    [House Report 109-153]
    [From the U.S. Government Publishing Office]

    109th Congress                                                   Report
                            HOUSE OF REPRESENTATIVES
     1st Session                                                    109-153

    ======================================================================

        DEPARTMENTS OF TRANSPORTATION, TREASURY, AND HOUSING AND URBAN
       DEVELOPMENT, THE JUDICIARY, DISTRICT OF COLUMBIA, AND INDEPENDENT
                       AGENCIES APPROPRIATIONS BILL, 2006

                                    _______

     June 24, 2005.--Committed to the Committee of the Whole House on the
                  State of the Union and ordered to be printed

                                    _______

     Mr. Knollenberg, from the Committee on Appropriations, submitted the
                                   following

                                  R E P O R T

                                 together with

                                ADDITIONAL VIEWS

                            [To accompany H.R. 3058]

        The Committee on Appropriations submits the following
    report in explanation of the accomopanying bill making
    appropriations for the Departments of Transportation, Treasury,
    and Housing and Urban Development, the Judiciary, District of
    Columbia, and independent agencies for the fiscal year ending
    September 30, 2006.

                            INDEX TO BILL AND REPORT

                                                                Page number

                                                                Bill Report
    Operating plan and reprogramming procedures................
                                                                          2
    Relationship with budget offices...........................
                                                                          3
    The effect of guaranteed spending..........................
                                                                          3
    Tabular summary............................................
                                                                          4
    Committee hearings.........................................
                                                                          4
    Program, project, and activity.............................
                                                                          4
    Title I--Department of Transportation......................     2
                                                                          5
    Title II--Department of the Treasury.......................    47
                                                                         66
    Title III--Department of Housing and Urban Development.....    63
                                                                         81
    Title IV--The Judiciary....................................   109
                                                                        111
    Title V--District of Columbia..............................   116
                                                                        117
    Title VI--Executive Office of the President and Funds:
            Appropriated to the President......................   149
                                                                        133
    Title VII--Independent Agencies:
            Architectural and Transportation Barriers
                Compliance Board...............................   160
                                                                        142
            Consumer Product Safety Commission.................   160
                                                                        142
            Election Assistance Commission.....................   161
                                                                        143
            Federal Deposit Insurance Corporation..............   161
                                                                        144
            Federal Election Commission........................   161
                                                                        144
            Federal Labor Relations Authority..................   162
                                                                        145
            Federal Maritime Commission........................   162
                                                                        145
            General Services Administration....................   163
                                                                        146
            Merit Systems Protection Board.....................   175
                                                                        153
            Morris K. Udall Foundation.........................   175
                                                                        153
            National Archives and Records Administration.......   176
                                                                        154
            National Credit Union Administration...............   178
                                                                        156
            National Transportation Safety Board...............   178
                                                                        157
            Neighborhood Reinvestment Corporation..............   179
                                                                        158
            Office of Government Ethics........................   179
                                                                        158
            Office of Personnel Management.....................   180
                                                                        159
            Office of Special Counsel..........................   183
                                                                        162
            Selective Service System...........................   184
                                                                        163
            United States Interagency Council on Homelessness..   185
                                                                        163
            United States Postal Service.......................   185
                                                                        164
            United States Tax Court............................   186
                                                                        165
    Title VIII--General Provisions--This Act...................   186
                                                                        165
    Title IX--General Provisions: Departments, Agencies, and
        Corporations...........................................   194
                                                                        167
    House of Representatives Report Requirements:
                                                                        170
            Constitutional authority...........................
                                                                        170
            Appropriations not authorized by law...............
                                                                        170
            Transfers of funds.................................
                                                                        173
            Statement of general performance goals and
                objectives.....................................
                                                                        175
            Compliance with rule XIII, clause 3(e) (Ramseyer
                rule)..........................................
                                                                        176
            Changes in the application of existing law.........
                                                                        180
            Comparison with the budget resolution..............
                                                                        200
            Five-year outlay projections.......................
                                                                        200
            Financial assistance to state and local governments
                                                                        200
            Rescissions........................................
                                                                        202
            Full Committee votes...............................
                                                                        203
            Tabular summary of the bill........................
                                                                        209

                  Operating Plan and Reprogramming Procedures

        The Committee continues to have a particular interest in
    being informed of reprogrammings which, although they may not
    change either the total amount available in an account or any
    of the purposes for which the appropriation is legally
    available, represent a significant departure from budget plans
    presented to the Committee in an agency's budget justifications
    and supporting documents, the basis of this appropriations Act.
        Consequently, the Committee directs the departments,
    agencies, boards, commissions, corporations and offices funded
    at or in excess of $100,000,000 in this bill, to consult with
    the Committee prior to each change from the approved budget
    levels in excess of $500,000 between programs, activities,
    object classifications or elements unless otherwise provided
    for in the Committee report accompanying this bill. For
    agencies, boards, commissions, corporations and offices funded
    at less than $100,000,000 in this bill, the reprogramming
    threshold shall be $250,000 between programs, activities,
    initiatives object classifications or elements unless otherwise
    provided for in the Committee report accompanying this bill.
    Additionally, the Committee expects to be promptly notified of
    all reprogramming actions which involve less than the above-
    mentioned amounts. If such actions would have the effect of
    significantly changing an agency's funding requirements in
    future years, or if programs or projects specifically cited in
    the Committee's reports are affected by the reprogramming, the
    reprogramming must be approved by the Committee regardless of
    the amount proposed to be moved. Furthermore, the Committee
    wishes to be consulted regarding reorganizations of offices,
    programs, and activities prior to the planned implementation of
    such reorganizations.
        The Committee also directs that the Departments of
    Transportation, Treasury and Housing and Urban Development, as
    well as the Judiciary, the General Services Administration, and
    the Office of Personnel Management, shall submit operating
    plans, signed by the respective secretary, administrator, or
    agency head, for the Committee's review within 60 days of the
    bill's enactment.

                        Relationship With Budget Offices

        Through the years, the Committee has channeled most of its
    inquiries and requests for information and assistance through
    the budget offices of the various departments, agencies, and
    commissions. The Committee has often pointed to the natural
    affinity and relationship between these organizations and the
    Committee which makes such a relationship workable. The
    Committee reiterates its longstanding position that while the
    Committee reserves the right to call upon all offices in the
    departments, agencies, and commissions, the primary conjunction
    between the Committee and these entities must normally be
    through the budget offices. The Committee appreciates all the
    assistance received from each of the departments, agencies, and
    commissions during the past year. The workload generated by the
    budget process is large and growing, and therefore, a positive,
    responsive relationship between the Committee and the budget
    offices is absolutely essential to the appropriations process.

                       The Effect of Guaranteed Spending

        Over the objections of the Appropriations and Budget
    Committee, in 1998 the Transportation Equity Act for the 21st
    Century (TEA-21) amended the Budget Enforcement Act to provide
    two new additional spending categories or ``firewalls'', the
    highway category and the mass transit category. The Wendell H.
    Ford Aviation Investment and Reform Act for the 21st Century
    (AIR-21) provided a similar treatment for certain aviation
    programs. Although using different procedures, each of these
    Acts produced the same results: they significantly raised
    spending, and they have had the effect of prohibiting the
    Appropriations Committee from reducing those spending levels in
    the annual appropriations process. As the Committee noted
    during deliberations on these bills, the Acts essentially
    created mandatory spending programs within the discretionary
    caps. This undermines Congressional flexibility to fund other
    equally important programs not protected by funding guarantees
    and to address emerging priorities, such as homeland security
    and overseas military requirements, within projected budget
    totals. The reorganization of the Committee in the 108th
    Congress posed additional challenges in this regard, because
    funding guarantees for selected transportation programs compete
    in the budget process against funding for non-transportation
    agencies such as the Department of Housing and Urban
    Development, Office of National Drug Control Policy,
    enforcement of anti-terrorism and money laundering activities
    in the Treasury Department, the Internal Revenue Service, and
    the General Services Administration as well as the Judiciary.
    As in past years, the Committee has done all in its power,
    considering this environment, to produce a balanced bill
    providing adequately for all modes of transportation as well as
    all non-transportation programs under the jurisdiction of this
    bill.
        Although the funding guarantees in AIR-21 were extended in
    the Vision-100 Century of Aviation Reauthorization Act last
    year, the guarantees of TEA-21 expired on September 30, 2003.
    The Committee's recommendations were developed based on the
    very generous funding levels in H.R. 3, the Transportation
    Equity Act, A Legacy for Users. As reauthorization of our
    surface transportation programs continues to be debated during
    the current session of Congress, the Committee wants to make
    clear that the continued use of spending guarantees to ``wall-
    off'' parts of the discretionary budget for particular
    constituencies could cause both transportation and non-
    transportation programs across the government to be under more
    severe budget pressure, in order to keep the overall budget in
    balance. The effect of maintaining and enforcing these
    guarantees would leave its mark on non-covered programs and
    activities in this bill, since they must compete for leftover
    funding. The Committee continues to believe that funding
    guarantees skew transportation priorities inappropriately, by
    providing increases to highway, transit, and airport spending
    while leaving safety-related operations in the FAA and FRA, as
    well as critical housing financial, and judicial programs, to
    scramble for the remaining resources.

                                Tabular Summary

        A table summarizing the amounts provided for fiscal year
    2005 and the amounts recommended in the bill for fiscal year
    2006 compared with the budget estimates is included at the end
    of this report.

                               Committee Hearings

        The Committee has conducted extensive hearings on the
    programs and projects provided for in this bill. Pursuant to
    House rules, each of these hearings was open to the public. The
    Committee received testimony from cabinet officers, agency
    heads, inspectors general, and other officials of the executive
    branch in areas under the bill's jurisdiction. In addition, the
    Committee has considered written material submitted for the
    hearing record by Members of Congress, private citizens, local
    government entities, and private organizations. The bill
    recommendations for fiscal year 2006 have been developed after
    careful consideration of all the information available to the
    Committee.

                         Program, Project, and Activity

        During fiscal year 2006, for the purposes of the Balanced
    Budget and Emergency Deficit Control Act of 1985 (Public Law
    99-177), as amended, with respect to appropriations contained
    in the accompanying bill, the terms ``program, project, and
    activity'' shall mean any item for which a dollar amount is
    contained in an appropriations Act (including joint resolutions
    providing continuing appropriations) or accompanying reports of
    the House and Senate Committees on Appropriations, or
    accompanying conference reports and joint explanatory
    statements of the committee of conference. This definition
    shall apply to all programs for which new budget (obligational)
    authority is provided, as well as to capital investment grants,
    Federal Transit Administration. In addition, the percentage
    reductions made pursuant to a sequestration order to funds
    appropriated for facilities and equipment, Federal Aviation
    Administration shall be applied equally to each ``budget item''
    that is listed under said accounts in the budget justifications
    submitted to the House and Senate Committees on Appropriations
    as modified by subsequent appropriations Acts and accompanying
    committee reports, conference reports, or joint explanatory
    statements of the committee of conference.

                     TITLE I--DEPARTMENT OF TRANSPORTATION

                            Office of the Secretary

                             SALARIES AND EXPENSES

    Appropriation, fiscal year 2005 \1\...................       $86,536,000
    Budget request, fiscal year 2006......................        87,046,000
    Recommended in the bill...............................        84,913,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        -1,623,000
        Budget request, fiscal year 2006..................        -2,133,000

    \1\ Includes across the board reduction of .8 percent.
              COMMITTEE RECOMMENDATION

        The bill provides $84,913,000 for the salaries and expenses
    of the various offices comprising the office of the secretary.
    The following table compares the fiscal year 2005 enacted level
    to the fiscal year 2006 budget estimate and the Committee's
    recommendation by office:

    ----------------------------------------------------------------------------------------------------------------
                                                              Fiscal year 2005   Fiscal year 2006
                                                                enacted \1\          estimate      House recommended
    ----------------------------------------------------------------------------------------------------------------
    Immediate office of the secretary......................         $2,202,000         $2,198,000         $2,198,000
    Office of the deputy secretary.........................            699,000            698,000            698,000
    Office of the executive secretariat....................          1,444,000          1,442,000          1,442,000
    Office of the under secretary of transportation for             12,526,000         11,680,000         11,680,000
     policy................................................
    Board of contract appeals..............................            698,000            697,000            697,000
    Official of small and disadvantaged business                     1,268,000          1,265,000          1,265,000
     utilization...........................................
    Office of the chief information officer................         11,301,000         11,895,000         11,895,000
    Office of the assistant secretary for governmental               2,297,000          2,293,000          2,052,000
     affairs...............................................
    Office of the general counsel..........................         15,272,000         15,183,000         15,183,000
    Office of the assistant secretary for budget and                 8,504,000          9,485,000          7,593,000
     programs..............................................
    Office of the assistant secretary for administration...         23,249,000         23,139,000         23,139,000
    Office of public affairs...............................          1,914,000          1,910,000          1,910,000
    Office of intelligence and security....................          2,037,000          2,033,000          2,033,000
    Office of emergency transportation.....................          3,125,000          3,128,000          3,128,000
                                                            --------------------------------------------------------
          Total............................................        $86,536,000        $87,046,000        $84,913,000
    ----------------------------------------------------------------------------------------------------------------
    \1\ Includes across the board reduction of .8 percent.

        Funding for individual offices.--The Committee's
    recommendations include individual funding for all of the
    offices within the office of the secretary, as has been done in
    past years, rather than consolidating them as proposed in the
    budget request. In each instance, the recommendation provides a
    small funding increase over the fiscal year 2005 enacted levels
    to fund the estimated fiscal year 2006 civilian pay increase,
    inflation, and other mandatory increases as requested, unless
    otherwise noted in the sections that follow.
        Office of the general counsel.--The Committee recommends
    $15,183,000 for the office of the general counsel in fiscal
    year 2006. This level should fully fund 104 full time
    equivalent staff years (FTEs) as described in the budget
    justification, which includes $150,000 as requested for one
    additional FTE for the office of emergency transportation's
    litigation caseload and three additional FTEs for which no new
    funding was requested.
        Office of the assistant secretary for governmental
    affairs.--The Committee recommends $2,052,000 for the office of
    governmental affairs, which represents a cut in funding below
    the fiscal year 2005 enacted level.
        When there is a legislative issue of importance to the
    department, the Committee expects the office of the secretary
    to contact the majority and minority staff of both the House
    and the Senate Committees on Appropriations.
        Additionally, the annual appropriations bill for the
    Department of Transportation directs the department to notify
    the Committee no less than three full business days before any
    grant totaling $1,000,000 is announced. In fiscal year 2005,
    due to the fact that funding for some programs was released
    incrementally as the result of enactment of a series of
    extension acts, the Committee was not notified prior to the
    announcement of dozens of grants where the incremental amount
    being released at the time was less than $1,000,000, even
    though the total amount of the grant was over $1,000,000.
    Although the department may feel as though it did not violate
    the letter of the law on grant announcements, it most certainly
    violated the spirit of this provision. The bill once again
    includes a provision that prohibits the Secretary of
    Transportation from issuing funds for any grant unless the
    House and Senate Committees on Appropriations have been
    notified not less than three full business days before any
    discretionary grant award, letter of intent, or full funding
    grant agreement totaling $1,000,000 or more is announced by the
    department or its modal administrations. In addition, due to
    the possibility that certain programs may again face
    incremental funding in fiscal year 2006, the Committee directs
    the department to consider grants based on their full-year
    funding level, not just the incremental amount being released,
    when complying with this grant announcement provision.
        Office of the assistant secretary for budget and
    programs.--The Committee's recommendation of $7,593,000 for
    fiscal year 2006 is 20% below the request and 11% below the
    fiscal year 2005 enacted level. As part of this reduction, the
    request for two additional FTEs for oversight of the
    department's credit programs is denied due to inadequate
    justification. The Committee also denies the department's
    request to hire contract support for these credit programs.
        Through the years, the Committee has channeled most of its
    inquiries and requests for information and assistance through
    the budget offices of the various modal administrations. The
    Committee has often pointed to the natural affinity and
    relationship between these offices and the Committee which
    makes such a relationship workable. The Committee reiterates
    its longstanding position that, while the Committee reserves
    the right to call upon all offices within the department, the
    primary communication between the Committee and the department
    must normally be through the budget offices. As such, the
    Committee expects to have uninhibited access to the budget
    officers in the modal administrations, especially when
    questions arise or when additional information is needed
    pertaining to the budget justifications. The Committee will not
    tolerate continued interference by the office of the secretary
    in these matters. The Committee appreciates all the assistance
    received from each of the offices within the department and the
    modal administrations during the past year. The workload
    generated by the budget process is large and growing, and
    therefore, a positive, responsive relationship between the
    Committee and the budget offices is absolutely essential to the
    appropriations process.
        Congressional budget justifications.--The past few years,
    the Committee has urged the department to improve the quality
    of the budget submissions. However, once again, there were
    significant inconsistencies in the quality and type of
    information provided in the department's budget documents. The
    Committee expects the office of the assistant secretary for
    budget and programs to take a stronger role in ensuring that
    the same quality of information is supplied by each of the
    modal administrations within the department. Similarly, the
    Committee has had numerous discussions with departmental staff
    regarding the type of information and the level of detail that
    should be provided in the Congressional justification
    materials. In fact, in last year's report, the Committee
    directed the department to include the same level of detail
    that was provided in the Congressional justifications presented
    in fiscal year 2003. Yet, many of the budget documents
    submitted for fiscal year 2006 did not adhere to that standard.
    Therefore, the Committee once again directs the department to
    submit its fiscal year 2007 Congressional justification
    materials at the same level of detail provided in the
    Congressional justifications presented in fiscal year 2003.
    Further, the department is directed to include in the budget
    justification funding levels for the prior year, current year,
    and budget year for all programs, activities, initiatives, and
    program elements. Each budget submitted by the department must
    also include detailed justification for the incremental funding
    increases and additional FTEs being requested above the enacted
    level, by program, activity, or program element.
        Operating plan.--The Committee directs the department to
    submit an operating plan for fiscal year 2006, signed by the
    secretary for review by the Committees on Appropriations of
    both the House and Senate within 60 days of the bill's
    enactment. The operating plan should include funding levels for
    the various offices, programs and initiatives detailed down to
    the object class or program element covered in the budget
    justification and supporting documents or referenced in the
    House and Senate appropriations reports, and the statement of
    the managers.
        Form M.--The Committee is concerned that the Department of
    Transportation allowed the motor carriers financial and
    operating statistics survey (Form M data) to lapse in March of
    2005 despite direction to the contrary in the statement of
    managers accompanying the Transportation, Treasury, Independent
    Agencies, and General Government Appropriations Act, 2005. The
    fiscal year 2005 statement of managers denied the request to
    transfer responsibility and funding for the Form M data from
    the Bureau of Transportation Statistics (BTS) to FMCSA but it
    was not the Conferees intent to let the collection and
    reporting of survey data lapse. In fact, the report
    accompanying the fiscal year 2005 Senate transportation
    appropriations bill stated, ``these activities should remain
    within the province of the BTS, which receives sufficient
    funding to continue these activities.'' Collection of this data
    is important because it provides safety-related information on
    motor carriers and is widely used by the industry. The
    Secretary of Transportation is directed to immediately resume
    the motor carrier financial and operating statistics survey.
    The secretary is directed to provide a report within 30 days of
    the bill's enactment to the Committees on Appropriations of
    both the House and Senate that identifies the agency
    responsible for the survey and the funds to be allocated to
    this priority during fiscal year 2006.
        Bill language.--Language prohibiting funding for the
    assistant secretary for public affairs position has been
    retained from last year. Also, the bill continues language that
    permits up to $2,500,000 of fees to be credited to the office
    of the secretary for salaries and expenses.

                             OFFICE OF CIVIL RIGHTS

    Appropriation, fiscal year 2005 \1\...................        $8,630,400
    Budget request, fiscal year 2006......................         8,550,000
    Recommended in the bill...............................         8,550,000
    Bill compared with:
        Appropriation, fiscal year 2005...................           -80,400
        Budget request, fiscal year 2006..................  ................

    \1\ Includes across the board reduction of .8 percent.

        The office of civil rights is responsible for advising the
    secretary on civil rights and equal opportunity matters and
    ensuring full implementation of civil rights opportunity
    precepts in all of the department's official actions and
    programs. This office is responsible for enforcing laws and
    regulations that prohibit discrimination in federally operated
    and federally assisted transportation programs. This office
    also handles all civil rights cases related to department of
    Transportation employees. The recommendation provides
    $8,550,000 for the office of civil rights, the same as the
    budget request.

               TRANSPORTATION PLANNING, RESEARCH, AND DEVELOPMENT

    Appropriation, fiscal year 2005 \1\...................       $19,840,000
    Budget request, fiscal year 2006......................         9,030,000
    Recommended in the bill...............................        40,613,000
    Bill compared with:
        Appropriation, fiscal year 2005...................       +20,773,000
        Budget request, fiscal year 2006..................       +31,583,000

    \1\ Includes across the board reduction of .8 percent.

        This appropriation finances those research activities and
    studies concerned with planning, analysis, and information
    development needed to support the secretary's responsibilities
    in the formulation of national transportation policies. It also
    finances the staff necessary to conduct these efforts. The
    overall program is carried out primarily through contracts with
    other federal agencies, educational institutions, nonprofit
    research organizations, and private firms.
        The Committee recommends an appropriation of $40,613,000
    for transportation planning, research and development, an
    increase of $20,773,000 above the fiscal year 2005 enacted
    level and $31,583,000 above the budget request. Within the
    funds provided, the Committee directs the secretary to provide
    $10,000,000 to support the orderly discontinuation of Amtrak's
    mail and express service; and $20,000,000 to be held in
    reserve, which may be transferred to the Surface Transportation
    Board in order to carry out directed service should Amtrak
    cease operations.

                              WORKING CAPITAL FUND

    Appropriation, fiscal year 2005.......................    ($129,002,000)
    Budget request, fiscal year 2006 \1\..................  ................
    Recommended in the bill...............................     (120,014,000)
    Bill compared with:
        Appropriation, fiscal year 2005...................      (-8,988,000)
        Budget request, fiscal year 2006..................    (+120,014,000)

    \1\ Proposed without limitation.

        The working capital fund (WCF) was created to provide
    common administrative services to the various modes and outside
    entities that desire those services for economy and efficiency.
    The fund is financed through negotiated agreements with the
    department's operating administrations and other governmental
    elements requiring the center's capabilities.

                            COMMITTEE RECOMMENDATION

        The Committee recommends a limitation of $120,014,000 on
    the working capital fund. The budget request proposed a
    limitless program level for the fund in fiscal year 2006. The
    Committee's recommendation is appropriate considering the
    funding levels of the operations and administrative accounts.
        Modal usage of WCF.--Consistent with past practice, the
    Committee directs the department, in its fiscal year 2007
    Congressional justifications for each of the modal
    administrations, to account for increases or decreases in WCF
    billings based on planned usage requested or anticipated by the
    modes rather than anticipated by WCF managers.

                   MINORITY BUSINESS RESOURCE CENTER PROGRAM

                                                              Limitation on
                                            Appropriation   guaranteed loans

    Appropriation, fiscal year 2005.....          $892,800     ($18,367,000)
    Budget request, fiscal year 2006....           900,000      (18,367,000)
    Recommended in the bill.............           900,000      (18,367,000)
    Bill compared to:
        Appropriation, fiscal year 2005.            +7,200       (.........)
        Budget request, fiscal year 2006  ................       (.........)

        The minority business resource center of the office of
    small and disadvantaged business utilization provides
    assistance in obtaining short-term working capital and bonding
    for disadvantaged, minority, and women-owned businesses. The
    program enables qualified businesses to obtain loans at prime
    interest rates for transportation-related projects.
        The recommendation fully funds the budget request of
    $500,000 to cover the subsidy costs for the loans, not to
    exceed $18,367,000, and $400,000 for administrative expenses to
    carry out the guaranteed loan program.

                           MINORITY BUSINESS OUTREACH

    Appropriation, fiscal year 2005 \1\...................        $2,976,000
    Budget request, fiscal year 2006......................         3,000,000
    Recommended in the bill...............................         3,000,000
    Bill compared with:
        Appropriation, fiscal year 2005...................           +24,000
        Budget request, fiscal year 2006..................  ................

    \1\ Includes across the board reduction of .8 percent.

        This appropriation provides contractual support to assist
    minority business firms, entrepreneurs, and venture groups in
    securing contracts and subcontracts arising out of projects
    that involve federal spending. It also provides grants and
    contract assistance that serves DOT-wide goals. The Committee
    has provided $3,000,000 for this program, $24,000 above the
    fiscal year 2005 funding level and equal to the budget request.

                           NEW HEADQUARTERS BUILDING

    Appropriation, fiscal year 2005 \1\...................       $67,456,000
    Budget request, fiscal year 2006......................       100,000,000
    Recommended in the bill...............................       100,000,000
    Bill compared with:
        Appropriation, fiscal year 2005...................       +32,544,000
        Budget request, fiscal year 2006..................  ................

    \1\ Includes across the board reduction of .8 percent.

        This appropriation finances fiscal year 2006 costs for the
    new Department of Transportation headquarters building, which
    would consolidate all of the department's headquarters
    operating administration functions (except the Federal Aviation
    Administration) from various locations around the Washington,
    D.C. metropolitan area into a leased building within the
    central employment area of the District of Columbia.
        The Committee's recommendation includes $100,000,000 in
    fiscal year 2006 for the new headquarters building, $32,544,000
    above the fiscal year 2005 funding level and equal to the
    budget request. The Committee commends the department for its
    efforts to adequately answer all of the questions raised
    regarding the funding of this building.

                            PAYMENTS TO AIR CARRIERS

                        (AIRPORT AND AIRWAY TRUST FUND)

    Appropriation, fiscal year 2005 \1\...................       $51,584,000
    Budget request, fiscal year 2006......................  ................
    Recommended in the bill...............................        54,000,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        +2,416,000
        Budget request, fiscal year 2006..................       +54,000,000

    \1\ Includes across the board reduction of .8 percent.

        The Essential Air Service (EAS) program was originally
    created by the Airline Deregulation Act of 1978 as a temporary
    measure to continue air service to communities that had
    received federally mandated air service prior to deregulation.
    The program currently provides subsidies to air carriers
    serving small communities that meet certain criteria.
        The Federal Aviation Administration Reauthorization Act of
    1996 (Public Law 104-264) authorized the collection of user
    fees for services provided by the Federal Aviation
    Administration (FAA) to aircraft that neither take off from,
    nor land in the United States, commonly known as overflight
    fees. In addition, the Act permanently appropriated these fees
    for authorized expenses of the FAA and stipulated that the
    first $50,000,000 of annual fee collections must be used to
    finance the EAS program. In the event of a shortfall in fees,
    the law requires FAA to make up the difference from other funds
    available to the agency.
        The fiscal year 2006 budget proposes to fund the EAS
    program at a total of $50,000,000, solely from new overflight
    fee collections credited to the Airport and Airway Trust Fund.
    The Committee finds the budget proposal unrealistic considering
    that in fiscal year 2005 the department came to the Committee
    seeking additional funding for the EAS program as several
    communities were in jeopardy of losing air service.
        The Committee recommends a total program level of EAS in
    fiscal year 2006 of $104,000,000, roughly a $2,000,000 increase
    above the level provided in fiscal year 2005. This funding
    consists of an appropriation of $54,000,000 and $50,000,000 to
    be derived from new overflight fee collections.
        The Committee includes language to ensure prompt
    availability of funds for obligation to air carriers providing
    service under the EAS program. The language removes an
    unintended penalty whereby if $50,000,000 is made immediately
    available by the FAA to the EAS program at the beginning of
    each fiscal year, the FAA must take that amount from its
    appropriations, without the ability to credit back amounts
    transferred from the FAA once sufficient overflight fees are
    available. Without this language, the result would be a
    permanent reduction in the appropriations to the FAA. The
    Committee has also included language that allows the secretary
    to take into consideration the subsidy requirements of carriers
    when selecting between carriers competing to provide service to
    a community.
        The bill includes a provision (sec. 182) prohibiting the
    use of funds to implement the essential air service local
    participation program.
        The Committee is concerned that the Department of
    Transportation has yet to implement the code-sharing pilot
    program required under section 406 of the Vision 100--Century
    of Aviation Reauthorization Act (49 Stat. 41731 note; 117 Stat.
    2545). The implementation of this pilot program will increase
    the number of viable transportation options available to small
    communities by giving communities more options and fostering
    competition among non-aligned commuter carriers. The Committee
    feels that this pilot program has the potential to improve air
    service in rural communities, leading to decreased dependency
    on Essential Air Service and other government subsidies. The
    Committee strongly recommends that the Department implement
    this pilot program.

                        Federal Aviation Administration

        The Federal Aviation Administration (FAA) is responsible
    for the safety and development of civil aviation and the
    evolution of a national system of airports. The Federal
    Government's regulatory role in civil aviation began with the
    creation of an Aeronautics Branch within the department of
    Commerce pursuant to the Air Commerce Act of 1926. This Act
    instructed the Secretary of Commerce to foster air commerce;
    designate and establish airways; establish, operate, and
    maintain aids to navigation; arrange for research and
    development to improve such aids; issue airworthiness
    certificates for aircraft and major aircraft components; and
    investigate civil aviation accidents. In the Civil Aeronautics
    Act of 1938, these activities were subsumed into a new,
    independent agency named the Civil Aeronautics Authority.
        After further administrative reorganizations, Congress
    streamlined regulatory oversight in 1957 with the creation of
    two separate agencies, the Federal Aviation Agency and the
    Civil Aeronautics Board. When the Department of Transportation
    began its operations on April 1, 1967, the Federal Aviation
    Agency was renamed the Federal Aviation Administration (FAA)
    and became one of several modal administrations within the
    department. The Civil Aeronautics Board was later phased out
    with enactment of the Airline Deregulation Act of 1978, and
    ceased to exist at the end of 1984. FAA's mission expanded in
    1995 with the transfer of the Office of Commercial Space
    Transportation from the Office of the Secretary, and decreased
    in December 2001 with the transfer of civil aviation security
    activities to the new Transportation Security Administration.

                                   OPERATIONS

                        (AIRPORT AND AIRWAY TRUST FUND)

    Appropriation, fiscal year 2005.......................    $7,712,800,000
    Budget request, fiscal year 2006......................     8,201,000,000
    Recommended in the bill...............................     8,192,920,000
    Bill compared with:
        Appropriation, fiscal year 2005...................      +480,120,000
        Budget request, fiscal year 2006..................        -8,077,000

        This appropriation provides funds for the operation,
    maintenance, communications, and logistical support of the air
    traffic control and air navigation systems. It also covers
    administrative and managerial costs for the FAA's regulatory,
    international, medical, engineering and development programs as
    well as policy oversight and overall management functions.
        The operations appropriation includes the following major
    activities: (1) operation on a 24-hour daily basis of a
    national air traffic system; (2) establishment and maintenance
    of a national system of aids to navigation; (3) establishment
    and surveillance of civil air regulations to assure safety in
    aviation; (4) development of standards, rules and regulations
    governing the physical fitness of airmen as well as the
    administration of an aviation medical research program; (5)
    administration of the acquisition, research and development
    programs; (6) headquarters, administration and other staff
    offices; and (7) development, printing, and distribution of
    aeronautical charts used by the flying public.

                            COMMITTEE RECOMMENDATION

        The Committee recommends $8,192,920,000 for FAA operations,
    an increase of $480,120,000 (6.2 percent) above the level
    provided in fiscal year 2005, and $8,077,000 below the budget
    request. Within the funds provided, the Committee includes
    $150,000,000 for competitive sourcing for flight service
    stations transition costs.
        A comparison of the fiscal year 2006 budget estimate to the
    Committee recommendation by budget activity is as follows:

    ------------------------------------------------------------------------
              Budget activity             FY06 estimate     FY06 recommended
    ------------------------------------------------------------------------
    Air traffic organization..........     $6,647,305,000     $6,424,229,000
    Research and acquisition..........                (1)        222,171,000
    Flight Service Stations A-76......        150,000,000        150,000,000
    Aviation safety...................        941,742,000        951,042,000
    Commercial space transportation...         11,759,000         11,759,000
    Financial services................                (2)         50,583,000
    Human resources...................                (2)         69,943,000
    Region and center operations......                (2)        150,744,000
    Staff offices.....................        450,191,000        140,337,000
    Information services..............                (2)         36,612,000
    Account-wide adjustments..........                           -14,500,000
                                       -------------------------------------
          Total.......................      8,200,997,000     8,192,920,000
    ------------------------------------------------------------------------
    \1\ Estimate includes $222,171,000 under ``Air traffic organization''.
    \2\ Estimate includes such funds under ``Staff offices'', as follows:
      Financial services, $50,983,000; Human resources, $69,943,000; Region
      and center operations coordination, $150,744,000; Office of
      information services, $36,612,000.

                         TRUST FUND SHARE OF FAA BUDGET

        The bill derives $11,769,000,000 of the total appropriation
    from the airport and airway trust fund. The balance of the
    appropriation ($3,206,920,000) will be drawn from the general
    fund of the Treasury. Under these provisions, 79.3 percent of
    the FAA's operating costs will be borne by air travelers and
    industries using those services. The remaining 21.6 percent
    will be borne by the general taxpayer, regardless of whether
    they directly utilize FAA services.

                   STATE OF THE AIRPORT AND AIRWAY TRUST FUND

        According to Administration estimates, fiscal year 2006
    will continue the recent trend where necessary outlays for FAA
    programs outstrip the revenues from aviation users deposited
    into the airport and airway trust fund. The following table
    compares trust fund revenue to trust fund outlays for the past
    three fiscal years. As the table indicates, under current
    estimates the Federal Government is not only spending all the
    revenues coming into the trust fund, it is going beyond that,
    and spending down the cash balance. The Administration
    estimates that, at the end of fiscal year 2006, the uncommitted
    cash balance in the trust fund will be approximately
    $1,195,000,000. This represents a drop of 51 percent from the
    figure two years before.

    ----------------------------------------------------------------------------------------------------------------
                                                              Fiscal year 2004   Fiscal year 2005   Fiscal year 2006
    ----------------------------------------------------------------------------------------------------------------
    Trust fund revenue \1\.................................     $9,687,000,000    $11,092,000,000    $11,921,000,000
    Trust fund outlays.....................................     10,415,000,000     11,165,000,000     12,660,000,000
    Difference.............................................       -728,000,000        -73,000,000      -739,000,000
    ----------------------------------------------------------------------------------------------------------------
    \1\ Includes excise taxes, offsetting collections, and interest on trust fund cash balance.

        It is imperative for the agency to lower its operating
    costs and find ways to be more efficient in all its operations.
    For several years, the Committee has indicated that improvement
    was needed in the area of personnel costs. Although the
    Committee did not receive timely information on the average
    full-time equivalent (FTE) workyear cost for fiscal year 2006,
    the fiscal year 2005 level was $130,957. FAA's workyear costs
    have historically been among the highest of all federal
    agencies, and increased 22 percent over the four year period
    covering fiscal years 2001 through 2005. Average sick leave
    costs historically have been 20 percent higher than the
    government average, raising the agency's staffing costs. The
    current average yearly sick leave consumed is 11.23 days per
    FAA employee. In addition, special pays will cost the agency
    $364,015,000 in fiscal year 2006, an increase of 3 percent over
    the previous year.
        Given the severe budget constraints facing the nation, the
    Committee directs FAA to continue focusing on ways to reduce
    sick leave, to improve productivity and lessen the need for
    additional staffing resources in future years.
        The Committee notes that the agency has made some progress
    in the area of the memoranda of understanding (MOU) entered
    into with different bargaining units at the regional, local and
    national level, outside the national collective bargaining
    agreement. FAA has begun to track the number of MOUs in a
    recently established database, and has implemented a process to
    accept new or renegotiate existing MOUs. The FAA indicates it
    will renegotiate those that infringe on management's reserved
    rights under federal labor laws, are too costly, or make no
    business sense. Currently, there are 3,238 MOUs in the
    database. In fiscal year 2005, 37 new MOUs were signed, and 49
    are pending review. Given the number of total, new, and pending
    MOUs and their potential implications to the agency, the
    Committee directs the Inspector General to provide a follow-up
    to its September 12, 2003 report on FAA management and controls
    over MOUs.

                              AIR TRAFFIC SERVICES

        The bill provides $6,424,229,000 for air traffic services,
    a reduction of $223,076,000 from the budget request. These
    resources would be managed by FAA's air traffic organization.
    Recommended adjustments to the budget estimate are listed and
    described below:

                                                                      Amount
    Contract tower base program.............................     +$3,200,000
    Contract tower cost-sharing program.....................        +395,000
    Restoration of Research and Acquisitions office.........    -222,171,000
    Management of MOUs and MOAs.............................        -500,000
    BTS aviation statistics.................................      -4,000,000

        Contract tower program.--The bill includes $90,500,000, an
    increase of $3,200,000 above the budget estimate, to continue
    the contract tower base program. The President's budget
    inflated the program and did not reflect the estimate for new
    contracts being negotiated during fiscal year 2006, or costs to
    continue operations at an estimated 15 new towers entering the
    program during fiscal year 2006.
        In addition, the bill provides $7,500,000, an increase of
    $395,000 above the budget estimate, to continue the contract
    tower cost-sharing program. The Committee continues to believe
    this is a valuable program that provides safety benefits to
    small communities. Communities in this program as of May 22,
    2005 are shown below:

    ------------------------------------------------------------------------
                    Airport name                             State
    ------------------------------------------------------------------------
    King Salmon.................................  AK
    Fayetteville................................  AR
    Springdale..................................  AR
    Laughlin/Bullhead City......................  AZ
    Hawthorne...................................  CA
    Waterbury/Oxford............................  CT
    Macon.......................................  GA
    Bloomington.................................  IN
    Columbus Municipal..........................  IN
    Gary Regional...............................  IN
    Muncie/Delaware County......................  IN
    Garden City.................................  KS
    Manhattan...................................  KS
    Barkley regional (Paducah)..................  KY
    Worcester...................................  MA
    Sawyer......................................  MI
    Jefferson City..............................  MO
    Joplin Regional.............................  MO
    Concord.....................................  NC
    Kinston.....................................  NC
    Smith Reynolds (Winston-Salem)..............  NC
    Hickory Regional............................  NC
    Lebanon Municipal...........................  NH
    Lea County/Hobbs............................  NM
    Elko........................................  NV
    Oneida County...............................  NY
    Stillwater..................................  OK
    Latrobe.....................................  PA
    Williamsport/Lycoming County................  PA
    Greenville Donaldson Center.................  SC
    Grand Strand/Myrtle Beach...................  SC
    McKeller-Sipes (Jackson)....................  TN
    Walla Walla Regional........................  WA
    Morgantown..................................  WV
    ------------------------------------------------------------------------

        Restoration of research and acquisition office.--The
    Committee recommendation restores funding for a separate office
    of research and acquisition. The President's budget proposed to
    transfer this funding to the air traffic organization. Inasmuch
    as not all research and acquisition staffing is related to air
    traffic services activities, and in recognition that there are
    separate appropriations for these important activities, the
    Committee maintains the traditional budget structure.
        Management of MOUs and MOAs.--Recognizing that the
    improvements in the MOU process and oversight are likely to
    result in reduced operating costs, the Committee assumes cost
    savings of $500,000 from this effort.
        Controller staffing.--According to FAA, the agency expects
    that over the next 10 years, 73 percent of its 15,000
    controllers will become eligible to retire. Consistent with its
    10 year staffing plan, the FAA budget assumes hiring of 1,249
    new controllers. This hiring will be offset by the estimated
    loss of 654 controllers. The bill includes $24,875,000 for
    salaries, benefits, training, and ancillary support costs
    associated with a net increase of 595 in controller work force.
        The Committee agrees with FAA that a one for one
    replacement of retiring controllers is not prudent, as it would
    not assume productivity improvements from procedural changes,
    facility consolidation, or even new technology. The Committee
    believes the business-like mindset of the air traffic
    organization, as well as the unusual flexibility provided to
    the agency through personnel and procurement reform, will make
    such productivity improvements a reality and lessen the need
    for additional personnel. In addition, many controllers working
    traffic today are certified to work traffic, but are not yet
    certified professional controllers (CPC). FAA data indicates
    that new controllers are sent to an operational facility within
    four months of initial qualification training, not three years.
    FAA also has issued regulations to waive the mandatory
    retirement age of 56 for controllers. The Committee believes
    that this is a good hedge against the retirement surge in
    future years. Further, the FAA expects to complete an analysis
    in December of staffing needs for each facility based on its
    size, complexity and traffic volume. This important analysis
    will provide a more accurate estimate of needs.
        Airway facilities technical workforce.--The bill provides a
    total of $5,400,000, consistent with the budget request, to
    hire and train 258 additional maintenance technicians. A recent
    arbitration ruling upheld the contractual requirement that FAA
    maintain a minimum level (6,100) of technical staff (systems
    specialists, electronics technicians, and computer specialists)
    for maintenance of the air traffic control equipment. This
    staffing level is contained in the Professional Airways System
    Specialists (PASS) Union Contract signed in January 2000.
        Bureau of transportation statistics studies.--The Committee
    denies the $4,000,000 requested for aviation statistical
    studies to be conducted by bureau of transportation statistics.
    It is not clear to the Committee how these studies will be
    relevant to FAA's mission.
        New York/New Jersey airspace redesign.--No funds made
    available for national airspace redesign may be used to prepare
    the environmental impact statement for the redesign of the New
    York/New Jersey/Philadelphia regional airspace, or to conduct
    any work as part of the review of the redesign project
    conducted under the National Environmental Policy Act and
    related laws, as long as the FAA fails to consider noise
    mitigation.

                COMPETITIVE SOURCING FOR FLIGHT SERVICE STATIONS

        The bill provides $150,000,000 for competitive sourcing for
    flight service stations, consistent with the budget request.

                                AVIATION SAFETY

        The bill provides $951,042,000 for aviation safety, an
    increase of $47,760,666 above the fiscal year 2005 level and
    $9,300,000 above the budget request. Recommended adjustments to
    the budget are described below.

                                                                      Amount
    Additional safety inspectors and engineers..............     +$8,000,000
    Safety and security analytics...........................      +1,000,000
    Professional Aerial Application support system..........         +50,000
    Certification of upset training program.................        +250,000

        Aviation safety inspectors.--The Committee provides
    $15,103,000 for aviation safety personnel, an increase of
    $8,000,000 over the budget estimate. The budget assumes the
    office of aviation safety will attrit 151 full time equivalents
    (FTEs) during fiscal year 2005. The Committee understands that
    actual attrition appears to be 125 to 170 FTEs and that the Air
    Transportation Oversight System (ATOS) may affect the number of
    inspectors required to ensure safety.
        The Committee notes that loss of certification staff has
    negatively impacted the domestic aviation industry's ability to
    bring new products to the marketplace, and in turn affect
    global leadership and competitiveness. Therefore, the Committee
    directs that $4,000,000 of the $8,000,000 additional provided
    will result in a total FTE level in the office of aircraft
    certification of 1,189. The remaining $4,000,000 above the
    request shall be available to increase inspectors in the office
    of flight standards.
        Funds provided for the offices of aircraft certification
    and flight standards shall not be reprogrammed for any other
    purpose within or outside of the aviation safety office,
    including hiring other types of personnel within aviation
    safety. Further, this is designated as a special Congressional
    item of interest. The Committee directs the Secretary to
    provide a summary by March 1, 2006 regarding the use of the
    funds provided, including, but not limited to the total FTE in
    the offices of aircraft certification and flight standards,
    total employees, vacancies, positions under active recruitment
    to the House and Senate Committees on Appropriations.
        The Committee directs the FAA to issue a report on the
    publication and implementation of final regulations
    implementing organizational designation authority to increase
    efficiency within the office of aircraft certification.
        Safety inspections of air carriers.--In 1998, the FAA began
    implementation of the Air Transportation Oversight Systems
    (ATOS). Under this system, FAA inspectors are to use data
    analysis to focus their inspections on areas that pose the
    greatest safety risks and to shift the focus of those
    inspections in response to changing conditions within air
    carrier operations. In 1999, FAA began to transition the
    remaining air carriers to the ATOS system. In 2002, the
    Inspector General reported that ATOS program was conceptually
    sound, and suggested improvements, each of which the FAA
    implemented. The IG issued a second report on June 3, 2005 that
    again stated that the program was conceptually sound. However,
    it identified opportunities to fully implement the program to
    enhance FAA's ability to perform safety oversight of air
    carriers in transition. The IG stated that implementation of
    its recommendations will make a safe aviation system even
    stronger, and the FAA has agreed to implement the
    recommendations. This Committee directs the FAA to provide a
    report of the House and Senate Committees on Appropriation by
    March 1, 2006 on the status of implementing the IG's
    recommendations.
        Safety and security analytics project.--The recommendation
    includes $1,000,000 to initiate the safety and security
    analytics project. Current software is available to analyze
    electronic text found in descriptions of accidents, incidents,
    pilot and controller reports, and other databases to determine
    trends, patterns, and anomalies earlier than using other
    methods. This technology will help FAA meet its long-term goal
    of reducing the fatal accident rate among commercial air
    carriers by focusing on long-term trends rather than specific
    cases.
        Professional Aerial Application Support System.--The
    recommendation includes $50,000 for the National Agricultural
    Aviation Research and Education Foundation's Professional
    Aerial Application Support System.
        Certification of upset recovery training.--The Committee
    recommends $250,000 for FAA to evaluate and validate state of
    the art methods of conducting enhanced upset recovery training
    using centrifuge based flight simulator technology. Funds are
    to conduct human factors experiments at the Civil Aeormedical
    Institute to verify the benefits of this technology.
        Flight attendant fatigue.--The Committee looks forward to
    receiving the flight attendant fatigue study, as required the
    fiscal year 2005 House report 108-671, and will give due
    consideration to the report's recommendations.
        Detroit Metropolitan air traffic control tower.--In
    September 2004, mold contamination was discovered in various
    locations of the Detroit Metropolitan Air Traffic Control Tower
    during a safety inspection. The Committee urges the FAA to
    conduct thorough and complete remediation of the mold found in
    the air traffic control tower based on standard industry
    practice. The Committee directs the FAA to consider the safety
    and health of the employees that work in the tower as a
    priority during any remediation efforts.

                            RESEARCH AND ACQUISITION

        The Committee recommends $222,171,000 for the office of
    research and acquisition, the same as the budget estimate, and
    $2,385,483 above the fiscal year 2005 level.

                        COMMERCIAL SPACE TRANSPORTATION

        The Committee recommends $11,759,000 for the office of
    commercial space transportation, consistent with the budget
    request, and an increase of $248,827 above fiscal year 2005.

                                 STAFF OFFICES

        The Committee recommends $448,219,000 for staff offices, a
    reduction of $1,972,000 from the budget request. Adjustments to
    the budget are explained below.

    ------------------------------------------------------------------------
                  Office                    Adjustment        Recommended
    ------------------------------------------------------------------------
    Financial services................          -$400,000        $50,583,000
    Other staff offices...............         -1,572,000        140,337,000
    ------------------------------------------------------------------------

        Financial services.--The Committee recommends $50,583,000,
    a reduction of $400,000 from the budget request. The Committee
    recommendation does not include the requested funding for eight
    additional staff in the office of budget, the office has 17
    vacant positions. The FAA states that 8 of the vacant positions
    are being transferred to Oklahoma City, Oklahoma, and six
    positions are currently under recruitment. Therefore, the
    Committee will reevaluate its recommendation if the vacancy
    status in the near future warrants.
        Human resource management.--The Committee recommends
    $69,493,000, consistent with the budget estimate.
        Region and center operations.--The Committee recommends
    $150,774,000, consistent with the budget estimate.
        Information services.--The Committee recommends
    $36,612,000, consistent with the budget estimate.
        Other staff offices.--The Committee recommends $140,237,000
    for other staff offices. The Committee recommendation does not
    include the requested funding for eight new employees for the
    office of chief counsel and one new employee for the security
    and hazmat office, as the current vacant positions are 10 and
    38, respectively. Further, the FAA states the security and
    hazmat office is under tight hiring restrictions and plans to
    do limited hiring in the 4th quarter of fiscal year 2005. The
    Committee recommendation does not provide funding for four new
    employees in the Administrator's office. Although the office
    has just one vacancy, the budget documents did not provide any
    justification of need for this request. The Committee is
    willing to reconsider this with adequate and timely
    justification. The Committee provides an additional $100,000
    for a new FTE in the office of government and industry affairs,
    for a total funding level of $1,396,000.

                            ACCOUNT-WIDE ADJUSTMENTS

        Personnel compensation and benefits.--The recommendation
    includes a reduction of $8,000,000 in agency-wide personnel
    compensation and benefits costs due to budget constraints.
        Unfilled executive positions.--The Committee recommends a
    reduction of $5,000,000, reflecting the unfilled roster of 19
    executive positions in the agency, including 15 which were not
    under active recruitment. Past hearing records indicate that,
    at any given time, the agency is likely to have between 10 and
    20 unfilled executive positions. For an agency with 176
    executive positions, this level of openings may not be
    problematic. However, it does indicate excess costs are being
    budgeted for positions that are not likely to be filled in the
    entirety of the fiscal year.
        Working capital fund costs.--The recommendation allows
    $23,879,000 for working capital fund costs, a reduction of
    $1,500,000 below the budget estimate.

                                 BILL LANGUAGE

        Manned auxiliary flight service stations.--The bill
    includes the limitation requested in the President's budget
    prohibiting funds from being used to operate a manned auxiliary
    flight service station in the contiguous United States. The FAA
    budget includes no funding to operate such stations during
    fiscal year 2006.
        Second career training program.--Once again this year, the
    bill includes a prohibition on the use of funds for the second
    career training program. This prohibition has been in annual
    appropriations Acts for many years, and is included in the
    President's budget request.
        Sunday premium pay.--The bill retains a provision begun in
    fiscal year 1995 which prohibits the FAA from paying Sunday
    premium pay except in those cases where the individual actually
    worked on a Sunday. The statute governing Sunday premium pay (5
    U.S.C. 5546(a)) is very clear: ``An employee who performs work
    during a regularly scheduled 8-hour period of service which is
    not overtime work as defined by section 5542(a) of this title a
    part of which is performed on Sunday is entitled to . . .
    premium pay at a rate equal to 25 percent of his rate of basic
    pay.'' Disregarding the plain meaning of the statute and
    previous Comptroller General decisions, however, in Armitage v.
    United States, the Federal Circuit Court held in 1993 that
    employees need not actually perform work on a Sunday to receive
    premium pay. The FAA was required immediately to provide back
    pay totaling $37,000,000 for time scheduled but not actually
    worked between November 1986 and July 1993. Without this
    provision, the FAA would be liable for significant unfunded
    liabilities, to be financed by the agency's annual operating
    budget. This provision is identical to that in effect for
    fiscal years 1995 through 2005.
        Aviation User Fees.--The bill includes a limitation carried
    for several years prohibiting funds from being used to finalize
    or implement any new unauthorized user fees.
        Nonprofit safety standard setting organization.--The
    Committee retains a provision that allows the use of funds to
    enter into an agreement with a nonprofit standard setting
    organization to develop safety standards.
        Aeronautical charting and cartography.--The bill maintains
    the provision which prohibits funds in this Act from being used
    to conduct aeronautical charting and cartography (AC&C)
    activities through the working capital fund (WCF). Public Law
    106-181 authorized the transfer of these activities from the
    Department of Commerce to the FAA, a move which the Committee
    supported. The Committee believes this work should continue to
    be conducted by the FAA, and not administratively delegated to
    the WCF.
        Store gift cards and gift certificates.--The bill maintains
    the limitation in effect since fiscal year 2004 prohibiting FAA
    from using funds to purchase store gift cards or gift
    certificates through a government-issued credit card. This
    provision responds to abuses documented by the U.S. Government
    Accountability Office last year.

                            FACILITIES AND EQUIPMENT

                        (AIRPORT AND AIRWAY TRUST FUND)

    Appropriation, fiscal year 2005.......................    $2,519,680,000
    Budget request, fiscal year 2006......................     2,448,000,000
    Recommended in the bill...............................     3,053,000,000
    Bill compared with:
        Appropriation, fiscal year 2005...................      +533,320,000
        Budget request, fiscal year 2006..................      +605,000,000

        The Facilities and Equipment (F&E) account is the principal
    means for modernizing and improving air traffic control and
    airway facilities. The appropriation also finances major
    capital investments required by other agency programs,
    experimental research and development facilities, and other
    improvements to enhance the safety and capacity of the airspace
    system.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $3,053,000,000
    for this program, an increase of $533,320,000 (21 percent)
    above the level provided for fiscal year 2005 and 605,000,000
    above the budget estimate. The bill provides that of the total
    amount recommended, $2,618,000,000 is available for obligation
    until September 30, 2008, and $435,000,000 (the amount for
    personnel and related expenses) is available until September
    30, 2006. These obligation availabilities are consistent with
    past appropriations Acts.

                 ENGINEERING DEVELOPMENT, TEST, AND EVALUATION

        The bill includes $234,310,000 for engineering development,
    test, and evaluation activities.
        Advanced technology development and prototyping.--The
    Committee recommends $41,460,000, to be distributed as follows:
                                                                      Amount
    Runway incursion........................................      $7,100,000
    Aviation system capacity improvement....................       6,500,000
    Separation standards....................................       2,500,000
    GA/vertical flight technology...........................       1,500,000
    Operational concept validation..........................       3,000,000
    NAS requirements........................................         800,000
    Safer skies.............................................       3,400,000
    NAS safety assessment...................................       1,500,000
    GPS anti-jam technologies...............................       1,000,000
    Wake turbulence.........................................       2,000,000
    Airspace management laboratory..........................       7,000,000
    Lithium technologies to mitigate ASR....................       1,000,000
    Airport-related research................................       1,000,000
    Wind profiling and weather research Juneau..............       3,160,000
                        --------------------------------------------------------
                        ____________________________________________________
          Total.............................................      41,460,000

        Airport-related research.--Of the funds provided,
    $1,000,000 is for FAA to enter into cooperative agreements with
    non-profit research entities to conduct research to develop
    safer, more durable, more cost-effective airfield pavements.
        GPS anti-jam technology.--The Committee recommendation
    includes $1,000,000 to continue the GPS anti-jam program to
    reduce or remove GPS system vulnerabilities.
        San Francisco International Airport.--The Committee
    commends the Federal Aviation Administration for working
    cooperatively with San Francisco International Airport (SFO),
    airlines, pilots, and air traffic controllers to address policy
    and safety issues related to implementation of a precision
    runway monitoring/simultaneous offset instrument approach (PRM/
    SOIA) procedure that has resulted in additional capacity when
    weather conditions warrant.
        Safe flight 21.--The Committee recommends $42,950,000, an
    increase of $10,000,000 above the budget request. The
    additional funds are to augment ADS-B funding: $500,000 is for
    certification of a NAS-wide system; $6,000,000 is needed for
    installation of 20 pre-production 1090 ground-based stations in
    the contiguous United States; and $330,000 is for technical
    program support.

                  AIR TRAFFIC CONTROL FACILITIES AND EQUIPMENT

        The Committee recommends $1,588,286,000 for programs and
    activities designed to establish, replace, modify, or otherwise
    improve air traffic control facilities and equipment.
        Terminal automation modernization program.--The Committee
    has provided a total of $64,300,000 for the terminal automation
    modernization program, $25,000,000 over the budget request. Of
    the funds provided, an increase of $10,000,000 is for FAA to
    continue to provide updated software to the busiest facilities
    in the National Airspace System (NAS), and $15,000,000 is
    provided to replace aging equipment at Minneapolis and St.
    Louis. The budget request included replacement at Chicago and
    Denver; however, Minneapolis and St. Louis are two other large,
    critical sites identified by the DOT IG where current displays
    used by controllers are suffering from significant reliability
    problems.
        The Committee remains concerned that FAA has not yet
    provided reliable cost estimates and timetables for completing
    Standard Terminal Automation Replacement (STARS) program as
    directed. Delays and indecision with STARS are now directly
    impacting the NAS. FAA has deferred action on replacing aging
    displays at the 4 large critical sites addressed above for too
    long. According to a recent report by the Inspector General,
    these aging displays could have serious safety implications.
        The Committee is disappointed that FAA will not make a
    decision regarding how to complete terminal modernization this
    summer as expected. Rather, FAA will approve only a handful of
    sites and, once again, defer important decisions about many
    facilities that manage aircraft in terminal airspace. Assuming
    FAA can take action to replace aging displays at large sites as
    directed by the Committee and that STARS deployments continue
    at medium sites, questions and options then focus squarely on
    the small sites.
        Beyond fiscal year 2006, decisions need to be made about
    the best way to address these smaller sites. All of FAA's
    smaller sites--which number over 100--have a shortcoming with
    respect to aging displays, not the automation platform. While
    the display problems are not yet approaching the levels
    experienced by the larger sites, decisions about what to do
    cannot be postponed indefinitely. The Committee urges FAA to
    make a decision about these sites that is based on an open,
    transparent, and competitive process.
        Terminal air traffic control facilities replacement.--The
    Committee recommends $130,000,000 for the replacement of aged
    air traffic control towers.
        Instrument landing system establishment.--The
    recommendation includes $30,000,000 for establishment of
    instrument landing systems (ILSs) nationwide.
        Voice recorder replacement program.--The Committee
    recommends $7,000,000, an increase of $1,500,000 above the
    budget estimate.
        GPS approaches.--The Committee understands that the fiscal
    year 2006 budget request for the wide area augmentation system
    includes funds for the development of additional approaches and
    flight procedures at the nation's non-part 139 certified
    airports. The Committee supports this effort, and has provided
    $110,000,000 for WAAS, an increase of $10,000,000 above the
    budget request. Additional funds are provided to publish WAAS
    approaches at airports without an existing ILS approach.
        Integrated control and monitoring system.--The Committee
    recommends $3,500,000 for continued procurement and
    installation of the integrated control and monitoring system
    (ICMS). FAA is currently using ICMS in Denver, Seattle, Newark,
    Minneapolis, Salt Lake City, and Phoenix. This system would
    offer significant benefits to other operational evolution plan
    (OEP) airports as well as others with substantial landing aids
    and lighting systems. The Committee expects the agency to
    obligate these funds within six months of enactment, and to
    install such systems at airports with the highest need.
        Transponder landing system.--The recommendation includes
    $20,000,000 for the transponder landing system (TLS).
        Distance Measuring Equipment. The Committee recommends
    $4,000,000 for distance measuring equipment, an increase of
    $2,800,000 over the budget request.
        Loran-C.--The Committee recommendation includes $25,000,000
    for continued modernization of the Loran-C navigation system.
    The Committee directs that none of these funds be reprogrammed
    except through the Congressional reprogramming process.
        Houston area air traffic system (HAATS).--The Committee
    recommends $10,200,000, the same as the budget estimate for
    HAATS.
        Approach lighting system improvement program.--The
    recommendation includes $25,000,000 for the approach lighting
    system improvement program (ALSIP).
        Medium-intensity approach lighting system replacement
    (MALSR).--The Committee provides $5,000,000 for the MALSR
    nationwide program, and recommends that FAA continue to procure
    the latest MALSR equipment that has been approved for use in
    the national airspace system and in support of small business
    initiatives.

                NON-AIR TRAFFIC CONTROL FACILITIES AND EQUIPMENT

        The Committee recommends $138,100,000 for programs to
    replace, modify, or otherwise improve facilities and equipment
    not directly related to the provision of air traffic control
    services in the national airspace system (NAS).

                                MISSION SUPPORT

        The Committee recommends $266,703,100 for mission support
    activities.
        Frequency and spectrum engineering.--The Committee
    recommendation includes $8,600,000 for frequency and spectrum
    engineering, and increase of $2,500,000 over the budget
    request. The additional funds are for the NAS interference,
    detection, location, and mitigation (IDLM) project. This
    project will enable FAA to more effectively identify radio
    signals interfering with air traffic control functions and
    resolve them quickly. Over the past few years, FAA has recorded
    an average of over 1,500 interference events per year.
        Center for advanced systems development.--The
    recommendation provides $86,000,000 for the center for advanced
    systems development, an increase of $16,400,000 above the
    budget estimate, and equal to the fiscal year 2005 level.

                         PERSONNEL AND RELATED EXPENSES

        The Committee recommends $435,000,000 for personnel and
    related expenses. This appropriation finances the installation
    and commissioning of new equipment and modernization of FAA
    facilities.

                                 BILL LANGUAGE

        Capital investment plan.--The bill continues to require the
    submission of a five year capital investment plan.

                     RESEARCH, ENGINEERING, AND DEVELOPMENT

                        (AIRPORT AND AIRWAY TRUST FUND)

    Appropriation, fiscal year 2005.......................      $129,880,000
    Budget request, fiscal year 2006......................       130,000,000
    Recommended in the bill...............................       130,000,000
    Bill compared with:
        Appropriation, fiscal year 2005...................          +120,000
        Budget request, fiscal year 2006..................  ................

        This appropriation provides funding for long-term research,
    engineering and development programs to improve the air traffic
    control system and to raise the level of aviation safety, as
    authorized by the Airport and Airway Improvement Act and the
    Federal Aviation Act. The appropriation also finances the
    research, engineering and development needed to establish or
    modify federal air regulations.

                            COMMITTEE RECOMMENDATION

        The Committee recommends $130,000,000, an increase of
    $120,000 above the fiscal year 2005 enacted level and the same
    as the President's budget request.
        A table showing the fiscal year 2005 enacted level, the
    fiscal year 2006 budget estimate, and the Committee
    recommendation follows:

                      RESEARCH, ENGINEERING AND DEVELOPMENT
    ------------------------------------------------------------------------
                                         Fiscal year 2006      Committee
                  Program                    estimate         recommended
    ------------------------------------------------------------------------
    Improve Commercial Aviation Safety            $88,932            $88,932
        Fire research and safety......              6,244              6,244
        Propulsion and fuel systems...              4,049              4,049
        Advanced materials/structural               2,613              2,613
         safety.......................
        Atmospheric hazards/digital                 3,441              3,441
         system safety................
        Aging aircraft................             19,007             19,007
        Aircraft catastrophic failure               3,340              3,340
         prevention...................
        Flightdeck safety/systems                   8,181              8,181
         integration..................
        Aviation safety risk analysis.              4,932              4,932
        ATC/AF human factors..........              9,654              9,654
        Aeromedical research..........              6,889              6,889
        Weather research..............             20,582             20,582
    Improve Efficiency of the ATC                  20,396             20,396
     System...........................
        Joint program and development              18,100             18,100
         office.......................
        Wake turbulence...............              2,296              2,296
        Reduce Environmental Impacts:.             16,008             16,008
        Environment and energy........             16,008             16,008
    Mission Support...................              4,664              4,664
        System planning and resource                1,271              1,271
         mgmt.........................
        Technical laboratory                        3,393              3,393
         facilities...................
                                       -------------------------------------
            Total.....................            130,000            130,000
    ------------------------------------------------------------------------

        Joint Planning and Development Office.--The bill includes
    $18,100,000, as requested, for FAA's contribution to the multi-
    agency Joint Planning and Development Office (JPDO). This
    office involves the Departments of Defense, Commerce, and
    Homeland Security, FAA, and the National Aeronautics and Space
    Administration in developing a national plan for the
    transformation of air transportation. This plan is expected to
    establish a vision for the future air transportation system,
    set national aerospace goals, and provide a forum to engage
    industry and customer input. It is an advisory committee as
    defined in the Federal Advisory Committee Act.

                           GRANTS-IN-AID FOR AIRPORTS

                    (LIQUIDATION OF CONTRACT AUTHORIZATION)

                          (LIMITATION ON OBLIGATIONS)

                     (RESCISSION OF CONTRACT AUTHORIZATION)

                        (AIRPORT AND AIRWAY TRUST FUND)

                                           Liquidation of
                                              contract        Limitation on
                                            authorization      obligations

    Appropriation, fiscal year 2005.....    $2,800,000,000  ($3,472,000,000)
    Budget request, fiscal year 2006....     3,300,000,000   (3,000,000,000)
    Recommended in the bill.............     3,600,000,000   (3,600,000,000)
    Bill compared with:
        Appropriation, fiscal year 2005.      +800,000,000    (+128,000,000)
        Budget request, fiscal year 2006      +300,000,000    (+600,000,000)

        The bill includes a liquidating cash appropriation of
    $3,600,000,000 for grants-in-aid for airports, authorized by
    the Airport and Airway Improvement Act of 1982, as amended.
    This funding provides for liquidation of obligation incurred
    pursuant to contract authority and annual limitations on
    obligations for grants-in-aid for airport planning and
    development, noise compatibility and planning, the military
    airport program, reliever airports, airport program
    administration, and other authorized activities. This is
    $300,000,000 above the amount requested in the President's
    budget and $800,000,000 above the level enacted for fiscal year
    2005.

                           LIMITATION ON OBLIGATIONS

        The bill includes a limitation on obligations of
    $3,600,000,000 for fiscal year 2006. This is $600,000,000 above
    the President's budget request and $128,000,000 above the
    fiscal year 2005 level.

                              DISCRETIONARY GRANTS

        Within the overall obligation limitation in this bill,
    funding of $973,112,398 is available for discretionary grants
    to airports.

                                 ADMINISTRATION

        The bill provides that, within the overall obligation
    limitation, $81,346,000 is available for administration of the
    airports program by the FAA. This level includes $10,000,000
    for the airport cooperative research pilot program, as
    requested.
        Letter of Intent.--The Committee understands that the
    Panama City-Bay County International Airport Authority has
    applied for a letter of intent (LOI) for the construction of a
    new airport. According to the authority, two-thirds of the cost
    of this proposed project will be funded from non-federal
    sources. The committee encourages the FAA to promptly consider
    this application.

                                 BILL LANGUAGE

        Runway incursion prevention systems and devices.--
    Consistent with the provisions of Public Law 106-181 and the
    fiscal year 2004 and 2005 Appropriations Acts, the bill allows
    funds under this limitation to be used for airports to procure
    and install runway incursion prevention systems and devices.
        Small community air service pilot program.--The bill
    specifies that $20,000,000 of the total amount limited is
    available to continue the small community air service pilot
    program. This is the same funding level as enacted since fiscal
    year 2002.
        The Committee recommendation includes a rescission of
    contract authorization of $469,000,000. The rescission is from
    contract authority in fiscal year 2005 that ``popped-up'' above
    the obligation limitation available for that fiscal year.
    Therefore, this rescission has no effect on any grants-in-aid
    program. The proposed rescission is a result of section 107 of
    AIR-21 (P.L. 106-181). This section specified that, in the
    event appropriations for the facilities and equipment program
    were less than authorized in a given fiscal year, additional
    contract authorization would automatically be made available
    for the grants-in-aid for airports program. The Committee
    understands that the legislative committees intended to provide
    flexibility in meeting the funding guarantees, by allowing the
    Appropriations Committees to meet the guarantee by providing a
    single, combined total of funding for the F&E and grants-in-aid
    programs rather than hitting the precise authorized amounts for
    each as specified in the authorization Act. Because the
    Appropriations Committees are not provided an allocation of
    budget authority for the grants-in-aid program, section 107
    provided automatic budget authority for this purpose. The
    Committee continues to disagree with the Congressional Budget
    Offices' scoring of this provision.

           ADMINISTRATIVE PROVISIONS--FEDERAL AVIATION ADMINISTRATION

        Section 101. The Committee retains a provision requiring
    FAA to accept landing systems, lighting systems, and associated
    equipment procured by airports, subject to certain criteria.
        Section 102. The Committee retains, with modification, a
    provision limiting the number of technical workyears at the
    Center for Advanced Aviation Systems Development. The
    modification raises the limitation from 350 in fiscal year 2005
    to 375 in fiscal year 2006.
        Section 103. The Committee retains a provision prohibiting
    FAA from requiring airport sponsors to provide the agency
    ``without cost'' building construction, maintenance, utilities
    and expenses, or space in sponsor-owned buildings, except in
    the case of certain specified exceptions.
        Section 104. The Committee retains a provision prohibiting
    funds to change weight restrictions or prior permission rules
    at Teterboro Airport, Teterboro, New Jersey.
        Section 105. The Committee continues a provision extending
    the current terms and conditions of FAA's aviation insurance
    program, commonly known as the ``war risk insurance'' program,
    for one additional year, from December 31, 2005 to December 31,
    2006. Although the underlying program is authorized until March
    2008, certain provisions including premium price caps were set
    to expire at the end of this calendar year. The Committee
    recommendation preserves the status quo under this program, a
    savings of $80,000,000 from the budget estimate. Savings accrue
    because the bill's provisions result in additional revenue from
    insurance premiums, which were assumed to be zero in the budget
    estimate for fiscal year 2006.
        Section 106. The bill retains a provision the prohibits
    funds for engineering work related to an additional runway at
    Louis Armstrong International Airport in New Orleans,
    Louisiana.

                         Federal Highway Administration

        The Federal Highway Administration (FHWA) provides
    financial assistance to the states to construct and improve
    roads and highways, and provides technical assistance to other
    agencies and organizations involved in road building
    activities. Title 23 of the United States Code and other
    supporting legislation provide authority for the various
    activities of the FHWA. Funding is provided by contract
    authority, with program levels established by annual
    limitations on obligations set in Appropriations Acts.
        The most recent long-term surface transportation
    authorization act, the Transportation Equity Act for the 21st
    Century (TEA-21), expired on September 30, 2003. Since that
    time, Congress has passed several short-term extension bills
    that have provided additional contract authority for the FHWA.
    The current extension will expire on June 30, 2005. Because
    reauthorization actions have not yet been completed, the
    Committee has provided funding levels consistent with the
    House-passed surface transportation reauthorization
    legislation, the Transportation Equity Act: A Legacy for Users
    (TEA-LU), even though the actual structure of the federal
    highway program in fiscal year 2006 is unknown at this time.

                     LIMITATION ON ADMINISTRATIVE EXPENSES

    Appropriation, fiscal year 2005 \1\...................    ($343,728,000)
    Budget request, fiscal year 2006......................     (367,638,000)
    Recommended in the bill...............................     (359,529,000)
    Bill compared with:
        Appropriation, fiscal year 2005...................     (+15,801,000)
        Budget request, fiscal year 2006..................      (-8,109,000)

    \1\ Includes across the board reduction of .8 percent.

        This limitation controls spending for the salaries and
    expenses of the FHWA required to conduct and administer the
    federal-aid highway program and most other federal highway
    programs.
        The Committee recommends a limitation of $359,529,000. This
    level is sufficient to fund six additional full time equivalent
    staff years (FTEs) to oversee major projects, for an overall
    agency total of 2,430 FTEs. The recommended level assumes the
    following adjustment to the budget request:

    Reduce funding for adjustments to agency operations
        funding.............................................     -$8,109,000

        Reductions from the budget request.--The Committee reduces
    funding for the line item identified in the budget request as
    being for increased administrative funding in support of
    oversight and stewardship activities (-$8,109,000) due to
    inadequate justification. The Committee is willing to
    reconsider this reduction should the FHWA provide adequate
    documentation to support this funding increase.
        Staff for oversight of major projects.--The Committee
    provides $603,000 for 6 FTEs for oversight of major projects as
    requested by the administration. The Inspector General has
    recommended, and the Committee agrees, that the FHWA needs to
    have better oversight of its program, specifically the major
    projects. Major projects, with a total cost of $10,000,000 or
    more, have a history of significant cost overruns and schedule
    slippage, as seen again recently with reports on quality of
    work issues relating to water leaks in the Interstate 93
    tunnels of the central artery project in Boston and poor
    analysis and inadequate disclosure of cost estimates relating
    to the San Francisco-Oakland Bay Bridge in California.

                     LIMITATION ON TRANSPORTATION RESEARCH

        This limitation controls spending for the transportation
    research and technology contract programs of the FHWA. In prior
    years, it has included a number of contract programs including
    intelligent transportation systems, surface transportation
    research, technology deployment, training and education, and
    university transportation research.

    Appropriation, fiscal year 2005.......................      $462,500,000
    Budget request, fiscal year 2006 \1\..................  ................
    Recommended in the bill...............................       485,000,000
    Bill compared with:
        Appropriation, fiscal year 2005...................       +22,500,000
        Budget request, fiscal year 2006..................      +485,000,000

    \1\ An unspecified amount for fiscal year 2006 is assumed within the
      federal-aid obligation limitation.

                            COMMITTEE RECOMMENDATION

        The recommendation includes an obligation limitation for
    transportation research of $485,000,000, which is consistent
    with the House-passed surface transportation reauthorization
    legislation, TEA-LU. Because reauthorization actions have not
    yet been completed, the Committee has not provided a break out
    of the transportation research program by activities since this
    pending legislation is likely to change the structure of the
    existing program. Even so, the Committee provides a limitation
    on the research program as has been past practice.

                      BUREAU OF TRANSPORTATION STATISTICS

        Under the obligation limitation of the FHWA and within the
    sublimitation for transportation research, the Committee
    provides $33,000,000 for the Bureau of Transportation
    Statistics (BTS). As stated previously, due to the lack of a
    surface transportation authorization act for fiscal year 2006,
    the Committee has funded programs at a level that is consistent
    with the House-passed reauthorization legislation, TEA-LU.
    Also, since passage of the Norman Y. Mineta Research and
    Special Programs Improvement Act, Public Law 108-426, on
    November 30, 2004, BTS is a part of the Research and Innovative
    Technology Administration (RITA) within the department.
    Accordingly, additional information regarding BTS is included
    in the RITA section of this report.

                              FEDERAL-AID HIGHWAYS

                    (LIQUIDATION OF CONTRACT AUTHORIZATION)

                          (LIMITATION ON OBLIGATIONS)

                              (HIGHWAY TRUST FUND)

                                    Liquidation of
                                       contract           Limitation on
                                     authorization          obligation

    Appropriation, fiscal year      $35,000,000,000    \1\ ($34,422,400,000)
     2005........................
    Budget request, fiscal year      35,000,000,000         (34,700,000,000)
     2006........................
    Recommended in the bill......    36,000,000,000         (36,287,100,000)
    Bill compared to:
        Appropriation, fiscal        +1,000,000,000         (+1,864,700,000)
     year 2005...................
        Budget request, fiscal       +1,000,000,000         (+1,587,100,000)
     year 2006...................

    \1\ Includes across the board reduction of .8 percent.

        Federal-aid highways and bridges are managed through a
    federal-state partnership. States and localities maintain
    ownership and responsibility for maintenance, repair and new
    construction of roads. State highway departments have the
    authority to initiate federal-aid projects subject to FHWA
    approval of plans, specifications, and cost estimates. The
    federal government provides financial support for construction
    and repair through matching grants, the terms of which vary
    with the type of road.
        There are almost four million miles of public roads in the
    United States and approximately 577,000 bridges. The federal
    government provides grants to states to assist in financing the
    construction and preservation of about 958,000 miles (24
    percent) of these roads, which represents an extensive
    Interstate system plus key feeder and collector routes.
    Highways eligible for federal aid carry about 85 percent of
    total U.S. highway traffic.

                            COMMITTEE RECOMMENDATION

        The Committee recommends a liquidating cash appropriation
    of $36,000,000,000. This is the required amount to pay the
    outstanding obligations of the various highway programs at
    levels provided in this Act and prior appropriations Acts.
        The Committee has included bill language, as requested by
    the administration, that allows the secretary to charge and
    collect fees from the applicant for a direct loan, guaranteed
    loan, or line of credit to cover the cost of the financial and
    legal analyses performed on behalf of the department. The fees
    so collected are not subject to any obligation limitation or
    the limitation on administrative expenses set for the TIFIA
    program under section 188 of title 23, United States Code.
        The bill includes language limiting fiscal year 2006
    federal-aid highways obligations to $36,287,100,000, an
    increase of $1,864,700,000 from the fiscal year 2005 enacted
    level and an increase of $1,587,100,000 from the fiscal year
    2006 budget request.
        The Committee sets, through the annual appropriations
    process, an overall limitation on the total contract authority
    that can be obligated under the federal-aid highway program in
    a given year. The Committee also provides direction and other
    guidance regarding some of the programs that operate under this
    overall limitation. With regard to fiscal year 2006, the
    Committee finds itself in a position where the existing
    authorizing legislation has expired and no program authority
    extends into the coming fiscal year, yet the House has passed
    its version of a multi-year surface transportation
    reauthorization bill. However, many of the details regarding
    the scope and structure of the federal highway program are
    likely to be reshaped by the pending actions of the House and
    Senate conferees. Therefore, to the extent feasible, the
    Committee has honored the overall funding levels set by TEA-LU
    but has remained silent regarding the underlying program
    structure since these details are unknown at this time.
        For years, federal-aid highways funds have been made
    available to the states through a mix of apportioned programs,
    which are distributed using a formula provided in law, and
    allocated programs, which are distributed based on criteria set
    in law and allow for some discretion on the part of the
    secretary in selecting recipients. As stated previously, the
    structure of the federal-aid highway program for fiscal year
    2006 is unknown at this time due to the lack of authorizing
    legislation. However, many of the apportioned programs that
    currently exist are likely to continue and, therefore, the
    descriptions of major highway programs that follow are based on
    current law:
        National highway system.--The ISTEA of 1991 authorized--and
    the National Highway System Designation Act of 1995
    subsequently established--the National Highway System (NHS).
    This 163,000-mile road system serving major population centers,
    international border crossings, intermodal transportation
    facilities and major travel destinations, is the culmination of
    years of effort by many organizations, both public and private,
    to identify routes of national significance. It includes all
    Interstate routes, other urban and rural principal arterials,
    the defense strategic highway network, and major strategic
    highway connectors, and is estimated to carry up to 76 percent
    of commercial truck traffic and 44 percent of all vehicular
    traffic. A state may choose to transfer up to 50 percent of its
    NHS funds to the surface transportation program category. If
    the secretary approves, 100 percent may be transferred. The
    federal share of the NHS is 80 percent, with an availability
    period of four years.
        Interstate maintenance.--The 46,567-mile Dwight D.
    Eisenhower National System of Interstate and Defense Highways
    retains a separate identity within the NHS. This program
    finances projects to rehabilitate, restore, resurface and
    reconstruct the Interstate system. Reconstruction of bridges,
    interchanges, and over-crossings along existing Interstate
    routes is also an eligible activity if it does not add capacity
    other than high occupancy vehicle (HOV) and auxiliary lanes.
        All remaining federal funding to complete the initial
    construction of the Interstate system has been provided through
    previous highway legislation. TEA-21 and the extension acts
    provide flexibility to states in fully utilizing remaining
    unobligated balances of prior Interstate construction
    authorizations. States with no remaining work to complete the
    Interstate system may transfer any surplus Interstate
    construction funds to their Interstate maintenance program.
    States with remaining completion work on Interstate gaps or
    open-to-traffic segments may relinquish Interstate construction
    fund eligibility for the work and transfer the federal share of
    the cost to their Interstate maintenance program.
        Surface transportation program.--The surface transportation
    program (STP) is a flexible program that may be used by the
    states and localities for any roads (including NHS) that are
    not functionally classified as local or rural minor collectors.
    These roads are collectively referred to as federal-aid
    highways. Bridge projects paid with STP funds are not
    restricted to federal-aid highways but may be on any public
    road. Transit capital projects are also eligible under this
    program. The total funding for the STP may be augmented by the
    transfer of funds from other programs and by minimum guarantee
    funds under TEA-21 and the extension acts, which may be used as
    if they were STP funds. Once distributed to the states, STP
    funds must be used according to the following percentages: 10
    percent for safety construction; 10 percent for transportation
    enhancement; 50 percent divided among areas of over 200,000
    population and remaining areas of the state; and, 30 percent
    for any area of the state. Areas of 5,000 population or less
    are guaranteed an amount based on previous funding, and 15
    percent of the amounts reserved for these areas may be spent on
    rural minor collectors. The federal share for the STP program
    is 80 percent with a 4-year availability period.
        Bridge replacement and rehabilitation program.--This
    program provides assistance for bridges on public roads
    including a discretionary set-aside for high cost bridges and
    for the seismic retrofit of bridges. Fifty percent of a state's
    bridge funds may be transferred to the NHS or the STP, but the
    amount of any such transfer is deducted from national bridge
    needs used in the program's apportionment formula for the
    following year.
        Congestion mitigation and air quality improvement
    program.--The congestion mitigation and air quality improvement
    (CMAQ) program provides funds to states to improve air quality
    in non-attainment and maintenance areas. A wide range of
    transportation activities are eligible, provided DOT, after
    consultation with EPA, determines they are likely to help meet
    national ambient air quality standards. TEA-21 provides greater
    flexibility to engage public-private partnerships, and expands
    and clarifies eligibilities to include programs to reduce
    extreme cold starts, maintenance areas, and particulate matter
    (PM-10) nonattainment and maintenance areas. If a state has no
    non-attainment or maintenance areas, the funds may be used as
    if they were STP funds.
        On-road and off-road demonstration projects may be
    appropriate candidates for funding under the CMAQ program. Both
    sectors are critical for satisfying the purposes of the CMAQ
    program, including reducing regional emissions and verifying
    new mobile source control techniques.
        Federal lands highways.--This program provides funding
    through four major categories--Indian reservation roads,
    parkways and park roads, public lands highways (which
    incorporates the previous forest highways category), and
    federally-owned public roads providing access to or within the
    National Wildlife Refuge System. TEA-21 also established a new
    program for improving deficient bridges on Indian reservation
    roads.
        Minimum guarantee.--Under TEA-21 and the extension acts,
    after the computation of funds for major federal-aid programs,
    additional funds are distributed to ensure that each state
    receives an additional amount based on equity considerations.
    This minimum guarantee provision ensures that each state will
    have a return of 90.5 percent on its share of contributions to
    the highway account of the Highway Trust Fund. To achieve the
    minimum guarantee each fiscal year, $2.8 billion nationally is
    available to the states as though they are STP funds (except
    that requirements related to set-asides for transportation
    enhancements, safety, and sub-state allocations do not apply),
    and any remaining amounts are distributed among core highway
    programs.
        Appalachian development highway system.--This program makes
    funds available to construct highways and access roads under
    section 201 of the Appalachian Regional Development Act of
    1965. Under TEA-21 and the extension acts, funding is
    authorized at $450,000,000 for each of fiscal years 1999-2004;
    is available until expended; and distributed based on the
    latest available cost-to-complete estimate.
        Emergency relief.--This program provides for the repair and
    reconstruction of federal-aid highways and federally-owned
    roads which have suffered serious damage as the result of
    natural disasters or catastrophic failures. Emergency relief
    (ER) funds can be used only for emergency repairs to restore
    essential highway traffic, to minimize the extent of damage
    resulting from a natural disaster or catastrophic failure, or
    to protect the remaining facility and make permanent repairs.
    If ER funds are exhausted, the Secretary of Transportation may
    borrow funds from other highway programs.

           ADMINISTRATIVE PROVISIONS--FEDERAL HIGHWAY ADMINISTRATION

        Section 110. The Committee includes a provision that
    distributes obligation authority among federal-aid highways
    programs.
        Section 111. The Committee continues a provision that
    credits funds received by the Bureau of Transportation
    Statistics to the federal-aid highways account.
        Section 112. The Committee continues a provision allowing
    Nevada and Arizona to reimburse debt service payment on the
    Bypass Bridge at Hoover Dam project with future apportionments,
    in accordance with title 23, United States Code.

                  Federal Motor Carrier Safety Administration

        The primary mission of the Federal Motor Carrier Safety
    Administration (FMCSA) is to improve the safety of commercial
    vehicle operations on our nation's highways. To accomplish this
    mission, the FMCSA is focused on reducing the number and
    severity of large truck crashes. Agency resources and
    activities contribute to ensuring safety in commercial vehicle
    operations through enforcement, including the use of stronger
    enforcement measures against safety violators; expedited safety
    regulation; technology innovation; improvements in information
    systems; training; and improvements to commercial driver's
    license testing, record keeping, and sanctions. To accomplish
    these activities, the FMCSA works closely with federal, state,
    and local enforcement agencies, the motor carrier industry,
    highway safety organizations, and individual citizens. In
    addition, the FMCSA has the responsibility to ensure that
    Mexican commercial vehicles, entering the U.S. in accordance
    with the North American Free Trade Agreement (NAFTA), meet all
    U.S. hazardous material and safety regulations.
        The FMCSA's scope was expanded in fiscal year 2003 by the
    U.S.A. Patriot Act (P.L. 107-56), which called for new security
    measures. In addition, beginning in fiscal year 2002,
    Appropriations Acts (P.L. 107-87, P.L. 108-7, P.L. 108-199, and
    P.L. 108-447) have funded border enforcement and safety related
    activities associated with implementation of NAFTA, and
    activities associated with permitting of hazardous materials.
        Since the most recent long-term surface transportation
    authorization act, the Transportation Equity Act for the 21st
    Century (TEA-21), expired on September 30, 2003, Congress has
    passed several short-term extension bills that have provided
    additional contract authority for the FMCSA. The current
    extension will expire on June 30, 2005. Because reauthorization
    actions have not yet been completed, the Committee has provided
    funding levels consistent with the House-passed surface
    transportation reauthorization legislation, the Transportation
    Equity Act: A Legacy for Users (TEA-LU).

                  MOTOR CARRIER SAFETY OPERATIONS AND PROGRAMS

                          (LIMITATION ON OBLIGATIONS)

                    (LIQUIDATION OF CONTRACT AUTHORIZATION)

                              (HIGHWAY TRUST FUND)

                         (INCLUDING TRANSFER OF FUNDS)

                                           Liquidation of
                                              contract        Limitation on
                                            authorization      obligations

    Appropriation, fiscal year 2005.....      $257,547,000  \1\ ($255,487,00
                                                                          0)
    Budget request, fiscal year 2006....       233,000,000     (233,000,000)
    Recommended in the bill.............       215,000,000     (215,000,000)
    Bill compared to:
        Appropriation, fiscal year 2005.       -42,547,000     (-40,487,000)
        Budget request, fiscal year 2006       -18,000,000     (-18,000,000)

    \1\ Includes across the board reduction of .8 percent.

        This limitation controls spending for salaries and
    operating expenses and for motor carrier research by the FMCSA.
    In recent years, the Committee has provided funding for a few
    grant programs under this administrative account because no
    flexibility existed to fund these priorities elsewhere.
    However, consistent with TEA-LU, the Committee is providing a
    limitation solely on the administrative expenses of the agency,
    including research and technology activities, in fiscal year
    2006.

                            COMMITTEE RECOMMENDATION

        The Committee recommends $215,000,000 in liquidating cash
    for the operations and research activities of the FMCSA.

                           LIMITATION ON OBLIGATIONS

        The Committee recommends a limitation on obligations of
    $215,000,000 for the operating expenses of and motor carrier
    safety research by the FMCSA. This is a level consistent with
    the House-passed surface transportation reauthorization
    legislation, TEA-LU. This funding level represents a reduction
    of $40,487,000 below the fiscal year 2005 enacted level.
    However, the fiscal year 2005 level included funding for
    several grant programs that are not being continued in this
    account in fiscal year 2006 because it is expected that these
    grant programs will be funded under the national motor carrier
    safety program in the next surface transportation
    authorization.
        The recommended level assumes the following adjustments
    from the $205,051,000 that was identified in the FMCSA's budget
    justification as being the fiscal year 2005 enacted level for
    operations and programs, excluding grant programs:

    Adjustments to base...................................       +$5,682,000
    New quality assurance and regulatory evaluation               +1,800,000
     programs.............................................
    Promote transportation specialists in field to GS-13..          +838,000
    Additional funding to address backlog of enforcement            +500,000
     cases................................................
    Increased funding to research and technology programs.          +941,000
    Increased funding for information management                  +1,188,000
     activities...........................................
    Undistributed reduction...............................        -1,000,000

        A discussion of program funding levels follow:
        Adjustments to base.--The Committee provides an increase of
    $5,682,000 above the fiscal year 2005 enacted level for
    required pay raises, GSA rent, working capital fund
    adjustments, and inflation, as was requested in the budget
    submission.
        Quality assurance and regulatory evaluation programs.--The
    Committee provides $1,800,000 for three additional federal full
    time equivalent staff years (FTEs) and the associated contract
    support for a new quality assurance program and a new
    regulatory evaluation program.
        Field transportation specialists.--Consistent with the
    budget request, the Committee provides an additional $838,000
    to promote a large number of transportation specialists in the
    field to GS-13 commensurate with the level of responsibility
    that these program managers are performing.
        Backlog of enforcement cases.--The FMCSA requested a
    $500,000 increase to address the agency's backlog of
    enforcement cases. The Committee provides this funding as
    requested.
        Research and technology.--The Committee provides $9,500,000
    for research and technology, a reduction of $1,453,000 below
    the budget request and an increase of $941,000 above the fiscal
    year 2005 level.
        New entrant program.--This Committee provided funding for
    this program for the first time in fiscal year 2004 and, in a
    little over one year, over 40 states have implemented a state
    new entrant program. Consistent with this success, the
    Committee continues the program structure that limits federal
    responsibility to program oversight and to respond to the rare
    case where a state does not have the authority or ability to
    implement the program by managing third party contracts.
    Therefore, the Committee denies the request for the additional
    $13,700,000 and the 20 additional FTEs to implement an expanded
    federal role in the new entrant program.
        Information management.--The Committee provides $42,370,000
    for information management, an increase of $1,188,000 over last
    year, but $3,334,000 below the budget request.
        Education and outreach.--The Committee does not support the
    FMCSA's proposed reduction to the agency's outreach and
    education programs. As such, the Committee directs that no less
    than $2,500,000 of the funds provided be used for outreach and
    education. Within the funding provided, $500,000 is provided to
    continue a program to increase the commercial motor vehicle
    safety belt usage rate; $100,000 is provided to continue the
    ``safety is good business'' program; $150,000 is provided to
    continue the motorcoach transportation service selection, and
    $250,000 is provided for the household goods outreach program.
    This funding level also includes $100,000 for the ``share the
    road safely'' program that had previously been funded under the
    National Highway Traffic Safety Administration (NHTSA). In
    addition, the Committee directs the NHTSA to return to the
    FMCSA the one FTE that had been detailed from FMCSA to help
    oversee the program.
        For each of these initiatives and all other outreach
    initiatives, the FMCSA must first develop a goal, message, and
    coherent and explicit program strategy that clearly and
    directly link FMCSA's outreach and education program
    initiatives to each program's goal. The FMCSA shall provide
    information regarding the goals and strategies to the House and
    Senate Committees on Appropriations by February 10, 2006. The
    Committee encourages the FMCSA to combine its outreach efforts
    with other interactions it has with motor carrier companies,
    such as security sensitivity visits, compliance reviews, and
    safety audits.
        Consistent with last year, the Committee provides $375,000
    for FMCSA's telephone hotline.
        Commercial vehicle analysis reporting system.--The
    Committee directs that up to $6,800,000 of the funds provided
    shall be available for the FMCSA to make grants to, or enter
    into contracts with, states, local government, or other persons
    for the commercial vehicle analysis reporting system.
        Undistributed reduction.--An undistributed reduction of
    $1,000,000 is also included to control the growth of the
    agency's administrative expenses and to keep the fiscal year
    2006 funding level within the levels set by TEA-LU. All other
    requested increases not specifically cited in this report as
    being approved are denied.

                     NATIONAL MOTOR CARRIER SAFETY PROGRAM

                    (LIQUIDATION OF CONTRACT AUTHORIZATION)

                          (LIMITATION ON OBLIGATIONS)

                              (HIGHWAY TRUST FUND)

                                           Liquidation of
                                              contract        Limitation on
                                            authorization      obligations

    Appropriation, fiscal year 2005.....      $190,000,000  \1\ ($188,480,00
                                                                          0)
    Budget request, fiscal year 2006....       232,000,000     (232,000,000)
    Recommended in the bill.............       286,000,000     (286,000,000)
    Bill compared to:
        Appropriation, fiscal year 2005.       +96,000,000     (+97,520,000)
        Budget request, fiscal year 2006       +54,000,000    (+54,000,000)

    \1\ Includes across the board reduction of .8 percent.

        The FMCSA's national motor carrier safety program (NMCSP)
    was authorized by TEA-21, amended by the Motor Carrier Safety
    Improvement Act of 1999, and continued into 2004 and 2005 by a
    series of short-term extension acts. Under the previous
    authorizing legislation, this program consisted of two major
    areas: the motor carrier safety assistance program (MCSAP) and
    the information systems and strategic safety initiatives
    (ISSSI) program. MCSAP provides grants and project funding to
    states to develop and implement national programs for the
    uniform enforcement of federal and state rules and regulations
    concerning motor carrier safety. The major objective of this
    program is to reduce the number and severity of accidents
    involving commercial motor vehicles. Grants are made to
    qualified states for the development of programs to enforce the
    federal motor carrier safety and hazardous materials
    regulations and the Commercial Motor Vehicle Safety Act of
    1986. The basic program is targeted at roadside vehicle safety
    inspections of both interstate and intrastate commercial motor
    vehicle traffic. ISSSI provides funds to develop and enhance
    data-related motor carrier programs.

                            COMMITTEE RECOMMENDATION

        The Committee recommends $286,000,000 in liquidating cash
    for this program.

                           LIMITATION ON OBLIGATIONS

        The Committee recommends a limitation on obligations of
    $286,000,000 for the national motor carrier safety program.
    This is a level consistent with the House-passed surface
    transportation reauthorization legislation, TEA-LU, and is
    $97,520,000 greater than the fiscal year 2005 enacted level.
        Because reauthorization actions have not yet been
    completed, the Committee has not provided a break out of the
    various motor carrier safety grant programs that would be
    covered by this obligation limitation since this pending
    legislation is likely to change the structure of the existing
    program. Even so, the Committee provides a limitation on the
    total amount of contract authority that can be obligated in
    fiscal year 2006, regardless of the form these grant programs
    take.
        Under TEA-LU, the Secretary has the discretion to deduct up
    to $15,000,000 of the funds made available for motor carrier
    safety grants and use it for audits of new entrant motor
    carriers. The interim final rule for the new entrant safety
    assurance process was published on May 13, 2002, with an
    effective date of January 2003. This rule requires all new
    entrants to pass a safety audit within the first 18 months of
    operations in order to receive permanent DOT registration. The
    Committee notes the positive results that have been gained so
    far by these audits. Therefore, should a reauthorization bill
    get signed into law that provides this discretionary authority
    to the secretary, the Committee strongly urges the department
    to use this authority to fund the new entrant program to the
    full extent allowable.
        In addition, the secretary is encouraged to use the funding
    designated for high priority activities and projects under
    section 31104(f)(2)(A) of title 49, United States Code, to
    supplement the new entrant audit program as necessary to ensure
    that this program is sufficiently funded to conduct all of the
    required audits. Furthermore, although it is the intent of the
    Congress that this program be a grant program to the states,
    the secretary may withhold such funds from a state or local
    government that is unable to use government employees to
    conduct new entrant motor carrier audits and may instead use
    contract audits in those jurisdictions.

     ADMINISTRATIVE PROVISION--FEDERAL MOTOR CARRIER SAFETY ADMINISTRATION

        Section 120. The Committee continues a provision subjecting
    funds appropriated in this Act to the terms and conditions of
    section 350 of Public Law 107-87, including a requirement that
    the secretary submit a report on Mexico-domiciled motor
    carriers.

                 National Highway Traffic Safety Administration

        The National Highway Traffic Safety Administration (NHTSA)
    was established as a separate organizational entity in the
    Department of Transportation in March 1970. It succeeded the
    National Highway Safety Bureau, which previously had
    administered traffic and highway safety functions as an
    organizational unit of the Federal Highway Administration.
        The majority of NHTSA's programs are currently authorized
    under extensions to the Transportation Equity Act for the 21st
    Century (TEA-21). In the absence of a long-term surface
    transportation reauthorization, the Committee recommends
    funding NHTSA programs under the levels prescribed in the
    House-passed version of H.R. 3, the Transportation Equity Act:
    A Legacy for Users.
        Budget justifications.--The Committee directs NHTSA in its
    fiscal year 2007 budget justification to provide information on
    all proposed changes from the prior year, including the
    rationale as to why particular programs are proposed for
    reductions or elimination. Additionally, to the maximum extent
    possible, NHTSA should include enacted fiscal year funding data
    along with request data so that the Committee can make
    appropriate comparisons.

                            OPERATIONS AND RESEARCH

    Appropriation, fiscal year 2005 \1\...................      $231,122,000
    Budget request, fiscal year 2006......................       231,367,000
    Recommended in the bill...............................       231,367,000
    Bill compared with:
        Appropriation, fiscal year 2005...................          +245,000
        Budget request, fiscal year 2006..................  ................

    \1\ Includes transfer of funds from FHWA.

        The Committee provides a total of $231,367,000 for
    operations and research, to be distributed as follows:

    ------------------------------------------------------------------------
                                                                 Amount
    ------------------------------------------------------------------------
    Salaries and benefits.................................       $71,852,000
    Travel................................................         1,336,000
    Operating expenses....................................        25,698,000
    Contract programs:
        Safety performance (rulemaking)...................        11,518,000
        Safety assurance (enforcement)....................        18,351,000
        Highway safety programs...........................        46,345,000
        Research and analysis.............................        72,086,000
        General administration............................           681,000
    Grant administration reimbursements...................       -16,500,000
                                                           -----------------
          Total...........................................       231,367,000
    ------------------------------------------------------------------------

        The recommendation makes the following adjustments to the
    budget request:

    Reduce transfer of funding for grant administration...         +$765,000
    Deny funding for harmonization of vehicle safety                -200,000
     standards............................................
    Reduce funding for hydrogen fuel cell program.........          -850,000
    Reduce travel.........................................           -70,000
    Increase funding for the National EMS Information               +355,000
     System...............................................

                               OPERATING EXPENSES

        Administrative grant reimbursements.--The Committee
    recommends $16,500,000 for transfers for grant administration,
    which is $324,000 above the fiscal year 2005 level and $765,000
    below the request. The Committee does not believe a 6.4 percent
    increase, as proposed by NHTSA, is necessary in this tight
    budget climate and believes investing limited resources
    directly to improve highway safety is a much higher priority.
        Harmonization of vehicle safety standards and workforce
    planning and development.--Due to budget constraints, funding
    is not provided for the harmonization of vehicle safety
    standards initiative.

                            HIGHWAY SAFETY PROGRAMS

        Emergency medical services (EMS).--The Committee is aware
    that national databases exist that support police and fire
    services; however, there has been no similar national
    repository for EMS data. EMS systems vary in their ability to
    collect and use patient and EMS systems data to improve
    emergency medical response and patient care in post-crash
    events. Therefore, the Committee supported the inclusion of
    additional funds in fiscal year 2005 to support a National EMS
    Resource Center to assist state and local EMS systems in data
    collection and analysis. The Resource and Technical Assistance
    Center will provide technical assistance, including site
    visits, to state emergency medical services offices and local
    EMS agencies in converting to the National EMS Information
    System (NEMSIS). The next steps in NEMSIS development will be
    the full implementation of a national EMS database, full
    operation of a NEMSIS Technical Assistance Center, and eventual
    support of state data collection systems. The Committee has
    provided an additional $355,000 over the budget request to
    support continuation costs of the NEMSIS Technical Assistance
    Center. The Committee encourages NHSTA to continue towards full
    implementation of NEMSIS, which will provide data entry and
    reporting capabilities at the local EMS level, data collection
    and reporting capabilities at the state level, and a national
    EMS database to be housed at NHTSA with a Technical Assistance
    Center to assist EMS systems in data collection and use. One of
    the ultimate goals of NEMSIS is to reduce post-crash death and
    disability by developing a better understanding of current EMS
    response and performance in order that scarce resources can be
    best directed towards critical training, equipment, planning
    and other needs that can best improve patient outcomes.
        Next generation enhanced 9-1-1.--The Committee encourages
    NHTSA to develop a pilot project of ``Next Generation''
    Enhanced 9-1-1 (E9-1-1) activities, as defined by the ENHANCE
    911 Act of 2004. In particular, the Committee is interested in
    Internet Protocol (IP) based E9-1-1 demonstration projects. The
    Committee expects that any demonstration would comply with
    industry standards as adopted by the National Emergency Number
    Association's Future Path Plan and Next Generation E9-1-1
    capabilities.

                             RESEARCH AND ANALYSIS

        Vehicle Identification Numbers.--The Committee is aware
    that NHTSA and several states have been discussing collecting
    vehicle identification numbers (VIN) at crash sites. Such data
    would be extremely valuable to determine what safety
    technologies were on the vehicles involved in a crash and
    understand how those countermeasures performed. Therefore, the
    Committee strongly encourages NHTSA and state governments to
    collect and report these data in order to inform future crash
    avoidance and automobile safety technology development.
        Data collection and analysis.--The Committee supports
    NHTSA's data collection and analysis activities, particularly
    as they relate to using sound science as the basis for any
    regulatory action. The Committee is concerned, however, that
    NHTSA may be duplicating effort in the multiple databases it
    maintains. Therefore, the Committee directs NHTSA to conduct a
    comprehensive review of data collection activities and report
    back to the Committees on Appropriations of the House of
    Representatives and Senate by March 31, 2006 with respect to
    the specific types of data collected in each of its data
    collection and analysis programs and any opportunities to
    consolidate these data into a system or systems that require
    less annual operating support yet retain critical safety
    information.
        National Motor Vehicle Crash Causation Survey.--The
    Committee provides $10,000,000 for the NMVCCS, which is an
    increase of $3,056,000 above the fiscal year 2005 enacted
    level. The Committee strongly supports efforts to identify the
    factors that contributed to automobile accidents so that
    research and development activities for crash avoidance and
    crash survivability technologies can proceed quickly. The
    Committee urges NHTSA to move forward as expeditiously as
    possible in order to speed potential life-saving technologies
    to market.

                            OPERATIONS AND RESEARCH

    Appropriation, fiscal year 2005.......................  ................
    Budget request, fiscal year 2006......................  ................
    Recommended in the bill...............................      $152,367,000
    Bill compared with:
      Appropriation, fiscal year 2005.....................      +152,367,000
      Budget request, fiscal year 2006....................      +152,367,000

        The Committee recommends a total of $152,367,000 for
    operations and research funding from the general fund. The
    administration proposed to fund these programs through the
    highway trust fund, and therefore requested no general funds.

                            operations and research

                    (LIQUIDATION OF CONTRACT AUTHORIZATION)

                          (LIMITATION ON OBLIGATIONS)

                              (HIGHWAY TRUST FUND)

    Appropriation, fiscal year 2005.......................    ($227,551,000)
    Budget request, fiscal year 2006......................     (227,367,000)
    Recommended in the bill...............................      (75,000,000)
    Bill compared with:
      Appropriation, fiscal year 2005.....................    (-149,820,000)
      Budget request, fiscal year 2006....................    (-152,551,000)

    \1\ Includes transfer from FHWA.

                            COMMITTEE RECOMMENDATION

        The Committee recommends $75,000,000 from the highway trust
    fund for authorized activities associated with operations and
    research.

                            national driver register

                    (LIQUIDATION OF CONTRACT AUTHORIZATION)

                          (LIMITATION ON OBLIGATIONS)

                              (HIGHWAY TRUST FUND)

    Appropriation, fiscal year 2005.......................      ($3,571,000)
    Budget request, fiscal year 2006......................       (4,000,000)
    Recommended in the bill...............................       (4,000,000)
    Bill compared to:
      Appropriation, fiscal year 2005.....................        (+429,000)
      Budget request, fiscal year 2006....................  ................

        The National Driver Register facilitates the interstate
    exchange of driver licenses due to concerns regarding problem
    drivers whose licenses to drive have been suspended or revoked
    for cause. The Committee recommends $4,000,000 from the highway
    trust fund for operations and research activities associated
    with the national driver register, of which $3,075,000 is for
    program activities and $925,000 is for salaries and benefits.

                         highway traffic safety grants

                    (LIQUIDATION OF CONTRACT AUTHORIZATION)

                          (LIMITATION ON OBLIGATIONS)

                              (HIGHWAY TRUST FUND)

                                           Liquidation of
                                              contract        Limitation on
                                            authorization      obligations

    Appropriation, fiscal year 2005.....      $225,000,000    ($223,200,000)
    Budget request, fiscal year 2006....       465,000,000     (465,000,000)
    Recommended in the bill.............       551,000,000     (551,000,000)
    Bill compared to:
        Appropriation, fiscal year 2005.      +326,000,000    (+327,800,000)
        Budget request, fiscal year 2006       +86,000,000     (+86,000,000)

        TEA-LU reauthorizes three state grant programs: the highway
    safety program, the alcohol-impaired driving countermeasures
    grant program, and the occupant protection incentive grant
    program, and authorizes for the first time an additional four
    state grant programs: state traffic safety information systems
    improvement grants, high visibility enforcement grants, child
    safety and booster seat grants and motorcyclist safety grants.
    The Committee recommends $551,000,000 in liquidating cash,
    which is the same as the amount authorized in the House-passed
    version of TEA-LU.

                           LIMITATION ON OBLIGATIONS

        As in past years, the bill includes language limiting the
    obligations to be incurred under the various highway traffic
    safety grants programs. These obligations are currently set in
    extensions to TEA-21. For fiscal year 2006, the Committee has
    provided limitations on obligations at the level prescribed in
    the House-passed version of TEA-LU. The bill includes separate
    obligation limitations with the following funding allocations:

    Highway safety programs...............................    ($229,000,000)
    Occupant protection incentive grants..................     (136,000,000)
    Alcohol-impaired driving countermeasures..............     (129,000,000)
    State traffic safety information systems improvements.      (30,000,000)
    High visibility enforcement...........................      (15,000,000)
    Child safety and booster seat grants..................       (6,000,000)
    Motorcyclist safety...................................       (6,000,000)

        The fiscal year 2006 budget submission reflected NHTSA's
    reauthorization proposal, which restructures the highway safety
    grant programs into a consolidated program, funded at the
    combined level of TEA-21 sections 402, 410, 405, 411, 2003(b),
    and 163 and 157 of title 23 of the United States Code. The
    Committee has provided funding as envisioned in the House-
    passed version of TEA-LU.
        Bill language.--The bill maintains language that prohibits
    the use of funds for construction, rehabilitation, and
    remodeling costs or for office furnishings or fixtures for
    state, local, or private buildings or structures. Language is
    also continued that limits the amount available for technical
    assistance to $500,000 under section 410.

           ADMINISTRATIVE PROVISION--NATIONAL HIGHWAY TRAFFIC SAFETY
                                 ADMINISTRATION

        Section 130. The Committee continues a provision that
    allows states to use funds provided under section 402 of title
    23, U.S.C., to produce and place highway safety public service
    messages in television, radio, cinema, print media, and on the
    internet. The provision provides that any state that uses funds
    for such purposes must submit a report to the Secretary, who in
    turn is directed to submit the reports to the House and Senate
    Committees on Appropriations. The provision allocates
    $10,000,000 for national paid media to support national safety
    belt mobilizations under section 405 and $20,000,000 under
    section 410 to include: $6,000,000 to support state impaired
    driving mobilization enforcement efforts and $14,000,000 for
    paid media to support national law enforcement mobilizations on
    impaired driving.

                        Federal Railroad Administration

        The Federal Railroad Administration (FRA) is responsible
    for planning, developing, and administering programs to achieve
    safe operating and mechanical practices in the railroad
    industry, as well as managing the high-speed ground
    transportation program. Grants to the National Railroad
    Passenger Corporation (Amtrak) and other financial assistance
    programs serving to rehabilitate and improve the railroad
    industry's physical plant are also administered by FRA.

                             SAFETY AND OPERATIONS

    Appropriation, fiscal year 2005.......................      $138,651,000
    Budget request, fiscal year 2006......................       145,949,000
    Recommended in the bill...............................       145,949,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        +7,298,000
        Budget request, fiscal year 2006..................  ................

        The safety and operations account provides support for
    FRA's rail safety and passenger and freight program activities.
    Funding also supports salaries and expenses and other operating
    costs related to FRA staff and programs.

                            COMMITTEE RECOMMENDATION

        A total of $145,949,000 is recommended for safety and
    operations, which is a $7,298,000 increase above the fiscal
    year 2005 enacted level. Of this total, $13,856,000 is
    available until expended.
        Push-pull operations.--The Committee is concerned about the
    safety of passenger rail operations with the use of cab cars as
    the forward car in the push-pull mode or self-propelled
    locomotives with passenger seating (MU locomotives),
    particularly after the tragic and deadly Metrolink train
    derailment in Glendale, California in January. Previous studies
    have noted that occupants of the relatively exposed cab car,
    including the engineer, are vulnerable to serious injury or
    fatality in the event of a collision with either a road vehicle
    at a grade crossing or with another train. Current railroad
    requirements must be reassessed to ensure the safety of
    passengers occupying the leading car. In light of these
    concerns, the Committee directs FRA to conduct a definitive
    study regarding the use of cab cars during the push-pull mode
    or in MU locomotives as compared to standard passenger
    locomotives as leading vehicles in passenger trains, to include
    a review of the following: the relative frequency and severity
    of accidents, with special emphasis placed on the differences
    associated with derailments; the efficacy of crashworthiness
    features; and a review of the FRA's Emergency Order No. 20 and
    its effectiveness in increasing passenger safety. FRA should
    report to the House and Senate Committees on Appropriations no
    later than June 1, 2006.

                       RAILROAD RESEARCH AND DEVELOPMENT

    Appropriation, fiscal year 2005.......................       $35,737,000
    Budget request, fiscal year 2006......................        46,325,000
    Recommended in the bill...............................        26,325,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        -9,412,000
        Budget request, fiscal year 2006..................       -20,000,000

        The railroad research and development appropriation
    finances FRA contract research activities. The objectives of
    this program are to reduce the frequency and severity of
    railroad accidents and to provide technical support for rail
    safety rulemaking and enforcement activities.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $26,325,000, a
    reduction of $20,000,000 below the request as a result of
    denying funds without prejudice for the Nationwide Differential
    GPS program.

                RAILROAD REHABILITATION AND IMPROVEMENT PROGRAM

        TEA-21 established the Railroad Rehabilitation and
    Improvement Financing loan and loan guarantee program. The
    aggregate unpaid principal amounts of the obligations may not
    exceed $3,500,000,000 at any one time. Not less than
    $1,000,000,000 is reserved for projects primarily benefiting
    freight railroads other than class I carriers. The funding may
    be used: (1) to acquire, improve, or rehabilitate intermodal or
    rail equipment or facilities, including track, components of
    track, bridges, yards, buildings, or shops; (2) to refinance
    existing debt; or (3) to develop and establish new intermodal
    or railroad facilities. No Federal appropriation is required,
    since a non-Federal infrastructure partner may contribute the
    subsidy amount required by the Credit Reform Act of 1990 in the
    form of a credit risk premium. Once received, statutorily
    established investigation charges are immediately available for
    appraisals and necessary determinations and findings.
        The Committee continues bill language specifying that no
    new direct loans or loan guarantee commitments may be made
    using federal funds for the payment of any credit premium
    amount during fiscal year 2006.

                        NEXT GENERATION HIGH-SPEED RAIL

    Appropriation, fiscal year 2005.......................       $19,493,000
    Budget request, fiscal year 2006......................  ................
    Recommended in the bill...............................        10,165,000
    Bill compared with:
        Appropriation, fiscal year 2005...................       -19,493,000
        Budget request, fiscal year 2006..................  ................

                            COMMITTEE RECOMMENDATION

        The Committee recommends $10,165,000 for the next
    generation high-speed rail program, which is $10,165,000 above
    the budget request and $9,328,000 below the fiscal year 2005
    enacted level. The Committee points out to the administration
    that this program provides value beyond passenger rail, and
    disputes the notion that until the future of passenger rail
    service is decided, no funding should be spent on high-speed
    rail planning or research and development. Total funding is
    allocated as follows:

    Train control systems:
        North American joint PTC project..................        $7,000,000
    Grade crossing and innovative structures..............         2,165,000
    Corridor planning.....................................         1,000,000
                                                           -----------------
          Total...........................................        10,165,000

        Train control systems.--The Committee is encouraged by the
    promise of positive train control technologies and the impact
    they can have on reducing rail accidents--particularly
    accidents that are caused by human error. Accordingly, the
    Committee recommends $7,000,000 to continue the North American
    joint PTC project, and encourages FRA to implement field
    demonstrations that validate the use of PTC technologies.

             GRANTS TO THE NATIONAL RAILROAD PASSENGER CORPORATION

                                    (AMTRAK)

    Appropriation, fiscal year 2005.......................    $1,207,264,000
    Budget request, fiscal year 2006......................       360,000,000
    Recommended in the bill...............................       550,000,000
    Bill compared to:
        Appropriation, fiscal year 2005...................      -657,264,000
        Budget request, fiscal year 2006..................      +190,000,000

                            COMMITTEE RECOMMENDATION

        The Committee recommends $550,000,000 for grants to Amtrak
    in fiscal year 2006, which represents an increase of
    $190,000,000 over the budget request. The administration asked
    for $360,000,000, but reserved the entire sum for transfer to
    the Surface Transportation Board to carry out directed service
    for commuter rail operations in the event Amtrak is forced to
    cease operations, thereby providing no funding for Amtrak
    operations on the grounds that passenger rail service in the
    United States requires reform. While the Committee agrees that
    reform is critical, it is also equally important to sustain
    passenger rail service in geographic regions where this service
    is viable. Accordingly, the Committee recommendation
    specifically prohibits Federal funding for the eighteen Amtrak
    routes that operate at subsidy levels of greater than or equal
    to $30 per passenger, based on fully-allocated profit/loss data
    that excludes depreciation and interest. The Committee notes
    that the 24 routes that remain eligible for Federal funding
    under the recommendation (those requiring less than a $30
    subsidy per passenger) represented more than 80 percent of
    Amtrak's passengers in fiscal year 2004.
        Capital grants.--The Committee is concerned that, whenever
    Amtrak has faced fiscal crises, it has chosen to defer critical
    maintenance and capital investments rather than scale back
    other areas to fund these needs. Accordingly, the Committee
    includes bill language providing $50,000,000 to the Secretary
    of Transportation to make repairs to the Northeast Corridor.
    The Secretary is directed to consult with Amtrak to determine
    which capital projects are the most critical to further efforts
    to bring the Northeast Corridor into a state of good repair.
        Monthly reporting requirements.--The Committee directs
    Amtrak to continue submitting monthly performance reports
    containing the same information as has been presented
    throughout fiscal year 2005.
        Annual operating plan.--The Committee expects that Amtrak
    will submit its annual operations report as required by 49 USC
    24315.

           ADMINISTRATIVE PROVISION--FEDERAL RAILROAD ADMINISTRATION

        Section 140. The Committee includes an administrative
    provision permitting FRA, in conjunction with Operation
    Lifesaver, to conduct public awareness activities with respect
    to grade crossing safety.

                         Federal Transit Administration

        The Federal Transit Administration (FTA) was established as
    a component of the Department of Transportation on July 1,
    1968, when most of the functions and programs under the Federal
    Transit Act (78 Stat. 302; 49 U.S.C. 1601 et seq.) were
    transferred from the Department of Housing and Urban
    Development. Known as the Urban Mass Transportation
    Administration until enactment of the Intermodal Surface
    Transportation Efficiency Act of 1991, the Federal Transit
    Administration administers federal financial assistance
    programs for planning, developing, and improving comprehensive
    mass transportation systems in both urban and non-urban areas.
        Much of the funding for the Federal Transit Administration
    is provided by annual limitations on obligations provided in
    appropriations Acts. However, direct appropriations are
    required for specific portions of programs.
        Authorization for the programs funded by the Federal
    Transit Administration is contained in the Transportation
    Equity Act for the 21st Century (TEA-21). TEA-21 also amended
    the Budget Enforcement Act (which expired on September 30,
    2003) by creating the mass transit budget category which funds
    transit formula grants, transit capital projects, Federal
    Transit Administration administrative expenses, transit
    planning and research, and university transportation center
    expenses. The seventh extension of TEA-21 will expire on June
    30, 2005. Because the conference of the surface transportation
    reauthorization legislation has not yet concluded, the
    Committee's recommendation continues the account and program
    structure of TEA-21 and prior year appropriations Act, but
    meets the overall funding level contained in H.R. 3 as passed
    by the House of Representatives on March 10, 2005.

                            ADMINISTRATIVE EXPENSES

                                                                                    Limitation on
                                                                  Appropriation      obligations      Total funding
                                                                 (general fund)     (trust fund)
    Appropriation, fiscal year 2005...........................        $9,704,000       $67,704,000       $77,367,000
    Budget request, fiscal year 2006..........................        83,500,000                 0        83,500,000
    Recommended in the bill...................................        12,000,000        68,000,000        80,000,000
    Bill compared to:
        Appropriation, fiscal year 2005.......................        +2,328,000          +296,000        +2,624,000
        Budget request, fiscal year 2006......................       -71,500,000       +68,000,000        -3,500,000

                            COMMITTEE RECOMMENDATION

        The Committee recommends a total appropriation of
    $80,000,000 for FTA's salaries and expenses, an increase of
    $2,624,000 over the fiscal year 2005 funding level and
    $3,500,000 below the budget request. The recommendation is
    comprised of an appropriation of $12,000,000 from the general
    fund and $68,000,000 from limitations on obligations from the
    mass transit account of the highway trust fund. Funds for the
    National Transit Database are assumed under ``Forumla grants''
    as proposed in the budget request.
        The administrator is authorized to transfer funding between
    offices. Any transfers totaling more than three percent of the
    initial appropriation from this account must be approved by the
    House and Senate Committees on Appropriations. No new positions
    have been approved.
        E-gov.--The Committee denies funding for e-gov initiatives
    based in the office of the secretary for lack of adequate
    justification.
        The Committee's recommendation includes funds for only
    those information technology initiatives that directly support
    FTA and its grant applications. No funds are provided for
    transfer to another agency in support of other e-gov
    initiatives.
        Budget justifications.--It is important for the department
    and the Congress to have the ability to analyze the needs of
    FTA on an office-by-office basis consistent with other DOT
    agencies. The Committee directs FTA to submit its fiscal year
    2006 congressional budget justification for administrative
    expenses itemized by office, with material detailing salaries
    and expenses, staffing increases, and programmatic initiatives
    of each office. The initiatives for each should be clearly
    stated, and include a justification for each new position or
    full-time equivalent, should FTA seek any next year. In
    addition, FTA is directed to continue providing a breakout of
    staff resources spent per new fixed guideway project in the
    fiscal year 2006 budget request.
        Transit security.--The Committee reiterates its direction
    as stated in House Report 108-671 regarding transit security.
    The Committee's position remains that the Department of
    Homeland Security is the lead agency on transportation
    security. As stated on the TSA website: ``All new improvements
    will be coordinated with the Transportation Security
    Administration (TSA) which has overall responsibility for
    transportation security among all modes of transportation,
    including rail and transit lines.'' As such, the Committee
    recommends the same number of FTE for the security office as
    provided in fiscal year 2005.
        Project management oversight activities.--The Committee
    directs that FTA continue reporting monthly to the House and
    Senate Committees on Appropriations on the status of each
    project with a full funding grant agreement.
        To further support oversight activities, the bill continues
    a provision requiring FTA to reimburse the Department of
    Transportation Office of Inspector General $2,000,000 for costs
    associated with audits and investigations of transit-related
    issues, including reviews of new fixed guideway systems. This
    reimbursement must come from funds available for the execution
    of contracts. Over the past several years, the IG has provided
    critical oversight of numerous major transit projects and FTA
    activities, which the Committee has found invaluable. The
    Committee directs the Inspector General will continue such
    oversight activities in fiscal year 2006.
        Full funding grant agreements (FFGAs).--TEA-21, as amended,
    requires that the FTA notify the House and Senate Committees on
    Appropriations as well as the House Committee on Transportation
    and Infrastructure and the Senate Committee on Banking sixty
    days before executing a full funding grant agreement. In its
    notification to the House and Senate Committees on
    Appropriations, the Committee directs the FTA to include the
    following: (1) a copy of the proposed full funding grant
    agreement; (2) the total and annual federal appropriations
    required for that project; (3) yearly and total federal
    appropriations that can be reasonably planned or anticipated
    for future FFGAs for each fiscal year through 2006; (4) a
    detailed analysis of annual commitments for current and
    anticipated FFGAs against the program authorization; (5) an
    evaluation of whether the alternatives analysis made by the
    applicant fully assessed all viable alternatives; (6) a
    financial analysis of the project's cost and sponsor's ability
    to finance the project, which shall be conducted by an
    independent examiner and which shall include an assessment of
    the capital cost estimate and the finance plan; (7) the source
    and security of all public-and private-sector financial
    instruments; (8) the project's operating plan, which enumerates
    the project's future revenue and ridership forecasts; and (9) a
    listing of all planned contingencies and possible risks
    associated with the project.
        The Committee also directs FTA to inform the House and
    Senate Committees on Appropriations in writing thirty days
    before approving schedule, scope, or budget changes to any full
    funding grant agreement. Correspondence relating to changes
    shall include any budget revisions or program changes that
    materially alter the project as originally stipulated in the
    full funding grant agreement, including any proposed change in
    rail car procurements.

                                 FORMULA GRANTS

                                                                                  Limitation on
                                                              Appropriation    obligations (trust     Total funding
                                                             (general fund)           fund)
    Appropriation, fiscal year 2005.......................      $499,990,000        $3,499,928,000    $3,999,918,000
    Budget request, fiscal year 2006 \1\..................                 0         6,315,000,000     6,315,000,000
    Recommended in the bill...............................       662,550,000         3,754,450,000     4,417,000,000
    Bill compared to:
        Appropriation, fiscal year 2005...................      +162,560,000          +162,560,000      +417,082,000
        Budget request, fiscal year 2006..................      +662,550,000        -2,380,550,000    -1,718,000,000

    \1\ The request proposed combining formula, planning, capital, JARC, and research grants into two accounts
      titled ``Formula Grants and Research'' and ``Major Capital Investment Grants.'' The Committee recommendation
      instead provides for separate accounts.

        Formula grants to states and local agencies funded under
    the Federal Transit Administration fall into four categories:
    urbanized area formula grants; clean fuels formula grants;
    formula grants and loans for special needs of elderly
    individuals and individuals with disabilities; and formula
    grants for other than urbanized areas. In addition, set asides
    of formula funds are directed to a grant program for intercity
    bus operators to finance Americans with Disabilities Act (ADA)
    accessibility costs and the Alaska Railroad for improvements to
    its passenger operations.

                            COMMITTEE RECOMMENDATION

        The accompanying bill provides $4,417,000,000 for transit
    formula grants. The recommended level is comprised of an
    appropriation of $662,550,000 from the general fund and
    $3,754,450,000 from limitations on obligations from the mass
    transit account of the highway trust fund.
        Major project alternatives analysis and preliminary
    engineering and design.--Funds in the bill can be used, among
    other activities, for alternatives analysis and preliminary
    engineering and design (PE&D) of new rail systems, extensions,
    or busways. The Committee continues to assert that local
    project sponsors of new rail systems, extensions, or busways
    must use these formula funds (or those provided under section
    5303 metropolitan planning) for alternatives analysis and
    preliminary engineering and design activities rather than seek
    section 5309 discretionary set-asides. Moreover, the Committee
    expects FTA, when evaluating the local financial commitment of
    a given project, to consider the extent to which the project's
    sponsors have used these formula grant apportionments for
    alternatives analysis and PE&D activities of proposed new
    systems.

                       UNIVERSITY TRANSPORTATION RESEARCH

                                                                                    Limitation on
                                                                  Appropriation      obligations      Total funding
                                                                 (general fund)     (trust fund)
    Appropriation, fiscal year 2005...........................          $744,000        $5,208,000        $5,952,000
    Budget request, fiscal year 2006 \1\......................                 0                 0                 0
    Recommended in the bill...................................         1,200,000         6,800,000         8,000,000
    Bill compared to:
        Appropriation, fiscal year 2005.......................          +456,000        +1,592,000        +2,048,000
        Budget request, fiscal year 2006......................        +1,200,000        +6,800,000        +8,000,000

    \1\ The request proposed combining formula, planning, capital, JARC, and research grants into two accounts
      titled ``Formula Grants and Research'' and ``Major Capital Investment Grants.'' The Committee recommendation
      instead provides for separate accounts.

        Grants for university transportation research are awarded
    to non-profit institutions of higher learning by the Research
    and Innovative Technology Administration (RITA) using funds
    appropriated to FTA. This program focuses on the transfer of
    knowledge relevant to national, state, and local transit
    issues, and builds the professional capacity of the
    transportation workforce.

                            COMMITTEE RECOMMENDATION

        The accompanying bill provides a total of $8,000,000 for
    university transportation research. The recommended program
    level is comprised of an appropriation of $1,200,000 from the
    general fund and $6,800,000 from a limitation on obligations
    from the mass transit account of the highway trust fund.

                         TRANSIT PLANNING AND RESEARCH

                                                                                    Limitation on
                                                                  Appropriation      obligations      Total funding
                                                                 (general fund)     (trust fund)
    Appropriation, fiscal year 2005...........................       $15,872,000      $111,104,000      $126,976,000
    Budget request, fiscal year 2006 \1\......................                 0                 0                 0
    Recommended in the bill...................................        24,049,000       136,276,000       160,325,000
    Bill compared to:
        Appropriation, fiscal year 2005.......................        +8,177,000       +25,172,000       +33,349,000
        Budget request, fiscal year 2006......................       +24,049,000      +136,276,000     +160,325,000

    \1\ The request proposed combining formula, planning, capital, JARC, and research grants into two accounts
      titled ``Formula Grants and Research'' and ``Major Capital Investment Grants.'' The Committee recommendation
      instead provides for separate accounts.

        The transit planning and research program provides
    financial assistance to states for statewide planning and other
    technical assistance activities, planning support for
    metropolitan areas, nonurbanized areas, research, development
    and demonstration projects, fellowships for training in the
    public transportation field, university research, and human
    resource development.

                            COMMITTEE RECOMMENDATION

        The accompanying bill provides $160,325,000 for transit
    planning and research. The recommended level is comprised of an
    appropriation of $24,049,000 from the general fund and
    $136,276,000 from limitations on obligations from the mass
    transit account of the highway trust fund. Of the funds
    provided, the Committee expects $103,325,000 to go toward
    planning activities and assistance and $57,000,000 to research
    and development initiatives.

                          TRUST FUND SHARE OF EXPENSES

                    (LIQUIDATION OF CONTRACT AUTHORIZATION)

                              (HIGHWAY TRUST FUND)

    Appropriation, fiscal year 2005.......................    $6,744,500,000
    Budget request, fiscal year 2006......................       690,000,000
    Recommended in the bill...............................     7,209,700,000
    Bill compared with:
        Appropriation, fiscal year 2005...................      +465,200,000
        Budget request, fiscal year 2006..................    +6,520,000,000

        This account provides the portion of funds for each of
    FTA's programs derived from the Mass Transit Account of the
    Highway Trust Fund. For fiscal year 2006, the Committee has
    provided $7,209,700,000 for liquidation of contract
    authorization.

                           CAPITAL INVESTMENT GRANTS

                                                                                    Limitation on
                                                                  Appropriation      obligations      Total funding
                                                                 (general fund)     (trust fund)
    Appropriation, fiscal year 2005...........................      $414,014,000    $2,898,100,000    $3,312,114,000
    Budget request, fiscal year 2006 \1\......................       872,800,000       689,700,000     1,562,500,000
    Recommended in the bill...................................       546,251,000     3,095,424,000     3,641,675,000
    Bill compared to:
        Appropriation, fiscal year 2005.......................      +132,237,000      +197,324,000      +329,561,000
        Budget request, fiscal year 2006......................      -326,549,000    +2,405,724,000    +2,079,175,000

    \1\ The request proposed combining formula, planning, capital, JARC, and research grants into two accounts title
      ``Formula Grants and Research'' and ``Major Capital Investment Grants.'' The Committee recommendation instead
      provides for separate accounts.

        The transit capital investment program provides capital
    assistance for three primary activities: new and replacement
    buses and facilities; modernizing existing rail systems; and
    new fixed guideway systems. Eligible recipients for capital
    investment funds are public bodies and agencies (transit
    authorities and other state and local public bodies and
    agencies thereof) including states, municipalities, other
    political subdivisions of states; public agencies and
    instrumentalities of one or more states; and certain public
    corporations, boards, and commissions established under state
    law. Buses and bus facilities funds are allocated on a
    discretionary basis, as are new starts funds. Fixed guideway
    modernization funds are allocated by statutory formula to
    urbanized areas with rail systems that have been in operation
    for at least seven years.

                            COMMITTEE RECOMMENDATION

        The accompanying bill provides a total of $3,641,675,000 to
    be available for capital investment grants, of which
    $546,251,000 is from the general fund and $3,095,424,000 from a
    limitation on obligations from the mass transit account of the
    highway trust fund.
        Funds provided for capital investment grants shall be
    distributed as follows:

                                                                      Amount
    Bus and bus facilities..................................    $693,335,000
    Fixed guideway modernization............................   1,386,670,000
    New starts..............................................   1,561,670,000
                        --------------------------------------------------------
                        ____________________________________________________
        Total...............................................   3,641,675,000

        Parallel electric hybrid buses.--The Committee is strongly
    supportive of efforts to encourage local transit authorities to
    adopt clean bus technology such as the parallel electric-diesel
    hybrid system into their fleets. The Committee notes that the
    FTA has been unable to meet its target of increasing the number
    of low emission buses by two percent per year in three of the
    last four years for which data is available. Because of the
    significantly lower emissions and potentially reduced operating
    expenses of parallel electric diesel hybrids systems, and the
    benefits those outcomes would realize, the Committee will be
    looking for ways to increase incentives to help local transit
    authorities adopt this technology more rapidly than the current
    two percent per year target. The Committee expects the FTA to
    provide a report by March 1, 2006 on how best to increase the
    rate of introducing new low emission technology, including
    parallel electric-diesel hybrids.
        New starts rating and evaluation process.--Transit use is
    important in a number of the nation's major urban centers.
    However, many cities have built or are building systems that
    are overpriced or underutilized. The Committee has encouraged
    FTA to continually and consistently improve the evaluation and
    decision-making process for the new starts process. All parties
    involved, including FTA, the Congress, and local transit
    agencies, need to be able to assess projects based on a capable
    ratings and evaluation system, and the FTA needs to be more
    adept at weeding out projects that do not relieve the most
    congestion, move the most people and have the greatest cost-
    benefit ratio. The Committee is encouraged by the recent
    proposed changes to the new starts program earlier this year.
    The proposed change to the cost effectiveness rating and the
    adjustment of the cost effectiveness breakpoints shows an
    effort by FTA to manage the exploding expectations for new
    starts funding.
        As local communities develop their own preferred
    transportation alternatives, the Committee continues its
    insistance that these communities use Federal standards and
    procedures in their local analysis if they are to seek federal
    transportation funding through the new starts program. Further,
    FTA shall not approve the entry of any project into preliminary
    engineering if the project's alternatives analysis does not
    clearly espouse the federal new starts criteria and standards,
    by showing that the project will attract and move more riders,
    at lower cost, than other transportation alternatives.
        New starts report.--The Committee is satisfied with the
    timely submission of FTA's fiscal year 2006 annual report on
    new starts projects. To ensure that this report continues to be
    submitted on time, the Committee has continued bill language
    included in fiscal year 2006 that requires FTA to submit its
    annual new starts report with the initial submission of the
    President's budget request.
        The Committee directs FTA not to reallocate funds provided
    in prior year appropriations Acts for the Department of
    Transportation as follows:
        Bus and Bus Facilities:
              Lawrence Transit System Transfer Center, KS (Fiscal
            year 2003)
              Minneapolis Downtown Circulator, MN (Fiscal year
            2003)
              Minneapolis, 63rd Ave. Park and Ride, MN (Fiscal year
            2003)
              Northwest Corridor Busway, MN (Fiscal year 2003)
              Jefferson Transit Facilities, WA (Fiscal year 2003)
              Attleboro Intermodal Mixed-Use Garage Facility
            (Fiscal year 2003)
              Tompkins Consolidated Transit Center, NY (Fiscal year
            2002)
              Jamaica Intermodal Facilities, NY (Fiscal year 2002)
              Macon Terminal Intermodal Station, GA (Fiscal year
            2003)
              Intermodal/Inland Port Terminal, SC (Fiscal year
            2003)
        New Starts:
              Northstar Corridor, MN (Fiscal year 2003)
              Dulles Corridor Project, VA (Fiscal year 2002)
              Lowell, MA--Nashua, NH Commuter Rail (Fiscal year
            2003)

                     JOB ACCESS AND REVERSE COMMUTE GRANTS

                                                                                      Limitation on
                                                                     Appropriation     obligations     Total funding
                                                                    (general fund)    (trust fund)
    Appropriation, fiscal year 2005...............................     $15,500,000      $108,500,000    $124,000,000
    Budget request, fiscal year 2006 \1\..........................               0                 0               0
    Recommended in the bill.......................................      26,250,000       148,750,000     175,000,000
    Bill compared to:
        Appropriation, fiscal year 2005...........................     +10,750,000       +40,250,000     +51,000,000
        Budget request, fiscal year 2006..........................     +26,250,000      +148,750,000    +175,000,000

    \1\ The request proposed combining formula, planning, capital, JARC, and research grants into two accounts
      titled ``Formula Grants and Research'' and ``Major Capital Investment Grants.'' The Committee recommendation
      instead provides for separate accounts.

        The purpose of the job access and reverse commute grant
    program is to develop services designed to transport welfare
    recipients and low income individuals to and from jobs and to
    develop transportation services for residents of urban centers
    and rural and suburban areas to suburban employment
    opportunities.

                            COMMITTEE RECOMMENDATION

        For fiscal year 2006, the job access and reverse commute
    (JARC) grants program is funded at a total level of
    $175,000,000, with $26,250,000 derived from the general fund
    and $148,750,000 derived from the mass transit account of the
    highway trust fund.

           ADMINISTRATIVE PROVISIONS--FEDERAL TRANSIT ADMINISTRATION

        Section 150. The Committee continues the provision that
    exempts previously made transit obligations from limitations on
    obligations.
        Section 151. The Committee continues the provision that
    allows unobligated funds for projects under ``Capital
    Investment Grants'' in prior year appropriations Acts to be
    used in this fiscal year.
        Section 152. The Committee continues the provision that
    allows for the transfer of prior year appropriations from older
    accounts to be merged into new accounts with similar, current
    activities.

                 Saint Lawrence Seaway Development Corporation

                           OPERATIONS AND MAINTENANCE

                        (HARBOR MAINTENANCE TRUST FUND)

    Appropriation, fiscal year 2005.......................       $15,773,000
    Budget request, fiscal year 2006......................         8,000,000
    Recommended in the bill...............................        16,284,000
    Bill compared with:
        Appropriation, fiscal year 2005...................          +511,000
        Budget request, fiscal year 2006..................        +8,284,000

        The Saint Lawrence Seaway Development Corporation (the
    Corporation) is a wholly owned Government corporation
    established by the St. Lawrence Seaway Act of May 13, 1954. The
    corporation is responsible for the operation, maintenance, and
    development of the United States portion of the St. Lawrence
    Seaway between Montreal and Lake Erie, including the two Seaway
    locks located in Massena, NY and vessel traffic control in
    areas of the St. Lawrence River and Lake Ontario. The mission
    of the corporation is to serve the United States intermodal and
    international transportation system by improving the operation
    and maintenance of a safe, secure, reliable, efficient, and
    environmentally responsible deep-draft waterway. The
    corporation's major priorities include: safety, reliability,
    trade development, management accountability, and bi-national
    collaboration with its Canadian counterpart.

                            COMMITTEE RECOMMENDATION

        The Committee recommends a total appropriation of
    $16,284,000 to fund the operations and maintenance of the
    corporation, $8,284,000 above the budget request and $511,000
    above the fiscal year 2005 enacted level. Appropriations from
    the harbor maintenance trust fund and revenues from non-federal
    sources finance the operation and maintenance of the Seaway for
    which the corporation is responsible. The Committee denies the
    request to re-establish tolls on the U.S. portion of the Saint
    Lawrence Seaway. Bill language to authorize the toll provision
    was not provided to the Committee in time to review or identify
    ramifications of the toll proposal. In addition, the Seaway
    provided insufficient justification to support the provision
    and did not address the Committees concerns regarding ``double-
    taxation and other factors affecting the industry on the
    Seaway.''

                            Maritime Administration

        The Maritime Administration (MARAD) is responsible for
    programs that strengthen the U.S. maritime industry in support
    of the Nation's security and economic needs, as authorized by
    the Merchant Marine Act, 1936. MARAD's mission is to promote
    the development and maintenance of an adequate, well-balanced
    United States merchant marine, sufficient to carry the Nation's
    domestic waterborne commerce and a substantial portion of its
    waterborne foreign commerce, and capable of serving as a naval
    and military auxiliary in time of war or national emergency.
    MARAD, working with the Department of Defense (DOD), helps
    provide a seamless, time-phased transition from peacetime to
    wartime operations, while balancing the defense and commercial
    elements of the maritime transportation system. MARAD also
    manages the maritime security program, the voluntary intermodal
    sealift agreement program and the ready reserve force, which
    assure DOD access to commercial and strategic sealift and
    associated intermodal capability. Further, MARAD's education
    and training programs through the U.S. Merchant Marine Academy
    and six state maritime schools help provide skilled U.S.
    merchant marine officers.

                           maritime security program

    Appropriation, fiscal year 2005.......................       $97,910,400
    Budget request, fiscal year 2006......................       156,000,000
    Recommended in the bill...............................       156,000,000
    Bill compared with:
        Appropriation, fiscal year 2005...................       +58,089,600
        Budget request, fiscal year 2006..................  ................

                            COMMITTEE RECOMMENDATION

        The Committee recommends $156,000,000 for the Maritime
    Security Program (MSP), consistent with the budget request.
    This recommendation provides funding directly to MARAD and
    assumes that MARAD will continue to administer the program with
    support and consultation of the Department of Defense. The
    purpose of the MSP is to maintain and preserve a U.S. flag
    merchant fleet to serve the national security needs of the
    United States. The MSP provides direct payments to U.S. flag
    ship operators engaged in U.S.-foreign trade. Participating
    operators are required to keep the vessels in active commercial
    service and are required to provide intermodal sealift support
    to the Department of Defense in times of war or national
    emergency. The Committee's recommendation provides funding
    consistent with the National Defense Authorization Act, which
    increased the authorization for ships under the MSP from 47 to
    60, and the payment per ship from $2,100,000 to $2,600,000 per
    year. In January, MARAD awarded 60 MSP operating agreements for
    the most commercially viable and militarily useful ships. The
    recommendation will provide the necessary resources for the
    operation of the MSP at the authorized level through fiscal
    year 2006.

                            OPERATIONS AND TRAINING

    Appropriation, fiscal year 2005.......................      $108,602,176
    Budget request, fiscal year 2006......................       113,650,000
    Recommended in the bill...............................       112,336,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        +3,733,824
        Budget request, fiscal year 2006..................        -1,314,000

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $112,336,000
    to fund programs under the operations and training account of
    MARAD, an increase of $3,733,824 above the fiscal year 2005
    appropriation and $1,314,000 below the budget request. Funds
    provided for this account are to be distributed as follows:

    ------------------------------------------------------------------------
                                                                   House
        Activity  (all figures in $000's)      FY06 Request     recommended
    ------------------------------------------------------------------------
    U.S. Merchant Marine Academy:
        Salary and Benefits.................         $23,750         $23,750
        Midshipmen Program..................           7,032           7,032
        Instructional Program...............           5,746           5,746
        Program Direction and Administration           2,945           2,945
        Maintenance, Repair, & Operating               7,381           7,381
         Requirements.......................
        Capital Improvements................          17,000          17,000
                                             -------------------------------
          Subtotal, USMMA...................          63,854          63,854
                                             ===============================
    State Maritime Schools:
        Student Incentive Payments..........           1,200           1,200
        Direct Scholarship Payments.........           1,200           1,800
        Scholarship Maintenance and Repair..           8,211           8,211
                                             -------------------------------
          Subtotal, State Maritime Academies          10,611          11,211
                                             ===============================
    MARAD Operations:
        Base Operations.....................          34,029          34,029
        Information technology, electronic             5,062           3,149
         government.........................
        GSA Space Increase..................              93              93
                                             -------------------------------
          Subtotal, MARAD Operations........          39,185          37,271
                                             ===============================
          Subtotal, Operations and Training.         113,650         112,336
    ------------------------------------------------------------------------

        Under the United States Merchant Marine Academy, the
    Committee recommendation includes $63,854,000 for the operation
    and maintenance of the U.S. Merchant Marine Academy (USMMA),
    consistent with the budget request. The $8,387,000 increase
    from the fiscal year 2005 level is to fund infrastructure
    improvements, technological improvements, and simulation
    techniques that will efficiently provide the training necessary
    to meet current and future standards imposed by Federal and
    other organizational entities, and to ensure continued academic
    accreditation.
        Under the State Maritime Schools, the Committee
    recommendation includes $11,211,000 for the six State Maritime
    Schools (SMS), an increase of $600,000 over the budget request.
    These additional funds are provided for cadet training and
    facilities to result in $300,000 per school in direct
    scholarship payments.
        The Committee provides $37,271,000 for MARAD operations, a
    reduction of $1,914,000 from the budget request. Within the
    operations total, the Committee provides the fiscal year 2005
    level of $3,050,000 for IT related activities and $99,000 for
    electronic government, consistent with the level provided in
    fiscal year 2005. This is below the request level due to lack
    of sufficient justification. The Committee will reconsider the
    funding level if it receives adequate justification in a timely
    manner. The Committee notes that it never received adequate
    justification last year regarding MARAD's IT funding request.

                                 SHIP DISPOSAL

    Appropriation, fiscal year 2005.......................       $21,443,072
    Budget request, fiscal year 2006......................        21,000,000
    Recommended in the bill...............................        21,000,000
    Bill compared with:
        Appropriation, fiscal year 2005...................          -443,072
        Budget request, fiscal year 2006..................  ................

        MARAD serves as the federal government's disposal agent for
    government-owned merchant vessels weighing 1,500 gross tons or
    more. The ship disposal program provides resources to dispose
    of obsolete merchant-type vessels in the National Defense
    Reserve Fleet (NDRF). The Maritime Administration is required
    by law to dispose of its obsolete inventory by the end of 2006;
    however, MARAD has acknowledged that it will not meet this
    statutory deadline. There are currently 124 vessels located in
    three fleet sites in the NDRF awaiting disposal. In fiscal year
    2004, MARAD removed fifteen ships for disposal and projects
    that it will remove another 15 in 2005 and 13 in 2006. These
    vessels pose a significant environmental threat due to the
    presence of hazardous substances such as asbestos and solid and
    liquid polychlorinated biphenyls (PCBs). The list includes a
    nuclear ship, the SAVANNAH, which contains remnants of a
    nuclear reactor.

                            COMMITTEE RECOMMENDATION

        The Committee recommends $21,000,000 for ship disposal,
    consistent with the budget request and $443,072 below the
    fiscal year 2005 enacted level. Within the funds provided for
    ship disposal, the Committee provides $3,000,000 to
    decommission the SAVANNAH.
        In a March 2005 report, GAO identified management
    weaknesses in MARAD's ship disposal program. The report stated
    that MARAD lacked the vision needed to sustain a long-term
    effort, and that its managers are not in a position to make
    sound decisions concerning the ship disposal program. The
    Committee requires MARAD to strengthen the management of the
    ship disposal program, including the development of a
    comprehensive integrated approach. The Committee continues to
    encourage MARAD to pursue various disposal options, including
    international disposal. Further, the Committee notes the recent
    increased competitiveness of domestic scrapping operations and
    encourages MARAD to promote aggressive competition among the
    domestic scrapping industry and international disposal
    facilities for funds appropriated for disposal.

                  MARITIME GUARANTEED LOAN (TITLE XI) PROGRAM

    Appropriation, fiscal year 2005.......................        $4,725,888
    Budget request, fiscal year 2006......................         3,526,000
    Recommended in the bill...............................         3,526,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        -1,199,888
        Budget request, fiscal year 2006..................  ................

        The maritime guaranteed loan account as provided for by
    title XI of the Merchant Marine Act of 1936, provides for
    guaranteed loans for purchasers of ships from the U.S.
    shipbuilding industry and for modernization of U.S. shipyards.
    Funds for administrative expenses for the Title XI program are
    appropriated to this account, and then transferred by
    reimbursement to operations and training to be obligated and
    outlayed.
        As required by the Federal Credit Reform Act of 1990, this
    account includes the subsidy costs associated with the loan
    guarantee commitments made in 1992 and beyond (including
    modifications of direct loans or loan guarantees that resulted
    from obligations or commitments in any year), as well as
    administrative expenses of this program. The subsidy amounts
    are estimated on a net present value basis; the administrative
    expenses are estimated on a cash basis.

                            COMMITTEE RECOMMENDATION

        The Committee recommends $3,526,000, consistent with the
    budget request. This is $1,199,888 below the fiscal year 2005
    level.

                               SHIP CONSTRUCTION

                                  (RESCISSION)

    Appropriation, fiscal year 2005.......................       -$1,979,000
    Budget request, fiscal year 2006......................  ................
    Recommended in the bill...............................        -2,071,280
    Bill compared with:
        Appropriation, fiscal year 2005...................           -92,280
        Budget request, fiscal year 2006..................        -2,071,280

        The Committee rescinds $2,071,280 from the ship
    construction account. This account is currently inactive except
    for determinations regarding the use of vessels built under the
    program, final settlement of open contracts, and closing of
    financial accounts.

               NATIONAL DEFENSE TANK VESSEL CONSTRUCTION PROGRAM

    Appropriation, fiscal year 2005.......................       $74,400,000
    Budget request, fiscal year 2006......................       -74,400,000
    Recommended in the bill...............................  ................
    Bill compared with:
        Appropriation, fiscal year 2005...................      -148,800,000
        Budget request, fiscal year 2006..................       +74,400,000

        The fiscal year 2004 Defense Authorization Act (Public Law
    108-136) authorized the National Defense Tank Vessel
    Construction Program to provide financial assistance for the
    construction of five privately owned product tank vessels to be
    available for national defense purposes in time of war or
    national emergency. The purpose of the program is to revitalize
    commercial tank ship construction in the U.S. The Department of
    Defense has stated that a critical deficiency exists for U.S.
    flag tankers capable of carrying multiple petroleum cargoes.
    Vessels constructed under this program will operate as part of
    the Maritime security fleet.

                            COMMITTEE RECOMMENDATION

        The Committee provides no new funding for this program.
    Further, it does not rescind funding provided in fiscal year
    2005, nor does it repeal Subtitle D, National Defense Tank
    Vessel Construction Assistance, of Title XXXV of the Maritime
    Security Act of 2003, Public Law 108-136, as proposed in the
    budget request.

               ADMINISTRATIVE PROVISIONS--MARITIME ADMINISTRATION

        Section 160. The Committee continues a provision that
    allows the Maritime Administration to furnish utilities and
    services and make repairs to any lease, contract, or occupancy
    involving government property under the control of MARAD and
    rental payments shall be covered into the Treasury as
    miscellaneous receipts.
        Section 161. The Committee continues a provision that
    prohibits obligations incurred during the current year from
    construction funds in excess of the appropriations contained in
    this Act or in any prior appropriations Act.

             Pipeline and Hazardous Materials Safety Administration

        The Pipeline and Hazardous Materials Safety Administration
    (PHMSA), which was established as an administration within the
    Department of Transportation effective November 30, 2004,
    pursuant to the Norman Y. Mineta Research and Special Programs
    Improvement Act (Public Law 108-246), is responsible for the
    department's pipeline safety program and oversight of hazardous
    materials transportation safety operations. As part of its
    mission, the agency is dedicated to safety by working toward
    the elimination of transportation-related deaths and injuries
    in hazardous materials and pipeline transportation, and by
    promoting transportation solutions that enhance communities and
    protect the natural environment.

                            ADMINISTRATIVE EXPENSES

        This appropriation finances the program support costs for
    the PHMSA. This includes policy development, counsel, budget,
    financial management, civil rights, management, administration
    and agency-wide expenses.

                            COMMITTEE RECOMMENDATION

        The Committee provides $17,027,000 for these costs, of
    which $645,000 is to be provided from the Pipeline Safety Fund.
        Administrative support.--A total of six new positions are
    requested in fiscal year 2006 to provide accounting, financial
    support and administrative support--two human resources
    positions; two positions for personnel security and continuity
    of operations; one administrative support position to oversee
    real estate, space, telecommunications, property, and other
    administrative services; and one accounting position. The
    Committee approves all six of these positions and half-year
    funding has been provided.
        Information technology activities.--The PHMSA requests a
    $198,000 increase in its information technology program to
    support information exchange, such as electronic
    communications, filing pipeline incident reports, and online
    applications for exemptions from hazardous materials
    regulations. The Committee provides this funding as requested.
        Administrative costs for new positions.--Consistent with
    the new positions that have been provided, $129,000 is provided
    for associated administrative costs.

                           HAZARDOUS MATERIALS SAFETY

        The PHMSA oversees the safety of the more than 800,000
    daily shipments of hazardous materials in the United States and
    uses risk management principles and security threat assessments
    to understand, communicate, and reduce dangers inherent in
    hazardous materials transportation. The agency formulates,
    issues and revises hazardous materials regulations which cover
    hazardous materials definitions and classifications, hazard
    communications, shipper and carrier operations, training and
    security requirements, and packaging and container
    specifications.

                            COMMITTEE RECOMMENDATION

        The bill includes $26,183,000 to continue the agency's
    hazardous materials safety functions.
        Spent nuclear fuel and high-level radioactive waste
    shipments.--The budget requests four new positions to support
    the legal challenges regarding shipments of spent nuclear fuel
    and high-level radioactive waste to Skull Valley, Utah. The
    Committee approves two of these positions and the associated
    half-year costs.
        Hazardous materials regulations compliance.--The PHMSA is
    requesting three new positions to help ensure compliance with
    current hazmat regulations. The Committee approves two of these
    positions and half-year funding associated with these positions
    has been provided.

                                PIPELINE SAFETY

                             (PIPELINE SAFETY FUND)

                        (OIL SPILL LIABILITY TRUST FUND)

                                                                                     (Oil spill
                                                                (Pipeline safety   liability trust        Total
                                                                      fund)             fund)
    Appropriation, fiscal year 2005 \1\.......................       $54,331,000       $14,880,000       $69,211,000
    Budget request, fiscal year 2006..........................        54,165,000        19,000,000        73,165,000
    Recommended in the bill...................................        57,860,000        15,000,000        72,860,000
    Bill compared to:
        Appropriation, fiscal year 2005.......................        +3,529,000          +120,000        +3,649,000
        Budget request, fiscal year 2006......................        +3,695,000        -4,000,000          -305,000

    \1\ Includes across the board reduction of .8 percent.

        PHMSA oversees the safety, security, and environmental
    protection of pipelines through analysis of data, damage
    prevention, education and training, enforcement of regulations
    and standards, research and development, grants for states
    pipeline safety programs, and emergency planning and response
    to accidents. The pipeline safety program is responsible for a
    national regulatory program to protect the public against the
    risks to life and property in the transportation of natural
    gas, petroleum and other hazardous materials by pipeline. The
    enactment of the Oil Pollution Act of 1990 also expanded the
    role of the pipeline safety program in environmental protection
    and resulted in a new emphasis on spill prevention and
    containment of oil and hazardous substances from pipelines.

                            COMMITTEE RECOMMENDATION

        The bill includes $72,860,000 to continue pipeline safety
    operations, research and development, and state grants-in-aid
    in fiscal year 2006. The bill specifies that of the total
    appropriation, $15,000,000 shall be derived from the oil spill
    liability trust fund and $57,860,000 shall be from the pipeline
    safety fund.
        State one-call grants.--The Committee directs that no less
    than $1,000,000 of the funds provided is for the one-call
    grants program, as was directed in fiscal year 2005.
        Pipeline safety staffing.--The staff levels of the office
    of pipeline safety (OPS) have increased dramatically over the
    past few fiscal years and again the agency is requesting a
    significant staffing increase for 2006, asking that eight new
    positions be added. The Committee approves five of these
    additional positions--two new pipeline inspectors for Houston,
    Texas, where over 50% of the major pipeline operators are
    headquartered; one new inspector to work on integrity
    management program compliance; and two new state program
    managers to evaluate state pipeline programs. All other
    proposed positions are denied.
        State pipeline safety grants.--The OPS requests funding to
    assist state pipeline agencies to increase inspection and
    enforcement activities required by the Pipeline Safety
    Integrity Act. Funding totaling $185,000 is provided for this
    purpose.
        Oil spill liability trust fund.--The Committee continues to
    be concerned with the significant increases in the request of
    funds from the oil spill liability trust fund. The Oil
    Pollution Act of 1990 requires that these trust funds be used
    exclusively for oil spill prevention and response activities,
    and the Committee strongly encourages the OPS to allocate
    oversight activities between the hazardous liquid and gas
    pipelines and to factor the oil spill liability trust fund into
    the allocation formula that determines the hazardous liquid
    pipeline user fee assessment to accurately reflect the amount
    and type of oversight activities being conducted by the office
    consistent with the trust fund. Last year, the Committee
    directed that the fiscal year 2006 budget justification should
    adequately address this issue by containing an itemization of
    how these funds are being allocated within the OPS. That
    information was not included. Without this information, the
    Committee cannot support the administration's request to
    increase the level of funding drawn from the oil spill
    liability trust fund from $15,000,000 to $19,000,000.
    Furthermore, the Committee is once again directing the agency
    to include an itemization of how funds from the oil spill
    liability trust fund are being allocated within the OPS in the
    fiscal year 2007 budget justification.

                         EMERGENCY PREPAREDNESS GRANTS

                         (EMERGENCY PREPAREDNESS FUND)

    ----------------------------------------------------------------------------------------------------------------
                                                                   (Emergency        (Emergency
                                                                  preparedness      preparedness          Total
                                                                      fund)        grant program)
    ----------------------------------------------------------------------------------------------------------------
    Appropriation, fiscal year 2005...........................      \1\ $198,000     ($14,300,000)       $14,498,000
    Budget request, fiscal year 2006..........................           200,000  ................           200,000
    Recommended in the bill...................................           200,000      (14,300,000)        14,500,000
    Bill compared to:
        Appropriation, fiscal year 2005.......................            +2,000  ................            +2,000
        Budget request, fiscal year 2006......................  ................     (+14,300,000)      +14,300,000
    ----------------------------------------------------------------------------------------------------------------
    \1\ Includes across the board reduction of .8 percent.

        The Hazardous Materials Transportation Uniform Safety Act
    of 1990 (HMTUSA) requires the PHMSA to: (1) develop and
    implement a reimbursable emergency preparedness grant program;
    (2) monitor public sector emergency response training and
    planning and provide technical assistance to states, political
    subdivisions and Indian tribes; and (3) develop and update
    periodically a mandatory training curriculum for emergency
    responders.

                            COMMITTEE RECOMMENDATION

        The Committee recommends $200,000, the same amount as
    requested, for activities related to emergency response
    training curriculum development and updates, as authorized by
    section 117(A)(i)(3)(B) of HMTUSA. The Committee has provided
    an obligation limitation of $14,300,000 for the emergency
    preparedness grant program.

               Research and Innovative Technology Administration

        The Research and Innovative Technology Administration
    (RITA) was established as an administration within the
    Department of Transportation effective November 30, 2004,
    pursuant to the Norman Y. Mineta Research and Special Programs
    Improvement Act, Public Law 108-426. The mission of RITA is to
    provide strategic clarity to the department's multi-modal and
    intermodal research efforts, while coordinating the
    multifaceted research agenda of the department.
        RITA coordinates, facilitates, and reviews research and
    development programs and activities through: advancement and
    research and development of innovative technologies, including
    intelligent transportation systems; comprehensive
    transportation statistics research, analysis, and reporting;
    education and training in transportation and transportation-
    related fields, including the University Transportation
    Centers; and activities of the Volpe National Transportation
    Center.
        Also included within RITA is the Bureau of Transportation
    Statistics (BTS), which is funded by an allocation from Federal
    Highway Administration's federal-aid highway account. BTS
    compiles, analyzes, and makes accessible information on the
    nation's transportation systems; collects information on
    intermodal transportation and other areas as needed; and
    enhances the quality and effectiveness of the statistical
    programs of the Department of Transportation through research,
    the development of guidelines, and the promotion of
    improvements in data acquisition and use.

                            RESEARCH AND DEVELOPMENT

    Appropriation, fiscal year 2005 \1\...................        $4,310,000
    Budget request, fiscal year 2006......................         6,274,000
    Recommended in the bill...............................         4,326,000
    Bill compared with:
        Appropriation, fiscal year 2005...................           +16,000
        Budget request, fiscal year 2006..................        -1,948,000

    \1\ FY 2005 amount represents the transfer of resources from the Office
      of the Secretary of Transportation ($975,000) and the Research and
      Special Programs Administration ($3,335,000).

                            COMMITTEE RECOMMENDATION

        The bill includes $4,326,000 to continue research and
    development activities in fiscal year 2006. This funding level
    represents only a minor increase over the fiscal year 2005
    level and is attributable to the amount identified in the
    budget justification as being necessary for inflation and other
    mandatory increases.
        Reductions from the budget request.--The Committee reduces
    funding by $1,948,000 below the request due to inadequate
    justification. The Committee is disturbed by the poor quality
    of the budget justification that was provided for this newly
    formed agency and notes the complete lack of information
    pertaining to specific requested increases above prior year
    funding levels. As has been noted in the past, the Committee
    cannot meet the administration's request if it does not come
    with adequate justification.
        For similar reasons, the Committee denies funding for seven
    additional full-time equivalent staff years (FTEs). Although
    identified in several charts within the budget request
    document, these additional FTEs were never described within the
    written justification and no explanation was provided as to why
    they were needed, thereby making it impossible for the
    Committee to determine the significance of either funding or
    not funding these FTEs.
        Therefore, the Committee denies the increased funding and
    additional FTEs that have been requested until such time as the
    department can adequately explain the need for these increases.
        Poor planning behind reorganization.--The budget
    justification for RITA stated repeatedly that ``not enough is
    known about the impending reorganization structure and
    distribution of its functions to confidently predict RITA
    priorities'' as it relates to the various program and
    performance goals. The Committee notes that P.L. 108-426, which
    created RITA, was passed in November 2004 based on the
    department's recommendations to Congress to reorganize. Yet,
    the department still does not appear to have a clear direction
    as to how this newly created agency should operate. This shows
    a lack of planning and foresight on the part of the department
    and causes this Committee to question the planning process that
    was behind the department's request for the reorganization. It
    is the Committee's hope that the department's budget request
    for next fiscal year will be better organized and will provide
    a clearer picture as to the long-term goals and objectives of
    this agency.

                      BUREAU OF TRANSPORTATION STATISTICS

        Under the appropriation of the Federal Highway
    Administration, the bill provides $33,000,000 for the BTS.
        The most recent long-term surface transportation
    reauthorization act, the Transportation Equity Act for the 21st
    Century, expired on September 30, 2003. Since that time,
    Congress has passed several short-term extension bills that
    have provided contract authority for the various surface
    transportation programs, with the current extension set to
    expire on June 30, 2005. Because reauthorization actions have
    not yet been completed, the Committee has funded BTS at a level
    for fiscal year 2006 that is consistent with the House-passed
    surface transportation reauthorization legislation, the
    Transportation Equity Act: A Legacy for Users.
        As has been the practice in previous years, the Committee
    limits BTS staff to 126 FTEs in fiscal year 2006 in order to
    curtail the significant growth in staffing that occurred
    previously within this agency.

                          Office of Inspector General

                             SALARIES AND EXPENSES

        The Inspector General's office was established in 1978 to
    provide an objective and independent organization that would be
    more effective in: (1) preventing and detecting fraud, waste,
    and abuse in departmental programs and operations; and (2)
    providing a means of keeping the Secretary of Transportation
    and the Congress fully and currently informed of problems and
    deficiencies in the administration of such programs and
    operations. According to the authorizing legislation, the
    Inspector General (IG) is to report dually to the Secretary of
    Transportation and to the Congress.

    Appropriation, fiscal year 2005.......................       $58,528,000
    Budget request, fiscal year 2006......................        62,499,000
    Recommended in the bill...............................        62,499,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        +3,971,000
        Budget request, fiscal year 2006..................  ................

                            COMMITTEE RECOMMENDATION

        The Committee recommendation provides $62,499,000 for
    activities of the Office of Inspector General, consistent with
    the budget request. The Committee continues to value highly the
    work of the Office of Inspector General in oversight of
    departmental programs and activities.
        In addition, the OIG will receive $7,224,000 from other
    agencies in this bill, as noted below:

    Federal Highway Administration................................$3,524,000
    Federal Transit Administration................................ 2,000,000
    Federal Aviation Administration............................... 1,200,000
    National Transportation Safety Board..........................   500,000

        Funding is sufficient to finance 435 full-time equivalent
    (FTE) staff years in fiscal year 2006, for an increase of 5
    FTE.
        Unfair business practices.--The bill maintains language
    first enacted in fiscal year 2000 which authorizes the OIG to
    investigate allegations of fraud and unfair or deceptive
    practices and unfair methods of competition by air carriers and
    ticket agents.
        Audit reports.--The Committee requests the Inspector
    General to continue forwarding copies of all audit reports to
    the Committee immediately after they are issued, and to
    continue to make the Committee aware immediately of any review
    that recommends cancellation or modifications to any major
    acquisition project or grant, or which recommends significant
    budgetary savings. The OIG is also directed to withhold from
    public distribution for a period of 15 days any final audit or
    investigative report which was requested by the House or Senate
    Committees on Appropriations.

                          Surface Transportation Board

        The Surface Transportation Board was created on January 1,
    1996 by P.L. 104-88, the Interstate Commerce Commission (ICC)
    Termination Act of 1995. Consistent with the continued trend
    toward less regulation of the surface transportation industry,
    the Act abolished the ICC; eliminated certain functions that
    had previously been implemented by the ICC; transferred core
    rail and certain other provisions to the Board; and transferred
    certain motor carrier functions to the Federal Highway
    Administration (now under the Federal Motor Carrier Safety
    Administration). The Board is specifically responsible for
    regulation of the rail and pipeline industries and certain non-
    licensing regulations of motor carriers and water carriers. The
    law empowers the Board through its exemption authority to
    promote deregulation administratively on a case-by-case basis
    and continues intact the important rail reforms made by the
    Staggers Rail Act of 1980.

                             SALARIES AND EXPENSES

    Appropriation, fiscal year 2005 \1\...................       $20,030,000
    Budget request, fiscal year 2006 \2\..................        23,138,000
    Recommended in the bill \3\...........................        25,372,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        +5,342,000
        Budget request, fiscal year 2006..................        +2,234,000

    \1\ Includes $1,050,000 in collections of user fees.
    \2\ Assumes collection of $1,250,000 in user fees, to offset the
      appropriation as the fees are collected throughout the fiscal year.
    \3\ Assumes collection of $1,250,000 in user fees, to offset the
      appropriation as the fees are collected throughout the fiscal year.

                            COMMITTEE RECOMMENDATION

        The Committee recommends a total appropriation of
    $25,372,000, an increase of $2,234,000 above the budget
    request. Included in the recommended amount is an estimated
    $1,250,000 in fees, which will offset the appropriated funding.
    At this funding level, the Board will be able to accommodate
    150 full-time equivalent staff years. In addition, the
    Committee has provided one-time funding of $4,500,000 to
    accommodate STB's pending office relocation.
        User fees.--Current statutory authority, under 31 U.S.C.
    9701, grants the Board the authority to collect user fees. The
    Committee believes that $1,250,000 in user fees is reasonable.
    Language is included in the bill allowing the fees to be
    credited to the appropriation as offsetting collections, and
    reducing the general fund appropriation on a dollar-for-dollar
    basis as the fees are received and credited. This language,
    continued from last year, simplifies the tracking of the
    collections and provides the Board with more flexibility in
    spending its appropriated funds.
        Union Pacific/Southern Pacific merger.--On December 12,
    1997, the Board granted a joint request of Union Pacific
    Railroad Company and the City of Wichita and Sedgwick County,
    KS (Wichita/Sedgwick) to toll the 18-month mitigation study
    pending in Finance Docket No. 32760. The decision indicated
    that at such time as the parties reach agreement or discontinue
    negotiations, the Board would take appropriate action.
        By petition filed June 26, 1998, Wichita/Sedgwick and UP/SP
    indicated that they had entered into an agreement, and jointly
    petitioned the Board to impose the agreement as a condition of
    the Board's approval of the UP/SP merger. By decision dated
    July 8, 1998, the Board agreed and imposed the agreement as a
    condition to the UP/SP merger. The terms of the negotiated
    agreement remain in effect. If UP/SP or any of its divisions or
    subsidiaries materially changes or is unable to achieve the
    assumptions on which the Board based its final environmental
    mitigation measures, then the Board should reopen Finance
    Docket 32760 if requested by interested parties, and prescribe
    additional mitigation properly reflecting these changes if
    shown to be appropriate.

            Administrative Provisions--Department of Transportation

        Section 170. The Committee continues the provision allowing
    the Department of Transportation to use funds for aircraft;
    motor vehicles; liability insurance; uniforms; or allowances,
    as authorized by law.
        Section 171. The Committee continues the provision limiting
    appropriations for services authorized by 5 U.S.C. 3109 to the
    rate for an Executive Level IV.
        Section 172. The Committee continues the provision
    prohibiting funds in this Act for salaries and expenses of more
    than 100 political and Presidential appointees in the
    Department of Transportation, and prohibits political and
    Presidential personnel assigned on temporary detail outside the
    Department of Transportation.
        Section 173. The Committee continues the provision
    prohibiting funds for the implementation of section 404 of
    title 23, United State Code.
        Section 174. The Committee continues the provision
    prohibiting recipients of funds made available in this Act from
    releasing personal information, including social security
    number, medical or disability information, and photographs from
    a driver's license or motor vehicle record, without express
    consent of the person to whom such information pertains; and
    prohibits the withholding of funds provided in this Act for any
    grantee if a state is in noncompliance with this provision.
        Section 175. The Committee continues the provision allowing
    funds received by the Federal Highway Administration, Federal
    Transit Administration, and the Federal Railroad Administration
    from states, counties, municipalities, other public
    authorities, and private sources for expenses incurred for
    training may be credited to each agency's respective accounts.
        Section 176. The Committee continues the provision
    authorizing the Secretary of Transportation to allow issuers of
    any preferred stock to redeem or repurchase preferred stock
    sold to the Department of Transportation.
        Section 177. The Committee continues the provision
    prohibiting funds in Title I of this Act from being issued for
    any grant unless the Secretary of Transportation notifies the
    House and Senate Committees on Appropriations not less than
    three full business days before any discretionary grant award,
    letter of intent, or full funding grant agreement totaling
    $1,000,000 or more is announced by the department or its modal
    administrations.
        Section 178. The Committee continues a provision for the
    Department of Transportation allowing funds received from
    rebates, refunds, and similar sources to be credited to
    appropriations.
        Section 179. The Committee continues a provision allowing
    amounts from improper payments to a third party contractor that
    are lawfully recovered by the Department of Transportation to
    be available to cover expenses incurred in the recovery of such
    payments.
        Section 180. The Committee continues a provision allowing
    the Secretary of Transportation to transfer unexpended sums
    from ``Office of the Secretary, Salaries and Expenses'' to
    ``Minority Business Outreach''.
        Section 181. The Committee continues the provision
    prohibiting the Office of the Secretary of Transportation from
    approving assessments or reimbursable agreements pertaining to
    funds appropriated to the modal administrations in this Act,
    unless such assessments or agreements have completed the normal
    reprogramming process for Congressional notification.
        Section 182. The Committee continues the provision
    prohibiting the use of funds to implement an essential air
    service local cost share participation pilot program.

                      TITLE II--DEPARTMENT OF THE TREASURY

                              Departmental Offices

                             SALARIES AND EXPENSES

                         (INCLUDING TRANSFER OF FUNDS)

    Appropriation, fiscal year 2005 \1\...................      $156,299,000
    Budget request, fiscal year 2006......................       195,253,000
    Recommended in the bill...............................       187,452,000
    Bill compared with:
        Appropriation, fiscal year 2005...................       +31,153,000
        Budget request, fiscal year 2006..................        -7,801,000

    \1\ Does not include $22,113,000 for the office of foreign assets
      control.

        The Departmental Offices' function in the Treasury
    Department is to provide basic support to the Secretary of the
    Treasury, who is the chief operating executive of the
    Department. The Secretary of the Treasury also has a primary
    role in formulating and managing the domestic and international
    tax and financial policies of the Federal Government. The
    Secretary's responsibilities funded by the salaries and
    expenses appropriation include: recommending and implementing
    United States domestic and international economic and tax
    policy; fiscal policy; governing the fiscal operations of the
    Government; maintaining foreign assets control; managing the
    public debt; managing development of financial policy;
    representing the United States on international monetary, trade
    and investment issues; overseeing Treasury Department overseas
    operations; directing the administrative operations of the
    Treasury Department; and providing executive oversight of the
    bureaus within the Treasury Department. This account also
    includes funding for the office of professional responsibility.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $187,452,000
    for departmental offices, salaries and expenses, an increase of
    $31,153,000 over the fiscal year 2005 enacted level and
    $7,153,000 below the request. The funding recommendations are
    made based on information included in the budget justification.
    Therefore, the transfer authority provided to the department
    under this heading is set at 2 percent. Funds are to be
    allocated as follows:

    Executive direction...................................        $7,216,000
    General counsel.......................................         7,521,000
    Economic polices and programs.........................        32,011,000
    Financial policies and programs.......................        24,721,000
    Terrorism and financial crimes programs \1\...........        35,409,000
    Treasury-wide management policies and programs........        16,843,000
    Administration........................................       63,731,000

    \1\ Includes the office of foreign assets controls.

        The Committee has included a travel limitation of
    $3,000,000 for fiscal year 2006 and restates the travel report
    directives contained in House Report 108-792. The Committee is
    recommending the travel limitation to ensure that adequate
    resources are available for the day-to-day operations of the
    department. The Committee directs the secretary to ensure that
    a portion of the travel funds are made available to general
    schedule employees to support the training and development of
    all departmental office employees.
        Additionally, the bill includes $258,000 for unforeseen
    emergencies, $5,173,000 for the department-wide financial
    statement audit and internal control programs, $3,000,000 for
    information technology modernization requirements, and $100,000
    for official reception and representation expenses.
        The Committee recommends $35,409,000 for the office of
    terrorism and financial intelligence (TFI). Of the amount
    provided, $1,998,000 is for the office of the undersecretary,
    $3,700,000 is for the office of terrorist financing and
    financial crimes (OTTC), 22,032,000 is for the office of
    financial assets control (OFAC), and $7,679,000 is for the
    office of intelligence analysis (OIA). The Committee is
    concerned that the Office of Terrorism and Financial
    Intelligence is resourcing its operations at the expense of its
    key analytic and intelligence units and shortchanging the
    ability of OFAC to perform its mission effectively. Earlier
    this year, Treasury proposed to detail 23 OFAC FTE to OIA, and
    then request 9 new FTE for OFAC in the budget justification.
    The Committee's recommendation funds 9 FTE in OFAC as
    requested, and an additional 14 FTE in OIA. The Committee made
    its decision based on the fact that Treasury has not provided
    adequate justification for the additional FTE, nor a
    comprehensive plan for this office, which was created less than
    one year ago.
        The Committee directs the department to provide to the
    Committee a report of TFI's short and long-term personnel and
    resource requirements for the next five years, and a narrative
    of the TFI's strategic plan for its organizational structure,
    including its interaction and relationship with subordinate
    agencies such as the OIA, OFAC, and the Financial Crimes
    Enforcement Newtork (FinCEN). Morevoer, the Committee directs
    the Government Accountability Office (GAO) to assess TFI and
    include a discussion of the strategic goals of TFI; an
    assessment of its implementation plan and strategies for
    accomplishing its legislative mandates; whether its structure,
    policies, resources, human capital requirements, mission,
    direction and other organizational factors are in alignment
    with the functions of subordinate agencies such as OIA, FinCEN,
    and OFAC and avoids duplication of performance; if its control
    and measurements systems are consistent with keeping TFI on
    track toward its goals; and include recommendations for program
    and organizational improvements. The Committee directs the
    Treasury Department and the GAO to deliver their reports to the
    Committee no later than February 1, 2006.
        The Committee's recommendation does not include an increase
    of $720,000 over the fiscal year 2005 funding level for media
    room operations. The Committee determines this cost increase to
    be excessive and directs Treasury to bring down the cost of
    this initiative.
        The Committee's recommendation does not include $1,000,000
    for building maintenance and repairs. While the Committee
    agrees that in the future funds should be set aside for routine
    repair and maintenance of the Treasury Building, the T-BARR
    initiative should be able to address any issues in fiscal year
    2006.
        The Committee's recommendation does not include funds for
    any e-gov project outside of the regular scope of the
    department's operations, or any project coordinated by another
    agency.
        The Committee appreciates Treasury's efforts to retool the
    department's budget documents in response to concerns expressed
    from a year ago. In fiscal year 2005, senior Treasury officials
    coordinated with the Committee early in the 2006 budget process
    to make adjustments to Treasury budget presentation materials.
    As a result, the fiscal year 2006 budget-in-brief (BIB) is a
    remarkable improvement over previous years. It is a clear,
    concise and usable document. Nevertheless, while the BIB has
    improved, the Treasury congressional justification documents
    continue to need major changes. The Committee expects the same
    process used to transform the BIB to change the justification.
    A retooled congressional justification should provide detailed
    discussion of proposed new initiatives, and changes in the
    agency's financial plan from prior year enactment that build on
    a request for the new year such as transfers and annualization
    of prior year programs.
        The Committee recognizes the positive first step in
    significantly reducing the performance information in the
    fiscal year 2006 budget documents. The Committee encourages the
    department to continue to refine and better focus its
    performance measures. Good performance information should
    demonstrate to the Committee the marginal benefits received
    from dollars appropriated. In light of tight fiscal
    constraints, the Committee also values Treasury efforts to
    reduce ineffective, low priority and obsolete programs. The
    Committee expects Treasury to continue to hold programs to a
    firm test of accountability and focus funding on top
    priorities, but developing fair and responsible budgets, in
    this austere fiscal environment.
        Once the fiscal year 2006 appropriations Act is signed into
    law, the Committee directs the department to submit an
    operating plan for the fiscal year 2006 resources provided to
    the department, including all offices and bureaus, not more
    than 60 days after enactment. The operating plan must include
    funding and FTE levels for all offices and objectives by fiscal
    year 2005 actual, fiscal year 2006 request, and fiscal year
    2006 enacted. In addition, the plan must include information on
    any initiative, major procurement, and program at the
    department. The operating plan should incorporate input from
    all senior level managers of the department, and once
    submitted, the final plan should be made available to those
    managers. In the past two years, the department has undertaken
    a large number of reprogramming actions that rely heavily on
    attrition and deferments to meet various new initiatives and
    priorities during the fiscal year. The Committee understands
    the need for some flexibility to meet unanticipated needs, but
    has the experience to know that a stable operating budget will
    help anchor an agency in its mission and enable managers to
    meet the day-to-day needs of the department.
        The Committee has noticed the inordinate amount of time it
    takes the department to respond to basic budget inquiries.
    Information related to the expenditure of current year and
    budget year funds is directly the jurisdiction of the Committee
    and one of its basic oversight responsibilities. Further, once
    an appropriations Act is enacted, or the budget submitted, the
    department should have definite answers regarding the
    obligation of funds and the justification for all budget
    requests. The Committee directs the department to respond in a
    more timely manner to all Committee requests. Further, in order
    to eliminate confusion over which Treasury official is
    responsible for signing correspondence to the Committee, the
    Committee directs that correspondence related to the Committee
    shall be signed by either the Secretary, the Chief Financial
    Officer, or the relevant bureaus director.
        The Committee recognizes the prominence placed on economic
    and financial issues at the Organization for Economic
    Cooperation and Development in Paris, France, and directs the
    department to maintain a senior staff presence attached to the
    United States Mission in Paris. Over the years, there has been
    an erosion in the presence of the Treasury Department at the
    United States Mission, but the importance of the issues
    involved necessitate that this trend now cease and that a
    senior position be established.
        The Committee is concerned about the failure of airlines to
    properly fund the pension obligations of their employees and
    retirees. Recent bankruptcy court rulings and announcements by
    other airlines that they may seek similar relief from pension
    obligations, have precipitated a crisis for the Pension Benefit
    Guaranty Corporation. As a result, airlines are asking
    taxpayers to further subsidize their continuing losses.
        Within 90 days of the enactment of this Act, the Government
    Accountability Office is directed to analyze the impact that a
    re-regulation of the airline industry would have on reducing
    potential pension defaults by airlines.

            department-wide systems and capital investments programs

                         (INCLUDING TRANSFER OF FUNDS)

    Appropriation, fiscal year 2005.......................       $32,002,000
    Budget request, fiscal year 2006......................        24,412,000
    Recommended in the bill...............................        21,412,000
    Bill compared with:
        Appropriation, fiscal year 2005...................       -10,590,000
        Budget request, fiscal year 2006..................        -3,000,000

        This appropriation funds the modernization of Treasury
    business processes and increases in department-wide systems
    efficiency through technology investments for systems that
    involve more than one Treasury bureau or Treasury's interface
    with other governmental agencies.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $21,412,000
    for department-wide systems and capital investment programs,
    $3,000,000 below the budget request and $10,590,000 below the
    fiscal year 2005 enacted level.
        Of the amount recommended, the Committee has provided
    $3,000,000 for various TFI information technology investments.
    Should the department require additional resources for this
    initiative, the Committee directs the department to utilize
    revenue from the Treasury Forfeiture Fund, up to $3,000,000. To
    ensure the rational and reasonable development and procurement
    of such investments, the Committee directs the Government
    Accountability Office to provide assistance and oversight as
    TFI embarks on this system development.
        Recent reports of unrealized savings from major information
    technology (IT) investments, such as those associated with the
    development and implementation of the HR-Connect system, and
    award protests associated with the Treasury Communications
    Enterprise (TCE) Network do little to inspire the confidence of
    the Committee in the department's ability to manage its IT
    portfolio, or inspire the Committee to fund new systems. Too
    often, the Committee is backed into the corner of funding
    initiatives and systems based on the promise of management
    reform, the threat of departmental collapse, or the argument
    that too much money has been invested to pull the plug. In this
    budget climate, the Committee cannot afford to fund the failure
    and shortcomings of IT investments. The Committee directs the
    department to provide more detailed information in the
    operating plan regarding all IT initiatives and investments,
    development and implementation timelines, and costs and
    savings.

                          OFFICE OF INSPECTOR GENERAL

                             SALARIES AND EXPENSES

    Appropriation, fiscal year 2005.......................       $16,368,000
    Budget request, fiscal year 2006......................        16,722,000
    Recommended in the bill...............................        17,000,000
    Bill compared with:
        Appropriation, fiscal year 2005...................          +632,000
        Budget request, fiscal year 2006..................          +278,000

        This appropriation provides agency-wide audit and
    investigative functions to identify and correct operational and
    administrative deficiencies, which create conditions for
    existing or potential instances of fraud, waste, and
    mismanagement. The audit function provides program, contract,
    and financial statement audit services. Contract audits provide
    professional advice to agency contracting officials on
    accounting and financial matters relative to negotiation,
    award, administration, repricing, and settlement of contracts.
    Program audits review and evaluate all facets of agency
    operations. Financial statement audits assess whether financial
    statements fairly present the agency's financial condition and
    results of operations, the adequacy of accounting controls, and
    compliance with laws and regulations. The investigative
    function provides for the detection and investigation of
    improper and illegal activities involving programs, personnel,
    and operations.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $17,000,000
    for the Office of Inspector General, an increase of $632,000
    above the fiscal year 2005 enacted level and an increase of
    $278,000 above the budget request. The increase is for
    additional audit capability in the areas of regulation
    responsibility and the on-going audit of the Treasury building
    renovation project. The bill includes $2,000,000 for official
    travel expenses, $2,000 for reception and representation
    expenses, and up to $100,000 for unforeseen emergencies.

               treasury inspector general for tax administration

                             SALARIES AND EXPENSES

    Appropriation, fiscal year 2005.......................      $128,093,000
    Budget request, fiscal year 2006......................       133,286,000
    Recommended in the bill...............................       133,286,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        +5,193,000
        Budget request, fiscal year 2006..................  ................

        The Internal Revenue Service (IRS) Restructuring and Reform
    Act of 1998 established the Office of Treasury Inspector
    General for Tax Administration (TIGTA) and abolished the IRS
    Office of the Chief Inspector. TIGTA conducts audits,
    investigations, and evaluations to assess the operations and
    programs of the IRS and its related entities, the IRS Oversight
    Board and the Office of Chief Counsel. The purpose of those
    audits and investigations is to: (1) promote the economic,
    efficient, and effective administration of the nation's tax
    laws and to detect and deter fraud and abuse in IRS programs
    and operations; and (2) recommend actions to resolve fraud and
    other serious problems, abuses, and deficiencies in these
    programs and operations.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $133,286,000
    for the Treasury Inspector General for Tax Administration, an
    increase of $5,193,000 above the fiscal year 2005 enacted level
    and equal to the budget request.

                    air transportation stabilization program

    Appropriation, fiscal year 2005.......................        $1,984,000
    Budget request, fiscal year 2006......................         2,942,000
    Recommended in the bill...............................         2,500,000
    Bill compared with:
        Appropriation, fiscal year 2005...................           +16,000
        Budget request, fiscal year 2006..................          -942,000

        The Air Transportation Stabilization Board was authorized
    in the Air Transportation Safety and Stabilization Act to issue
    $10,000,000,000 of federal credit instruments to air carriers.
    The purpose is ``to compensate air carriers for losses incurred
    by the air carriers as a result of the terrorist attacks on the
    United States that occurred on September 11, 2001'', providing
    among other criteria, that ``such agreement is a necessary part
    of maintaining a safe, efficient, and viable commercial
    aviation system in the United States''.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $2,500,000 for
    the air transportation stabilization program, an increase of
    $16,000 over the fiscal year 2005 enacted level and $942,000
    below the budget request. The Committee's recommendation is
    based on a lack of justification for the greater expense.

               treasury building and annex repair and restoration

                         (INCLUDING TRANSFER OF FUNDS)

    Appropriation, fiscal year 2005.......................       $12,217,000
    Budget request, fiscal year 2006......................        10,000,000
    Recommended in the bill...............................        10,000,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        -2,217,000
        Budget request, fiscal year 2006..................  ................

        This appropriation funds the repairs, selected
    improvements, and construction necessary to renovate and
    maintain the main Treasury Building, the Treasury annex, and
    other Treasury buildings.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $10,000,000
    for Treasury Building and Annex Repair and Restoration (T-
    BARR), a decrease of $2,217,000 below the fiscal year 2005
    enacted level and the same as the budget request. The requested
    and proposed funding level should be adequate for the final
    year of funding for this project.

                      Financial Crimes Enforcement Network

                             SALARIES AND EXPENSES

    Appropriation, fiscal year 2005.......................       $71,922,000
    Budget request, fiscal year 2006......................        73,630,000
    Recommended in the bill...............................        73,630,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        +1,708,000
        Budget request, fiscal year 2006..................  ................

        The Financial Crimes Enforcement Network (FinCEN) is
    responsible for implementing Treasury's anti-money laundering
    regulations through administration of the Bank Secrecy Act, 31
    U.S.C. section 5311, et seq. (BSA). It also serves as a United
    States Government source for the systematic collection and
    analysis of information to assist in the investigation of money
    laundering and other financial crimes. FinCEN supports law
    enforcement investigative efforts by federal, state, local and
    international agencies, and fosters interagency and global
    cooperation against domestic and international financial
    crimes. It also provides U.S. policymakers with strategic
    analyses of domestic and worldwide trends and patterns. It
    prevents money laundering through its regulatory and outreach
    programs, including setting policy for and overseeing BSA
    compliance by financial institutions, and by providing BSA
    training for law enforcement, bankers, and bank regulators.
    Pursuant to the USA Patriot Act of 2001, FinCEN was made a
    Treasury Bureau in recognition of its key role in supporting
    investigations and other government efforts to identify and
    stop the financing of terrorist organizations and activity. The
    Patriot Act also gave FinCEN substantial new responsibilities
    for collecting, sharing, and managing financial and other
    information as part of its counter-terrorism mission.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $73,630,000
    for the financial crimes enforcement network, an increase of
    $1,708,000 above the fiscal year 2005 enacted level and the
    same as the budget request.

                    Alcohol and Tobacco Tax and Trade Bureau

                             SALARIES AND EXPENSES

    Appropriation, fiscal year 2005.......................       $82,336,000
    Budget request, fiscal year 2006......................        62,486,000
    Recommended in the bill...............................        91,126,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        +8,790,000
        Budget request, fiscal year 2006..................       +28,640,000

        The Alcohol and Tobacco Tax and Trade Bureau (TTB) is
    responsible for the enforcement of laws designed to eliminate
    certain illicit activities and to regulate lawful activities
    relating to distilled spirits, beer, wine and nonbeverage
    alcohol products, and tobacco. Its responsibilities are focused
    on collecting revenue; reducing taxpayer burden and improving
    service while preventing diversion; and protecting the public
    and preventing consumer deception in certain regulated
    commodities.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $91,126,000
    for the Alcohol and Tobacco Tax and Trade Bureau, an increase
    of $8,790,000 above the fiscal year 2005 enacted level and
    $28,790,000 above the budget request. The budget request
    assumed $28,640,000 in revenue from new user fees to be
    enacted. However, the Committee never received the proposed
    legislation authorizing such fees and assumes that the proposal
    did not have much merit. In addition, the bill includes up to
    $6,000 for official reception and representation expenses and
    up to $50,000 for cooperative research and development
    programs.

                        Bureau of Engraving and Printing

        The Bureau of Engraving and Printing (BEP) designs,
    manufactures, and supplies Federal Reserve notes, various
    public debt instruments, as well as most evidences of a
    financial character issued by the United States, such as
    postage and internal revenue stamps. The BEP also executes
    certain printings for various territories administered by the
    United States, particularly postage and revenue stamps.
        The operations of the BEP are financed by a revolving fund
    established in accordance with the provisions of Public Law 81-
    656, August 4, 1950 (31 U.S.C. 181), which requires the BEP to
    be reimbursed by customer agencies for all costs of
    manufacturing products and services performed. The BEP is also
    authorized to assess amounts to acquire capital equipment and
    provide for working capital needs. The anticipated work volume
    is based on estimates of requirements submitted by agencies
    served. The following table summarizes BEP revenue and expense
    data for fiscal years 2004 through 2006:

    ----------------------------------------------------------------------------------------------------------------
                                                               2004  (actual)    2005  (estimate)   2006  (estimate)
    ----------------------------------------------------------------------------------------------------------------
    Total revenue..........................................       $524,752,000       $530,000,000       $575,000,000
        Revenue from currency..............................        491,179,000        507,000,000        569,000,000
        Revenue from stamps................................         19,501,000         17,000,000                  0
        Other revenue......................................         14,072,000          6,000,000          6,000,000
    Cost of operations.....................................        553,558,000        530,000,000        575,000,000
    Net revenue \1\ (to Treasury)..........................        -28,806,000

    ----------------------------------------------------------------------------------------------------------------
    \1\ Capital investments will be less than depreciation, a non-cash expense, in each of these years. In order to
      avoid accumulating working capital in excess of Bureau needs, currency prices are set at a level that will
      result in an annual loss (on paper). This loss will not exceed the depreciation expense, ensuring the solvency
      of the Bureau's revolving fund.

                           Bureau of the Public Debt

                         ADMINISTERING THE PUBLIC DEBT

    Appropriation, fiscal year 2005.......................      $173,765,000
    Budget request, fiscal year 2006......................       176,923,000
    Recommended in the bill...............................       176,923,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        +3,158,000
        Budget request, fiscal year 2006..................  ................

        This appropriation provides funds for the conduct of all
    public debt operations and the promotion of the sale of U.S.
    securities.

                            COMMITTEE RECOMMENDATION

        The Committee recommends a net appropriation of
    $176,923,000 for administering the public debt, an increase of
    $3,158,000 above the fiscal year 2005 enacted level and the
    same as the budget request. The bill includes up to $2,000,000
    for systems modernization.

           Community Development Financial Institutions Fund Program

       COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND PROGRAM ACCOUNT

    Appropriation, fiscal year 2005.......................       $55,078,000
    Budget request, fiscal year 2006......................         7,900,000
    Recommended in the bill...............................        55,000,000
    Bill compared with:
        Appropriation, fiscal year 2005...................           -78,000
        Budget request, fiscal year 2006..................       +47,100,000

        The Community Development Financial Institutions Fund
    provides grants, loans and technical assistance to new and
    existing community development financial institutions such as
    community development banks, community development credit
    unions, revolving loan funds and micro-loan funds. Recipients
    must use the funds to support mortgage, small business and
    economic development lending in currently underserved,
    distressed neighborhoods. The Fund is also responsible for
    implementation of the Community Renewal Tax Relief Act of 2000.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $55,000,000
    for the program in fiscal year 2006, an increase of $47,100,000
    when compared to the budget request, and $78,000 below the
    fiscal year 2005 funding level. The budget request proposed
    moving the program to the Department of Commerce as a part of
    the ``Strengthening America's Communities'' program, leaving
    only the administration of the New Markets Tax Credit program
    and the outstanding award portfolio. The Committee recommends
    the entire program remain at the Treasury. Of the funds
    provided, $13,000,000 is for administrative costs of the
    program.

                          Financial Management Service

                             SALARIES AND EXPENSES

    Appropriation, fiscal year 2005.......................      $229,083,000
    Budget request, fiscal year 2006......................       236,243,000
    Recommended in the bill...............................       236,243,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        +7,160,000
        Budget request, fiscal year 2006..................  ................

        The Financial Management Service (FMS) is responsible for
    the management of Federal finances and the collection of
    Federal debt. As the Federal Government's central financial
    agent, FMS receives and disburses public monies, maintains
    government accounts, and reports on the status of the
    government's finances. FMS is also accountable for developing
    and implementing the most reliable and efficient financial
    methods and systems to manage and improve the Government's cash
    management, credit management, and debt collection programs.
    Pursuant to the Debt Collection Improvement Act of 1996, FMS
    became the primary agency for the collecting of federal non-tax
    debt that is due and owed to the government. Through FMS, there
    is a coordinated effort to collect debt from those who have
    defaulted on agreements with the Federal government.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $236,243,000
    for the Financial Management Service, an increase of $7,160,000
    above the fiscal year 2005 enacted level and the same as the
    budget request. The bill includes up to $9,220,000 for
    information systems modernization initiatives and up to $2,500
    for official reception and representation expenses.

                               United States Mint

                   UNITED STATES MINT PUBLIC ENTERPRISE FUND

        The United States Mint manufactures coins, receives
    deposits of gold and silver bullion, and safeguards the Federal
    government's holdings of monetary metals. For fiscal year 1997,
    Congress established the United States Mint Public Enterprise
    Fund (Public Law 104-52), which authorized the U.S. Mint to use
    proceeds from the sale of coins to finance the costs of its
    operations and which consolidated all existing Mint accounts
    into a single fund. Public Law 104-52 also provides that, in
    certain situations, the levels of capital investments for
    circulating coins and protective services shall factor into the
    decisions of the Congress such that those levels compete with
    other requirements for funding.

                            COMMITTEE RECOMMENDATION

        The Committee recommends a spending level for capital
    investments by the U.S. Mint for circulating coinage and
    protective services of $36,900,000, an increase of $12,900,000
    above the fiscal year 2005 spending level and the same as the
    level included in the budget request. The following table
    provides basic information on the revenues, costs, and products
    of the Mint for fiscal years 2004 through 2006:

    ----------------------------------------------------------------------------------------------------------------
                                         Circulating coins      Commemorative
                                                                   quarters       Numismatic coins     Protection
    ----------------------------------------------------------------------------------------------------------------
    2004 (actual):
        Number of coins...........  11.1 billion............  2.2 billion......  24 million.......
        Cost of operations........  $194 million............  $241 million.....  $521 million.....  $39 million.
        Revenue...................  $443 million............  $560 million.....  $667 million.....
    2005 (est.):
        Number of coins...........  12.8 billion............  2.6 billion......  22 million.......
        Cost of operations........  $253 million............  $228 million.....  $709 million.....  $36 million.
        Revenue...................  $524 million............  $655 million.....  $800 million.....
    2006 (est.):
        Number of coins...........  12.7 billion............  2.9 billion......  22 million.......
        Cost of operations........  $242 million............  $238 million.....  $696 million.....  $39 million.
        Revenue...................  $524 million............  $718 million.....  $825 million.....
        Net revenue (to Treasury).  $439 million............  $775 million.....  $500 million.....  ($41 million).
    ----------------------------------------------------------------------------------------------------------------

                            Internal Revenue Service

                       TAX ADMINISTRATION AND OPERATIONS

    Appropriation, fiscal year 2005.....................  ..................
    Budget request, fiscal year 2006....................     $10,013,555,000
    Recommended in the bill.............................  ..................
    Bill compared with:
        Appropriation, fiscal year 2005.................  ..................
        Budget request, fiscal year 2006................     -10,013,555,000

                            COMMITTEE RECOMMENDATION

        The Internal Revenue Service requested that Congress
    consolidate its existing accounts into a single account that
    would fund all taxpayer service and enforcement activities. The
    Committee denies this request and retains the existing,
    discrete account structure.

                     processing, assistance, and management

    Appropriation, fiscal year 2005.......................    $4,056,857,000
    Budget request, fiscal year 2006......................  ................
    Recommended in the bill...............................     4,181,520,000
    Bill compared with:
        Appropriation, fiscal year 2005...................      +124,663,000
        Budget request, fiscal year 2006..................    +4,181,520,000

        This appropriation provides for processing tax returns and
    related documents; processing data for compiling statistics of
    income; assisting taxpayers in correct filing of their returns
    and in paying taxes that are due; overall planning and
    direction of the Internal Revenue Service; and management of
    financial resources and procurement.

                            COMMITTEE RECOMMENDATION

        The Committee recommends $4,181,520,000 for Processing,
    Assistance and Management, which is $4,181,520,000 above the
    budget request and $124,663,000 above fiscal year 2005.
        Taxpayer service.--The Committee is concerned that, with
    the increasing focus on enforcement, the IRS might exacerbate
    problems with compliance as a result of a lack of resources for
    taxpayer service. It is clear to the Committee that IRS has
    rushed to meet an arbitrary figure specified for cuts to
    service programs, so much so that clearly IRS has not had time
    to evaluate the impact its proposals would have on taxpayers,
    nor has it consulted with stakeholders. The Committee does not
    question the notion that some taxpayer assistance centers
    (TACs) should be closed or realigned with other IRS assets to
    achieve savings. However, the methodology used to develop the
    list of TACs to be closed leaves a great deal to be desired.
    Specifically, the Committee is disturbed that the National
    Taxpayer Advocate (NTA), the Treasury Inspector General for Tax
    Administration (TIGTA), the IRS Oversight Board, and other
    important stakeholder groups were not consulted during the
    development phase of the model that was used to identify which
    TACs should be closed. The Committee has included an
    administrative provision prohibiting the use of funds to close
    TACs for fiscal year 2006 until TIGTA has completed a thorough,
    scientific review of the impact this initiative would have on
    individual taxpayers. The Committee has included additional
    bill language that requires IRS to consult with NTA, TIGTA, the
    IRS Oversight Board, and other appropriate parties to receive
    feedback regarding data points that are incorporated in the
    model that determines which TACs should be closed and the
    weighting of those factors in the process.
        IRS Oversight Board.--The Committee is concerned that IRS
    proposed to reduce funding for the IRS Oversight Board by 50
    percent in its budget request. As a result of this concern, the
    Committee has included bill language that dedicates $1,500,000
    to support the continued operations of the IRS Oversight Board,
    which is an important source of independent information and
    analysis of IRS activities. The Committee expects this action
    will not be necessary in future fiscal years.
        The Committee is concerned that disabled military retirees,
    whose successful VA disability claims take more than 3 years to
    be resolved, are unable to receive the back tax they are owed
    for more than 3 years due to IRS statute of limitations. The
    Committee directs the IRS to work with the VA and report back
    to the Committee within 90 days of the enactment of this act on
    how many disabled military retirees have been denied the full
    back tax that they are owed due to the 3 year statute of
    limitations, and how many military retirees have VA disability
    claims that have been pending for 3 years or longer and will be
    penalized by the 3 year statute of limitations.

                              tax law enforcement

                         (INCLUDING TRANSFER OF FUNDS)

    Appropriation, fiscal year 2005.......................    $4,363,539,000
    Budget request, fiscal year 2006......................  ................
    Recommended in the bill...............................     4,541,466,000
    Bill compared with:
        Appropriation, fiscal year 2005...................      +177,927,000
        Budget request, fiscal year 2006..................    +4,541,466,000

        This appropriation provides for the examination of tax
    returns, both domestic and international; the administrative
    and judicial settlement of taxpayer appeals of examination
    findings; technical rulings; monitoring employee pension plans;
    determining qualifications of organizations seeking tax-exempt
    status; examining tax returns of exempt organizations;
    enforcing statutes relating to detection and investigation of
    criminal violations of the internal revenue laws; collecting
    unpaid accounts; compiling statistics of income and compliance
    research; securing unfiled tax returns and payments; and
    expanded efforts to reduce overclaims and erroneous filings
    associated with the earned income tax credit.

                            COMMITTEE RECOMMENDATION

        The Committee recommends $4,541,466,000, an increase of
    $4,541,466,000 over the request and $177,927,000 over fiscal
    year 2005. Included in the recommendation is $55,584,000 to
    support IRS activities under the Interagency Crime and Drug
    Enforcement program.

                              information systems

    Appropriation, fiscal year 2005.......................    $1,577,768,000
    Budget request, fiscal year 2006......................  ................
    Recommended in the bill...............................     1,606,846,000
    Bill compared with:
        Appropriation, fiscal year 2005...................       +29,078,000
        Budget request, fiscal year 2006..................    +1,606,846,000

        This appropriation provides for service-wide data
    processing support, including the evaluation, development, and
    implementation of computer systems (including software and
    hardware) requirements.

                            COMMITTEE RECOMMENDATION

        The Committee recommends $1,606,846,000, an increase of
    $1,606,846,000 over the request and $29,078,000 over fiscal
    year 2005. The Committee has included bill language that makes
    $75,000,000 available until September 30, 2007 in order to
    facilitate information technology purchases as requested by
    IRS.
        Information systems vulnerability.--The Committee is
    concerned that vulnerability management has been largely
    overlooked by the Federal government as a means of securing
    cyberspace and critical computer networks. By applying basic
    vulnerability management principles, agencies can reduce the
    annual cost of securing networks by identifying cyber security
    weaknesses, quantifying their business risk due to exposure,
    knowing the state of their network with respect to their
    specific security policies, enforcing these security policies,
    measuring performance against them over time, and verifying
    policy compliance across distributed organizations. In
    addition, vulnerability management can also result in reduced
    severity and more effective responses when incidents do occur.
        The Committee is aware that the National Institute of
    Standards and Technology (NIST) has evaluated and certified a
    new technology providing such a vulnerability management
    solution. This technology will allow for a greater
    understanding of where exposures exist, will identify the
    corresponding business risk, and allow risks to be eliminated
    in a systematic, priority-driven manner. The Committee
    encourages IRS to review this technology and implement it, if
    appropriate.

                         business systems modernization

    Appropriation, fiscal year 2005.......................      $203,360,000
    Budget request, fiscal year 2006......................       199,000,000
    Recommended in the bill...............................       199,000,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        -4,360,000
        Budget request, fiscal year 2006..................  ................

        This appropriation provides funding for IT contractors to
    modernize key business systems of the Internal Revenue Service.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $199,000,000
    for business systems modernization, a decrease of $4,360,000
    from the fiscal year 2005 enacted level and the same as the
    budget request. The release of funding from this account is
    governed by the same statutory conditions that governed the
    funds appropriated into this account in previous years.
        The Committee notes that there have been serious concerns
    voiced by the IRS Oversight Board, the Government
    Accountability Office and the Treasury Inspector General for
    Tax Administration with respect to prior program performance.
    The Committee recognizes that IRS and the PRIME contractor have
    scaled back the proposed BSM work plan to a more manageable
    level, and expects that each milestone for fiscal year 2006
    will be met on time and within budget as a result of providing
    the budget request.

                   health insurance tax credit administration

    Appropriation, fiscal year 2005.......................       $34,562,000
    Budget request, fiscal year 2006......................        20,210,000
    Recommended in the bill...............................        20,210,000
    Bill compared with:
        Appropriation, fiscal year 2005...................       -14,352,000
        Budget request, fiscal year 2006..................  ................

        This appropriation provides contractor support to develop
    and administer the advance payment option for the health
    insurance tax credit included in Public Law 107-210, the Trade
    Act of 2002.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $20,210,000
    for health insurance tax credit administration, a decrease of
    $14,352,000 below the fiscal year 2005 enacted level and the
    same as the budget request.

              administrative provisions--internal revenue service

        Sec. 201. The Committee continues a provision that allows
    the transfer of 5 percent (3 percent in the case of Tax Law
    Enforcement) of any appropriation made available to the IRS to
    any other IRS appropriation.
        Sec. 202. The Committee continues a provision that requires
    that IRS maintain a training program in taxpayer rights,
    dealing courteously with taxpayers, and cross-cultural
    relations.
        Sec. 203. The Committee continues a provision that requires
    IRS to institute policies and procedures that will safeguard
    the confidentiality of taxpayer information.
        Sec. 204. The Committee continues a provision that makes
    funds available for improved facilities and increased manpower
    to provide efficient and effective 1-800 help line service for
    taxpayers.
        Sec. 205. The Committee includes a provision that prohibits
    IRS from closing or consolidating taxpayer assistance centers
    (TACs) until a thorough study is completed that assesses the
    impact of closures on taxpayer compliance. In addition,
    language is included that requires IRS to consult with the
    National Taxpayer Advocate, the IRS Oversight Board, the
    Treasury Inspector General for Tax Administration and IRS
    employees on the model used to determine which TACs should be
    closed.

                 General Provisions--Department of the Treasury

        Section 210. The Committee continues the provision that
    allows the Department of the Treasury to purchase uniforms,
    insurance, and motor vehicles without regard to the general
    purchase price limitation, and enter into contracts with the
    State Department for health and medical services for Treasury
    employees in overseas locations.
        Section 211. The Committee continues the provision that
    authorizes transfer, up to 2 percent, between the Internal
    Revenue Service and the Treasury Inspector General for Tax
    Administration under certain circumstances.
        Section 212. The Committee continues the provision limiting
    funds for the purchase of law enforcement vehicles unless the
    purchase is consistent with vehicle management principles.
        Section 213. The Committee continues the provision that
    prohibits the Department of the Treasury from undertaking a
    redesign of the $1 Federal Reserve note.
        Section 214. The Committee continues the provision that
    provides for transfers from and reimbursements to ``Financial
    management service, salaries and expenses'' for the purposes of
    debt collection.
        Section 215. The Committee continues the provision
    extending the life of Treasury's franchise fund.
        Section 216. The Committee continues the provision that
    requires Congressional approval for the construction and
    operation of a museum by the United States Mint.
        Section 217. The Committee includes a provision prohibiting
    funds in this Act from being used to merge the United States
    Mint and the Bureau of Engraving and Printing without the
    approval of the House and Senate committees of jurisdiction.
        Section 218. The Committee has modified last year's
    provision directing the Secretary of the Treasury to provide
    report within 90 days of enactment describing how Treasury
    defines and reports on the statutory provisions addressing
    currency manipulation by America's trading partners. The
    department should include in the report specific examples of
    what it defines to be currency manipulation, and should include
    those examples that encompass the full range of the
    International Monetary Fund (IMF) definitions, including
    currency pegs, interventions and other forms used to
    artificially value a currency. In addition, the department
    should address how it consults with the IMF as required by the
    1988 Omnibus Trade Act, how the IMF and the Treasury each
    separately and independently define currency manipulation to
    gain unfair trade advantage, how the Treasury factors its own
    evaluation and definition of manipulation into consultations
    with IMF, and how the Treasury's final determination in the
    semi-annual report to Congress reflects both views. The
    secretary should report the countries and occasions when it has
    cited a trading partner since the 1988 Trade Act, the specific
    citations and definitions for citing them, and the total
    numbers of times the department has cited America's trading
    partners.

             TITLE III--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

    ------------------------------------------------------------------------

    ------------------------------------------------------------------------
    Fiscal year 2006 recommendation:
        Program Level....................................    $37,650,238,000
        Rescissions......................................     -2,493,600,000
        Offsetting Collections...........................     -2,016,000,000
          Net Appropriation..............................     33,452,052,000
    Fiscal year 2005 appropriation:
        Program Level....................................     35,108,400,000
        Rescissions......................................     -2,321,000,000
        Offsetting Collections...........................     -2,850,000,000
          Net Appropriation..............................     31,915,207,000
    Fiscal year 2006 budget request:
        Program Level....................................     33,347,486,000
        Rescissions......................................     -2,321,000,000
        Offsetting Collections...........................     -1,959,000,000
          Net Appropriation..............................     29,147,486,000
        Comparison with Fiscal year 2005 appropriation:
            Program Level................................      1,536,845,000
            Rescissions..................................        172,600,000
            Offsetting Collections.......................        834,000,000
              Net Appropriation..........................      1,536,845,000
        Comparison with Fiscal year 2006 budget request:
            Program Level................................      4,304,566,000
            Rescissions..................................       -149,248,000
            Offsetting Collections.......................        -57,000,000
              Net Appropriation..........................      4,304,566,000
    ------------------------------------------------------------------------

        The Department of Housing and Urban Development (HUD) was
    established by the Department of Housing and Urban Development
    Act of 1965 (Public Law 89-174). HUD is the principal federal
    agency responsible for administering and regulating programs
    and industries concerned with the nation's housing needs,
    economic and community development, and fair housing
    opportunities.
        In carrying out the mission of serving the needs and
    interests of the nation's communities and of the people who
    live and work in them, HUD administers mortgage and loan
    insurance programs, rental and homeownership subsidy programs
    for low-income families, neighborhood rehabilitation programs,
    and community development programs.
        The Committee recommends a total program level of
    $33,452,042,000 for the Department of Housing and Urban
    Development, an increase of $1,536,835,000 above the fiscal
    year 2005 level, and $4,304,556,000 above the request.
        Over the past five years, the Committee has demonstrated
    the high priority it places on housing and community
    development programs by providing significant additional
    resources to the Department at a time of fiscal constraint.
    Total funding provided for HUD programs has increased by 15
    percent in five years. However, despite this large increase,
    funding for most HUD programs has remained flat, or been
    reduced, because Section 8 funding has grown by 45 percent and
    in the budget recommended by the Committee for 2006, Section 8
    will consume 60 percent of the entire HUD budget. Most of the
    growth has occurred in Section 8 voucher renewals, which has
    increased by almost 30 percent since fiscal year 2001. Such
    growth is not sustainable and reform is imperative to ensure
    that all of the nation's housing and community development
    needs can continue to receive Federal assistance.

                           Public and Indian Housing

                         TENANT BASED RENTAL ASSISTANCE

                         (INCLUDING TRANSFER OF FUNDS)

    Fiscal year 2006 recommendation......................    $15,531,400,000
    Fiscal year 2005 appropriation.......................     14,765,900,000
    Fiscal year 2006 budget request......................     15,845,194,000
        Comparison with Fiscal year 2005 appropriation...       +765,480,000
        Comparison with Fiscal year 2006 budget request..       -313,794,000

        The Committee recommends a total of $15,531,400,000 in
    total funding for this account, an increase of almost
    $765,480,000 above the 2005 enacted level in total and
    $734,471,000 above the amount enacted in 2005 for the renewal
    of tenant-based Section 8 vouchers. Consistent with the
    Administration's request the Committee continues the advance of
    $4,200,000,000 of the funds appropriated under this heading for
    Section 8 programs to October 1, 2006. The entire advance is
    limited to this account. However, language in included in this
    account, which allows the Secretary to transfer up to
    $200,000,000 of the advance appropriation to the Project Based
    Rental Assistance Account during periods of Continuing
    Resolutions and if funds are available.
        Voucher Renewals.--The Committee is providing
    $14,089,756,000 the same as requested and a 6% increase in
    funds compared to fiscal year 2005 for the renewal of tenant
    based vouchers. This is considerably more than rents have
    increased and, in fact, there is some evidence to suggest that,
    nation-wide, subsidies for rental assistance have begun to
    level off relative to their 2004 levels. However funds are not
    being reduced to reflect the potential for lower costs because
    the evidence is not yet complete and the rise in tenant-based
    rents over the past 5 years has been more than 40%. The
    Department is instructed to monitor and report to the House and
    Senate Committees on Appropriations each quarter on the trends
    in Section 8 subsidy and to report on the extent to which
    changes in subsidy are due to changes in rent or changes in
    tenant income. The Committee will conduct a review of the
    trends in gross rents and subsidy requirements prior to
    enactment of a final bill.
        The 2006 Committee recommendation completes the transition
    of the appropriations for this program from a ``unit-based''
    system back to a ``budget-based'' program as the program has
    historically operated. Whereas in fiscal year 2005, Congress
    estimated the costs of the Tenant-based program based on units
    under lease during the three-month period that immediately
    preceded passage of the Act, that level set the baseline for
    all future appropriations. This Act builds upon that by
    providing sufficient funds to renew all of the vouchers under
    lease on which appropriations were based in FY 2005 prior to
    the pro rata reduction required to stay within appropriated
    amounts, adjusted by the local Annual Adjustment Factor
    (reflecting actual local rent increases) for 2005 and inflation
    estimates for 2006, plus funds for the estimated number of
    renewal of units entering the TBRA Account from other forms of
    assistance for the first time in 2005.
        The Committee recognizes that a fully ``budget based''
    system now in effect leaves the Public Housing Authorities with
    a single fixed amount for the calendar year and with the
    difficult task of maximizing the renewal of vouchers while
    existing under a complex regime of rules and requirements that
    do nothing to facilitate the process. Absent real reforms to
    the program to reduce costs and dramatic changes to the
    program's implementation guidelines to reduce the
    administrative burden, the Committee directs the Department to
    take whatever regulatory and administrative actions it can to
    increase flexibility, reduce administrative burden and
    streamline program implementation. The Committee directs the
    Department to provide a full report on the regulatory and
    administrative actions available to the Department by September
    1, 2005.
        HUD is also instructed to establish the formula necessary
    to distribute funds to the PHAs based on the methodology
    described above and must communicate to each PHA, within 45
    days of enactment, the fixed amount that will be made available
    to each PHA for calendar year 2006. Language is repeated this
    year to ensure that all funds are assigned and obligated
    expeditiously and that the Department holds no funds in
    reserve. The amount being provided in this account is the only
    source of Federal funds that may be used to renew tenant-based
    vouchers. The amounts appropriated here may not be augmented
    from any other source.
        The Committee has been made aware that the use of the May/
    June/July data may have had an adverse impact on some of the
    June PHAs or created other anomalous results. Therefore,
    language is included to set aside up to $45,000,000 within
    renewal funding for the purpose of restoring vouchers to those
    public housing entities that were severely reduced solely due
    to the snapshot of costs in the fiscal year 2005 Act and due to
    an extraordinary increase in costs from portability over the
    past year. The Secretary shall set the thresholds for each
    request for funds by a public housing and has complete
    discretion on the amount to provide, if any, after verification
    of the information provided.
        These are one-time adjustments that reset the baseline for
    the future allocation of funds and Public housing agencies must
    continue to manage their Section 8 programs on a budget basis
    established in the 2005 Appropriations Act. Yet the issue of
    portability continues to be troubling and the Department is
    instructed, prior to the submission of the 2007 budget, to
    develop and submit proposals to minimize the cost that
    portability could have on PHAs operating on a fixed annual
    budget.
        The Committee has reviewed carefully but not agreed to the
    Administration's request for a central fund. The Administration
    has not clearly identified the circumstances under which the
    funds would be made available, and its inclusion could lead
    public housing agencies to anticipate the availability of
    additional funding above their fixed budget allocation.
        The Committee encourages HUD to continue working with the
    City of Baltimore Housing Authority to identify ways that the
    City of Baltimore Housing Authority can implement the terms of
    the federal court order arising out of Bailey et al v. Housing
    Authority of Baltimore City.
        Tenant protection.--The Committee provides $165,700,000 for
    tenant protection vouchers, $4,004,000 more than enacted for
    2005 and $188,381,000 less than the Administration requested.
    The Administration's request assumed the full implementation of
    a final mandatory conversion (demolition) rule for public
    housing units that should not be rehabilitated on the basis of
    a cost benefit analysis. This rule is not going to be fully
    implemented in time to require that first time vouchers of the
    entire 30,000 units assumed. Hence, the Committee has provided
    funding for tenant protection vouchers at the historic levels
    requested for this fiscal year.
        Administrative Fees.--The Committee recommends
    $1,225,000,000 for allocation to the PHAs to conduct activities
    associated with placing and maintaining individuals under
    Section 8 assistance. This amount is $24,574,000 below the
    enacted level for 2005 and $70,408,000 below the levels
    proposed by the Administration. This reduction reflects the
    shift of contracts currently handled by HUD's financial
    management center (FMC) to the project based Section 8 program,
    and therefore no longer administered by the PHAs. The Committee
    does not include funds as requested for a contract to determine
    the appropriate and reasonable administrative fee structure.
    The proper time to readdress the issue of Administrative fee
    structures is after the Congress has implemented significant
    reforms to the administrative requirements. Until then the
    Department is instructed to allocate fees based on the pro rata
    allocation methodology used for the 2005.
        Although no assumption is made about the enactment of
    authorizing legislation to reduce the administrative burden on
    PHAs, it is reasonable for the Committee to assume that some
    immediate short-term reductions in burden can occur. Therefore,
    the Department shall provide the Committee with a list of
    administrative and regulatory changes that can be put in place
    in time to benefit PHAs for 2006, no later than September 1,
    2005.
        Family Self-Sufficiency Coordinators (FSS).--The Committee
    includes $45,000,000 for FSS coordinators, the same amount as
    enacted for 2005 and $10,000,000 less than requested by the
    Administration. Coordinators help residents link up with
    important services in the community to speed the achievement of
    self-sufficiency. The Department provided no data or other
    information to demonstrate that the number of PHAs
    participating in the FSS program would increase by more than
    50. Hence the requested increase is denied.
        Working Capital Fund.--The Committee provides the requested
    amount of $5,900,000 for transfer to the Working Capital Fund
    (WCF). In that this is a minimum amount, the Department is
    encouraged to apply whatever resources are needed to complete
    the development of a secure, scalable and workable information
    collection system so that the Department and the Congress can
    get a better understanding of the public assistance inventory.
    This should be HUD's top priority for infrastructure
    development.

                        Project-Based Rental Assistance

                         (INCLUDING TRANSFER OF FUNDS)

    Fiscal year 2006 recommendation.......................     5,088,300,000
    Fiscal year 2005 appropriation........................     5,298,272,000
    Fiscal year 2006 budget request.......................     5,072,100,000
        Comparison with fiscal year 2006 budget request...       +16,200,000
        Comparison with fiscal year 2005 appropriations...      -209,972,000

        The Project-Based Rental Assistance account (PBRA) provides
    a rental subsidy to a private landlord tied to a specific
    housing unit so that the properties themselves, rather than the
    individual living in the unit, remain subsidized. Amounts
    provided in this account include funding for the renewal of
    expiring project-based contracts, including Section 8, moderate
    rehabilitation, and single room occupancy (SRO) contracts,
    amendments to Section 8 project-based contracts, and
    administrative costs for performance-based project-based
    Section 8 contract administrators and costs associated with
    administering moderate rehabilitation and single room occupancy
    contracts.
        The Committee provides a total of $5,088,300,000 for the
    annual renewal of project-based contracts, of which
    $147,200,000 is for the costs of contract administrators and
    $1,000,000 is for the Working Capital Fund.
        This is $255,103,000 below the enacted level for fiscal
    year 2005 and is $17,000,000 above the Administration's
    Request. The Committee agrees with the Administration's request
    to use the recapture of project-based recaptures for the
    renewal of project based contracts as well as amendments
    beginning in 2006. Until now the use of excess funds from long-
    term expiring contracts has been limited to amendments.
    Therefore, the Committee agrees that no increase in new
    appropriations is necessary to meet the 2006 needs of this
    program. However, the Committee concluded that the
    Administration's assumptions concerning costs savings due to
    the rental income verification (RHIIP) and mark-to-market
    restructures is pure speculation and unsupportable. Therefore,
    savings proposed by the Administration for these activities,
    are rejected by the Committee.
        Instead, language is included in the Tenant-Based Rental
    Assistance Account that allows the Department to transfer up to
    $200,000,000 of the advance appropriation available during
    fiscal year 2006, if sufficient new funds or recaptures are not
    available when needed or the government operates under a
    continuing resolution. Prior to 2005, the project based program
    had access to the advanced appropriation during periods when
    new appropriations were not available on October 1st.
        The Committee is taking action that was not proposed by the
    Administration to protect all project-based units covered by
    HUD contracts. Language is included to permit Section 8
    performance-based contract administration funds to be available
    for performance-based contract administration for other forms
    of project-based subsidy payments such as the debt service
    subsidy paid on Sec. 236 projects and the rent subsidies
    provided Supportive Housing for the Elderly and the Disabled as
    well as the rent supplement and rental assistance payment
    programs. The Department will be permitted to use a portion of
    appropriations, in addition to recaptures, to utilize
    performance-based contract administrators to improve oversight
    and management of these other forms of project-based
    assistance.

                            HOUSING CERTIFICATE FUND

                                  (RESCISSION)

    Fiscal year 2006 recommendation................          -$2,493,600,000
    Fiscal year 2005 appropriation.................           -1,557,000,000
    Fiscal year 2006 budget request................           -2,500,000,000
        Comparison with fiscal year 2005                        +936,600,000
     appropriation.................................
        Comparison with fiscal year 2006 budget                   -6,400,000
     request.......................................

        The Committee recommends a rescission of $2,493,600,000
    from unobligated balances and carryover remaining in the
    Housing Certificate Fund from the Section 8 tenant-based and
    project-based rental assistance programs as proposed in the
    budget request.
        Language is included under this account clarifying that
    excess balances in the Housing Certificate Fund shall not be
    used to augment fiscal year 2006 funding for the tenant-based
    rental assistance. The Committee believes such practice is
    inappropriate since it results in total program spending in
    excess of the levels appropriated in the bill leading to future
    funding problems that create instability and uncertainty for
    the individuals who rely on the program and jeopardize funding
    for other important housing programs.

                          Public Housing Capital Fund

                         (INCLUDING TRANSFER OF FUNDS)

    Fiscal year 2006 recommendation.......................    $2,600,000,000
    Fiscal year 2005 appropriation........................     2,579,200,000
    Fiscal year 2006 budget request.......................     2,327,200,000
        Comparison with fiscal year 2005 appropriation....       +20,800,000
        Comparison with fiscal year 2006 budget request...      +272,800,000

        The Public Housing Capital Fund provides funding for public
    housing capital programs, including public housing development
    and modernization. Examples of capital modernization projects
    include replacing roofs and windows, improving common spaces,
    upgrading electrical and plumbing systems, and renovating the
    interior of an apartment.
        The Committee recommends a total funding level of
    $2,600,000,000, an increase of $20,080,000 above the 2005
    enacted level and $272,800,000 above the Administration's
    request. Within the amounts provided the committee directs
    that:
              --$17,000,000 is made available for Emergency Capital
            needs; the Committee continues last year's language to
            ensure that funds are used only for repairs needed due
            to an unforeseen and unanticipated emergency event or
            natural disaster event that occurs during fiscal year
            2006.
              --$24,000,000 is directed to the Resident Opportunity
            and Supportive Services, as requested by the
            Administration.
              --$11,000,000 is directed to Administrative
            receiverships, as requested for remediation of troubled
            PHAs. No funds are being provided for Technical
            Assistance based on the large build up of unobligated
            balances. The Department is expected to cover the costs
            of the fair market rents (FMR) surveys from funds
            remaining available in this account;
              --$8,820,000 is directed to the support of
            administrative and judicial receiverships, as
            requested, and
              --No less than $10,000,000 for transfer to the
            Working Capital Fund to support the development of and
            modifications to, information technology systems which
            support Public and Indian Housing (PIH) programs. This
            reflects the Committee's continued concern that
            investments must be made to correct deficiencies in PIH
            information technology systems to improve PIH's ability
            to conduct appropriate financial and management
            oversight of its programs.
        As requested, the recommendation does not designate a
    separate set-aside for the Neighborhood Networks grants because
    such activities are already an eligible use of capital funds.
        In addition the Committee does not provide funding for the
    Section 23 Lease adjustments since all Section 23 public
    housing units have already been converted to Section 8
    vouchers.
        The Department is directed to continue to provide the
    quarterly detailed reports on those PHA with obligation rates
    of less than 90 percent.

                         Public Housing Operating Fund

                         (INCLUDING TRANSFER OF FUNDS)

    Fiscal year 2006 recommendation................           $3,600,000,000
    Fiscal year 2005 appropriation.................            2,438,300,000
    Fiscal year 2006 budget request................            3,407,300,000
        Comparison with fiscal year 2005                       1,161,644,000
     appropriation.................................
        Comparison with fiscal year 2006 budget                 +192,700,000
     request.......................................

        The Public Housing Operating Fund (PHOF) subsidizes the
    costs associated with operating and maintaining public housing.
    This subsidy supplements funding received by public housing
    authorities (PHA) from tenant rent contributions and other
    income. In accordance with Section 9 of the United States
    Housing Act of 1937, as amended, funds are allocated by formula
    to public housing authorities for the following purposes:
    utility costs; anticrime and anti-drug activities, including
    the costs of providing adequate security; routine maintenance
    cost; administrative costs; and general operating expenses.
        The Committee has provided $3,600,000,000 for the Federal
    share of PHA operating expenses. This amount is $192,700,000
    greater than the Administration requested and $1,161,644,000
    greater than the enacted level for fiscal year 2005. In 2005
    the Congress enacted a one-time shift in the payment of funds
    to PHAS, which resulted in the one-time savings of almost one
    billion dollars. The Committee has restored funding for public
    housing operating subsidies to but could only do so by reducing
    other HUD programs. As requested, up to $10,000,000 may be used
    for the ``graduation bonus.''
        In 2001, Congress funded and mandated that the Department
    establish the costs of operating a well run Public Housing
    Authority. This report to the Congress, which became known as
    the Harvard Study, made several important recommendations to
    reform the current allocation formula to better align the
    allocation with the actual costs. Congress, in fiscal year 2005
    mandated that HUD and the public housing industry negotiate a
    new regulation to implement the Harvard Study. This was
    completed and a consensus report was issued on June 10, 2004.
    The PHA community entered into negotiations in good faith and
    the results were negotiated not on the basis of a specific
    dollar amount but on a more equitable distribution of the
    funds. Once transition costs are removed, the amount required
    is not significantly greater than the amounts appropriated in
    recent years. That negotiation process and the result has been
    undercut and rendered irrelevant by the Administration's
    proposed rule.
        Hence language is included that requires funds be allocated
    to the PHAs in accordance with the negotiated outcome as set
    forth in the ``Post 4th Session Rule'' signed on June 10th
    2004. In addition $50,000,000 is designated within the amounts
    provided to assist in the conversion to asset management for
    those public housing agencies that would lose more than 5
    percent in funding compared to the existing Performance Funding
    System.
        The detailed operating formula based on the instructions
    above shall be developed and submitted to the Committee in
    conjunction with or as part of the Department's Operating Plan.
        As proposed, language designating $10,000,000 for transfer
    to the Department of Justice to be allocated by the Attorney
    General through existing programs, such as Weed and Seed is not
    included in fiscal year 2006. However, all activities
    previously authorized under the public housing drug elimination
    program (PHDEP) are permissible activities under the operating
    and capital fund accounts.
        The Committee includes language, as proposed in the budget,
    restating fundamental principles of appropriations law which
    prohibits funds appropriated in this Act for fiscal year 2005
    payments from being used to supplement a prior year
    appropriation for prior year payments.
        The committee also continues language, carried in prior
    years, prohibiting funds from being used for section 9(k)
    activities. Proposed language is not included making funds
    available for two years.

         Revitalization of Severely Distressed Public Housing (Hope VI)

    Fiscal year 2006 Recommendation.......................                $0
    Fiscal year 2005 Appropriation........................       142,848,000
    Fiscal year 2006 budget request.......................      -142,848,000
        Comparison with fiscal year 2005 Appropriation....      -142,848,000
        Comparison with fiscal year 2006 budget request...      +142,848,000

        The Revitalization of Severely Distressed Public Housing
    program, also known as HOPE VI, provides competitive grants to
    public housing authorities to revitalize entire neighborhoods
    adversely impacted by the presence of badly deteriorated public
    housing projects. In addition to developing and constructing
    new affordable housing, the program provides PHAs with the
    authority to demolish obsolete projects and to provide self-
    sufficiency services for families who reside in and around the
    facility.
        The Committee does not provide funds for the HOPE VI
    program in 2006. The Administration did not request funds for
    this program. Language proposed by the Administration to
    rescind funds appropriated for 2005 is not included.
        The Committee recognizes that this program has had a varied
    and controversial history. On the one hand, the projects that
    have been completed have been successful and demonstrate what
    the program could accomplish. On the other hand, the
    Administration has provided an overwhelming case that far too
    many projects have not been completed in a timely way. Many
    funded years ago have yet to start. Currently over $2 billion
    in funds from prior years remain in a backlog and hundreds of
    vouchers have remained unused for years. Furthermore,
    resistance to the program from tenants remains strong, further
    delaying many projects.
        Most importantly, the Committee is convinced that, although
    10 years have been an important demonstration period, the per-
    unit costs of the program is too high, relative to
    alternatives, to be sustained over the long run. Yet promises
    of reform and a new long-term strategy for achieving some of
    the program's objectives has not been forthcoming.
        Therefore, the Committee believes that the best course of
    action is to reject the Administration's request to rescind the
    2005 funding making those funds available in 2006 for grant
    awards, but until a new authorization is enacted by Congress to
    revise and reform the program, no further funding is merited.

                      Native American Housing Block Grants

                         (INCLUDING TRANSFERS OF FUNDS)

    Fiscal year 2006 Recommendation.......................      $600,000,000
    Fiscal year 2005 Appropriation........................       621,984,000
    Fiscal year 2006 budget request.......................       582,600,000
        Comparison with fiscal year 2005 appropriation....       -21,984,000
        Comparison with fiscal year 2006 budget request...       +17,400,000

        The Native American Housing Block Grants program provides
    funds to Indian tribes and their tribally designated housing
    entities (TDHEs) to address housing needs within their
    communities. The block grant is designed to fund a TDHE's
    operating requirements and capital needs.
        The Committee recommends $600,000,000 for the Native
    American Block Grant and the Indian Community Development Block
    Grant Fund. This is $17,400,000 more than the Administration
    requested and $21,984,000 less than enacted in 2005. The
    Committee's recommendation to reduce funding relative to 2005
    enacted levels is based on the Administration's official
    estimate that $97,000,000 in previously appropriated funds will
    carry over into 2006.
        In 2003 when HUD began using the new 2000 Census data HUD
    shifted the basis for the needs portion of the formula
    distribution of funds from single race to the multi-race
    database. The Committee has become aware that this shift has
    caused serious disruption and the loss of funding for a
    majority of single race tribes, which benefit from the use of
    single race data. Therefore, language is included instructing
    HUD to distribute funds on the basis of single race of multi
    race data which ever is the higher amount for each recipient.
    Additional funding has been provided to ensure that no grant
    recipient will lose funding as a result of the new calculation
    of need.
        The Indian CDBG program was previously funded as a set
    aside in the Community Development Block Grant, and the
    Committee agrees with the Administration's proposal that the
    Indian CDBG program is best combined with the Native American
    Block grant and should be administered by the Office of Public
    and Indian Housing. However, as proposed, the balances
    remaining in each program shall remain separate and be
    administered separately.
        Of the amounts made available under this heading,
              --$549,342,000 is provided for the Native American
            Block Grant
              --$45,000,000 is provided for the Indian Community
            Block Grant
              --$2,000,000 is included for Section 601 loan
            guarantees, the same as enacted for FY 2005, to
            guarantee $17,900,000 in new loans. However, the
            Department is advised that loan level activity must be
            monitored to ensure that sufficient grant funds are
            available as collateral for new loans.
              --$2,308,000 is for Technical Assistance training and
            associated travel;
              --$150,000 is transferred to the Department Salary
            and Expenses account and;
              --$1,200,000 for the Native for American Indian
            Housing Council to conduct training and technical
            assistance.

                      Native Hawaiian Housing Block Grant

    Fiscal year 2006 recommendation.......................        $8,815,000
    Fiscal year 2005 appropriation........................                 0
    Fiscal year 2006 budget request.......................         8,815,000
        Comparison with fiscal year 2005 appropriation....        +8,815,000
        Comparison with fiscal year 2006 budget request...                 0

        The Hawaiian Homelands Homeownership Act of 2000 created
    the Native Hawaiian Housing Block Grant program to provide
    grants to the State of Hawaii Department of Hawaiian Home Lands
    (DHHL) for housing and housing related assistance to develop,
    maintain and operate affordable housing for eligible low-income
    Native Hawaiian families.
        The Committee recommends $8,815,000 for this program, the
    same as provided in fiscal year 2005 as a set aside under the
    Community Development Block Grant heading. The committee agrees
    to fund the program as a separate account as proposed in the
    budget. Of the amounts provided, $352,606 is for technical
    assistance.

               Indian Housing Loan Guarantee Fund Program Account

                         (INCLUDING TRANSFER OF FUNDS)

                                                              Limitation on
                                           Program account    direct Loans

    Fiscal year 2006 Recommendation.....        $2,645,000       $98,966,942
    Fiscal year 2005 appropriation......         4,960,000       145,345,000
    Fiscal year 2006 budget request.....         2,645,000        98,967,000
        Comparison with fiscal year 2005        -2,315,000       -46,378,000
     appropriation......................
        Comparison with fiscal year 2006                 0                 0
     budget request.....................

        Section 184 of the Housing and Community Development Act of
    1992 establishes a loan guarantee program for Native Americans
    to build or purchase homes on trust land. This program provides
    access to sources of private financing for Indian families and
    Indian housing authorities that otherwise cannot acquire
    financing because of the unique legal status of Indian trust
    land. This financing vehicle enables families to construct new
    homes or to purchase existing properties on reservations.
        The Committee recommends $2,645,000 in new credit subsidy
    for the Section 184 loan guarantee program, the same amount
    requested by the Administration and $2,315,000 below the fiscal
    year 2005 enacted level. This will be sufficient to guarantee
    $98,967,000 in new loans. The Committee strongly supports the
    issue of the program of loan guarantees for the purchase,
    construction or rehabilitation of single-family homes on trust
    or restricted lands. However, the Department has indicated that
    of the $4,960,000 enacted for fiscal year 2005, $3,161,000 will
    carry over into 2006. Hence in total, more resources will be
    available in fiscal year 2006 than in fiscal year 2005. Of the
    amounts made available, $250,000 is transferred to the
    Department's Salary and Expenses Account.

          Native Hawaiian Housing Loan Guarantee Fund Program Account

                         (INCLUDING TRANSFER OF FUNDS)

                                                              Limitation on
                                           Program account    direct Loans

    Fiscal year 2006 recommendation.....          $882,000       $35,000,000
    Fiscal year 2005 appropriation......           992,000        39,403,000
    Fiscal year 2006 budget request.....           882,000        35,000,000
        Comparison with Fiscal year 2005          -110,000        -2,403,000
     appropriation......................
        Comparison with Fiscal year 2006                 0                 0
     budget request.....................

        The Hawaiian Homelands Homeownership Act of 2000 created
    the Native Hawaiian Housing Loan Guarantee Fund program to
    provide loan guarantees for native Hawaiian individuals and
    their families, the Department of Hawaiian Home Lands, the
    Office of Hawaiian Affairs, and private nonprofit organizations
    experienced in the planning and in the development of
    affordable housing for Native Hawaiians for the purchase,
    construction, and/or rehabilitation of single-family homes on
    Hawaiian Home Lands. This program provides access to private
    sources of financing that would otherwise not be available
    because of the unique legal status of Hawaiian Home Lands.
        The Committee recommends $882,000 for this program the same
    as requested to guarantee a total loan volume of $35,000,000,
    the full amount requested. Language is included transferring
    $35,000 to the HUD salaries and expenses account for
    administrative expenses.

                       Community Planning and Development

                  HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS

    Fiscal year 2006 recommendation.......................      $285,000,000
    Fiscal year 2005 appropriation........................       281,751,000
    Fiscal year 2006 budget request.......................       268,000,000
        Comparison with fiscal year 2005 appropriation....        +3,272,000
        Comparison with fiscal year 2006 budget request...       +17,000,000

        The Housing Opportunities for Persons with AIDS (HOPWA)
    program is authorized by the Housing Opportunities for Persons
    with AIDS Act. This program provides States and localities with
    resources and incentives to devise long-term comprehensive
    strategies to meet the housing needs of persons with HIV/AIDS
    and their families. Ninety percent of funding is distributed by
    formula to qualifying States and metropolitan areas on the
    basis of the cumulative number and incidences of AIDS reported
    to the Centers for Disease Control. The remaining 10 percent of
    funding is distributed through a national competition.
    Government recipients are required to have a HUD-approved
    Comprehensive Plan/Comprehensive Housing Affordability Strategy
    (CHAS).
        For fiscal year 2006, the Committee recommends
    $285,000,000, an increase of $3,272,000 over the enacted levels
    for fiscal year 2005, and an increase of $17,000,000 above the
    budget request. Within the total amount provided, $1,000,000 is
    for technical assistance, training and oversight as requested.
    The Committee continues to believe that creating new housing
    opportunities for persons with AIDS should be the priority for
    HOPWA funding.
        Bill language is included, carried in previous years, which
    requires the Secretary to renew expiring permanent supportive
    housing contracts previously funded under the national
    competition, which meet all program requirements, before
    awarding new competitive grants.

                     Rural Housing and Economic Development

    Fiscal year 2006 recommendation.......................       $10,000,000
    Fiscal year 2005 appropriation........................        23,808,000
    Fiscal year 2006 budget request.......................                 0
        Comparison with fiscal year 2005 appropriation....       -13,808,000
        Comparison with fiscal year 2006 budget request...       +10,000,000

        This account provides funding to rural non-profit
    organizations, community development corporations, Indian
    tribes, State housing finance agencies, State economic
    development and/or Federally recognized community development
    agencies.
        The Committee recommends $10,000,000 funding for this
    program. The Administration requested no funds for this
    program. Most initiatives in rural economic transformation are
    and should be funded through the US Department of Agriculture
    (USDA), which has the expertise in rural economic development,
    rural housing and community stabilization. These funds are
    intended to develop innovative economic strategies.

                    Empowerment Zones/Enterprise Communities

    Fiscal year 2006 recommendation.......................                $0
    Fiscal year 2005 appropriation........................         9,920,000
    Fiscal year 2006 budget request.......................                 0
        Comparison with fiscal year 2005 appropriation....        -9,920,000
        Comparison with fiscal year 2006 budget request...                 0

        This account provides discretionary grant funding to 15
    urban Enterprise Zones and Enterprise Communities (EZ/ECs)
    designated in Round II.
        The statute that created Round II EZ/ECs did not authorize
    discretionary grant funding for these communities, but instead
    authorized tax incentives to stimulate revitalization efforts
    in these communities. However, since fiscal year 1999,
    discretionary grant funds have been provided under this
    account.
        The Committee recommends no funding for this program. The
    Administration requested no funding for this program. As the
    10-year Round II program winds down communities should use
    their remaining funds from prior year appropriations to close
    out activities funded by the grants.

                           community development fund

                         (INCLUDING TRANSFERS OF FUNDS)

    Fiscal year 2006 recommendation.......................    $4,151,500,000
    Fiscal year 2005 appropriation........................     4,671,328,000
    Fiscal year 2006 budget request.......................                 0
        Comparison with fiscal year 2005 appropriation....      -519,828,000
        Comparison with fiscal year 2005 budget request...    +4,151,500,000

        The Community Development Fund provides funding to State
    and local governments, and to other entities that carry out
    community and economic development activities under various
    programs.
        The Committee recommends a total of $4,151,500,000 for the
    Community Development Fund account, a decrease of $519,828,000
    from the amount provided in fiscal year 2005 and an increase of
    $4,151,500,000 to the fiscal year 2006 budget request.
        Of the amounts made available:
              --$3,859,900,000 is for the formula grants and the
            state share, $250,000,000 below the level enacted for
            FY 2005. The Administration proposed to eliminate this
            program. HUD is instructed to use the same methodology
            as used in FY 2005 to distribute these funds.
              --$290,000,000 for economic development initiative
            activities; and
              --$1,600,000 is transferred to the Working Capital
            Fund.
        The Committee has maintained the formula program at the
    highest possible level for fiscal year 2006, consistent with
    the need to fully fund rental assistance and operating programs
    for low income families administered by public housing
    authorities, the disabled and in spite of the Administration's
    pressure to reduce and retarget the funds to non-economic
    development activities. However, while maintaining the basic
    program intact, the Committee was not able to also maintain the
    large number of set asides for special programs and
    organizations that have been traditionally funded within this
    account.
        As a result, the Committee has recommended a significant
    reduction in the number of programs to be included as set
    asides in the Community Development Fund, and agrees that the
    Community Development Fund should focus entirely on traditional
    CDBG activities. Self-Help and other organizations that assist
    primarily in home ownership will no longer be funded as part of
    the Community Development Fund in order to maximize the amount
    to be distributed for the formula.
        In addition, the Department's renewed emphasis on
    maximizing the allocation of funds where the needs are greatest
    is undermined by the continued growth in set asides that
    diminish the amount of funds that can be distributed in this
    manner. This problem was made more acute in fiscal year 2006
    because the Committee was not able to fully fund the Community
    Development Fund at the levels provided in 2005.
        However, although many of the programs that began as one
    time funding requirements have not achieved self-sufficiency as
    hoped, the Committee does not agree with the Administration's
    proposal to terminate all funding for all set asides that were
    funded in fiscal year 2005 within the CDF. Several have been
    merged with other similar programs in HUD, as noted elsewhere
    in this report. Youthbuild is proposed by the Administration
    for transfer and merger with the Job Corps in the Department of
    Labor and therefore is not funded in this bill. Others are
    funded in a new account, which was proposed by the
    Administration solely for The Self-Help Homeownership
    Opportunity program, but which the Committee has expanded to
    include other homeownership assistance activities and
    organizations formerly funded under this heading.

             community development loan guarantees program account

                         (INCLUDING TRANSFER OF FUNDS)

                                                              Limitation on
                                            Program cost    Guaranteed loans

    Fiscal year 2006 recommendation.....                $0                $0
    Fiscal year 2005 appropriation......         5,952,000       275,000,000
    Fiscal year 2006 budget request.....                 0                 0
        Comparison with fiscal year 2005         5,952,000      -275,000,000
     appropriation......................
        Comparison with fiscal year 2006                 0                 0
     budget request;....................

        The Section 108 Loan Guarantees program underwrites private
    market loans to assist local communities in the financing of
    the acquisition and rehabilitation of publicly-owned real
    property, rehabilitation of housing, and certain economic
    development projects.
        The Committee recommends no funds for this program. No
    funds were requested by the Administration. $6,900,000 was
    enacted in fiscal year 2005 for a loan level of $275,000,000.
    While the Committee recognizes that there is a place for a non-
    competitive loan program to fill gaps in funding at the local
    level, this program is not consistent with current government
    loan principles and has not been fully utilized due to the
    reluctance to use CDBG funds as collateral. It is also somewhat
    inconsistent with HUD's attempts to refocus and a target CDBG
    grant funds to localities in the greatest need. The committee
    would welcome program changes that would reduce the loan
    guarantee below 100 percent and provide for collateral from
    non-CDBG sources of funds.

                           Brownfields Redevelopment

    Fiscal year 2006 recommendation.......................                $0
    Fiscal year 2005 appropriation........................        23,808,000
    Fiscal year 2006 budget request.......................                 0
        Comparison with fiscal year 2005 appropriation....       -23,808,000
        Comparison with fiscal year 2005 budget request...                 0

        The Brownfields Redevelopment program provides competitive
    economic development grants in conjunction with section 108
    loan guarantees for qualified Brownfields projects. Grants are
    made in accordance with section 108(q) selection criteria.
        The goal of the program is to return contaminated sites to
    productive uses with an emphasis on creating substantial
    numbers of jobs for lower-income people in physically and
    economically distressed neighborhoods.
        The Committee recommends no funding for the Brownfields
    Redevelopment Program at HUD. The Administration has requested
    no funding for the past several years. Congress enacted
    $23,808,000 in fiscal year 2005. The Committee believes that
    due to the recent dramatic increases in funding in EPA and
    expanded EPA authority in recent authorizations for this
    program, HUD funding is no longer essential or appropriate.

                      Home Investment Partnerships Program

                         (INCLUDING TRANSFER OF FUNDS)

    Fiscal year 2006 recommendation.......................    $1,900,000,000
    Fiscal year 2005 appropriation........................     1,899,680,000
    Fiscal year 2006 budget request.......................     1,941,000,000
        Comparison with fiscal year 2005 appropriation....          +320,000
        Comparison with fiscal year 2006 budget request...       -41,000,000

        The HOME investment partnerships program provides grants to
    States, units of local government, Indian tribes and insular
    areas, through formula allocation, for the purpose of expanding
    the supply of affordable housing in the jurisdiction. Upon
    receipt, State and local governments develop a comprehensive
    housing affordability strategy that enables them to acquire,
    rehabilitate, or construct new affordable housing, or to
    provide rental assistance to eligible families.
        The Committee recommends $1,900,000,000 for activities
    funded under this account, the same as enacted in fiscal year
    2005 and $41,000,000 below the request. Funds are provided as
    follows:
              --Formula Grants: $1,790,000,000 for formula grants
            for participating jurisdictions (States, units of local
            government and consortia of units of local government)
            and insular areas, an increase of $59,000,000 above the
            amount requested and $10,000,000 above the amount
            enacted for fiscal year 2005 level. Of the amount
            provided, pursuant to the statute, at least 15 percent
            of each participating jurisdiction's allocation is
            reserved for housing that is developed, sponsored, or
            owned by Community Housing Development Organizations
            (CHDOs);
              --Housing Counseling: $41,700,000 for housing
            counseling programs. The Committee has continued
            funding for this activity within this account rather
            than creating a separate account as proposed in the
            budget request;
              --HOME/CHDO Technical Assistance: $17,300,000 for
            technical assistance activities for State and local
            participating jurisdictions and non-profit CHDOs. The
            Committee notes that the HOME statute authorizes
            technical assistance to be provided through contracts
            with eligible non-profit intermediaries as well as with
            other organizations recommended by participating
            jurisdictions and therefore directs HUD to use
            $8,000,000 to contract with qualified non-profit
            intermediaries to provide CHDO technical assistance in
            fiscal year 2006;
              --Working Capital Fund: no less than $1,000,000 for
            transfer to the Working Capital Fund to support the
            development and modification of information technology
            systems that serve programs and activities under
            Community Planning and Development.
        In addition to the amounts above:
              --Down-payment Assistance Initiative: $50,000,000 for
            the Down-payment Assistance Initiative to be allocated
            by the Secretary to participating jurisdictions to
            provide down-payment assistance to low-income families
            to help them achieve homeownership. The budget request
            had included $200,000,000 for down-payment assistance.
            The amount enacted for fiscal year 2005 was
            $49,600,000.
        The Committee is concerned that recent changes to
    metropolitan statistical area (MSA) boundaries may
    significantly lower area median incomes (AMI) in some
    communities with high housing costs, making ineligible many
    families and individuals who are currently eligible for housing
    subsidized through the Community Development Block Grant
    program and the HOME program, which have AMI eligibility
    requirements. The Committee encourages HUD to explore ways to
    help such mass transition to the new AMI, other than through
    any adjustment of funding formulas, to reduce the impact of MSA
    boundary changes on affordable housing and homeownership
    opportunities.

                      Self-Help and Assisted Homeownership

    Fiscal year 2006 Recommendation.......................       $60,800,000
    Fiscal year 2005 Appropriations.......................                 0
    Fiscal year 2006 Budget Request.......................        30,000,000
        Comparison with 2005 appropriations...............        60,800,000
        Comparison with 2006 request......................        30,800,000

        The Committee recommends $60,800,000 for the Self Help
    Opportunity Program. This is a new account, which is proposed
    by the Administration to fund programs that previously have
    been funded as set asides within the Community Development Fund
    (CDF). The Administration requested $30,000,000 to fund the
    SHOP/Habitat for Humanity program. The Administration
    recommended no funding for all other programs previously
    included in the Community Development Fund.
        The Committee has expanded this account to include other
    activities, which are primarily focused on assisting low to
    moderate income families achieve homeownership and that were
    formerly funded within the Community Development Fund (CDF.)
    Most are funded at levels slightly below the fiscal year 2005
    enacted levels. Reductions recommended by the committee for
    these programs, are consistent with reductions taken in most
    HUD programs to meet rental assistance priorities. Therefore
    language is included that provides:
              --$23,800,000 for the Self Help Homeownership
            Program,
              --$28,000,000 for the National Community Development
            Initiative (NCDI) for LISC and Enterprise Foundation,
            of which $1,000,000 is for capacity building activities
            administered by Habitat for Humanity and not less than
            $1,000,000, is for rural areas.
              --$3,000,000 for the Housing Assistance Council;
              --$4,000,000 for the Housing Partnership Network for
            a one-time grant to capitalize the reinsurance pool;
              --$1,000,000 for the Native American Indian Housing
            Council; and
              --$1,000,000 for the Special Olympics.

                           Homeless Assistance Grants

                         (INCLUDING TRANSFER OF FUNDS)

    Fiscal year 2006 recommendation................           $1,340,000,000
    Fiscal year 2005 appropriation.................            1,240,511,000
    Fiscal year 2006 budget request................            1,404,000,000
        Comparison with fiscal year 2005                         +99,489,000
     appropriation.................................
        Comparison with fiscal year 2006 budget                 -100,000,000
     request.......................................

        The homeless assistance grants account provides funding for
    the following homeless programs under title IV of the McKinney
    Act: (1) the emergency shelter grants program; (2) the
    supportive housing program; (3) the section 8 moderate
    rehabilitation (single room occupancy) program; and (4) the
    shelter plus care program. This account also supports
    activities eligible under the innovative homeless initiatives
    demonstration program.
        The Committee recommends funding homeless programs at
    $1,340,000,000, an increase of $99,489,000 above the enacted
    level for 2005 and $100,000,000 below the request. The
    recommendation includes no less than $238,000,000 to provide
    full funding for the costs associated with the renewal of all
    expiring Shelter Plus Care contracts. Language is included in
    the bill requiring funds to be made available for this purpose.
        The recommendation includes $11,674,000 for the national
    homeless data analysis project and for technical assistance,
    and no less than $1,000,000 for transfer to the Working Capital
    Fund for development and modifications of information
    technology systems that serve activities under Community
    Planning and Development.
        Language is included in the bill that: (1) requires not
    less than 30 percent of the funds appropriated, excluding
    amounts made available for renewals under the shelter plus care
    program, be used for permanent housing; (2) requires the
    renewal of all expiring shelter plus care contracts; (3)
    requires funding recipients to provide a 25 percent match for
    social services activities; (4) requires all homeless programs
    to coordinate their programs with mainstream health, social
    services and employment programs; and (5) provides two-year
    availability for obligation of funds provided under this
    account, except that no year availability is provided for the
    portion of funding necessary to meet initial contract
    requirements for the Single Room Occupancy program.
        Funding for the Prisoner Re-entry Initiative is not
    included since authorizing language has not been enacted.

                                Housing Programs

                            HOUSING FOR THE ELDERLY

                         (INCLUDING TRANSFER OF FUNDS)

    Fiscal year 2006 recommendation.......................      $741,000,000
    Fiscal year 2005 appropriation........................       741,000,000
    Fiscal year 2006 budget request.......................       741,000,000
        Comparison with fiscal year 2005 appropriation....                 0
        Comparison with fiscal year 2006 budget request...                 0

        The housing for the elderly (Section 202) program provides
    eligible private, non-profit organizations with capital grants
    to finance the acquisition, rehabilitation or construction of
    housing intended for low-income elderly people. In addition,
    the program provides project-based rental assistance contracts
    (PRAC) to support operational costs for units constructed under
    the program.
        The Committee recommends a $741,000,000 for the Section 202
    program for fiscal year 2005, the same levels as enacted for
    2005 and requested for 2006. The recommendation allocates
    funding as follows:
              --$656,200,000 for new capital and project rental
            assistance contracts (PRAC);
              --$10,000,000 for one-year renewals of expiring PRAC
            payments;
              --$49,600,000 for service coordinators and the
            continuation of congregate services grants;
              --$24,800,000 for grants to convert section 202
            projects to assisted living facilities; and
              --No less than $400,000 for transfers to the Working
            Capital Fund to support the development of and
            modifications to information technology systems, which
            support programs and activities for the elderly.
        Language is included, carried in prior years, relating to
    the initial contract and renewal terms for assistance provided
    under this heading. Language is also included to allow these
    funds to be used for inspections and analysis of data by HUD's
    REAC program office.

                   Housing for the Persons with Disabilities

                         (INCLUDING TRANSFER OF FUNDS)

    Fiscal year 2006 recommendation.......................      $238,100,000
    Fiscal year 2005 appropriation........................       238,100,000
    Fiscal year 2006 budget request.......................       119,900,000
        Comparison with fiscal year 2005 appropriation....                 0
        Comparison with fiscal year 2006 budget request...      +118,200,000

        The housing for the persons with disabilities (Section 811)
    program provides eligible private, non-profit organizations
    with capital grants to finance the acquisition, rehabilitation
    or construction of supportive housing for disabled persons and
    provides project-based rental assistance (PRAC) to support
    operational costs for such units. The Committee recommends a
    $238,000,000 for Section 811 activities, the same as fiscal
    year 2005 enacted level, and $118,200,000 above the request.
    The recommendation allocates funding as follows:
              --Up to $157,100,000 for capital grants and PRAC;
              --$78,300,000 for renewals or amendments of expiring
            tenant-based rental assistance;
              --$2,300,000 PRAC renewals;
              --$400,000 for transfer to the Working Capital Fund
            for the development and maintenance of information
            technology systems for programs and activities for
            housing for persons with disabilities programs; and
              --Up to $5,000,000 may be made available for
            incremental vouchers, at the Secretary's discretion.
        The Committee recommends $238,100,000 for the Section 811
    program. This is the same as the enacted level for 2005 and is
    $118,200,000 million above the Administration's request. The
    Administration proposes to eliminate funding for the
    construction of facilities that accommodate low-income disabled
    individuals arguing instead that disabled individuals prefer
    section 8 tenant based vouchers. The committee completely
    rejects this argument and has not been able to corroborate the
    Administration's claims that there is no urgent need for
    additional facilities. The Committee finds that, in fact, there
    is universal agreement at all levels of analysis that facility
    construction and vouchers are needed for this program in fiscal
    year 2006. The Administration's analysis is based on
    fundamentally flawed assumptions and blames the Department for
    following Congressional mandate.
        Language is included to allow these funds to be used for
    inspections and analysis of data by HUD's REAC program office.
    The Committee directs HUD to issue program guidance for the
    Section 811 ``mainstream'' tenant-based program by March 15,
    2006. HUD shall include guidance on: (1) targeting of rental
    assistance consistent with 811 eligibility criteria; (2)
    maintenance of these vouchers exclusively for persons eligible
    under Section 811 upon turnover; (3) retention of a meaningful
    role for non-profit disability organizations. The Committee is
    aware of concerns that funding for Section 811 tenant-based
    rental assistance may be diverted to the Section 8 voucher
    program. Such diversion would be a violation of Section 811
    statute. No more than $5,000,000 is provided for incremental
    vouchers in fiscal year 2006 given the inexorable increase in
    renewal costs that would be required in subsequent years.

                               Housing Counseling

    Fiscal year 2006 recommendation.......................                $0
    Fiscal year 2005 appropriation........................                 0
    Fiscal year 2006 budget request.......................        39,700,000
        Comparison with fiscal year 2005 appropriation....                 0
        Comparison with fiscal year 2006 budget request...       -39,700,000

        In fiscal year 2005, $39,764,000 was appropriated for
    housing counseling as a set-aside under the HOME Investments
    Partnership Program account.
        Section 106 of the Housing and Urban Development Act of
    1968 authorized HUD to provide housing counseling services to
    homebuyers, homeowners, low and moderate income renters, and
    the homeless. The Committee does not recommend the creation of
    a separate account for housing counseling activities, but
    instead has provided $41,700,000 for this activity as a set-
    aside within the HOME Investments Partnership Program account.

                             Flexible Subsidy Fund

                              (TRANSFER OF FUNDS)

        The Housing and Urban Development Act of 1968 authorized
    HUD to establish a revolving fund into which rental collections
    in excess of the established basic rents for units in Section
    236 subsidized projects are deposited. Subject to approval in
    appropriations acts, the Secretary is authorized under the
    Housing and Community Development Amendment of 1978 to transfer
    excess rent collections received after 1978 to the Troubled
    Projects Operating Subsidy program, renamed the Flexible
    Subsidy Fund.
        The Committee recommends that the account continue to serve
    as a repository of excess rental charges appropriated from the
    Rental Housing Assistance Fund. Although these resources will
    not be used for new reservations, they will continue to offset
    Flexible Subsidy outlays and other discretionary expenditures
    to support affordable housing projects.
        The recommendation includes language identical to language
    carried in prior years, to allow surplus funds derived from
    rental collections which were in excess of allowable rent
    levels to be returned to project owners only for the purposes
    of rehabilitating and renovating those properties.

                      Manufactured Housing Fees Trust Fund

    Fiscal year 2006 recommendation.......................       $12,896,000
        Offsetting collections............................        12,896,000
    Fiscal year 2005 appropriation........................        12,896,000
        Offsetting collections............................        12,896,000
    Fiscal year 2006 budget request.......................        13,000,000
        Offsetting collections............................        13,000,000
          Comparison with fiscal year 2005 appropriation..                 0
          Comparison with fiscal year 2005 budget request.              -104

        The National Manufactured Housing Construction and Safety
    Standards Act of 1974, as amended by the Manufactured Housing
    Improvement Act of 2000, authorized the Secretary to establish
    Federal manufactured home construction and safety standards for
    the construction, design, and performance of manufactured
    homes.
        All manufactured homes are required to meet the Federal
    standards, and fees are charged to producers to cover the costs
    of administering the Act.
        The Committee recommends up to $12,896,000 for the
    manufactured housing standards programs to be derived from fees
    collected and deposited in the Manufactured Housing Fees Trust
    Fund established pursuant to the Manufactured Housing
    Improvement Act of 2000. The amount recommended is the same as
    the 2006 request and the 2005 enacted level. Language contained
    in previous Acts is continued to ensure that the net
    expenditures do not exceed fee collections at the end of the
    fiscal year.

                         Federal Housing Administration

                   MUTUAL MORTGAGE INSURANCE PROGRAM ACCOUNT

                         (INCLUDING TRANSFERS OF FUNDS)

    ----------------------------------------------------------------------------------------------------------------
                                                    Limitation of        Limitation of
                                                    direct loans        guaranteed loans     Administrative expenses
    ----------------------------------------------------------------------------------------------------------------
    Fiscal year 2006 recommendation.............       $50,000,000         $185,000,000,000             $355,000,000
    Fiscal year 2005 appropriation..............        50,000,000          185,000,000,000              354,051,000
    Fiscal year 2006 budget request.............        50,000,000          185,000,000,000              355,000,000
        Comparison with fiscal year 2005                         0                        0                 +949,000
     appropriation..............................
        Comparison with fiscal year 2006 budget                  0                        0                        0
     request....................................
    ----------------------------------------------------------------------------------------------------------------

        The FHA mutual mortgage insurance program account includes
    the mutual mortgage insurance (MMI) and cooperative management
    housing insurance (CMHI) funds. This program account covers
    unsubsidized programs, primarily the single-family home
    mortgage program, which is the largest of all the FHA programs.
    The cooperative housing insurance program provides mortgages
    for cooperative housing projects of more than five units that
    are occupied by members of a cooperative housing corporation.
        The Committee recommends the following limitations on loan
    commitments in the MMI program account as follows:
    $185,000,000,000 for loan guarantees and $50,000,000 for direct
    loans. The recommendation also includes $355,000,000 for
    administrative expenses, of which $351,000,000 is transferred
    to the Salaries and expenses account, and $4,000,000 is
    transferred to the Office of Inspector General. In addition,
    $62,600,000 is provided for non-overhead administrative
    contract expenses, of which no less than $18,281,000 is
    transferred to the Working Capital Fund for development and
    modifications to information technology systems that serve
    programs or activities under Housing Programs or the Federal
    Housing Administration. Language is continued as requested and
    carried in previous years appropriating additional
    administrative expenses in certain circumstances.

                    General and Special Risk Program Account

                         (INCLUDING TRANSFERS OF FUNDS)

    ----------------------------------------------------------------------------------------------------------------
                                                Limitation of       Limitation of    Administrative
                                                direct loans      guaranteed loans      expenses       Program costs
    ----------------------------------------------------------------------------------------------------------------
    Fiscal year 2006 recommendation......         $50,000,000      $35,000,000,000      $231,400,000      $8,800,000
    Fiscal year 2005 appropriation.......          50,000,000       35,000,000,000       225,945,000       9,920,000
    Fiscal year 2006 budget request......          50,000,000       35,000,000,000       231,400,000       8,800,000
        Comparison with fiscal year 2005                    0                    0         5,455,000      -1,120,000
     appropriation.......................
        Comparison with fiscal year 2006                    0                    0                 0               0
     budget request......................
    ----------------------------------------------------------------------------------------------------------------

        The FHA general and special risk insurance (GI and SRI)
    program account includes 17 different programs administered by
    FHA. The GI fund includes a wide variety of insurance programs
    for special purpose single and multi-family loans, including
    loans for property improvements, manufactured housing, multi-
    family rental housing, condominiums, housing for the elderly,
    hospitals, group practice facilities and nursing homes. The SRI
    fund includes insurance programs for mortgages in older,
    declining urban areas that would not be otherwise eligible for
    insurance, mortgages with interest reduction payments,
    mortgages for experimental housing and for high-risk mortgagors
    who would not normally be eligible for mortgage insurance
    without housing counseling.
        The Committee recommends the following limitations on loan
    commitments for the general and special risk insurance program
    account as requested: $35,000,000,000 for loan guarantees and
    $50,000,000 for direct loans.
        As requested, the recommendation includes $8,800,000 direct
    appropriation for credit subsidy. The recommendation also
    includes $231,400,000 for administrative expenses, of which
    $211,400,000 is transferred to the Salaries and Expenses
    account and $20,000,000 is transferred to the Office of
    Inspector General. An additional $71,900,000 is provided for
    non-overhead administrative expenses, of which no less than
    $10,800,000 is transferred to the Working Capital Fund for
    development and modifications to information technology systems
    that serve activities under Housing Programs or the Federal
    Housing Administration.
        Language is continued, carried in previous years,
    appropriating additional administrative expenses in certain
    circumstances.

                    Government National Mortgage Association

    GUARANTEES OF MORTGAGE-BACKED SECURITIES LOAN GUARANTEE PROGRAM ACCOUNT

                         (INCLUDING TRANSFER OF FUNDS)

                                                                         Limitation of
                                                                        guaranteed loans     Administrative expenses

    Fiscal year 2006 recommendation...............................         $200,000,000,000              $10,700,000
    Fiscal year 2005 appropriation................................          200,000,000,000               10,609,000
    Fiscal year 2006 budget request...............................          200,000,000,000               11,360,000
        Comparison with fiscal year 2005 appropriation............                        0                  +91,000
        Comparison with fiscal year 2006 budget request...........                        0                 -660,000

        The guarantee of mortgage-backed securities program
    facilitates the financing of residential mortgage loans insured
    or guaranteed by the Federal Housing Administration (FHA), the
    Department of Veterans Affairs (VA) and the Rural Housing
    Services program. The Government National Mortgage Association
    (GNMA) guarantees the timely payment of principal and interest
    on securities issued by private service institutions such as
    mortgage companies, commercial banks, savings banks, and
    savings and loan associations that assemble pools of mortgages,
    and issues securities backed by the pools. In turn, investment
    proceeds are used to finance additional mortgage loans.
    Investors include non-traditional sources of credit in the
    housing market such as pension and retirement funds, life
    insurance companies and individuals.
        The recommendation includes a $200,000,000,000 limitation
    on loan commitments for mortgage-backed securities as
    requested, the same level provided in fiscal year 2005. The
    Committee also recommends $10,700,000 for administrative
    expenses to be transferred to the Salaries and Expenses
    account.

                        Policy Development and Research

                            RESEARCH AND TECHNOLOGY

    Fiscal year 2006 recommendation.......................       $60,600,000
    Fiscal year 2005 appropriation........................        45,100,000
    Fiscal year 2006 budget request.......................        69,700,000
        Comparison with fiscal year 2005 appropriation....       +15,464,000
        Comparison with fiscal year 2006 budget request...        -9,138,000

        The Housing and Urban Development Act of 1970 directs the
    Secretary to undertake programs of research, studies, testing,
    and demonstrations related to the HUD mission. These functions
    are carried out internally through contracts with industry,
    non-profit research organizations, and educational institutions
    and through agreements with State and local governments and
    other Federal agencies.
        The Committee recommends $60,600,000 for PD&R. The
    Administration requested $69,700,000 for PD&R under a
    restructured program content, which includes basic PD&R
    programs and Section 107 programs formerly funded as set asides
    within CDBG. In fiscal year 2005 $88,400,000 was provided for
    these same programs. Of the amounts made available, language is
    included to designate:
              --$26,562,000 for basic research, of which $750,000
            is directed to the National Academy of Sciences,
            National Research Council for a review of HUD ongoing
            research and to recommend the future of HUD's research
            program. The committee is concerned that HUD's research
            office has become largely a grant making organization
            rather than conducting leading edge research with a
            strong in house capability. The Council is directed to
            provide a report to the House and Senate Committees on
            Appropriations, prior to the submission of the
            President's fiscal year 2007 budget request that
            reviews current research priorities and makes
            recommendation on a new course of research for HUD. The
            Report should include specific recommendations and
            should examine the elimination of an in house research
            office, if the Council sees no long-term value to HUD
            specific research or that HUD related research can or
            should be done by other Departments.
              --$29,038,000 for grants to institutions of higher
            education funded under Section 107.
              --$5,000,000 for the PATH program. The Committee
            retains language included last year that exempts 50% of
            the funds provided from competition. HUD is encouraged
            to shift this program, in its entirety, including
            staff, to the Office of Housing.

                       Fair Housing and Equal Opportunity

                            FAIR HOUSING ACTIVITIES

    Fiscal year 2006 recommendation.......................       $38,800,000
    Fiscal year 2005 appropriation........................        46,128,000
    Fiscal year 2006 budget request.......................        38,800,000
        Comparison with fiscal year 2005 appropriation....        -7,328,000
        Comparison with fiscal year 2006 budget request...                 0

        The Fair Housing Act, title VIII of the Civil Rights Act of
    1968, as amended by the Fair Housing Amendments Act of 1988,
    prohibits discrimination in the sale, rental and financing of
    housing and authorizes assistance to State and local agencies
    in administering the provision of fair housing statutes. The
    Fair Housing Assistance Program (FHAP) assists State and local
    fair housing enforcement agencies that are certified by HUD as
    ``substantially equivalent'' to HUD with respect to enforcement
    policies and procedures. FHAP assures prompt and effective
    processing of complaints filed under title VIII that are within
    the jurisdiction of State and local fair housing agencies. The
    Fair Housing Initiatives Program (FHIP) alleviates housing
    discrimination by providing support to private nonprofit
    organizations, State and local government agencies and other
    nonfederal entities for the purpose of eliminating or
    preventing discrimination in housing, and to enhance fair
    housing opportunities.
        The Committee recommends a total of $38,800,000 for this
    account, a decrease of $7,328,000 below the fiscal year 2005
    enacted level and the same as the budget request.
        Of this amount, $22,700,000 is for FHAP and $16,100,000 is
    for FHIP.
        The Committee expects HUD to continue to provide quarterly
    reports on obligation and expenditure of these funds,
    delineated by each program and activity.
        Language is included, carried in previous years,
    designating the amount available for FHIP.

                         Office of Lead Hazard Control

                             LEAD HAZARD REDUCTION

    Fiscal year 2006 recommendation.......................      $119,000,000
    Fiscal year 2005 appropriation........................       166,656,000
    Fiscal year 2006 budget request.......................       119,000,000
        Comparison with fiscal year 2005 appropriation....       -47,656,000
        Comparison with fiscal year 2006 budget request...                 0

        The Lead Hazard Reduction Program, authorized under the
    Housing and Community Development Act of 1992, provides grants
    to State and local governments to perform lead hazard reduction
    activities in housing occupied by low-income families. The
    program also provides technical assistance, undertakes research
    and evaluations of testing and cleanup methodologies, and
    develops technical guidance and regulations in cooperation with
    EPA.
        The Committee recommends $119,000,000 for this account, the
    same as requested. Amounts provided are to be allocated as
    follows:
              --$92,600,000 for the lead-based paint hazard control
            grant program to provide assistance to State and local
            governments and Native American tribes for lead-based
            paint abatement in private low-income housing;
              --$8,800,000 for Operation LEAP (Lead Elimination
            Action Program), which provides competitive grants to
            non-profit organizations and the private sector for
            activities, which leverage funds for local lead hazard
            control programs;
              --$8,800,000 for technical assistance and support to
            State and local agencies and private property owners.
            This is an increase of $100,000 over the budget
            request;
              --$8,800,000 for the Healthy Homes Initiative for
            competitive grants for research, standards development,
            and education and outreach activities to address lead-
            based paint poisoning and other housing-related
            diseases and hazards;
        Language is included, as requested by the Administration,
    delegating the authority and responsibility for performing
    environmental review for the Healthy Homes Initiative, LEAP,
    and Lead Technical Studies projects and programs to
    governmental entities that are familiar with local
    environmental conditions, trends and priorities. This delegated
    environmental review authority is currently available in the
    CDBG, HOPWA, SHOP, SHP, and special projects programs.
        The Committee reminds the Department that all funding
    provided under this heading is to be competitively awarded as
    required under the HUD Reform Act of 1989 and Section 305 under
    Administrative Provisions under this title.

                         Management and Administration

                             SALARIES AND EXPENSES

                         (INCLUDING TRANSFER OF FUNDS)

    2006 recommendation...................................      $579,000,000
    Transfers FHA/GNMA....................................       573,535,000
        Total.............................................     1,152,535,000
    Fiscal Year 2005 appropriation........................       542,800,000
    Transfers.............................................       568,200,000
    Fiscal Year 2006 budget request.......................       579,000,000
    Transfers.............................................       573,135,000
          Total...........................................     1,152,519,000
        Comparison with Fiscal year 2005 appropriation;...       +36,181,000
        Comparison with Fiscal year 2005 budget request;..           +16,000

        A single appropriation has been provided to finance all
    salaries and related costs associated with administering the
    programs of the Department of Housing and Urban Development,
    except the Office of Inspector General and the Office of
    Federal Housing Enterprise Oversight. These activities include
    housing, mortgage credit and secondary market programs
    community planning and development programs, departmental
    management, legal services, and field direction and
    administration.
        The Committee recommends total funding of $1,152,100,000
    for the salaries and expenses of the Department, the same level
    requested.
        The committee has provided funding based for the
    Department's requested level of FTEs and object classes. The
    Department is limited to the object class levels that are
    described in the 2006 Congressional Budget Submission (page I-
    4.) This is the distribution that HUD must use unless changes
    are granted as part of the Department's Operating Plan.
        Language is included to allow the department to transfer up
    to $15,000,000 from the S&E Account to the Working Capital Fund
    after receipt and approval of an Operating Plan change
    detailing the uses of the transfers and the object classes
    being reduced in this account.
        However, the Committee notes that the disparity between the
    true workload number as defined by the REAP process and the
    number of FTEs requested suggests that the workload model is
    not much more than a theoretical construct adhered to in the
    abstract rather than in practice. More importantly, the REAP
    process is forcing the allocation of FTEs to be prorated across
    program areas and administrative offices alike in order to meet
    the ceiling established by the funding. This is not a
    successful long term staffing plan. Therefore, the Committee is
    instructing the department to seek outside expertise to study
    alternatives and develop a new long-range staffing plan that
    will significantly reduce or offload overhead and
    administrative functions, activities and offices in order to
    preserve or increase the allocation of FTEs in program offices
    that deliver or oversee Congressionally mandated and funded
    programs. This new staffing plan should be submitted to the
    Committee no later than August 1, 2005.
        To better manage and facilitate the allocation of resources
    to field offices, language is included instructing the
    department to change the mechanism by which field offices are
    provided funds for activities in the object classes for
    supplies. Funding included for indemnities is at the requested
    level but is further limited to non-programmatic litigation and
    is limited to the payment of attorney fees only. Program-
    related litigation must be paid for from the individual program
    office Salary and Expenses allocation. Beginning in fiscal year
    2007 the Congressional submission must include program-related
    litigation costs as a separate line item request.
        Operating Plans/Reprogramming Requirements.--All
    Departments within the Subcommittee's jurisdiction are required
    to submit operating plans and reprogramming letters and
    reorganization proposals for Committee approval. HUD is
    reminded that operating plans or reprogramming requirements
    apply to any reallocation of resources totaling more than
    $500,000 among any program, project or activity as well as to
    any significant reorganization within offices or the proposed
    creation or elimination of any program or office, regardless of
    the dollar amount involved; and any reorganization, regardless
    of the dollar amount involved. Object classification changes
    above $500,000 also are subject to operating plan or
    reprogramming requirements. Unless otherwise specified in this
    Act or the accompanying report, the approved level for any
    program, project, or activity is that amount detailed for that
    program, project, or activity in the Department's annual
    detailed Congressional submission. These requirements apply to
    all funds provided to the Department. The Department is
    expected to make any necessary changes during fiscal year 2006
    to its current procedures and systems to ensure that it is able
    to meet the necessary operating plan and reprogramming
    requirements applied to other agencies funded in the bill.
        Budget Submission--. The Committee expects the Department's
    fiscal year 2007 submission to be submitted in the identical
    format and continues its direction that strategic planning
    documents, formats or materials are not to be incorporated into
    the submission. Language has been continued under
    Administrative Provisions, carried since fiscal year 2004,
    setting forth such requirements.
        Language is included in the bill, similar to language
    carried in prior Acts, which designates amounts provided from
    various accounts for salaries and expenses and which requires
    the department to implement appropriate funds control and
    financial management procedures. Language carried in previous
    years regarding limitations on certain positions at the
    department is deleted as proposed in the budget.

                              Working Capital Fund

    Fiscal year 2006 recommendation.......................      $165,000,000
    Fiscal year 2005 appropriation........................       267,840,000
    Fiscal year 2006 budget request.......................       265,000,000
        Comparison with fiscal year 2005 appropriation....      -102,840,000
        Comparison with fiscal year 2006 budget request...      -100,000,000

        The Working Capital Fund was established pursuant to 42
    U.S.C. 3535 to provide necessary capital for the development
    of, modifications to, and infrastructure for Department-wide
    information technology systems, and for the continuing
    operation of both Department-wide and program-specific
    information technology systems.
        The Committee recommends $165,000,000 in direct
    appropriation for the Working Capital Fund to support
    Department-wide information technology system activities, a
    reduction of $102,840,000 below the fiscal year 2005 level and
    $100,000,000 below the request. In addition to the direct
    appropriation for Department-wide systems, funds are
    transferred from various accounts to be used exclusively for
    program-specific information technology requirements.
        The Committee has included language that precludes the use
    of these or any other funds appropriated previously to the WCF
    or program offices for transfer to the WCF that would be used
    or transferred to any other entity in HUD or elsewhere for the
    purposes of implementing Administration's ``e-Gov'' initiative
    without the Committee's approval in HUD's operating plan. The
    Committee is on record that funds appropriated for specific
    projects and activities should not be reduced or eliminated in
    order to fund other activities inside and outside of HUD
    without the expressed approval of the Committee. HUD is not to
    contribute or participate in activities that were specifically
    precluded in legislation, unless the Committee agrees to a
    change.
        The Committee has reduced funding from the request because
    the request was submitted before the successful resolution of
    the Department's HITS contract dispute. Hence the budget
    request, which assumed that the dispute would continue, is no
    longer applicable. Full funding for the new contract has been
    included based on HUD's latest estimate of the final contract's
    costs.
        The Committee remains committed to improving HUD's
    information technology capacity. To a large extent, both HUD's
    and Congress' ability to oversee the effectiveness of HUD's
    programs is undermined due to the failure of HUD's information
    systems to provide the information necessary to assess program
    performance and ensure effective resource management. The
    Committee continues to have concerns regarding the Department's
    progress in implementing several of its major information
    technology projects. The Department is directed to provide an
    updated five-year IT plan consistent with such format no later
    than November 15, 2005. In addition, the Department is directed
    to submit to the Committee no later than September 15, 2005 a
    report on updating the status of, funds spent to date, and
    estimated fiscal year 2005 funding requirements for the
    following major projects: PIH Information Center (PIC), FHA
    Subsidiary Ledger, HUD Integrated Financial Management
    Improvement Project (HIFMIP), and the Single Family Integration
    System. Such report shall include a comparison to the
    information submitted to the Committee on November 15, 2005.

                          Office of Inspector General

                         (INCLUDING TRANSFERS OF FUNDS)

    ----------------------------------------------------------------------------------------------------------------
                                                                  Appropriation       FHA funds           Total
    ----------------------------------------------------------------------------------------------------------------
    Fiscal year 2006 recommendation...........................       $79,000,000       $24,000,000      $103,000,000
    Fiscal year 2005 appropriation............................        79,360,000        24,000,000       103,360,000
    Fiscal year 2006 request..................................        79,000,000        24,000,000       103,000,000
        Comparison with fiscal year 2005 appropriation........          -300,000                 0          -360,000
        Comparison with fiscal year 2006 budget request.......                 0                 0                 0
    ----------------------------------------------------------------------------------------------------------------

        The Office of Inspector General provides agency-wide audit
    and investigative functions to identify and correct management
    and administrative deficiencies that create conditions for
    existing or potential instances of fraud, waste and
    mismanagement. The audit function provides internal audit,
    contract audit, and inspection services. Contract audits
    provide professional advice to agency contracting officials on
    accounting and financial matters relative to negotiation,
    award, administration, re-pricing and settlement of contracts.
    Internal audits evaluate all facets of agency operations.
    Inspection services provide detailed technical evaluations of
    agency operations. The investigative function provides for the
    detection and investigation of improper and illegal activities
    involving programs, personnel and operations.
        The Committee recommends $103,000,000 for the Office of
    Inspector General, a decrease of $360,000 below the amount
    provided in fiscal year 2005 and the same as the budget
    request. Of this amount, $24,000,000 is derived from transfers
    from FHA funds.
        Language is included in the bill, similar to language
    carried in prior Acts, which: (1) designates amounts available
    to the Inspector General from other accounts; and (2) clarifies
    the authority of the Inspector General with respect to certain
    personnel issues.
        The Committee has become aware that the IG has advocated
    forcing HUD to rescind obligated balances for project based
    contracts that have already received appropriations and which
    are obligated on live contracts. The Committee is strongly
    opposed to the rescission of funds that may still be needed in
    the future and which, if enacted, could force the Committee to
    appropriate funds a second time.
        This situation has now occurred in the Section 236 program
    with amounts rescinded in fiscal year 2005 declared in excess
    only to have appropriations required in fiscal year 2006. The
    IG is instructed to identify, in any audit or non-audit related
    decision, recommendation or conclusion that refers to excess
    funds available for rescission, those funds, which are
    obligated on live contracts. Further the IG is to include in
    its operating plan any proposed evaluation of live programs,
    contracts or projects instituted for the purpose of identifying
    excess funds for rescission.
        The Committee also recommends language that precludes the
    audit of GNMA on any terms and conditions other than those
    currently in effect, and which have been in effect for years.
    GNMA does not belong under credit reform rules and has never
    been subjected to those rules in any previous audit.
        The Committee directs the IG to increase its audits and
    investigative efforts related to Public Housing Agencies'
    administration of the Section 8 voucher program. The Committee
    requests that the IG provide a work plan for these activities
    no later than January 1, 2006.

      office of federal housing enterprise oversight salaries and expenses

                         (INCLUDING TRANSFER OF FUNDS)

    Fiscal year 2006 recommendation......................        $60,000,000
    Fiscal year 2005 appropriation.......................         58,735,000
    Fiscal year 2006 budget request......................         60,000,000
        Comparison with fiscal year 2005 appropriation...         +1,265,000
        Comparison with fiscal year 2005 budget request..                  0

        The Office of Federal Housing Enterprise Oversight (OFHEO)
    was established in 1992 to regulate the financial safety and
    soundness of the two housing government-sponsored enterprises
    (GSEs)--the Federal National Mortgage Association (Fannie Mae)
    and the Federal Home Loan Mortgage Corporation (Freddie Mac).
    The office was authorized in the Federal Housing Enterprises
    Financial Safety and Soundness Act of 1992, which also provided
    the regulator enhanced authority to enforce these standards. In
    addition to financial regulation, the OFHEO monitors the GSEs
    compliance with affordable housing goals that were contained in
    the Act.
        The Committee recommends a total of $60,000,000 for OFHEO,
    as requested and to be derived from fees assessed to the GSEs
    and deposited into the Federal Housing Enterprises Oversight
    Fund.
        OFHEO received an additional $5 million in 2005
    supplemental funds, which will be available to augment the 2006
    appropriation.

                           Administrative Provisions

        The bill contains a number of administrative provisions.
        Section 301 relates to the division of financing adjustment
    factors, as requested.
        Section 302 prohibits available funds from being used to
    investigate or prosecute lawful activities under the Fair
    Housing Act, which was proposed for deletion.
        Section 303 continues language to correct an anomaly in the
    HOPWA formula that results in the loss of funds for certain
    States.
        Section 304 authorizes the Secretary to waive certain
    requirements related to an assisted living pilot project, as
    requested.
        Section 305 continues language requiring funds appropriated
    to be distributed on a competitive basis in accordance with the
    Department of Housing and Urban Development Reform Act of 1989.
        Section 306 continues language, carried in previous years,
    regarding the availability of funds subject to the Government
    Corporation Control Act and the Housing Act of 1950.
        Section 307 continues language, carried in previous years,
    regarding allocation of funds in excess of the budget
    estimates.
        Section 308 continues language, carried in previous years,
    regarding the expenditure of funds for corporations and
    agencies subject to the Government Corporation Control Act.
        Section 309 continues language, carried in previous years,
    requiring submission of a spending plan for technical
    assistance, training and management improvement activities
    prior to the expenditure of funds.
        Section 310 continues language requiring the Secretary to
    provide quarterly reports on uncommitted, unobligated and
    excess funds in each departmental program and activity.
        Section 311 continues language requiring the Secretary to
    maintain Section 8 assistance on certain properties occupied by
    elderly or disabled families.
        Section 312 extends a technical amendment included in the
    fiscal year 2000 Appropriations Act relating to the allocation
    of HOPWA funds in the Philadelphia and Raleigh-Cary
    metropolitan areas. A proviso is added to allow a state to
    administer the HOPWA program in the event that a local
    government is unable to undertake the HOPWA grants management
    functions.
        Section 313 continues language allowing the Secretary to
    maintain and dispose of certain elderly and disabled projects
    upon foreclosure.
        Section 314 continues language requiring HUD to report on
    voucher utilization and costs.
        Section 315 continues language setting certain requirements
    for the Department's annual congressional justification of
    appropriations.
        Section 316 continues language carried in previous years
    elsewhere in this title requiring public housing authorities to
    continue to reserve incremental vouchers funded in previous
    years for persons with disabilities upon turnover.
        Section 316 clarifies an equitable title issue for the
    Section 202 program.
        Section 317 relates to state authority regarding
    participation on housing boards.
        Section 318 continues language in previous acts specifying
    the allocation of Indian Block grants to Native Alaskan
    recipients.
        Section 319 requires that the 2005 audit of the National
    Mortgage Association continue in its current business-oriented
    format.
        Section 320 includes language to clarify the use of
    mortgage insurance with respect to health care facilities.
        Section 321 requires that the holders of mortgages in the
    Section 236 program submit invoices electronically.
        Section 322. The new definition of nonprofit organization
    was enacted on December 27, 2000. The amendment clarifies that
    the projects selected by HUD for Section 202b assistance prior
    to December 1, 2003 are also be eligible to use the limited
    partnership ownership structure. No more than three commercial
    properties are authorized to receive grants under section 202b
    of the Housing Act of 1959.
        The Committee does not recommend several new administrative
    provisions requested in the budget to amend various housing
    authorization statutes.

                            TITLE IV--THE JUDICIARY

        The funds recommended by the Committee in Title IV of the
    accompanying bill are for the operation and maintenance of
    United States Courts and include the salaries of judges,
    magistrates, probation and pretrial services officers, and
    supporting personnel and other expenses of the Federal
    Judiciary.
        In addition to direct appropriations, the Judiciary
    collects fees and has various carryover authorities. The
    Judiciary uses these non-appropriated funds to offset its
    direct appropriation requirements. Consistent with prior year
    practices, the Committee expects the Judiciary to submit a
    financial plan, allocating all sources of available funds
    including appropriations, fee collections, and carryover
    balances. The Judiciary should consider this financial plan to
    be the baseline for determining if reprogramming notification
    is required. The Committee expects the plan to be submitted
    within 45 days after enactment of this Act.

                       Supreme Court of the United States

                             SALARIES AND EXPENSES

    Appropriation, fiscal year 2005.......................       $57,372,000
    Budget request, fiscal year 2006......................        60,730,000
    Recommended in the bill...............................        60,730,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        +3,358,000
        Budget request, fiscal year 2006..................  ................

        The Committee recommends an appropriation of $60,730,000
    for fiscal year 2005 for the salaries and expenses of personnel
    and the cost of operating the Supreme Court, excluding the care
    of the building and grounds. The recommendation is $3,358,000
    above the fiscal year 2005 level and is the same as the request
    for this account. The recommendation provides inflationary and
    other standard adjustments and supports additional security
    staff to support operations of the Court. The Committee expects
    this funding will be more than sufficient to provide for
    security needs for the foreseeable future.
        The Committee has included bill language making $2,000,000
    available until expended for the purpose of making information
    technology investments. The Committee directs the Supreme Court
    to provide an annual report, to be included in its budget
    justification materials, showing information technology carry-
    over balances and describing each expenditure made in the
    previous fiscal year.
        As noted in the fiscal year 2005 and 2006 budget hearings
    for the Supreme Court, the Committee wants to ensure that the
    public is provided sufficient insight into the Supreme Court's
    operations. The Committee commends the Supreme Court and the
    American Bar Association for posting transcripts of proceedings
    and certain briefs on the Internet.

                        Care of the Building and Grounds

    Appropriation, fiscal year 2005.......................        $9,846,000
    Budget request, fiscal year 2006......................         5,624,000
    Recommended in the bill...............................         5,624,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        -4,222,000
        Budget request, fiscal year 2006..................  ................

        The Committee recommends an appropriation of $5,624,000 for
    fiscal year 2006 for personnel and other services relating to
    the Supreme Court building and grounds, which is supervised by
    the Architect of the Capitol (AoC). The recommendation is the
    same as the request and $4,222,000 below the fiscal year 2005
    level. The Committee appreciates the restraint the Supreme
    Court has shown in adhering to its construction budget and
    schedule, and urges the Supreme Court and the AoC to remain
    diligent in their efforts to control the costs of the project.
    However, if any changes to the scope of the original project
    are made, the Committee expects to be informed. Language in the
    bill allows funds to remain available until expended.

             United States Court of Appeals for the Federal Circuit

                             SALARIES AND EXPENSES

    Appropriation, fiscal year 2005.......................       $21,520,000
    Budget request, fiscal year 2006......................        26,462,000
    Recommended in the bill...............................        24,613,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        +3,350,000
        Budget request, fiscal year 2006..................        -1,849,000

        The Committee recommends an appropriation of $24,613,000
    for fiscal year 2006 for the salaries and expenses of the
    United States Court of Appeals for the Federal Circuit. The
    recommendation is $3,350,000 above the fiscal year 2005
    appropriation and $1,849,000 below the request.
        The recommendation includes funding for inflationary
    adjustments and increased contractual costs for Court Security
    Officers. The Committee denies funding for all requested
    program increases.

                   United States Court of International Trade

                             SALARIES AND EXPENSES

    Appropriation, fiscal year 2005.......................       $14,713,000
    Budget request, fiscal year 2006......................        15,480,000
    Recommended in the bill...............................        15,480,000
    Bill compared with:                                     ................
        Appropriation, fiscal year 2005...................          +767,000
        Budget request, fiscal year 2006..................  ................

        The Committee recommends an appropriation of $15,480,000
    for fiscal year 2006 for the salaries and expenses of the
    United States Court of International Trade. The Committee
    recommendation is the same as the budget request and $767,000
    above the fiscal year 2005 level.

        Courts of Appeals, District Courts, and Other Judicial Services

                             SALARIES AND EXPENSES

    Appropriation, fiscal year 2005................           $4,125,321,000
    Budget request, fiscal year 2006...............            4,460,939,000
    Recommended in the bill........................            4,348,780,000
    Bill compared with:
        Appropriation, fiscal year 2005............             +223,459,000
        Budget request, fiscal year 2006...........             -112,159,000

        The Committee recommends an appropriation of $4,348,780,000
    for the operations of the regional courts of appeals, district
    courts, bankruptcy courts, the Court of Federal Claims, and
    probation and pretrial services offices. The recommendation is
    $112,159,000 below the request and $223,459,000 above the
    fiscal year 2005 appropriation.
        The Committee understands that the Judiciary's staffing,
    operations and maintenance, and information technology
    resources are allocated to the courts according to formulas
    used to equitably distribute resources based on the actual
    workload of each district. The Committee believes this is the
    optimal method of making such allocations and expects the
    Judiciary to continue to allocate its resources using the
    formulas approved by the Judicial Conference. The Committee
    also expects the Administrative Office to periodically update
    the formulas to ensure their accuracy.

                     vaccine injury compensation trust fund

    Appropriation, fiscal year 2005.......................        $3,254,000
    Budget request, fiscal year 2006......................         3,833,000
    Recommended in the bill...............................         3,833,000
    Bill compared with:
        Appropriation, fiscal year 2005...................          +579,000
        Budget request, fiscal year 2006..................  ................

        The Committee recommends a reimbursement of $3,833,000 for
    fiscal year 2006 from the Special Fund to cover expenses of the
    Claims Court associated with processing cases under the
    National Childhood Vaccine Injury Act of 1986. This amount is
    $579,000 above the amount available in fiscal year 2005 and
    equal to the request.

                               DEFENDER SERVICES

    Appropriation, fiscal year 2005.......................      $667,351,000
    Budget request, fiscal year 2006......................       768,064,000
    Recommended in the bill...............................       721,919,000
    Bill compared with:
        Appropriation, fiscal year 2005...................       +54,568,000
        Budget request, fiscal year 2006..................       -46,145,000

        The Committee recommends an appropriation of $721,919,000
    for fiscal year 2006. The recommendation is $54,568,000 above
    the fiscal year 2005 level and $46,145,000 below the request.
        This account provides funding for the operation of the
    Federal Public Defender and Community Defender organizations
    and for compensation and reimbursement of expenses of panel
    attorneys appointed pursuant to the Criminal Justice Act (CJA)
    for representation in criminal cases.

                        FEES OF JURORS AND COMMISSIONERS

    Appropriation, fiscal year 2005.......................       $60,713,000
    Budget request, fiscal year 2006......................        71,318,000
    Recommended in the bill...............................        60,053,000
    Bill compared with:
        Appropriation, fiscal year 2005...................          -660,000
        Budget request, fiscal year 2006..................       -11,265,000

        The Committee recommends an appropriation of $60,053,000
    for payments to jurors, which is $660,000 below the fiscal year
    2005 level and $11,265,000 below the request. The Committee
    does not provide the $10,000,000 requested for payments to
    jurors for cases related to the recent Supreme Court Booker/
    Fanfan decision based on reports from the Judiciary that these
    funds are not needed.

                                 COURT SECURITY

    Appropriation, fiscal year 2005.......................      $327,565,000
    Budget request, fiscal year 2006......................       389,626,000
    Recommended in the bill...............................       379,461,000
    Bill compared with:
        Appropriation, fiscal year 2005...................       +51,896,000
        Budget request, fiscal year 2006..................       -10,165,000

        The Committee recommends an appropriation of $379,461,000
    for Court Security for fiscal year 2006 to provide for
    necessary expenses of security and protective services for the
    United States Courts in courtrooms and adjacent areas. This is
    an increase of $51,896,000 above the fiscal year 2005 level and
    $10,165,000 below the request. The Committee has made this
    reduction in consultation with the Judiciary, which has
    indicated costs for court security officers will be less than
    originally anticipated.
        The recommendation provides for inflationary increases, for
    additional equipment and security systems, and for new contract
    court security officers. The recommendation also funds the
    program increase for additional staff to assist the USMS in
    managing the judicial facility security program as well as home
    security programs for Federal judges.
        Bill language is included allowing up to $15,000,000 to
    remain available until expended.

               Administrative Office of the United States Courts

                             SALARIES AND EXPENSES

    Appropriation, fiscal year 2005.......................       $67,289,000
    Budget request, fiscal year 2006......................        72,198,000
    Recommended in the bill...............................        70,262,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        +2,973,000
        Budget request, fiscal year 2006..................        -1,936,000

        The Committee recommends an appropriation of $70,262,000
    for the salaries and expenses of the Administrative Office of
    the United States Courts (AO), which is $2,973,000 above the
    fiscal year 2005 level and $1,936,000 below the request.
        The AO provides administrative and management support to
    the United States Courts, including the probation and
    bankruptcy systems. It also supports the Judicial Conference of
    the United States in determining Judiciary policies, developing
    methods to allow the courts to conduct business efficiently and
    economically, and enhancing the use of information technology
    in the courts.

                            Federal Judicial Center

                             SALARIES AND EXPENSES

    Appropriation, fiscal year 2005.......................       $21,447,000
    Budget request, fiscal year 2006......................        22,876,000
    Recommended in the bill...............................        22,249,000
    Bill compared with:
        Appropriation, fiscal year 2005...................          +802,000
        Budget request, fiscal year 2006..................          -627,000

        The Committee recommends an appropriation of $22,249,000
    for the salaries and expenses of the Federal Judicial Center
    for fiscal year 2006, which is $802,000 above the fiscal year
    2005 level and $627,000 below the request.
        The Center improves the management of Federal judicial
    dockets and court administration through education for judges
    and staff, and research, evaluation, and planning assistance
    for the courts and the Judicial Conference.

                           Judicial Retirement Funds

                        PAYMENT TO JUDICIARY TRUST FUNDS

    Appropriation, fiscal year 2005.......................       $36,700,000
    Budget request, fiscal year 2006......................        40,600,000
    Recommended in the bill...............................        40,600,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        +3,900,000
        Budget request, fiscal year 2006..................  ................

        The Committee provides $40,600,000 for payments to the
    Judicial Officers' Retirement Fund, the Judicial Survivors'
    Annuities Fund, and the Claims Court Judges Retirement Fund for
    fiscal year 2006. This amount is the same as the budget request
    and $3,900,000 above the fiscal year 2005 level. These payments
    are considered mandatory for budget scorekeeping purposes.
        These funds cover the estimated annuity payments to be made
    to retired bankruptcy judges, magistrate judges, Claims Court
    judges, and spouses and dependent children of deceased judicial
    officers.

                      United States Sentencing Commission

                             SALARIES AND EXPENSES

    Appropriation, fiscal year 2005.......................       $13,126,000
    Budget request, fiscal year 2006......................        14,700,000
    Recommended in the bill...............................        14,046,000
    Bill compared with:
        Appropriation, fiscal year 2005...................          +920,000
        Budget request, fiscal year 2006..................          -654,000

        The Committee recommends $14,046,000 for the salaries and
    expenses of the United States Sentencing Commission for fiscal
    year 2006, which is $920,000 above the fiscal year 2005
    appropriation and $654,000 below the request.
        The purpose of the Commission is to establish, review, and
    revise sentencing guidelines, policies, and practices for the
    Federal criminal justice system. The Commission is also
    required to monitor the operation of the guidelines and to
    identify and report necessary changes to the Congress.

                    Administrative Provisions--The Judiciary

        Sec. 401. The Committee continues language to permit funds
    in the bill for salaries and expenses for the Judiciary to be
    available for employment of experts and consultant services as
    authorized by 5 U.S.C. 3109.
        Sec. 402. The Committee continues language that permits up
    to 5 percent of any appropriation made available for fiscal
    year 2006 to be transferred between Judiciary appropriations
    accounts provided that no appropriation shall be decreased by
    more than 5 percent or increased by more than 10 percent by any
    such transfer except in certain circumstances. In addition, the
    language provides that any such transfer shall be treated as a
    reprogramming of funds under section 810 of the accompanying
    bill and shall not be available for obligation or expenditure
    except in compliance with the procedures set forth in that
    section.
        Sec. 403. The Committee continues language authorizing not
    to exceed $11,000 to be used for official reception and
    representation expenses incurred by the Judicial Conference of
    the United States.

                         TITLE V--DISTRICT OF COLUMBIA

                                Federal Payments

                  Federal Payment for Resident Tuition Support

    Appropriation, fiscal year 2005.......................       $25,359,000
    Budget request, fiscal year 2006......................        33,200,000
    Recommended in the bill...............................        33,200,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        +7,805,000
        Budget request, fiscal year 2006..................  ................

        The Committee recommends a Federal payment of $33,200,000
    for the resident tuition support program, $7,805,000 above the
    fiscal year 2005 appropriation and the same as the budget
    request. These funds are to be used on behalf of eligible
    District of Columbia residents to pay an amount based upon the
    difference between in-State and out-of-State tuition at
    eligible public and private institutions of higher education.
        The program was created by the District of Columbia College
    Access Act of 1999 to provide District college-bound students
    the opportunity to expand their higher education choices. The
    program receives its funding through a Federal appropriation
    which is deposited into a dedicated account under the control
    of the District of Columbia Chief Financial Officer.

           Federal Payment for Emergency Planning and Security Costs

    Appropriation, fiscal year 2005.......................       $14,880,000
    Budget request, fiscal year 2006......................        15,000,000
    Recommended in the bill...............................        15,000,000
    Bill compared with:
        Appropriation, fiscal year 2005...................          +120,000
        Budget request, fiscal year 2006..................  ................

        The Committee recommends a Federal payment of $15,000,000
    for emergency planning and security costs, $120,000 above the
    fiscal year 2005 appropriation and the same as the President's
    request. These funds are for emergency planning and security
    costs related to the presence of the Federal government in the
    District of Columbia and surrounding jurisdictions.

               Federal Payment to the District of Columbia Courts

    Appropriation, fiscal year 2005.......................      $189,274,000
    Budget request, fiscal year 2006......................       221,693,000
    Recommended in the bill...............................       221,693,000
    Bill compared with:
        Appropriation, fiscal year 2005...................       +32,419,000
        Budget request, fiscal year 2006..................  ................

        The Committee recommends a Federal payment of $221,693,000
    for operation of District of Columbia Courts, including the
    Family Court, $32,419,000 above the fiscal year 2005
    appropriation and the same as the President's request. This
    amount includes $9,198,000 for the Court of Appeals,
    $87,342,000 for the Superior Court, $41,643,000 for the Court
    System, and $83,510,000 for capital improvements to courthouse
    facilities.

              Defender Services in the District of Columbia Courts

    Appropriation, fiscal year 2005.......................       $38,192,000
    Budget request, fiscal year 2006......................        45,000,000
    Recommended in the bill...............................        45,000,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        +6,808,000
        Budget request, fiscal year 2006..................  ................

        The Committee recommends $45,000,000 for Defender Services
    in District of Columbia Courts, $6,808,000 above the fiscal
    year 2005 appropriation and the same as the President's
    request. These funds provide payment for counsel appointed in
    proceedings in the Family Court of the Superior Court and under
    the District of Columbia Guardianship, Protective Proceedings,
    and Durable Power of Attorney Act of 1986.

     Federal Payment to the Court Services and Offender Supervision Agency
                          for the District of Columbia

    Appropriation, fiscal year 2005.......................      $178,560,000
    Budget request, fiscal year 2006......................       203,388,000
    Recommended in the bill...............................       203,388,000
    Bill compared with:
        Appropriation, fiscal year 2005...................       +24,828,000
        Budget request, fiscal year 2006..................  ................

        The Committee recommends a Federal payment of $178,560,000
    for the Court Services and Offender Supervision Agency (CSOSA)
    and the Public Defender Service for the District of Columbia,
    $24,828,000 above the fiscal year 2005 appropriation and the
    same as the President's request.

     Federal Payment to the District of Columbia Water and Sewer Authority

    Appropriation, fiscal year 2005.......................        $4,762,000
    Budget request, fiscal year 2006......................  ................
    Recommended in the bill...............................        10,000,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        +5,238,000
        Budget request, fiscal year 2006..................       +10,000,000

        The Committee recommends a Federal payment of $10,000,000
    to the District of Columbia Water and Sewer Authority (WASA),
    $5,238,000 above the fiscal year 2005 appropriation and over
    the President's request. These funds are to continue
    implementation of the Combined Sewer Overflow Long-Term Plan
    and are to be matched 100 percent by WASA.
        The District's combined sewer system was designed and
    constructed by the U.S. Army Corps of Engineers in the late
    1800's and serves about a third of the District. The capacity
    of the system is exceeded during storms with the excess flow
    being discharged to the Anacostia and Potomac Rivers, Rock
    Creek, and tributary waters. WASA has developed a long-term
    plan to control these overflows and improve the water quality
    of the rivers. The plan is estimated to cost $1.3 billion and
    take between 15 to 40 years to complete depending on how much
    Federal assistance is obtained. While the Committee is
    supportive of the project and is providing funding for it in
    the bill, the Committee does not have the resources to provide
    the level of funding WASA is seeking from the Federal
    government. Therefore, the Committee strongly encourages WASA
    to pursue other sources of public and private funding.

            Federal Payment for the Anacostia Waterfront Initiative

    Appropriation, fiscal year 2005.......................        $2,976,000
    Budget request, fiscal year 2006......................         5,000,000
    Recommended in the bill...............................         5,000,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        +2,024,000
        Budget request, fiscal year 2006..................  ................

        The Committee recommends a Federal payment of $5,000,000
    for the Anacostia Waterfront Initiative, $2,024,000 over the
    fiscal year 2005 appropriation and the same as the President's
    request. These funds are for the design and construction of a
    continuous pedestrian and bicycle trail system from the Potomac
    River to the District's border with Maryland.
        The Anacostia Waterfront Initiative is a multi-year, multi-
    project initiative to revitalize the Anacostia River and its
    waterfront communities. The design and construction of a
    continuous pedestrian and bicycle trail system from the Potomac
    River to the District's border with Maryland is one such
    project. The Committee provides $5,000,000 to continue
    construction in fiscal year 2006.

          Federal Payment to the Criminal Justice Coordinating Council

    Appropriation, fiscal year 2005.......................        $1,290,000
    Budget request, fiscal year 2006......................         1,300,000
    Recommended in the bill...............................         1,300,000
    Bill compared with:
        Appropriation, fiscal year 2005...................           +10,000
        Budget request, fiscal year 2006..................  ................

        The Committee recommends a Federal payment of $1,300,000 to
    the Criminal Justice Coordinating Council, $10,000 above the
    fiscal year 2005 appropriation and the same as the President's
    request. These funds are to support initiatives related to the
    coordination of Federal and local criminal justice resources in
    the District of Columbia.
        The Committee recognizes the Criminal Justice Coordinating
    Council (CJCC) as an important agency within the law
    enforcement and criminal justice community in the District of
    Columbia. Federal and local agencies are expected to
    demonstrate accountability on the initiatives undertaken each
    year to improve public safety in the city. To this end, we
    request the CJCC collect and analyze data that measures
    progress made on the individual CJCC initiatives and to include
    these measures in the annual report.

        Federal Payment to the Office of Chief Financial Officer of the
                              District of Columbia

    Appropriation, fiscal year 2005.......................       $32,240,000
    Budget request, fiscal year 2006......................  ................
    Recommended in the bill...............................        20,000,000
    Bill compared with:
        Appropriation, fiscal year 2005...................       -12,240,000
        Budget request, fiscal year 2006..................       +20,000,000

        The Committee recommends a Federal payment of $20,000,000
    for the Chief Financial Officer of the District of Columbia,
    $12,240,000 below the fiscal year 2005 appropriation and
    $20,000,000 above the President's request. These funds are for
    education, public safety, health, economic development, and
    infrastructure initiatives in the District of Columbia.

                     Federal Payment for School Improvement

    Appropriation, fiscal year 2005.......................       $39,680,000
    Budget request, fiscal year 2006......................        41,616,000
    Recommended in the bill...............................        41,616,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        $1,936,000
        Budget request, fiscal year 2006..................  ................

                            Committee Recommendation

        The Committee recommends $41,616,000 for the Federal
    payment for school improvement, $1,936,000 above fiscal year
    2005 and the same as the budget request. These funds are
    allocated as follows: $13,525,000 to improve public school
    education in the District of Columbia, and $14,566,000 to the
    Secretary of Education for opportunity scholarships for low-
    income children in the District of Columbia, of which
    $1,000,000 is for administrative expenses.

           Federal Payment for Bioterrorism and Forensics Laboratory

    Appropriation, fiscal year 2005.......................        $7,936,000
    Budget request, fiscal year 2006......................         7,200,000
    Recommended in the bill...............................         7,200,000
    Bill compared with:
        Appropriation, fiscal year 2005...................          +736,000
        Budget request, fiscal year 2006..................  ................

        The Committee recommends a Federal payment of $7,200,000
    for costs associated with the continued construction of a
    bioterrorism and forensics laboratory in the District of
    Columbia, the same funding level as the budget request and
    $736,000 below the fiscal year 2005 appropriation. The Federal
    payment is contingent upon the District providing $1,500,000 in
    local funds for this project.

                           DISTRICT OF COLUMBIA FUNDS

        The Committee recommends a total of $8,700,158,000 for the
    operating expenses of the District of Columbia as contained in
    the fiscal year 2006 proposed budget and financial plan
    submitted to the Congress by the Government of the District of
    Columbia on June 6, 2005. Of the total, $5,007,344,000 is from
    local funds, $1,921,287,000 is from Federal grant funds,
    $1,754,399,000 is from other funds, $17,129,000 is from private
    funds, and $163,116,000 is from prior year funds. The Committee
    directs that any changes to the financial plan as submitted by
    the District must follow the reprogramming guidelines.
        The Committee has included two administrative provisions
    that would allow the mayor, upon certification by the chief
    financial officer, to expend local and other funds of the
    District not identified in this bill should there be an
    unanticipated growth in revenue. The additional funds are
    subject to the administrative provisions of this title and the
    normal reprogramming procedures contained in section 505 of
    this title. The Committee makes this recommendation based on
    the leadership and efforts of the past control boards, the
    mayor, and the chief financial officer, with the cooperation of
    the city council to bring about financial reform to the
    District. The Committee is optimistic that the District's
    leadership will continue on the course of building financial
    growth and soundness. The Committee will revisit these
    provisions in consideration of the fiscal year 2007 bill.
    Should the District government fail to adhere to the
    notification and reprogramming requirements, or fail to create
    and implement a plan to address the dire state of DC's capital
    infrastructure, or the cost of services rise without reason,
    the Committee will not consider favorably the continuation of
    the provisions.
        With the expanded authority to use District funds, the
    Committee expects the District government to first and foremost
    address capital infrastructure needs.
        The following tables detail the revenue and expenses plans
    of the District for fiscal year 2006:

        The Committee is concerned about the number of erroneous
    parking violation citations from the District of Columbia. In
    many of these instances the vehicles owned by non-District
    residents do not match the vehicles described in the citations.
    Many times, when non-District residents have attempted to
    resolve the issue, often by providing a notarized affidavit
    that their vehicle does not match the description on the Notice
    of Unsatisfied Parking Ticket, they have serious difficulty
    navigating the District's appeal process and are eventually
    still found responsible for the erroneous charge. Within 120
    days of enactment of this Act, the District of Columbia is
    instructed to file a written report with the Committee
    detailing a plan to improve the process through which these
    appeals are resolved and a plan to improve the ticket issuing
    process so that the frequency of these errors is decreased.

                           ADMINISTRATIVE PROVISIONS

        Section 501. The Committee continues the provision that
    specifies that an appropriation for a particular purpose or
    object shall be considered as the maximum amount that may be
    expended for said purpose or object.
        Section 502. The Committee continues the provision that
    permits funds for travel and payment of dues.
        Section 503. The Committee continues the provision that
    appropriates funds for refunding overpayments of taxes
    collected and for paying settlements and judgments against the
    District of Columbia government.
        Section 504. The Committee continues the provision that
    prohibits the use of appropriation for publicity or propaganda
    purposes.
        Section 505. The Committee continues the provision that
    establishes reprogramming and transfer requirements.
        Section 506. The Committee continues the provision that
    prohibits use of funds only to the objects for which the
    appropriations were made.
        Section 507. The Committee continues the provision that
    clarifies the pay setting authority for District employees as
    the District's Merit Personnel Act rather than title 5 of the
    United States Code.
        Section 508. The Committee continues the provision that
    directs the Mayor of the District of Columbia to submit new
    fiscal year 2006 revenue estimates as of the end of such
    quarter.
        Section 509. The Committee continues the provision that
    prohibits the District government from renewing or extending
    sole source contracts without opening them to the competitive
    bidding process as set forth in section 303 of the District of
    Columbia Procurement Practices Act of 1985.
        Section 510. The Committee continues the provision that
    prohibits the use of Federal funds for salaries, expenses, or
    other costs associated with the offices of U.S. Senator or
    Representative under section 4(d) of the D.C. Statehood
    Constitutional Convention Initiatives of 1979.
        Section 511. The Committee continues the provision that
    prohibits Federal funds made available in this Act from being
    used to implement or enforce any system of registration for
    unmarried cohabitating couples.
        Section 512. The Committee continues the provision that
    allows the mayor to accept, obligate, and expend Federal,
    private, and other grants received by the District government
    that are not reflected in the amounts appropriated in this Act.
        Section 513. The Committee continues the provision that
    restricts the use of official vehicles to official duties and
    not between a residence and workplace, except in the case of a
    police officer who resides in the District of Columbia at the
    discretion of the Chief, an officer or employee of the D.C.
    Fire and Emergency Medical Services Department who resides in
    the District of Columbia and is on call 24 hours a day, the
    Mayor of the District of Columbia, and the Chairman of the
    Council of the District of Columbia.
        Section 514. The Committee continues the provision that
    prohibits the use of funds for the audit of the District
    government's annual financial statements unless the DC
    Inspector General either conducts, or contracts for, the audit.
        Section 515. The Committee continues the provision that
    prohibits the use of appropriated funds by the Corporation
    Counsel or any other officer or entity of the District
    government to provide assistance for any petition drive or
    civil action which seeks to require Congress to provide for
    voting representation in Congress for the District of Columbia.
        Section 516. The Committee continues the provision that
    prohibits the use of any funds in this Act to carry out any
    program of distributing sterile needles or syringes for the
    hypodermic injection of any illegal drug.
        Section 517. The Committee continues the provision that
    requires the Chief Financial Officers of the District of
    Columbia to certify that they understand the duties and
    restrictions applicable to their agency as a result of this
    Act.
        Section 518. The Committee continues the provision that
    includes a ``conscience clause'' on legislation that pertains
    to contraceptive coverage by health insurance plans.
        Section 519. The Committee continues the provision that
    requires the Mayor of the District of Columbia to submit
    quarterly reports on various issues pertaining to the District
    of Columbia.
        Section 520. The Committee continues the provision that
    requires the CFO to submit a revised appropriated funds
    operating budget in the format of the budget that the District
    government submitted pursuant to section 442 of the DC Home
    Rule Act for all agencies no later than 30 calendar days after
    the date of enactment of this Act.
        Section 521. The Committee continues the provision that
    prohibits the transfer of Federal funds to any department,
    agency, or instrumentality of the U.S. government, except
    pursuant to a transfer made by, or transfer authority provided
    in, this or any other appropriation Act.
        Section 522. The Committee continues the provision that
    requires the District of Columbia Courts to transfer all fines
    levied and collected by the Courts in cases charging Driving
    Under the Influence and Driving While Impaired to the general
    treasury of the District of Columbia to remain available until
    expended and used by the Office of the Corporation Counsel for
    enforcement and prosecution of District traffic alcohol laws.
        Section 523. The Committee continues the provision that
    prohibits the use of any funds in the Act to: (1) pay the fees
    of an attorney who represents a party in an action or any
    attorney who defends any action, including an administrative
    proceeding, brought against D.C. Public Schools under the
    Individuals With Disabilities Act (IDEA) in excess of $4,000
    for that action; (2) pay the fees of an attorney or firm whom
    the CFO determines to have a pecuniary interest, either through
    an attorney, officer or employee of the firm, in any special
    education diagnostic services, schools, or other special
    education service providers; and (3) require all savings to be
    used to expand special education services within the District.
        Section 524. The Committee continues the provision that
    requires attorneys in special education cases brought under
    IDEA to comply with several reporting requirements and allow
    the Inspector General to conduct investigations to determine
    the accuracy of the certifications.
        Section 525. The Committee continues the provision that
    allows for appropriations in this Act to be increased by no
    more than $42,000,000 from unexpended general funds, and may be
    used only for one-time expenditures, to avoid deficit spending,
    for debt reduction, for program needs, or to avoid revenue
    shortfalls.
        Section 526. The Committee recommends a new provision that
    makes a technical correction under the heading of ``Federal
    Payment for School Improvement'' in Public Law 108-355 (118
    Stat. 1327).
        Section 527. The Committee recommends a new provision that
    allows for the obligation of additional ``Other Funds'' and
    ``Local Funds'' under certain circumstances.
        Section 528. The Committee recommends a new provision that
    allows for short-term borrowing from the emergency and
    contingency reserve funds established under section 450A of the
    District of Columbia Home Rule Act (Public Law 98-198; D.C.
    Official Code, sec. 1-204.50a) under certain circumstances.
        Section 529. The Committee continues the provision that
    maintains funding for the District of Columbia Inspector
    General.
        Section 530. The Committee continues the provision
    prohibiting funds to change the legality of marijuana use.
        Section 531. The Committee continues the provision relating
    to abortion.
        The Committee has not included a proposed provision
    allowing the District to implement activities to improve tax
    collections. While the Committee supports strongly any efforts
    by the District to collect properly and account for taxes owed,
    there was not adequate time to evaluate such a proposal prior
    to consideration of this bill. The Committee directs the mayor
    to submit a report by October 1, 2005 providing the details of
    such an initiative, the amount of additional revenue collected,
    and the costs associated with any initiative. The Committee
    encourages the District to consider activities that would yield
    a greater return on the investment than as proposed in the
    provision.

     TITLE VI--EXECUTIVE OFFICE OF THE PRESIDENT AND FUNDS APPROPRIATED TO
                                 THE PRESIDENT

        These funds provide for the compensation of the President
    as well as official expenses of the Executive Office of the
    President, as authorized by title 3, United States Code.

                         Compensation of the President

    Appropriation, fiscal year 2005.......................          $450,000
    Budget request, fiscal year 2006 \1\..................           450,000
    Recommended in the bill...............................           450,000
    Bill compared with:
        Appropriation, fiscal year 2005...................                 0
        Budget request, fiscal year 2006..................                 0

    \1\ Proposed in a consolidated appropriation titled ``The White House''.

        These funds provide for the compensation of the President,
    including an expense allowance as authorized by 3 U.S.C. 102.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $450,000 for
    Compensation of the President, including an expense allowance
    of $50,000. These are the same as amounts as appropriated in
    fiscal year 2005 and the same as requested by the President.
    The bill specifies that none of the funds for official expenses
    shall be considered as taxable to the President, and any unused
    amount shall revert to the Treasury consistent with 31 U.S.C.
    1552.

                               White House Office

                             SALARIES AND EXPENSES

    Appropriation, fiscal year 2006.......................       $61,504,000
    Budget request, fiscal year 2006 \1\..................        53,830,000
    Recommended in the bill...............................        53,830,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        -8,424,000
        Budget request, fiscal year 2006..................                 0

    \1\ Proposed in a consolidated appropriation titled ``The White House''.

        The Salaries and Expenses account of the White House Office
    supports staff and administrative services necessary for the
    direct support of the President, including costs for the
    Homeland Security Council.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $53,830,000
    for the White House Office, the same as in the Administration's
    request. This account also includes $750,000 for the Privacy
    and Civil Liberties Oversight Board, newly established within
    the White House Office. The Committee's recommendation
    transfers funding for the White House Communications Agency to
    the Department of Defense's Defense Information Agency.

                     Executive Residence at the White House

                               OPERATING EXPENSES

    Appropriation, fiscal year 2005.......................       $12,658,000
    Budget request, fiscal year 2006 \1\..................        12,436,000
    Recommended in the bill;..............................        12,436,000
    Bill compared with:
        Appropriation, fiscal year 2005...................          -222,000
        Budget request, fiscal year 2006..................                 0

    \1\ Proposed in a consolidated appropriation titled ``The White House''.

        These funds provide for the care, maintenance, and
    operation of the Executive Residence, including official and
    ceremonial functions of the President.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $12,436,000
    for the operating expenses of the Executive Residence, a
    decrease of $222,000 from the amounts appropriated in fiscal
    year 2005 and the same as the amounts requested by the
    President. The bill includes the same restrictions on
    reimbursable expenses for use of the Executive Residence as
    were enacted in fiscal year 2005.

                       White House Repair and Restoration

    Appropriation, fiscal year 2005.......................        $1,885,000
    Budget request, fiscal year 2006 \1\..................         1,700,000
    Recommended in the bill;..............................         1,700,000
    Bill compared with:
        Appropriation, fiscal year 2005...................          -185,000
        Budget request, fiscal year 2006..................                 0

    \1\ Proposed in a consolidated appropriation titled ``The White House''.

        To provide for the repair, alteration, and improvement of
    the Executive Residence at the White House, a separate account
    was established in fiscal year 1996 to program and track
    expenditures for capital improvement projects at the Executive
    Residence at the White House.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $1,700,000 for
    White House Repair and Restoration, a decrease of $185,000
    below the amount enacted in fiscal year 2005 and the same as
    the amount requested by the President.

                          Council of Economic Advisers

                             SALARIES AND EXPENSES

    Appropriation, fiscal year 2005.......................        $4,008,000
    Budget request, fiscal year 2006 \1\..................         4,040,000
    Recommended in the bill...............................         4,040,000
    Bill compared with:
        Appropriation, fiscal year 2005...................           +32,000
        Budget request, fiscal year 2006..................                 0

    \1\ Proposed in a consolidated appropriation titled ``The White House''.

        The Council of Economic Advisers analyzes the national
    economy and its various segments, advises the President on
    economic developments, recommends policies for economic growth
    and stability, appraises economic programs and policies of the
    Federal Government, and assists in preparation of the annual
    Economic Report of the President to Congress.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $4,040,000 for
    the Council of Economic Advisers, an increase of $32,000 from
    the amount enacted in fiscal year 2005 and the same as
    requested by the President. The Committee continues the CEA
    rental costs as part of the Enterprise Services activity in the
    Office of Administration.

                          Office of Policy Development

                             Salaries and Expenses

    Appropriation, fiscal year 2005.......................        $2,282,000
    Budget request, fiscal year 2006 \1\..................         3,501,000
    Recommended in the bill...............................         3,500,000
    Bill compared with:
        Appropriation, fiscal year 2005...................         1,218,000
        Budget request, fiscal year 2006..................             1,000

    \1\ Proposed in a consolidated appropriation titled ``The White House''.

        The office of policy development supports the National
    Economic Council and the Domestic Policy Council in carrying
    out their responsibilities to advise and assist the President
    in the formulation, coordination, and implementation of
    economic and domestic policy. The office of policy development
    also provides support for other domestic policy development and
    implementation activities, as directed by the President.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $3,500,000 for
    the office of policy development, an increase of $1,218,000
    above amount enacted in fiscal year 2005and $1,000 below the
    request.

                           National Security Council

                             SALARIES AND EXPENSES

    Appropriation, fiscal year 2005.......................        $8,860,000
    Budget request, fiscal year 2006 \1\..................         8,705,000
    Recommended in the bill...............................         8,705,000
    Bill compared with:
    Appropriation, fiscal year 2005.......................          -155,000
    Budget request, fiscal year 2006......................                0

    \1\ Proposed in a consolidated appropriation titled ``The White House''.

        The National Security Council advises the President on the
    integration of domestic, foreign, and military policies
    relating to national security.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $8,705,000 for
    the National Security Council, a decrease of $155,000 below the
    amount appropriated in fiscal year 2005 and the same as
    requested by the President. The committee continues the
    realignment of GSA rental payments and other costs to the
    Office of Administration as part of the enterprise services
    program. The number of full-time equivalent staff years remains
    at the fiscal year 2005 enacted level of 71.

                            Office of Administration

                             SALARIES AND EXPENSES

    Appropriation, fiscal year 2005.......................       $91,530,000
    Budget request, fiscal year 2006 \1\..................        98,609,000
    Recommended in the bill...............................        89,322,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        -2,208,000
        Budget request, fiscal year 2006..................       -9,287,000

    \1\ Proposed in a consolidated appropriation titled ``The White House''.

        The Office of Administration is responsible for providing
    cost-effective, administrative services to the Executive Office
    of the President. These services, defined by Executive Order
    12028 of 1977, include financial, personnel, library and
    records services, information management systems support, and
    general office services.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $89,322,000
    for the Office of Administration, a decrease of $2,208,000
    below the amount appropriated in fiscal year 2004 and a
    decrease of $9,287,000 below the amount requested by the
    President.
        Enterprise services program.--The Committee continues the
    Enterprise Services Program for most White House Offices. Funds
    for GSA rental payments for the Office of Management and Budget
    ($6,646,000) and for the Office of National Drug Control Policy
    ($2,641,000) proposed for funding through the Enterprise
    Services activities for fiscal year 2006 have not been
    included. These funds have been placed back in their respective
    organizations and have been placed in those offices in the
    amounts that the Administration would have requested for each.
    The Committee is taking this action to avoid the possibility
    that Report and bill language affecting those Offices would
    inappropriately apply to other White House offices if left in
    the centralized Enterprise Services Program. All other Offices
    have their GSA costs in the Enterprise Services Program, as
    requested.
        The Committee recommends funding for all other Office of
    Administration activities at the requested level for each
    activity in fiscal year 2006.

                        Office of Management and Budget

                             SALARIES AND EXPENSES

    Appropriation, fiscal year 2005.......................       $67,864,000
    Budget request, fiscal year 2006......................        68,411,000
    Recommended in the bill...............................        76,930,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        +9,066,000
        Budget request, fiscal year 2006..................        +8,519,000

        The Office of Management and Budget assists the President
    in the discharge of budgetary, economic, management, and other
    executive responsibilities.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $76,930,000
    for the Office of Management and Budget (OMB), an increase of
    $9,066,000 above the amount appropriated in fiscal year 2005
    and $8,519,000 above the amount requested by the President.
    Recommended adjustments to the budget estimate are:
        Staffing adjustment.--The fiscal year 2006 budget estimate
    provides sufficient funding for 500 FTEs, a net increase of 10
    FTEs over the fiscal year 2005 estimated FTE utilization. The
    Committee's review of the historic OMB staffing data indicates
    that FTEs (work years) dedicated to the development and
    preparation of the President's budget have declined over the
    past several years. The Committee believes that instead,
    resources have been diverted to other activities and
    initiatives that have not been approved by or specifically
    funded by the Congress. Therefore, the Committee directs
    increased FTEs and funding to the four major program areas
    listed below to emphasize that the principal responsibility for
    which funds are being provided, is the development and the
    execution of the Federal budget. But the net increase in FTEs
    is intended to recognize that there has also been a major
    growth in program content and the number of individual programs
    funded in the areas of Defense, Homeland Security, and Natural
    Resources and Human Resources.
        Total funding for Object classes 12.1, 21, 22, 23.3, 24,
    25, 26, and 31 is $27,321,000. Of this amount, not to exceed
    $3,000 shall be for Official Entertainment in object class 26.
    The Committee provides funding at or above the levels requested
    for all other object classes to reflect the higher FTE
    allocation and restores $7,000,000 in proposed GSA rental
    payments rather than in the Office of Administration as
    proposed. The Director of OMB may reallocate operating funds
    among these object classes, except where funding is expressly
    prohibited. The reprogramming of funds among these object
    classes should be based on the new allocation of staffing
    resources. OMB must include the revised allocation in its
    Operating Plan. Furthermore, any subsequent transfer of funds
    between or among object classes in excess of $250,000 should be
    submitted to the Committee in a revised Operating Plan.
        Reception and representation expenses.--The bill limits
    reception and representation (R&R) expenses to $3,000 as
    requested by the Administration.
        Operating Plan and PART Analysis.--Besides the requirements
    noted above, OMB is also required to include a detailed
    description of each program or activity or project that OMB
    intends to subject to its Performance Assessment Rating Tool
    (PART) study process for the 2007 and 2008 budgets. Included in
    the description shall be the specific methodology that will be
    used to conduct each study, the data that will be used in the
    analysis for each program studied, and office responsible for
    providing OMB with information and analysis. The Operating Plan
    relevant to the PART studies shall be provided to, and be
    considered approved only after the relevant subcommittee has
    agreed to the study criteria and methodology. OMB is encouraged
    to work with the subcommittees in advance of the Operating Plan
    to ensure that the process can continue without disruption.
        For studies agreed to by the Committee all scores, results
    and recommendations may be included in departmental budget
    submissions in addition to the materials submitted as part of a
    traditional budget. With respect to those not agreed to in
    OMB's Operating Plan no information relating to the study may
    be included in Department or Agency Budget Requests.
        Operating Plan and ``E-Gov'' initiative.--The Committee has
    expressed serious concerns about the continued forced
    implementation of this initiative on Departments and Agencies.
    Many aspects of this initiative are fundamentally flawed,
    contradict underlying program statutory requirements and have
    stifled innovation by forcing conformity to an arbitrary
    government standard. Most importantly, the implementation of
    this initiative has forced departments and agencies and offices
    and bureaus within each to transfer funds without the consent
    of the Committee and has used funds for activities for which
    funding was not specifically appropriated.
        Therefore, language is included as a government-wide
    provision in this Act which states that no funds are to be
    allocated to the ``e-Gov'' initiatives in OMB or any other
    department or agency and no funds are to be transferred from
    any department or agency for these initiatives, unless and to
    the extent approved in the OMB Operating Plan. The Operating
    Plan shall detail the amount proposed for transfer from each
    department and agency, (by program, office, bureau or activity,
    as appropriate) the specific use of funds, the relevance of
    that use to that department of agency and each bureau or office
    within, which is contributing funds, and a description of those
    activities for which funds were appropriated that will not be
    implemented or only partially implemented by the department or
    agency as a result of the proposed transfer. The Committee
    urges the OMB to work directly with the individual
    subcommittees in advance of the Operating Plan so that approved
    initiatives can move forward without disruption.

                     Office of National Drug Control Policy

                             SALARIES AND EXPENSES

    Appropriation, fiscal year 2005.......................       $26,784,000
    Budget request, fiscal year 2006......................        24,224,000
    Recommended in the bill...............................        26,908,000
    Bill compared with:
        Appropriation, fiscal year 2005...................          +124,000
        Budget request, fiscal year 2006..................        +2,684,000

        The Office of National Drug Control Policy Reauthorization
    Act of 1998 charges the Office of National Drug Control Policy,
    established by the Anti-Drug Abuse Act of 1988, with developing
    policies, objectives and priorities for the National Drug
    Control Program as defined by the Act and Executive Order
    12880.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $26,908,000
    for the Office of National Drug Control Policy (ONDCP), a
    $2,684,000 increase over the President's request.
        Funding is directed as follows: Operations--$25,592,000;
    Policy Research--$1,316,000.
        Staffing.--The Committee provided the requested level of
    123 FTEs.

                    Counterdrug Technology Assessment Center

    Appropriation, fiscal year 2005.......................       $41,664,000
    Budget request, fiscal year 2006......................        30,000,000
    Recommended in the bill...............................        30,000,000
    Bill compared with:
        Appropriation, fiscal year 2005...................       -11,664,000
        Budget request, fiscal year 2006..................                 0

        Pursuant to the Office of National Drug Control Policy
    Reauthorization Act of 1998 (title VII of Division C of Public
    Law 105-277), the Counter drug Technology Assessment Center
    serves as the central counter drug research and development
    organization for the United States Government.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $30,000,000
    for the Counterdrug Technology Assessment Center, a decrease of
    $11,664,000 from the fiscal year 2005 enacted levels and the
    same as the President's request. Included in the appropriation
    is $18,000,000 for supply and demand reduction research to be
    allocated at the discretion of the ONDCP and $12,000,000 for
    the Technology Transfer Program.
        The Committee agrees that it is time to review and assess
    the future of this program and determine which reforms are
    needed and where to emphasize future funding, ONDCP is
    instructed to prepare an analysis of options and
    recommendations for the future course of counter drug
    technology research and submit the report with the fiscal year
    2007 budget submission to the Committee.

                 High Intensity Drug Trafficking Areas Program

    Appropriation, fiscal year 2005.......................      $226,523,000
    Budget request, fiscal year 2006......................                 0
    Recommended in the bill...............................       227,000,000
    Bill compared with:
        Appropriation, fiscal year 2005...................              +477
        Budget request, fiscal year 2006..................      +227,000,000

        The High Intensity Drug Trafficking Areas (HIDTA) Program
    was established by the Director of ONDCP pursuant to section
    1005 of the Anti-Drug Abuse Act of 1988, and now as
    reauthorized by section 707 of the Office of National Drug
    Control Policy Act of 1998 to provide assistance to Federal and
    State and local law enforcement entities operating in those
    areas most adversely affected by drug trafficking.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $227,000,000
    for the HIDTA Program, an increase of $227,000,000 above the
    President's request. The Committee rejects the Administration's
    proposal to shift HIDTA funding to the Department of Justice
    and to reduce funding by more than 50 percent. The increase
    above the fiscal year 2005 enacted amounts is to ensure full
    funding for all existing HIDTA program activity, to expand
    existing HIDTAs where such expansion is justified, and to fund
    new HIDTAs as appropriate. The Committee directs that no less
    than $208,000,000 is for base funding for the HIDTA program.
    Recommended funding levels are as follows:
              HIDTA base allocation $219,650,000
              Discretionary funds for new counties $2,000,000
              Discretionary funds for CPOT $2,000,000
              Audit $2,000,000
        The HIDTA program serves to enhance and coordinate drug
    control effects among local, State, and Federal law enforcement
    agencies in order to eliminate or reduce drug trafficking, and
    the Committee supports a vigorous HIDTA program. To achieve its
    mission, the HIDTA program must continue to enhance individual
    and national performance and work to develop a system that
    enhances the synchronization of drug control efforts. The
    Committee continues to direct that HIDTAs existing in fiscal
    year 2006 shall receive funding at least equal to the fiscal
    year 2005 initial allocation level, which does not include
    funding provided through the CPOT initiative.
        The Committee is aware of areas facing increased drug
    trafficking that may be appropriate candidates for designation
    as a HIDTA, inclusion in an existing HIDTA, or increased
    funding. The Committee recognizes the strong pressure to add
    new HIDTAs and expand those currently existing, and underscores
    the need for performance-based management to ensure that HIDTAs
    demonstrate both effectiveness and need and are provided
    adequate resources.
        Prior to submitting any future budget requests, the
    Committee encourages the Director of ONDCP to review the
    outcome-oriented performance measures developed in 2004 by the
    HIDTA Directors Committee. This performance data will assist
    during future PART ratings and clearly should be used to inform
    budget decisions.

                      Other Federal Drug Control Programs

    Appropriation, fiscal year 2005.......................      $211,990,000
    Budget request, fiscal year 2006......................      $213,300,000
    Recommended in the bill...............................      $213,292,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        +1,302,000
        Budget request, fiscal year 2006..................            -8,000

                            COMMITTEE RECOMMENDATION

        The Committee has provided the funds as requested for each
    of the programs funded in this Account and directs that funding
    be allocated as proposed on Page 63 of the ONDCP fiscal year
    2006 Congressional submission with the exception that $992,000
    shall be allocated to the National Alliance for Model State
    Drug Laws instead of no funds requested and that $1,000,000
    shall be allocated to establishing improved performance measure
    for each program instead of the $2,000,000 requested.
        The Committee directs ONDCP to maintain funding for non-
    advertising services for the Media Campaign at no less than the
    Fiscal year 2003 ratio of service funding to total funds and to
    continue the corporate outreach program as it operated prior to
    its cancellation.
        The Committee has supported past education efforts to
    demonstrate the consequences of using performance-enhancing
    drugs. Although this program was successful, all professional
    sports, including Major League Baseball, must undertake a
    comprehensive campaign to educate youth on the dangers of
    steroid use. Professional sports must work closely with U.S.
    Anti-doping Administration (USADA) to educate high school,
    middle school and grade school children on the dangers of
    performance enhancing drugs.

                              Unanticipated Needs

    Appropriation, fiscal year 2005.......................          $993,000
    Budget request, fiscal year 2006......................         1,000,000
    Recommended in the bill...............................         1,000,000
    Bill compared with:
        Appropriation, fiscal year 2005...................            +7,000
        Budget request, fiscal year 2006..................                 0

        These funds enable the President to meet unanticipated
    exigencies in support of the national interest, security, or
    defense.

                            COMMITTEE RECOMMENDATION

        The Committee recommends $1,000,000 for unanticipated
    needs, as requested. Expenditures from this account may be
    authorized by the President.

     Special Assistance to the President and the Official Residence of the
                                 Vice President

                             SALARIES AND EXPENSES

    Appropriation, fiscal year 2005.......................        $4,534,000
    Budget request, fiscal year 2006......................         4,455,000
    Recommended in the bill...............................         4,455,000
    Bill compared with:
        Appropriation, fiscal year 2005...................           -79,000
        Budget request, fiscal year 2006..................                 0

        These funds support the official duties and functions of
    the Office of the Vice President.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $4,455,000 for
    the Office of the Vice President, a decrease of $79,000 below
    the amount enacted for fiscal year 2005 and the same as
    requested by the President.

                               Operating Expenses

                         (INCLUDING TRANSFER OF FUNDS)

    Appropriation, fiscal year 2005.......................          $330,000
    Budget request, fiscal year 2006......................           325,000
    Recommended in the bill...............................           325,000
    Bill compared with:
        Appropriation, fiscal year 2005...................            -5,000
        Budget request, fiscal year 2006..................                 0

        These funds support the care and operation of the Vice
    President's residence and specifically support equipment,
    furnishings, dining facilities, and services required to
    perform and discharge the Vice President's official duties,
    functions and obligations.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $325,000 for
    the Operating Expenses of the Vice President's residence, a
    decrease of $5,000 below the amount enacted in fiscal year 2005
    and the same as requested by the President.

                        TITLE VII--INDEPENDENT AGENCIES

           Architectural and Transportation Barriers Compliance Board

                             SALARIES AND EXPENSES

    Appropriation, fiscal year 2005.......................        $5,641,000
    Budget request, fiscal year 2006......................         5,941,000
    Recommended in the bill...............................         5,941,000
    Bill compared with:
        Appropriation, fiscal year 2005...................          +300,000
        Budget request, fiscal year 2006..................  ................

        The Architectural and Transportation Barriers Compliance
    Board (the Access Board) is the lead Federal Agency promoting
    accessibility for all handicapped persons. The Access Board was
    reauthorized in the Rehabilitation Act Amendments of 1992,
    Public Law 102-569. Under this authorization, the Access
    Board's functions are to ensure compliance with the
    Architectural Barriers Act of 1968, and to develop guidelines
    for and technical assistance to individuals and entities with
    rights or duties under titles II and III of the Americans with
    Disabilities Act. The Access Board establishes minimum
    accessibility guidelines and requirements for public
    accommodations and commercial facilities, transit facilities
    and vehicles, state and local government facilities, and
    recreational facilities. The Access Board also provides
    technical assistance to Government agencies, public and private
    organizations, individuals, and businesses on the removal of
    accessibility barriers.

                            COMMITTEE RECOMMENDATION

        The Committee recommends $5,941,000 for the operations of
    the Architectural and Transportation Barriers Compliance Board,
    an increase of $300,000 over fiscal year 2005 and the same as
    the budget request.

                       Consumer Product Safety Commission

                             SALARIES AND EXPENSES

    Appropriation, fiscal year 2005.......................       $62,149,000
    Budget request, fiscal year 2006......................        62,449,000
    Recommended in the bill...............................        62,449,000
    Bill compared with:
        Appropriation, fiscal year 2005...................          +300,000
        Budget request, fiscal year 2006..................  ................

        The Consumer Product Safety Act established the Consumer
    Product Safety Commission (CPSC), an independent Federal
    regulatory agency, to reduce unreasonable risk of injury
    associated with consumer products. Its primary responsibilities
    and overall goals are: to protect the public against
    unreasonable risk of injury associated with consumer products;
    to develop uniform safety standards for consumer products,
    minimizing conflicting State and local regulations; and to
    promote research into prevention of product-related deaths,
    illnesses, and injuries.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $62,449,000
    for fiscal year 2006, the same level as requested and a
    decrease of $201,000 below fiscal year 2005.

                         Election Assistance Commission

                             SALARIES AND EXPENSES

                         (INCLUDING TRANSFER OF FUNDS)

    Appropriation, fiscal year 2005.......................       $13,888,000
    Budget request, fiscal year 2006......................        17,612,000
    Recommended in the bill...............................        15,877,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        +1,989,000
        Budget request, fiscal year 2006..................        -1,735,000

        The Election Assistance Commission was established by the
    Help America Vote Act of 2002 (HAVA) and is charged with
    implementing provisions of that Act relating to the reform of
    Federal election administration throughout the United States,
    including the development of voluntary voting systems
    guidelines, the certification and testing of voting systems,
    studies of election administration issues, and the
    implementation of election reform payments to states as well as
    grant programs related to election reform.
        The Committee urges the EAC to provide $250,000 for the
    HAVA college program during the 2006 elections. This program,
    first implemented during the 2004 election, recruits and trains
    young people in colleges, universities, and community colleges
    to serve as nonpartisan poll workers, helping to address a
    nationwide pollworker shortage.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $15,877,000
    for the Election Assistance Commission, an increase of
    $1,989,000 above the fiscal year 2005 enacted level and
    $1,735,000 below the budget request. The Committee provides the
    budget request for research and development activities,
    including the transfer of $2,800,000 to the National Institute
    of Standards and Technology.
        The Committee recommends the following major changes to the
    budget request:

    Reduce information technology/equipment purchases.....          -350,000
    Deny funding for four additional FTE..................          -622,000
    Reduce funding for printing and reproduction..........          -501,000
    Reduce funding for travel.............................          -400,000
    Increase funding for external auditing services.......          +200,000

        Inspector General services.--The Committee recommendation
    provides an additional $200,000 above the budget request for
    contract auditing services for a total auditing program level
    of $2,105,000, an increase of more than $2,009,000 above the
    fiscal year 2005 enacted level. The Committee has been
    concerned about the lack of Inspector General services at EAC,
    particularly given the vast sums of money that have been
    distributed to date. The Committee is aware that EAC has been
    seeking contract IG services, and expects that such services
    will be in place by January 1, 2006.
        Staffing increases.--The Committee is concerned that EAC
    has requested an additional four FTE, particularly given the
    short-term nature of EAC's activities with respect to reviewing
    state spending plans for HAVA funds. Increased funding has been
    provided for contract services, which the Committee believes is
    sufficient to manage audit functions. Accordingly, the
    Committee does not approve the hire of four additional FTE.
        Military voting.--The Committee is aware that technologies
    now exist to allow overseas military personnel to vote via a
    secure e-mail system. The Committee encourages EAC to examine
    this technology and, if warranted, develop appropriate
    guidelines in time for the 2006 election.

                     Federal Deposit Insurance Corporation

                          OFFICE OF INSPECTOR GENERAL

                         (INCLUDING TRANSFER OF FUNDS)

    Appropriation, fiscal year 2005.......................       $29,884,000
    Budget request, fiscal year 2006......................        29,965,000
    Recommended in the bill...............................        29,965,000
    Bill compared with:
        Appropriation, fiscal year 2005...................           +81,000
        Budget request, fiscal year 2006..................                 0

        Funding for the Office of the Inspector General at the
    Federal Deposit Insurance Corporation is provided pursuant to
    31 U.S.C. 1105(a)(25), which requires a separate appropriation
    account for appropriations for each Office of Inspector General
    of an establishment defined under section 11(2) of the
    Inspector General Act of 1978.
        The Committee recommendation, the same as the budget
    request, provides for the transfer of $29,965,000 from the Bank
    Insurance Fund, the Savings Association Insurance Fund, and the
    FSLIC Resolution Fund to finance the Office of Inspector
    General for fiscal year 2004.

                          Federal Election Commission

                             SALARIES AND EXPENSES

    Appropriation, fiscal year 2005.......................       $51,742,000
    Budget request, fiscal year 2006......................        54,600,000
    Recommended in the bill...............................        54,700,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        +2,958,000
        Budget request, fiscal year 2006..................          +100,000

        The Commission administers the disclosure of campaign
    finance information, enforces limitations on contributions and
    expenditures, supervises the public funding of Presidential
    elections, and performs other tasks related to Federal
    elections.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $54,700,000
    for the Federal Election Commission (FEC), an increase of
    $2,958,000 over amounts appropriated in fiscal year 2005 and an
    increase of $100,000 over the request.

                       Federal Labor Relations Authority

                             SALARIES AND EXPENSES

    Appropriation, fiscal year 2005.......................       $25,468,000
    Budget request, fiscal year 2006......................        25,468,000
    Recommended in the bill...............................        25,468,000
    Bill compared with:
        Appropriation, fiscal year 2005...................  ................
        Budget request, fiscal year 2006..................  ................

        The Federal Labor Relations Authority (FLRA), established
    by the Civil Service Reform Act of 1978, serves as a neutral
    party in the settlement of disputes that arise between unions,
    employees, and agencies on matters outlined in the Federal
    Service Labor Management Relations statute, decides major
    policy issues, prescribes regulations, and disseminates
    information appropriate to the needs of agencies, labor
    organizations, and the public. Establishment of the FLRA gives
    full recognition to the role of the Federal Government as an
    employer. Pursuant to the Foreign Service Act of 1980, FLRA
    also supports the Foreign Service Impasse Disputes Panel and
    the Foreign Service Labor Relations Board.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $25,468,000
    for the Federal Labor Relations Authority, the same funding
    level as the fiscal year 2005 enacted level and the same as the
    budget request.

                          Federal Maritime Commission

                             SALARIES AND EXPENSES

    Appropriation, fiscal year 2005.......................       $19,340,032
    Budget request, fiscal year 2006......................        20,499,000
    Recommended in the bill...............................        20,499,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        +1,158,968
        Budget request, fiscal year 2006..................  ................

        The Federal Maritime Commission (FMC) was established in
    1961 as an independent government agency, responsible for the
    regulation of international waterborne commerce of the United
    States. In addition, FMC has responsibility for licensing and
    bonding ocean transportation intermediaries and assuring that
    vessel owners or operators establish financial responsibility
    to pay judgment for death or injury to passengers, or
    nonperformance of a cruise, on voyages from U.S. ports. It
    monitors the activities of ocean common carriers, who operate
    in the U.S./foreign commerce to ensure just and reasonable
    practices, maintains a trade monitoring and enforcement
    program, monitors the laws and practices of foreign governments
    which could have a discriminatory or other impacts on shipping
    conditions in the U.S., among other activities. The principal
    shipping statutes administered by the FMC are the Shipping Act
    of 1984 (46 USC app. 1710 et seq.), the Foreign Shipping
    Practices Act of 1988 (46 USC app. 1701 et seq.), and section
    19 of the Merchant Marine Act, 1920 (46 USC app. 876).

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $20,499,000
    for the Federal Maritime Commission, a total of $1,158,968 (6
    percent) above the fiscal year 2005 level and equal to the
    budget request for fiscal year 2006.

                        General Services Administration

                             FEDERAL BUILDINGS FUND

    Limitations on Availability of Revenue:
    Limitation on availability, fiscal year 2005..........  ($7,217,043,000)
    Limitation on availability, budget estimate, fiscal      (7,768,795,000)
     year 2006............................................
    Recommended in the bill...............................   (7,768,795,000)
    Bill compared with:
        Availability limitation, fiscal year 2005.........    (+551,752,000)
        Availability limitation, fiscal year 2006 estimate  ................

        The Federal Buildings Fund (FBF) finances the activities of
    the Public Buildings Service, which provides space and services
    for Federal agencies in a relationship similar to that of
    landlord and tenant. The FBF, established in 1975, replaces
    direct appropriations by using income derived from rent
    assessments, which approximate commercial rates for comparable
    space and services. The Committee makes funds available through
    a process of placing limitations on obligations from the FBF as
    a way of allocating funds for various FBF activities. The
    Committee may also appropriate funds into the FBF as a way of
    covering the difference between the total revenues coming into
    the FBF and the total limitation on the expenditure from the
    FBF.

                            COMMITTEE RECOMMENDATION

        The Committee recommends a limitation of $7,768,795,000 for
    the fund, an increase of $551,752,000 above the fiscal year
    2005 enacted levels.
        The Committee notes that a total of $34,857,000 has been
    provided within the federal buildings fund in past years for
    construction, including funds for sites and expenses and
    associated design and construction services, for the Detroit,
    Michigan Ambassador Bridge Border Station. Further, the
    Committee notes that the General Services Administration (GSA)
    and the private sector companies who own and operate the
    Ambassador Bridge have reached agreement on innovative private
    financing/lease back arrangements to accerlerate the
    establishment of critically important new border inspection
    facilities on the Ambassador Bridge site.
        The Committee instructs the GSA to continue to make the
    full $34,857,000 available only for border station improvement
    initiatives at the Ambassador Bridge in Detroit, Michigan until
    the GSA receives an accurate cost estimate for making the
    improvements under the lease back arrangement.

                          CONSTRUCTION AND ACQUISITION

    Limitations on Availability of Revenue:
    Limitation on availability, fiscal year 2005..........    ($708,542,000)
    Limitation on availability, budget estimate, fiscal        (708,106,000)
     year 2006............................................
    Recommended in the bill...............................     (708,106,000)
    Bill compared with:
        Availability limitation, fiscal year 2005.........        (-436,000)
        Availability limitation, fiscal year 2006 estimate             (---)

        The construction and acquisition activity funds site,
    design, construction, and management and inspection costs for
    construction of new Federal facilities.

                            COMMITTEE RECOMMENDATION

        The Committee recommends a limitation of $708,106,000 for
    construction and acquisition, a decrease of $436,000 below the
    fiscal year 2005 enacted level. Fiscal year 2006 is the first
    year of a two-year moratorium imposed by the Judiciary for new
    major courthouse construction projects. The Committee provides
    funding for two courthouse projects on the Judiciary's priority
    list which can be awarded in fiscal year 2006, consistent with
    the Judiciary's policy.

                            REPAIRS AND ALTERATIONS

    Limitations on Availability of Revenue:
    Limitation on availability, fiscal year 2005..........    ($980,222,000)
    Limitation on availability, budget estimate, fiscal        (961,376,000)
     year 2006............................................
    Recommended in the bill...............................     (961,376,000)
    Bill compared with:
        Availability limitation, fiscal year 2005.........     (-18,846,000)
        Availability limitation, fiscal year 2006 estimate             (---)

        The repairs and alterations activity funds design,
    construction and management and inspection for the repair,
    alteration, and modernization of existing real estate assets.
    It funds projects to improve health and safety, recapture
    vacant non-revenue producing Government-owned and leased space,
    and various special programs.

                            COMMITTEE RECOMMENDATION

        The Committee recommends a limitation of $961,376,000 for
    repairs and alterations, a decrease of $18,846,000 from the
    fiscal year 2005 enacted level. The Committee directs GSA to
    embark on the projects included in the budget request in
    priority order, starting with those projects that address
    safety and health needs and moving next to the projects with
    completed designs.

                        INSTALLMENT ACQUISITION PAYMENTS

    Limitations on Availability of Revenue:
    Limitation on availability, fiscal year 2005..........    ($161,442,000)
    Limitation on availability, budget estimate, fiscal        (168,180,000)
     year 2006............................................
    Recommended in the bill...............................     (168,180,000)
    Bill compared with:
        Availability limitation, fiscal year 2005.........      (+6,738,000)
        Availability limitation, fiscal year 2006 estimate             (---)

        The installment acquisition payments activity funds
    interest payment for facilities constructed under the Public
    Building Amendment of 1972 and lease-purchase agreements since
    1987, a total of 80 projects.

                            COMMITTEE RECOMMENDATION

        The Committee recommends a limitation of $168,180,000 for
    installation acquisition payments, an increase of $6,738,000
    above the fiscal year 2005 enacted level and the same as the
    budget request. Based on this funding level, 68 of the original
    80 projects will be paid off, leaving 12 projects remaining.

                                RENTAL OF SPACE

    Limitations on Availability of Revenue:
    Limitation on availability, fiscal year 2005..........  ($3,657,315,000)
    Limitation on availability, budget estimate, fiscal      (4,046,031,000)
     year 2006............................................
    Recommended in the bill...............................   (4,046,031,000)
    Bill compared with:
        Availability limitation, fiscal year 2005.........    (+388,716,000)
        Availability limitation, fiscal year 2006 estimate             (---)

        The rental of space program funds lease payments, temporary
    space for Federal employees during major repair and alteration
    projects, and relocations from Federal buildings due to forced
    moves and relocations as a result of health and safety
    conditions.

                            COMMITTEE RECOMMENDATION

        The Committee recommends a limitation of $4,046,031,000 for
    rental of space, an increase of $388,716,000 above the fiscal
    year 2005 enacted level and the same as the budget request.

                              BUILDING OPERATIONS

    Limitations on Availability of Revenue:
    Limitation on availability, fiscal year 2005..........  ($1,709,522,000)
    Limitation on availability, budget estimate, fiscal      (1,885,102,000)
     year 2006............................................
    Recommended in the bill...............................   (1,885,102,000)
    Bill compared with:
        Availability limitation, fiscal year 2005.........    (+175,580,000)
        Availability limitation, fiscal year 2006 estimate             (---)

        The building operations activity funds cleaning,
    maintenance, utilities, fuel, grounds, maintenance, space
    acquisitions and assignment services in government-owned
    facilities and in leased space when not provided by the lessor.

                            COMMITTEE RECOMMENDATION

        The Committee recommends a limitation of $1,885,102,000 for
    building operations, an increase of $175,580,000 above the
    fiscal year 2005 enacted level and the same as the budget
    request.

                               General Activities

                             GOVERNMENT-WIDE POLICY

    Appropriation, fiscal year 2005.......................       $61,603,000
    Budget request, fiscal year 2006......................        52,796,000
    Recommended in the bill...............................        52,796,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        -8,807,000
        Budget request, fiscal year 2006..................               ---

        This appropriations account provides for government-wide
    policy and evaluation activities associated with the management
    of real and personal property assets and certain administrative
    services; government-wide policy support responsibilities
    relating to acquisition, telecommunications, information
    technology management, and related technology activities; and
    services as authorized by 5 U.S.C. 3109.

                            COMMITTEE RECOMMENDATION

        The Committee recommendation provides $52,796,000, a
    reduction of $8,807,000 from fiscal year 2005 levels, for these
    purposes. This funding level assumes that the office of
    government-wide policy will refocus its activities on core
    policy and regulatory activities that support statutory mission
    requirements, and eliminate activities that are not clearly
    policy-related. This funding level and realignment assumes a
    reduction of 92 full time equivalents, 45 of which will be
    transferred. GSA states that this funding level will not
    trigger a reduction-in-force.

                               OPERATING EXPENSES

    Appropriation, fiscal year 2005.......................       $91,438,000
    Budget request, fiscal year 2006......................        99,890,000
    Recommended in the bill...............................        99,890,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        +8,452,000
        Budget request, fiscal year 2006..................               ---

        This appropriations account provides for government-wide
    activities associated with the utilization and donation of
    surplus personal property; disposal of real property;
    telecommunications, information technology management, and
    related technology activities; agency-wide policy direction and
    management; ancillary accounting, records management, and other
    support services; services as authorized by 5 U.S.C. 3109; and
    other related operational expenses.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $99,890,000
    for operating expenses, an increase of $8,452,000 above the
    fiscal year 2005 enacted level and the same as the budget
    request.

                          Office of Inspector General

    Appropriation, fiscal year 2005.......................       $42,012,000
    Budget request, fiscal year 2006......................        43,410,000
    Recommended in the bill...............................        43,410,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        +1,398,000
        Budget request, fiscal year 2006..................               ---

        This appropriation provides agency-wide audit and
    investigative functions to identify and correct GSA management
    and administrative deficiencies that create conditions for
    existing or potential instances of fraud, waste, and
    mismanagement. The audit function provides internal audit and
    contract audit services. Contract audits provide professional
    advice to GSA contracting officials on accounting and financial
    matters relative to the negotiation, award, administration,
    repricing, and settlement of contracts. Internal audits review
    and evaluate all facets of GSA operations and programs, test
    internal control systems, and develop information to improve
    operating efficiencies and enhance customer services. The
    investigative function provides for the detection and
    investigation of improper and illegal activities involving GSA
    programs, personnel, and operations.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $43,410,000
    for the office of inspector general, an increase of $1,398,000
    above the fiscal year 2005 enacted level and the same as the
    budget request.

                       Electronic Government (E-Gov) Fund

                         (INCLUDING TRANSFER OF FUNDS)

    Appropriation, fiscal year 2005.......................        $2,976,000
    Budget request, fiscal year 2006......................         5,000,000
    Recommended in the bill...............................         3,000,000
    Bill compared with:
        Appropriation, fiscal year 2005...................           +24,000
        Budget request, fiscal year 2006..................        -2,000,000

        The appropriation provides support for interagency
    electronic government initiatives that utilize the Internet or
    other electronic methods as a means to increase Federal
    government accessibility, efficiency, and productivity.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $3,000,000 for
    the electronic government fund, an increase of $24,000 above
    the fiscal year 2005 enacted level and $2,000,000 below the
    budget request.
        The Committee's recommendation does not include a general
    provision proposed in the fiscal year 2005 budget request
    allowing the Office of Management and Budget (OMB) to use
    $40,000,000 of surplus funds in the general supply fund to
    finance OMB's list of e-gov initiatives across government. The
    Committee refuses to relinquish oversight of the development
    and procurement of information technology projects of the
    various agencies under its jurisdiction. If the general supply
    fund is running a $40,000,000 or greater surplus, the Committee
    directs GSA to evaluate the pricing structure of its services
    to Federal agencies to determine if GSA is overcharging its
    Federal clients. Further, if OMB seeks funding for an
    initiative under its direction, OMB should request those funds
    under its own appropriation complete with a comprehensive
    budget justification.

               Allowances and Office Staff for Former Presidents

    Appropriation, fiscal year 2005.......................        $3,081,000
    Budget request, fiscal year 2006......................         2,952,000
    Recommended in the bill...............................         2,952,000
    Bill compared with:
        Appropriation, fiscal year 2005...................          -129,000
        Budget request, fiscal year 2006..................  ................

        This appropriation provides support consisting of pensions,
    office staffs, and related expenses for former Presidents
    Gerald R. Ford, Jimmy Carter, George Bush and Bill Clinton and
    for pension and postal franking privileges for the widow of
    former President Lyndon B. Johnson. Also, this appropriation is
    authorized to provide funding for security and travel related
    expenses for each former President and the spouse of a former
    President pursuant to section 531 of Public Law 103-329.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $2,952,000 for
    allowances and office staff of former Presidents, a decrease of
    $129,000 below the fiscal year 2005 enacted level and the same
    as the budget request. The following table describes the
    distribution of the funds:

                        FISCAL YEAR 2006 BUDGET ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS
                                                [In thousands of dollars]
    ----------------------------------------------------------------------------------------------------------------
                                                       Ford      Carter      Bush     Clinton     Widows     Total
    ----------------------------------------------------------------------------------------------------------------
    Personal Compensation.........................         96         96         96         96          0        384
    Personnel Benefits............................         22          2         51         64          0        139
    Benefits for Former Presidents................        184        184        184        192         20        764
    Travel........................................         45          2         54         63          0        164
    Rental Payments to GSA........................        105        102        175        473          0        855
    Communications, Utilities and Miscellaneous
     Charges:
        Telephone.................................         15         10         15         75          0        115
        Postage...................................          9         15         13         15          8         60
        Printing..................................          5          5         14          9          0         33
        Other Services............................         38         76         65        111          0        290
        Supplies and Materials....................         17          5         14         16          0         52
        Equipment.................................          6          7         47         11          0         71
            Total Obligations.....................        542        504        728      1,125         28      2,927
    ----------------------------------------------------------------------------------------------------------------

                    Federal Citizen Information Center Fund

    Appropriations, fiscal year 2005......................       $14,787,744
    Budget request, fiscal year 2006......................        15,030,000
    Recommended in the bill...............................        15,030,000
    Bill compared with:
        Appropriation, fiscal year 2005...................          +242,256
        Budget request, fiscal year 2006..................               ---

        The Consumer Information Center (CIC) was established
    within the General Services Administration (GSA) by Executive
    Order on October 26, 1970, to help Federal departments and
    agencies promote and distribute consumer information collected
    as a byproduct of the Government's program activities.
        The Federal Information Center (FIC) program was
    established within the General Services Administration in 1966,
    and was formalized by Public Law 95-491 in 1980. The program's
    purpose is to provide the public with direct information about
    all aspects of Federal programs, regulations, and services. To
    accomplish this mission, contractual services are used to
    respond to public inquiries via a nationwide toll-free
    telephone call center.
        In 2000, the Consumer Information Center assumed
    responsibility for the operations of the FIC program with the
    resulting organization being officially named the Federal
    Consumer Information Center. The Federal Consumer Information
    Center combines the nationwide toll-free telephone assistance
    program and the database of the FIC with the CIC website and
    publications distribution programs.
        During fiscal year 2002, the Federal Consumer Information
    Center became part of GSA's newly established Office of Citizen
    Services and Communications and was renamed the Federal Citizen
    Information Center (FCIC). The new Office serves as a central
    federal gateway for citizens, businesses, other governments,
    and the media to obtain information and services from the
    government. FCIC assumed operational control of the
    FirstGov.gov website in fiscal year 2002.
        Public Law 98-63, enacted July 30, 1983, established a
    revolving fund for the CIC. Under this fund, FCIC activities
    are financed from the following: annual appropriations from the
    general funds of the Treasury, reimbursements from agencies for
    distribution of publications, user fees collected from the
    public, and any other income incident to FCIC activities. All
    are available as authorized in appropriation acts without
    regard to fiscal year limitations. The bill includes a
    limitation of $18,000,000 on the availability of the revolving
    fund. Any revenues accruing to this fund in excess of this
    amount shall remain in the fund and are not available for
    expenditure except as authorized in appropriation Acts.

                            COMMITTEE RECOMMENDATION

        For fiscal year 2006, the Committee recommends $15,030,000,
    an increase of $242,256 over the level for fiscal year 2005 and
    the same as the budget request.
        The appropriation will be augmented by reimbursements from
    Federal agencies for distribution of consumer publications,
    user fees from the public, and other income.

              General Provisions--General Services Administration

        Section 701. The Committee continues the provision that
    provides that costs included in rent received from government
    corporations for operation, protection, maintenance, upkeep,
    repair and improvement shall be credited to the Federal
    Buildings Fund.
        Section 702. The Committee continues the provision
    providing authority for the use of funds for the hire of motor
    vehicles.
        Section 703. The Committee continues the provision
    providing that funds made available for activities of the
    Federal Buildings Fund may be transferred between
    appropriations with advance approval of the Congress.
        Section 704. The Committee continues the provision
    prohibiting the use of funds for developing courthouse
    construction requests that do not meet GSA standards and the
    priorities of the Judicial Conference.
        Section 705. The Committee continues the provision
    providing that no funds may be used to increase the amount of
    occupiable square feet, provide cleaning services, security
    enhancements, or any other service usually provided, to any
    agency which does not pay the requested rent.
        Section 706. The Committee continues the provision that
    permits GSA to pay small claims (up to $250,000) made against
    the government.
        Section 707. The Committee prohibits funding in the Act for
    activities related to conveyance of a property in Phoenix,
    Arizona in order to ensure that current postal activities are
    continued at the property.

                         Merit Systems Protection Board

                             SALARIES AND EXPENSES

    Appropriation, fiscal year 2005.......................       $37,005,000
    Budget request, fiscal year 2006......................        37,005,000
    Recommended in the bill...............................        38,205,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        +1,200,000
        Budget request, fiscal year 2006..................        +1,200,000

        The Merit Systems Protection Board performs the
    adjudicatory functions necessary to maintain the civil service
    merit system. These include hearing appeals on adverse actions,
    reduction-in-force actions, and retirement. The Board reports
    to the President on whether merit systems are sufficiently free
    from prohibited personnel practices to protect the public
    interest.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $38,205,000
    for the Merit Systems Protection Board (MSPB), an increase of
    $1,200,000 above the amount appropriated in fiscal year 2005
    and an increase of $1,200,000 above the budget request, in
    order to accommodate additional appeals cases resulting from
    the DoD and DHS decision to maintain MSPB as arbitrator and to
    accommodate relocation expenses. The Committee has instead made
    available the amount of no more than $2,605,000 for adjudicated
    appeals through an appropriation from the trust fund consistent
    with past practice.

     MORRIS K. UDALL SCHOLARSHIP AND EXCELLENCE IN NATIONAL ENVIRONMENTAL
                               POLICY FOUNDATION

     Morris K. Udall Scholarship and Excellence in National Environmental
                               Policy Trust Fund

                         (INCLUDING TRANSFER OF FUNDS)

    Appropriation, fiscal year 2005.......................        $1,980,000
    Budget request, fiscal year 2006......................                 0
    Recommended in the bill...............................         2,000,000
    Bill compared with:
        Appropriation, fiscal year 2005...................           +20,000
        Budget request, fiscal year 2006..................        +2,000,000

                            COMMITTEE RECOMMENDATION

        The Committee recommends $2,000,000 for the activities of
    the Morris K. Udall Foundation, $20,000 above the fiscal year
    2005 enacted level. The Committee also continues bill language
    to allow a percentage of the appropriation to be used for the
    Native Nations Institute.

                     ENVIRONMENTAL DISPUTE RESOLUTION FUND

    Appropriation, fiscal year 2005.......................        $1,299,000
    Budget request, fiscal year 2006......................         (700,000)
    Recommended in the bill...............................         1,900,000
    Bill compared with:
        Appropriation, fiscal year 2005...................          +601,000
        Budget request, fiscal year 2006..................        +1,200,000

        Public Law 105-156 established the United States Institute
    for Environmental Conflict Resolution as part of the Morris K.
    Udall Scholarship and Excellence in National Environmental
    Policy Foundation. It also established in the Treasury an
    Environmental Dispute Resolution Fund to be available to
    establish and operate the Institute. The purpose of the
    Institute is to conduct environmental conflict resolution and
    training.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $1,900,000 for
    the Environmental Dispute Resolution Fund, an increase of
    $601,000 above the fiscal year 2005 enacted level.

                  NATIONAL ARCHIVES AND RECORDS ADMINISTRATION

                               Operating Expenses

    Appropriation, fiscal year 2005.......................      $264,809,000
    Budget request, fiscal year 2006......................       280,975,000
    Recommended in the bill...............................       283,975,000
    Bill compared with:
        Appropriation, fiscal year 2005...................       +19,166,000
        Budget request, fiscal year 2006..................        +3,000,000

        This appropriation provides the National Archives and
    Records Administration (NARA) with funds for its basic
    operations dealing with management of the Government's archives
    and records, operation of Presidential libraries, and for the
    review for declassification of classified security information.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $283,975,000
    for the operating expenses of NARA, an increase of
    $19,166,000,000 above the fiscal year 2005 enacted level and
    $3,000,000 above the budget request. The Committee provides
    $2,930,000 to make the initial move of Nixon Presidential
    materials from College Park, MD to Yorba Linda, CA and to
    provide for initial staffing and operations of the library.

                           Electronic Records Archive

    Appropriation, fiscal year 2005.......................       $35,627,000
    Budget request, fiscal year 2006......................        35,914,000
    Recommended in the bill...............................        35,914,000
    Bill compared with:
        Appropriation, fiscal year 2005...................          +287,000
        Budget request, fiscal year 2006..................  ................

        The electronic records archive appropriations supports all
    direct NARA actions and activities associated with this major
    project for preserving digitally created records for archival
    purposes, storing and managing them electronically, and
    ensuring appropriate long-term access. The appropriation
    supports a program office, research partnerships, and
    information technology analysis and design.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $35,914,000
    for the electronic records archive of the National Archives and
    Records Administration (NARA), an increase of $287,000 above
    the fiscal year 2005 enacted level and the same as the budget
    request.
        As stated in the Committee's report for fiscal year 2005,
    NARA is directed to submit to the House and Senate Committees
    on Appropriations quarterly reports on the cost, schedule, and
    performance of the Electronic Records Administration (ERA)
    project. These quarterly reports should provide information on
    the status of the project's schedule, budget, and expenditures
    as measured against a reported baseline; a prioritization of
    project risks and their mitigation efforts; and corrective
    actions taken to manage identified schedule slippages, cost
    overruns, or quality problems should they occur.

                            Repairs and Restoration

    Appropriation, fiscal year 2005.......................       $13,325,000
    Budget request, fiscal year 2006......................         6,182,000
    Recommended in the bill...............................         6,182,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        -7,143,000
        Budget request, fiscal year 2006..................  ................

        This appropriation provides for the repair, alteration, and
    improvement of Archives facilities and Presidential libraries
    nationwide. It enables the National Archives to maintain its
    facilities in proper condition for visitors, researchers, and
    employees, and also maintain the structural integrity of the
    buildings.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $6,182,000 for
    repairs and restoration, a decrease of $7,143,000 below the
    fiscal year 2005 enacted level and the same as the budget
    request.

     National Historical Publications and Records Commission Grants Program

                         (INCLUDING TRANSFER OF FUNDS)

    Appropriation, fiscal year 2005.......................        $4,960,000
    Budget request, fiscal year 2006......................  ................
    Recommended in the bill...............................         7,500,000
    Bill compared with:
        Appropriation, fiscal year 2005...................         2,540,000
        Budget request, fiscal year 2006..................        +7,500,000

        This program provides for grants funding that the
    Commission makes, nationwide, to preserve and publish records
    that document American history. Administered within the
    National Archives and Records Administration, which preserves
    federal records, the NHPRC helps state, local, and private
    institutions preserve non-federal records, helps publish the
    papers of major figures in American history, and helps
    archivists and records managers improve their techniques,
    training, and ability to serve a range of information users.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $7,500,000 for
    the National Historical Publications and Research Commission
    grants program, an increase of $2,540,000 above the fiscal year
    2005 enacted level and $7,500,000 above the budget request of
    which, $2,000,000 shall be transferred to the operating
    expenses account for the staffing and operating expenses of the
    National Historical Publications and Records Administration.

                      National Credit Union Administration

                           CENTRAL LIQUIDITY FACILITY

    ------------------------------------------------------------------------
                                                             Limitation on
                                          Limitation on      administrative
                                           direct loans         expenses
    ------------------------------------------------------------------------
    Fiscal year 2006 recommendation...    (1,500,000,000)          $323,000)
    Fiscal year 2005 appropriation....    (1,500,000,000)          (310,000)
    Fiscal year 2006 budget request...    (1,500,000,000)          $323,000)
        Comparison with fiscal year                   (0)          (+13,000)
     2005 appropriation...............
        Comparison with fiscal year                   (0)                (0)
     2006 request.....................
    ------------------------------------------------------------------------

        The Committee recommends a limitation of $1,500,000,000 on
    CLF lending activity to member credit unions from borrowed
    funds. This limitation represents the same level as fiscal year
    2005 and the same as the budget request. The Committee expects
    to be kept apprised of CLF lending activity.
        The Committee recommends the budget request of not more
    than $323,000 for administrative expenses, an increase of
    $13,000 above the fiscal year 2005 enacted level and the same
    as the budget request.

                   Community Development Revolving Loan Fund

    Fiscal year 2006 recommendation.......................          $950,000
    Fiscal year 2005 appropriation........................           992,000
    Fiscal year 2006 budget request.......................           950,000
        Comparison with fiscal year 2005 appropriation....           -42,000
        Comparison with fiscal year 2006 request..........                 0

        The Community Development Revolving Loan Fund Program
    (CDRLF) was established in 1979 to assist officially designated
    ``low-income'' credit unions in providing basic financial
    services to low-income communities. Low-interest loans and
    deposits are made available to assist these credit unions.
    Loans or deposits are normally repaid in five years, although
    shorter repayment periods may be considered. Technical
    assistance grants are also available to low-income credit
    unions. Earnings generated from the CDRLF are available to fund
    technical assistance grants in addition to funds provided for
    specifically in appropriations acts. Grants are available for
    improving operations as well as addressing safety and soundness
    issues.
        For fiscal year 2006 the Committee recommends $950,000 for
    the National Credit Union Administration's Community
    Development Revolving Loan Fund for technical assistance
    grants. While the Administration and NCUA have not requested
    additional funds for loans in fiscal year 2006, the Committee
    expects the CDRLF to continue making loans from their available
    funds derived from repaid loans and interest earned on previous
    loans to designated credit unions. The Committee encourages
    NCUA to support small low-income credit unions that seek
    professional development through programs such as those offered
    by the CDCU Institute.

                      National Transportation Safety Board

                             SALARIES AND EXPENSES

    Appropriation, fiscal year 2005.......................       $76,086,000
    Budget request, fiscal year 2006......................        76,700,000
    Recommended in the bill...............................        76,700,000
    Bill compared with:
        Appropriation, fiscal year 2005...................          +614,000
        Budget request, fiscal year 2006..................  ................

        Under the Independent Safety Board Act, the National
    Transportation Safety Board (NTSB) is responsible for improving
    transportation safety by investigating accidents, conducting
    special studies, developing recommendations to prevent
    accidents, evaluating the effectiveness of the transportation
    safety programs of other agencies, and reviewing appeals of
    adverse actions involving airman and seaman certificates and
    licenses, and civil penalties issued by the Department of
    Transportation. In addition, the NTSB operates the NTSB Academy
    in Ashburn, Virginia.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $76,700,000
    for salaries and expenses of the National Transportation Safety
    Board, an increase of $614,000 above the fiscal year 2005
    enacted level and the same as the fiscal year 2006 budget
    request. Further, the Committee is aware of NTSB's shortage of
    accident investigators and will maintain the requested level in
    order to allow NTSB to sustain its safety mission.

                             SALARIES AND EXPENSES

                                  (RESCISSION)

    Rescission, fiscal year 2005..........................       -$8,000,000
    Budget request, fiscal year 2006......................        -1,000,000
    Recommended in the bill...............................        -1,000,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        +7,000,000
        Budget request, fiscal year 2006..................  ................

                            COMMITTEE RECOMMENDATION

        The Committee recommends a rescission of $1,000,000 from
    funds provided in P.L. 106-246 for the investigation of Egypt
    Air 990 and Alaska Air 261 accidents. The Board has determined
    the causes of these accidents and the funding is no longer
    required.

                     Neighborhood Reinvestment Corporation

              PAYMENT TO THE NEIGHBORHOOD REINVESTMENT CORPORATION

    Appropriation, fiscal year 2005.......................      $114,080,000
    Budget request, fiscal year 2006......................       118,000,000
    Recommended in the bill...............................       118,000,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        +3,920,000
        Budget request, fiscal year 2006..................                 0

        The Neighborhood Reinvestment Corporation, established by
    title VI of Public Law 95-557 in October 1978, is committed to
    promoting reinvestment in older neighborhoods by local
    financial institutions working cooperatively with the community
    and local government. This is primarily accomplished by
    assisting community-based partnerships (NeighborWorks
    organizations) in a range of local revitalization efforts.
    Increase in homeownership among lower-income families is a key
    revitalization tool. Neighborhood Housing Services of America
    (NHSA) supports lending activities of the NeighborWorks
    organizations through a national secondary market that
    leverages its capital with private sector investment.
        The Committee recommends a funding level of $118,000,000
    for fiscal year 2005, the same amount as the budget request and
    an increase of $3,920,000 when compared to the fiscal year 2005
    appropriation.

                          Office of Government Ethics

                             SALARIES AND EXPENSES

    Appropriation, fiscal year 2005.......................       $11,148,000
    Budget request, fiscal year 2006......................        11,148,000
    Recommended in the bill...............................        11,148,000
    Bill compared with:
        Appropriation, fiscal year 2005...................                 0
        Budget request, fiscal year 2006..................                 0

        The Office of Government Ethics (OGE), established by the
    Ethics in Government Act of 1978, provides overall direction of
    executive branch policies designed to prevent conflicts of
    interest and insure high ethical standards. The OGE discharges
    its responsibilities to preserve and promote public confidence
    in the integrity of executive branch officials by developing
    rules and regulations pertaining to conflicts of interest, post
    employment restrictions, standards of conduct, and public and
    confidential financial disclosure in the executive branch. It
    monitors compliance with public and confidential financial
    disclosure requirements of the Ethics in Government Act of 1978
    and the Ethics Reform Act of 1989, to determine possible
    violations of applicable laws or regulations and recommending
    appropriate corrective action. OGE also consults with and
    assists various officials in evaluating the effectiveness of
    applicable laws and the resolution of individual problems, and
    prepares formal advisory opinions, informal letter opinions,
    policy memoranda, and Federal Register entries on how to
    interpret and comply with the requirements on conflicts of
    interest, post employment, standards of conduct, and financial
    disclosure. Finally, OGE issues and amends regulations
    implementing the procurement integrity provisions relating to
    negotiating for employment, post employment, and gratuities in
    the Office of Federal Procurement Policy Act Amendments of
    1988, P.L. 100-679.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $11,148,000
    for the Office of Government Ethics, the same amount as enacted
    in fiscal year 2005 and as the budget request.

                         Office of Personnel Management

                             SALARIES AND EXPENSES

    Appropriation, fiscal year 2005.......................      $124,496,000
    Budget request, fiscal year 2006......................       124,521,000
    Recommended in the bill...............................       119,952,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        -4,544,000
        Budget request, fiscal year 2006..................        -4,569,000

        The Office of Personnel Management (OPM) is the Federal
    Government agency responsible for management of Federal human
    resources policy and oversight of the merit civil service
    system. Although individual agencies are increasingly
    responsible for personnel operations, OPM provides a
    Government-wide policy framework for personnel matters, advises
    and assists agencies (often on a reimbursable basis), and
    ensures that agency operations are consistent with requirements
    of law, with emphasis on such issues as veterans preference.
    OPM oversees examining of applicants for employment, issues
    regulations and policies on hiring, classification and pay,
    training, investigations, and many other aspects of personnel
    management, and operates a reimbursable training program for
    the Federal Government's managers and executives. OPM is also
    responsible for administering the retirement, health benefits
    and life insurance programs affecting most federal employees,
    retired federal employees, and their survivors.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $119,952,000
    for the Office of Personnel Management (OPM), a decrease of
    $4,544,000 below the enacted fiscal year 2005 level and
    $4,569,000 below the budget request.
        The Committee's recommendation includes $6,983,000 for the
    enterprise human resources integration project; $1,450,000 for
    the e-human resources line of business project; $500,000 for
    the e-training project; and $1,412,000 for the e-payroll
    project as proposed in the budget request. The recommendation
    also provides $102,679,000 from appropriate trust funds to OPM.
        The Committee's recommendation makes the following changes
    to the budget request:
              -$2,649,000 from the Strategic Human Resources Policy
            Annual Performance Goal 7. The Committee directs OPM to
            continue the implementation and refining of the new
            human resources management systems at the Department of
            Defense and the Department of Homeland Security before
            bringing the system to other agencies and departments.
              -$3,000,000 from the Center for Financial Services
            for the costs of performance measurement, program
            evaluation and research projects. The budget materials
            do not support such a request.
              +$680,000 for the Call to Service Recruitment
            Initiative with the Partnership for Public Service to
            identify successful recruitment models across different
            college campuses that can be replicated across the
            Federal Government.
              +$400,000 for activities as required by the Voting
            Rights Act of 1965
        Operating Plans.--The Committee directs the office to
    submit an operating plan for fiscal year 2006, signed by the
    director for review by the Committees on Appropriations of both
    the House and Senate within 60 days of the bill's enactment.
    The operating plan must include funding levels for the various
    offices, centers, programs, and initiatives covered in the
    budget justification and supporting documents referenced in the
    House and Senate appropriations reports, and the statement of
    the managers.
        Budget Justifications.--While the budget justification
    materials are much improved over the fiscal year 2005
    submission, there is still a good deal of improvement to be
    done. For example, OPM is requesting to use fiscal year 2004
    carry-over funds to assist the duties and requirements of the
    Voting Rights Act of 1965 in fiscal year 2005. While the
    Committee is supportive of activities to uphold the Voting
    Rights Act of 1965, there is no mention of these activities in
    the fiscal year 2005 or fiscal year 2006 budget justifications.
    The Committee directs OPM to include these activities in future
    budget justifications.
        In addition, the Committee notes that the budget references
    a large number of initiatives, offices, centers, and councils,
    but the budget fails to include specific funding and resource
    information for the references items. Further, the budget
    describes the ``success'' or indicators of the programs only as
    ``deadlines met,'' ``milestones met,'' ``positive evaluation,''
    or ``green.'' While the Committee recognizes the prerogative of
    the administration to internally establish outcomes and
    measures, those measures are not translated adequately in the
    budget justification to meet the needs of the Committee in its
    role of overseeing spending. The Committee directs OPM to
    include in the budget justification for the Committees on
    Appropriations clear, detailed, and concise information on how
    the programs will be funded and how they will be measured.
        The Committee is concerned that the participation rate of
    veterans and disabled veterans in the Federal workforce is
    lower than estimated and job availability has shrunk in recent
    years. The Committee directs the Office of Management and
    Budget and the Office of Personnel Management to submit a
    report to Congress within 90 days after enactment on how many
    veterans and disabled veterans are employed in the Federal
    government by department and agency, including in the Executive
    Office of the President, the barriers that exist to hiring
    veterans and disabled veterans, and ways to increase the number
    of veterans and disabled veterans employed in the Federal
    Government to the level employed at the time of the Civil
    Service Reform Act of 1978.

                          Office of Inspector General

    Appropriation, fiscal year 2005.......................        $1,614,000
    Budget request, fiscal year 2006......................         1,614,000
    Recommended in the bill...............................         1,614,000
    Bill compared with:
        Appropriation, fiscal year 2005...................  ................
        Budget request, fiscal year 2006..................  ................

        This appropriation provides agency-wide audit,
    investigative, evaluation, and inspection functions to identify
    management and administrative deficiencies, which may create
    conditions for fraud, waste and mismanagement. The audits
    function provides internal agency audit, insurance audit, and
    contract audit services. Contract audits provide professional
    advice to agency contracting officials on accounting and
    financial matters regarding the negotiation, award,
    administration, repricing, and settlement of contracts.
    Internal audits review and evaluate all facets of agency
    operations, including financial statements. Evaluation and
    inspection services provide detailed technical evaluations of
    agency operations. Insurance audits review the operations of
    health and life insurance carriers, health care providers, and
    insurance subscribers. The investigative function provides for
    the detection and investigation of improper and illegal
    activities involving programs, personnel, and operations.

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $1,614,000 for
    the Office of Inspector General of the Office of Personnel
    Management, the same as the fiscal year 2005 enacted level and
    the budget request. In addition, the recommendation also
    provides $16,786,000 from appropriate trust funds to the Office
    of Inspector General.

          Government Payment for Annuitants, Employees Health Benefits

    Appropriation, fiscal year 2005.......................    $7,219,000,000
    Budget request, fiscal year 2006......................     8,135,000,000
    Recommended in the bill...............................     8,135,000,000
    Bill compared with:
        Appropriation, fiscal year 2005...................      +916,000,000
        Budget request, fiscal year 2006..................  ................

        This appropriation covers: (1) the Government's share of
    the cost of health insurance for 1,851,000 annuitants as
    defined in sections 8901 and 8906 of title 5, United States
    Code; (2) the Government's share of the cost of health
    insurance for about 12,000 annuitants (who were retired when
    the federal employees health benefits law became effective), as
    defined in the Retired Federal Employees Health Benefits Act of
    1960; and (3) the Government's contribution for payment of
    administrative expenses incurred by the Office of Personnel
    Management in administration of the Act.

          Government Payment for Annuitants, Employees Life Insurance

    Appropriation, fiscal year 2005.......................       $35,000,000
    Budget request, fiscal year 2006......................        35,000,000
    Recommended in the bill...............................        35,000,000
    Bill compared with:
        Appropriation, fiscal year 2005...................  ................
        Budget request, fiscal year 2006..................  ................

        This appropriation finances the Government's share of
    premiums, which is one-third the cost, for basic life insurance
    for annuitants retiring after December 31, 1989, and who are
    less than 65 years old.

            Payment to Civil Service Retirement and Disability Fund

    Appropriation, fiscal year 2005.......................    $9,987,000,000
    Budget request, fiscal year 2006......................     9,772,000,000
    Recommended in the bill...............................     9,772,000,000
    Bill compared with:
        Appropriation, fiscal year 2005...................      -215,000,000
        Budget request, fiscal year 2006..................  ................

        This appropriation provides for payment of annuities,
    including the payment of annuities under special acts for
    persons employed on the construction of the Panama Canal or
    their widows and widows of employees of the Lighthouse Service;
    payment of the Federal government share of retirement costs of
    the unfunded liability resulting from any statute authorizing
    new or liberalized benefits, extension of retirement coverage,
    or pay increases; transfers for interest on unfunded liability
    and payment of military service annuities covering interest on
    the unfunded liability and annuity disbursements for military
    service; payments for spouse equity providing survivor
    annuities to eligible former spouses of annuitants who died
    between September 1978 and May 1986 and did not elect survivor
    coverage; and transfers for payment of FERS supplemental
    liability covering annual amortization payments financing
    supplemental liabilities for FERS.

                           Office of Special Counsel

                             SALARIES AND EXPENSES

    Appropriation, fiscal year 2005.......................       $15,325,000
    Budget request, fiscal year 2006......................        15,325,000
    Recommended in the bill...............................        15,325,000
    Bill compared with:
        Appropriation, fiscal year 2005...................  ................
        Budget request, fiscal year 2006..................  ................

        The Office of Special Counsel: (1) investigates federal
    employee allegations of prohibited personnel practices
    (including reprisal for whistleblowing) and, when appropriate,
    prosecutes before the Merit Systems Protection Board; (2)
    provides a channel for whistleblowing by federal employees; and
    (3) enforces the Hatch Act. The Office may transmit
    whistleblower allegations to the agency head concerned and
    require an agency investigation and a report to the Congress
    and the President when appropriate.

                           COMMITTEE RECOMMENDATIONS

        The Committee recommends an appropriation of $15,325,000
    for the Office of Special Counsel, the same as the fiscal year
    2005 enacted level and the fiscal year 2006 budget request.

                            Selective Service System

                             SALARIES AND EXPENSES

    Appropriation, fiscal year 2005.......................       $26,090,000
    Budget Request, fiscal year 2006......................        25,650,000
    Recommended in the bill...............................        24,000,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        -2,090,000
        Budget request, fiscal year 2006..................        -1,650,000

        The Selective Service System was established by the
    Selective Service Act of 1948. The basic mission of the System
    is to be prepared to supply manpower to the Armed Forces
    adequate to ensure the security of the United States during a
    time of national emergency. Since 1973, the Armed Forces have
    relied on volunteers to fill military manpower requirements,
    but selective service registration was reinstituted in July,
    1980.
        For fiscal year 2006, the Committee recommends $24,000,000
    for the Selective Service System, $2,090,000 below the fiscal
    year 2005 funding level and $1,650,000 below the budget
    request. The Committee directs the Selective Service System to
    simply maintain the databases required for a draft as described
    in the Selective Service Act of 1948 plus any medical
    databases, train draft boards, and respond to inquiries
    regarding registration. No funds are provided to the Selective
    Service System to expand or augment its services or
    capabilities.

                  U.S. Interagency Council on the Homelessness

                               OPERATING EXPENSES

    Appropriation, fiscal year 2005.......................        $1,499,000
    Budget request, fiscal year 2006......................         1,800,000
    Recommended in the bill...............................         1,499,000
    Bill compared with:
        Appropriation, fiscal year 2005...................                 0
        Budget request, fiscal year 2006..................          -301,000

        The Committee recommends $1,499,000 for operating expenses
    of the Interagency Council on Homelessness, the same as the
    enacted level for 2005 and $301,000 below the requested amount.
    Staff turnover and the continued lack of cooperation between
    the Council and the Department of Housing and Urban Development
    remains a concern for the Committee. In addition the failure of
    the Administration to put forth a comprehensive funding plan
    for the elimination of chronic homelessness which includes
    other mainstream programs in other Departments indicates that
    the Council is not being successful in developing a government-
    wide response to this national problem. Therefore, the Council
    is instructed to work closely with HUD's Homeless program and
    present to the House and Senate Appropriations Committees no
    later than July 1, 2006 a comprehensive funding strategy that
    demonstrates that the President's initiative to end chronic
    homelessness will achieve its result within the 10 year
    timeframe originally stated and include the roles that HUD will
    have in that effort and the role of the ICH to support the
    activities of HUD's homeless programs and to obtain financial
    and programmatic input from related departments and agencies.

                          UNITED STATES POSTAL SERVICE

                       Payment to the Postal Service Fund

        The Postal Service is funded almost entirely by Postal rate
    payers rather than tax payers. Funds provided to the Postal
    Service in the Payment to the Postal Service Fund include the
    costs of revenue forgone on free and reduced-rate mail for the
    blind and overseas voters; reconciliation adjustments for
    amounts appropriated for free and reduced rate mail and the
    actual amounts required; and partial reimbursement for losses
    which the Postal Service incurred as a result of insufficient
    appropriations in fiscal years 1991 through 1993 and the
    additional revenues it would have received between 1993 and
    1998 in the absence of certain rate phasing provisions of the
    Revenue Forgone Act of 1993. Congress does not provide funds
    for either general operations or capital investments.

    Appropriation, fiscal year 2005.......................      $629,650,000
    Budget request, fiscal year 2006......................       149,059,000
    Recommended in the bill...............................       116,350,000
    Bill compared with:
        Appropriation, fiscal year 2005...................      -451,591,000
        Budget request, fiscal year 2006..................       +29,000,000

                            COMMITTEE RECOMMENDATION

        The Committee recommends an appropriation of $116,350,000
    in fiscal year 2006 for Payment to the Postal Service Fund, an
    increase of $29,000,000 to the President's request. This amount
    includes $58,767,000 for revenue forgone on free and reduced-
    rate mail, $28,583,000 for reconciliation amounts for past
    years pursuant to subsection 39 U.S.C. Sec. 2401 (c), and
    $29,000,000 for revenue forgone on free and reduced-rate mail
    pursuant to 39 U.S.C. Sec. 2401(d) and $73,000,000 is provided
    as an advance appropriation for fiscal year 2007.
        The Committee has concerns with the new process implemented
    this year by the Office of Management and Budget (OMB). In past
    years, the OMB would use the Postal Service's audit figures to
    base the advance appropriation request for free mailings for
    the blind and overseas voters. However, this year it appears
    that OMB simply took the average appropriation over a series of
    years to derive the President's request, apparently for the
    sole reason that the Postal Service's audit figures were higher
    than in previous years. This new system could produce funding
    amounts that may be either significantly lower or higher than
    actual sums that the Postal Service needs. Providing less than
    the Postal Service needs will only compound their financial
    burdens, something that the Committee has strongly urged the
    Postal Service to try and repair. In addition, the Committee
    would certainly not want to provide more funding than the
    Postal Service actually needs for these activities. The
    Committee is concerned that OMB's new use of averages in
    determining the amount for free mail is inaccurate and the
    Committee urges OMB to continue to use Postal Service audit
    figures in the future.
        Emergency preparedness.--The Committee is concerned that
    OMB, in the fiscal year 2006 budget request, has not given
    attention to the safety and security of our nation's mail
    system and protections for postal employees against terrorist
    threats. The Committee therefore directs OMB to report to the
    House and Senate Committees on Appropriations within 90 days of
    enactment of this Act the revised estimated amount of Federal
    funding that may be necessary to complete the Postal Service's
    work to secure the nation's mail system. The Committee further
    directs the USPS to provide a report within 90 days of
    enactment of this Act on the progress of the mail irradiation
    facility being built in the Washington, DC area.
        Sauk Village, Illinois.--The Committee recommends that the
    United States Postal Service evaluate the need for the
    communities of Lynwood, Illinois and Sauk Village, Illinois to
    establish a new 604 ZIP Code for these two communities to
    share. It is the Committee's understanding that no new
    resources or facilities would be needed to approve this change.
    The Committee directs the Postal Service to report its findings
    to the House and Senate Committees on Appropriations upon
    completion of the evaluation.

                            United States Tax Court

                             SALARIES AND EXPENSES

    Appropriation, fiscal year 2005.......................       $40,851,000
    Budget request, fiscal year 2006......................        48,998,000
    Recommended in the bill...............................        48,998,000
    Bill compared with:
        Appropriation, fiscal year 2005...................        +8,147,000
        Budget request, fiscal year 2006..................  ................

    The U.S. Tax Court adjudicates controversies involving
    deficiencies in income, estate, and gift taxes. The Court also
    has jurisdiction to determine deficiencies in certain excise
    taxes to issue declaratory judgments in the areas of
    qualifications of retirement plans, exemption of charitable
    organizations, and to decide certain cases involving disclosure
    of tax information by the Commissioner of the Internal Revenue
    Service.

                           COMMITTEE RECOMMENDATIONS

        The Committee recommends an appropriation of $48,998,000
    for the U.S. Tax Court, an increase of $8,147,000 above the
    fiscal year 2005 enacted level and the same as the budget
    request. Increased funds are provided for critical technology
    upgrades.

                    TITLE VIII--GENERAL PROVISIONS, THIS ACT

        Section 801. The Committee continues the provision
    requiring pay raises to be funded within appropriated levels in
    this Act or previous appropriations Acts.
        Section 802. The Committee continues the provision
    prohibiting pay and other expenses for non-Federal parties in
    regulatory or adjudicatory proceedings funded in this Act.
        Section 803. The Committee continues the provision
    prohibiting obligations beyond the current fiscal year and
    prohibits transfers of funds unless expressly so provided
    herein.
        Section 804. The Committee continues the provision limiting
    consulting service expenditures of public record in procurement
    contracts.
        Section 805. The Committee continues the provision
    prohibiting funds in this Act to be transferred without express
    authority.
        Section 806. The Committee continues the provision
    prohibiting the use of funds to engage in activities that would
    prohibit the enforcement of section 307 of the 1930 Tariff Act.
        Section 807. The Committee continues the provision
    concerning employment rights of Federal employees who return to
    their civilian jobs after assignment with the Armed Forces.
        Section 808. The Committee continues the provision
    concerning compliance with the Buy American Act.
        Section 809. The Committee continues a provision
    prohibiting the use of funds by any person or entity convicted
    of violating the Buy American Act.
        Section 810. The Committee modifies a provision specifying
    reprogramming procedures by subjecting the establishment of new
    offices and reorganizations to the reprogramming process.
        Section 811. The Committee continues the provision
    providing that fifty percent of unobligated balances may remain
    available for certain purposes.
        Section 812. The Committee includes a provision providing
    that funds used by the Executive Office of the President not be
    used to request any official background investigation from the
    Federal Bureau of Investigation.
        Section 813. The Committee includes a provision requiring
    that cost accounting standards not apply to a contract under
    the Federal Health Benefits Program.
        Section 814. The Committee continues a provision regarding
    non-foreign area cost of living allowances.
        Section 815. The Committee continues the provision
    prohibiting the expenditure of funds for abortions under the
    FEHBP.
        Section 816. The Committee continues the provision
    prohibiting the expenditure of funds for abortions under the
    FEHBP unless the life of the mother is in danger or the
    pregnancy is a result of an act of rape or incest.
        Section 817. The Committee continues a new provision
    waiving restrictions on the purchase of non-domestic articles,
    materials, and supplies in the case of acquisition by the
    Federal Government of information technology.
        Section 818. The Committee continues the provision
    prohibiting the use of funds for a proposed rule relating to
    the determination that real estate brokerage is a financial
    activity.
        Section 819. The Committee includes a provision that
    designates that some of the funds made available in Title I of
    this Act under the heading, ``Office of the Secretary,
    Transportation Planning, Research, and Development,'' shall be
    used to reimburse fixed-based general aviation operators and
    the providers of general aviation ground support services at
    Ronald Reagan Washington National Airport, and at airports
    within fifteen miles of that airport, for their financial
    losses incurred while the airports were closed as a result of
    the actions of the federal government following the terrorist
    attacks on the United States that occurred on September 11,
    2001. The funds designated for this purpose are available until
    expended and may be used only if the recipients of such funding
    release the U.S. Government from all claims arising from the
    closing of these aviation facilities.
        Section 820. The Committee includes a provision that
    extends the Federal Election Commission's administrative fine
    program through December 31, 2008.

                          TITLE IX--GENERAL PROVISIONS

                    Departments, Agencies, and Corporations

        Section 901. The Committee continues the provision
    authorizing agencies to pay costs of travel to the United
    States for the immediate families of federal employees assigned
    to foreign duty in the event of a death or a life threatening
    illness of the employee.
        Section 902. The Committee continues the provision
    requiring agencies to administer a policy designed to ensure
    that all of its workplaces are free from the illegal use of
    controlled substances.
        Section 903. The Committee continues the provision
    regarding price limitations on vehicles to be purchased by the
    Federal Government.
        Section 904. The Committee continues the provision allowing
    funds made available to agencies for travel, to also be used
    for quarter allowances and cost-of-living allowances.
        Section 905. The Committee continues the provision
    prohibiting the government, with certain specified exceptions,
    from employing non-U.S. citizens whose posts of duty would be
    in the continental U.S.
        Section 906. The Committee continues the provision ensuring
    that agencies will have authority to pay GSA bills for space
    renovation and other services.
        Section 907. The Committee continues the provision allowing
    agencies to finance the costs of recycling and waste prevention
    programs with proceeds from the sale of materials recovered
    through such programs.
        Section 908. The Committee continues the provision
    providing that funds may be used to pay rent and other service
    costs in the District of Columbia.
        Section 909. The Committee continues the provision
    prohibiting payments to persons filling positions for which
    they have been nominated after the Senate has voted not to
    approve the nomination.
        Section 910. The Committee continues the provision
    prohibiting interagency financing of groups absent prior
    statutory approval.
        Section 911. The Committee continues the provision
    authorizing the Postal Service to employ guards and give them
    the same special police powers as certain other federal guards.
        Section 912. The Committee continues the provision
    prohibiting the use of funds for enforcing regulations
    disapproved in accordance with the applicable law of the U.S.
        Section 913. The Committee continues the provision limiting
    the pay increases of certain prevailing rate employees.
        Section 914. The Committee continues the provision limiting
    the amount of funds that can be used for redecoration of
    offices under certain circumstances.
        Section 915. The Committee continues the provision to allow
    for interagency funding of national security and emergency
    telecommunications initiatives.
        Section 916. The Committee continues the provision
    requiring agencies to certify that a Schedule C appointment was
    not created solely or primarily to detail the employee to the
    White House.
        Section 917. The Committee continues the provision
    requiring agencies to administer a policy designed to ensure
    that all workplaces are free from discrimination and sexual
    harassment.
        Section 918. The Committee continues the provision
    prohibiting the payment of any employee who prohibits,
    threatens or prevents another employee from communicating with
    Congress.
        Section 919. The Committee continues the provision
    prohibiting Federal training not directly related to the
    performance of official duties.
        Section 920. The Committee continues the provision
    prohibiting the expenditure of funds for implementation of
    agreements in nondisclosure policies unless certain provisions
    are included.
        Section 921. The Committee continues the provision
    prohibiting propaganda, publicity and lobbying by executive
    agency personnel in support or defeat of legislative
    initiatives.
        Section 922. The Committee continues the provision
    prohibiting any federal agency from disclosing an employee's
    home address to any labor organization, absent employee
    authorization or court order.
        Section 923. The Committee continues the provision
    prohibiting funds to be used to provide non-public information
    such as mailing or telephone lists to any person or
    organization outside the government without the approval of the
    Committees on Appropriations.
        Section 924. The Committee continues the provision
    prohibiting the use of funds for propaganda and publicity
    purposes not authorized by Congress.
        Section 925. The Committee continues the provision
    directing agency employees to use official time in an honest
    effort to perform official duties.
        Section 926. The Committee continues the provision, with
    technical modifications, authorizing the use of funds to
    finance an appropriate share of the Joint Financial Management
    Improvement Program.
        Section 927. The Committee continues the provision, with
    technical modifications, authorizing agencies to transfer funds
    to the Governmentwide Policy account of GSA to finance an
    appropriate share of the Joint Financial Management Improvement
    Program and other purposes.
        Section 928. The Committee continues the provision, to
    prohibit any department or agency from using appropriated funds
    to independently contract with private companies to provide
    online employment applications and processing services.
        Section 929. The Committee continues the provision that
    permits breast feeding in a federal building or on federal
    property if the woman and child are authorized to be there.
        Section 930. The Committee continues the provision that
    permits interagency funding of the National Science and
    Technology Council and provides for a report on the budget and
    resources of the National Science and Technology Council. The
    report should include the entire budget of the National Science
    and Technology Council.
        Section 931. The Committee continues the provision
    requiring documents involving the distribution of federal funds
    to indicate the agency providing the funds and the amount
    provided.
        Section 932. The Committee extends the authorization period
    for agency franchise funds by striking ``October 1, 2005'' and
    inserting ``October 1, 2006'', as requested.
        Section 933. The Committee continues the provision
    prohibiting the use of funds to monitor personal information
    relating to the use of federal internet sites to collect,
    review, or create any aggregate list that includes personally
    identifiable information relating to access to or use of any
    federal internet site of such agency.
        Section 934. The Committee continues the provision
    requiring health plans participating in the FEHBP to provide
    contraceptive coverage and provides exemptions to certain
    religious plans.
        Section 935. The Committee continues the provision
    providing recognition of the U.S. Anti-Doping Agency as the
    official anti-doping agency.
        Section 936. The Committee continues a provision allowing
    funds for official travel to be used by departments and
    agencies, if consistent with OMB and Budget Circular A-126, to
    participate in the fractional aircraft ownership pilot program.
        Section 937. The Committee continues the provision
    prohibiting funds from being expended for the purchase of a
    product or service offered by Federal Prison Industries, Inc.
    unless the agency determines the products to constitute the
    best value to the buying agency.
        Section 938. The Committee continues a provision
    prohibiting funds for implementation of OPM regulations
    limiting detailees to the Legislative Branch, and implementing
    limitations on the Coast Guard Congressional Fellowship
    Program.
        Section 939. The Committee continues a provision requiring
    agencies to evaluate the creditworthiness of an individual
    before issuing the individual a government travel charge card
    and limits agency actions accordingly.
        Section 940. The Committee continues a provision providing
    that restricts the use of funds for federal law enforcement
    training facilities.
        Section 941. The Committee continues a provision that
    allows for transfer authority among certain offices of the
    Executive Office of the President.
        Section 942. The Committee includes a provision amending
    P.L. 105-270.
        Section 943. The Committee includes a provision concerning
    the use of funds for the ``e-gov'' initiative that were not
    appropriated specifically for that purpose.
        Section 944. The Committee continues a provision, with
    modifications, providing that the adjustment in rates of basic
    pay for employees under statutory pay systems taking effect in
    fiscal year 2006 shall be an increase of 3.1 percent.
        Section 945. The Committee includes a new provision
    prohibiting a credit card issuer from adjusting a card holder's
    annual percentage rate based on information unrelated to the
    account.
        Section 946. The Committee continues the provision that
    prohibits executive branch agencies from creating prepackaged
    news stories that are broadcast or distributed in the United
    States unless the story includes a clear notification within
    the text or audio of that news story that the prepackaged news
    story was prepared or funded by that executive branch agency.
    This provision confirms the opinion of the Government
    Accountability Office dated February 17, 2005 (B-304272)
        Section 947. The Committee includes a new provision
    regarding the Trade Sanctions Reform and Export Enhancement Act
    of 2000 authorizing the export of U.S. agricultural commodities
    to Cuba. Agriculture exports financed by the payment of cash in
    advance under the Act totaled more than $1 billion during the
    past 4 years. Section 903 of the Act prohibits the imposition
    of new restrictions or conditions on this trade absent prior
    notice to and approval by Congress. Despite this prohibition,
    the Department of Treasury unilaterally imposed a new
    restriction on this trade by a ``clarification'' published in a
    final rule on February 25, 2005--without notice to or the
    approval of Congress. The amendment prevents the use of funds
    to administer, implement, or enforce the final rule so that
    cash in advance transactions may continue in the manner in
    which they had been transacted prior to the administration of
    this restrictive new ``clarification''.

                  HOUSE OF REPRESENTATIVES REPORT REQUIREMENTS

        The following items are included in accordance with various
    requirements of the Rules of the House of Representatives:

                            Constitutional Authority

        Clause 3(d)(1) of the rule XXIII of the Rules of the House
    of Representatives states:

            Each report of a committee on a bill or joint
            resolution of a public character, shall include a
            statement citing the specific powers granted to the
            Congress in the Constitution to enact the law proposed
            by the bill or joint resolution.

        The Committee on Appropriations bases its authority to
    report this legislation from clause 7 of section 9 of Article I
    of the Constitution of the United States of America which
    states:

            No money shall be drawn from the Treasury but in
            consequence of Appropriations made by law . . .

        Appropriations contained in this Act are made pursuant to
    this specific power granted by the Constitution.

                      Appropriations Not Authorized by Law

        Pursuant to clause 3(f)(1) of rule XIII of the Rules of the
    House of Representatives, the following table lists the
    appropriations in the accompanying bill that are not authorized
    by law:

                               Transfer of Funds

        Pursuant to clause 3(f)(2) of rule XIII of the Rules of the
    House of Representatives, the following statement is submitted
    describing the transfers of funds provided in the accompanying
    bill.
        The Committee recommends the following transfers:

                  UNDER TITLE I--DEPARTMENT OF TRANSPORTATION

        Under the Office of the Secretary, ``Salaries and
    expenses'', the Secretary of Transportation is allowed to
    transfer amounts among the individual offices of the Office of
    the Secretary, subject to certain conditions.
        Under the Office of the Secretary, ``Payments to air
    carriers,'' the Secretary of Transportation is allowed to
    transfer overflight fees collected to the Federal Aviation
    Administration to repay funds borrowed during the fiscal year
    to fund the essential air service program.
        Under Federal Transit Administration, ``Administrative
    expenses'', the Administrator is authorized to transfer funds
    between offices.
        Title I, Sec. 162. The Committee continues the provision
    that allows transit funds appropriated before October 1, 2003,
    that remain available for expenditure to be transferred.
        Under Title I, Administrative Provisions--Department of
    Transportation, Sec. 180, the Committee continues a provision
    allowing the Secretary of Transportation to transfer unexpended
    sums from ``Office of the secretary, salaries and expenses'' to
    ``Minority business outreach''.

                     UNDER TITLE II--DEPARTMENT OF TREASURY

        Under the Department of the Treasury, Internal Revenue
    Service, up to $10,000,000 may be transferred to the
    Processing, Assistance and Management or Information Systems
    account for management of the Interagency Crime and Drug
    Enforcement program.
        Under the Department of the Treasury, Internal Revenue
    Service, up to $10,000,000 may be transferred to the
    Processing, Assistance and Management or Information Systems
    account for management of the Earned Income Tax Credit.
        Section 201 allows the transfer of 5 percent of any
    appropriation (or 3 percent of the Tax Law Enforcement
    appropriation) made available to the IRS to any other IRS
    appropriation, subject to prior Congressional approval.
        Section 211 authorizes transfers, up to 2 percent, between
    the Internal Revenue Service and the Treasury Inspector General
    for Tax Administration under certain circumstances.
        Section 211 authorizes transfers, up to 2 percent, between
    Departmental Offices, Office of the Inspector General,
    Financial Management Service, Alcohol and Tobacco Tax and Trade
    Bureau, Financial Crimes Enforcement Network, and the Bureau of
    the Public Debt appropriations under certain circumstances.

          UNDER TITLE III--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

        The Committee has included language under the Department of
    Housing and Urban Development transferring all uncommitted
    prior balances of excess rental charges as of fiscal year 2005
    and all collections made during fiscal year 2006 to the
    flexible subsidy fund.
        The Committee has included language under the Department of
    Housing and Urban Development transferring the following
    amounts to the salaries and expenses account for administrative
    expenses: FHA mutual mortgage insurance and general and special
    risk insurance program accounts ($558,767,000); GNMA guarantees
    of mortgage-backed securities loan guarantee program account
    ($10,700,000); community development loan guarantees program
    account ($0); Indian housing loan guarantee fund program
    account ($250,000); native Hawaiian housing loan guarantee fund
    ($35,000); and Native American housing block grants account
    ($150,000).
        The Committee has included language under the Department of
    Housing and Urban Development transferring up to $12,896,000
    from the manufactured housing fees trust fund to the
    manufactured housing standards program.
        The Committee has included language under the Department of
    Housing and Urban Development transferring no less than the
    following amounts to the working capital fund under the
    salaries and expenses account for development and management of
    information technology systems: tenant-based rental assistance
    ($5,900,000); project-based rental assistance ($1,000,000);
    public housing capital fund ($13,230,000); community
    development fund ($3,400,000); home investment partnership
    program account ($1,000,000); homeless assistance grants
    account ($1,000,000); housing for the elderly account
    ($400,000); housing for persons with disabilities account
    ($400,000); FHA mutual mortgage insurance program account
    ($18,281,000); FHA general and special risk insurance program
    account ($10,800,000).
        The Committee has included language under the Department of
    Housing and Urban Development transferring up to $200,000,000
    from the Tenant-Based Assistance Account to the Project-Based
    Assistance Account
        The Committee has included language under the Department of
    Housing and Urban Development transferring $24,00,000 from the
    various funds of the Federal Housing Administration to the
    Office of Inspector General.
        The Committee has included language under the Department of
    Housing and Urban Development transferring $60,000,000 from the
    federal housing enterprise oversight fund to the office of
    federal housing enterprise oversight account.

                         UNDER TITLE IV--THE JUDICIARY

        Under the Judiciary, Courts of Appeals, District Courts,
    and Other Judicial Services, funds may be transferred to the
    United States Marshals Service for courthouse security.
        Sec. 402. The Committee continues a provision permitting
    the Judiciary to transfer up to 5 percent of any appropriation
    with certain limitations

                      UNDER TITLE V--DISTRICT OF COLUMBIA

        The Committee has included language transferring
    $29,833,000 from the Court Services and Offender Supervision
    Agency to the Public Defender Service.
        The Committee has included language transferring fines
    collected under DC Official Code section 50-2201.05(b)(1) and
    (2) in the general funds to the Office of the Attorney General
    of the District of Columbia.
        The Committee has included language to allow for a transfer
    from the funds identified in the fiscal year 2005 comprehensive
    annual financial report as the District's Grant Disallowance
    balance.

               UNDER TITLE VI--EXECUTIVE OFFICES OF THE PRESIDENT

        Language is included under Office of National Drug Control
    Policy, ``Counterdrug Technology Assessment Center'' allowing
    for the transfer of funds to other Federal departments or
    agencies.
        Language is included under Federal Drug Control Programs,
    ``High Intensity Drug Trafficking Areas Programs'' which allows
    for the transfer of funds to other Federal departments or
    agencies.
        Language is included under Federal Drug Control Programs,
    ``Other Federal Drug Control Program'' allowing the transfer of
    funds to other Federal departments or agencies.
        Language is included under Official Residence of the Vice
    President, ``Operating Expenses'' allowing the transfer of
    funds to other Federal departments or agencies.

                     UNDER TITLE VII--INDEPENDENT AGENCIES

        Under Title VII Independent Agencies, a number of transfers
    are allowed: 1) the GSA allowances and Office Staff for Former
    Presidents account may transfer such sums as necessary to the
    Department of the Treasury for certain pension benefits, 2) the
    GSA Electronic Government Fund may transfer $3,000,000 to
    federal departments in pursuit of programs goals, 3) under the
    Election Assistance Commission, $2,800,000 to the National
    Institute of Standards and Technology, 4) under the National
    Archives and Records Administration, $2,000,000 is transferred
    from the National Historical Publications and Records
    Commission to the operating expenses account, and 5) under
    Office of Personnel Management, amounts from certain trust
    funds are transferred to salary and expenses accounts for
    oversight and administration of the funds.
        Title VII, Sec. 703. The Committee continues the provision
    providing that funds made available for activities of the
    Federal Building Fund may be transferred between appropriations
    with advance approval of the Congress.

             Statement of General Performance Goals and Objectives

        Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
    House of Representatives, the following is a statement of
    general performance goals and objectives for which this measure
    authorizes funding:
        The committee on Appropriations strongly considers program
    performance, including a program's success in developing and
    attaining outcome-related goals and objectives, in developing
    funding recommendations. This includes a review of agency and
    departmental performance plans, audits, and investigations of
    the U.S. General Accounting Offices of Inspector General, and
    other performance-related information. The Committee's goal is
    to provide adequate, but not excessive, resources for the
    programs covered by this Act, consistent with funding
    allocations provided by the Congressional budget process.

              Compliance With Rule XIII, Cl. 3(e) (Ramseyer Rule)

      In compliance with clause 3(e) of rule XIII of the Rules of
    the House of Representatives, changes in existing law made by
    the bill, as reported, are shown as follows (existing law
    proposed to be omitted is enclosed in black brackets, new
    matter is printed in italics, existing law in which no change
    is proposed is shown in roman):

                  CHAPTER 443 OF TITLE 49, UNITED STATES CODE

    CHAPTER 443--INSURANCE

               *       *       *       *       *       *       *

    Sec. 44302. General authority

      (a) * * *

               *       *       *       *       *       *       *

      (f) Extension of Policies.--
              (1) In general.--The Secretary shall extend through
            August 31, [2005,] 2006, and may extend through
            December 31, [2005,] 2006, the termination date of any
            insurance policy that the Department of Transportation
            issued to an air carrier under subsection (a) and that
            is in effect on the date of enactment of this
            subsection on no less favorable terms to the air
            carrier than existed on June 19, 2002; except that the
            Secretary shall amend the insurance policy, subject to
            such terms and conditions as the Secretary may
            prescribe, to add coverage for losses or injuries to
            aircraft hulls, passengers, and crew at the limits
            carried by air carriers for such losses and injuries as
            of such date of enactment and at an additional premium
            comparable to the premium charged for third-party
            casualty coverage under such policy.

               *       *       *       *       *       *       *

    Sec. 44303. Coverage

      (a) * * *
      (b) Air Carrier Liability for Third Party Claims Arising Out
    of Acts of Terrorism.--For acts of terrorism committed on or to
    an air carrier during the period beginning on September 22,
    2001, and ending on December 31, [2005,] 2006, the Secretary
    may certify that the air carrier was a victim of an act of
    terrorism and in the Secretary's judgment, based on the
    Secretary's analysis and conclusions regarding the facts and
    circumstances of each case, shall not be responsible for losses
    suffered by third parties (as referred to in section
    205.5(b)(1) of title 14, Code of Federal Regulations) that
    exceed $100,000,000, in the aggregate, for all claims by such
    parties arising out of such act. If the Secretary so certifies,
    the air carrier shall not be liable for an amount that exceeds
    $100,000,000, in the aggregate, for all claims by such parties
    arising out of such act, and the Government shall be
    responsible for any liability above such amount. No punitive
    damages may be awarded against an air carrier (or the
    Government taking responsibility for an air carrier under this
    subsection) under a cause of action arising out of such act.
    The Secretary may extend the provisions of this subsection to
    an aircraft manufacturer (as defined in section 44301) of the
    aircraft of the air carrier involved.

               *       *       *       *       *       *       *

                                  ----------

      SECTION 122 OF THE DEPARTMENTS OF COMMERCE, JUSTICE, AND STATE, THE
            JUDICIARY, AND RELATED AGENCIES APPROPRIATIONS ACT, 1998

                              (Public law 105-119)

      Sec. 122. (a) * * *

               *       *       *       *       *       *       *

      (g)(1) Notwithstanding any other provision of law and subject
    to paragraph (2), the Secretary of the Treasury is authorized
    to establish, for a period of [7 years] 8 years from date of
    enactment of this provision, a personnel management
    demonstration project providing for the compensation and
    performance management of not more than a combined total of 950
    employees who fill critical scientific, technical, engineering,
    intelligence analyst, language translator, and medical
    positions in the Bureau of Alcohol, Tobacco and Firearms.

               *       *       *       *       *       *       *

                                  ----------

                    SECTION 223 OF THE NATIONAL HOUSING ACT

                        miscellaneous housing insurance

        Sec. 223. (a) * * *

               *       *       *       *       *       *       *

        (f)(1) Notwithstanding any of the provisions of this Act,
    the Secretary is authorized, in his discretion, to insure under
    any section of this title a mortgage executed in connection
    with the purchase or refinancing of an existing multifamily
    housing project or the purchase or refinancing of existing debt
    of an existing hospital (or existing nursing home, existing
    assisted living facility, existing intermediate care facility,
    existing board and care home, or any combination thereof).

               *       *       *       *       *       *       *

                                  ----------

    DISTRICT OF COLUMBIA APPROPRIATIONS ACT, 2005

               *       *       *       *       *       *       *

    TITLE I--FEDERAL FUNDS

               *       *       *       *       *       *       *

                     Federal Payment for School Improvement

      For a Federal payment for a school improvement program in the
    District of Columbia, $40,000,000, to be allocated as follows:
    for the District of Columbia Public Schools, $13,000,000 to
    improve public school education in the District of Columbia;
    for the State Education Office, $13,000,000 to expand quality
    public charter schools in the District of Columbia, to remain
    available until September 30, 2006; for the Secretary of the
    Department of Education, $14,000,000 to provide opportunity
    scholarships for students in the District of Columbia in
    accordance with division C, title III of the District of
    Columbia Appropriations Act, 2004 (Public Law 108-199; 118
    Stat. 126), of which up to $1,000,000 may be used to administer
    and fund assessments: Provided, That of the $13,000,000 for the
    District of Columbia Public Schools, not less than $2,000,000
    shall be for a new incentive fund to reward high performing or
    significantly improved public schools; not less than $2,000,000
    shall be to support the Transformation School Initiative
    directed to schools in need of improvement: Provided further,
    That of the remaining amounts, the Superintendent of the
    District of Columbia Public Schools shall use such sums as
    necessary to provide grants to schools which are not eligible
    for other programs referenced under this heading, and to
    contract for management consulting services and implement
    recommended reforms: Provided further, That the Comptroller
    General shall conduct a financial audit of the District of
    Columbia Public Schools: Provided further, That of the
    $13,000,000 provided for public charter schools in the District
    of Columbia, $2,000,000 shall be for the City Build Initiative
    to create neighborhood-based charter schools; $2,750,000 shall
    be for the Direct Loan Fund for Charter Schools; $150,000 shall
    be for administrative expenses of the Office of Charter School
    Financing and Support to expand outreach and support of charter
    schools; $100,000 shall be for the D.C. Public Charter School
    Association to enhance the quality of charter schools;
    [$4,000,000] $4,000,000, to remain available until expended,
    shall be for the development of an incubator facility for
    public charter schools; $2,000,000 shall be for a charter
    school college preparatory program; and [$2,000,000 shall be
    for a new incentive fund] $2,000,000, to remain available until
    expended, shall be for a new incentive fund to reward high
    performing or significantly improved public charter schools:
    Provided further, That the District of Columbia government
    shall establish a dedicated account for the Office of Charter
    School Financing and Support (the Office) that shall consist of
    the Federal funds appropriated in this Act, any subsequent
    appropriations, any unobligated balances from prior fiscal
    years, any additional grants, and any interest and principal
    derived from loans made to Charter Schools, and repayment of
    dollars utilized to support credit enhancement earned in this
    or any fiscal year: Provided further, That the account shall be
    under the control of the District of Columbia Chief Financial
    Officer who shall use those funds solely for the purposes of
    carrying out the Credit Enhancement Program, Direct Loan Fund
    Grant Program, and any other charter school financing under the
    management of the Office: Provided further, That in this and
    subsequent fiscal years the Office of the Chief Financial
    Officer shall conduct an annual audit of the funds expended by
    the Office and provide an annual financial report to the Mayor,
    the Council of the District of Columbia, the Office of the
    District of Columbia Treasurer and the Committees on
    Appropriations of the House of Representatives and Senate for
    these funds showing, by object class, the expenditures made and
    the purpose therefor: Provided further, That not more than
    $250,000 of the total amount appropriated for this program may
    be used for administrative expenses and training expenses
    related to the cost of the National Charter School
    Conference(s) to be hosted by December 2006; and no more than 5
    percent of the funds appropriated for the direct loan fund may
    be used for administrative expenses related to the
    administration and annual audit of the direct loan, grant, and
    credit enhancement programs.

               *       *       *       *       *       *       *

                                  ----------

    SECTION 640 OF THE TREASURY AND GENERAL GOVERNMENT APPROPRIATIONS ACT,
                                      2000

      Sec. 640. (a) * * *

               *       *       *       *       *       *       *

      (c) Effective Date.--The amendments made by this section
    shall apply with respect to violations that relate to reporting
    periods that begin on or after January 1, 2000, and that end on
    or before December 31, [2005] 2008.
                                  ----------

          SECTION 403 OF THE GOVERNMENT MANAGEMENT REFORM ACT OF 1994

                              (Public Law 103-356)

    SEC. 403. FRANCHISE FUND PILOT PROGRAMS.

      (a) * * *

               *       *       *       *       *       *       *

      (f) Termination.--The provisions of this section shall expire
    on October 1, [2005] 2006.
                                  ----------

        SECTION 4 OF THE FEDERAL ACTIVITIES INVENTORY REFORM ACT OF 1998

    SEC. 4. APPLICABILITY.

      (a) * * *
      (b) Exceptions.--This Act does not apply to or with respect
    to the following:
              (1) * * *

               *       *       *       *       *       *       *

              (5) Executive agencies with fewer than 100 full-time
            employees as of the first day of the fiscal year.
            However, such an agency shall be subject to section 2
            to the extent it plans to conduct a public-private
            competition for the performance of an activity that is
            not inherently governmental.
                                  ----------

                  SECTION 604 OF THE FAIR CREDIT REPORTING ACT

    Sec. 604. Permissible purposes of reports

      (a) In General.--Subject to subsection (c), any consumer
    reporting agency may furnish a consumer report under the
    following circumstances and no other:
              (1) * * *

               *       *       *       *       *       *       *

              (3) To a person which it has reason to believe--
                      (A) * * *

               *       *       *       *       *       *       *

                      (F) otherwise has a legitimate business need
                    for the information--
                              (i) * * *
                              (ii) subject to subsection (d), to
                            review an account to determine whether
                            the consumer continues to meet the
                            terms of the account.

               *       *       *       *       *       *       *

      [(d) Reserved.]
      (d) Limitation on Use of Consumer Report.--
              (1) In general.--A credit card issuer may not use any
            negative information contained in a consumer report to
            increase any annual percentage rate applicable to a
            credit card account, or to remove or increase any
            introductory annual percentage rate of interest
            applicable to such account, for any reason other than
            an action or omission of the card holder that is
            directly related to such account.
              (2) Notice to consumer.--The limitation under
            paragraph (1) on the use by a credit card issuer of
            information in a consumer report shall be clearly and
            conspicuously described to the consumer by the credit
            card issuer in any disclosure or statement required to
            be made to the consumer under this title.

               *       *       *       *       *       *       *

                   Changes in the Application of Existing Law

        Pursuant to clause 3(f)(1)(A) of rule XIII of the Rules of
    the House of Representatives, the following statements are
    submitted describing the effect of provisions proposed in the
    accompanying bill which may be considered, under certain
    circumstances, to change the application of existing law,
    either directly or indirectly. The bill provides that
    appropriations shall remain available for more than one year
    for a number of programs for which the basic authorizing
    legislation does not explicitly authorize such extended
    availability. The bill provides, in some instances, for funding
    of agencies and activities where legislation has not yet been
    finalized. In addition, the bill carries language, in some
    instances, permitting activities not authorized by law, or
    exempting agencies from certain provisions of law, but which
    has been carried in appropriations acts for many years.
        The bill includes limitations on official entertainment,
    reception and representation expenses for the Secretary of
    Transportation, the Secretary of the Treasury and the National
    Transportation Safety Board. Similar provisions have appeared
    in many previous appropriations Acts. The bill includes a
    number of limitations on the purchase of automobiles,
    motorcycles, or office furnishings. Similar limitations have
    appeared in many previous appropriations Acts. Language is
    included in several instances permitting certain funds to be
    credited to the appropriations recommended.
        In Title VII of the bill, in connection with the General
    Services Administration, certain limitations on availability of
    revenue in the federal buildings fund and certain legislative
    provisions have been carried forward from last year.
        The bill continues a number of general provisions applying
    to agencies covered by the bill as well as certain provisions
    applying government-wide. These provisions have been carried in
    the prior year appropriations bill, and some have been carried
    for many years. Additionally, the Committee includes a number
    of new general provisions.

                     TITLE I--DEPARTMENT OF TRANSPORTATION

        Language is included under Office of the Secretary,
    ``Salaries and expenses'' specifying certain amounts for
    individual offices of the Office of the Secretary and
    specifying transfer authority among offices.
        Language is included under Office of the Secretary,
    ``Salaries and expenses'' which would allow crediting the
    account with up to $2,500,000 in user fees.
        Language is included under the Office of the Secretary,
    ``Salaries and expenses'' limiting the use of funds available
    for the position of Assistant Secretary for Public Affairs.
        Language is included that limits operating costs and
    capital outlays of the Working Capital Fund for the Department
    of Transportation and limits special assessments or
    reimbursable agreements levied against any program, project or
    activity funded in this Act to only those assessments or
    reimbursable agreements that are presented to and approved by
    the House and Senate Committees on Appropriations.
        Language is included under the Office of the Secretary,
    ``Minority business resource center'' limiting the amount of
    loans that can be subsidized.
        Language is included under Office of the Secretary,
    ``Minority business outreach'' specifying that funds may be
    used for business opportunities related to any mode of
    transportation.
        Language is included under the Office of the Secretary,
    ``Payments to air carriers'' that allows the Secretary of
    Transportation to repay any funds borrowed from to the Federal
    Aviation Administration to fund the essential air service
    program.
        Language is included under the Office of the Secretary,
    ``Payments to air carriers'' that allows the Secretary of
    Transportation to consider the relative subsidy requirements of
    carriers when determining between or among carriers competing
    to provide service.
        Language is included under the Federal Aviation
    Administration, ``Operations'' limiting funds for certain
    aviation program activities.
        Language is included under the Federal Aviation
    Administration, ``Operations'' that prohibits funds to plan,
    finalize, or implement any regulation that would promulgate new
    aviation user fees not specifically authorized by law after the
    date of enactment of this Act.
        Language is included under the Federal Aviation
    Administration, ``Operations'' that credits funds received from
    States, counties, municipalities, foreign authorities, other
    public authorities, and private sources for expenses incurred
    in the provision of agency services.
        Language is included under the Federal Aviation
    Administration, ``Operations'' that provides $7,500,000 for the
    contract tower cost sharing program.
        Language is included under the Federal Aviation
    Administration, ``Operations'' permitting the use of funds to
    enter into a grant agreement with a nonprofit standard setting
    organization to develop aviation safety standards.
        Language is included under the Federal Aviation
    Administration, ``Operations'' that prohibits the use of funds
    for new applicants of the second career training program.
        Language is included under the Federal Aviation
    Administration, ``Operations'' that prohibits the use of funds
    for Sunday premium pay unless an employee actually performed
    work during the time corresponding to the premium pay.
        Language is included under the Federal Aviation
    Administration, ``Operations'' that prohibits funds from being
    used to operate a manned auxiliary flight service station in
    the contiguous United States.
        Language is included under the Federal Aviation
    Administration, ``Operations'' that prohibits funds for
    conducting and coordinating activities on aeronautical charting
    and cartography through the Transportation Administrative
    Service Center.
        Language is included under the Federal Aviation
    Administration, ``Operations'' that prohibits the use of funds
    to purchase store gift cards or gift certificates through a
    government-issued credit card.
        Language is included under Federal Aviation Administration,
    ``Facilities and equipment'' that allows certain funds received
    for expenses incurred in the establishment and modernization of
    air navigation facilities to be credited to the account.
        Language is included under Federal Aviation Administration,
    ``Facilities and equipment'' that requires the Secretary of
    Transportation to transmit a comprehensive capital investment
    plan for the Federal Aviation Administration.
        Language is included under Federal Aviation Administration,
    ``Research, engineering, and development'' that allows certain
    funds received for expenses incurred in research, engineering
    and development to be credited to the account.
        Language is included under Federal Aviation Administration,
    ``Grants-in-aid for airports'' that limits funds available for
    the planning or execution of programs with obligations in
    excess of $3,600,000,000.
        Language is included under Federal Aviation Administration,
    ``Grants-in-aid for airports'' ``Liquidation of Contract
    Authorization'' that provides liquidating cash.
        Language is included under Federal Aviation Administration,
    ``Grants-in-aid for airports'' that provides not more than
    $81,346,000 for administration.
        Language is included under Federal Aviation Administration,
    ``Grants-in-aid for airports'' that allows funds to be used for
    airports to procure and install runway incursion prevention
    systems and devices.
        Language is included under Federal Aviation Administration,
    ``Grants-in-aid for airports'' that specifies $20,000,000 for
    the small community air service pilot program.
        Language is included under Federal Aviation Administration,
    ``Grants-in-aid for airports'' that rescinds fiscal year 2005
    contract authority above the obligation limitation.
        Section 101 requires FAA to accept airport equipment,
    subject to certain criteria.
        Section 102 limits the number of workyears on a particular
    contract.
        Section 103 prohibits FAA from requiring airport to provide
    specified items without cost, with some exceptions.
        Section 104 prohibits the use of funds for changing weight
    restrictions or prior permission rules at Teterboro Airport in
    New Jersey.
        Section 105 extends the terms and conditions of FAAs
    aviation insurance program for one additional year.
        Language is included under the Federal Highway
    Administration, ``Limitation on administrative expenses'' that
    provides a limitation on administrative expenses of the agency.
        Language is included under the Federal Highway
    Administration, ``Federal-aid highways'' that provides a
    limitation on obligations for the Federal-aid highways program
    and a limitation on research programs.
        Language is included under the Federal Highway
    Administration, ``Federal-aid highways'' that allows the
    Secretary of Transportation to use fees charged and collected
    on applicants for a direct loan, guaranteed loan, or line of
    credit as authorized under 23 U.S.C. 183 and 184 and makes the
    fees used not subject to any limitation on obligations.
        Language is included under the Federal Highway
    Administration, ``Federal-aid highways, (Liquidation of
    Contract Authorization)'' that provides liquidating cash.
        Section 110 distributes obligation authority among the
    Federal-aid highway programs.
        Section 111 provides that funds received by the Bureau of
    Transportation Statistics may be credited to the Federal aid
    highways account.
        Section 112 allows Nevada and Arizona to reimburse debt
    service payment on the Bypass Bridge at Hoover Dam project with
    future apportionments, in accordance with title 23, United
    States Code.
        Language is included under the Federal Motor Carrier Safety
    Administration, ``Motor Carrier Safety Operations and
    Programs'' that provides a limitation on obligations and
    liquidation of contract authorization for the operating
    expenses of the agency and for motor carrier safety research
    programs.
        Language is included under the Federal Motor Carrier Safety
    Administration, ``National Motor Carrier Safety Program'' that
    provides a limitation on obligations and liquidation of
    contract authorization for motor carrier safety grant programs.
        Section 120 subjects funds appropriated in this Act to the
    terms and conditions of section 350 of Public Law 107-87,
    including that the Secretary of Transportation submit a report
    on Mexico-domiciled motor carriers.
        Language is included under National Highway Traffic Safety
    Administration, ``Operations and research'' prohibiting the
    planning or implementation of any rulemaking on labeling
    passenger car tires for low rolling resistance.
        Language is included under National Highway Traffic Safety
    Administration, ``Highway traffic safety grants'' prohibiting
    the use of funds for construction, rehabilitation or remodeling
    costs or for office furniture for state, local, or private
    buildings.
        Language is included under National Highway Traffic Safety
    Administration, ``Highway traffic safety grants'' limiting
    funding available for grants administration.
        Language is included under National Highway Traffic Safety
    Administration, ``Highway traffic safety grants'' limiting
    funding available for grants administration.
        Language is included under National Highway Traffic Safety
    Administration, ``Highway traffic safety grants'' limiting the
    amount of funds available for technical assistance to states
    under section 410.
        Section 130 allows states to use funds provided under
    section 402 of title 23, U.S.C., to produce and place highway
    safety public service messages.
        Language is included under Federal Railroad Administration,
    ``Railroad rehabilitation and improvement program'' authorizing
    the Secretary to issue fund anticipation notes necessary to pay
    obligations under sections 511 and 513 of the Railroad
    Revitalization and Regulatory Reform Act.
        Language is included under Federal Railroad Administration,
    ``Railroad rehabilitation and improvement program'' that
    prohibits new direct loans or loan guarantee commitments using
    federal funds for credit risk premium under section 502 of the
    Railroad Revitalization and Regulatory Reform Act.
        Language is included under Federal Railroad Administration,
    ``Grants to the National Railroad Passenger Corporation''
    limiting passenger rail routes that may receive federal
    subsidies.
        Language is included under Federal Transit Administration,
    ``Administrative Expenses'' prohibiting funds for a permanent
    office of transit security.
        Language is included under Federal Transit Administration,
    ``Formula Grants'' making $2,500,000 available for the National
    Transit database.
        Language is included under Federal Transit Administration,
    ``Job Access and Reverse Commute Grants'' making up to
    $3,000,000 available for technical assistance.
        Section 160 exempts previously made transit obligations
    from limitations on obligations.
        Section 161 allows unobligated funds for projects under
    ``Capital Investment Grants'' in prior year appropriations Acts
    to be used this fiscal year.
        Section 162 allows the transfer of prior year
    appropriations from older accounts to be merged in to new
    accounts with similar, current activities.
        Section 191 prohibits obligations incurred during the
    current year from construction funds in excess of the
    appropriations and limitation contained in this Act or in any
    prior appropriation Act.
        Section 192 allows the Maritime Administration to furnish
    utilities and services and make repairs to any lease, contract,
    or occupancy involving government property under the control of
    MARAD and rental payments shall be covered into the Treasury as
    miscellaneous receipts.
        Language is included under Pipeline and Hazardous Materials
    Safety Administration, ``Hazardous materials safety'' which
    allows up to $1,200,000 in fees collected under 49 U.S.C.
    5108(g) to be deposited in the general fund of the Treasury as
    offsetting receipts.
        Language is included under Pipeline and Hazardous Materials
    Safety Administration, ``Hazardous materials safety'' that
    credits certain funds received for expenses incurred for
    training and other activities incurred in performed of
    hazardous materials exemptions and approval functions.
        Language is included under Pipeline and Hazardous Materials
    Safety Administration, ``Pipeline safety'' that requires the
    agency to fund the one-call state grant program.
        Language is included under Research and Special Programs
    Administration, ``Emergency preparedness grants'' specifying
    the Secretary of Transportation or his designee may obligate
    funds provided under this head.
        Language is included under Research and Innovative
    Technology Administration, ``Research and development'' that
    credits to the appropriation funds received from States and
    other sources for expenses incurred for training.
        Language is included under Office of Inspector General,
    ``Salaries and expenses'' that provides the Inspector General
    with all necessary authority to investigate allegations of
    fraud by any person or entity that is subject to regulation by
    the Department of Transportation. Language is also included
    under Office of Inspector General, ``Salaries and expenses''
    that authorizes the Office of Inspector General to investigate
    unfair or deceptive practices and unfair methods of competition
    by domestic and foreign air carriers and ticket agents.
        Language is included under Surface Transportation Board,
    ``Salaries and expenses'' allowing the collection of $1,250,000
    in fees established by the Chairman of the Surface
    Transportation Board; and providing that the sum appropriated
    from the general fund shall be reduced on a dollar-for-dollar
    basis as such fees are received.
        Section 170. The Committee continues the provision allowing
    the Department of Transportation to use funds for aircraft;
    motor vehicles; liability insurance; uniforms; or allowances,
    as authorized by law.
        Section 171. The Committee continues the provision limiting
    appropriations for services authorized by 5 U.S.C. 3109 to the
    rate for an Executive Level IV.
        Section 172. The Committee continues the provision
    prohibiting funds in this Act for salaries and expenses of more
    than 100 political and Presidential appointees in the
    Department of Transportation, and prohibits political and
    Presidential personnel assigned on temporary detail outside the
    Department of Transportation.
        Section 173. The Committee continues the provision
    prohibiting funds for the implementation of section 404 of
    title 23, United States Code.
        Section 174. The Committee continues the provision
    prohibiting recipients of funds made available in this Act from
    releasing personal information, including social security
    number, medical or disability information, and photographs from
    a driver's license or motor vehicle record, without express
    consent of the person to whom such information pertains; and
    prohibits the withholding of funds provided in this Act for any
    grantee if a state is in noncompliance with this provision.
        Section 175. The Committee continues the provision allowing
    funds received by the Federal Highway Administration, Federal
    Transit Administration, and the Federal Railroad Administration
    from states, counties, municipalities, other public
    authorities, and private sources to be used for expenses
    incurred for training may be credited to each agency's
    respective accounts.
        Section 176. The Committee continues the provision
    authorizing the Secretary of Transportation to allow issuers of
    any preferred stock to redeem or repurchase preferred stock
    sold to the Department of Transportation.
        Section 177. The Committee continues the provision
    prohibiting funds in Title I of this Act from being issued for
    any grant unless the Secretary of Transportation notifies the
    House and Senate Committees on Appropriations not less than
    three full business days before any discretionary grant award,
    letter of intent, or full funding grant agreement totaling
    $1,000,000 or more is announced by the department or its modal
    administrations.
        Section 178. The Committee continues a provision for the
    Department of Transportation allowing funds received from
    rebates, refunds, and similar sources to be credited to
    appropriations.
        Section 179. The Committee continues a provision allowing
    amounts from improper payments to a third party contractor that
    are lawfully recovered by the Department of Transportation to
    be available to cover expenses incurred in recovery of such
    payments.
        Section 180. The Committee continues a provision allowing
    the Secretary of Transportation to transfer unexpended sums
    from ``Office of the secretary, salaries and expenses'' to
    ``Minority business outreach''.
        Section 181. The Committee continues the provision
    prohibiting the Office of the Secretary of Transportation from
    approving assessments or reimbursable agreements pertaining to
    funds appropriated to the modal administrations in this Act,
    unless such assessments or agreements have completed the normal
    reprogramming process for Congressional notification.
        Section 182. The Committee continues the provision
    prohibiting the use of funds to implement an essential air
    service local cost share participation pilot program.

                      TITLE II--DEPARTMENT OF THE TREASURY

        Language has been included for Departmental Offices,
    Salaries and Expenses, that provides funds for operation and
    maintenance of the Treasury Building and Annex; hire of
    passenger motor vehicles; maintenance, repairs, and
    improvements of, and purchase of commercial insurance policies
    for real properties leased or owned overseas; official
    reception and representation expenses; unforeseen emergencies
    of a confidential nature; grants to state and local law
    enforcement groups to help fight money laundering; and
    Treasury-wide financial audits and the transfer of these funds.
        Language has been included for the Departmentwide Systems
    and Capital Investments Program that provides funds for the
    development and acquisition of automated data processing
    equipment, software, and services; and providing transfer
    authority.
        Language has been included for the Office of Inspector
    General that provides funds to carry out the provisions of the
    Inspector General Act of 1978, the hire of vehicles, official
    travel expenses, and unforeseen emergencies.
        Language has been included for the Treasury Inspector
    General for Tax Administration that provides for the purchase
    and hire of motor vehicles, services by 5 U.S.C. 3109, travel
    expenses, and unforeseen emergencies.
        Language has been included for the Financial Crime
    Enforcement Network that provides funds for hire of vehicles;
    the travel of non-federal personnel attending conferences or
    meetings involving financial law enforcement, intelligence, and
    regulation; the purchase of personal services contracts; and
    assistance to Federal law enforcement agencies with or without
    reimbursement.
        Language has been included for the Financial Management
    Service that provides multiple year availability for systems
    modernization funds.
        Language has been included for the Alcohol and Tobacco Tax
    and Trade Bureau that provides funds for the hire of passenger
    motor vehicles, cooperative research and development; and
    laboratory assistance to state and local agencies with or
    without reimbursement.
        Language has been included for the U.S. Mint that
    identifies the source of funding for the operations and
    activities of the U.S. Mint; specifies the level of funding for
    circulating coinage and protective service capital investments;
    and provides reimbursement to the General Accounting Office for
    a contract study.
        Language has been included for the Bureau of the Public
    Debt that provides appropriations from the General Fund will be
    reduced as fees are collected, and that a portion of the funds
    are to be derived from the Oil Spill Liability Trust Fund for
    administration of the Fund.
        Language is included for the Treasury Inspector General for
    Tax Administration that provides for the purchase and hire of
    motor vehicles, services authorized by 5 U.S.C. 3109, travel
    and representation expenses, and unforeseen emergencies.
        Section 210 allows the Department of the Treasury to
    purchase uniforms, insurance, and motor vehicles without regard
    to the general purchase price limitation, and enter into
    contracts with the State Department for health and medical
    services for Treasury employees in overseas locations.
        Section 211 authorizes transfers, up to 2 percent, between
    Departmental Offices, Office of the Inspector General,
    Financial Management Service, Alcohol and Tobacco Tax and Trade
    Bureau, Financial Crimes Enforcement Network, and the Bureau of
    the Public Debt appropriations under certain circumstances.
        Section 212 limits funds for purchase of law enforcement
    vehicles only if the purchase is consistent with vehicle
    management principles.
        Section 213 prohibits the Department of the Treasury from
    undertaking a redesign of the $1 Federal Reserve note.
        Section 214 provides for transfers from and reimbursements
    to the Salaries and Expenses appropriation of the Financial
    Management Service for the purposes of debt collection.
        Section 215 continues the Treasury's franchise fund.
        Section 216 requires authorization for the construction and
    operation of a museum by the United States Mint.
        Section 217 prohibits merging of the Mint and the Bureau of
    Engraving and Printing.
        Section 218 directs the Secretary to report on Chinese
    currency.
        Language is included under Internal Revenue Service,
    ``Processing, Assistance and Management'' dedicating funding
    for the Internal Revenue Service Oversight Board.
        Language is included for the Internal Revenue Service,
    ``Processing, assistance, and management'' that provides funds
    for management services, rent and utilities, services
    authorized by 5 U.S.C. 3109, and official reception and
    representation expenses. Language also has been included that
    provides funds for the Tax Counseling for the Elderly program,
    low-income taxpayer clinic grants, the IRS Oversight Board and
    official representation and reception expenses.
        Language is included for Internal Revenue Service, ``Tax
    law enforcement'' that provides funds for the purchase and hire
    of vehicles; services authorized by 5 U.S.C. 3109; and
    reimbursement of the Social Security Administration.
        Language is included for Internal Revenue Service,
    ``Information systems'' that provides funds for the hire of
    motor vehicles and services authorized by 5 U.S.C. 3109.
        Language has been included for Internal Revenue Service,
    ``Business systems modernization'' that provides for the
    capital asset acquisition of information technology, including
    management and related contractual costs of said acquisitions,
    including contractual costs associated with operation
    authorized by 5 U.S.C. 3109 and that restricts the use of the
    funds.
        Language is included for the Internal Revenue Service,
    ``Health insurance tax credit administration'' to implement the
    health insurance tax credit included in the Trade Act of 2003
    (Public Law 107-210).
        Section 202 requires the IRS to maintain a training program
    in taxpayer's rights, dealing courteously with taxpayers, and
    cross-cultural relations.
        Section 203 requires the IRS to institute policies and
    procedures, which will safeguard the confidentiality of
    taxpayer information.
        Section 204 requires the IRS to maintain and improve a 1-
    800 help line service for taxpayers.
        Section 205 prohibits the use of funds to modify the number
    or location of taxpayer assistance centers until certain
    criteria are met.

             TITLE III--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

        Language is included under Department of Housing and Urban
    Development, which designates funds for various programs,
    activities, and purposes, and specifies the uses of such funds.
        Language is included under Department of Housing and Urban
    Development, tenant-based rental assistance, which specifies
    the allocation of funds and limits the use of certain funds.
        Language is included under Department of Housing and Urban
    Development, project-based rental assistance, which specifies
    the allocation of funds.
        Language is included under Department of Housing and Urban
    Development, public housing capital fund, which limits the
    delegation of certain waiver authorities and prohibits funds
    from being used for certain activities.
        Language is included under Department of Housing and Urban
    Development, public housing operating fund, which sets the
    basis for the allocation of funds.
        Language is included under Department of Housing and Urban
    Development, housing opportunities for persons with AIDS which
    sets forth certain requirements for the allocation of funds.
        Language is included under Department of Housing and Urban
    Development, community development fund, which specifies the
    allocation of certain funds; limits the use of certain funds;
    and makes technical changes to the uses of certain funds.
        Language is included under Department of Housing and Urban
    Development, home investment partnerships program, which
    specifies the allocation of certain funds.
        Language is included under Department of Housing and Urban
    Development, homeless assistance grants, which establishes
    certain minimum funding and matching requirements; and requires
    grantees to integrate homeless programs with other social
    service providers.
        Language is included under Department of Housing and Urban
    Development, housing for the elderly, which specifies the
    allocation of certain funds; designates certain funds to be
    used only for certain grants; and allows the Secretary to waive
    certain provisions governing contract terms.
        Language is included under Department of Housing and Urban
    Development, housing for persons with disabilities, which
    specifies the allocation of certain funds; allows funds to be
    used to renew certain contracts; and allows the Secretary to
    waive certain provisions governing contract terms.
        Language is included under Department of Housing and Urban
    Development, flexible subsidy fund, which permits the use of
    excess rental charges.
        Language is included under Department of Housing and Urban
    Development, manufactured housing fees trust fund, which
    permits fees to be modified and permits temporary borrowing
    authority from the General Fund of the Treasury.
        Language is included under the Department of Housing and
    Urban Development, policy development and research, which
    specify the use of certain funds.
        Language is included under Department of Housing and Urban
    Development, fair housing and equal opportunity, which place
    restrictions on the use of funds for lobbying activities.
        Language is included under Department of Housing and Urban
    Development, management and administration, which specifies the
    allocation of funds; sets forth certain authorities of, and
    requirements on, the office of the Chief Financial Officer.
        Language is included under Department of Housing and Urban
    Development, Office of Federal Housing Enterprise Oversight,
    which permits temporary borrowing authority from the General
    Fund of the Treasury.
        Language is included under Department of Housing and Urban
    Development, administrative provisions; prohibits funds to
    investigate or prosecute certain lawful activities; prohibits
    funds to be used to change the terms and condition on which the
    audit of GNMA is conducted; revises allocations for housing
    opportunities for persons with AIDS grant recipients; waives
    certain section 8 rental payment limits for a demonstration
    program; relates to the expenditures for certain corporations
    and agencies; relates to allocations of funds in excess of
    budget estimates; requires submission of a spending plan for
    certain activities; requires certain reporting requirements
    regarding departmental funds; requires maintenance of certain
    rental assistance contract; allowing the use of certain funds
    for maintenance and disposition of certain properties; sets
    forth requirements for submission of budget justifications; and
    for allocation of certain assistance.

                            TITLE IV--THE JUDICIARY

        Under Supreme Court, ``Salaries and expenses'' language is
    included permitting certain funds to remain available until
    expended.
        Under Courts of Appeals, District Courts, and other
    Judicial Services, Court Security, language is included
    regarding additional uses of funds.
        Section 401 permits use of funds for activities authorized
    by 5 U.S.C. 3109.

                         TITLE V--DISTRICT OF COLUMBIA

        Language under ``Federal Payment for Resident Tuition
    Support'' provides that the amount appropriated shall remain
    available until expended.
        Language under ``Federal Payment for Emergency Planning and
    Security Costs'' provides that the amount appropriated shall
    remain available until expended.
        Language under ``Federal Payment to the District of
    Columbia Courts'': (1) provides that all amounts under this
    heading shall be apportioned quarterly by the Office of
    Management and Budget and obligated and expended in the same
    manner as funds appropriated for salaries and expenses of other
    Federal agencies, with payroll and financial services to be
    provided on a contractual basis with the General Services
    Administration; (2) allows funds made available for capital
    improvements to remain available until September 30, 2007; and
    (3) provides for the reallocation of funds.
        Language under ``Defender Services in the District of
    Columbia Courts'': (1) provides that the amount appropriated
    shall remain available until expended, (2) provides that all
    amounts under this heading shall be apportioned quarterly by
    the Office of Management and Budget and obligated and expended
    in the same manner as funds appropriated for salaries and
    expenses of other Federal agencies, with payroll and financial
    services to be provided on a contractual basis with the General
    Services Administration.
        Language under ``Federal Payment to the Court Services and
    Offender Supervision Agency for the District of Columbia'': (1)
    provides that all amounts under this heading shall be
    apportioned quarterly by the Office of Management and Budget
    and obligated and expended in the same manner as funds
    appropriated for salaries and expenses of other Federal
    agencies, with payroll and financial services to be provided on
    a contractual basis with the General Services Administration;
    (2) authorizes the Director to accept and use gifts to support
    offender and defendant programs and equipment and vocational
    training services to educate and train offenders and
    defendants, (3) authorizes the Director to charge fees to cover
    the costs of training and materials distributed at conferences.
        Language under ``Federal Payment to the District of
    Columbia Water and Sewer Authority'' provides that the amount
    appropriated shall remain available until expended.
        Language under ``Federal Payment for the Anacostia
    Waterfront Initiative'' provides that the amount appropriated
    shall remain available until September 30, 2007.
        Language under ``Federal Payment to the District of
    Columbia for Capital Development'' provides that the amount
    appropriated shall remain available until expended.
        Section 501 specifies that an appropriation for a
    particular purpose or object shall be considered as the maximum
    amount that may be expended for said purpose or object.
        Section 502 permits funds for travel and payment of dues.
        Section 503 appropriates funds for refunding overpayments
    of taxes collected and for paying settlements and judgments
    against the District of Columbia government.
        Section 504 prohibits the use of appropriation for
    publicity or propaganda purposes.
        Section 505 establishes reprogramming and transfer
    requirements.
        Section 506 prohibits use of funds only to the objects for
    which the appropriations were made.
        Section 507 clarifies the pay setting authority for
    District employees as the District's Merit Personnel Act rather
    than title 5 of the United States Code.
        Section 508 directs the Mayor of the District of Columbia
    to submit new fiscal year 2006 revenue estimates as of the end
    of such quarter.
        Section 509 prohibits the District government from renewing
    or extending sole source contracts without opening them to the
    competitive bidding process as set forth in section 303 of the
    District of Columbia Procurement Practices Act of 1985.
        Section 510 prohibits the use of Federal funds for
    salaries, expenses, or other costs associated with the offices
    of U.S. Senator or Representative under section 4(d) of the
    D.C. Statehood Constitutional Convention Initiatives of 1979.
        Section 511 prohibits Federal funds made available in this
    Act from being used to implement or enforce any system of
    registration for unmarried cohabitating couples.
        Section 512 allows the mayor to accept, obligate, and
    expend Federal, private, and other grants received by the
    District government that are not reflected in the amounts
    appropriated in this Act.
        Section 513 restricts the use of official vehicles to
    official duties and not between a residence and workplace,
    except in the case of a police officer who resides in the
    District of Columbia at the discretion of the Chief, an officer
    or employee of the D.C. Fire and Emergency Medical Services
    Department who resides in the District of Columbia and is on
    call 24 hours a day, the Mayor of the District of Columbia, and
    the Chairman of the Council of the District of Columbia.
        Section 514 prohibits the use of funds for the audit of the
    District government's annual financial statements unless the DC
    Inspector General either conducts, or contracts for, the audit.
        Section 515 prohibits the use of appropriated funds by the
    Corporation Counsel or any other officer or entity of the
    District government to provide assistance for any petition
    drive or civil action which seeks to require Congress to
    provide for voting representation in Congress for the District
    of Columbia.
        Section 516 prohibits the use of any funds in this Act to
    carry out any program of distributing sterile needles or
    syringes for the hypodermic injection of any illegal drug.
        Section 517 requires the Chief Financial Officers of the
    District of Columbia to certify that they understand the duties
    and restrictions applicable to their agency as a result of this
    Act.
        Section 518 includes a ``conscience clause'' on legislation
    that pertains to contraceptive coverage by health insurance
    plans.
        Section 519 requires the Mayor of the District of Columbia
    to submit quarterly reports on various issues pertaining to the
    District of Columbia.
        Section 520 requires the CFO to submit a revised
    appropriated funds operating budget in the format of the budget
    that the District government submitted pursuant to section 442
    of the DC Home Rule Act for all agencies no later than 30
    calendar days after the date of enactment of this Act.
        Section 521 prohibits the transfer of Federal funds to any
    department, agency, or instrumentality of the U.S. government,
    except pursuant to a transfer made by, or transfer authority
    provided in, this or any other appropriation Act.
        Section 522 requires the District of Columbia Courts to
    transfer all fines levied and collected by the Courts in cases
    charging Driving Under the Influence and Driving While Impaired
    to the general treasury of the District of Columbia to remain
    available until expended and used by the Office of the
    Corporation Counsel for enforcement and prosecution of District
    traffic alcohol laws.
        Section 523 prohibits the use of any funds in the Act to:
    (1) pay the fees of an attorney who represents a party in an
    action or any attorney who defends any action, including an
    administrative proceeding, brought against D.C. Public Schools
    under the Individuals With Disabilities Act (IDEA) in excess of
    $4,000 for that action; (2) pay the fees of an attorney or firm
    whom the CFO determines to have a pecuniary interest, either
    through an attorney, officer or employee of the firm, in any
    special education diagnostic services, schools, or other
    special education service providers; and (3) require all
    savings to be used to expand special education services within
    the District.
        Section 524 requires attorneys in special education cases
    brought under IDEA to comply with several reporting
    requirements and allow the Inspector General to conduct
    investigations to determine the accuracy of the certifications.
        Section 525 allows for appropriations in this Act to be
    increased by no more than $42,000,000 from unexpended general
    funds, and may be used only for unanticipated one-time
    expenditures, to avoid deficit spending, for debt reduction,
    for unanticipated program needs, or to avoid revenue
    shortfalls.
        Section 526 makes a technical correction under the heading
    of ``Federal Payment for School Improvement'' in Public Law
    108-355 (118 Stat. 1327).
        Section 527 allows for the obligation of additional ``Other
    Type Funds'' under certain circumstances.
        Section 528 allows for the obligation of additional ``Local
    Funds'' under certain circumstances.
        Section 529 allows for short-term borrowing from the
    emergency and contingency reserve funds established under
    section 450A of the District of Columbia Home Rule Act (Public
    Law 98-198; D.C. Official Code, sec. 1-204.50a) under certain
    circumstances.
        Section 530 maintains funding for the District of Columbia
    Inspector General.

                  TITLE VI--EXECUTIVE OFFICE OF THE PRESIDENT

        The Committee has continued language that mandates that
    unused amounts of the President's expense allowance will revert
    to the Treasury and which provides funds for service authorized
    by 5 U.S.C. 3109, subsistence expenses, hire of vehicles,
    newspapers, periodicals, teletype news service, travel, and
    official entertainment expenses. The Committee has continued
    language making funds available for reimbursement to the White
    House Communications Agency.
        The Committee has continued language that provides funds
    for operation and maintenance of the White House for official
    entertainment expenses; language specifying the authorized use
    of funds; language specifying that reimbursable expenses are
    the exclusive authority of the Executive Residence to incur
    obligations and receive offsetting collections; language
    requiring the sponsors of political events to make advance
    payments; language requiring the national committee of the
    political party of the President to maintain $25,000 on
    deposit; language requiring the Executive Residence to ensure
    that amounts owed are billed within 60 days of a reimbursable
    event and collected within 30 days of the bill notice; language
    authorizing the Executive Residence to charge and assess
    interest and penalties on late payments; language authorizing
    all reimbursements to be deposited into the Treasury as a
    miscellaneous receipt; language requiring a report to the
    Committee on the reimbursable expenses within 90 days of the
    end of the fiscal year; language requiring the Executive
    Residence to maintain a system for tracking and classifying
    reimbursable events; and language specifying that the Executive
    Residence is not exempt from the requirements of subchapter I
    or II of chapter 37 of title 31, United States Code.
        The Committee has continued language that provides funds
    for the hire of vehicles and funds for a capital investment
    plan that provides for the continued modernization of the
    information technology infrastructure.
        The Committee has continued language that provides funds
    for expenses, the hire of vehicles, carrying out provisions of
    chapter 35 of 44 U.S.C., directs that funds shall be applied
    only to items for which appropriations were made, prohibits the
    review of agricultural marketing orders and the alteration of
    certain testimony. The Committee has continued language
    prohibiting the use of funds for the purpose of OMB
    calculating, preparing, or approving any tabular or other
    material that proposes the sub-allocation of budget authority
    or outlays by the Committees on Appropriations.
        The Committee has continued language that provides funds
    for expenses, research, official reception and representation
    expenses, participation in joint projects, and allows for the
    acceptance of gifts. The Committee has continued language
    providing funds for model state drug law conferences and policy
    research and evaluation and making these funds available until
    expended.
        The Committee has continued language that provides funds
    for counternarcotics research and development and the
    technology transfer program.
        The Committee has continued language that provides a
    certain level of funding for State, local and Federal drug
    control efforts, and requires obligation of funds within a
    specified period of time. The Committee continues language
    regarding the availability of funds.
        The Committee has continued language that provides funds
    for operation and maintenance of the official residence of the
    Vice President, the hire of vehicles, official entertainment
    expenses and provides for the transfer of funds as necessary.
    The Committee has continued language that enables the Vice
    President to provide assistance to the President, services
    authorized by 5 U.S.C. 3109, subsistence, and the hire for
    vehicles.
        Under the Office of Management and Budget, prohibits the
    use for funds to restrict the implementation of marketing
    orders issued pursuant to the Agriculture Marketing Agreement
    Act.
        Under the Office of National Drug Control Policy, prevents
    a change from the current allocation of funds for the media
    campaign.

                        TITLE VII--INDEPENDENT AGENCIES

        Language has been included for the General Services
    Administration Federal Buildings Fund that specifies the
    conditions under which funds made available can be used and
    designates certain projects that can be undertaken. Many
    technical provisions have been included regarding use of funds
    in the Federal Buildings Fund that are not specifically
    authorized by law. Language has been included that limits
    project funds available for construction and repair and
    alteration of buildings not authorized by law. A more detailed
    analysis of the Federal Buildings Funds can be found in the
    General Services Administration chapter of this report.
        Language has been included for General Services
    Administration government-wide policy that provides funds for
    policy and evaluation activities associated with the management
    of real and personal property assets and certain administrative
    services; support responsibilities relating to acquisition,
    telecommunications, information technology management, and
    related technology activities; and services authorized by 5
    U.S.C. 3109.
        Language has been included for General Services
    Administration operating expenses that provides funds for
    expenses for activities associated with personal and real
    property; technology management and activities; information
    access activities; agency-wide policy direction and management;
    other support services; and official reception and
    representation expenses.
        Language has been included for the GSA Office of Inspector
    General that provides funds for information and detection of
    fraud; and for awards in recognition of efforts that enhance
    the office.
        Language has been included for the GSA electronic
    government fund that allows these funds to be transferred.
        Language has been included for allowances and office staff
    for former Presidents that allow a portion of these funds to be
    transferred.
        Section 701 provides that costs included in rent received
    from government corporations for operation, protection,
    maintenance, upkeep, repair and improvement shall be credited
    to the Federal Buildings Fund.
        Section 702 authorizes the use of funds for the hire of
    motor vehicles.
        Section 703 provides that funds made available for
    activities of the Federal Buildings Fund may be transferred
    between appropriations with advance approval of the Congress.
        Section 704 prohibits the use of funds for developing
    courthouse construction requests that do not meet GSA standards
    and the priorities of the Judicial Conference.
        Section 705 provides that no funds may be used to increase
    the amount of occupiable square feet, provide cleaning
    services, security enhancements, or any other service usually
    provided, to any agency which does not pay the requested rent.
        Section 706 permits GSA to pay small claims (up to
    $250,000) made against the government.
        Section 707 prohibits GSA from conveying a property in
    Phoenix, Arizona.
        Language has been included which stipulates that mail for
    oversees voting and mail for the blind is free.
        Language has been included which stipulates that 6-day
    delivery and rural mail delivery shall continue at not less
    than the 1983 level
        Language has been included which prohibits funds from being
    used to charge a fee to a child support enforcement agency
    seeking the address of a postal customer.
        Under the National Credit Union Administration, language
    has been included which limits funds for administrative
    expenses at $323,000.
        Under the Selective Service System, language has been
    included which prohibits funds for being used to induct any
    person into the US Armed Forces.

                    TITLE VIII--GENERAL PROVISIONS, THIS ACT

        Section 801. The Committee continues the provision
    requiring pay raises to be funded within appropriated levels in
    this Act or previous appropriations Acts.
        Section 802. The Committee continues the provision
    prohibiting pay and other expenses for non-Federal parties in
    regulatory or adjudicatory proceedings funded in this Act.
        Section 803. The Committee continues the provision
    prohibiting obligations beyond the current fiscal year and
    prohibits transfers of funds unless expressly so provided
    herein.
        Section 804. The Committee continues the provision limiting
    consulting service expenditures of public record in procurement
    contracts.
        Section 805. The Committee continues the provision
    prohibiting funds in this Act to be transferred without express
    authority.
        Section 806. The Committee continues the provision
    prohibiting the use of funds to engage in activities that would
    prohibit the enforcement of section 307 of the 1930 Tariff Act.
        Section 807. The Committee continues the provision
    concerning employment rights of Federal employees who return to
    their civilian jobs after assignment with the Armed Forces.
        Section 808. The Committee continues the provision
    concerning compliance with the Buy American Act.
        Section 809. The Committee continues a provision
    prohibiting the use of funds by any person or entity convicted
    of violating the Buy American Act.
        Section 810. The Committee modifies a provision specifying
    reprogramming procedures by subjecting the establishment of new
    offices and reorganizations to the reprogramming process.
        Section 811. The Committee continues the provision
    providing that fifty percent of unobligated balances may remain
    available for certain purposes.
        Section 812. The Committee includes a provision providing
    that funds used by the Executive Office of the President not be
    used to request any official background investigation from the
    Federal Bureau of Investigation.
        Section 813. The Committee includes a provision requiring
    that cost accounting standards not apply to a contract under
    the Federal Health Benefits Program.
        Section 814. The Committee continues a provision regarding
    non-foreign area cost of living allowances.
        Section 815. The Committee continues the provision
    prohibiting the expenditure of funds for abortions under the
    FEHBP.
        Section 816. The Committee continues the provision
    prohibiting the expenditure of funds for abortions under the
    FEHBP unless the life of the mother is in danger or the
    pregnancy is a result of an act of rape or incest.
        Section 817. The Committee continues a new provision
    waiving restrictions on the purchase of non-domestic articles,
    materials, and supplies in the case of acquisition by the
    Federal Government of information technology.
        Section 818. The Committee continues the provision
    prohibiting the use of funds for a proposed rule relating to
    the determination that real estate brokerage is a financial
    activity.
        Section 819. The Committee continues the provision
    prohibiting the use of funds to implement an Essential Air
    Service (EAS) local Cost Share Participation pilot program.
        Section 820. The Committee includes a provision that
    extends the Federal Election Commission's administrative fine
    program through December 31, 2008.

                      TITLE IX--GOVERNMENT-WIDE PROVISIONS

                    Departments, Agencies, and Corporations

        Section 901. The Committee continues the provision
    authorizing agencies to pay costs of travel to the United
    States for the immediate families of federal employees assigned
    to foreign duty in the event of a death or a life threatening
    illness of the employee.
        Section 902. The Committee continues the provision
    requiring agencies to administer a policy designed to ensure
    that all of its workplaces are free from the illegal use of
    controlled substances.
        Section 903. The Committee continues the provision
    regarding price limitations on vehicles to be purchased by the
    Federal Government.
        Section 904. The Committee continues the provision allowing
    funds made available to agencies for travel, to also be used
    for quarter allowances and cost-of-living allowances.
        Section 905. The Committee continues the provision
    prohibiting the government, with certain specified exceptions,
    from employing non-U.S. citizens whose posts of duty would be
    in the continental U.S.
        Section 906. The Committee continues the provision ensuring
    that agencies will have authority to pay GSA bills for space
    renovation and other services.
        Section 907. The Committee continues the provision allowing
    agencies to finance the costs of recycling and waste prevention
    programs with proceeds from the sale of materials recovered
    through such programs.
        Section 908. The Committee continues the provision
    providing that funds may be used to pay rent and other service
    costs in the District of Columbia.
        Section 909. The Committee continues the provision
    prohibiting payments to persons filling positions for which
    they have been nominated after the Senate has voted not to
    approve the nomination.
        Section 910. The Committee continues the provision
    prohibiting interagency financing of groups absent prior
    statutory approval.
        Section 911. The Committee continues the provision
    authorizing the Postal Service to employ guards and give them
    the same special police powers as certain other federal guards.
        Section 912. The Committee continues the provision
    prohibiting the use of funds for enforcing regulations
    disapproved in accordance with the applicable law of the U.S.
        Section 913. The Committee continues the provision limiting
    the pay increases of certain prevailing rate employees.
        Section 914. The Committee continues the provision limiting
    the amount of funds that can be used for redecoration of
    offices under certain circumstances.
        Section 915. The Committee continues the provision to allow
    for interagency funding of national security and emergency
    telecommunications initiatives.
        Section 916. The Committee continues the provision
    requiring agencies to certify that a Schedule C appointment was
    not created solely or primarily to detail the employee to the
    White House.
        Section 917. The Committee continues the provision
    requiring agencies to administer a policy designed to ensure
    that all workplaces are free from discrimination and sexual
    harassment.
        Section 918. The Committee continues the provision
    prohibiting the payment of any employee who prohibits,
    threatens or prevents another employee from communicating with
    Congress.
        Section 919. The Committee continues the provision
    prohibiting Federal training not directly related to the
    performance of official duties.
        Section 920. The Committee continues the provision
    prohibiting the expenditure of funds for implementation of
    agreements in nondisclosure policies unless certain provisions
    are included.
        Section 921. The Committee continues the provision
    prohibiting propaganda, publicity and lobbying by executive
    agency personnel in support or defeat of legislative
    initiatives.
        Section 922. The Committee continues the provision
    prohibiting any federal agency from disclosing an employee's
    home address to any labor organization, absent employee
    authorization or court order.
        Section 923. The Committee continues the provision
    prohibiting funds to be used to provide non-public information
    such as mailing or telephone lists to any person or
    organization outside the government without the approval of the
    Committees on Appropriations.
        Section 924. The Committee continues the provision
    prohibiting the use of funds for propaganda and publicity
    purposes not authorized by Congress.
        Section 925. The Committee continues the provision
    directing agency employees to use official time in an honest
    effort to perform official duties.
        Section 926. The Committee continues the provision, with
    technical modifications, authorizing the use of funds to
    finance an appropriate share of the Joint Financial Management
    Improvement Program.
        Section 927. The Committee continues the provision, with
    technical modifications, authorizing agencies to transfer funds
    to the Governmentwide Policy account of GSA to finance an
    appropriate share of the Joint Financial Management Improvement
    Program and other purposes.
        Section 928. The Committee continues the provision, to
    prohibit any department or agency from using appropriated funds
    to independently contract with private companies to provide
    online employment applications and processing services.
        Section 929. The Committee continues the provision that
    permits breast feeding in a federal building or on federal
    property if the woman and child are authorized to be there.
        Section 930. The Committee continues the provision that
    permits interagency funding of the National Science and
    Technology Council and provides for a report on the budget and
    resources of the National Science and Technology Council. The
    report should include the entire budget of the National Science
    and Technology Council.
        Section 931. The Committee continues the provision
    requiring documents involving the distribution of federal funds
    to indicate the agency providing the funds and the amount
    provided.
        Section 932. The Committee extends the authorization period
    for agency franchise funds by striking ``October 1, 2005'' and
    inserting ``October 1, 2006'', as requested.
        Section 933. The Committee continues the provision
    prohibiting the use of funds to monitor personal information
    relating to the use of federal internet sites to collect,
    review, or create any aggregate list that includes personally
    identifiable information relating to access to or use of any
    federal internet site of such agency.
        Section 934. The Committee continues the provision
    requiring health plans participating in the FEHBP to provide
    contraceptive coverage and provides exemptions to certain
    religious plans.
        Section 935. The Committee continues the provision
    providing recognition of the U.S. Anti-Doping Agency as the
    official anti-doping agency.
        Section 936. The Committee continues a provision allowing
    funds for official travel to be used by departments and
    agencies, if consistent with OMB and Budget Circular A-126, to
    participate in the fractional aircraft ownership pilot program.
        Section 937. The Committee continues the provision
    prohibiting funds from being expended for the purchase of a
    product or service offered by Federal Prison Industries, Inc.
    unless the agency determines the products to constitute the
    best value to the buying agency.
        Section 938. The Committee continues a provision
    prohibiting funds for implementation of OPM regulations
    limiting detailees to the Legislative Branch, and implementing
    limitations on the Coast Guard Congressional Fellowship
    Program.
        Section 939. The Committee continues a provision requiring
    agencies to evaluate the creditworthiness of an individual
    before issuing the individual a government travel charge card
    and limits agency actions accordingly.
        Section 940. The Committee continues a provision providing
    that restricts the use of funds for federal law enforcement
    training facilities.
        Section 941. The Committee continues a provision that
    allows for transfer authority among certain offices of the
    Executive Office of the President.
        Section 942. The Committee includes a provision amending
    P.L. 105-270.
        Section 943. The Committee includes a provision concerning
    the use of funds for the ``e-gov'' initiative that were not
    appropriated specifically for that purpose.
        Section 944. The Committee continues a provision, with
    modification, providing that the adjustment in rates of basic
    pay for employees under statutory pay systems taking effect in
    fiscal year 2006 shall be an increase of 3.1 percent.
        Section 945. The Committee includes a new provision
    prohibiting a credit card issuer from adjusting a card holder's
    annual percentage rate based on information unrelated to the
    account.
        Section 946. The Committee includes a provision that
    prohibits executive branch agencies from creating prepackaged
    news stories that are broadcast or distributed in the United
    States unless the story includes a clear notification within
    the text or audio of that news story that the prepackaged news
    story was prepared or funded by the executive branch agency.
        Section 947. The Committee includes a new provision
    prohibiting funds from implementing a final rule published
    February 25, 2005 regarding Cuba exports.

                     Comparison With the Budget Resolution

        Clause 3(c)(2) of rule XIII of the Rules of the House of
    Representatives requires an explanation of compliance with
    section 308(a)(1)(A) of the Congressional Budget and
    Impoundment Control Act of 1974 (Public Law 93-344), as
    amended, which requires that the report accompanying a bill
    providing new budget authority contain a statement detailing
    how that authority compares with the reports submitted under
    section 302 of the Act for the most recently agreed to
    concurrent resolution on the budget for the fiscal year from
    the Committee's section 302(a) allocation.

                          Five-Year Outlay Projections

        In compliance with section 308(a)(1)(B) of the
    Congressional Budget and Impoundment Control Act of 1974
    (Public Law 93-344), as amended, the following table contains
    five-year projections associated with the budget authority
    provided in the accompanying bill as provided to the Committee
    by the Congressional Budget Office.

              Financial Assistance to State and Local Governments

        In accordance with section 308(a)(1)(C) of the
    Congressional Budget and Impoundment Control Act of 1974
    (Public Law 93-344), as amended, the Congressional Budget
    Office has provided the following estimates of new budget
    authority and outlays provided by the accompanying bill for
    financial assistance to state and local governments.

         ADDITIONAL VIEWS OF HON. DAVID R. OBEY AND HON. JOHN W. OLVER

        Several factors contributed to a number of serious problems
    in the fiscal year 2006 Transportation, Treasury, HUD,
    Judiciary, District of Columbia, and Independent Agencies
    Committee reported bill.

                       President's Budget Was Inadequate

        The President's budget request inadequately funded numerous
    agencies. The Community Development Block Grant (CDBG) program,
    the Community Development Financial Institutions (CDFI) fund,
    and the High Intensity Drug Trafficking Agencies (HIDTA)
    program were all significantly under funded and proposed for
    transfer to other Departments. Amtrak was zeroed out creating a
    nearly $900 million reduction from the FY05 enacted level. His
    budget also featured hundreds of millions of dollars of fee
    increases and rescissions for which the Subcommittee also had
    to find funding.

                  Subcommittee Allocation Was Also Inadequate

        Although the Subcommittee's 302(b) allocation addressed
    some of the shortfalls and gimmicks, overall budget constraints
    kept the Appropriations Committee from fully making the
    Subcommittee whole. The overall lack of funds to address
    national needs such as Amtrak and community development is the
    direct result of the Majority's 2006 Budget Resolution. As the
    Majority Leader pointed out:
        ``This is the budget that the American people voted for
    when they returned a Republican House, a Republican Senate and
    a Republican White House last November.''
        Based on the Majority Leader's logic, the American people
    voted to kill Amtrak, to cut CDBG and to terminate the HOPE VI,
    Youthbuild and Brownfields initiatives at the Department of
    Housing and Urban Development.

              Committee Reorganization Led to Difficult Tradeoffs

        Under the reorganization proposal mandated by the
    Republican Leadership, a number of unrelated priorities are now
    grouped together in this bill. Instead of simplifying the
    process, as the Republican Leadership claimed it would, this
    reorganization created a bill that is made up of several
    disparate parts without any common theme among them.
    Departments and agencies that were key components of five
    separate Subcommittees as recently as three years ago have now
    been lumped together into a single bill. This structure
    inevitably leads to trade-offs among programs that will harm
    some agencies at the benefit of others. The Transportation,
    Treasury, HUD, the Judiciary, District of Columbia and
    Independent Agencies reported bill has essentially become an
    Omnibus bill.
        The Committee's reorganization placed this Subcommittee in
    the unenviable position of having to decide between funding
    transportation or housing programs, between funding for the
    judicial branch or funding for the White House, between funding
    for tax law compliance or election assistance. All are serious
    national responsibilities that we are obligated to meet. They
    will not all be met by this bill.
        Unfortunately, in their vote on the budget resolution
    earlier this year, the Majority decided that super-sized tax
    cuts for millionaires are more important than properly funding
    these priorities. As a result, Amtrak as well as several HUD
    programs are zeroed out or significantly under funded.

                    The Committee Bill Will Shut Down Amtrak

        National passenger rail as we know it will cease to exist
    if this bill becomes law.
        Taken at face value, the Majority's proposal will shut down
    nearly half of the routes that Amtrak operates and deny more
    than 20 states of Amtrak service. We believe, however, that it
    will be impossible for Amtrak to continue to operate even a
    limited number of routes under the funding levels and terms of
    this bill.
        If one were to play out what will happen if this Amtrak
    proposal is enacted, Amtrak will be placed in such a financial
    bind that it will terminate all intercity passenger rail
    service, including the Northeast Corridor. It will even have a
    ripple effect of disrupting commuter and freight rail services
    throughout the country.
        The Majority's calculations with respect to the eighteen
    routes that would remain are overly optimistic. The $550
    million provided is insufficient to maintain even a limited
    level of service. Of this amount, the bill sets forth $500
    million for operating costs and $50 million for capital.
        Fiscal year 2006 operating expenses cannot be covered for
    $500 million--even if Amtrak only operates a reduced number of
    routes. The closure of some routes would result in the layoff
    of thousands of Amtrak workers. First year severance
    obligations to these employees would total as much as $300
    million or more and severance costs would continue for several
    years. After mandatory debt service payments of $275 million to
    $287 million and mandatory labor payments of $300 million or
    more are made, no funds would be available to operate even a
    few routes and no funds would be available to invest in sorely
    needed capital upgrades.
        The $50 million set aside for Northeast Corridor capital
    projects is also wholly inadequate. The amount provided in the
    bill is less than ten percent of Amtrak's fiscal year 2006
    capital grant request of $787 million. It is also insufficient
    for covering mandatory life safety expenditures including work
    on the Penn Station tunnels and repairs on high-speed tracks
    required by Federal Railroad Administration track safety
    regulations. Under this bill, the Northeast Corridor would
    remain in a state of disrepair and Amtrak would continue to be
    vulnerable to a bridge or tunnel failure that could have
    catastrophic effects for Amtrak, commuter rail and freight rail
    operations throughout the Northeast.
        The Committee reported bill also fails to provide any
    funding for other capital needs outside the Northeast Corridor,
    including legally required inspections and maintenance on
    equipment and tracks, infrastructure outside the Northeast and
    necessary Americans with Disabilities Act accessibility
    projects.
        If national passenger rail ceases to operate, it will be a
    tragedy caused by this Administration. The Amtrak board
    consists solely of Bush appointees. The so-called reform
    proposals that would obliterate the current system are all
    being pushed by President Bush's Department of Transportation.
    The inadequate funding provided by this bill will be the final
    nail in Amtrak's coffin.

                   Housing Programs Will Be Severely Impacted

        The Committee bill shortchanges many important housing and
    community development activities. To say that the Committee has
    placed a high priority on funding for our communities and for
    housing low-and moderate-income persons would be highly
    misleading.
        In what amounts to house cleaning, the Chairman chose to
    ``clear out the underbrush'' at HUD by eliminating or
    transferring several smaller programs. The Section 107 programs
    were transferred and merged with the activities under Policy
    Development and Research. Many other programs are zeroed out by
    the subcommittee including: Brownfields, Empowerment Zones,
    section 108 loan guarantees, and La Raza activities. All of
    these programs have contributed to the improvement of our
    communities.
        Another program zeroed out in the Chairman's mark deserves
    special mention: Youthbuild. Youthbuild provides a valuable
    service by building or rehabilitating housing for homeless or
    low-income people in their own communities while helping young
    people complete their education.
        The President proposed that Youthbuild be transferred to
    the Department of Labor, but he has not presented to Congress
    legislation to carry this out. In the meantime, neither this
    Subcommittee, nor the Labor-HHS Subcommittee chose to fund the
    program. This very effective and worthwhile program was not
    funded simply because two subcommittee chairmen could not agree
    on jurisdiction and refused to take responsibility and pay for
    it.
        While the Committee provided an increase above the
    President's request for public housing capital and operating
    funds, the amount for the public housing capital fund has
    decreased by more than 20 percent since fiscal year 2000 and
    the public housing operating fund has increased a mere four
    percent in that same time period. The demand remains high and
    the need is great. Currently there is a backlog of around $20
    billion in public housing capital funding needs and the
    operating fund needs continue to grow because of factors like
    the high costs of energy.
        Additionally, funding for the Revitalization of Severely
    Distressed Public Housing--HOPE VI--has been eliminated by the
    Committee. HOPE VI transforms the nation's worst public housing
    into mixed-income urban communities. These grants serve as the
    critical seed capital to leverage additional public and private
    sector investment in distressed neighborhoods.
        Finally, the two fair housing programs at the Department
    were cut in the President's request and agreed to by the
    subcommittee--Despite the fact that more than 3.7 million fair
    housing violations still occur annually. Incredibly, despite
    HUD's advocacy and the fact that homeownership rates are at
    all-time high, the homeownership gap between white and blacks
    is worse now than in 1940.

                           Other Aspects of the Bill

        Despite the Amtrak and housing problems identified above,
    the bill contains a number of items with which we strongly
    agree. The Subcommittee provided significant increases for
    surface transportation funding (excluding Amtrak) and aviation
    programs. Further investment in the transportation
    infrastructure is vital for the safety and well-being of all of
    our constituents.
        The Federal Courts received a significant increase over the
    FY05 enacted levels. It is our hope that these funding levels
    can be sustained so that court personnel can remain at the
    current levels during fiscal year 2006.
        The Chairman included language precluding the IRS from
    closing Taxpayer Assistance Centers until all the Committee's
    serious concerns about the proposal's impact on customer
    service are addressed. The Administration's plan to close 68
    Taxpayer Assistance Centers seems to be an ill-conceived
    initiative driven by budget decisions rather than an exercise
    in good management and sound customer service.
        The provisions that allow the District of Columbia to
    administer locally generated funds are an important step and we
    applaud the Chairman for this effort.
        Within housing, the Chairman wisely rejected the
    President's proposal to transfer the Community Development
    Block Grant program to the Department of Commerce and instead
    kept the program at the Department of Housing and Urban
    Development. Unfortunately, the funding level for the CDBG
    formula grants is down by $250 million or six percent from last
    year's level.
        We are also pleased that the Subcommittee chose to include
    direction to the Department regarding the public housing
    negotiated rule on operating subsidies. HUD proceeded in
    publishing a rule that blatantly disregarded the negotiations
    that occurred between stakeholders and HUD. The subcommittee
    instructed the Department to use this original negotiated rule.
        The Subcommittee also recognized that the ``snapshot''
    funding formula used in fiscal year 2005 may have had an
    adverse impact on some agencies in the section 8 voucher
    program. The subcommittee is to be commended for their initial
    effort to correct some of those problems created in 2005 with a
    set-aside of $45 million. We look forward to working with the
    majority as guidelines for distributing fiscal year 2006
    section 8 funds are drafted during conference.
        Among independent agencies, the National Historic Records
    and Preservation Commission grants program that is administered
    by the National Archives and Records Administration is funded
    at $7.5 million. This program that is important to historians
    and researchers had been zeroed out in the Bush budget. The
    Chairman also recognized the importance of the Udall Foundation
    by properly funding the environmental mediation and trust fund
    accounts.

                                   Conclusion

        It is difficult to imagine this is the budget for which the
    American people voted. On the whole, the Chairman did the best
    he could given the circumstances. But the circumstances were
    wholly avoidable.
        The President could have presented to the Congress a budget
    that was not riddled with gimmicks and new fees designed to
    hide the fact that his own fiscal policies are failing the
    nation. The Congress could have passed a sensible budget
    resolution that asked people making more than $1 million this
    year to do with a slightly smaller tax cut so we could fund
    important national priorities. That did not happen. So we are
    left with a bill that will shut down Amtrak, cut Community
    Development Block Grants, and terminate several effective
    housing programs, including HOPE VI, Youthbuild and
    Brownfields.
        We do not believe this is the budget for which the American
    people voted. Under the current leadership in the White House
    and the Congress, however, this is the budget the American
    people are going to get.

                                       Dave Obey.
                                       John W. Olver.