividends, rents, salaries, wages, premiums, 
     annuities, compensations, remunerations, emoluments, and 
     other fixed or determinable annual or periodical gains, 
     profits, and income, if such payment is from sources within 
     the United States, and
       ``(ii) any gross proceeds from the sale or other 
     disposition of any property of a type which can produce 
     interest or dividends from sources within the United States.
       ``(B) Exception for income connected with united states 
     business.--Such term shall not include any item of income 
     which is taken into account under section 871(b)(1) or 
     882(a)(1) for the taxable year.
       ``(C) Special rule for sourcing interest paid by foreign 
     branches of domestic financial institutions.--Subparagraph 
     (B) of section 861(a)(1) shall not apply.
       ``(2) Substantial united states owner.--
       ``(A) In general.--The term `substantial United States 
     owner' means--
       ``(i) with respect to any corporation, any specified United 
     States person which owns, directly or indirectly, more than 
     10 percent of the stock of such corporation (by vote or 
     value),
       ``(ii) with respect to any partnership, any specified 
     United States person which owns, directly or indirectly, more 
     than 10 percent of the profits interests or capital interests 
     in such partnership, and
       ``(iii) in the case of a trust--

       ``(I) any specified United States person treated as an 
     owner of any portion of such trust under subpart E of part I 
     of subchapter J of chapter 1, and
       ``(II) to the extent provided by the Secretary in 
     regulations or other guidance, any specified United States 
     person which holds, directly or indirectly, more than 10 
     percent of the beneficial interests of such trust.

       ``(B) Special rule for investment vehicles.--In the case of 
     any financial institution described in section 1471(d)(5)(C), 
     clauses (i), (ii), and (iii) of subparagraph (A) shall be 
     applied by substituting `0 percent' for `10 percent'.
       ``(3) Specified united states person.--Except as otherwise 
     provided by the Secretary, the term `specified United States 
     person' means any United States person other than--
       ``(A) any corporation the stock of which is regularly 
     traded on an established securities market,
       ``(B) any corporation which is a member of the same 
     expanded affiliated group (as defined in section 1471(e)(2) 
     without regard to the last sentence thereof) as a corporation 
     the stock of which is regularly traded on an established 
     securities market,
       ``(C) any organization exempt from taxation under section 
     501(a) or an individual retirement plan,
       ``(D) the United States or any wholly owned agency or 
     instrumentality thereof,
       ``(E) any State, the District of Columbia, any possession 
     of the United States, any political subdivision of any of the 
     foregoing, or any wholly owned agency or instrumentality of 
     any one or more of the foregoing,
       ``(F) any bank (as defined in section 581),
       ``(G) any real estate investment trust (as defined in 
     section 856),
       ``(H) any regulated investment company (as defined in 
     section 851),
       ``(I) any common trust fund (as defined in section 584(a)), 
     and
       ``(J) any trust which--
       ``(i) is exempt from tax under section 664(c), or
       ``(ii) is described in section 4947(a)(1).
       ``(4) Withholding agent.--The term `withholding agent' 
     means all persons, in whatever capacity acting, having the 
     control, receipt, custody, disposal, or payment of any 
     withholdable payment.
       ``(5) Foreign entity.--The term `foreign entity' means any 
     entity which is not a United States person.

     ``SEC. 1474. SPECIAL RULES.

       ``(a) Liability for Withheld Tax.--Every person required to 
     deduct and withhold any tax under this chapter is hereby made 
     liable for such tax and is hereby indemnified against the 
     claims and demands of any person for the amount of any 
     payments made in accordance with the provisions of this 
     chapter.
       ``(b) Credits and Refunds.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     determination of whether any tax deducted and withheld under 
     this chapter results in an overpayment by the beneficial 
     owner of the payment to which such tax is attributable shall 
     be made as if such tax had been deducted and withheld under 
     subchapter A of chapter 3.
       ``(2) Special rule where foreign financial institution is 
     beneficial owner of payment.--
       ``(A) In general.--In the case of any tax properly deducted 
     and withheld under section 1471 from a specified financial 
     institution payment--
       ``(i) if the foreign financial institution referred to in 
     subparagraph (B) with respect to such payment is entitled to 
     a reduced rate of tax with respect to such payment by reason 
     of any treaty obligation of the United States--

       ``(I) the amount of any credit or refund with respect to 
     such tax shall not exceed the amount of credit or refund 
     attributable to such reduction in rate, and
       ``(II) no interest shall be allowed or paid with respect to 
     such credit or refund, and

       ``(ii) if such foreign financial institution is not so 
     entitled, no credit or refund shall be allowed or paid with 
     respect to such tax.
       ``(B) Specified financial institution payment.--The term 
     `specified financial institution payment' means any payment 
     if the beneficial owner of such payment is a foreign 
     financial institution.
       ``(3) Requirement to identify substantial united states 
     owners.--No credit or refund shall be allowed or paid with 
     respect to any tax properly deducted and withheld under this 
     chapter unless the beneficial owner of the payment provides 
     the Secretary such information as the Secretary may require 
     to determine whether such beneficial owner is a United States 
     owned foreign entity (as defined in section 1471(d)(3)) and 
     the identity of any substantial United States owners of such 
     entity.
       ``(c) Confidentiality of Information.--
       ``(1) In general.--For purposes of this chapter, rules 
     similar to the rules of section 3406(f) shall apply.
       ``(2) Disclosure of list of participating foreign financial 
     institutions permitted.--The identity of a foreign financial 
     institution which meets the requirements of section 1471(b) 
     shall not be treated as return information for purposes of 
     section 6103.
       ``(d) Coordination With Other Withholding Provisions.--The 
     Secretary shall provide for the coordination of this chapter 
     with other withholding provisions under this title, including 
     providing for the proper crediting of amounts deducted and 
     withheld under this chapter against amounts required to be 
     deducted and withheld under such other provisions.
       ``(e) Treatment of Withholding Under Agreements.--Any tax 
     deducted and withheld pursuant to an agreement described in 
     section 1471(b) shall be treated for purposes of this title 
     as a tax deducted and withheld by a withholding agent under 
     section 1471(a).

[[Page 2599]]

       ``(f) Regulations.--The Secretary shall prescribe such 
     regulations or other guidance as may be necessary or 
     appropriate to carry out the purposes of, and prevent the 
     avoidance of, this chapter.''.
       (b) Special Rule for Interest on Overpayments.--Subsection 
     (e) of section 6611 is amended by adding at the end the 
     following new paragraph:
       ``(4) Certain withholding taxes.--In the case of any 
     overpayment resulting from tax deducted and withheld under 
     chapter 3 or 4, paragraphs (1), (2), and (3) shall be applied 
     by substituting `180 days' for `45 days' each place it 
     appears.''.
       (c) Conforming Amendments.--
       (1) Section 6414 is amended by inserting ``or 4'' after 
     ``chapter 3''.
       (2) Paragraph (1) of section 6501(b) is amended by 
     inserting ``4,'' after ``chapter 3,''.
       (3) Paragraph (2) of section 6501(b) is amended--
       (A) by inserting ``4,'' after ``chapter 3,'' in the text 
     thereof, and
       (B) by striking ``taxes and tax imposed by chapter 3'' in 
     the heading thereof and inserting ``and withholding taxes''.
       (4) Paragraph (3) of section 6513(b) is amended--
       (A) by inserting ``or 4'' after ``chapter 3'', and
       (B) by inserting ``or 1474(b)'' after ``section 1462''.
       (5) Subsection (c) of section 6513 is amended by inserting 
     ``4,'' after ``chapter 3,''.
       (6) Paragraph (1) of section 6724(d) is amended by 
     inserting ``under chapter 4 or'' after ``filed with the 
     Secretary'' in the last sentence thereof.
       (7) Paragraph (2) of section 6724(d) is amended by 
     inserting ``or 4'' after ``chapter 3''.
       (8) The table of chapters of the Internal Revenue Code of 
     1986 is amended by adding at the end the following new item:

``Chapter 4. Taxes To Enforce Reporting on Certain Foreign Accounts.''.

       (d) Effective Date.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to payments made after December 31, 2012.
       (2) Grandfathered treatment of outstanding obligations.--
     The amendments made by this section shall not require any 
     amount to be deducted or withheld from any payment under any 
     obligation outstanding on the date which is 2 years after the 
     date of the enactment of this Act or from the gross proceeds 
     from any disposition of such an obligation.
       (3) Interest on overpayments.--The amendment made by 
     subsection (b) shall apply--
       (A) in the case of such amendment's application to 
     paragraph (1) of section 6611(e) of the Internal Revenue Code 
     of 1986, to returns the due date for which (determined 
     without regard to extensions) is after the date of the 
     enactment of this Act,
       (B) in the case of such amendment's application to 
     paragraph (2) of such section, to claims for credit or refund 
     of any overpayment filed after the date of the enactment of 
     this Act (regardless of the taxable period to which such 
     refund relates), and
       (C) in the case of such amendment's application to 
     paragraph (3) of such section, to refunds paid after the date 
     of the enactment of this Act (regardless of the taxable 
     period to which such refund relates).

     SEC. 502. REPEAL OF CERTAIN FOREIGN EXCEPTIONS TO REGISTERED 
                   BOND REQUIREMENTS.

       (a) Repeal of Exception to Denial of Deduction for Interest 
     on Non-Registered Bonds.--
       (1) In general.--Paragraph (2) of section 163(f) is amended 
     by striking subparagraph (B) and by redesignating 
     subparagraph (C) as subparagraph (B).
       (2) Conforming amendments.--
       (A) Paragraph (2) of section 149(a) is amended by inserting 
     ``or'' at the end of subparagraph (A), by striking ``, or'' 
     at the end of subparagraph (B) and inserting a period, and by 
     striking subparagraph (C).
       (B) Subparagraph (A) of section 163(f)(2) is amended by 
     inserting ``or'' at the end of clause (ii), by striking ``, 
     or'' at the end of clause (iii) and inserting a period, and 
     by striking clause (iv).
       (C) Subparagraph (B) of section 163(f)(2), as redesignated 
     by paragraph (1), is amended--
       (i) by striking ``, and subparagraph (B),'' in the matter 
     preceding clause (i), and
       (ii) by amending clause (i) to read as follows:
       ``(i) such obligation is of a type which the Secretary has 
     determined by regulations to be used frequently in avoiding 
     Federal taxes, and''.
       (D) Sections 165(j)(2)(A) and 1287(b)(1) are each amended 
     by striking ``except that clause (iv) of subparagraph (A), 
     and subparagraph (B), of such section shall not apply''.
       (b) Repeal of Treatment as Portfolio Debt.--
       (1) In general.--Paragraph (2) of section 871(h) is amended 
     to read as follows:
       ``(2) Portfolio interest.--For purposes of this subsection, 
     the term `portfolio interest' means any interest (including 
     original issue discount) which--
       ``(A) would be subject to tax under subsection (a) but for 
     this subsection, and
       ``(B) is paid on an obligation--
       ``(i) which is in registered form, and
       ``(ii) with respect to which--

       ``(I) the United States person who would otherwise be 
     required to deduct and withhold tax from such interest under 
     section 1441(a) receives a statement (which meets the 
     requirements of paragraph (5)) that the beneficial owner of 
     the obligation is not a United States person, or
       ``(II) the Secretary has determined that such a statement 
     is not required in order to carry out the purposes of this 
     subsection.''.

       (2) Conforming amendments.--
       (A) Section 871(h)(3)(A) is amended by striking 
     ``subparagraph (A) or (B) of''.
       (B) Paragraph (2) of section 881(c) is amended to read as 
     follows:
       ``(2) Portfolio interest.--For purposes of this subsection, 
     the term `portfolio interest' means any interest (including 
     original issue discount) which--
       ``(A) would be subject to tax under subsection (a) but for 
     this subsection, and
       ``(B) is paid on an obligation--
       ``(i) which is in registered form, and
       ``(ii) with respect to which--

       ``(I) the person who would otherwise be required to deduct 
     and withhold tax from such interest under section 1442(a) 
     receives a statement which meets the requirements of section 
     871(h)(5) that the beneficial owner of the obligation is not 
     a United States person, or
       ``(II) the Secretary has determined that such a statement 
     is not required in order to carry out the purposes of this 
     subsection.''.

       (c) Dematerialized Book Entry Systems Treated as Registered 
     Form.--Paragraph (3) of section 163(f) is amended by 
     inserting ``, except that a dematerialized book entry system 
     or other book entry system specified by the Secretary shall 
     be treated as a book entry system described in such section'' 
     before the period at the end.
       (d) Repeal of Exception to Requirement That Treasury 
     Obligations Be in Registered Form.--
       (1) In general.--Subsection (g) of section 3121 of title 
     31, United States Code, is amended by striking paragraph (2) 
     and by redesignating paragraphs (3) and (4) as paragraphs (2) 
     and (3), respectively.
       (2) Conforming amendments.--Paragraph (1) of section 
     3121(g) of such title is amended--
       (A) by adding ``or'' at the end of subparagraph (A),
       (B) by striking ``; or'' at the end of subparagraph (B) and 
     inserting a period, and
       (C) by striking subparagraph (C).
       (e) Preservation of Exception for Excise Tax Purposes.--
     Paragraph (1) of section 4701(b) is amended to read as 
     follows:
       ``(1) Registration-required obligation.--
       ``(A) In general.--The term `registration-required 
     obligation' has the same meaning as when used in section 
     163(f), except that such term shall not include any 
     obligation which--
       ``(i) is required to be registered under section 149(a), or
       ``(ii) is described in subparagraph (B).
       ``(B) Certain obligations not included.--An obligation is 
     described in this subparagraph if--
       ``(i) there are arrangements reasonably designed to ensure 
     that such obligation will be sold (or resold in connection 
     with the original issue) only to a person who is not a United 
     States person,
       ``(ii) interest on such obligation is payable only outside 
     the United States and its possessions, and
       ``(iii) on the face of such obligation there is a statement 
     that any United States person who holds such obligation will 
     be subject to limitations under the United States income tax 
     laws.''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after the date which is 2 
     years after the date of the enactment of this Act.

        PART II--UNDER REPORTING WITH RESPECT TO FOREIGN ASSETS

     SEC. 511. DISCLOSURE OF INFORMATION WITH RESPECT TO FOREIGN 
                   FINANCIAL ASSETS.

       (a) In General.--Subpart A of part III of subchapter A of 
     chapter 61 is amended by inserting after section 6038C the 
     following new section:

     ``SEC. 6038D. INFORMATION WITH RESPECT TO FOREIGN FINANCIAL 
                   ASSETS.

       ``(a) In General.--Any individual who, during any taxable 
     year, holds any interest in a specified foreign financial 
     asset shall attach to such person's return of tax imposed by 
     subtitle A for such taxable year the information described in 
     subsection (c) with respect to each such asset if the 
     aggregate value of all such assets exceeds $50,000 (or such 
     higher dollar amount as the Secretary may prescribe).
       ``(b) Specified Foreign Financial Assets.--For purposes of 
     this section, the term `specified foreign financial asset' 
     means--
       ``(1) any financial account (as defined in section 
     1471(d)(2)) maintained by a foreign financial institution (as 
     defined in section 1471(d)(4)), and
       ``(2) any of the following assets which are not held in an 
     account maintained by a financial institution (as defined in 
     section 1471(d)(5))--
       ``(A) any stock or security issued by a person other than a 
     United States person,
       ``(B) any financial instrument or contract held for 
     investment that has an issuer or counterparty which is other 
     than a United States person, and
       ``(C) any interest in a foreign entity (as defined in 
     section 1473).
       ``(c) Required Information.--The information described in 
     this subsection with respect to any asset is:
       ``(1) In the case of any account, the name and address of 
     the financial institution in which such account is maintained 
     and the number of such account.

[[Page 2600]]

       ``(2) In the case of any stock or security, the name and 
     address of the issuer and such information as is necessary to 
     identify the class or issue of which such stock or security 
     is a part.
       ``(3) In the case of any other instrument, contract, or 
     interest--
       ``(A) such information as is necessary to identify such 
     instrument, contract, or interest, and
       ``(B) the names and addresses of all issuers and 
     counterparties with respect to such instrument, contract, or 
     interest.
       ``(4) The maximum value of the asset during the taxable 
     year.
       ``(d) Penalty for Failure To Disclose.--
       ``(1) In general.--If any individual fails to furnish the 
     information described in subsection (c) with respect to any 
     taxable year at the time and in the manner described in 
     subsection (a), such person shall pay a penalty of $10,000.
       ``(2) Increase in penalty where failure continues after 
     notification.--If any failure described in paragraph (1) 
     continues for more than 90 days after the day on which the 
     Secretary mails notice of such failure to the individual, 
     such individual shall pay a penalty (in addition to the 
     penalties under paragraph (1)) of $10,000 for each 30-day 
     period (or fraction thereof) during which such failure 
     continues after the expiration of such 90-day period. The 
     penalty imposed under this paragraph with respect to any 
     failure shall not exceed $50,000.
       ``(e) Presumption That Value of Specified Foreign Financial 
     Assets Exceeds Dollar Threshold.--If--
       ``(1) the Secretary determines that an individual has an 
     interest in one or more specified foreign financial assets, 
     and
       ``(2) such individual does not provide sufficient 
     information to demonstrate the aggregate value of such 
     assets,

     then the aggregate value of such assets shall be treated as 
     being in excess of $50,000 (or such higher dollar amount as 
     the Secretary prescribes for purposes of subsection (a)) for 
     purposes of assessing the penalties imposed under this 
     section.
       ``(f) Application to Certain Entities.--To the extent 
     provided by the Secretary in regulations or other guidance, 
     the provisions of this section shall apply to any domestic 
     entity which is formed or availed of for purposes of holding, 
     directly or indirectly, specified foreign financial assets, 
     in the same manner as if such entity were an individual.
       ``(g) Reasonable Cause Exception.--No penalty shall be 
     imposed by this section on any failure which is shown to be 
     due to reasonable cause and not due to willful neglect. The 
     fact that a foreign jurisdiction would impose a civil or 
     criminal penalty on the taxpayer (or any other person) for 
     disclosing the required information is not reasonable cause.
       ``(h) Regulations.--The Secretary shall prescribe such 
     regulations or other guidance as may be necessary or 
     appropriate to carry out the purposes of this section, 
     including regulations or other guidance which provide 
     appropriate exceptions from the application of this section 
     in the case of--
       ``(1) classes of assets identified by the Secretary, 
     including any assets with respect to which the Secretary 
     determines that disclosure under this section would be 
     duplicative of other disclosures,
       ``(2) nonresident aliens, and
       ``(3) bona fide residents of any possession of the United 
     States.''.
       (b) Clerical Amendment.--The table of sections for subpart 
     A of part III of subchapter A of chapter 61 is amended by 
     inserting after the item relating to section 6038C the 
     following new item:

``Sec. 6038D. Information with respect to foreign financial assets.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 512. PENALTIES FOR UNDERPAYMENTS ATTRIBUTABLE TO 
                   UNDISCLOSED FOREIGN FINANCIAL ASSETS.

       (a) In General.--Section 6662, as amended by this Act, is 
     amended--
       (1) in subsection (b), by inserting after paragraph (6) the 
     following new paragraph:
       ``(7) Any undisclosed foreign financial asset 
     understatement.'', and
       (2) by adding at the end the following new subsection:
       ``(j) Undisclosed Foreign Financial Asset Understatement.--
       ``(1) In general.--For purposes of this section, the term 
     `undisclosed foreign financial asset understatement' means, 
     for any taxable year, the portion of the understatement for 
     such taxable year which is attributable to any transaction 
     involving an undisclosed foreign financial asset.
       ``(2) Undisclosed foreign financial asset.--For purposes of 
     this subsection, the term `undisclosed foreign financial 
     asset' means, with respect to any taxable year, any asset 
     with respect to which information was required to be provided 
     under section 6038, 6038B, 6038D, 6046A, or 6048 for such 
     taxable year but was not provided by the taxpayer as required 
     under the provisions of those sections.
       ``(3) Increase in penalty for undisclosed foreign financial 
     asset understatements.--In the case of any portion of an 
     underpayment which is attributable to any undisclosed foreign 
     financial asset understatement, subsection (a) shall be 
     applied with respect to such portion by substituting `40 
     percent' for `20 percent'.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 513. MODIFICATION OF STATUTE OF LIMITATIONS FOR 
                   SIGNIFICANT OMISSION OF INCOME IN CONNECTION 
                   WITH FOREIGN ASSETS.

       (a) Extension of Statute of Limitations.--
       (1) In general.--Paragraph (1) of section 6501(e) is 
     amended by redesignating subparagraphs (A) and (B) as 
     subparagraphs (B) and (C), respectively, and by inserting 
     before subparagraph (B) (as so redesignated) the following 
     new subparagraph:
       ``(A) General rule.--If the taxpayer omits from gross 
     income an amount properly includible therein and--
       ``(i) such amount is in excess of 25 percent of the amount 
     of gross income stated in the return, or
       ``(ii) such amount--

       ``(I) is attributable to one or more assets with respect to 
     which information is required to be reported under section 
     6038D (or would be so required if such section were applied 
     without regard to the dollar threshold specified in 
     subsection (a) thereof and without regard to any exceptions 
     provided pursuant to subsection (h)(1) thereof), and
       ``(II) is in excess of $5,000,

     the tax may be assessed, or a proceeding in court for 
     collection of such tax may be begun without assessment, at 
     any time within 6 years after the return was filed.''.
       (2) Conforming amendments.--
       (A) Subparagraph (B) of section 6501(e)(1), as redesignated 
     by paragraph (1), is amended by striking all that precedes 
     clause (i) and inserting the following:
       ``(B) Determination of gross income.--For purposes of 
     subparagraph (A)--''.
       (B) Paragraph (2) of section 6229(c) is amended by striking 
     ``which is in excess of 25 percent of the amount of gross 
     income stated in its return'' and inserting ``and such amount 
     is described in clause (i) or (ii) of section 
     6501(e)(1)(A)''.
       (b) Additional Reports Subject to Extended Period.--
     Paragraph (8) of section 6501(c) is amended--
       (1) by inserting ``pursuant to an election under section 
     1295(b) or'' before ``under section 6038'',
       (2) by inserting ``1298(f),'' before ``6038'', and
       (3) by inserting ``6038D,'' after ``6038B,''.
       (c) Clarifications Related to Failure To Disclose Foreign 
     Transfers.--Paragraph (8) of section 6501(c) is amended by 
     striking ``event'' and inserting ``tax return, event,''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to--
       (1) returns filed after the date of the enactment of this 
     Act; and
       (2) returns filed on or before such date if the period 
     specified in section 6501 of the Internal Revenue Code of 
     1986 (determined without regard to such amendments) for 
     assessment of such taxes has not expired as of such date.

                 PART III--OTHER DISCLOSURE PROVISIONS

     SEC. 521. REPORTING OF ACTIVITIES WITH RESPECT TO PASSIVE 
                   FOREIGN INVESTMENT COMPANIES.

       (a) In General.--Section 1298 is amended by redesignating 
     subsection (f) as subsection (g) and by inserting after 
     subsection (e) the following new subsection:
       ``(f) Reporting Requirement.--Except as otherwise provided 
     by the Secretary, each United States person who is a 
     shareholder of a passive foreign investment company shall 
     file an annual report containing such information as the 
     Secretary may require.''.
       (b) Conforming Amendment.--Subsection (e) of section 1291 
     is amended by striking ``, (d), and (f)'' and inserting ``and 
     (d)''.
       (c) Effective Date.--The amendments made by this section 
     take effect on the date of the enactment of this Act.

     SEC. 522. SECRETARY PERMITTED TO REQUIRE FINANCIAL 
                   INSTITUTIONS TO FILE CERTAIN RETURNS RELATED TO 
                   WITHHOLDING ON FOREIGN TRANSFERS 
                   ELECTRONICALLY.

       (a) In General.--Subsection (e) of section 6011 is amended 
     by adding at the end the following new paragraph:
       ``(4) Special rule for returns filed by financial 
     institutions with respect to withholding on foreign 
     transfers.--The numerical limitation under paragraph (2)(A) 
     shall not apply to any return filed by a financial 
     institution (as defined in section 1471(d)(5)) with respect 
     to tax for which such institution is made liable under 
     section 1461 or 1474(a).''.
       (b) Conforming Amendment.--Subsection (c) of section 6724 
     is amended by inserting ``or with respect to a return 
     described in section 6011(e)(4)'' before the end period.
       (c) Effective Date.--The amendment made by this section 
     shall apply to returns the due date for which (determined 
     without regard to extensions) is after the date of the 
     enactment of this Act.

             PART IV--PROVISIONS RELATED TO FOREIGN TRUSTS

     SEC. 531. CLARIFICATIONS WITH RESPECT TO FOREIGN TRUSTS WHICH 
                   ARE TREATED AS HAVING A UNITED STATES 
                   BENEFICIARY.

       (a) In General.--Paragraph (1) of section 679(c) is amended 
     by adding at the end the following:

     ``For purposes of subparagraph (A), an amount shall be 
     treated as accumulated for the benefit of a United States 
     person even if the United States person's interest in the 
     trust is contingent on a future event.''.

[[Page 2601]]

       (b) Clarification Regarding Discretion To Identify 
     Beneficiaries.--Subsection (c) of section 679 is amended by 
     adding at the end the following new paragraph:
       ``(4) Special rule in case of discretion to identify 
     beneficiaries.--For purposes of paragraph (1)(A), if any 
     person has the discretion (by authority given in the trust 
     agreement, by power of appointment, or otherwise) of making a 
     distribution from the trust to, or for the benefit of, any 
     person, such trust shall be treated as having a beneficiary 
     who is a United States person unless--
       ``(A) the terms of the trust specifically identify the 
     class of persons to whom such distributions may be made, and
       ``(B) none of those persons are United States persons 
     during the taxable year.''.
       (c) Clarification That Certain Agreements and 
     Understandings Are Terms of the Trust.--Subsection (c) of 
     section 679, as amended by subsection (b), is amended by 
     adding at the end the following new paragraph:
       ``(5) Certain agreements and understandings treated as 
     terms of the trust.--For purposes of paragraph (1)(A), if any 
     United States person who directly or indirectly transfers 
     property to the trust is directly or indirectly involved in 
     any agreement or understanding (whether written, oral, or 
     otherwise) that may result in the income or corpus of the 
     trust being paid or accumulated to or for the benefit of a 
     United States person, such agreement or understanding shall 
     be treated as a term of the trust.''.

     SEC. 532. PRESUMPTION THAT FOREIGN TRUST HAS UNITED STATES 
                   BENEFICIARY.

       (a) In General.--Section 679 is amended by redesignating 
     subsection (d) as subsection (e) and inserting after 
     subsection (c) the following new subsection:
       ``(d) Presumption That Foreign Trust Has United States 
     Beneficiary.--If a United States person directly or 
     indirectly transfers property to a foreign trust (other than 
     a trust described in section 6048(a)(3)(B)(ii)), the 
     Secretary may treat such trust as having a United States 
     beneficiary for purposes of applying this section to such 
     transfer unless such person--
       ``(1) submits such information to the Secretary as the 
     Secretary may require with respect to such transfer, and
       ``(2) demonstrates to the satisfaction of the Secretary 
     that such trust satisfies the requirements of subparagraphs 
     (A) and (B) of subsection (c)(1).''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to transfers of property after the date of the 
     enactment of this Act.

     SEC. 533. UNCOMPENSATED USE OF TRUST PROPERTY.

       (a) In General.--Paragraph (1) of section 643(i) is 
     amended--
       (1) by striking ``directly or indirectly to'' and inserting 
     ``(or permits the use of any other trust property) directly 
     or indirectly to or by'', and
       (2) by inserting ``(or the fair market value of the use of 
     such property)'' after ``the amount of such loan''.
       (b) Exception for Compensated Use.--Paragraph (2) of 
     section 643(i) is amended by adding at the end the following 
     new subparagraph:
       ``(E) Exception for compensated use of property.--In the 
     case of the use of any trust property other than a loan of 
     cash or marketable securities, paragraph (1) shall not apply 
     to the extent that the trust is paid the fair market value of 
     such use within a reasonable period of time of such use.''.
       (c) Application to Grantor Trusts.--Subsection (c) of 
     section 679, as amended by this Act, is amended by adding at 
     the end the following new paragraph:
       ``(6) Uncompensated use of trust property treated as a 
     payment.--For purposes of this subsection, a loan of cash or 
     marketable securities (or the use of any other trust 
     property) directly or indirectly to or by any United States 
     person (whether or not a beneficiary under the terms of the 
     trust) shall be treated as paid or accumulated for the 
     benefit of a United States person. The preceding sentence 
     shall not apply to the extent that the United States person 
     repays the loan at a market rate of interest (or pays the 
     fair market value of the use of such property) within a 
     reasonable period of time.''.
       (d) Conforming Amendments.--Paragraph (3) of section 643(i) 
     is amended--
       (1) by inserting ``(or use of property)'' after ``If any 
     loan'',
       (2) by inserting ``or the return of such property'' before 
     ``shall be disregarded'', and
       (3) by striking ``regarding loan principal'' in the heading 
     thereof.
       (e) Effective Date.--The amendments made by this section 
     shall apply to loans made, and uses of property, after the 
     date of the enactment of this Act.

     SEC. 534. REPORTING REQUIREMENT OF UNITED STATES OWNERS OF 
                   FOREIGN TRUSTS.

       (a) In General.--Paragraph (1) of section 6048(b) is 
     amended by inserting ``shall submit such information as the 
     Secretary may prescribe with respect to such trust for such 
     year and'' before ``shall be responsible to ensure''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 535. MINIMUM PENALTY WITH RESPECT TO FAILURE TO REPORT 
                   ON CERTAIN FOREIGN TRUSTS.

       (a) In General.--Subsection (a) of section 6677 is 
     amended--
       (1) by inserting ``the greater of $10,000 or'' before ``35 
     percent'', and
       (2) by striking the last sentence and inserting the 
     following: ``At such time as the gross reportable amount with 
     respect to any failure can be determined by the Secretary, 
     any subsequent penalty imposed under this subsection with 
     respect to such failure shall be reduced as necessary to 
     assure that the aggregate amount of such penalties do not 
     exceed the gross reportable amount (and to the extent that 
     such aggregate amount already exceeds the gross reportable 
     amount the Secretary shall refund such excess to the 
     taxpayer).''
       (b) Effective Date.--The amendments made by this section 
     shall apply to notices and returns required to be filed after 
     December 31, 2009.

PART V--SUBSTITUTE DIVIDENDS AND DIVIDEND EQUIVALENT PAYMENTS RECEIVED 
                BY FOREIGN PERSONS TREATED AS DIVIDENDS

     SEC. 541. SUBSTITUTE DIVIDENDS AND DIVIDEND EQUIVALENT 
                   PAYMENTS RECEIVED BY FOREIGN PERSONS TREATED AS 
                   DIVIDENDS.

       (a) In General.--Section 871 is amended by redesignating 
     subsection (l) as subsection (m) and by inserting after 
     subsection (k) the following new subsection:
       ``(l) Treatment of Dividend Equivalent Payments.--
       ``(1) In general.--For purposes of subsection (a), sections 
     881 and 4948(a), and chapters 3 and 4, a dividend equivalent 
     shall be treated as a dividend from sources within the United 
     States.
       ``(2) Dividend equivalent.--For purposes of this 
     subsection, the term `dividend equivalent' means--
       ``(A) any substitute dividend made pursuant to a securities 
     lending or a sale-repurchase transaction that (directly or 
     indirectly) is contingent upon, or determined by reference 
     to, the payment of a dividend from sources within the United 
     States,
       ``(B) any payment made pursuant to a specified notional 
     principal contract that (directly or indirectly) is 
     contingent upon, or determined by reference to, the payment 
     of a dividend from sources within the United States, and
       ``(C) any other payment determined by the Secretary to be 
     substantially similar to a payment described in subparagraph 
     (A) or (B).
       ``(3) Specified notional principal contract.--For purposes 
     of this subsection, the term `specified notional principal 
     contract' means--
       ``(A) any notional principal contract if--
       ``(i) in connection with entering into such contract, any 
     long party to the contract transfers the underlying security 
     to any short party to the contract,
       ``(ii) in connection with the termination of such contract, 
     any short party to the contract transfers the underlying 
     security to any long party to the contract,
       ``(iii) the underlying security is not readily tradable on 
     an established securities market,
       ``(iv) in connection with entering into such contract, the 
     underlying security is posted as collateral by any short 
     party to the contract with any long party to the contract, or
       ``(v) such contract is identified by the Secretary as a 
     specified notional principal contract,
       ``(B) in the case of payments made after the date which is 
     2 years after the date of the enactment of this subsection, 
     any notional principal contract unless the Secretary 
     determines that such contract is of a type which does not 
     have the potential for tax avoidance.
       ``(4) Definitions.--For purposes of paragraph (3)(A)--
       ``(A) Long party.--The term `long party' means, with 
     respect to any underlying security of any notional principal 
     contract, any party to the contract which is entitled to 
     receive any payment pursuant to such contract which is 
     contingent upon, or determined by reference to, the payment 
     of a dividend from sources within the United States with 
     respect to such underlying security.
       ``(B) Short party.--The term `short party' means, with 
     respect to any underlying security of any notional principal 
     contract, any party to the contract which is not a long party 
     with respect to such underlying security.
       ``(C) Underlying security.--The term `underlying security' 
     means, with respect to any notional principal contract, the 
     security with respect to which the dividend referred to in 
     paragraph (2)(B) is paid. For purposes of this paragraph, any 
     index or fixed basket of securities shall be treated as a 
     single security.
       ``(5) Payments determined on gross basis.--For purposes of 
     this subsection, the term `payment' includes any gross amount 
     which is used in computing any net amount which is 
     transferred to or from the taxpayer.
       ``(6) Prevention of over-withholding.--In the case of any 
     chain of dividend equivalents one or more of which is subject 
     to tax under subsection (a) or section 881, the Secretary may 
     reduce such tax, but only to the extent that the taxpayer can 
     establish that such tax has been paid with respect to another 
     dividend equivalent in such chain, or is not otherwise due, 
     or as the Secretary determines is appropriate to address the 
     role of financial intermediaries in such chain. For purposes 
     of this paragraph, a dividend shall be treated as a dividend 
     equivalent.
       ``(7) Coordination with chapters 3 and 4.--For purposes of 
     chapters 3 and 4, each person that is a party to any contract 
     or other arrangement that provides for the payment of a 
     dividend equivalent shall be treated as having control of 
     such payment.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to payments made on or after the date that is 180 
     days after the date of the enactment of this Act.

[[Page 2602]]


  Subtitle B--Delay in Application of Worldwide Allocation of Interest

     SEC. 551. DELAY IN APPLICATION OF WORLDWIDE ALLOCATION OF 
                   INTEREST.

       (a) In General.--Paragraphs (5)(D) and (6) of section 
     864(f) are each amended by striking ``December 31, 2017'' and 
     inserting ``December 31, 2019''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.


                    Motion Offered by Mr. Etheridge

  Mr. ETHERIDGE. I have a motion at the desk.
  The SPEAKER pro tempore. The Clerk will designate the motion.
  The text of the motion is as follows:

       Mr. Etheridge moves that the House concur in the Senate 
     amendment to the House amendment to the Senate amendment with 
     an amendment.

  The text of the amendment is as follows:

       Concur in the Senate amendment (hereinafter referred to as 
     the ``pending Senate amendment'') to the House amendment to 
     the Senate amendment to H.R. 2847 with the following 
     amendment:
       (1) In section 101 of the matter proposed to be inserted by 
     the pending Senate amendment--
       (A) In section 3111(d) of the Internal Revenue Code of 
     1986, as proposed to be added by subsection (a) of such 
     section 101, add at the end the following new paragraph:
       ``(5) Special rule for first calendar quarter of 2010.--
       ``(A) Nonapplication of exemption during first quarter.--
     Paragraph (1) shall not apply with respect to wages paid 
     during the first calendar quarter of 2010.
       ``(B) Crediting of first quarter exemption during second 
     quarter.--The amount by which the tax imposed under 
     subsection (a) would (but for subparagraph (A)) have been 
     reduced with respect to wages paid by a qualified employer 
     during the first calendar quarter of 2010 shall be treated as 
     a payment against the tax imposed under subsection (a) with 
     respect to the qualified employer for the second calendar 
     quarter of 2010 which is made on the date that such tax is 
     due.''.
       (B) Strike subsection (d) of such section 101 and insert 
     the following new subsections:
       (d) Application to Railroad Retirement Taxes.--
       (1) In general.--Section 3221 of the Internal Revenue Code 
     of 1986 is amended by redesignating subsection (c) as 
     subsection (d) and by inserting after subsection (b) the 
     following new subsection:
       ``(c) Special Rate for Certain Individuals Hired in 2010.--
       ``(1) In general.--In the case of compensation paid by a 
     qualified employer during the period beginning on the day 
     after the date of the enactment of this subsection and ending 
     on December 31, 2010, with respect to having a qualified 
     individual in the employer's employ for services rendered to 
     such qualified employer, the applicable percentage under 
     subsection (a) shall be equal to the rate of tax in effect 
     under section 3111(b) for the calendar year.
       ``(2) Qualified employer.--The term `qualified employer' 
     means any employer other than the United States, any State, 
     or any political subdivision thereof, or any instrumentality 
     of the foregoing.
       ``(3) Qualified individual.--For purposes of this 
     subsection, the term `qualified individual' means any 
     individual who--
       ``(A) begins employment with a qualified employer after 
     February 3, 2010, and before January 1, 2011,
       ``(B) certifies by signed affidavit, under penalties of 
     perjury, that such individual has not been employed for more 
     than 40 hours during the 60-day period ending on the date 
     such individual begins such employment,
       ``(C) is not employed by the qualified employer to replace 
     another employee of such employer unless such other employee 
     separated from employment voluntarily or for cause, and
       ``(D) is not an individual described in section 51(i)(1) 
     (applied by substituting `qualified employer' for `taxpayer' 
     each place it appears).
       ``(4) Election.--A qualified employer may elect to have 
     this subsection not apply. Such election shall be made in 
     such manner as the Secretary may require.
       ``(5) Special rule for first calendar quarter of 2010.--
       ``(A) Nonapplication of exemption during first quarter.--
     Paragraph (1) shall not apply with respect to compensation 
     paid during the first calendar quarter of 2010.
       ``(B) Crediting of first quarter exemption during second 
     quarter.--The amount by which the tax imposed under 
     subsection (a) would (but for subparagraph (A)) have been 
     reduced with respect to compensation paid by a qualified 
     employer during the first calendar quarter of 2010 shall be 
     treated as a payment against the tax imposed under subsection 
     (a) with respect to the qualified employer for the second 
     calendar quarter of 2010 which is made on the date that such 
     tax is due.''.
       (2) Transfers to social security equivalent benefit 
     account.--There are hereby appropriated to the Social 
     Security Equivalent Benefit Account established under section 
     15A(a) of the Railroad Retirement Act of 1974 (45 U.S.C. 
     231n-1(a)) amounts equal to the reduction in revenues to the 
     Treasury by reason of the amendments made by paragraph (1). 
     Amounts appropriated by the preceding sentence shall be 
     transferred from the general fund at such times and in such 
     manner as to replicate to the extent possible the transfers 
     which would have occurred to such Account had such amendments 
     not been enacted.
       (e) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this subsection shall apply to wages paid 
     after the date of the enactment of this Act.
       (2) Railroad retirement taxes.--The amendments made by 
     subsection (d) shall apply to compensation paid after the 
     date of the enactment of this Act.
       (2) In section 102 of the matter proposed to be inserted by 
     the pending Senate amendment--
       (A) Strike subsection (a) of such section 102 and insert 
     the following new subsection:
       (a) In General.--In the case of any taxable year ending 
     after the date of the enactment of this Act, the current year 
     business credit determined under section 38(b) of the 
     Internal Revenue Code of 1986 for such taxable year shall be 
     increased, with respect to each retained worker with respect 
     to which subsection (b)(2) is first satisfied during such 
     taxable year, by the lesser of--
       (1) $1,000, or
       (2) 6.2 percent of the wages (as defined in section 
     3401(a)) paid by the taxpayer to such retained worker during 
     the 52 consecutive week period referred to in subsection 
     (b)(2).
       (B) In subsection (b) of such section 102, insert ``or 
     section 3221(c)(3)'' after ``section 3111(d)(3)''.
       (C) In subsection (b)(3) of such section 102, insert ``(as 
     defined in section 3401(a))'' after ``wages'' the first place 
     it appears therein.
       (D) At the end of such section 102, add the following new 
     subsection:
       (d) Treatment of Possessions.--
       (1) Payments to possessions.--
       (A) Mirror code possessions.--The Secretary of the Treasury 
     shall pay to each possession of the United States with a 
     mirror code tax system amounts equal to the loss to that 
     possession by reason of the application of this section 
     (other than this subsection). Such amounts shall be 
     determined by the Secretary of the Treasury based on 
     information provided by the government of the respective 
     possession.
       (B) Other possessions.--The Secretary of the Treasury shall 
     pay to each possession of the United States which does not 
     have a mirror code tax system amounts estimated by the 
     Secretary of the Treasury as being equal to the aggregate 
     benefits that would have been provided to residents of such 
     possession by reason of the application of this section 
     (other than this subsection) if a mirror code tax system had 
     been in effect in such possession. The preceding sentence 
     shall not apply with respect to any possession of the United 
     States unless such possession has a plan, which has been 
     approved by the Secretary of the Treasury, under which such 
     possession will promptly distribute such payments to the 
     residents of such possession.
       (2) Coordination with credit allowed against united states 
     income taxes.--No increase in the credit determined under 
     section 38(b) of the Internal Revenue Code of 1986 against 
     United States income taxes for any taxable year determined 
     under subsection (a) shall be taken into account with respect 
     to any person--
       (A) to whom a credit is allowed against taxes imposed by 
     the possession by reason of this section for such taxable 
     year, or
       (B) who is eligible for a payment under a plan described in 
     paragraph (1)(B) with respect to such taxable year.
       (3) Definitions and special rules.--
       (A) Possession of the united states.--For purposes of this 
     subsection, the term ``possession of the United States'' 
     includes the Commonwealth of Puerto Rico and the Commonwealth 
     of the Northern Mariana Islands.
       (B) Mirror code tax system.--For purposes of this 
     subsection, the term ``mirror code tax system'' means, with 
     respect to any possession of the United States, the income 
     tax system of such possession if the income tax liability of 
     the residents of such possession under such system is 
     determined by reference to the income tax laws of the United 
     States as if such possession were the United States.
       (C) Treatment of payments.--For purposes of section 
     1324(b)(2) of title 31, United States Code, rules similar to 
     the rules of section 1001(b)(3)(C) of the American Recovery 
     and Reinvestment Tax Act of 2009 shall apply.
       (3) In section 301 of the matter proposed to be inserted by 
     the pending Senate amendment--
       (A) In section 6431(f)(1) of the Internal Revenue Code of 
     1986, as proposed to be added by subsection (a) of such 
     section 301, strike subparagraph (C) and insert the following 
     new subparagraph:
       ``(C) the amount of the payment determined under subsection 
     (b) with respect to any interest payment due under such bond 
     shall be equal to the lesser of--
       ``(i) the amount of interest payable under such bond on 
     such date, or
       ``(ii) the amount of interest which would have been payable 
     under such bond on such date if such interest were determined 
     at the applicable credit rate determined under section 
     54A(b)(3),''.
       (B) In section 6431(f) of the Internal Revenue Code of 
     1986, as proposed to be added by subsection (a) of such 
     section 301, strike paragraph (2) and insert the following 
     new paragraphs:
       ``(2) Special rule for new clean renewable energy bonds and 
     qualified energy conservation bonds.--In the case of any 
     specified

[[Page 2603]]

     tax credit bond described in clause (i) or (ii) of paragraph 
     (3)(A), the amount determined under paragraph (1)(C)(ii) 
     shall be 70 percent of the amount so determined without 
     regard to this paragraph and sections 54C(b) and 54D(b).
       ``(3) Specified tax credit bond.--For purposes of this 
     subsection, the term ``specified tax credit bond'' means any 
     qualified tax credit bond (as defined in section 54A(d)) if--
       ``(A) such bond is--
       ``(i) a new clean renewable energy bond (as defined in 
     section 54C),
       ``(ii) a qualified energy conservation bond (as defined in 
     section 54D),
       ``(iii) a qualified zone academy bond (as defined in 
     section 54E), or
       ``(iv) a qualified school construction bond (as defined in 
     section 54F), and
       ``(B) the issuer of such bond makes an irrevocable election 
     to have this subsection apply.''.
       (4) At the end title IV of the matter proposed to be 
     inserted by the pending Senate amendment, add the following:

             Subtitle E--Disadvantaged Business Enterprises

     SEC. 451. DISADVANTAGED BUSINESS ENTERPRISES.

       (a) Definitions.--In this section, the following 
     definitions apply:
       (1) Small business concern.-- The term ``small business 
     concern'' has the meaning that term has under section 3 of 
     the Small Business Act (15 U.S.C. 632), except that the term 
     shall not include any concern or group of concerns controlled 
     by the same socially and economically disadvantaged 
     individual or individuals which has average annual gross 
     receipts over the preceding 3 fiscal years in excess of 
     $22,410,000, as adjusted annually by the Secretary of 
     Transportation for inflation.
       (2) Socially and economically disadvantaged individuals.--
     The term ``socially and economically disadvantaged 
     individuals'' has the meaning that term has under section 
     8(d) of the Small Business Act (15 U.S.C. 637(d)) and 
     relevant subcontracting regulations issued pursuant to that 
     Act, except that women shall be presumed to be socially and 
     economically disadvantaged individuals for purposes of this 
     section.
       (b) General Rule.--Except to the extent that the Secretary 
     of Transportation determines otherwise, not less than 10 
     percent of the amounts made available for any program under 
     titles I, III, and V of SAFETEA-LU (Public Law 109-59), 
     subtitles A and C of this title, and section 403 of title 23, 
     United States Code, shall be expended through small business 
     concerns owned and controlled by socially and economically 
     disadvantaged individuals.
       (c) Annual Listing of Disadvantaged Business Enterprises.--
     Each State shall annually--
       (1) survey and compile a list of the small business 
     concerns referred to in subsection (a) and the location of 
     the concerns in the State; and
       (2) notify the Secretary of Transportation, in writing, of 
     the percentage of the concerns that are controlled by women, 
     by socially and economically disadvantaged individuals (other 
     than women), and by individuals who are women and are 
     otherwise socially and economically disadvantaged 
     individuals.
       (d) Uniform Certification.--The Secretary of Transportation 
     shall establish minimum uniform criteria for State 
     governments to use in certifying whether a concern qualifies 
     for purposes of this section. The minimum uniform criteria 
     shall include, but not be limited to, on-site visits, 
     personal interviews, licenses, analysis of stock ownership, 
     listing of equipment, analysis of bonding capacity, listing 
     of work completed, resume of principal owners, financial 
     capacity, and type of work preferred.
       (e) Compliance With Court Orders.--Nothing in this section 
     limits the eligibility of an entity or person to receive 
     funds made available under titles I, III, and V of SAFETEA-LU 
     (Public Law 109-59), subtitles A and C of this title, and 
     section 403 of title 23, United States Code, if the entity or 
     person is prevented, in whole or in part, from complying with 
     subsection (b) because a Federal court issues a final order 
     in which the court finds that the requirement of subsection 
     (b), or the program established under subsection (b), is 
     unconstitutional.
       (5) In section 551(a) of the matter proposed to be inserted 
     by the pending Senate amendment, strike ``December 31, 2019'' 
     and insert ``December 31, 2020''.
       (6) At the end of title V of the matter proposed to be 
     inserted by the pending Senate amendment, add the following 
     new subtitle:

                    Subtitle C--Budgetary Provisions

     SEC. 561. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

       Notwithstanding section 6655 of the Internal Revenue Code 
     of 1986, in the case of a corporation with assets of not less 
     than $1,000,000,000 (determined as of the end of the 
     preceding taxable year)--
       (1) the percentage under paragraph (1) of section 202(b) of 
     the Corporate Estimated Tax Shift Act of 2009 in effect on 
     the date of the enactment of this Act is increased by 23 
     percentage points,
       (2) the amount of any required installment of corporate 
     estimated tax which is otherwise due in July, August, or 
     September of 2015 shall be 121.5 percent of such amount,
       (3) the amount of any required installment of corporate 
     estimated tax which is otherwise due in July, August, or 
     September of 2019 shall be 106.5 percent of such amount, and
       (4) the amount of the next required installment after an 
     installment referred to in paragraph (2) or (3) shall be 
     appropriately reduced to reflect the amount of the increase 
     by reason of such paragraph.

     SEC. 562. PAYGO COMPLIANCE.

       The budgetary effects of this Act, for purposes 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 Chairman 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 amendments between the Houses.

  The SPEAKER pro tempore. Pursuant to House Resolution 1137, the 
motion shall be debatable for 1 hour, equally divided and controlled by 
the chair and the ranking minority member of the Committee on Ways and 
Means or their designees.
  The gentleman from North Carolina (Mr. Etheridge) and the gentleman 
from California (Mr. Nunes) each will control 30 minutes.
  The Chair recognizes the gentleman from North Carolina.
  Mr. ETHERIDGE. Madam Speaker, I yield to the gentlewoman from New 
York (Mrs. Maloney) for the purpose of making a unanimous consent 
request.
  Mrs. MALONEY. Madam Speaker, I rise in strong support of H.R. 2847, 
include my statement for the Record, and also submit to the Record 
excerpts from recent joint economic hearings underscoring the need for 
targeted, timely action to boost employment.
  Madam Speaker, at recent hearings of the Joint Economic Committee, 
which I chair, economists, forecasters, and business leaders have laid 
out the need for targeted, immediate action to spark job creation.
  H.R. 2847--Hiring Incentives to Restore Employment Act--delivers 
timely incentives for businesses to hire, including a temporary tax 
break for businesses that hire workers who have been unemployed for at 
least 60 days.
  CBO Director Douglas Elmendorf recently told the JEC, by bringing 
down the cost of adding new employees, employer tax credits like this 
one will spur new hiring and strengthen our economy.
  In January, I sent a survey to the CEOs of Fortune 100 companies and 
leading small businesses seeking their ideas on job creation.
  The ideas I got back were varied. But there was broad agreement that 
Congress needs to act now.
  I urge my colleagues to support the HIRE Act to create jobs and put 
Americans back to work.
  Finally, I would like to submit for the Record excerpts from recent 
JEC hearings underscoring the need for targeted, timely action to boost 
employment.


  Manpower Chairman and CEO Jeffrey Joerres, Joint Economic Committee 
                       Hearing, February 26, 2010

       Manpower has been in the business of jobs and job training 
     for over 60 years. We've seen the economic ups and downs. 
     It's clear that this recession is by far the most severe in 
     this downturn. It's been a privilege [to hear] some of the 
     thoughts that we get and feel from on the ground, and those 
     actions that I've presented this committee. We consider that 
     partnerships between government and industry is critical for 
     this to move very quickly.


Congressional Budget Office Director Douglas Elmendorf, Joint Economic 
                  Committee Hearing, February 23, 2010

       What we have--what we have said in our initial report, and 
     in our letter to you, and you can see in the--in those bars, 
     is that in our judgment policies that cut employers' payroll 
     taxes are more cost effective in terms of stimulating 
     employment over the next couple of years, than many of the 
     other policies that we've considered.
       And our judgment--what firms will do with a cut of that 
     sort is partly to take advantage of their lower cost by 
     cutting the prices of their goods, and thus trying to 
     stimulate demand. And it's the--really the shortfall in 
     demand that is the crux of the recession, or the crux of the 
     problem in hiring. Additionally these tax credits provide an 
     incentive to use more labor by lowering the cost of labor in 
     particular.


    Dr. Richard Berner, Co-Head of Global Economics and Chief U.S. 
 Economist, Morgan Stanley, Joint Economic Committee Hearing, February 
                                26, 2010

       A refundable payroll tax credit, perhaps for firms that 
     increase their payroll, would be among the most effective 
     short-term remedies. CBO estimates that a well-designed 
     credit could boost employment by about 9 years of full-time 
     equivalent employment per million dollars of budgetary cost.

[[Page 2604]]




                             General Leave

  Mr. ETHERIDGE. Madam Speaker, I ask that all Members may have 5 
legislative days in which to revise and extend their remarks and insert 
extraneous materials into the Record.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from North Carolina?
  There was no objection.
  Mr. ETHERIDGE. Madam Speaker, I am pleased to rise in support of H.R. 
2847, the Hiring Incentives to Restore Employment Act. The HIRE Act is 
about our three most important priorities in this Congress: jobs, jobs, 
and jobs. The HIRE Act builds on legislation that the Senate passed 
last week, including direct hiring tax incentives for business, support 
for Recovery Act bond incentives that put local dollars to work 
creating jobs all across this country, and transportation funding that 
improves our communities, builds infrastructure, and supports local 
businesses. All told, more than 1 million jobs will be created by this 
legislation.
  This bill really is help for small businesses on Main Street and 
millions of Americans who are ready to see the benefits of a growing 
economy. Across this great country, our economy is showing signs of 
recovery. But consumers need more confidence, and employers need 
incentives to hire workers. Today, we give business direct incentives 
to hire new workers. I am pleased that the HIRE Act accomplishes this 
in a responsible manner.
  Not only does it fully pay for all of the important investments in 
job creation, but it actually contributes to reduce our deficit by 
nearly $1 billion. Let me repeat that again, reduce the deficit by $1 
billion. The bill is a good step to rebuild our job market, but we 
still have a ways to go. I expect that this will just be a downpayment 
on our continuing work to create jobs and restore our economy.
  This bill includes, as you have already heard, about $77.15 billion 
of investment in surface transportation projects. It also reauthorizes 
Federal highway public transit initiatives and highway safety funding 
that is needed all across America. When extensions were blocked last 
week in the Senate, transportation projects across this country were 
held up and almost 2,000 employees were furloughed. Today, we are going 
to take action not only to make sure that doesn't happen again, but 
that we create jobs by investing in local priorities across this 
country, not only transportation projects that need to be moving in our 
communities, building on infrastructure and providing jobs for America, 
but also the HIRE Act that creates tax credits for local businesses.
  Representative Steve Kagen and myself introduced a bill back in 
January for tax credits to hire new employees. This bill builds on 
that. It is a little different than what we had, but it makes a 
difference. Despite some economic growth in recent months, the 
unemployment rate around the country remains high. Too many Americans 
are unemployed. In my State, it is above the national average, almost 
11.2 percent. Just this past week, I visited an employment office where 
people were saying all we need is a hand up, not a handout; give us an 
opportunity to go to work.
  In addition to that, we are providing funds for making sure that our 
qualified school construction bonds in the Recovery Act that we passed 
last year will work. This bill really is about jobs. I can say to you 
when we are talking about jobs, we are talking about education. I 
happen to believe education is the one thing that levels the playing 
field for everyone. Today we are going to have the opportunity to put 
our stamp on and vote for a piece of legislation that will provide good 
places for teachers to teach and children to learn.
  Madam Speaker, I reserve the balance of my time.
  Mr. NUNES. Madam Speaker, I yield myself such time as I may consume.
  Madam Speaker, if at first you don't succeed, try, try again. That 
seems to be the Democrats' creed and motto.
  There wouldn't be any need for today's bill if the failed trillion-
dollar stimulus package last year actually worked. A year ago the 
Democrats promised the American people their so-called stimulus would 
keep unemployment at 8 percent, but a year later we are near 10 
percent.
  Put simply, you cannot create jobs by dumping a trillion dollars into 
Federal agencies. The administration claims that $1.5 billion in 
stimulus moneys saved or created 1,664 jobs in California's San Joaquin 
Valley where I live. Even if one charitably assumes the accuracy of 
these numbers, the Federal Government has spent a whopping $900,000 to 
save or create one job in the San Joaquin Valley. Despite spending 
$900,000 per job, there are still communities in the valley that suffer 
from 20 to 40 percent unemployment. In fact, in the wake of the 
stimulus, we saw 3 million additional Americans lose their jobs rather 
than the 3.7 million jobs that are now being promised by the Obama 
administration. Sadly, a record 16 million Americans are now unemployed 
because the stimulus promises were empty and unaffordable.

                              {time}  1400

  Is it any wonder why the American people continue to ask, Where are 
the jobs?
  It appears that the stimulus was not very stimulating outside of 
Washington. So here we are back again with yet another multibillion-
dollar plan slapped together by the Democrats that will probably, once 
again, fail.
  Madam Speaker, the Soviet Union experience, sadly, taught us that 
just because you're going to grow 1 billion bushels of potatoes does 
not mean that there will be potatoes on the shelves. Similarly, just 
because the Democrats have chosen to message this as a ``jobs'' bill 
does not mean that it will actually create a job.
  The centerpiece of the Democrats' new bill is a payroll tax 
exemption, a hiring credit for employers to bring on new workers. While 
I give the Democrats credit for acknowledging that tax cuts are 
preferable to spending increases, the sad reality is that this is a 
political charade and it won't work. How do we know? Because the same 
idea didn't work when Jimmy Carter tried it in the late 1970s.
  Numerous studies by noted economists from all across the political 
spectrum have confirmed that these temporary hiring incentives will 
have little, if any, positive effect on jobs. It is beyond ridiculous 
to claim that you can have a meaningful impact upon a $14 trillion 
economy by spending $13 billion on gimmick tax cuts. Let's think about 
it: If you're an employer, are you really going to hire someone for a 
permanent position because you get a modest, temporary tax incentive?
  We could have improved this bill had the Ways and Means Committee 
actually held a hearing and a markup, but once again we see significant 
tax legislation taken directly to the floor without a committee 
hearing, without a committee markup, and without an opportunity to even 
offer amendments.
  I understand that there was a change in the chairmanship on the Ways 
and Means Committee yesterday, but, in fact, this bill on the floor 
today proves that it's a political sham. It is far from serious to 
enact sound policy to improve our economy when you can't even decide 
who the chairman of the Ways and Means Committee is going to be.
  You don't have to read Adam Smith to know that markets cannot thrive 
with uncertainty. What employers really need from Washington is the 
assurance that the Democrats' massive Big Government tax-and-spend 
agenda isn't going to drive them out of business.
  Employers face uncertainty about the Democrats' massive takeover of 
the health care system, about the new $1 trillion cap-and-trade energy 
tax. They face uncertainty with environmental regulations like those 
that have driven 84 saw mills from California since 1989, and they face 
uncertainty about the largest tax increase in American history that 
will be enacted this year.
  Madam Speaker, employers don't need more Federal spending to create 
good private sector jobs; they already know how to create good jobs if 
Washington would just get out of the way.
  Madam Speaker, I reserve the balance of my time.

[[Page 2605]]


  Mr. ETHERIDGE. Madam Speaker, I would remind the gentleman that I was 
a small businessman in the 1970s when this tax credit was in before. 
Not only did we use it and create jobs; we had tremendous growth in 
this country.
  I talked to two chambers of commerce in the last month. They are 
tickled to death that somebody is willing to help them instead of doing 
the very thing the Senate did last week and hold everything up. It's 
time we moved on and got something done.
  I yield 3 minutes to the gentleman, Mr. Oberstar, who knows something 
about infrastructure.
  Mr. OBERSTAR. I thank the gentleman for his time and will use this 
brief moment to be very specific.
  Under the programs in the stimulus, under the jurisdiction of our 
Committee on Transportation and Infrastructure, we can account for 
1,091,005 jobs in the past year, 1 year from date of enactment. We have 
this documented in 14 consecutive monthly hearings on progress made by 
State DOTs, transit agencies, metropolitan planning organizations and 
State Revolving Loan Fund organizations, as well as the other portions 
of our stimulus for which we have documented the funding investments 
that have created jobs. These are real jobs, building trades, 
associated general contractors who are putting people to work, putting 
their equipment to work on job sites where they were shut down the 
previous year.
  With those jobs, those workers are paying $353 million in Federal 
taxes, avoiding $279 million in unemployment compensation checks 
because they're getting a payroll check instead of an unemployment 
compensation check. We have 25,000 direct, on-project, full-time 
equivalent jobs in the Clean Water Revolving Loan Fund program, and 
paved 24,000 lane miles of highway and restored or replaced 1,200 
bridges. That highway mileage is equivalent to half of the interstate 
highway systems that took 50 years to build. This was done in a year.
  This extension of funding for the surface transportation program will 
provide $77 billion to continue SAFETEA-LU for the next 15 months for 
the 15-month period. That is this fiscal year and 3 months beyond. It 
is a $21 billion increase over the funding levels of the continuing 
resolution.
  It restores the $8.7 billion rescission that occurred September 30 
that everyone was wringing their hands about, but required by the Bush 
administration and consented to by House and Senate Republicans in the 
last meeting of the House-Senate conference on SAFETEA-LU. That money 
is restored. We said that we'd do it. It's done.
  The bill also restores $19.5 billion of interest foregone since 1998 
when we had to agree to a concession insisted upon by then-Speaker 
Gingrich and then the Clinton administration Treasury Department to 
forego interest on the trust fund. That interest is restored, 
repatriated to the trust fund and in the future will collect interest 
like all other trust funds.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. ETHERIDGE. I yield the gentleman another 30 seconds.
  Mr. OBERSTAR. But there are two issues in this bill that I was very 
concerned about. The Senate passed a bill that had a funding formula 
that was very, very discriminatory. Four States benefited with 58 
percent of the funding and 22 States got nothing. Senator Reid has 
consented in a letter he sent to me and to Speaker Pelosi to restore 
the House funding formula that we proposed in a subsequent bill that 
will pass the Senate this month to distribute those additional highway 
formula funds as we proposed in a formula distribution.
  The SPEAKER pro tempore. The time of the gentleman has again expired.
  Mr. ETHERIDGE. Madam Speaker, I yield another 15 seconds to the 
gentleman.
  Mr. OBERSTAR. The letter to Senator Reid from Senator Boxer, the 
chair of the Senate Public Works Committee, and Senator Murray on the 
Appropriations Committee, that letter will be available at this desk to 
show that we will restore the funding formula the way it is intended in 
SAFETEA-LU.
  Mr. NUNES. Madam Speaker, I yield 2 minutes to the gentleman from 
California, my good friend (Mr. Lewis).
  Mr. LEWIS of California. Madam Speaker, I rise to speak on the 
highway provisions of H.R. 2847. I think it's important that my 
colleagues understand that the bill before us isn't a clean extension 
of SAFETEA-LU highway and transit programs, but includes new policies 
that would continue the program on the current road to ruin.
  I support a strong surface transportation bill; I worked with Mr. 
Oberstar for years in connection with that. I know our constituents 
depend upon this program to keep our roads and transit systems open and 
safe and to help keep economic investments coming to our communities. 
But we also know that the highway trust fund is badly broken; it has 
been broken for some time. The trust fund has been in a nosedive for 
years due to overspending, but nothing was ever done about that.
  Mr. ETHERIDGE. Madam Speaker, I yield 2 minutes to the gentlewoman 
from Nevada (Ms. Berkley).
  Ms. BERKLEY. Madam Speaker, I rise in support of this jobs bill.
  Nevada is experiencing unprecedented economic challenges and an 
unemployment rate of well over 13 percent. It is essential that this 
Congress pursue policies and programs that will spur long-term economic 
growth and create the jobs that the people of Las Vegas and across the 
United States so desperately need. This legislation is a positive step 
in that direction.
  Incentives such as the payroll tax holiday, a tax credit for 
retaining workers, and the extension of enhanced expensing for small 
businesses will all help create conditions for increased hiring and 
retention of new employees.
  In addition, the extension of funding for highways and surface 
transportation projects will provide employment both today and in the 
future by continuing the infrastructure investments that are critical 
to long-term economic growth.
  And, finally, the direct payment option for certain tax credit bond 
programs will enable the Clark County School District, which I 
represent, to increase school construction and continue to fund 
essential projects.
  Nevada, and the Nation, needs the jobs and other support provided in 
this bill. I urge my colleagues to vote ``yes,'' a resounding ``yes'' 
on this piece of legislation.
  Mr. NUNES. Madam Speaker, at this time I would like to yield 2 
minutes to the gentleman from Texas (Mr. Sam Johnson).
  Mr. SAM JOHNSON of Texas. I thank the ranking member for allowing me 
to speak.
  On behalf of the American taxpayer, I am deeply disappointed that the 
Democrat majority is not allowing me to offer a commonsense amendment 
to protect the American taxpayer.
  The amendment was simple: It would require businesses seeking to use 
a hiring tax incentive in the bill before us to check the legal status 
of potential new hires through the E-Verify program--you have seen that 
in the papers lately, it hasn't been used properly--a voluntary 
employment verification system. While not perfect by any means, E-
Verify is certainly far better than the current paper-based 
verification method.
  If the majority insists on moving forward with this flawed bill that 
in the end I believe will do little to create new jobs, we must ensure 
that this hiring tax break isn't used to hire those here illegally. The 
American taxpayer and the unemployed American worker deserve nothing 
less. This is the right thing to do.
  Now more than ever in these tough economic times we need to ensure 
that the American worker, and not illegals, is our first priority.
  Mr. ETHERIDGE. Madam Speaker, I yield 2 minutes to the gentleman from 
Oregon (Mr. Blumenauer).
  Mr. BLUMENAUER. Madam Speaker, I appreciate the courtesy of my 
friend, the gentleman from North Carolina, in permitting me to speak on 
this.
  This piece of legislation is, sadly, a product of our time with a 
breakdown

[[Page 2606]]

with our friends on the other side of the Capitol seemingly unable to 
proceed with regular order. We saw, sadly, this last week one person 
bring the transportation funding in this country to a halt, hold up 
unemployment benefits affecting literally hundreds of thousands of 
Americans in the most negative way, and that is passing for regular 
order over there. This bill is an opportunity for us to break that 
impasse.
  It is significant in three ways: first of all, there were five 
Republicans who were willing to join with the majority to be able to 
move things forward. In some sense I think we ought to try and reward 
that sense of at least breaking the tyranny of the 60-vote majority 
requirement.
  Second, the real job generator in this legislation is to be found in 
extending the transportation funding through the end of the year. Madam 
Speaker, the most effective job-generating legislation that we could 
put forward at a time of 40 percent unemployment in many metropolitan 
areas in the construction trade is to put Americans to work rebuilding 
and renewing America.
  This legislation provides $77 billion towards that objective, fully 
funding the first 6 months of this year and extending it through the 
full 15-month cycle through the end of this calendar year. This will 
give certainty to the men and women who are dealing with our 
transportation systems, roads, bridges, transit, the whole range. It 
will save hundreds of thousands of jobs. It will incite economic 
activity. And maybe, just maybe, it will be a signal that we bring 
together a larger vision of rebuilding and renewing America and putting 
our fellow citizens back to work.
  Mr. NUNES. Madam Speaker, I yield myself 15 seconds.
  I just want to clarify, I heard the other side of the aisle say that 
this bill was going to create 1 million jobs. We are going to spend $13 
billion to create 1 million jobs. The $1 trillion stimulus bill last 
year was promised to create 3.7 million jobs. At some point, I would 
like to--
  Mr. BLUMENAUER. Would the gentleman yield?
  Mr. NUNES. Yes, I would like to yield to the gentleman.
  The SPEAKER pro tempore. The time of the gentleman from California 
has expired.
  Mr. NUNES. Madam Speaker, I yield myself an additional 30 seconds.

                              {time}  1415

  Mr. BLUMENAUER. What I said, and I want to be clear if I 
misrepresented it, is that the $77 billion in transportation funding 
will protect or create hundreds of thousands of jobs. That's what I 
said.
  Mr. NUNES. Reclaiming my time, actually, Mr. Blumenauer, my good 
friend, spoke about the jobs. Earlier, I had heard another gentleman on 
the other side of the aisle speak about 1 million jobs. I'm just trying 
to figure out the math. This is about a $13 billion to $15 billion bill 
to create 1 million or hundreds of thousands of jobs. Last year we 
spent $1 trillion to create 3.7 million jobs, and we lost 3 million 
jobs.
  Mr. BLUMENAUER. Will the gentleman yield?
  Mr. NUNES. Yes, of course.
  Mr. BLUMENAUER. The bill includes $77 billion of transportation 
funding. That was my reference. I think the experts agree that it would 
be hundreds of thousands of jobs, if not 1 million, saved or created 
with that transportation funding.
  I appreciate the gentleman's courtesy.
  Mr. NUNES. Madam Speaker, I yield 2 minutes to a member of the Ways 
and Means Committee, the gentlewoman from Florida (Ms. Ginny Brown-
Waite).
  Ms. GINNY BROWN-WAITE of Florida. Madam Speaker, I want to make it 
clear from the start that there are some items in this bill, some 
provisions, that everyone in this Chamber could probably support. 
Providing tax relief to small businesses is really a good idea, but 
this very fact raises an important question:
  If the majority recognizes that lowering taxes for businesses is good 
for employment and is certainly good for the economy, then why do they 
insist on dramatically raising taxes everywhere else every single 
chance the Democrats get?
  I also think that it is worth discussing the nefarious accounting 
gimmicks in this bill. I voted for the principle of PAYGO because I 
believed in it; but no sooner did the Democrats finish patting 
themselves on the backs for passing PAYGO than they turned around and 
came up with waiving it and, in this instance, kind of Bernie Madoffing 
it, if there is such a word. I think I just created a new word, Madam 
Speaker. I don't want to get too far into the technical weeds here, but 
this bill is PAYGO-compliant only because of some accounting gimmicks. 
In the fourth quarter, move a little first quarter money into future 
years, and presto-change-o, the bill becomes PAYGO-compliant. The 
American people know we can't spend the same money twice; so let's take 
a closer look.
  The official cost estimate of the bill does not include a $20 billion 
transfer from the general fund to the highway fund, meaning we will 
have to find that money someplace else. We will have to find that 
general revenue money someplace else, probably from China. The cost 
estimate doesn't reflect $142 billion in a new spending authorization 
for transportation projects that we don't have a source of revenue to 
pay for. Maybe that's why we were only given a few hours to read the 
bill before the vote is to take place on it.
  While we're on the subject of transportation funding, I did hear Mr. 
Oberstar say that the Senate was going to fix this, but the bill before 
us is not one that is good for transportation for the various States.
  The SPEAKER pro tempore. The time of the gentlewoman has expired.
  Mr. NUNES. I yield the gentlewoman an additional 30 seconds.
  Ms. GINNY BROWN-WAITE of Florida. I thank the gentleman.
  Certainly, California and Illinois get half of the funding. That 
leaves the rest of America to ask, What's in it for us? Well, the 
answer is zero. Florida is a donor State and already pays far more in 
transportation taxes than what it gets back. Quite frankly, I cannot 
support the bill that is before us today for that reason and for 
several other reasons.
  Mr. ETHERIDGE. Madam Speaker, I yield 2 minutes to the acting 
chairman of the Ways and Means Committee, the gentleman from Michigan 
(Mr. Levin).
  Mr. LEVIN. I thank my friend for yielding.
  Madam Speaker, the theme of this bill is very clear: Back to work. I 
would think that would unite us and not divide us.
  Recently, we have seen economic growth. What we have not seen enough 
of at all is growth in jobs, and that's what this is really all about. 
There is no easy or perfect way to bring this about. It takes a number 
of steps. The tax credit in this bill is one approach. We are going to 
need additional steps.
  Another way that it relates to economic growth and jobs is through 
infrastructure. We can argue about how many jobs and about what the 
estimates are as to how many millions will be created, but it's clear. 
The Secretary of Transportation has said that he can verify $60 billion 
to $70 billion in infrastructure--roads, bridges--ready to go this 
spring and this summer. We should be united in providing the 
authorization for this to happen. It should not divide us.
  There is money also, as has been said, for school construction bonds 
and energy bonds. Also, very importantly, it relates to the expensing 
by small business, which is very much within the jurisdiction of the 
Ways and Means Committee. That also should unite us and not divide us, 
and it is critical that we expend that provision.
  So, for all of these reasons, I urge that we join together, rather 
than divide, and pass this bill.
  Mr. NUNES. Madam Speaker, I yield 3 minutes to the ranking member of 
the Transportation and Infrastructure Committee, the gentleman from 
Florida (Mr. Mica).
  Mr. MICA. Madam Speaker, with record national unemployment in my

[[Page 2607]]

State, 11.8 percent unemployment, one of the top 10 unemployment States 
in the United States, I would love to come before the Congress and say, 
``Pass this bill,'' titled the ``jobs'' bill, but I can't do that today 
for several reasons.
  First of all, let me say to those who have come before us who have 
said that just getting more money even in a short-term Transportation 
bill will get things going: I don't know the facts.
  Over 1 year ago, we passed $48 billion in stimulus money that went to 
the Department of Transportation. So far, as of March 2, only $8.8 
billion has been spent. This is not a 6-year bill we are passing, and 
that's what we should be doing to ensure that States can do long-term 
projects, not just the repaving of sidewalks and simple things that 
we've seen done. This bill does not contain the elimination of the 
redtape and the hoops that States have to go through for compliance to 
do any project. This will be our fifth extension, and it only goes to 
December 31.
  Now, I was also told that we had to pass this because it was going to 
go straight to the President for his signature. Intervening, we did 
pass a 30-day extension. So this is not going straight to the 
President. We did not have an opportunity to correct the flaws in this 
bill.
  You heard of the Senate passing--what was it?--the Nebraska deal and 
the Louisiana purchase. I'm telling you this is the four-State grab. 
California gets 30 percent of the additional money in this bill; 58 
percent of the money goes to four States; 22 States get nothing.

Senate Surface Transportation Extension Act State-by-State Allocations 
of Funding for Projects of National Significance and National Corridor 
                                Programs

($932 million over the period from Oct. 1, 2009, through Dec. 31, 2010)

       California--$278 million
       Illinois--$151 million
       Louisiana--$59 million
       Washington--$55 million
       Oregon--$40 million
       Oklahoma--$36 million
       Arkansas--$36 million
       West Virginia--$35 million
       Virginia--$29 million
       Tennessee--$27 million
       Minnesota--$25 million
       New Jersey--$25 million
       New York--$25 million
       Dist. of Col.--$19 million
       Wisconsin--$15 million
       Colorado--$13 million
       Pennsylvania--$13 million
       South Carolina--$13 million
       Connecticut--$9 million
       Alaska--$8 million
       Michigan--$5 million
       Indiana--$4 million
       New Mexico--$4 million
       Maryland--$3 million
       Iowa--$2 million
       Kentucky--$2 million
       Mississippi--$2 million
       Texas--$2 million
       Arizona--$1 million
       Alabama--$0 million
       Delaware--$0
       Florida--$0
       Georgia--$0
       Hawaii--$0
       Idaho--$0
       Kansas--$0
       Maine--$0
       Massachusetts--$0
       Missouri--$0
       Montana--$0
       Nebraska--$0
       Nevada--$0
       New Hampshire--$0
       North Carolina--$0
       North Dakota--$0
       Ohio--$0
       Rhode Island--$0
       South Dakota--$0
       Utah--$0
       Vermont--$0
       Wyoming--$0

  This chart shows each State: 22 States get nothing; 46 States are 
disadvantaged because of the four-State grab in this, and it could and 
should have been corrected. If it's going back to the United States 
Senate, then it should be corrected so everyone is treated fairly and 
equitably in the distribution of transportation funds.
  Mr. Oberstar has done his level best, and he has a written letter 
from Ms. Pelosi, the Speaker, and from Mr. Reid to correct this after 
we pass it. If this were the only flaw in the bill, maybe we could look 
away.
  You've heard from Democrats who also voted against the rule, who 
almost took this bill down, who also stated their objections to 
provisions that should have had the opportunity for at least an 
amendment by this body. So there has been no consideration of changing 
the bill and of making the appropriate fairness changes, equitable 
changes, so we would all be treated equitably.
  Mr. ETHERIDGE. Madam Speaker, I yield 1 minute to the Speaker of the 
House, the gentlewoman from California (Ms. Pelosi).
  Ms. PELOSI. I thank the gentleman for yielding, and I appreciate his 
leadership and his intensive knowledge of this legislation and how 
important it is for us to proceed.
  Madam Speaker, I will not speak long because, the sooner we finish 
debate on this bill, the sooner it goes back to the Senate, the sooner 
it goes to the White House for signature, and the sooner jobs are 
created in our country.
  I agree with much of what the distinguished ranking member on the 
committee said about wanting a 6-year bill. Our chairman, Mr. Oberstar, 
has been advocating for that, and I agree.
  I also agree that the language has to be changed, and we have the 
commitment to do that as we go forward, but that doesn't mean that 
Americans are not suffering, that they do not need jobs. We should act, 
and we should act today to bring them closer.
  I want to remind our colleagues of places and times. Just over a year 
ago, this Congress passed the American Recovery and Reinvestment Act. 
As a result of that, more than 2 million jobs were saved or created. 
Very important. All over the country, as Members go home to their 
districts, they see evidence of investments in the future: Clean energy 
jobs for the future, the education of our children, the safety of our 
neighborhoods, the creation of jobs, the stabilization of our economy, 
the stabilization of State and local budgets. As a result of that, just 
think of what has happened in this one year.
  In January 2009, the last year of the Bush administration, America 
lost 779,000 jobs. This January, we lost 20,000 jobs. We don't want to 
lose any jobs. We want to be on the upside. We want to be creating 
jobs. The point is that, following the passage of the American Recovery 
and Reinvestment Act and other initiatives taken by the Obama 
administration and this Congress, there has been a difference of over 
three-quarters of a million jobs in 1 month--779,000 in January, 2009, 
and 20,000 in January, 2010.
  In the final quarter of 2008, before President Obama took office, 
America's GDP shrank by 6.2 percent. For that quarter, the GDP was a 
negative 6.2 percent. Just 1 year later, the GDP grew in the same 
period by 5.9 percent, over a 12 percent change in the rate of growth 
of the GDP thanks to the American Recovery and Reinvestment Act and to, 
again, other actions taken by Congress.
  You know, when we were debating the Recovery bill last year at around 
this time, earlier in January and in February, the stock market was 
around 6,500-7,000. It's over 10,000 now, an increase of over 3,000 
points. Yesterday, we learned that America's manufacturing base grew 
for the seventh straight month, and it is now at its highest level in 5 
years.
  Still, we must be unrelenting in our efforts to create more jobs. Too 
many Americans are unable to find work. In some cases, we are talking 
about putting people back to work. In some cases, people haven't had 
opportunities coming out of school. They've not been able to enter the 
workforce. So it is not just about putting people back to work. It is 
about creating a broader universe of jobs to have many more Americans 
participate in the economic prosperity that we hope for our country.
  Today, we are taking another step in creating jobs and in laying the 
foundation for long-term growth and prosperity. With $15 billion in 
critical investments, this bill includes a payroll tax holiday for 
businesses that hire unemployed workers, creating some 300,000 new jobs 
with that provision alone, and an income tax credit of $1,000 for 
businesses that retain employees.

[[Page 2608]]

  There is specific support to small businesses with tax credits and 
accelerated writeoffs. There is the extension of the Highway Trust 
Fund--this is very, very important--allowing tens of billions of 
dollars in infrastructure investment.
  This is a $15 billion bill, but it triggers tens of billions of 
dollars more by eliminating a recision of last year, by restoring the 
interest to the trust fund it was deprived of and by triggering further 
contracting, tens of billions of dollars and probably 1 million jobs in 
this bill alone.

                              {time}  1430

  In December, the House passed our Jobs for Main Street Act, a broader 
measure for creating good-paying American jobs paid for by redirecting 
TARP funds from Wall Street to Main Street. Today's legislation is one 
key element of that legislation, one key element of our agenda to get 
Americans back to work and to strengthen our economy.
  Madam Speaker, I believe that every Member of Congress on both sides 
of the aisle understands the urgent need to create jobs for our 
country, and today we have an opportunity to do so.
  I know that some people have some concerns on one side of the aisle 
or the other about this provision or that provision, but the fact is 
that 1 million jobs will be created by this legislation. Vote for jobs, 
vote ``aye'' on this legislation.
  I thank Mr. Etheridge and all concerned, Mr. Oberstar, the 
distinguished chairman of the Transportation Committee, and so many 
others, for making this important legislation possible. It is 
difficult, it is challenging, and more is yet to be done, but I urge my 
colleagues on both sides of the aisle to vote for jobs. Vote ``aye'' on 
this legislation.
  Mr. NUNES. Madam Speaker, I yield myself 30 seconds.
  I would like to remind my colleagues here in this House that last 
year there was a provision offered that didn't cost $1 trillion, didn't 
cost $1 billion, didn't cost $1 million, didn't cost $1, and that was a 
provision to let water flow to my constituents in the San Joaquin 
Valley of California so people could go back to work. But, instead, 
nearly every Democrat Member from California in this Congress opposed 
that amendment. So last summer we had tens of thousands of farmers and 
farmworkers standing in food lines in the most productive ag land in 
the United States or in the world.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. NUNES. I yield myself an additional 15 seconds.
  A zero cost provision could not go into this bill, and now we have 
farmworkers eating carrots imported from China. So, all this talk about 
jobs, it is all phony. The American people have had enough of this 
nonsense.
  I yield 3 minutes to my good friend, the gentleman from Ohio (Mr. 
LaTourette).
  Mr. LaTOURETTE. Madam Speaker, I have spoken many times on this floor 
about my great admiration for the chairman of the full Transportation 
and Infrastructure Committee, Mr. Oberstar, and he knows that this bill 
isn't fair. He knows that this bill isn't fair, because he produced a 
chart last week that has 50 States, plus the District of Columbia, so 
it is 51, and 22 States get nothing under this bill and four States 
walk away with 58 percent.
  Not surprisingly, I heard the Speaker likes the bill. California gets 
30 percent of the highway funding under this bill. Any Member who is 
interested is more than free to come peruse this at their leisure.
  Now, I give Chairman Oberstar great credit, because he wasn't happy 
with this, I believe last week, and he fought with his leadership, and 
he has produced today a letter from Senator Reid saying he is going to 
fix it sometime in the future.
  Now, two things: That is the second big lie, the check is in the 
mail. The other thing is I hope the majority understands that a letter 
from Senator Reid just didn't fill us on this side of the aisle with 
warmth and fuzzy feelings. If you want to fix the problem, fix the 
problem. And the problem is not fixed.
  This is not a jobs bill. I also admire the Speaker of the House, but 
I admire her more today because she did not break into laughter when 
calling this a jobs bill. This is no jobs bill. This is a faux jobs 
bill. This is a snow jobs bill. And I look forward to the unemployment 
statistics tomorrow, because I believe that we are going to look at 
about 100,000 Americans will have lost their jobs in the last month, 
despite all these great successes.
  Continuing with my admiration for Chairman Oberstar, my favorite part 
of the speech that he gives on the stimulus package is all of those 
jobs which he created through the infrastructure spending in the 
stimulus are 8 percent of the funding. So that means, I have to figure 
out the math, Mr. Oberstar, but that means in an $800 billion bill, 
half the jobs were created by 8 percent of the funding, and that is 
thanks to you and the work that you and your colleagues do on the 
committee. So I guess the other half were created by about $750 
billion. That is a strange, strange, strange investment.
  Mr. OBERSTAR. Will the gentleman yield?
  Mr. LaTOURETTE. I would be happy to yield.
  Mr. OBERSTAR. Just briefly, if the gentleman, Madam Speaker, could 
assure us that there would be no Senate filibuster or hold on the bill, 
Senator Reid would have been happy to accept our changes. But he 
estimated he couldn't get that through the Senate, so he agreed to a 
fix in a subsequent bill. He put it in writing, and we have to accept 
his written commitment to do that.
  I thank the gentleman for yielding.
  Mr. LaTOURETTE. Oh, my pleasure, and my appreciation of you grows 
every day. But I will tell you what; if you can crack the code of the 
Senate, Republican or Democrat, then you deserve much more money than 
you are making as the chairman of the full committee, because they are 
a strange bunch. It doesn't matter who is in charge; they don't seem to 
do anything.
  Now, I want to get to the process now, because the President down at 
this health care summit down at Blair House said nobody cares about 
process.
  But I have got to tell you, I have never seen this. This is my 16th 
year in the United States Congress. When Mr. Etheridge made his motion, 
it says, ``Mr. Etheridge moves that the House concur in the Senate 
amendment to the House amendment to the Senate amendment with an 
amendment.''
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. NUNES. I yield the gentleman an additional 2 minutes.
  Mr. LaTOURETTE. I appreciate it.
  I said, boy, that is really a procedural mouthful. And you know what 
it means? It is a procedural way to screw the minority, the Republican 
Party in this House. Not only can't we amend your bill, not only did we 
get it at 9:30 this morning, we can't offer a motion to recommit. You 
know what the majority leader, Mr. Hoyer, would be saying if we pulled 
that on him when we take the majority back next year? He would be 
screaming bloody murder, and he would be right.
  Madam Speaker, as a result of that, I would like to offer an 
amendment to this bill.
  The SPEAKER pro tempore. Because the previous question is ordered, 
that would require unanimous consent, and the manager, the gentleman 
from North Carolina would have to yield for that request.
  Mr. LaTOURETTE. Then I will ask the gentleman from North Carolina to 
yield to me to offer an amendment to the bill. And so that the 
gentleman doesn't think that I am sandbagging him, let me tell you what 
it is going to be.
  I would move to amend this bill to transfer the $13 billion in this 
sham tax credit, that is not going to create one job and is really the 
dumbest idea I ever heard, to infrastructure spending.
  I would further have it in that amendment that the infrastructure 
spending, now at $14 billion, be distributed pursuant to the House 
proposal that Mr. Oberstar has proposed, which

[[Page 2609]]

means every State in the Union benefits, not just California, not just 
States that are walking away with a bunch of money.
  Will the gentleman from North Carolina yield to me for the purpose of 
offering an amendment?
  Mr. ETHERIDGE. Will the gentleman yield?
  Mr. LaTOURETTE. I yield to the gentleman from North Carolina.
  Mr. ETHERIDGE. I thank the gentleman for his willingness to help, but 
the rule does not provide for that.
  Mr. LaTOURETTE. Mr. Etheridge, we are going to give it another shot, 
because we are not going to be able to hide behind ``the rule doesn't 
offer it.'' I said that. The rule doesn't provide for an amendment. The 
rule doesn't even provide for a motion to recommit, the only tool in 
the minority's toolbox.
  Mr. Etheridge, I ask unanimous consent--well, first of all, I guess 
you need to yield to me for a unanimous consent request. Would you 
yield to me for a unanimous consent request?
  Do I have to ask him to yield to me, or do I yield to him to yield to 
me?
  The SPEAKER pro tempore. The gentleman from North Carolina would have 
to yield for any unanimous consent request.
  Mr. LaTOURETTE. Mr. Etheridge, I am asking you to yield to me so I 
can make a unanimous consent request that you can deny.
  Mr. ETHERIDGE. It is your time.
  Mr. LaTOURETTE. No, I am asking you, sir, to yield to me.
  Mr. ETHERIDGE. No. The rule does not provide for it.
  Mr. LaTOURETTE. Well, that is nonsense, first of all, because the 
Speaker has just indicated that if you would yield to me, I could make 
my unanimous consent request.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. NUNES. I would like to yield the gentleman an additional 1 
minute.
  Mr. LaTOURETTE. Well, I am going to tell you what, Mr. Etheridge. If 
you would yield to me, which apparently you can under the rules but 
don't want to because you think the rule says so, which it clearly 
doesn't, here is the deal. I want to make a unanimous consent request 
that the $13 billion in this worthless tax credit be transferred to 
infrastructure spending; further, that that additional $13 billion be 
distributed pursuant to the House plan, as opposed to the Senate plan, 
the Senate plan rewarding only four States with 58 percent of money, 22 
States getting zero.
  Now, Mr. Etheridge, I am asking you to yield to me for that purpose.
  Mr. ETHERIDGE. What was the gentleman's request?
  Mr. LaTOURETTE. I am asking you to yield to me for the aforementioned 
unanimous consent request.
  Mr. ETHERIDGE. The gentleman is doing the same thing that happened in 
the other body. We are just trying to slow down a piece of legislation 
that needs to move to get to the President's desk so it can be signed 
so we can help the American people.
  Mr. LaTOURETTE. So that is a no. Is that a no? I still have the time, 
Mr. Etheridge. Is that a no?
  Mr. ETHERIDGE. The rules do not provide for that. You would need a 
unanimous consent request to do that.
  Mr. LaTOURETTE. Do you know what that is? That is a soup sandwich 
answer, because the Speaker has just said you could do it.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. ETHERIDGE. Madam Speaker, I yield 2 minutes to the gentleman from 
Rhode Island (Mr. Langevin).
  Mr. LANGEVIN. Madam Speaker, I thank the gentleman for yielding and 
for his outstanding work on this important bill.
  I rise in strong support of H.R. 2847, the HIRE Act, which will 
strengthen our economy by limiting job loss and creating new employment 
opportunities. In addition to provisions that will spur investment in 
infrastructure and construction projects, this bill provides much-
needed assistance and attention and support for small businesses in 
America. This bill includes a payroll tax holiday for businesses that 
hire unemployed workers and tax cuts to help small businesses expand 
and hire more workers.
  Small businesses, Madam Speaker, have borne the brunt of this 
economic crisis, and their inability to access credit to keep their 
businesses operating has clearly added to the high unemployment rate 
across the Nation, especially in my home State of Rhode Island, which 
has right now the second highest unemployment rate in the country.
  So, Madam Speaker, I urge my colleagues to support this jobs measure, 
as well as working on additional legislation that helps small 
businesses and unemployed workers. Our job is to create jobs, Madam 
Speaker, and that is exactly what this piece of legislation before us 
does today.
  I thank you and urge my colleagues to support this important jobs 
bill.
  Mr. NUNES. Madam Speaker, I yield 2 minutes to the gentleman from 
Georgia (Mr. Kingston).
  Mr. KINGSTON. Madam Speaker, first of all, let me say to the 
majority, I am glad you have offset this money. I think that is a 
significant step for both parties, to have a spending bill offset. So I 
want to get that out of the way.
  Having said that, I have got to say that I am very leery of another 
government spending program to address jobs. We are here because last 
year we spent nearly--well, we did spend $800 billion on a stimulus 
program that was supposed to keep us from going to 8 percent 
unemployment. Now we are at 10 percent unemployment.
  The stimulus program before just added 31 brand new Federal programs 
and increased spending. I am ranking member of the Agriculture 
Committee, and spending in the USDA has gone up 26 percent. At some 
point we are going to figure out the Federal Government doesn't have 
the solution for everything.
  This is not our only stimulus proposal or jobs proposal. In May of 
2008, we had a $168 billion stimulus program that did not work. In 
March of 2008, the Federal Reserve said, well, we are going to shore up 
Wall Street with Bear Stearns, $29 billion. In July of 2008, the 
Democrat Congress and President Bush came in with a $200 billion 
bailout of Fannie Mae in order to shore up real estate. And not to be 
outdone, the Federal Reserve weighed back in a month later with the AIG 
bailout, $85 billion, now up to $140 billion, that was supposed to 
avert financial collapse, and yet it did not. And then in October of 
2008, we had a $700 billion TARP bill. Then in January 2009, under 
President Obama, we had a $410 billion omnibus spending bill that was 
supposed to shore up the economy.

                              {time}  1445

  Of course, that brings me back to the other stimulus program. After a 
while, we're going to figure out everything we do is like Cash for 
Clunkers. It just doesn't work. If we want to help small businesses, 
we've got to quit spending money, number one.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. NUNES. I yield the gentleman an additional 30 seconds.
  Mr. KINGSTON. I thank the gentleman.
  Number two, we need to let community banks be released from some of 
the overbearing and unnecessary regulations in which they have to 
comply, because that causes them not to be able to lend money and thus 
small businesses are tied up in a credit crunch. Number three, we've 
got to let small businesses compete. We set rules. Big Business and Big 
Government set rules so that small businesses can't compete. There are 
things we can do. There are things we can do together on a bipartisan 
basis. We need to vote this bill down so that we can get to them.
  Mr. ETHERIDGE. Madam Speaker, I yield myself 10 seconds to remind the 
gentleman that how we got here was the American people lost somewhere 
in the neighborhood of $15-plus trillion in value of their homes and 
assets over the 18 months through July of last year until we passed 
something and started to turn it around. Since then, they've gained 
about $5 trillion back in, but we've got a ways to go.
  I now yield 1 minute to the gentleman from Kentucky (Mr. Chandler).

[[Page 2610]]


  Mr. CHANDLER. I thank my friend from North Carolina. I rise today in 
support of H.R. 2847, the Hiring Incentives to Restore Employment Act, 
or the HIRE Act. This piece of legislation will help our small 
businesses heal during these tough economic times and help unemployed 
Kentuckians find good, local jobs. The HIRE Act cuts taxes for our 
small businesses and makes it possible for them to hire new employees, 
making our small companies stronger and creating jobs for out-of-work 
Kentuckians.
  Madam Speaker, the unemployment rate is around 11 percent in the 
Commonwealth of Kentucky, and we have to do all we can to create and 
save jobs throughout this Nation. Small businesses are the backbone of 
our economy and the engines of job creation. Investing in the long-term 
health of our small businesses is one of the surest ways to economic 
recovery.
  This legislation isn't just about small businesses, though. It's 
about helping that mom, that dad who was laid off in the midst of this 
recession find a good-paying, local job.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. ETHERIDGE. I yield the gentleman an additional 15 seconds.
  Mr. CHANDLER. I urge my colleagues on both sides of the aisle to vote 
in favor of this legislation today because a vote for this legislation 
is a vote for middle class families; for small, innovative start-ups; 
and the long-term economic health of central Kentucky and the Nation.
  Mr. NUNES. I yield myself 30 seconds.
  Madam Speaker, I still have yet to have someone explain to me from 
the other side of the aisle how the trillion-dollar stimulus bill 
passed last year that was supposed to create 3.7 million jobs--instead, 
we lost 3 million--and how this bill that spends $13-or-so billion--
still a lot money, but not nearly a trillion dollars--is going to 
create a million jobs, as they continue to repeat on that side of the 
aisle. I would like for someone to answer the question.
  I reserve the balance of my time.
  Mr. ETHERIDGE. I yield 2 minutes to the gentleman from Oregon (Mr. 
DeFazio).
  Mr. DeFAZIO. I can answer the gentleman's question. There's a 
different emphasis. The emphasis is on small business, which is an 
incredible economic engine in my State and in many other States across 
the country. Secondly, there is an extraordinary emphasis on 
transportation infrastructure.
  The gentleman may be unaware that in August of this year the 
Transportation Infrastructure Trust Fund is going to fall short of 
funds, delaying reimbursement to the States and stalling out needed 
projects and investment all across the country. This bill fixes that, 
and once and for all we will in the future get interest on money 
borrowed from the highway trust fund. That's what people pay gas taxes 
for. It's not supposed to be spent somewhere else. We're now going to 
reclaim that money, and we're going to spend it putting people to work 
and rebuilding the crumbling infrastructure of this country. It will 
give us a billion dollars more a month.
  I heard the gentleman from Ohio talking about 58 percent of the bill. 
Well, no. Actually, what he was concerned about was 58 percent of 1.2 
percent of the bill, which is .7 percent of the bill, which, under the 
agreement the chairman has reached with the leader of the Senate, will 
be fixed in the near future. In fact, Ohio will get an extra $38 
million because of that, and my State will get less. So I don't know 
what he's complaining about. If somebody should be down here 
complaining, it should be me.
  Mr. LaTOURETTE. Will the gentleman yield?
  Mr. DeFAZIO. I will not yield.
  But I felt it was fair to put that money into the overall formula so 
that all 50 States would benefit, because everybody, almost every 
State, is suffering high unemployment, particularly the gentleman's 
State and my State. And this agreement the chairman has will bring an 
extra $38 million to his State, a billion dollars a month more in 
infrastructure spending; and for every billion we spend in 
infrastructure, we put about 33,000 more people to work. We sure as 
heck need those jobs.
  So I stand here saying we need to pass this bill. Yeah, the Senate is 
dysfunctional. It's a mess. It would have been cleaner to do it all at 
once. But this is the best we can do, dealing with a body that is just 
ridiculous.
  Mr. NUNES. Madam Speaker, I'd like to yield myself 15 seconds.
  Madam Speaker, simple math: If you're going to spend $13 billion to 
create a million jobs, then why don't we just spend another $200 
billion and we create 16 million jobs, and everybody would have a job.
  I'd like to yield 2 minutes to my friend to clarify an earlier point, 
the gentleman from Ohio (Mr. LaTourette).
  Mr. LaTOURETTE. I promise not to try to amend the bill or anything 
else. It's just sad that the distinguished chairman of the Surface 
Transportation Committee wouldn't yield to me, but it doesn't surprise 
me. He likes this bill. Oregon gets $40 million under the bill, of the 
$1 billion, and only $11 million under Mr. Oberstar's proposal.
  Are you going to give me a 7 percent thing or are you going to say 
that's not true? I'll yield to you if you don't think it's true.
  Mr. DeFAZIO. I have signed off on the chairman's agreement, and my 
State will not get those other funds.
  Mr. LaTOURETTE. That's what I'm talking about.
  Mr. DeFAZIO. I don't know what the gentleman's complaining about. 
You'll get an extra $38 million and I'll get about $30 million less.
  Mr. LaTOURETTE. Well, here's the skinny: That depends upon Harry 
Reid's putting a letter in the mail, sending it over to the chairman 
and the Speaker, and having another bill. Now, no disrespect to your 
majority, but you haven't done such a great job in passing bills since 
you guys took over 4 years ago. So waiting for another bill to come--
and, quite frankly, trying not to be partisan about this, but this mess 
was created by George Bush and it is perpetuated by President Obama 
because his Transportation Secretary says they don't want to deal with 
the 6-year bill until March of 2011. Thirty percent of the construction 
trade in this country is out of work. Why wouldn't you do this?
  To my distinguished friend from Oregon, all I was asking was for his 
State to do better. Transfer the $13 billion from this worthless tax 
credit and put it into infrastructure. Put these guys to work. Actually 
build something. Again, going back to Mr. Oberstar's wonderful speech 
that he always gives: a million jobs with only 8 percent of that $800 
billion. Wouldn't it be great if we could give Jim Oberstar $14 billion 
to create jobs for America rather than coming up with this goofy tax 
credit that says if you hire somebody for $30,000, we're going to waive 
the payroll tax for November and December. Guess what? You can save 
$1,500 if you just give somebody a $30,000 job. It's nuts. This bill is 
wrong. That's what I was talking about.
  Mr. ETHERIDGE. I reserve the balance of my time.
  Mr. NUNES. Madam Speaker, if there are no additional speakers, I'm 
prepared to close.
  Madam Speaker, during this entire debate today, as the gentleman from 
Ohio said, this is just a sham. And to sit here and complain about the 
Senate and procedural things, I mean, we ought to do another Shamwow 
Summit at the White House. Maybe that would clarify and fix the 
problems.
  We're not Senators. We don't control the Senate. I don't understand 
the math that you guys use. No one has answered it yet. You guys spent 
a trillion dollars last year, said you were going to create 3.7 million 
jobs, but you lost 3 million jobs. Now you say you're going to spend 
$15 billion and now you're going to create a million jobs. So let's go 
over some math just so we can clarify things, because I know we're 
going to continue to hear that Republicans are obstructionists, 
Republicans have no plans. So let me just go over some math that 
perhaps folks will understand.
  The Democrats have 250-some-odd votes in this House. It only takes 
218

[[Page 2611]]

votes to pass a bill. In the U.S. Senate you still have almost a 
supermajority with 59 votes. So what is the problem? Quit calling 
Republicans obstructionists. You have the White House, you have the 
Senate, you have the House of Representatives. No more Shamwow Summits, 
Madam Speaker. Let's get back to work. Vote ``no'' on this bill. This 
is a scam.
  I yield back the balance of my time.


                Announcement by the Speaker Pro Tempore

  The SPEAKER pro tempore. Members are reminded to direct their remarks 
to the Chair.
  Mr. ETHERIDGE. Madam Speaker, today we have an opportunity to start 
the process of putting people back to work, and I would encourage my 
colleagues on both sides of the aisle to support this piece of 
legislation. The piece that some of my colleagues on the other side 
have complained about on the tax credits for small businesses will be 
used to put people to work. And I would remind them that there were 
nine Republican Senators on the other side who joined as cosponsors in 
this piece of legislation. So it was bipartisan on the Senate side.
  The HIRE Act really does four key things. Let me remind my 
colleagues, in closing: First, it will give direct tax incentives to 
businesses to hire new workers with provisions similar to the bill that 
I introduced earlier this year. It also restores full value of direct 
payment options for certain tax credit bond programs, including a 
program that has been supported in previous Congresses.
  Let me speak on that for just a minute because it goes to the heart 
of the problem we're about. If we really believe and say we're for 
children, if we really say we're for jobs, there are $22 billion worth 
of zero interest school bonds, tax exempt bonds, in this bill. And this 
bill fixes the problem so they can go directly to Treasury and get the 
credit. Those job bonds can be sold and we can put people to work 
across this country building schools and other infrastructure. That's 
in addition to the highway dollars we've just been talking about.
  Finally, Madam Speaker, it would give a small business tax incentive 
to buy new equipment and to grow. That is an important piece. If we 
truly believe we are for small businesses, today is the day we get a 
chance to put a vote on the board: Are we for them or are we against 
them? They can tell very quickly because this bill will go to the 
Senate, and then it's going to the President of the United States for 
signing.
  Finally, it would give our State and local governments greater 
certainty on funding for highway projects that we just heard about. I 
have long believed that if we invest in schools now, it will save money 
in the long term and make our economy stronger and make a difference in 
the future. I served for 8 years as State superintendent of the schools 
in my home State. I coauthored the provision that we're talking about 
here. We can now fix that problem.
  Madam Speaker, I urge my colleagues to vote ``yes'' on this piece of 
legislation for jobs for the American people, schools for our children, 
and a chance to help heal and help those who do not now have work.
  Mr. CONYERS. Madam Speaker, I rise in opposition to H.R. 2847, the 
``HIRE Act.'' While I am sensitive to the excruciating economic pain 
felt by many in my district and around the country, I cannot in good 
conscience support this flawed bill.
  I applaud the House and Senate leadership for including some common 
sense job creation provisions in this bill. In particular, I support 
the inclusion of language that frees up $77 billion dollars worth of 
surface transportation investments and another provision that gives the 
recipients of qualified clean energy, school construction, and energy 
conservation bonds a direct payment from the federal government to 
cover their interest costs.
  I wish that these provisions were enough to secure my support for 
this legislation and help those who cry out for additional economic 
aid. Unfortunately, the originators of this legislation--my colleagues 
in the United States Senate--decided to set aside the remaining $13 
billion dollars of this $17 billion dollar bill for an ineffective and 
wasteful hiring tax credit. As with many previous efforts in the upper 
chamber, the Senate has yet again sacrificed effective policy in order 
to tout some small measure of bipartisan support.
  During my 45 years in this body, we have debated whether or not to 
raise the minimum wage countless times. As we know from these 
reoccurring debates, companies do not respond to small changes in the 
cost of labor. This is why the periodic 15 to 20 percent increases in 
the minimum wage enacted into law by the Congress over the years have 
not effected employer hiring decisions. Unfortunately, the very 
economic reality that makes the minimum wage good policy also makes the 
Schumer-Hatch hiring credit bad policy.
  If a 15 to 20 percent increase in the minimum wage doesn't affect 
employer decision-making, logic dictates that an even smaller payroll 
tax break--6.2 percent to be exact--for companies that hire recently 
unemployed workers will similarly have a nonexistent effect on hiring. 
This bill will create yet another failed corporate ``trickle-down'' tax 
break and Congress will hand out a new benefit--paid with scarce 
taxpayer resources--to employers who hire workers they would have hired 
anyway.
  This is not to say that a properly conceived tax policy couldn't 
receive bipartisan support or play an important role in spurring 
hiring. For example, I have proposed legislation that is supported by 
many economists and organizations on both the left and right that would 
save millions of jobs at minimal cost to the federal government. My 
``SHARE Credit Act'' would provide a tax credit to employers that 
shorten hours instead of firing workers. For a mere $22,000 dollars a 
worker, we could cheaply and efficiently stem the monsoon of layoffs 
reported each month by the Labor Department.
  However, above and beyond mere tax policy, Members on both sides of 
the aisle know that we need to do more. Ending the unacceptably high 
levels of unemployment that plague our economy will require us to 
attack this epidemic using all the tools of the federal government. 
This means coupling progressive tax measures with public works job 
hiring initiatives and a commitment to full employment. To do anything 
else would be a betrayal of the fundamental trust given by those who 
elected us. Each of us comes to Washington with a simple task: Address 
the most critical issues that face the Nation by using the most 
effective tools at our disposal. No bonus points are awarded for 
bipartisan legislation that does not meet this high standard.
  A bill whose major component is a meaningless giveaway to corporate 
America cannot be called a jobs bill. At a minimum, the Senate should 
conference the $150 billion dollar jobs package that that the House 
passed last December. Uneven and piecemeal legislative efforts like 
this bill must be the exception, not the norm. I encourage my 
colleagues to oppose this bill.
  Mr. SENSENBRENNER. Madam Speaker, I rise today in opposition of this 
so-called jobs bill. The incentives in this bill are a rehashing of the 
failed policies of the Carter Administration's stimulus in 1977, and I 
do not believe these measures will truly create jobs.
  The news reports daily that Americans are not only hurting with the 
downturn of the economy, but they are also fearful that their 
government will continue to recklessly spend in the name of economic 
recovery. Last year, stimulus legislation was passed in this House, 
promising that a trillion dollars robbed from future generations of 
Americans would create jobs immediately and unemployment would not rise 
above 8 percent. The truth, however, is that since this boondoggle 
became law, unemployment hasn't fallen below 8 percent; it has risen to 
over 10 percent, and still hovers at just under 10 percent. Millions of 
jobs have been lost since the recession began, and Washington's only 
answer has been to spend money.
  Wisconsinites have been contacting me with their concerns daily since 
President Obama first announced this plan in the State of the Union 
Address. While it is noble for Washington to suspend payroll taxes for 
employers that hire new workers, enact a $1,000 tax credit for 
retaining employees, and increase the expensing of new equipment 
purchased by small businesses, I fear that these measures are merely a 
superficial solution. Employers will not be able to take advantage of 
these incentives if they do not have work to offer. It is common sense 
that employers hire workers because they have work that needs to be 
done, not because they will get a tax credit. The fact remains that 
businesses in this country are scared. They are scared by the 
uncertainty that Congress is projecting. The threat of increased taxes, 
increased government regulation, and costly government mandates are 
creating an environment that does not bode well for job seekers.
  We must focus on increasing businesses' confidence that their 
government will not further hamper their abilities to create work. At 
the end of the day, this legislation is a drop in

[[Page 2612]]

the bucket, it is not the solution. Only after long-term tax relief can 
we realize long-term economic recovery.
  Mr. BACA. Madam Speaker, tomorrow, the new monthly labor statistics 
will be announced.
  And even though the national unemployment may decrease, job creation 
still needs to be our number one priority moving forward.
  Thankfully, later today, we will have a chance to take a major step 
in improving the economic outlook for families across America.
  The HIRE Act will provide over $77 billion in investments in 
transportation projects.
  It will also allow for a continuation of minority-owned business 
contracting requirements for these projects.
  Incentives for hiring and retaining new employees will be 
implemented.
  Addiionally, a direct payment option for certain tax credit bond 
programs will increase school construction and renewable energy 
projects.
  The time for partisan talking points has passed.
  The American people demand better and we will have a chance to 
deliver that relief later today.
  I urge my colleagues on both sides of the aisle to pass the HIRE Act 
and put Americans back to work.
  Mr. HOYER. Madam Speaker, last year, President Obama and the 111th 
Congress took their oaths of office as America faced the greatest 
economic crisis since the Great Depression. Since then, our work has 
been defined by our response to the crisis--by the overriding job of 
getting Americans back to work.
  Of course, the most important step toward putting Americans back to 
work has been the Recovery Act. It cut taxes for small businesses and 
95% of families, started thousands of job-creating projects across 
America, provided emergency assistance to those hit hardest by the 
recession, saved states from laying off teachers, firefighters, and 
police officers, and more. And despite the efforts of some partisan 
critics to call it a failure--even as many of those same critics 
eagerly take credit for the funds it has provided for their districts--
the Recovery Act is working.
  The Recovery Act created some 2 million jobs. And since President 
Obama took office, job losses are down 90%. Our economy is growing 
again: in the most recent quarter, it grew by 5.9%, the fastest rate in 
six years, and the second straight quarter of growth under President 
Obama.
  All of that is real progress for our economy--but it is not yet 
success. In recession after recession, employment has been the last 
sign of growth to turn around. Far too many Americans remain unemployed 
through no fault of their own, caught in the effects of an economic 
collapse they did not create. For working families, few challenges are 
more trying than unemployment, especially unemployment that grinds on 
for month after month. For Washington, few challenges demand our action 
more urgently.
  That's why I urge my colleagues to pass this bill--a clear, focused 
effort at putting Americans back to work. It provides strong incentives 
for businesses to start hiring again. They include a tax exemption that 
will eliminate businesses' 2010 payroll taxes for every unemployed 
worker hired. The nonpartisan Congressional Budget Office reports that 
such tax credits are one of the most effective ways of creating jobs: 
``Providing tax credits for increases in payrolls would increase both 
output and employment.'' Businesses will also receive further tax 
credits for keeping new employees on the payroll for the next year. And 
small businesses will be able to take advantage of tax incentives to 
finance their expansion.
  This bill also extends the highway programs that have created jobs 
for so many Americans, while bringing our vital infrastructure up to 
par with the rest of the world's. This bill will mean billions more 
invested in job-creating highway projects, which will save one million 
jobs. It will ensure that states direct some of their transportation 
investment to minority-owned contractors. And it will make it easier 
for states and local communities to finance their own job-creating 
projects by selling Build America Bonds.
  Finally, I want to point out that this bill is paid for--that it 
fully complies with both the House PAYGO rule and statutory PAYGO, 
which are so important to restoring our budget to balance. In fact, 
this bill fixes a minor PAYGO violation in the Senate bill--and that 
extra effort shows how serious the House is about paying for what our 
country buys.
  Unemployment demands action from Congress. And this bill is a part of 
that effort to create jobs, which began with the Recovery Act and will 
continue with a wide range of creative policies in the weeks ahead. 
This bill is not the first step, and it will not be the last; but it is 
an essential step toward getting America back to work.
  Ms. KILPATRICK of Michigan. Madam Speaker, the State of Michigan's 
unemployment is 687,400 people unemployed. Detroit has 305,200 people 
unemployed. We have 15 million people unemployed in our nation. America 
and Americans are practically shouting for Congress to get Americans 
back to work. The best stimulus package is a job. H.R. 2847, the Hiring 
Incentives to Restore Employment Act, is not that bill. This 
legislation, providing tax incentives to businesses to hire people. 
This is not the answer. How Congress can walk away with more than 
680,000 people unemployed in Michigan, and more than 15 million people 
unemployed in our nation, is shameful.
  When I served as Chairwoman of the Congressional Black Caucus, along 
with my CBC colleagues, I pushed for more than two years for both a 
strong summer jobs program and a federal bill that would directly hire 
the unemployed. This is a bill that is modeled off of the successful 
Comprehensive Employment Training Act (CETA) program of the 1970s-
1980s. The CETA program, which gave grants directly to cities, 
counties, and non-profit organizations to hire and train individuals, 
worked to lower our unemployment rate and stabilize our economy during 
the previous recession. It would be easy to make this legislative fix 
not next week, not next month, but right now. During the Depression, 
President Franklin Roosevelt almost halved the unemployment rate with a 
similarly aggressive program under the Work Progress Administration. I 
am ashamed and disgusted that the U.S. House of Representatives cannot 
find the collective political courage and will to do what is needed for 
the people of America.
  What does a real jobs bill look like? In addition to what I have 
pointed out earlier, a real jobs bill would:
  Create public jobs initiatives, involving the Department of Labor 
Employment & Training Administration and the Corporation for National 
and Community Service, to maximize direct training and hiring:
  Provide locally-directed funding for Summer Youth Employment and 
collegiate-level apprenticeships and/or fellowships:
  Enforce the minority contracting requirements under the Department of 
Transportation and promoting equal access to funding for projects of 
the National Significant and National Corridor grants in the extension 
of SAFETEA-LU:
  Expand unemployment insurance and COBRA benefits: and
  Provide access to capital and technical assistance to capital for 
small businesses from the Small Business Administration and the 
Minority Business Development Agency.
  I am sure that there are other areas, but these areas, in particular, 
would be a great place to start.
  I know too well that the Democrats have inherited the worst job 
market since World War II. Too many workers have lost their jobs 
through no fault of their own. GM and Chrysler have gone bankrupt. We 
are staring down the barrel of a $12 trillion deficit. This fiscal 
year, we have to make difficult decisions. All Americans, in Congress, 
in business and at home, must work together to keep our recovery on 
track by helping small businesses create jobs, investing in our 
infrastructure and clean energy industries, and keeping police, 
firefighters, and teachers on the job. This bill is not that bill.
  I understand politics. I know the legislative process. It is my 
belief that this bill is supposed to be the first in a series of bills 
that is to address the chronically unemployed. Regrettably, I also 
heard this more than two years ago. Today, Congress is no closer to a 
real jobs bill two years later. The time for incrementalism is over.
  I remain a proud and steadfast supporter of the American Recovery and 
Reinvestment Act. Hundreds of thousands of jobs and businesses have 
been helped. However, that bill was meant as a quick, temporary fix for 
businesses and to help stimulate the economy. Employment was a welcome 
by-product of that law. 15 million people who are still unemployed are 
telling us that we need to do more. We need to do it now.
  This is not a jobs bill. This is a business tax cut bill. While I 
remain willing and able to work with my colleagues for a real jobs 
bill, I cannot support this tax cut legislation.
  Mr. VAN HOLLEN. Madam Speaker, I rise in support of the Hiring 
Incentives to Restore Employment, HIRE, Act as an important part of the 
ongoing jobs agenda Congress will continue to prioritize in the months 
ahead. Simply put, we will not stop until every American who wants a 
job can find one, and we have launched a new era of broadly shared 
American prosperity.

[[Page 2613]]

  To boost near term employment while tackling our nation's 
infrastructure backlog, the HIRE Act extends the current surface 
transportation law through the end of 2010 and provides $77 billion to 
get our nation's highways, roads and public transit systems back into 
shape. A new direct payment option for states and localities that issue 
tax credit bonds for school construction, energy conservation and 
renewable energy will further support job creation in these vital 
sectors.
  I am pleased that this legislation continues support for our job-
generating small businesses by extending the enhanced expensing begun 
in the Recovery Act. Under this provision, small businesses will be 
able to immediately write off up to $250,000 for qualified capital 
expenditures incurred in 2010.
  Finally, as a signature initiative, this bill will encourage 
businesses to hire new workers by providing a payroll tax holiday equal 
to the employer's share of social security taxes for every new hire 
made between February 3, 2010 and January 1, 2011. An additional $1000 
tax credit is provided for every employee kept on for a full calendar 
year.
  Madam Speaker, the HIRE Act will put more Americans back to work 
providing for their families and participating in our ongoing economic 
recovery. It is fully paid for and deserves my colleagues' support.
  Ms. JACKSON LEE of Texas. Madam Speaker, I rise in opposition of H.R. 
2847, ``Hiring Incentives to Restore Employment. Though this bill aims 
to create and save many jobs this year, it does not go nearly far 
enough to get jobs to those communities that are suffering the most. We 
need to get jobs in the hands of the most vulnerable Americans.
  Last Thursday, the House passed emergency legislation that would 
extend a range of programs that unfortunately expired last weekend. 
These programs included: unemployment benefits; help with health 
insurance for the unemployed (COBRA); the highway bill; satellite TV; 
delay in the cut in Medicare physician payments; flood insurance; and 
small business loan guarantees. We passed this emergency legislation in 
the House, but Republican Senator Jim Bunning is single-handedly 
blocking passage of this emergency measure, despite the critical needs 
of millions of families across the United States during this economic 
downturn.
  H.R. 2847 proposes to provide:
  $77.155 billion of investments in surface transportation projects 
that will create and save good-paying jobs in our communities;
  More than $39 billion in transportation and infrastructure which is 
projected to create 1,158,204 jobs;
  Incentives for hiring and retaining new employees, and extension of 
these benefits to businesses in U.S. territories and possessions; and
  A direct payment option for certain tax credit bond programs enabling 
State and local governments to increase school construction, complete 
clean and renewable energy projects, and create green jobs.
  Madam Speaker, although this bill proposes to spend billions of 
dollars for job creation, there is nothing that would create jobs for 
those who are chronically unemployed and those such as ex-felons, who 
want to work but are not being afforded the chance. Advocates say there 
are good reasons for employers and communities to help former felons 
re-enter the work force. With an estimated 650,000 people released from 
prison each year nationwide, helping them get jobs can reduce the 
chances that they will be jailed again or need welfare.
  U.S. Attorney Patrick Fitzgerald tells businesses in Chicago that 
hiring ex-felons is one of the best ways to reduce violent crime 
because it erases the reason behind many offenses. It can also provide 
an economic boost to some of the nation's poorest neighborhoods.
  Though there is funding in this bill to improve infrastructures in 
this country, there is nothing in this bill that will provide for the 
rehabilitation of housing projects in the most vulnerable communities. 
It is not only a good idea to rebuild certain parts of this country, 
but it is also necessary to rebuild the areas that have been neglected 
for so long. Unfortunately, we are missing the perfect opportunity to 
create jobs in communities of those who need them most.
  We need to put jobs in the hands of Americans. Unemployment in the 
Houston-Sugar Land-Baytown region climbed to 5.4 percent in October, 
according to a recent report from the Texas Workforce Commission. There 
were 152,300 people without jobs during the month out of a total 
civilian labor force of about 2.8 million, compared with 144,200 
people, or 5.1 percent, unemployed out of a civilian labor force of 2.8 
million in September, according to the TWC. The unemployment rate in 
October was up from 4 percent a year ago.
  Madam Speaker, getting all Americans back to work is, and should be, 
our number one priority. I am happy to know that this bill will provide 
employers with incentives to hire and retain new employees. I am also 
pleased to know that in order to encourage employers to hire new 
employees, the bill would exempt employers from paying the employer 
share of Social Security employment taxes (6.2 percent of the first 
$106,800 of wages) for wages paid in 2010 for any new employee hired 
after February 3, 2010, and before January 1, 2011, if the new employee 
(1) was previously unemployed and (2) does not replace another employee 
of the employer.
  Madam Speaker, I believe we could have made this bill much better and 
more effective in attacking the joblessness among the most vulnerable 
communities, if it had included targeted funding to areas that create 
jobs for the chronically unemployed and those ex-felons who want to 
work and are trying to get back on the right path. Without such 
funding, I cannot support this bill.
  Mr. TIAHRT. Madam Speaker, I was unable to make the vote on H.R. 2847 
due to the untimely death and funeral of one of my staffers' father.
  Had I been present for the vote, I would have voted ``Nay.'' If there 
is one thing the American people agree upon it's that major changes are 
necessary in order to dig ourselves out of this spending quagmire. The 
American people want us to reform our spending practices so that our 
economy can be prosperous once again.
  The irony of this ``Jobs'' bill is that it includes a net tax revenue 
increase of $14.3 billion, which will force employers to cut jobs in 
order to pay more money to the federal government. Strangely, the 
Democrats attempt to give a tax break to small businesses on one hand 
but then take away with the other.
  This legislation also includes another short-term extension of the 
highway authorization. Instead of continuing with short-term extensions 
of transportation funding, Congress needs to enact a meaningful, 6-year 
surface transportation funding bill.
  Today, I introduced the Keeping American Businesses Competitive Act. 
This legislation would lower the top business tax rate from 35 percent 
to 22 percent. The United States currently has the second highest 
corporate tax rate of any industrialized nation, putting American 
workers and businesses at a huge competitive disadvantage. Rather than 
the Democrat ``solution'' of increasing taxes to address job loss, 
lowering the corporate tax rate will actually put people back to work. 
According to the Milken Institute, lowering the rate to 22 percent 
would ``create an additional 350,000 manufacturing jobs and increase 
total employment by 2.13 million.''
  If this Congress is serious about getting Americans back to work, it 
should focus its efforts on proven, free-market principles that will 
level the playing field for our businesses to compete and keep capital 
and jobs here in the U.S.
  For the above reasons, I oppose this bill.
  Mr. ETHERIDGE. I yield back the balance of my time.
  The SPEAKER pro tempore. Pursuant to House Resolution 1137, the 
previous question is ordered.
  The question is on the motion offered by the gentleman from North 
Carolina (Mr. Etheridge).
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.
  Mr. ETHERIDGE. Madam Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, this 15-
minute vote on the motion offered by the gentleman from North Carolina 
(Mr. Etheridge) will be followed by a 5-minute vote on the motion to 
suspend the rules and adopt House Resolution 1079.
  The vote was taken by electronic device, and there were--yeas 217, 
nays 201, not voting 14, as follows:

                             [Roll No. 90]

                               YEAS--217

     Ackerman
     Adler (NJ)
     Altmire
     Andrews
     Arcuri
     Baca
     Baldwin
     Barrow
     Becerra
     Berkley
     Berman
     Berry
     Bishop (GA)
     Bishop (NY)
     Blumenauer
     Boccieri
     Boren
     Boswell
     Boucher
     Boyd
     Brady (PA)
     Braley (IA)
     Bright
     Butterfield
     Camp
     Cao
     Capuano
     Cardoza
     Carnahan
     Carney
     Carson (IN)
     Castor (FL)
     Chandler
     Childers
     Chu
     Clyburn
     Cohen
     Connolly (VA)
     Cooper
     Costa
     Costello
     Courtney
     Cuellar
     Cummings
     Davis (AL)
     Davis (CA)
     Davis (TN)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dicks
     Dingell
     Donnelly (IN)

[[Page 2614]]


     Doyle
     Duncan
     Edwards (TX)
     Ehlers
     Ellison
     Ellsworth
     Engel
     Etheridge
     Farr
     Fattah
     Filner
     Foster
     Frank (MA)
     Garamendi
     Giffords
     Gonzalez
     Gordon (TN)
     Grayson
     Green, Gene
     Gutierrez
     Hall (NY)
     Halvorson
     Hare
     Harman
     Heinrich
     Herseth Sandlin
     Higgins
     Hill
     Himes
     Hinchey
     Hinojosa
     Hirono
     Hodes
     Holden
     Holt
     Honda
     Hoyer
     Inslee
     Israel
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilroy
     Kissell
     Klein (FL)
     Kosmas
     Kratovil
     Kucinich
     Langevin
     Larsen (WA)
     Larson (CT)
     Levin
     Lewis (GA)
     Lipinski
     Loebsack
     Lofgren, Zoe
     Lowey
     Lujan
     Lynch
     Maffei
     Maloney
     Markey (CO)
     Markey (MA)
     Marshall
     Matheson
     Matsui
     McCarthy (NY)
     McCollum
     McDermott
     McGovern
     McIntyre
     McMahon
     McNerney
     Meek (FL)
     Meeks (NY)
     Melancon
     Michaud
     Miller (NC)
     Miller, George
     Minnick
     Mollohan
     Moore (KS)
     Moran (VA)
     Murphy (CT)
     Murphy (NY)
     Murphy, Patrick
     Murphy, Tim
     Nadler (NY)
     Napolitano
     Neal (MA)
     Nye
     Oberstar
     Obey
     Olver
     Ortiz
     Owens
     Pallone
     Pascrell
     Pelosi
     Perlmutter
     Peters
     Peterson
     Pingree (ME)
     Pomeroy
     Price (NC)
     Quigley
     Rahall
     Rangel
     Reyes
     Rodriguez
     Ross
     Rothman (NJ)
     Roybal-Allard
     Ruppersberger
     Ryan (OH)
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Schakowsky
     Schauer
     Schiff
     Scott (GA)
     Scott (VA)
     Serrano
     Sestak
     Shea-Porter
     Sherman
     Shuler
     Sires
     Skelton
     Slaughter
     Smith (WA)
     Snyder
     Space
     Speier
     Spratt
     Stark
     Stupak
     Sutton
     Tanner
     Taylor
     Teague
     Thompson (CA)
     Tierney
     Titus
     Tonko
     Tsongas
     Van Hollen
     Velazquez
     Walz
     Wasserman Schultz
     Watson
     Waxman
     Weiner
     Welch
     Wilson (OH)
     Woolsey
     Wu
     Yarmuth
     Young (AK)

                               NAYS--201

     Aderholt
     Akin
     Alexander
     Austria
     Bachmann
     Bachus
     Baird
     Barrett (SC)
     Bartlett
     Barton (TX)
     Biggert
     Bilbray
     Bilirakis
     Bishop (UT)
     Blackburn
     Blunt
     Boehner
     Bonner
     Bono Mack
     Boozman
     Boustany
     Brady (TX)
     Broun (GA)
     Brown (SC)
     Brown, Corrine
     Brown-Waite, Ginny
     Buchanan
     Burgess
     Burton (IN)
     Buyer
     Calvert
     Cantor
     Capito
     Carter
     Cassidy
     Castle
     Chaffetz
     Clarke
     Clay
     Cleaver
     Coble
     Coffman (CO)
     Cole
     Conaway
     Conyers
     Crenshaw
     Culberson
     Davis (IL)
     Davis (KY)
     Deal (GA)
     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Doggett
     Dreier
     Driehaus
     Edwards (MD)
     Emerson
     Flake
     Fleming
     Forbes
     Fortenberry
     Foxx
     Franks (AZ)
     Frelinghuysen
     Fudge
     Gallegly
     Garrett (NJ)
     Gerlach
     Gingrey (GA)
     Gohmert
     Goodlatte
     Granger
     Graves
     Green, Al
     Griffith
     Grijalva
     Guthrie
     Hall (TX)
     Harper
     Hastings (FL)
     Hastings (WA)
     Heller
     Hensarling
     Herger
     Hunter
     Inglis
     Issa
     Jackson (IL)
     Jackson Lee (TX)
     Jenkins
     Johnson (GA)
     Johnson (IL)
     Johnson, E. B.
     Johnson, Sam
     Jones
     Kilpatrick (MI)
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kirkpatrick (AZ)
     Kline (MN)
     Lamborn
     Lance
     Latham
     LaTourette
     Latta
     Lee (CA)
     Lee (NY)
     Lewis (CA)
     LoBiondo
     Lucas
     Luetkemeyer
     Lummis
     Lungren, Daniel E.
     Mack
     Manzullo
     Marchant
     McCarthy (CA)
     McCaul
     McClintock
     McCotter
     McHenry
     McKeon
     McMorris Rodgers
     Mica
     Miller (FL)
     Miller (MI)
     Miller, Gary
     Mitchell
     Moore (WI)
     Moran (KS)
     Myrick
     Neugebauer
     Nunes
     Olson
     Pastor (AZ)
     Paul
     Paulsen
     Payne
     Pence
     Perriello
     Petri
     Pitts
     Platts
     Poe (TX)
     Polis (CO)
     Posey
     Price (GA)
     Putnam
     Radanovich
     Rehberg
     Reichert
     Richardson
     Roe (TN)
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Rooney
     Ros-Lehtinen
     Roskam
     Royce
     Rush
     Ryan (WI)
     Scalise
     Schmidt
     Schock
     Schrader
     Sensenbrenner
     Sessions
     Shadegg
     Shimkus
     Shuster
     Simpson
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Souder
     Stearns
     Sullivan
     Terry
     Thompson (MS)
     Thompson (PA)
     Thornberry
     Tiberi
     Towns
     Turner
     Upton
     Visclosky
     Walden
     Wamp
     Waters
     Watt
     Westmoreland
     Whitfield
     Wilson (SC)
     Wittman
     Wolf
     Young (FL)

                             NOT VOTING--14

     Bean
     Campbell
     Capps
     Crowley
     Dahlkemper
     Eshoo
     Fallin
     Hoekstra
     Jordan (OH)
     Kind
     Linder
     Massa
     Schwartz
     Tiahrt


                Announcement by the Speaker Pro Tempore

  The SPEAKER pro tempore (during the vote). Members have 2 minutes 
remaining in this vote.

                              {time}  1530

  Messrs. WITTMAN, CARTER, and CONYERS changed their vote from ``yea'' 
to ``nay.''
  So the motion was agreed to.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.
  Stated for:
  Mrs. CAPPS. Madam Speaker, on rollcall No. 90, had I been present, I 
would have voted ``yes.''
  Ms. SCHWARTZ. Madam Speaker, on rollcall No. 90, had I been present, 
I would have voted ``yes.''
  Mr. KIND. Madam Speaker, I was unable to have my vote recorded on the 
House floor during the vote on H.R. 2847 on Thursday, March 4, 2010 
because I was detained due to a meeting with the President of the 
United States. Had I been present, I would have voted in favor of H.R. 
2847 (Roll No. 90).
  Stated against:
  Ms. BEAN. Madam Speaker, I was inadvertently detained and I was 
unable to cast a vote on March 4, 2010. If I had been present I would 
have cast the following vote:
  Rollcall 90--On motion to Concur in the Senate Amendments with an 
Amendment to H.R. 2847: ``No.''

                          ____________________