House Report 111-89 - CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2010

[House Report 111-89]
[From the U.S. Government Publishing Office]

111th Congress
1st Session Report
HOUSE OF REPRESENTATIVES 111-89
_______________________________________________________________________

CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2010

__________

CONFERENCE REPORT

to accompany

S. CON. RES. 13

April 27, 2009.--Ordered to be printed
111th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 111-89

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

CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2010

_______

April 27, 2009.--Ordered to be printed

_______

Mr. Spratt, from the committee of conference, submitted the following

CONFERENCE REPORT

[To accompany S. Con. Res. 13]

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

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

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

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

TITLE I--RECOMMENDED LEVELS AND AMOUNTS

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

TITLE II--RECONCILIATION

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

TITLE III--RESERVE FUNDS

Subtitle A--Senate Reserve Funds

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

Subtitle B--House Reserve Funds

Sec. 321. Deficit-neutral reserve fund for health care reform.
Sec. 322. Deficit-neutral reserve fund for college access,
affordability, and completion.
Sec. 323. Deficit-neutral reserve fund for increasing energy
independence.
Sec. 324. Deficit-neutral reserve fund for America's veterans and
wounded servicemembers.
Sec. 325. Deficit-neutral reserve fund for certain tax relief.
Sec. 326. Deficit-neutral reserve fund for a 9/11 health program.
Sec. 327. Deficit-neutral reserve fund for child nutrition.
Sec. 328. Deficit-neutral reserve fund for structural unemployment
insurance reforms.
Sec. 329. Deficit-neutral reserve fund for child support.
Sec. 330. Deficit-neutral reserve fund for the Affordable Housing Trust
Fund.
Sec. 331. Deficit-neutral reserve fund for home visiting.
Sec. 332. Deficit-neutral reserve fund for low-income home energy
assistance program trigger.
Sec. 333. Deficit-neutral reserve fund for county payments legislation.
Sec. 334. Reserve fund for the surface transportation reauthorization.

TITLE IV--BUDGET PROCESS

Subtitle A--Senate Provisions

PART I--Budget Enforcement

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

PART II--Other Provisions

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

Subtitle B--House Enforcement Provisions

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

TITLE V--POLICY

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

TITLE VI--SENSE OF THE CONGRESS

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

TITLE I--RECOMMENDED LEVELS AND AMOUNTS

SEC. 101. RECOMMENDED LEVELS AND AMOUNTS.

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

SEC. 102. SOCIAL SECURITY.

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

SEC. 103. POSTAL SERVICE DISCRETIONARY ADMINISTRATIVE EXPENSES.

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

SEC. 104. MAJOR FUNCTIONAL CATEGORIES.

Congress determines and declares that the appropriate
levels of new budget authority and outlays for fiscal years
2009 through 2014 for each major functional category are:
(1) National Defense (050):
Fiscal year 2009:
(A) New budget authority,
$618,057,000,000.
(B) Outlays, $646,810,000,000.
Fiscal year 2010:
(A) New budget authority,
$562,033,000,000.
(B) Outlays, $606,043,000,000.
Fiscal year 2011:
(A) New budget authority,
$570,107,000,000.
(B) Outlays, $587,945,000,000.
Fiscal year 2012:
(A) New budget authority,
$579,135,000,000.
(B) Outlays, $576,023,000,000.
Fiscal year 2013:
(A) New budget authority,
$589,895,000,000.
(B) Outlays, $584,670,000,000.
Fiscal year 2014:
(A) New budget authority,
$603,828,000,000.
(B) Outlays, $595,476,000,000.
(2) International Affairs (150):
Fiscal year 2009:
(A) New budget authority,
$40,885,000,000.
(B) Outlays, $37,797,000,000.
Fiscal year 2010:
(A) New budget authority,
$47,866,000,000.
(B) Outlays, $44,668,000,000.
Fiscal year 2011:
(A) New budget authority,
$51,505,000,000.
(B) Outlays, $50,423,000,000.
Fiscal year 2012:
(A) New budget authority,
$52,205,000,000.
(B) Outlays, $52,078,000,000.
Fiscal year 2013:
(A) New budget authority,
$53,553,000,000.
(B) Outlays, $52,899,000,000.
Fiscal year 2014:
(A) New budget authority,
$54,928,000,000.
(B) Outlays, $52,777,000,000.
(3) General Science, Space, and Technology (250):
Fiscal year 2009:
(A) New budget authority,
$35,389,000,000.
(B) Outlays, $30,973,000,000.
Fiscal year 2010:
(A) New budget authority,
$31,139,000,000.
(B) Outlays, $32,467,000,000.
Fiscal year 2011:
(A) New budget authority,
$33,993,000,000.
(B) Outlays, $34,532,000,000.
Fiscal year 2012:
(A) New budget authority,
$34,246,000,000.
(B) Outlays, $33,532,000,000.
Fiscal year 2013:
(A) New budget authority,
$34,473,000,000.
(B) Outlays, $33,823,000,000.
Fiscal year 2014:
(A) New budget authority,
$34,841,000,000.
(B) Outlays, $34,141,000,000.
(4) Energy (270):
Fiscal year 2009:
(A) New budget authority,
$43,919,000,000.
(B) Outlays, $2,952,000,000.
Fiscal year 2010:
(A) New budget authority,
$4,989,000,000.
(B) Outlays, $6,275,000,000.
Fiscal year 2011:
(A) New budget authority,
$5,037,000,000.
(B) Outlays, $9,089,000,000.
Fiscal year 2012:
(A) New budget authority,
$4,995,000,000.
(B) Outlays, $11,760,000,000.
Fiscal year 2013:
(A) New budget authority,
$5,272,000,000.
(B) Outlays, $11,758,000,000.
Fiscal year 2014:
(A) New budget authority,
$5,280,000,000.
(B) Outlays, $11,121,000,000.
(5) Natural Resources and Environment (300):
Fiscal year 2009:
(A) New budget authority,
$56,009,000,000.
(B) Outlays, $36,834,000,000.
Fiscal year 2010:
(A) New budget authority,
$37,587,000,000.
(B) Outlays, $40,557,000,000.
Fiscal year 2011:
(A) New budget authority,
$37,859,000,000.
(B) Outlays, $39,889,000,000.
Fiscal year 2012:
(A) New budget authority,
$38,579,000,000.
(B) Outlays, $39,535,000,000.
Fiscal year 2013:
(A) New budget authority,
$38,718,000,000.
(B) Outlays, $39,191,000,000.
Fiscal year 2014:
(A) New budget authority,
$39,338,000,000.
(B) Outlays, $39,322,000,000.
(6) Agriculture (350):
Fiscal year 2009:
(A) New budget authority,
$24,974,000,000.
(B) Outlays, $23,070,000,000.
Fiscal year 2010:
(A) New budget authority,
$23,690,000,000.
(B) Outlays, $23,951,000,000.
Fiscal year 2011:
(A) New budget authority,
$24,726,000,000.
(B) Outlays, $24,025,000,000.
Fiscal year 2012:
(A) New budget authority,
$21,640,000,000.
(B) Outlays, $17,545,000,000.
Fiscal year 2013:
(A) New budget authority,
$22,449,000,000.
(B) Outlays, $22,026,000,000.
Fiscal year 2014:
(A) New budget authority,
$23,116,000,000.
(B) Outlays, $22,090,000,000.
(7) Commerce and Housing Credit (370):
Fiscal year 2009:
(A) New budget authority,
$694,439,000,000.
(B) Outlays, $665,437,000,000.
Fiscal year 2010:
(A) New budget authority,
$61,113,000,000.
(B) Outlays, $85,750,000,000.
Fiscal year 2011:
(A) New budget authority,
$26,181,000,000.
(B) Outlays, $38,016,000,000.
Fiscal year 2012:
(A) New budget authority,
$9,561,000,000.
(B) Outlays, $8,649,000,000.
Fiscal year 2013:
(A) New budget authority,
$17,247,000,000.
(B) Outlays, $5,585,000,000.
Fiscal year 2014:
(A) New budget authority,
$11,226,000,000.
(B) Outlays, -$2,500,000,000.
(8) Transportation (400):
Fiscal year 2009:
(A) New budget authority,
$122,457,000,000.
(B) Outlays, $87,784,000,000.
Fiscal year 2010:
(A) New budget authority,
$88,151,000,000.
(B) Outlays, $95,695,000,000.
Fiscal year 2011:
(A) New budget authority,
$89,071,000,000.
(B) Outlays, $96,474,000,000.
Fiscal year 2012:
(A) New budget authority,
$90,047,000,000.
(B) Outlays, $95,851,000,000.
Fiscal year 2013:
(A) New budget authority,
$90,866,000,000.
(B) Outlays, $96,150,000,000.
Fiscal year 2014:
(A) New budget authority,
$91,809,000,000.
(B) Outlays, $96,793,000,000.
(9) Community and Regional Development (450):
Fiscal year 2009:
(A) New budget authority,
$23,811,000,000.
(B) Outlays, $29,983,000,000.
Fiscal year 2010:
(A) New budget authority,
$18,308,000,000.
(B) Outlays, $29,303,000,000.
Fiscal year 2011:
(A) New budget authority,
$21,232,000,000.
(B) Outlays, $27,530,000,000.
Fiscal year 2012:
(A) New budget authority,
$16,311,000,000.
(B) Outlays, $24,767,000,000.
Fiscal year 2013:
(A) New budget authority,
$16,202,000,000.
(B) Outlays, $21,945,000,000.
Fiscal year 2014:
(A) New budget authority,
$16,270,000,000.
(B) Outlays, $19,147,000,000.
(10) Education, Training, Employment, and Social
Services (500):
Fiscal year 2009:
(A) New budget authority,
$164,276,000,000.
(B) Outlays, $73,219,000,000.
Fiscal year 2010:
(A) New budget authority,
$94,430,000,000.
(B) Outlays, $140,624,000,000.
Fiscal year 2011:
(A) New budget authority,
$107,858,000,000.
(B) Outlays, $141,412,000,000.
Fiscal year 2012:
(A) New budget authority,
$117,121,000,000.
(B) Outlays, $118,480,000,000.
Fiscal year 2013:
(A) New budget authority,
$115,931,000,000.
(B) Outlays, $118,911,000,000.
Fiscal year 2014:
(A) New budget authority,
$125,788,000,000.
(B) Outlays, $120,959,000,000.
(11) Health (550):
Fiscal year 2009:
(A) New budget authority,
$380,158,000,000.
(B) Outlays, $354,397,000,000.
Fiscal year 2010:
(A) New budget authority,
$384,309,000,000.
(B) Outlays, $388,885,000,000.
Fiscal year 2011:
(A) New budget authority,
$363,778,000,000.
(B) Outlays, $367,412,000,000.
Fiscal year 2012:
(A) New budget authority,
$367,840,000,000.
(B) Outlays, $367,391,000,000.
Fiscal year 2013:
(A) New budget authority,
$386,483,000,000.
(B) Outlays, $382,172,000,000.
Fiscal year 2014:
(A) New budget authority,
$395,248,000,000.
(B) Outlays, $396,541,000,000.
(12) Medicare (570):
Fiscal year 2009:
(A) New budget authority,
$427,076,000,000.
(B) Outlays, $426,736,000,000.
Fiscal year 2010:
(A) New budget authority,
$449,668,000,000.
(B) Outlays, $449,798,000,000.
Fiscal year 2011:
(A) New budget authority,
$504,895,000,000.
(B) Outlays, $504,721,000,000.
Fiscal year 2012:
(A) New budget authority,
$505,686,000,000.
(B) Outlays, $505,436,000,000.
Fiscal year 2013:
(A) New budget authority,
$540,017,000,000.
(B) Outlays, $540,146,000,000.
Fiscal year 2014:
(A) New budget authority,
$593,421,000,000.
(B) Outlays, $593,233,000,000.
(13) Income Security (600):
Fiscal year 2009:
(A) New budget authority,
$520,123,000,000.
(B) Outlays, $503,020,000,000.
Fiscal year 2010:
(A) New budget authority,
$536,740,000,000.
(B) Outlays, $540,202,000,000.
Fiscal year 2011:
(A) New budget authority,
$509,101,000,000.
(B) Outlays, $512,335,000,000.
Fiscal year 2012:
(A) New budget authority,
$451,472,000,000.
(B) Outlays, $452,176,000,000.
Fiscal year 2013:
(A) New budget authority,
$455,310,000,000.
(B) Outlays, $455,184,000,000.
Fiscal year 2014:
(A) New budget authority,
$455,984,000,000.
(B) Outlays, $454,858,000,000.
(14) Social Security (650):
Fiscal year 2009:
(A) New budget authority,
$31,820,000,000.
(B) Outlays, $31,264,000,000.
Fiscal year 2010:
(A) New budget authority,
$20,255,000,000.
(B) Outlays, $20,378,000,000.
Fiscal year 2011:
(A) New budget authority,
$23,380,000,000.
(B) Outlays, $23,513,000,000.
Fiscal year 2012:
(A) New budget authority,
$26,478,000,000.
(B) Outlays, $26,628,000,000.
Fiscal year 2013:
(A) New budget authority,
$29,529,000,000.
(B) Outlays, $29,679,000,000.
Fiscal year 2014:
(A) New budget authority,
$32,728,000,000.
(B) Outlays, $32,728,000,000.
(15) Veterans Benefits and Services (700):
Fiscal year 2009:
(A) New budget authority,
$97,705,000,000.
(B) Outlays, $94,831,000,000.
Fiscal year 2010:
(A) New budget authority,
$106,498,000,000.
(B) Outlays, $105,578,000,000.
Fiscal year 2011:
(A) New budget authority,
$112,977,000,000.
(B) Outlays, $112,520,000,000.
Fiscal year 2012:
(A) New budget authority,
$108,839,000,000.
(B) Outlays, $108,242,000,000.
Fiscal year 2013:
(A) New budget authority,
$113,942,000,000.
(B) Outlays, $113,293,000,000.
Fiscal year 2014:
(A) New budget authority,
$116,163,000,000.
(B) Outlays, $115,624,000,000.
(16) Administration of Justice (750):
Fiscal year 2009:
(A) New budget authority,
$55,783,000,000.
(B) Outlays, $49,853,000,000.
Fiscal year 2010:
(A) New budget authority,
$53,400,000,000.
(B) Outlays, $52,043,000,000.
Fiscal year 2011:
(A) New budget authority,
$53,892,000,000.
(B) Outlays, $55,589,000,000.
Fiscal year 2012:
(A) New budget authority,
$53,738,000,000.
(B) Outlays, $55,468,000,000.
Fiscal year 2013:
(A) New budget authority,
$53,569,000,000.
(B) Outlays, $54,537,000,000.
Fiscal year 2014:
(A) New budget authority,
$54,247,000,000.
(B) Outlays, $54,058,000,000.
(17) General Government (800):
Fiscal year 2009:
(A) New budget authority,
$30,405,000,000.
(B) Outlays, $24,629,000,000.
Fiscal year 2010:
(A) New budget authority,
$21,979,000,000.
(B) Outlays, $22,757,000,000.
Fiscal year 2011:
(A) New budget authority,
$22,264,000,000.
(B) Outlays, $23,099,000,000.
Fiscal year 2012:
(A) New budget authority,
$22,620,000,000.
(B) Outlays, $23,689,000,000.
Fiscal year 2013:
(A) New budget authority,
$22,396,000,000.
(B) Outlays, $23,196,000,000.
Fiscal year 2014:
(A) New budget authority,
$22,898,000,000.
(B) Outlays, $23,167,000,000.
(18) Net Interest (900):
Fiscal year 2009:
(A) New budget authority,
$288,952,000,000.
(B) Outlays, $288,952,000,000.
Fiscal year 2010:
(A) New budget authority,
$284,153,000,000.
(B) Outlays, $284,153,000,000.
Fiscal year 2011:
(A) New budget authority,
$323,325,000,000.
(B) Outlays, $323,325,000,000.
Fiscal year 2012:
(A) New budget authority,
$387,488,000,000.
(B) Outlays, $387,488,000,000.
Fiscal year 2013:
(A) New budget authority,
$470,412,000,000.
(B) Outlays, $470,412,000,000.
Fiscal year 2014:
(A) New budget authority,
$558,265,000,000.
(B) Outlays, $558,265,000,000.
(19) Allowances (920):
Fiscal year 2009:
(A) New budget authority,
$7,150,000,000.
(B) Outlays, $1,788,000,000.
Fiscal year 2010:
(A) New budget authority,
$1,157,000,000.
(B) Outlays, $2,548,000,000.
Fiscal year 2011:
(A) New budget authority,
-$14,278,000,000.
(B) Outlays, -$8,066,000,000.
Fiscal year 2012:
(A) New budget authority,
-$14,914,000,000.
(B) Outlays, -$13,147,000,000.
Fiscal year 2013:
(A) New budget authority,
-$16,126,000,000.
(B) Outlays, -$14,979,000,000.
Fiscal year 2014:
(A) New budget authority,
-$16,670,000,000.
(B) Outlays, -$15,235,000,000.
(20) Undistributed Offsetting Receipts (950):
Fiscal year 2009:
(A) New budget authority,
-$78,206,000,000.
(B) Outlays, -$78,206,000,000.
Fiscal year 2010:
(A) New budget authority,
-$68,774,000,000.
(B) Outlays, -$68,774,000,000.
Fiscal year 2011:
(A) New budget authority,
-$71,993,000,000.
(B) Outlays, -$71,993,000,000.
Fiscal year 2012:
(A) New budget authority,
-$74,970,000,000.
(B) Outlays, -$74,970,000,000.
Fiscal year 2013:
(A) New budget authority,
-$77,945,000,000.
(B) Outlays, -$77,945,000,000.
Fiscal year 2014:
(A) New budget authority,
-$79,861,000,000.
(B) Outlays, -$79,861,000,000.
(21) Overseas Deployments and Other Activities
(970):
Fiscal year 2009:
(A) New budget authority,
$90,745,000,000.
(B) Outlays, $24,147,000,000.
Fiscal year 2010:
(A) New budget authority,
$130,000,000,000.
(B) Outlays, $98,410,000,000.
Fiscal year 2011:
(A) New budget authority,
$50,000,000,000.
(B) Outlays, $76,118,000,000.
Fiscal year 2012:
(A) New budget authority,
$50,000,000,000.
(B) Outlays, $65,221,000,000.
Fiscal year 2013:
(A) New budget authority,
$50,000,000,000.
(B) Outlays, $56,722,000,000.
Fiscal year 2014:
(A) New budget authority,
$50,000,000,000.
(B) Outlays, $52,110,000,000.

TITLE II--RECONCILIATION

SEC. 201. RECONCILIATION IN THE SENATE.

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

SEC. 202. RECONCILIATION IN THE HOUSE.

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

TITLE III--RESERVE FUNDS

Subtitle A--Senate Reserve Funds

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

(a) Transform and Modernize America's Health Care System.--
The chairman of the Senate Committee on the Budget may revise
the allocations of a committee or committees, aggregates, and
other appropriate levels and limits in this resolution, and
make adjustments to the pay-as-you-go ledger that are deficit-
neutral over 11 years, for one or more bills, joint
resolutions, amendments, motions, or conference reports that
are deficit-neutral, reduce excess cost growth in health care
spending and are fiscally sustainable over the long term, and--
(1) protect families' financial health including
restraining the growth of health premiums and other
health-related costs;
(2) make health coverage affordable to businesses
(in particular to small business and individuals who
are self-employed), households, and governments,
including by reducing wasteful and inefficient spending
in the health care system with periodic reports on
savings achieved through these efforts, and by moving
forward with improvements to the health care delivery
system, including Medicare;
(3) aim for quality, affordable health care for all
Americans;
(4) provide portability of coverage and assurance
of coverage with appropriate consumer protections;
(5) guarantee choice of health plans and health
care providers to Americans;
(6) invest in prevention and wellness and address
issues of health disparities;
(7) improve patient safety and quality care,
including the appropriate use of health information
technology and health data, and promote transparency in
cost and quality information to Americans; or
(8) maintain long-term fiscal sustainability and
pays for itself by reducing health care cost growth,
improving productivity, or dedicating additional
sources of revenue;
by the amounts provided in such legislation for those purposes,
provided that such legislation would not increase the deficit
over the period of the total of fiscal years 2009 through 2019.
(b) Other Revisions.--The chairman of the Senate Committee
on the Budget may revise the allocations of a committee or
committees, aggregates, and other appropriate levels and limits
in this resolution for one or more bills, joint resolutions,
amendments, motions, or conference reports that--
(1) increase the reimbursement rate for physician
services under section 1848(d) of the Social Security
Act and that include financial incentives for
physicians to improve the quality and efficiency of
items and services furnished to Medicare beneficiaries
through the use of consensus-based quality measures;
(2) include measures to encourage physicians to
train in primary care residencies and ensure an
adequate supply of residents and physicians;
(3) improve the Medicare program for beneficiaries
and protect access to outpatient therapy services
(including physical therapy, occupational therapy, and
speech-language pathology services) through measures
such as repealing the current outpatient therapy caps
while protecting beneficiaries from associated premium
increases; or
(4) promote payment policies that address the
systemic inequities of Medicare and Medicaid
reimbursement that lead to access problems in rural
areas, including access to primary care and outpatient
services, hospitals, and an adequate supply of
providers in the workforce or that reward quality and
efficient care and address geographic variations in
spending in the Medicare program;
by the amounts provided in such legislation for those purposes,
provided that such legislation would not increase the deficit
over either the period of the total of fiscal years 2009
through 2014 or the period of the total of fiscal years 2009
through 2019.

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

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

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

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

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

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

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

(a) Manufacturing.--The chairman of the Senate Committee on
the Budget may revise the allocations of a committee or
committees, aggregates, and other appropriate levels and limits
in this resolution for one or more bills, joint resolutions,
amendments, motions, or conference reports, including tax
legislation, that would revitalize and strengthen the United
States domestic manufacturing sector by increasing Federal
research and development, by expanding the scope and
effectiveness of manufacturing programs across the Federal
Government, by increasing efforts to train and retrain
manufacturing workers, by enhancing workers' technical skills
in the use of the new advanced manufacturing technologies to
produce competitive energy efficient products, by increasing
support for sector workforce training, by increasing support
for the redevelopment of closed manufacturing plants, by
increasing support for development of alternative fuels and
leap-ahead automotive and energy technologies such as advanced
batteries, or by establishing tax incentives to encourage the
continued production in the United States of advanced
technologies and the infrastructure to support such
technologies, by the amounts provided in that legislation for
those purposes, provided that such legislation would not
increase the deficit over either the period of the total of
fiscal years 2009 through 2014 or the period of the total of
fiscal years 2009 through 2019.
(b) Tax Relief.--The chairman of the Senate Committee on
the Budget may revise the allocations of a committee or
committees, aggregates, and other appropriate levels in this
resolution by the amounts provided by one or more bills, joint
resolutions, amendments, motions, or conference reports that
would provide tax relief, including but not limited to
extensions of expiring and expired tax relief, or refundable
tax relief, by the amounts provided in such legislation for
those purposes, provided that such legislation would not
increase the deficit over either the period of the total of
fiscal years 2009 through 2014 or the period of the total of
fiscal years 2009 through 2019.
(c) Tax Reform.--The chairman of the Senate Committee on
the Budget may revise the allocations of a committee or
committees, aggregates, and other appropriate levels in this
resolution for one or more bills, joint resolutions,
amendments, motions, or conference reports that would reform
the Internal Revenue Code to ensure a sustainable revenue base
that would lead to a fairer and more efficient tax system and
to a more competitive business environment for United States
enterprises, by the amounts provided in such legislation for
those purposes, provided that such legislation would not
increase the deficit over either the period of the total of
fiscal years 2009 through 2014 or the period of the total of
fiscal years 2009 through 2019.
(d) Trade.--The chairman of the Senate Committee on the
Budget may revise the allocations of a committee or committees,
aggregates, and other appropriate levels in this resolution for
one or more bills, joint resolutions, amendments, motions, or
conference reports related to trade by the amounts provided in
such legislation for those purposes, provided that such
legislation would not increase the deficit over either the
period of the total of fiscal years 2009 through 2014 or the
period of the total of fiscal years 2009 through 2019.
(e) Housing Assistance.--The chairman of the Senate
Committee on the Budget may revise the allocations of a
committee or committees, aggregates, and other appropriate
levels and limits in this resolution for one or more bills,
joint resolutions, amendments, motions, or conference reports
related to housing assistance, which may include low income
rental assistance, or assistance provided through the Housing
Trust Fund created under section 1131 of the Housing and
Economic Recovery Act of 2008, by the amounts provided in such
legislation for those purposes, provided that such legislation
would not increase the deficit over either the period of the
total of fiscal years 2009 through 2014 or the period of the
total of fiscal years 2009 through 2019.
(f) Unemployment Mitigation.--The chairman of the Senate
Committee on the Budget may revise the allocations of a
committee or committees, aggregates, and other appropriate
levels in this resolution for one or more bills, joint
resolutions, amendments, motions, or conference reports that
reduce the unemployment rate or provide assistance to the
unemployed, particularly in the states and localities with the
highest rates of unemployment, or improve the implementation of
the unemployment compensation program, by the amounts provided
in such legislation for those purposes, provided that such
legislation would not increase the deficit over either the
period of the total of fiscal years 2009 through 2014 or the
period of the total of fiscal years 2009 through 2019.

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

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

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

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

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

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

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

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

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

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

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

The chairman of the Senate Committee on the Budget may
revise the allocations of a committee or committees,
aggregates, and other appropriate levels and limits in this
resolution for one or more bills, joint resolutions,
amendments, motions, or conference reports that increase
transparency at the Federal Reserve System, including audits of
the Board of Governors of the Federal Reserve System and the
Federal reserve banks, to include--
(1) an evaluation of the appropriate number and the
associated costs of Federal reserve banks;
(2) publication on its website, with respect to all
lending and financial assistance facilities created by
the Board to address the financial crisis, of--
(A) the nature and amounts of the
collateral that the central bank is accepting
on behalf of American taxpayers in the various
lending programs, on no less than a monthly
basis;
(B) the extent to which changes in
valuation of credit extensions to various
special purpose vehicles, such as Maiden Lane
I, Maiden Lane II, and Maiden Lane III, are a
result of losses on collateral which will not
be recovered;
(C) the number of borrowers that
participate in each of the lending programs and
details of the credit extended, including the
extent to which the credit is concentrated in
one or more institutions; and
(D) information on the extent to which the
central bank is contracting for services of
private sector firms for the design, pricing,
management, and accounting for the various
lending programs and the terms and nature of
such contracts and bidding processes; and
(3) including the identity of each entity to which
the Board has provided all loans and other financial
assistance since March 24, 2008, the value or amount of
that financial assistance, and what that entity is
doing with such financial assistance;
by the amounts provided in such legislation for those purposes,
provided that such legislation would not increase the deficit
over either the period of the total of fiscal years 2009
through 2014 or the period of the total of fiscal years 2009
through 2019.

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

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

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

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

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

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

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

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

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

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

The chairman of the Senate Committee on the Budget may
revise the allocations of a committee or committees,
aggregates, and other appropriate levels in this resolution for
one or more bills, joint resolutions, amendments, motions, or
conference reports that--
(1) make improvements to child welfare programs,
including strengthening the recruitment and retention
of foster families, or make improvements to the child
support enforcement program;
(2) improve the Federal foster care payment system
to better support children, improve family support,
family preservation, family reunification services,
address the needs of children prior to removal, during
removal, and post placement or address the needs of
children who have been abused or neglected; or
(3) provide funds to states for a program of home
visits to low-income mothers-to-be and low-income
families that will produce sizeable, sustained
improvements in the health, well-being, or school
readiness of children or their parents;
by the amounts provided in such legislation for those purposes,
provided that such legislation would not increase the deficit
over either the period of the total of fiscal years 2009
through 2014 or the period of the total of fiscal years 2009
through 2019.

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

Subtitle B--House Reserve Funds

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

The chairman of the House Committee on the Budget may
revise the allocations, aggregates, and other appropriate
levels in this resolution for any bill, joint resolution,
amendment, or conference report that makes improvements to
health care in America, which may include making affordable
health coverage available for all, improving the quality of
health care, reducing rising health care costs, building on and
strengthening existing public and private insurance coverage,
including employer-sponsored coverage, and preserving choice of
provider and plan by the amounts provided in such measure if
such measure would not increase the deficit or decrease the
surplus for either time period provided in clause 10 of rule
XXI of the Rules of the House of Representatives.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

TITLE IV--BUDGET PROCESS

Subtitle A--Senate Provisions

PART I--BUDGET ENFORCEMENT

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

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

SEC. 402. POINT OF ORDER AGAINST ADVANCE APPROPRIATIONS.

(a) In General.--
(1) Point of order.--Except as provided in
subsection (b), it shall not be in order in the Senate
to consider any bill, joint resolution, motion,
amendment, or conference report that would provide an
advance appropriation.
(2) Definition.--In this section, the term
``advance appropriation'' means any new budget
authority provided in a bill or joint resolution making
appropriations for fiscal year 2010 that first becomes
available for any fiscal year after 2010, or any new
budget authority provided in a bill or joint resolution
making general appropriations or continuing
appropriations for fiscal year 2011, that first becomes
available for any fiscal year after 2011.
(b) Exceptions.--Advance appropriations may be provided--
(1) for fiscal years 2011 and 2012 for programs,
projects, activities, or accounts identified in the
joint explanatory statement of managers accompanying
this resolution under the heading ``Accounts Identified
for Advance Appropriations'' in an aggregate amount not
to exceed $28,852,000,000 in new budget authority in
each year;
(2) for the Corporation for Public Broadcasting;
and
(3) for the Department of Veterans Affairs for the
Medical Services, Medical Support and Compliance, and
Medical Facilities accounts of the Veterans Health
Administration.
(c) Supermajority Waiver and Appeal.--
(1) Waiver.--In the Senate, subsection (a) may be
waived or suspended only by an affirmative vote of
three-fifths of the Members, duly chosen and sworn.
(2) Appeal.--An affirmative vote of three-fifths of
the Members of the Senate, duly chosen and sworn, shall
be required to sustain an appeal of the ruling of the
Chair on a point of order raised under subsection (a).
(d) Form of Point of Order.--A point of order under
subsection (a) may be raised by a Senator as provided in
section 313(e) of the Congressional Budget Act of 1974.
(e) Conference Reports.--When the Senate is considering a
conference report on, or an amendment between the Houses in
relation to, a bill, upon a point of order being made by any
Senator pursuant to this section, and such point of order being
sustained, such material contained in such conference report
shall be deemed stricken, and the Senate shall proceed to
consider the question of whether the Senate shall recede from
its amendment and concur with a further amendment, or concur in
the House amendment with a further amendment, as the case may
be, which further amendment shall consist of only that portion
of the conference report or House amendment, as the case may
be, not so stricken. Any such motion in the Senate shall be
debatable. In any case in which such point of order is
sustained against a conference report (or Senate amendment
derived from such conference report by operation of this
subsection), no further amendment shall be in order.
(f) Inapplicability.--In the Senate, section 313 of S. Con.
Res. 70 (110th Congress) shall no longer apply.

SEC. 403. EMERGENCY LEGISLATION.

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

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

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

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

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

PART II--OTHER PROVISIONS

SEC. 411. OVERSIGHT OF GOVERNMENT PERFORMANCE.

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

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

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

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

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

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

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

SEC. 415. EXERCISE OF RULEMAKING POWERS.

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

Subtitle B--House Enforcement Provisions

SEC. 421. ADJUSTMENTS FOR DIRECT SPENDING AND REVENUES.

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

SEC. 422. ADJUSTMENTS TO DISCRETIONARY SPENDING LIMITS.

(a) Program Integrity Initiatives.--
(1) Social security administration program
integrity initiatives.--
(A) In general.--In the House, prior to
consideration of any bill, joint resolution,
amendment, or conference report making
appropriations for fiscal year 2010 that
appropriates $273,000,000 for continuing
disability reviews and Supplemental Security
Income redeterminations for the Social Security
Administration and (except as provided in
subparagraph (B)) provides an additional
appropriation of up to $485,000,000, and that
amount is designated for continuing disability
reviews and Supplemental Security Income
redeterminations for the Social Security
Administration, the allocation to the House
Committee on Appropriations shall be increased
by the amount of the additional budget
authority and outlays resulting from that
budget authority for fiscal year 2010.
(B) Asset verification.--The additional
appropriation of $485,000,000 may also provide
that a portion of that amount, not to exceed
$34,000,000, instead may be used for asset
verification for Supplemental Security Income
recipients, but only if and to the extent that
the Office of the Chief Actuary estimates that
the initiative would be at least as cost
effective as the redeterminations of
eligibility described in subparagraph (A).
(2) Internal revenue service tax compliance.--In
the House, prior to consideration of any bill, joint
resolution, amendment, or conference report making
appropriations for fiscal year 2010 that appropriates
$4,904,000,000 to the Internal Revenue Service for
Enforcement and provides an additional appropriation of
up to $600,000,000 for Enforcement to address the
Federal tax gap, and provides that such sums as may be
necessary shall be available from the Operations
Support account in the Internal Revenue Service to
fully support these Enforcement activities, the
allocation to the House Committee on Appropriations
shall be increased by the amount of the additional
budget authority and outlays resulting from that budget
authority for fiscal year 2010.
(3) Health care fraud and abuse control program.--
In the House, prior to consideration of any bill, joint
resolution, amendment, or conference report making
appropriations for fiscal year 2010 that appropriates
up to $311,000,000, and the amount is designated to the
health care fraud and abuse control program at the
Department of Health and Human Services, the allocation
to the House Committee on Appropriations shall be
increased by the amount of additional budget authority
and outlays resulting from that budget authority for
fiscal year 2010.
(4) Unemployment insurance program integrity
activities.--In the House, prior to consideration of
any bill, joint resolution, amendment, or conference
report making appropriations for fiscal year 2010 that
appropriates $10,000,000 for in-person reemployment and
eligibility assessments and unemployment insurance
improper payment reviews for the Department of Labor
and provides an additional appropriation of up to
$50,000,000, and the amount is designated for in-person
reemployment and eligibility assessments and
unemployment insurance improper payment reviews for the
Department of Labor, the allocation to the House
Committee on Appropriations shall be increased by the
amount of additional budget authority and outlays
resulting from that budget authority for fiscal year
2010.
(5) Procedure for adjustments.--Prior to
consideration of any bill, joint resolution, amendment,
or conference report, the chairman of the House
Committee on the Budget shall make the adjustments set
forth in this subsection for the incremental new budget
authority in that measure and the outlays resulting
from that budget authority if that measure meets the
requirements set forth in this subsection.
(b) Low-Income Home Energy Assistance Program (LIHEAP).--In
the House, prior to consideration of any bill, joint
resolution, amendment, or conference report making
appropriations for fiscal year 2010 that appropriates
$3,200,000,000 in funding for the Low-Income Home Energy
Assistance Program and provides additional appropriations of up
to $1,900,000,000 for that program, if a mandatory trigger for
LIHEAP is not enacted, the chairman of the House Committee on
the Budget may allocate such additional budget authority and
outlays resulting from that budget authority to the House
Committee on Appropriations.
(c) Revised Appropriations for Fiscal Year 2010.--
(1) In general.--If after adoption of this
resolution by the Congress, the President submits his
budget pursuant to section 1105(a) of title 31, United
States Code, and the Congressional Budget Office (CBO)
re-estimates the budget, the chairman of the House
Committee on the Budget may adjust the discretionary
spending limits, budgetary aggregates, and the
allocation to the House Committee on Appropriations by
the aggregate difference for discretionary
appropriations and related outlays between the CBO re-
estimate and the President's Budget.
(2) Suballocations.--Following any adjustment under
subparagraph (A), the House Committee on Appropriations
may report appropriately revised suballocations
pursuant to section 302(b) of the Congressional Budget
Act of 1974 to carry out this paragraph.

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

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

SEC. 424. POINT OF ORDER AGAINST ADVANCE APPROPRIATIONS.

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

SEC. 425. OVERSIGHT OF GOVERNMENT PERFORMANCE.

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

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

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

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

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

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

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

SEC. 429. EXERCISE OF RULEMAKING POWERS.

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

TITLE V--POLICY

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

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

SEC. 502. POLICY ON DEFENSE PRIORITIES.

It is the policy of this resolution that--
(1) there is no higher priority than the defense of
our Nation, and therefore the Administration and
Congress will make the necessary investments and
reforms to strengthen our military so that it can
successfully meet the threats of the 21st century;
(2) acquisition reform is needed at the Department
of Defense to end excessive cost growth in the
development of new weapons systems and to ensure that
weapons systems are delivered on time and in adequate
quantities to equip our servicemen and servicewomen;
(3) the Department of Defense should review defense
plans to ensure that weapons developed to counter Cold
War-era threats are not redundant and are applicable to
21st century threats;
(4) sufficient resources should be provided for the
Department of Defense to aggressively address the 758
unimplemented recommendations made by the Government
Accountability Office (GAO) since 2001 to improve
practices at the Department of Defense, which could
save billions of dollars that could be applied to
priorities identified in this section;
(5) the Department of Defense should review the
role that contractors play in its operations, including
the degree to which contractors are performing
inherently governmental functions, to ensure it has the
most effective mix of government and contracted
personnel;
(6) the Department of Defense report to Congress on
its assessment of Cold War-era weaponry, its progress
on implementing GAO recommendations, and its review of
contractors at the Department as outlined in paragraphs
(3), (4), and (5) by a date to be determined by the
appropriate committees;
(7) the GAO provide a report to the appropriate
congressional committees by December 31, 2009, on the
Department of Defense's progress in implementing its
audit recommendations;
(8) ballistic missile defense technologies that are
not proven to work through adequate testing and that
are not operationally viable should not be deployed,
and that no funding should be provided for the research
or development of space-based interceptors;
(9) cooperative threat reduction and other
nonproliferation programs (securing ``loose nukes'' and
other materials used in weapons of mass destruction),
which were highlighted as high priorities by the 9/11
Commission, need to be funded at a level that is
commensurate with the evolving threat;
(10) readiness of our troops, particularly the
National Guard and Reserves, is a high priority, and
that continued emphasis is needed to ensure adequate
equipment and training;
(11) improving military health care services and
ensuring quality health care for returning combat
veterans is a high priority;
(12) military pay and benefits should be enhanced
to improve the quality of life for military personnel
and their families;
(13) the Department of Defense should make every
effort to investigate the national security benefits of
energy independence, including those that may be
associated with alternative energy sources and energy
efficiency conversions;
(14) the Administration's budget requests should
continue to comply with section 1008, Public Law 109-
364, the John Warner National Defense Authorization Act
for Fiscal Year 2007, and that to the extent
practicable overseas military operations should no
longer be funded through emergency supplemental
appropriations; and
(15) when assessing security threats and reviewing
the programs and funding needed to counter these
threats, the Administration should do so in a
comprehensive manner that includes all agencies
involved in our national security.

TITLE VI--SENSE OF THE CONGRESS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

John M. Spratt, Jr.,
Rosa L. DeLauro,
Allen Boyd,
Managers on the Part of the House.

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

JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

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

DISPLAYS AND AMOUNTS

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

AGGREGATE AND FUNCTION LEVELS

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

REVENUES

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

NATIONAL DEFENSE: FUNCTION 050

Function Summary
The National Defense function includes the military
activities of the Department of Defense (DoD), the nuclear
weapons-related activities of the Department of Energy (DOE)
and the National Nuclear Security Administration, and the
national security activities of several other agencies such as
the Selective Service, Coast Guard, and Federal Bureau of
Investigation. The programs in this function include: the pay
and benefits of active, Guard, and reserve military personnel;
DoD operations including training, maintenance of equipment,
and facilities; health care for military personnel and
dependents; procurement of weapons; research and development;
construction of military facilities, including housing;
research on nuclear weapons; and the cleanup of nuclear weapons
production facilities.
Senate-passed Resolution
The Senate resolution fully funds the President's core
defense budget request over the five-year budget window. Total
national defense discretionary funding in the Senate resolution
is $556.1 billion. This includes $533.7 billion in 2010 for the
Department of Defense, $20.3 billion more than the 2009 enacted
level exclusive of war funding and defense spending in the
economic recovery package.
The Senate resolution reflects the President's request
for additional 2009 overseas contingency operations funding of
$75.5 billion for the Defense Department. If enacted, this will
bring total war funding for 2009 to $152.6 billion. Under
President Bush, the total cost of the wars reached $864
billion. The Senate resolution also provides for the 2010 war
request of $130 billion. Including requested war funds and
mandatory spending, the Senate resolution provides $691.7
billion in BA for defense in 2010.
The Obama Administration has demonstrated its commitment
to budgetary transparency when it comes to funding for overseas
contingency operations. The Bush Administration failed to honor
its commitment to include war costs in its budget request and
obscured the fiscal situation by seeking war funding as an
emergency even after five years of war in Iraq. The Obama
Administration, on the other hand, has provided a good faith
estimate of war costs for 2010 and an annual allowance of $50
billion for potential future costs of overseas contingency
operations from 2011 onward. These amounts are reflected in the
Senate resolution.
In keeping with how the past two budget resolutions have
handled war costs, the Senate resolution includes a $130
billion cap adjustment provision for 2010 that allows the
Chairman to revise the discretionary spending cap for non-
emergency appropriations related to overseas contingency
operations such as the wars in Iraq and Afghanistan. The Senate
resolution assumes the use of this cap adjustment and allocates
the amounts to the National Defense function. However, the cap
adjustment would not prevent further war funding on an
emergency basis if war costs exceed the allotted level.
The Senate resolution includes a reserve fund to
facilitate enactment of the President's proposal to expand
``concurrent receipt'' of military retired pay and veterans
disability compensation to retirees who were medically retired
from active service. While full programmatic details will be
provided later, the administration has indicated that the
budget funds the expansion of the Army and Marine Corps in
order to enhance military readiness and reduce the strain of
multiple, extended deployments on current servicemembers.
Additionally, the President's request includes funding to
modernize military barracks and dormitories, and to improve
medical care and housing for wounded servicemembers. The Senate
resolution supports these objectives.
The Senate resolution also recognizes the serious
inequity in how the military death benefits system treats
widows and orphans whom our servicemembers and veterans leave
behind. The Senate resolution provides a deficit-neutral
reserve fund to facilitate the repeal of the law that requires
a dollar-for-dollar reduction in Department of Defense Survivor
Benefit Plan (SBP) annuity benefit payments by benefits
received under the Department of Veterans Affairs Dependency
and Indemnity Compensation (DIC) program. Repeal of the offset
would allow the widows and orphans whom our servicemembers and
veterans leave behind to receive the full SBP amount due to
them. Congress recognized the injustice of the SBP-DIC offset
in the National Defense Authorization Act for Fiscal Year 2008
when it authorized a special payment to SBP-DIC-affected
survivors, but this payment is far below the full amount that
is offset.
The ability of the United States military to project
power worldwide depends on the aerial refueling tanker fleet.
The backbone of this fleet is the KC-135, which is rapidly
approaching its 50th year in service. Further postponement of
the tanker re-capitalization program will have an adverse
effect on our ability to achieve the requirements of the
National Military Strategy. Accordingly, the Senate resolution
assumes that the Air Force will receive not less than $2.37
billion in 2010, and not less than $13 billion across the
Future Years Defense Plan to fund the development and
procurement of a next generation aerial refueling tanker.
The National Guard has a long history of outstanding
service to our nation, and our nation's reliance on the Guard
has only increased since September 11, 2001. The Senate
resolution encourages the Appropriations Committee to identify
additional resources within the defense budget to address needs
for National Guard equipment.
The Senate resolution also assumes no less than $5.55
billion in funding for the Defense Environmental Cleanup
account. The environmental management program is charged with
efficiently cleaning up the environmental damage resulting from
50 years of nuclear weapons production. The Senate resolution
provides for increased funding at several major sites addressed
under this program including Hanford, Idaho Falls, Oak Ridge,
and Savannah River. This increase brings total environmental
management funding for nuclear site cleanup (including amounts
in other budget functions) to $6.5 billion.
Defense funding remains at record levels, even after
adjusting for inflation. The Department of Defense has had
serious trouble with cost growth in its weapons acquisition
programs. The Government Accountability Office has found that
the total acquisition cost of the Pentagon's 2007 portfolio of
major programs has exceeded initial estimates by nearly $300
billion.
The Obama Administration has announced that it will make
reform of the acquisition process a top priority in order to
get the best possible value for defense spending. The Senate
resolution supports that reform effort by including a reserve
fund for defense contracting reform. Additionally, the Senate
resolution assumes not less than $500 million for the
Acquisition Workforce Development Fund, which is already
showing great promise as a mechanism for enhancing the
capability of the Department of Defense to oversee acquisition
programs and get better value for our defense dollar. While the
Senate resolution does not project savings from acquisition
reform or the contracting reform initiatives announced by the
President, successful implementation of those initiatives could
result in significant savings in future years that should be
reserved for deficit reduction.
The Senate resolution also includes a program integrity
cap adjustment dedicated to reducing waste in defense
contracting. The cap adjustment allows the Chairman of the
Budget Committee to increase the discretionary spending cap by
up to $100 million to accommodate legislation appropriating
funding for the Department of Defense for additional activities
to reduce waste, fraud, abuse and overpayments in defense
contracting or to enhance the capability of the defense
acquisition or contracting workforce to save taxpayer
resources. When billions of dollars are wasted due to poor
contracting practices, ordering of unneeded spare parts, or
other waste, fraud and abuse, it is our troops that suffer.
House-passed Resolution
The House resolution reflects a total of $562.0 billion
in BA and $606.0 billion in outlays for 2010, and $2.9 trillion
in BA and $3.0 trillion in outlays over five years.
There is no higher priority than the defense of our
nation, and therefore this resolution makes the necessary
investments and calls for the necessary reforms to ensure the
country is able to meet the security challenges of the 21st
century.
The House resolution includes specific defense policy
assumptions in Title V, section 502. It recognizes that as the
country faces its worst economic crisis since the Great
Depression, DoD needs to get the most out of every dollar it
spends by making tough but necessary tradeoffs to ensure
resources are applied to the most effective and operationally
viable programs, and by assessing national security needs in a
comprehensive manner that includes all agencies involved in our
national security.
The National Commission on Terrorist Attacks Upon the
United States (commonly referred to as the 9/11 Commission)
identified terrorists with weapons of mass destruction as our
number one threat. Consequently, it is the policy of the House
resolution that non-proliferation programs, such as the
Cooperative Threat Reduction program and the nonproliferation
programs at the Department of Energy, be funded at a level that
is commensurate with the evolving threat.
The House resolution recognizes that our most important
security resource is our men and women who serve in uniform. To
honor their service, it is the policy of the House resolution
to not only ensure that they are properly equipped and trained
to perform their mission, but that they also have the proper
support in terms of health care, pay, and support for their
families. The House resolution also includes a deficit-neutral
reserve fund for an expansion of eligibility to permit
additional disabled military retirees to receive both
disability compensation and retired pay.
In recent years, cost overruns on major weapons programs
have worsened. According to the Government Accountability
Office (GAO), the cost of major weapon systems on DoD's books
as of 2007 increased nearly $300 billion above initial
estimates. As a result, our military is not able to purchase
equipment in adequate quantities to equip our servicemen and
servicewomen. To put our defense plans on a sustainable path
and to meet our military's equipment requirements, the House
resolution affirms the Administration's calls to make
acquisition reform a top priority.
According to GAO, government-wide spending on contractor
services has more than doubled over the last ten years. DoD has
expanded the use of contractors in its acquisition process to
aid in program management functions and has relied heavily on
contractors to carry out operations in Iraq and Afghanistan.
This trend has implications for DoD in terms of accountability,
operational effectiveness, and cost. Consequently, it is the
policy of the House resolution that DoD review the role that
contractors play in its operations, including the degree to
which contractors are performing inherently governmental
functions, to ensure it has the most effective mix of
government and contracted personnel.
GAO has performed numerous audits and has produced
numerous recommendations regarding DoD's programs and processes
that have produced billions of dollars of savings. According to
a GAO report released in December 2008, DoD implemented 1,682
recommendations made by GAO from 2001 to 2007 that have
resulted in financial benefits exceeding $89 billion. There are
still 758 recommendations made over that period that DoD has
not yet implemented that could yield billions of dollars in
further savings. The House resolution continues to highlight
the need for DoD to continue to make implementation of GAO
recommendations a top priority and, to the extent possible,
encourages DoD to use savings resulting from implemented GAO
recommendations toward any upfront investments needed to
implement the remaining 758 recommendations.
The House resolution encourages the committees with
jurisdiction over defense to continue to conduct vigorous
oversight with the objective of ferreting out wasteful
practices, fraud, and abuse. It encourages the committees to
require DoD to report to Congress on its progress in
implementing GAO recommendations, the role contractors play in
its operations, its assessment of the applicability of Cold
War-era weapons to meet 21st century threats, and how well
DoD's comprehensive Financial Improvement and Audit Readiness
(FIAR) plan is moving the Department toward achieving a clean
audit.
DoD spends billions of dollars on fuel and electricity
for its planes, ships, vehicles and facilities each year and
increasing world demand for energy could therefore have
significant consequences for our military in the future. As a
result, the House resolution calls on DoD to investigate the
benefit of alternative energy sources and energy efficiency
conversions. The Department should pursue those technologies
that could reduce its energy needs, enhance expeditionary
operations, achieve savings, and reduce dependence on
unreliable energy sources.
The House resolution continues to recognize the need for
the DoD to develop a shipbuilding plan that is viable in terms
of providing an adequate number of ships for the Navy to
perform its mission and that is viable in terms of sustaining
the industrial base.
Our national security is not solely dependent on our
military, and other agencies and programs are important to
effectively address the threats of today and mitigate the
possibility of future threats. Therefore, it is the policy of
the House resolution that coordination is needed to ensure that
all of our agencies involved in our national security work in a
complementary way, and that when assessing security threats and
the funding needed to counter them, the Administration should
do so in a comprehensive manner that includes all agencies
involved in our national security.
Conference Agreement
The conference agreement for Function 050 includes a
total of $562.0 billion in BA and $606.0 billion in outlays in
2010, and $2.9 trillion in BA and $3.0 trillion in outlays over
five years. Consistent with both the House- and Senate-passed
resolutions, the conference agreement affirms the importance of
reforming the defense acquisition and contracting processes to
achieve better value for the American taxpayer.
For mandatory programs, the conference agreement provides
$5.9 billion in BA and $6.0 billion in outlays in 2010, and
$28.3 billion in BA and $28.4 billion in outlays over five
years.
The conference agreement reflects the cost of overseas
deployments and other activities in Function 970, as in the
House-passed resolution. Consistent with the Senate resolution,
the conference agreement allows the discretionary spending caps
to be adjusted to accommodate appropriations for such costs.
The conference agreement includes deficit-neutral reserve
funds addressing defense-related matters. Both chambers have
deficit neutral reserve funds to accommodate initiatives
related to meeting our commitments to the nation's military
personnel, veterans, and survivors. The Department of Defense
and congressional committees of jurisdiction are encouraged to
reverse the decision to eliminate credit toward DOD retirement
pay for service in the Alaska Territorial Guard during World
War II.
The conference agreement also includes a Senate deficit-
neutral reserve fund providing for legislation that would
reform defense contracting and acquisition policy in order to
achieve better value for taxpayer resources. The reserve fund
would accommodate legislation that provided for additional
activities to reduce waste, fraud, abuse, and overpayments in
defense contracting or to enhance the capability of the defense
acquisition or contracting workforce, among other purposes.
The conference agreement includes a statement of policy
on defense issues (section 502) that outlines key priorities to
be funded within the defense allocation and the need for the
Department of Defense to reform its acquisition process and to
do a better job of reining in wasteful spending, particularly
with regard to contracting practices and continuing funding of
Cold War-era weapons systems that may not be as effective
against today's threats. It also highlights the need for DoD to
place greater emphasis on implementing GAO recommendations,
which could yield billions of dollars in savings.

INTERNATIONAL AFFAIRS: FUNCTION 150

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

GENERAL SCIENCE, SPACE AND TECHNOLOGY:

FUNCTION 250

Function Summary
The General Science, Space, and Technology function
includes funding for the National Aeronautics and Space
Administration (NASA), except aviation programs, the National
Science Foundation (NSF), as well as programs in the Department
of Energy (DOE) Office of Science.
Senate-passed Resolution
The Senate resolution provides an increase above the
President's requested level over the five-year window by
providing $31.1 billion in BA and $32.5 billion in outlays for
2010, and $171.9 billion in BA and $170.3 billion in outlays
over five years.
The Senate resolution funds the National Aeronautics and
Space Administration (NASA) at $18.7 billion for 2010. This
level of funding recognizes the importance of our nation's
space program and endorses the agency's balanced goals of
exploration, science, and aeronautics. This level of funding
also reflects the vital role our space program plays in driving
scientific and technological advancements critical to our
economy.
NASA currently intends to retire its Space Shuttles at
the end of 2010. The criteria for Shuttle retirement, however,
remains the completion of scheduled flights, and a fixed
retirement date could create dangerous scheduling pressures.
Consequently, the Senate resolution recognizes the possibility
that currently planned Shuttle missions may continue beyond the
end of 2010, and provides $2.5 billion above the President's
request for 2011 with additional resources for NASA in the
outyears.
Currently, NASA projects a five-year gap in U.S. human
space flight capability. During that gap the United States will
need to purchase space flight services from Russia, costing in
excess of $500 million. The Senate resolution recognizes the
strategic importance of uninterrupted access to space and
supports efforts to reduce or eliminate this five-year gap in
U.S. human space flight.
House-passed Resolution
The House resolution calls for a total of $31.1 billion
in BA and $32.5 billion in outlays for 2010, and for $166.1
billion in BA and $165.8 billion in outlays over five years.
The House budget resolution total for this function
equals the level requested by the President for FY 2010, and
for all five years in the budget window. Funding for scientific
research and education is also included in Function 270
(Energy), Function 300 (Environment and Natural Resources),
Function 350 (Agriculture), Function 370 (Commerce and Housing
Credit), Function 400 (Transportation), Function 500
(Education, Training, Employment, and Social Services), and
Function 550 (Health). This funding will support the science
and technology goals of the House Leadership's Innovation
Agenda and the America COMPETES Act: to put NSF funding on a
path toward doubling, to train more qualified science and math
teachers, and to invest in basic research on energy
technologies.
Conference Agreement
The conference agreement includes $31.1 billion in BA and
$32.5 billion in outlays in 2010, and $168.7 billion in BA and
$168.5 billion in outlays over five years.
The conference agreement provides additional resources
throughout the five year budget window, as requested by the
President, for COMPETES Act and other Innovation programs in
Function 250 as well as in other functions.
The conference agreement recognizes the scientific and
technological contributions of our nation's manned and unmanned
space program and the strategic importance of uninterrupted
human access to space, and supports efforts to reduce the
impending gap in U.S. human spaceflight. The conference
agreement matches the President's request for NASA in 2010
(while acknowledging that an additional $400 million was
appropriated for NASA exploration in the 2009 American Recovery
and Reinvestment Act) and provides $2.5 billion above the
President's request in 2011. The additional funding is provided
in 2011 in anticipation that the funding is needed for the
remaining eight space shuttle missions to safely fly and to
complete the construction and equipping of the international
space station.

ENERGY: FUNCTION 270

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

NATURAL RESOURCES AND ENVIRONMENT: FUNCTION 300

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

AGRICULTURE: FUNCTION 350

Function Summary
The Agriculture function includes farm income
stabilization, agricultural research, and other services
administered by the U.S. Department of Agriculture. The
discretionary programs include research and education programs,
economics and statistics services, administration of the farm
support programs, farm loan programs, meat and poultry
inspection, and a portion of the Public Law 480 international
food aid program. The mandatory programs include commodity
programs, crop insurance, and certain farm loans.
Senate-passed Resolution
The Senate resolution reflects a total of $23.6 billion
in BA and $23.9 billion in outlays for 2010, and $114.9 billion
in BA and $109.0 billion in outlays over five years. During
Committee consideration, an amendment was adopted assuming $70
million in savings per year in crop insurance over the next
five years. The amendment dedicated $175 million for child
nutrition and $175 million for deficit reduction. Besides these
changes, the Senate resolution leaves all other nutrition,
conservation, renewable energy, and farm safety net
improvements included in the 2008 Farm Bill unchanged.
Given our current fiscal situation, the Senate resolution
recognizes that all areas of the federal budget need to be
examined for savings. Even though the 2008 Farm Bill received
over 80 votes in the Senate and was fully paid for, the Senate
resolution would support targeted savings in agriculture,
including some savings in the Environmental Quality Incentives
Program and the federal crop insurance program.
House-passed Resolution
The House resolution calls for a total of $23.7 billion
in BA and $24.0 billion in outlays for 2010, and for $115.7
billion in BA and $109.7 billion in outlays over five years.
The House resolution provides resources for commodity support,
agricultural research, and the Animal and Plant Health
Inspection Service, including activities to support eradication
of the Asian Longhorn Beetle.
For mandatory spending, the House resolution assumes
levels provided by current law. For discretionary programs, the
House resolution matches the levels in the President's budget.
Conference Agreement
The conference agreement calls for a total of $23.7
billion in BA and $24.0 billion in outlays for 2010, and for
$115.6 billion in BA and $109.6 billion in outlays over five
years. For discretionary spending, the conference agreement
assumes $6.1 billion in BA and $6.2 billion in outlays for
2010. For mandatory spending, the agreement matches CBO's
baseline estimate for March 2009 (assuming levels provided by
current law), leaving all of the nutrition, conservation,
renewable energy, and farm safety net improvements made in the
2008 Farm Bill unchanged.

COMMERCE AND HOUSING CREDIT: FUNCTION 370

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

TRANSPORTATION: FUNCTION 400

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

COMMUNITY AND REGIONAL DEVELOPMENT: FUNCTION 450

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

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

Function Summary
The Education, Training, Employment and Social Services
function includes funding for the Department of Education, as
well as programs in the Department of Health and Human Services
(HHS) and the Department of Labor. This function provides
funding for elementary and secondary, career and technical, and
post-secondary educational programs; job training and
employment services; children and family services; and
statistical analysis and research related to these areas. It
also contains funding for the Library of Congress and
independent research and arts agencies.
Senate-passed Resolution
The Senate resolution calls for a total of $94.4 billion
in BA and $140.6 billion in outlays for 2010, and $561.1
billion in BA and $640.4 billion in outlays over five years.
Building on the investments in education and training
provided in the economic recovery package, the Senate
resolution fully funds the President's request for education
and training programs over the five-year budget window.
Investments in education and training programs have sound
economic benefits and the Senate-passed resolution provides
Americans a complete and competitive education from cradle to
career.
There is increasing evidence that investing in high
quality early childhood education programs, such as Head Start,
is a solid investment, yielding $10 in reduced social costs for
every dollar invested. Despite these benefits, many preschool
students do not have access to quality early education
programs. The Senate-passed resolution provides expanded
resources to invest in the long-term returns of early
education.
Moreover, decreased federal funding for education has
implications at the state and local level. When the federal
government reduces its share of funding for the Individuals
with Disabilities Education Act, state and local governments
have to cut programs to cover the decreasing share of special
education.
The Senate resolution calls for a significant investment
to build our human capital through programs targeting low-
income students, such as Title I, and for innovative and
effective strategies to reduce achievement gaps and improve
student learning in grade schools, middle schools, and high
schools. The competitive educational advantage we used to
enjoy, relative to other nations, has eroded significantly in
recent years.
The Senate resolution proposes to reduce barriers to
higher education by including provisions that could accommodate
the President's student aid proposals, such as expanding Pell
grants. The President has challenged our students to commit to
at least one year of post-secondary study. However, many low-
and moderate-income high school graduates who are fully
prepared to go to college do not because of financial barriers.
Employers indicate that we are not producing enough trained
workers with the skills for the modern workplace, particularly
in high-growth sectors such as health care and green energy
technologies. Increasingly, these sectors require some form of
post-secondary education or job re-training.
The Senate resolution recognizes that effective education
and training programs are necessary to restart U.S. economic
growth and allow our citizens to compete in the global economy.
It makes this effort a high priority. The Senate resolution
also provides the President's requested level for the
Corporation for National and Community Service to encourage
Americans to serve their community and country.
The Senate resolution provides a deficit-neutral reserve
fund for higher education to facilitate enactment of
legislation to make college more accessible and affordable.
The Senate resolution adopted three amendments to the
Higher Education reserve fund which would maintain a
competitive student loan program; facilitate expanded funding
for programs that provide need-based grants and community work-
study programs; and facilitate expanded funding for programs
that provide outreach to low-income students to prepare for
college. The Senate also adopted an amendment to the Economic
Stabilization and Growth reserve fund to provide specialized
training for workers in emerging industries. In addition the
Senate adopted an amendment to provide a reserve fund for
after-school programs.
House-passed Resolution
The House resolution calls for a total of $93.7 billion
in BA and $140.3 billion in outlays for 2010, and for $560.4
billion in BA and $639.6 billion in outlays over five years.
The 2010 House resolution supports the President's
investments in education from early childhood through post-
secondary education and training and shares the President's
goal of improving American education and creating a workforce
that is prepared to compete and succeed in the global economy.
The House resolution supports the President's plan to make a
new investment in early childhood education, improve student
achievement in elementary and secondary education through both
proven strategies and innovative approaches, and increase the
number of high school graduates that attend and complete higher
education by making college more affordable and accessible. The
House resolution also accommodates the President's support for
strong job training services that will prepare Americans for
stable and high-paying jobs.
The 111th Congress has already made significant new
investments in education in the American Recovery and
Reinvestment Act, which provided about $100 billion that states
will use primarily to maintain elementary, secondary, and
higher education services. The American Recovery and
Reinvestment Act targeted significant funds to Title I
(Education for the Disadvantaged), Head Start, and special
education, where the funding can be used to train more teachers
to provide needed services in the future. The House budget
resolution builds upon that start by providing the level of
funding in the President's request for education, job training,
and social services for 2010.
The House resolution's funding could support services
that will help students meet high standards and will provide
effective teachers and principals, including investments in key
programs such as Head Start and the Individuals with
Disabilities Education Act. It also could support the No Child
Left Behind Act programs that work to close the achievement gap
and ensure that all children learn, including Impact Aid and
after-school services. The funding could be used as a down
payment on a comprehensive literacy initiative for the nation
that encompasses early childhood, elementary, and secondary
education.
This year Congress increased the maximum Pell Grant award
by $619--the largest annual increase for a program that helps
more than seven million students pay for college. The House
resolution provides discretionary funding to support the
President's Pell grant increase for 2010. Going forward, the
House resolution could accommodate the President's proposals to
provide additional assistance to help more low-income high
school graduates attend and complete college, provided they are
enacted in a fiscally responsible way. Further assistance could
include expanding access to Historically Black Colleges and
Universities as well as Hispanic-serving institutions and other
minority-serving institutions, which continue to make important
contributions towards increasing the percentage of minority
students gaining a college degree.
The House urges the Committee on Education and Labor to
review options for the student loan program that will maintain
a role for FFELP lenders in the student loan program, and to
look to ways to achieve savings that capitalize on current
infrastructure and minimize the disruption to students and the
employees of FFELP lenders who currently serve 75 percent of
loans at American colleges, universities, and community
colleges.
The House resolution continues to support two-year
advance funding for the Corporation for Public Broadcasting,
and recognizes that public television and radio stations are
experiencing financial distress as a result of the recession.
The House resolution contains a reserve fund to
accommodate legislation that makes college more affordable,
consistent with the House pay-as-you-go rule. It also contains
fiscally responsible reconciliation instructions directing the
Committee on Education and Labor to report a bill that invests
in education while reducing the deficit by $1 billion over the
2009-2014 period.
Conference Agreement
The conference agreement calls for a total of $94.4
billion in BA and $140.6 billion in outlays for 2010, and for
$561.1 billion in BA and $640.4 billion in outlays over five
years.
The conference agreement recognizes the importance of
investing in education and training programs to build a highly
skilled workforce that can compete in the global marketplace
and provides the President's requested level for education,
training and social service programs in every year over the
five-year budget window. The increased funding will assist
Americans from cradle to career with job training programs,
access to higher education through Pell grants and state
programs targeted to low-income students, elementary and
secondary education programs such as Title I and IDEA, and
expanded resources for Head Start and other early education
programs.
The conference agreement contains deficit-neutral reserve
funds for higher education legislation in both the House and
Senate. It also includes a Senate reserve fund for 21st Century
Learning Centers.
The conference agreement includes a Sense of Congress
provision on college affordability and student loan reform that
reaffirms the importance of the student aid services provided
by both non-profit and for-profit entities in the student loan
program, as well as the employment they provide across the
country.

HEALTH: FUNCTION 550

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

MEDICARE: FUNCTION 570

Function Summary
The Medicare function includes funding to administer and
to provide benefits under the Medicare program. Medicare is a
federal health insurance program that currently covers 45
million Americans aged 65 and older, as well as younger adults
who are disabled or suffer from end-stage renal disease.
Congress provides an annual appropriation for the costs
of administering Medicare, including resources to conduct
program integrity activities to guard against improper
payments, fraud, and abuse. The remainder of spending in this
function is mandatory and reflects payments to health care
providers and private insurance plans, as well as beneficiary
premiums and other receipts and payments to the Medicare trust
funds, under the Part A Hospital Insurance (HI) program, the
Part B Supplementary Medical Insurance (SMI) program, the Part
C Medicare Advantage program, and the Part D Prescription Drug
program.
Senate-passed Resolution
The Senate resolution calls for a total of $442.8 billion
in BA and $443.0 billion in outlays for 2010, and $2.6 trillion
in BA and $2.6 trillion in outlays over five years. The
mandatory spending levels in the Senate resolution are at the
CBO baseline level in all years covered by the resolution. In
addition, the Senate resolution includes a deficit-neutral
reserve fund in Sec. 201(b) for legislation that increases the
reimbursement rate for Medicare physician services (and
overrides a large payment rate cut that would otherwise go into
effect on January 1, 2010) and addresses other Medicare benefit
and payment issues. In addition, the Senate resolution also
contemplates Medicare physician payment reform as a component
of comprehensive health reform and subject to the flexibility
of the reserve fund in Sec. 201(a).
The discretionary spending levels in the Senate
resolution assume $25 million over the period 2010 to 2012 to
begin addressing the administrative costs associated with
legislation that would reduce the potential for identity theft
by requiring the Centers for Medicare and Medicaid Services to
remove Social Security numbers from Medicare cards.
For 2010, the discretionary funding levels in this
function include a discretionary cap adjustment of up to $311
million for program integrity activities of the Health Care
Fraud and Abuse Control (HCFAC program) to address improper
payments, fraud, and abuse in the Medicare program.
House-passed Resolution
The House resolution calls for a total of $449.7 billion
in BA and $449.8 billion in outlays for 2010, and for $2.6
trillion in BA and outlays over five years.
The House budget resolution function level for Medicare
assumes that the payment rates in effect for physicians for
2009 will stay in effect through 2019. This assumption is
consistent with the President's budget and is based on
Congressional actions in recent years to prevent cuts in
physician payments that would otherwise be required by the
Sustainable Growth Rate formula. However, like the President's
budget, the House budget resolution does not intend this
assumption as a reflection of future policy. Instead, the
assumption represents a realistic and meaningful benchmark
against which to measure the fiscal effects of legislation
reforming the Medicare physician payment system. The House
resolution includes a reserve fund (Sec. 314) to accommodate
legislation for improvements in Medicare's system for paying
physicians.
The House resolution provides a discretionary cap
adjustment of $311 million for additional activities aimed at
detecting and preventing Medicare fraud and other improper
payments. The Health Care Fraud and Abuse Control program is a
joint effort of the Department of Health and Human Services,
the HHS Office of the Inspector General, and the Department of
Justice.
Conference Agreement
The conference agreement reflects a total of $449.7
billion in BA and $449.8 billion in outlays in 2010, and $2.6
trillion in BA and $2.6 trillion in outlays over five years.
For 2010, the discretionary spending levels in this
function are $5 million above the President's request. Over
five years, the discretionary funding in this function assumes
$25 million to begin addressing the administrative costs
associated with legislation that would reduce the potential for
identity theft by requiring the Centers for Medicare and
Medicaid Services to remove Social Security numbers from
Medicare cards.
The mandatory spending levels in this function assume $38
billion above the CBO baseline level, which reflects Medicare
payment rates in effect for physicians for 2009 staying in
effect through 2010, 2011, and at least part of 2012. However,
the conference agreement does not intend this assumption as a
reflection of future policy. In the Senate, legislation that
would freeze physician payments at current levels, provide a
positive update for physician payments, or reform the Medicare
physician payment system, whether on a temporary or permanent
basis, must be compliant with Sec. 301(a) or Sec. 301(b) in
this conference agreement. In the House, Sec. 421 of the
conference agreement allows the chairman of the Budget
Committee to treat the additional $38 billion as a current
policy adjustment before evaluating the costs of legislation
affecting Medicare physician payments for compliance with House
budget rules and procedures, assuming the condition stated in
that section is met.
The conference agreement includes a Senate reserve fund
(Sec. 301) and a House reserve fund (Sec. 321) to accommodate
comprehensive health reform legislation and related provisions,
including legislation for improvements in Medicare's system for
paying physicians.

INCOME SECURITY: FUNCTION 600

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

SOCIAL SECURITY: FUNCTION 650

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

VETERANS BENEFITS AND SERVICES: FUNCTION 700

Function Summary
Function 700 covers the programs of the Department of
Veterans Affairs (VA), including veterans' medical care,
compensation and pensions, education and rehabilitation
benefits, and housing programs. It also includes the Department
of Labor's Veterans' Employment and Training Service, the
United States Court of Appeals for Veterans Claims, and the
American Battle Monuments Commission. More than 99 percent of
appropriated veterans' funding goes to VA, and more than 85
percent of this funding is for VA medical care and hospital
services.
Senate-passed Resolution
The Senate resolution calls for a total of $106.5 billion
in BA and $105.6 billion in outlays for 2010, and $557.6
billion in BA and $554.5 billion in outlays over five years.
The Senate resolution provides a $5.6 billion increase for the
VA in 2010, and continues that commitment by increasing funding
for the VA by $27 billion over the next five years. The Senate
resolution also provides additional resources to the VA so that
veterans' insurance need not be billed for service-connected VA
care and for increased beneficiary travel reimbursement. Once
again, the Senate resolution recognizes the deep debt our
nation owes to those who have served in defending our country
and continues to provide critical resources to ensure that they
get the quality health care they deserve.
In addition, the Senate resolution understands that there
is an urgent need for funding of grants for State Veterans
Cemeteries with the aging of the WWII generation.
Unfortunately, funding levels have not kept up with need.
Therefore, the Senate resolution supports adequate funding that
can address the costs of constructing new cemeteries as well as
the needs of existing State Veterans Cemeteries.
House-passed Resolution
The House resolution calls for a total of $106.4 billion
in BA and $105.5 billion in outlays for 2010, and for $557.7
billion in BA and $554.6 billion in outlays over five years.
The total BA level for 2010 includes discretionary BA of $53.3
billion.
The 2009 level of discretionary BA includes $1.6 billion
in emergency appropriations from the American Recovery and
Reinvestment Act and other legislation. For 2010, the House
resolution provides $5.5 billion (11.5 percent) more
discretionary BA than the 2009 level (excluding emergency
funding) and $540 million (1.0 percent) more than the
President's 2010 budget.
The House resolution emphasizes the high priority that
the House places on continuing to provide sufficient and timely
funding for veterans' health care. The House resolution
provides full funding to support excellent health care for
veterans. It includes funding to restore health care
eligibility to additional non-disabled veterans with modest
incomes (Priority Group 8), consistent with the President's
budget. In addition, the House resolution provides funding
above the 2009 levels for VA to research and treat mental
health, post-traumatic stress disorder (PTSD), and traumatic
brain injury. In particular, the House resolution recognizes
the importance of ensuring adequate funding for
neuropsychiatric-PTSD staff and research.
The House resolution affirms that VA is not and should
not be authorized to bill private insurance companies for
treatment of health conditions that are related to veterans'
military service. VA already is authorized to bill such
companies for treatment of conditions that are not service-
connected. The House resolution adds $540 million to the
President's strong budget for veterans to safeguard the
provision of health care if, using existing authorities, VA
does not realize the level of increase in these medical care
collections that is estimated in the President's budget.
Conference Agreement
The conference agreement calls for a total of $106.5
billion in BA and $105.6 billion in outlays for 2010, and
$558.4 billion in BA and $555.3 billion in outlays over five
years. The conference agreement provides an 11.7 percent
increase for discretionary BA for veterans' health care and
other services (excluding emergency funding), and continues
that commitment by increasing discretionary funding for the
Department of Veterans Affairs (VA) and related agencies by
more than $27 billion over the next five years. The decrease in
mandatory BA and outlays between 2011 and 2012 reflects the
timing of monthly benefit payments--primarily, disability
compensation and pensions--in any given fiscal year. It is not
the result of any reduction in benefits. As a result, 2011
includes 13 benefit payment dates, while 2012 contains only 11
benefit payment dates.
The conference agreement includes funding to restore
health care eligibility to additional non-disabled veterans
with modest incomes (Priority Group 8), consistent with the
President's budget. In addition, the agreement provides funding
above the 2009 levels for VA to research and treat mental
health, post-traumatic stress disorder, and traumatic brain
injury. The conference agreement supports increasing the number
of healthcare professionals in the Veterans Health
Administration (VHA) to meet the needs of the expanding number
of veterans and to fill vacant healthcare professional
positions at VHA. The conference agreement supports enhanced
incentives for healthcare professionals of the VHA who serve in
rural areas and increases to veterans beneficiary travel
reimbursement. The conference agreement also provides
additional resources to the VA so that veterans' private
insurance need not be billed for service-connected VA care, and
the agreement affirms that VA is not and should not be
authorized to bill private insurance companies for treatment of
health conditions that are related to veterans' military
service.
In addition, the conference agreement recognizes that
there is an urgent need to open new national and State Veterans
Cemeteries with the aging of the WWII generation.
Unfortunately, funding levels for grants for State Veterans
Cemeteries have not kept up with the need. Therefore, the
conference agreement supports adequate funding that can address
the costs of constructing new cemeteries as well as the needs
of existing State Veterans Cemeteries.
Sections 402 and 424 of the conference agreement include
language exempting the following VA accounts from a point of
order against advance appropriations: Medical Services, Medical
Support and Compliance, and Medical Facilities.

ADMINISTRATION OF JUSTICE: FUNCTION 750

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

GENERAL GOVERNMENT: FUNCTION 800

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

NET INTEREST: FUNCTION 900

Function Summary
The Net Interest function is entirely mandatory with no
discretionary components. It consists primarily of the interest
paid by the federal government to private and foreign
government holders of U.S. Treasury securities. It includes the
interest on the public debt after deducting the interest income
received by the federal government from trust fund investments,
loans and cash balances, and earnings of the National Railroad
Retirement Investment Trust.
Senate-passed Resolution
For the unified budget, the Senate resolution calls for
BA and outlays of $168.8 billion for 2010 and $1.4 trillion
over five years. (The budget resolution provides only the on-
budget amounts, which total $284.6 billion in BA and outlays
for 2010 and $2.0 trillion in BA and outlays over five years.)
House-passed Resolution
For the unified budget, the House resolution calls for a
total of $168.3 billion in BA and outlays for 2010, and for
$1.4 trillion in BA and outlays over five years. (The budget
resolution provides only the on-budget amounts, which are
$284.1 billion in BA and outlays for 2010, and $2.0 trillion in
BA and outlays over five years.)
Conference Agreement
For the unified budget, the conference agreement calls
for BA and outlays of $168.4 billion for 2010 and $1.4 trillion
over five years. (The on-budget amounts are $284.2 billion in
BA and outlays for 2010 and $2.0 trillion in BA and outlays
over five years.)

ALLOWANCES: FUNCTION 920

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

UNDISTRIBUTED OFFSETTING RECEIPTS: FUNCTION 950

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

OVERSEAS DEPLOYMENTS AND OTHER ACTIVITIES: FUNCTION 970

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

RECONCILIATION

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

RESERVE FUNDS

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

--provided the legislation is deficit-neutral over the total of
2009-2014 and 2009-2019.
(d) Flood Control Projects: The Senate resolution allows
the Chairman of the Budget Committee to revise the levels and
limits in the resolution for one or more pieces of legislation
that provide for levee modernization, maintenance, repair, and
improvement, provided it is deficit-neutral over the total of
2009-2014 and 2009-2019.
(e) Allowing Amtrak Passengers to Securely Transport
Firearms on Passenger Trains: The Senate resolution states that
none of amounts made available in the reserve fund authorized
under this section may be used to provide financial assistance
for the National Railroad Passenger Corporation (Amtrak) unless
Amtrak passengers are allowed to securely transport firearms in
their checked baggage.
Sec. 206. Promote economic stabilization and growth
(a) Manufacturing: The Senate-passed resolution allows
the Chairman of the Budget Committee to revise the levels and
limits in the resolution for one or more pieces of legislation
that would revitalize and strengthen the United States domestic
manufacturing sector by increasing Federal research and
development, by expanding the scope and effectiveness of
manufacturing programs across the Federal Government, by
increasing efforts to train and retrain manufacturing workers,
by enhancing workers' technical skills in the use of the new
advanced manufacturing technologies to produce competitive
energy efficient products, by increasing support for sector
workforce training, by increasing support for the redevelopment
of closed manufacturing plants, by increasing support for
development of alternative fuels and leap-ahead automotive and
energy technologies such as advanced batteries, or by
establishing tax incentives to encourage the continued
production in the United States of advanced technologies and
the infrastructure to support such technologies, provided it is
deficit-neutral over the total of 2009-2014 and 2009-2019.
(b) Tax Relief: The Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for legislation that would provide tax relief including, but
not limited to, extensions of expiring and expired tax relief
provisions, provided it is deficit-neutral over the total of
2009-2014 and 2009-2019.
(c) Tax Reform: The Senate resolution allows the Chairman
of the Budget Committee to revise the levels in the resolution
for legislation that would reform the Internal Revenue Code to
ensure a sustainable revenue base that would lead to a fairer
and more efficient tax system and to a more competitive
business environment for United States enterprises, provided it
is deficit-neutral over the total of 2009-2014 and 2009-2019.
(d) Flood Insurance Reform: The Senate resolution allows
the Chairman of the Budget Committee to revise the levels in
the resolution for one or more pieces of legislation that would
provide for flood insurance reform and modernization, provided
it is deficit-neutral over the total of 2009-2014 and 2009-
2019.
(e) Trade: The Senate resolution allows the Chairman of
the Budget Committee to revise the levels in the resolution for
one or more pieces of legislation related to trade, provided it
is deficit-neutral over the total of 2009-2014 and 2009-2019.
(f) Housing Assistance: The Senate resolution allows the
Chairman of the Budget Committee to revise the levels and
limits in the resolution for one or more pieces of legislation
related to housing assistance, which may include low income
rental assistance and assistance provided through the Housing
Trust Fund created under section 1131 of the Housing and
Economic Recovery Act of 2008, and legislation that allows for
a temporary suspension of the 10 percent tax penalty on early
withdrawal from qualified retirement accounts, provided it is
deficit-neutral over the total of 2009-2014 and 2009-2019.
(g) Unemployment Mitigation: The Senate resolution allows
the Chairman of the Budget Committee to revise the levels in
the resolution for one or more pieces of legislation that would
reduce the unemployment rate or provide assistance to the
unemployed, particularly in the states and localities with the
highest rates of unemployment, or improve the implementation of
the unemployment compensation program, provided it is deficit-
neutral over the total of 2009-2014 and 2009-2019.
Sec. 207. America's veterans and wounded servicemembers
The Senate-passed resolution includes a reserve fund
allowing the Chairman of the Budget Committee to revise the
levels in the resolution for legislation that would expand the
number of disabled military retirees who receive both
disability compensation and retired pay, accelerate the phase-
in of concurrent receipt, eliminate the offset between Survivor
Benefit Plan annuities and Veterans' Dependency and Indemnity
Compensation, enhance servicemember education benefits for
members of the National Guard and Reserve by ensuring those
benefits keep pace with the national average cost of tuition,
provide for the payment of retired pay for members of the
Alaska Territorial Guard who served in the Alaska Territorial
Guard during and after World War II, or expand veterans'
benefits (including for veterans living in rural areas),
provided such legislation is deficit-neutral over the total of
2008-2013 and 2008-2018.
Sec. 208. Judicial pay and judgeships and postal retiree
assistance
(a) Judicial Pay and Judgeships: The Senate-passed
resolution allows the Chairman of the Budget Committee to
revise the levels in the resolution for one or more pieces of
legislation that authorize salary adjustments for justices and
judges of the United States or increases the number of federal
judgeships, provided it is deficit-neutral over the total of
2009-2014 and 2009-2019.
(b) Postal Retirees: The Senate resolution allows the
Chairman of the Budget Committee to revise the levels in the
resolution for one or more pieces of legislation relating to
funding adjustments for United States Postal Service retiree
health coverage, provided it is deficit-neutral over the total
of 2009-2014 and 2009-2019.
Sec. 209. Defense acquisition and contracting reform
The Senate resolution allows the Chairman of the Budget
Committee to revise the levels in the resolution for one or
more pieces of legislation that would--
(1) enhance the capability of the Federal acquisition
or contracting workforce to achieve better value for
taxpayers;
(2) reduce the use of no-bid and cost-plus contracts;
(3) reform Department of Defense processes for
acquiring weapons systems in order to reduce costs,
improve cost and schedule estimation, enhance
developmental testing of weapons, or increase the rigor
of reviews of programs that experience critical cost
growth;
(4) reduce the award of contracts to contractors with
seriously delinquent tax debts;
(5) reduce the use of contracts, including the
continuation of task orders, awarded under the
Logistics Civil Augmentation Program (LOGCAP) III;
(6) reform Department of Defense processes for
acquiring services in order to reduce costs, improve
costs and schedule estimation, enhance oversight, or
increase the rigor of reviews of programs that
experience critical cost growth;
(7) reduce the use of contracts for acquisition,
oversight, and management support services; or
(8) enhance the capability of auditors and inspectors
general to oversee Federal acquisition and procurement;

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

--provided that such legislation would not increase the deficit
over either the period of the total of 2009 through 2014 or the
period of the total of 2009 through 2019.
Sec. 213. Improving domestic fuels security
The Senate-passed resolution allows the Chairman of the
Budget Committee to revise the levels in the resolution for one
or more pieces of legislation that would achieve domestic fuels
security by authorizing the Department of Defense to procure
alternative fuels from domestic sources under contracts for up
to 20 years, provided that procurement is consistent with
section 526 of the Energy Independence and Security Act of 2007
(Public Law 110-140), and provided that such legislation would
not increase the deficit over either the period of the total of
2009 through 2014 or the period of the total of 2009 through
2019.
Sec. 214. Comprehensive investigation into the current
financial crisis
The Senate resolution allows the Chairman of the Budget
Committee to revise the levels and limits in the resolution for
one or more pieces of legislation that provide resources for a
comprehensive investigation to determine the cause of the
current financial crisis, hold those responsible accountable,
and provide recommendations to prevent another financial crisis
of this magnitude from occurring again, provided it is deficit-
neutral over the total of 2009-2014 and 2009-2019.
Sec. 215. Increased transparency at the federal reserve
The Senate-passed resolution allows the Chairman of the
Budget Committee to revise the levels and limits in the
resolution for one or more pieces of legislation that increase
transparency at the Federal Reserve System, including audits of
the Board of Governors of the Federal Reserve System and the
Federal reserve banks, to include--
(1) an evaluation of the appropriate number and the
associated costs of Federal reserve banks;
(2) publication on its website, with respect to all
lending and financial assistance facilities created by
the Board to address the financial crisis, of--
(a) the nature and amounts of the
collateral that the central bank is accepting
on behalf of American taxpayers in the various
lending programs, on no less than a monthly
basis;
(b) the extent to which changes in
valuation of credit extensions to various
special purpose vehicles, such as Maiden Lane
I, Maiden Lane II, and Maiden Lane III, are a
result of losses on collateral which will not
be recovered;
(c) the number of borrowers that
participate in each of the lending programs and
details of the credit extended, including the
extent to which the credit is concentrated in
one or more institutions; and
(d) information on the extent to which the
central bank is contracting for services of
private sector firms for the design, pricing,
management, and accounting for the various
lending programs and the terms and nature of
such contracts and bidding processes; and
(3) including the identity of each entity to which
the Board has provided all loans and other financial
assistance since March 24, 2008, the value or amount of
that financial assistance, and what that entity is
doing with such financial assistance

--provided it is deficit-neutral over the total of 2009-2014
and 2009-2019.
Sec. 216. Improving child welfare
The Senate-passed resolution allows the Chairman of the
Budget Committee to revise the levels in the resolution for one
or more pieces of legislation that would make improvements to
child welfare programs, including strengthening the recruitment
and retention of foster families, or make improvements to the
child support enforcement program, provided it is deficit-
neutral over the total of 2009-2014 and 2009-2019.
Sec. 217. Long-term stability/housing for victims
The Senate-passed resolution allows the Chairman of the
Budget Committee to revise the levels and limits in the
resolution for one or more pieces of legislation that would
fully fund the Long-Term Stability/Housing for Victims Program
under the Violence Against Women Act, by the amounts provided
in that legislation for those purposes, provided it is deficit-
neutral over the total of 2009-2014 and 2009-2019.
Sec. 218. Providing a tax credit for the purchase of a
principal residence
The Senate-passed resolution includes a reserve fund
allowing the Chairman of the Budget Committee to revise the
levels in the resolution for legislation that would provide a
non-refundable tax credit in the amount of the lesser of
$15,000 or 10 percent of the purchase price for the purchase of
a principal residence for the period of one year, provided such
legislation is deficit-neutral over the total of 2009-2014 and
2009-2019.
Sec. 219. Monitoring of FHA-insured lending
The Senate-passed resolution allows the Chairman of the
Budget Committee to revise the levels and limits in the
resolution for one or more pieces of legislation that would
increase the capacity of the Inspector General of the
Department of Housing and Urban Development to investigate
cases of mortgage fraud of Federal Housing Administration
loans, provided it is deficit-neutral over the total of 2009-
2014 and 2009-2019.
Sec. 220. Address the systemic inequities of Medicare and
Medicaid reimbursement that lead to access problems
in rural areas
The Senate-passed resolution allows the Chairman of the
Budget Committee to revise the levels in the resolution for one
or more pieces of legislation that address the systemic
inequities of Medicare and Medicaid reimbursement that lead to
access problems in rural areas, including access to primary
care and outpatient services, hospitals, and an adequate supply
of providers in the workforce, provided that it is deficit-
neutral over the total of 2009-2014 and 2009-2019.
Sec. 221. Carbon capture and storage and advanced clean
coal power generation research, development,
demonstration, and deployment
The Senate-passed resolution allows the Chairman of the
Budget Committee to revise the levels in the resolution for one
or more pieces of legislation that would accelerate the
research, development, demonstration, and deployment of
advanced technologies to capture and store carbon dioxide
emissions from coal-fired power plants and other industrial
emission sources and to use coal in an environmentally
acceptable manner, provided that such legislation would not
increase the deficit over either the period of the total of
2009 through 2014 or the period of the total of 2009 through
2019.
Sec. 222. Expenditure of remaining TARP funds
The Senate-passed resolution allows the Chairman of the
Budget Committee to revise the levels and limits in the
resolution for one or more pieces of legislation that reaffirm
that the remaining Troubled Asset Relief Program funds shall be
used to save homes, save small businesses, help the municipal
bond market, make credit more widely available, and provide
additional resources for the Special Inspector General for the
Troubled Asset Relief Program, the Congressional Oversight
Panel, and the Government Accountability Office for vigorous
audit and evaluation of all expenditures and commitments made
under the Troubled Asset Relief Program, by the amounts
provided it is deficit-neutral over the total of 2009-2014 and
2009-2019.
Sec. 223. Prohibiting undeserved contracting performance
bonuses
The Senate-passed resolution allows the Chairman of the
Budget Committee to revise the levels and limits in the
resolution for one or more pieces of legislation that would
prohibit federally funded bonuses awarded to contractors and
government executives responsible for over budget projects and
programs that fail to meet basic performance requirements,
provided it is deficit-neutral over the total of 2009-2014 and
2009-2019.
Sec. 224. Eliminating wasteful programs
The Senate-passed resolution includes a reserve fund
allowing the Chairman of the Budget Committee to revise the
levels in the resolution for legislation that would achieve
savings by eliminating wasteful, inefficient, and duplicative
programs, provided that such legislation is deficit-neutral
over the total of 2009-2014 and 2009-2019.
Sec. 225. Violence Against Women Act and the Family
Violence Prevention and Service Act
The Senate-passed resolution includes a reserve fund
allowing the Chairman of the Budget Committee to revise the
levels in the resolution for legislation that would provide
resources for programs administered through the Violence
Against Women Act and the Family Violence Prevention and
Services Act, and other related programs, provided that such
legislation is deficit-neutral over the total of 2009-2014 and
2009-2019.
Sec. 226. Ending abusive no-bid contracts
The Senate resolution allows the Chairman of the Budget
Committee to revise the levels in the resolution for one or
more pieces of legislation that would end abusive no-bid
contracts by requiring all Federal contracts over $25,000 to be
competitively bid provided the legislation is deficit-neutral
over the total of 2009-2014 and 2009-2019.
Sec. 227. Home visitation programs
The Senate-passed resolution allows the Chairman of the
Budget Committee to revise the levels in the resolution for one
or more pieces of legislation that would provide funds to
States to establish or expand quality programs of early
childhood home visitation that increase school readiness, child
abuse and neglect prevention, and early identification of
developmental and health delays, provided it is deficit-neutral
over the total of 2009-2014 and 2009-2019.
Sec. 228. 21st Century learning centers
The Senate-passed resolution allows the Chairman of the
Budget Committee to revise the levels and limits in the
resolution for one or more pieces of legislation that would
increase funding for the 21st Century Community Learning
Centers program, provided that such legislation is deficit-
neutral over the total of 2009-2014 and 2009-2019.
Sec. 229. Extending top tax brackets for individuals with
majority small business income
The Senate-passed resolution includes a reserve fund
allowing the Chairman of the Budget Committee to revise the
levels in the resolution for legislation that would extend the
top tax brackets of 33 percent and 35 percent for individuals
receiving more than 50 percent of income from small business,
provided such legislation is deficit-neutral over the total of
2009-2014 and 2009-2019.
Sec. 230. Pension coverage for employees of Department of
Energy laboratories and environmental cleanup sites
The Senate-passed resolution includes a deficit-neutral
reserve fund allowing the Chairman of the Budget Committee to
revise the levels in the resolution for legislation that would
authorize funding to cover the full cost of pension obligations
for current and past employees of laboratories and
environmental cleanup sites under the jurisdiction of the
Department of Energy (including benefits paid to security
personnel) in a manner that does not impact the missions of
those laboratories and environmental cleanup sites.
Sec. 231. Resources for firefighters and fire departments
The Senate resolution allows the Chairman of the Budget
Committee to revise the levels and limits in the resolution for
one or more pieces of legislation that provide firefighters and
fire departments with critical resources under FEMA Assistance
to Firefighters Grant and Staffing for Adequate Fire and
Emergency Response Firefighters Grant programs, provided it is
deficit-neutral over the total of 2009-2014 and 2009-2019.
Sec. 232. Increased use of recovery audits
The Senate-passed resolution includes a reserve fund
allowing the Chairman of the Budget Committee to revise the
levels in the resolution for legislation that would achieve
savings by requiring agencies to increase their use of recovery
audits and use those savings to reduce the deficit.
Sec. 233. Repealing 1993 income tax on Social Security
benefits
The Senate-passed resolution includes a reserve fund
allowing the Chairman of the Budget Committee to revise the
levels in the resolution for legislation that would repeal the
1993 increase in the income tax on social security benefits,
provided such legislation is deficit-neutral over the total of
2009-2014 and 2009-2019.
Sec. 234. Increasing the amount of capital losses allowed
to individuals
The Senate-passed resolution includes a reserve fund
allowing the Chairman of the Budget Committee to revise the
levels in the resolution for legislation that would increase
the amount of capital losses allowed to individuals, provided
such legislation is deficit-neutral over the total of 2009-2014
and 2009-2019.
Sec. 235. Foster care financing reform
The Senate-passed resolution allows the Chairman of the
Budget Committee to revise the levels in the resolution for one
or more pieces of legislation that would--
(1) change the Federal foster care payment system;
(2) promote and improve family support, family
preservation and time-limited family unification
services;
(3) provide for subsidies and support programs that
are available to support the needs of the children
prior to removal, during removal, and post placement;
(4) promote innovation and best practice at the State
level; and
(5) guarantee that public funds are used to
effectively meet the needs of children who have been
abused or neglected

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

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

--provided that such legislation would not increase the deficit
over either the period of the total of 2009 through 2014 or the
period of the total of 2009 through 2019.
Sec. 247. Increasing the estate tax exemption and lowering
the maximum estate tax rate
The Senate-passed resolution includes a reserve fund
allowing the Chairman of the Budget Committee to revise the
levels in the resolution for legislation that would establish
the estate tax exemption at $5 million, indexed for inflation,
set the maximum estate tax rate at 35 percent, and provide for
reunification of the estate and gift credits and the
portability of exemption between spouses, provided such
legislation is deficit-neutral over the total of 2009-2014 and
2009-2019.
Sec. 248. Point of order against legislation that provides
additional relief for the estate tax beyond the
levels assumed in the budget resolution unless an
equal amount of additional tax relief is provided
to middle class taxpayers
The Senate-passed resolution included a point of order in
the Senate against legislation that would provide additional
relief for the estate tax beyond the levels assumed in the
budget resolution of $7 million per married couple and a
graduated rate ending at a rate less than 45 percent unless an
equal amount of tax relief is provided to taxpayers earning
less than $100,000 per year and such relief is in addition to
the amounts assumed in the budget resolution. The point of
order could be waived with 60 votes.
Sec. 249. Increase FDIC and NCUA borrowing authority
The Senate-passed resolution allows the Chairman of the
Budget Committee to revise the levels in the resolution for one
or more pieces of legislation that would increase the borrowing
authority of the Federal Deposit Insurance Corporation and the
National Credit Union Administration, provided it is deficit-
neutral over the total of 2009-2019.
Sec. 250. Innovative Loan Guarantee Program at the
Department of Energy
The Senate-passed resolution allows the Chairman of the
Budget Committee to revise the levels in the resolution for
legislation that would authorize an additional $50,000,000,000
for use to provide loan guarantees for eligible projects under
title XVII of the Energy Policy Act of 2005 (42 U.S.C. 16511 et
seq.), provided that such legislation would not increase the
deficit over either the period of the total of 2009 through
2014 or the period of the total of 2009 through 2019.
Sec. 251. Nuclear research and development
The Senate-passed resolution allows the Chairman of the
Budget Committee to revise the levels in the resolution for
legislation that would authorize nuclear research and
development activities, including the Generation IV program,
the Advanced Fuel Cycle Initiative, and the Light Water Reactor
Sustainability program, provided that such legislation would
not increase the deficit over either the period of the total of
2009 through 2014 or the period of the total of 2009 through
2019.
Sec. 252. 2012 completion of Food and Drug Administration
facilities
The Senate-passed resolution allows the Chairman of the
Budget Committee to revise the levels in the resolution for one
or more pieces of legislation that would provide sufficient
funding for the General Services Administration to complete
construction of the Food and Drug Administration White Oak
Campus in Silver Spring, Maryland by 2012, provided it is
deficit-neutral over the total of 2009-2014 and 2009-2019.
Sec. 253. Energy Star for Small Business Program
The Senate-passed resolution allows the Chairman of the
Budget Committee to revise the levels in the resolution for
legislation that would set aside, from amounts made available
for the Energy Star Program of the Environmental Protection
Agency, at least 2 percent for the Energy Star for Small
Business Program, provided that such legislation would not
increase the deficit over either the period of the total of
2009 through 2014 or the period of the total of 2009 through
2019.
Throughout this subtitle, the use of the word ``limits''
refers to the discretionary spending limits in the Senate.
House-passed Resolution
Sec. 301. Deficit-neutral reserve fund for health care
reform
The reserve fund supports the President's goal of
fiscally responsible health reform legislation. The reserve
fund accommodates legislation that addresses the common goals
of making affordable health coverage available to all,
improving the quality of health care, and reducing rising
health care costs, while building on and strengthening existing
public and private insurance coverage and preserving choice of
provider and plan, consistent with the pay-as-you-go principle.
As part of health care reform, the House supports
measures to ensure that payments to providers are appropriate
and equitable and are designed to encourage efficiency, higher
quality care, coordination of care, and accountability.
Sec. 302. Deficit-neutral reserve fund for college access,
affordability, and completion
The reserve fund accommodates changes in laws that will
increase assistance or benefits to college students, consistent
with the pay-as-you-go principle. This reserve fund will
provide committees maximum flexibility in finding offsets for
legislation to help more students afford and complete college.
Sec. 303. Deficit-neutral reserve fund for increasing
energy independence
The reserve fund accommodates legislation to increase
U.S. energy independence, consistent with the pay-as-you-go
principle. This reserve fund covers legislation that provides
tax incentives for or otherwise encourages the production of
renewable energy or increased energy efficiency; encourages
investment in emerging energy or vehicle technologies or carbon
capture and sequestration; limits and provides for reductions
in greenhouse gas emissions; assists businesses, industries,
states, communities, the environment, workers, or households as
the United States moves toward reducing and offsetting the
impacts of greenhouse gas emissions; or facilitates the
training of workers for these industries (``green collar
jobs'').
Sec. 304. Deficit-neutral reserve fund for America's
veterans and servicemembers
The reserve fund accommodates legislation to change
health care and benefits for veterans, servicemembers, or their
families, consistent with the pay-as-you-go principle. This
reserve fund covers legislation that enhances health care for
military personnel or veterans; maintains the affordability of
health care for military retirees or veterans; improves
disability benefits or evaluations for wounded or disabled
military personnel or veterans (including measures to expedite
the claims process); expands eligibility to permit additional
disabled military retirees to receive both disability
compensation and retired pay (concurrent receipt); or
eliminates the offset between Survivor Benefit Plan annuities
and veterans' dependency and indemnity compensation. The
reserve fund shall not accommodate legislation authorizing the
Department of Veterans Affairs (VA) to bill private insurance
companies for treatment of health conditions that are related
to veterans' military service. VA already is authorized to bill
such companies for treatment of conditions that are not
service-connected.
Sec. 305. Deficit-neutral reserve fund for certain tax
relief
The reserve fund for tax relief accommodates legislation
to reduce tax burdens on working families, businesses, States,
or communities if it complies with the pay-as-you-go principle.
This reserve fund could therefore accommodate individual tax
relief supporting working families, higher education, and
raising participation in retirement saving vehicles, among
other purposes. It could also accommodate tax relief and
investment incentives for businesses, States, or communities.
Sec. 306. Deficit-neutral reserve fund for a
9/11 health program
The reserve fund accommodates legislation that would
establish a program, including medical monitoring and
treatment, addressing the adverse health impacts linked to the
attacks of September 11, 2001, consistent with the pay-as-you-
go principle. Last year, the House and Senate included this
deficit neutral reserve fund as part of the Conference
Agreement.
Sec. 307. Deficit-neutral reserve fund for child nutrition
This reserve fund accommodates legislation to
reauthorize, expand, or improve the child nutrition programs,
including, but not limited to, the school lunch and school
breakfast programs, after-school and summer food programs, the
Special Supplemental Nutrition Program for Women, Infants, and
Children (WIC), and the child and adult care food program,
consistent with the pay-as-you-go principle.
Sec. 308. Deficit-neutral reserve fund for structural
unemployment insurance reforms
This reserve fund accommodates legislation consistent
with the pay-as-you-go principle that builds on the provisions
of the American Recovery and Reinvestment Act and continues
modernizing the unemployment system to better meet the
challenges of the 21st century workforce, in particular by
improving its response to economic downturns.
Sec. 309. Deficit-neutral reserve fund for child support
This reserve fund accommodates legislation to increase
parental support for children, including efforts to ensure that
children receive 100 percent of the child support that they are
owed and that is paid by non-custodial parents, as well as
other efforts to provide more parental support for children,
consistent with the pay-as-you-go principle.
Sec. 310. Deficit-neutral reserve fund for the Affordable
Housing Trust Fund
The reserve fund accommodates funding for the existing
Affordable Housing Trust Fund that provides grants to states,
communities, and other entities to provide or rehabilitate
housing for low-income families, consistent with the pay-as-
you-go principle. The reserve fund provides committees with
flexibility to find offsets for legislation that capitalizes
the trust fund, which is already authorized.
Sec. 311. Deficit-neutral reserve fund for home visiting
This reserve fund accommodates legislation to provide
mandatory funding for a home visiting program or programs
serving low-income mothers-to-be and low-income families,
consistent with the pay-as-you-go principle. The House
anticipates that the legislation will fund evidence-based
programs that have been tested in well-designed randomized
controlled trials and are likely to produce future budget
savings by improving child and family health and well-being.
Research studies on providing nurse home visiting services to
low-income families, for example, have documented between three
and six dollars in savings for every dollar invested in the
home visits.
Sec. 312. Deficit-neutral reserve fund for Low-income Home
Energy Assistance Program trigger
This reserve fund accommodates legislation to ensure that
the Low-income Home Energy Assistance Program (LIHEAP) responds
more quickly and efficiently to energy price increases, so long
as the legislation is consistent with the pay-as-you-go
principle.
Sec. 313. Reserve fund for the surface transportation
reauthorization
The reserve fund accommodates additional contract
authority for the reauthorization of highway construction,
highway safety and mass transit programs or other
transportation-related legislation on the condition that the
Highway Trust Fund continues to fully meet its obligations.
While the eventual funding needs for the upcoming highway and
transit bill are not yet known, the reserve fund will provide
flexibility to adjust the Transportation and Infrastructure
Committee's allocation provided that the solvency of the
Highway Trust Fund is maintained.
Sec. 314. Current policy reserve fund for Medicare
improvements
The reserve fund accommodates additional mandatory
spending to reform the Medicare physician payment system. The
reserve fund supports legislation to change incentives to
encourage efficiency and higher quality care in a way that
supports fiscal sustainability, to improve payment accuracy to
encourage efficient use of resources and ensure that primary
care receives appropriate compensation, to improve coordination
of care among all providers serving a patient in all
appropriate settings, or to hold providers accountable for
their utilization patterns and quality of care.
The reserve fund allows Medicare physician payment reform
legislation's costs to be measured against current policy, that
is assuming the payment rates in effect for physicians for 2009
will stay in effect through 2019. This assumption is consistent
with the President's budget and is based on Congressional
actions in recent years to prevent cuts in physician payments
that would otherwise be required by the Sustainable Growth Rate
(SGR) formula. However, like the President's budget, the budget
resolution does not intend this assumption as a reflection of
future policy. Instead, the assumption represents a realistic
and meaningful benchmark against which to measure the fiscal
effects of legislation reforming the Medicare physician payment
system.
After the House has adopted a measure to impose statutory
pay-as-you-go requirements, or when a bill utilizing this
reserve fund includes provisions to impose statutory pay-as-
you-go requirements, Section 401(a) of the House resolution
directs the chairman of the Budget Committee to make current
policy adjustments before evaluating the costs of the Medicare
bill for compliance with House budget rules and procedures. The
adjustments may be made only for the purposes and in the
amounts provided in this reserve fund.
The SGR formula limits how much total physician
compensation can grow every year. The SGR formula has required
payment rate cuts every year since 2002. Since 2003, Congress
has enacted legislation to prevent these rate cuts from taking
effect, one or two years at a time. Consequently, history has
shown that the current statutory baseline as it relates to
Medicare physician payments is unrealistic. Under current law,
physicians face a 21 percent cut in their Medicare payment rate
in 2010, and further cuts for several years after that. Cuts of
this magnitude could destabilize the Medicare program and
present serious access problems for Medicare beneficiaries.
Sec. 315. Current policy reserve fund for middle class tax
relief
The reserve fund allows the Chairman of the Budget
Committee to adjust the House resolution aggregates and
allocations to reflect current policy for certain provisions of
the Internal Revenue Code of 1986 for middle class tax relief.
The reserve fund supports the extension of middle class tax
relief such as the 10 percent individual income tax bracket,
marriage penalty relief, the child credit at $1,000 and partial
refundability of the credit, education incentives, other
incentives for middle class families and children, and other
reductions or adjustments to individual income tax brackets, as
well as small business tax relief.
After the House has adopted a measure to impose statutory
pay-as-you-go requirements, or when a bill utilizing this
reserve fund includes provisions to impose statutory pay-as-
you-go requirements, Section 401(a) of the House resolution
directs the chairman of the Budget Committee to make current
policy adjustments to the baseline before evaluating the costs
of the tax bill for compliance with House budget rules and
procedures. The adjustments may be made only for the purposes
and in the amounts provided in this reserve fund.
Sec. 316. Current policy reserve fund for reform of the
alternative minimum tax (AMT)
The reserve fund allows the Chairman of the Budget
Committee to adjust the resolution aggregates and allocations
to reflect current policy for the alternative minimum tax (AMT)
for one additional year. The reserve fund would support
immediate AMT relief so that tens of millions of working
families will not become subject to it in tax year 2010.
Without reform, the number of taxpayers subject to the AMT will
rise from 4 million in 2010 to 28 million in 2010, according to
the Congressional Budget Office. The House resolution would
accommodate further, deficit-neutral relief from the AMT.
After the House has adopted a measure to impose statutory
pay-as-you-go requirements, or when a bill utilizing this
reserve fund includes provisions to impose statutory pay-as-
you-go requirements, Section 401(a) of the House resolution
directs the chairman of the Budget Committee to make current
policy adjustments to the baseline before evaluating the costs
of the tax bill for compliance with House budget rules and
procedures. The adjustments may be made only for the purposes
and in the amounts provided in this reserve fund.
Sec. 317. Current policy reserve fund for reform of the
Estate and Gift Tax
The reserve fund allows the Chairman of the Budget
Committee to adjust the resolution aggregates and allocations
to reflect current policy by extending the law as in effect for
2009 for the Estate and Gift Tax. The reserve fund supports
continuation of 2009 policy so that only a minute fraction of
estates will owe tax.
After the House has adopted a measure to impose statutory
pay-as-you-go requirements, or when a bill utilizing this
reserve fund includes provisions to impose statutory pay-as-
you-go requirements, Section 401(a) of the House resolution
directs the chairman of the Budget Committee to make current
policy adjustments to the baseline before evaluating the costs
of the tax bill for compliance with House budget rules and
procedures. The adjustments may be made only for the purposes
and in the amounts provided in this reserve fund.
Conference Agreement
Title III of the conference agreement contains reserve
funds.
Subtitle A: Senate reserve funds
Subtitle A of the conference agreement contains the
following reserve funds that apply only in the Senate:
Sec. 301. Deficit-neutral reserve fund to transform
and modernize America's health care system (Secs. 201
and 220 of the Senate-passed resolution, as modified)
Sec. 302. Deficit-neutral reserve fund to invest in
clean energy and preserve the environment (Secs. 202,
213, 221, 240 and 246 of the Senate-passed resolution,
as modified)
Sec. 303. Deficit-neutral reserve fund for higher
education (Sec. 203 of the Senate-passed resolution, as
modified)
Sec. 304. Deficit-neutral reserve fund for child
nutrition and WIC (Sec. 204 of the Senate-passed
resolution)
Sec. 305. Deficit-neutral reserve fund for
investments in America's infrastructure (Secs. 205 and
206(d) of the Senate-passed resolution, as modified)
Sec. 306. Deficit-neutral reserve fund to promote
economic stabilization and growth (Sec. 206 of the
Senate-passed resolution, as modified)
Sec. 307. Deficit-neutral reserve fund for
America's veterans and wounded servicemembers (Sec. 207
of the Senate-passed resolution, as modified)
Sec. 308. Deficit-neutral reserve fund for judicial
pay and judgeships, postal retiree assistance, and
certain pension obligations (Secs. 208 and 230 of the
Senate-passed resolution, as modified)
Sec. 309. Deficit-neutral reserve fund for defense
acquisition and Federal contracting reform (Secs. 209,
223, 232 and 301(c)(2)(E) of the Senate-passed
resolution, as modified)
Sec. 310. Deficit-neutral reserve fund for
investments in our Nation's counties and schools (Sec.
210 of the Senate-passed resolution)
Sec. 311. Deficit-neutral reserve fund for the Food
and Drug Administration (Sec. 211 of the Senate-passed
resolution)
Sec. 312. Deficit-neutral reserve fund for a
comprehensive investigation into the current financial
crisis (Sec. 214 of the Senate-passed resolution)
Sec. 313. Deficit-neutral reserve fund for
increased transparency at the Federal Reserve (Sec. 215
of the Senate-passed resolution)
Sec. 314. Deficit-neutral reserve fund for 21st
Century community learning centers (Sec. 228 of the
Senate-passed resolution)
Sec. 315. Deficit-neutral reserve fund for
provision of critical resources to firefighters and
fire departments (Sec. 231 of the Senate-passed
resolution)
Sec. 316. Deficit-neutral reserve fund to promote
tax equity for States without personal income taxes,
and other selected tax relief policies (combines Sec.
238 and provisions from Sec. 206 of the Senate-passed
resolution, as modified)
Sec. 317. Deficit-neutral reserve fund to promote
individual savings and financial security (Sec. 242 of
the Senate-passed resolution)
Sec. 318. Deficit-neutral reserve fund to increase
FDIC and NCUA borrowing authority (Sec. 249 of the
Senate-passed resolution, as modified)
Sec. 319. Deficit-neutral reserve fund for
improving the well-being of children (Secs. 216, 227
and 235 of the Senate-passed resolution, as modified,
and Sec. 311 of the House-passed resolution, as
modified)
Sec. 320. Deficit-neutral reserve fund for a 9/11
health program (Sec. 306 of the House-passed
resolution, as modified)
Subtitle B: House reserve funds
Subtitle B of the conference agreement contains the
following reserve funds that apply only in the House:
Sec. 321. Deficit-neutral reserve fund for health
care reform (Sec. 301 of the House-passed resolution)
Sec. 322. Deficit-neutral reserve fund for college
access, affordability, and completion (Sec. 302 of the
House-passed resolution, as modified)
Sec. 323. Deficit-neutral reserve fund for
increasing energy independence (Sec. 303 of the House-
passed resolution)
Sec. 324. Deficit-neutral reserve fund for
America's veterans and wounded servicemembers (Sec. 304
of the House-passed resolution, as modified)
Sec. 325. Deficit-neutral reserve fund for certain
tax relief (Sec. 305 of the House-passed resolution, as
modified)
Sec. 326. Deficit-neutral reserve fund for a 9/11
health program (Sec. 306 of the House-passed
resolution)
Sec. 327. Deficit-neutral reserve fund for child
nutrition (Sec. 307 of the House-passed resolution)
Sec. 328. Deficit-neutral reserve fund for
structural unemployment insurance reforms (Sec. 308 of
the House-passed resolution)
Sec. 329. Deficit-neutral reserve fund for child
support (Sec. 309 of the House-passed resolution)
Sec. 330. Deficit-neutral reserve fund for the
Affordable Housing Trust Fund (Sec. 310 of the House-
passed resolution)
Sec. 331. Deficit-neutral reserve fund for home
visiting (Sec. 311 of the House-passed resolution, as
modified, and Sec. 227 of the Senate resolution, as
modified)
Sec. 332. Deficit-neutral reserve fund for low-
income home energy assistance program trigger (Sec. 312
of the House-passed resolution)
Sec. 333. Deficit-neutral reserve fund for county
payments legislation (Sec. 210 of the Senate-passed
resolution, as modified)
Sec. 334. Reserve fund for the surface
transportation reauthorization (Sec. 313 of the House-
passed resolution)
Each House reserve fund references the time periods in
clause 10 of rule XXI of the Rules of the House of
Representatives. This citation references the House pay-as-you-
go rule, as opposed to specific years. As long as the
legislation described in the reserve fund complies with the
House pay-as-you-go rule, the chairman may make the applicable
adjustment.
The House-passed budget resolution included current
policy adjustments in Sections 314, 315, 316, and 317. The
adjustments provided for in those reserve funds are addressed
in the conference agreement in the budget process title under
Section 421 (Adjustments for Direct Spending and Revenues).

BUDGET PROCESS

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

ACCOUNTS IDENTIFIED FOR ADVANCE APPROPRIATIONS IN THE SENATE

Labor, HHS:
Employment and Training Administration
Job Corps
Education for the Disadvantaged
School Improvement
Children and Family Services (Head Start)
Special Education
Career, Technical, and Adult Education
Financial Services and General Government: Payment to
Postal Service
Transportation, Housing and Urban Development: Tenant-
based Rental Assistance Project-based Rental Assistance
Sec. 303. Emergency legislation
The Senate-passed resolution makes technical changes in
the emergency legislation designation to provide consistent
treatment for emergency legislation with respect to enforcement
of various points of order and revisions pursuant to deficit-
neutral reserve funds.
Sec. 304. Point of order against legislation increasing
short-term deficit
The Senate-passed resolution updates the expiration date
in the point of order against legislation that increases the
short-term deficit.
Sec. 305. Point of order against appropriations legislation
that includes provisions affecting the crime
victims fund
The Senate-passed resolution includes a new 60-vote point
of order that applies to appropriations legislation containing
one or more provisions that constitute a change in a mandatory
program that affects the Crime Victims Fund, section 1402 of
the Victims of Crime Act of 1984 (42 U.S.C. 10601).
Sec. 306. Point of order against increasing revenues beyond
the levels set in the budget resolution through a
widespread tax increase on taxpayers with incomes
below $200,000 or married couples with incomes
below $250,000
The Senate-passed resolution includes a point of order in
the Senate against legislation that would cause revenues to
exceed the levels set in the budget resolution and include a
tax increase that would have widespread applicability on
taxpayers with incomes below $200,000 or married couples with
incomes below $250,000. The point of order could be waived with
60 votes.
Sec. 307. Point of order against increasing certain federal
income tax rates
The Senate-passed resolution includes a point of order in
the Senate against legislation that would increase certain
federal tax rates. The point of order could be waived with 60
votes.
Sec. 308. Point of order against legislation increasing
energy taxes on middle-income taxpayers
The Senate-passed resolution includes a point of order in
the Senate against legislation that would increase energy taxes
on middle-income taxpayers. The point of order could be waived
with 60 votes.
Sec. 309. Point of order against legislation imposing a
marriage tax penalty
The Senate-passed resolution includes a point of order in
the Senate against legislation that would result in a greater
Federal income tax liability for taxpayers filing a joint
return than if such taxpayers were unmarried and had filed
individual tax returns. The point of order could be waived with
60 votes.
Sec. 310. Point of order against legislation causing
revenues to increase above the levels set in the
budget resolution
The Senate-passed resolution includes a point of order in
the Senate against legislation that would cause revenues to be
more than the level of revenues established in the budget
resolution. The point of order could be waived with 60 votes.
Sec. 311. Point of order against increasing taxes while
unemployment rate is above 5.8 percent
The Senate-passed resolution includes a point of order in
the Senate against considering legislation that would increase
taxes if the unemployment rate exceeds 5.8 percent. The point
of order could be waived with 60 votes.
Sec. 312. Point of order against legislation that causes
significant job loss
The Senate-passed resolution includes a point of order in
the Senate against legislation that would cause revenues to be
more than the level of revenues set forth for the applicable
years in the resolution or would cause significant job loss in
manufacturing or coal dependent regions of the United States.
Sec. 313. Point of order against legislation that would
permit the Secretary of Veterans Affairs to recover
from a private health insurer of a disabled veteran
amounts paid for treatment of such disability
The Senate-passed resolution includes a point of order in
the Senate against legislation that would permit the Secretary
of Veterans Affairs to recover from a private health insurer of
a disabled veteran amounts paid for treatment of such
disability.
Sec. 314. Point of order against legislation weakening
terrorism laws
The Senate-passed resolution includes a point of order in
the Senate against legislation that would weaken or eliminate
anti-terrorism tools or investigative methods.
Sec. 315. Restrictions on unfunded mandates on state and
local governments
This section of the Senate-passed resolution increases
from a simple majority to three-fifths of all members duly
sworn and chosen the number of Senators necessary to waive a
point of order under section 424(a)(1) of the Congressional
Budget Act.
Sec. 316. Point of order on legislation that eliminates the
ability of Americans to keep their health plan or
their choice of doctor
The Senate-passed resolution includes a point of order in
the Senate against legislation that eliminates the ability of
Americans to keep their health plan or their choice of doctor
as determined by the Congressional Budget Office. The point of
order could be waived with 60 votes.
Subtitle B--Other Provisions
Sec. 321. Oversight of government performance
The Senate-passed resolution continues the provision
instructing Committees of the Senate to review programs within
their jurisdiction to root out waste, fraud, and abuse in
program spending, giving particular scrutiny to issues raised
by Government Accountability Office reports, and include
recommendations for improved governmental performance in their
annual views and estimates reports required under section
301(d) of the Congressional Budget Act of 1974 to the Senate
Committee on the Budget.
Sec. 322. Budgetary treatment of certain discretionary
administrative expenses
The Senate-passed resolution continues the provision
requiring that all budget resolutions include the
Administrative Expenses of the Social Security Administration
and of the Postal Service in the 302(a) allocations of the
Appropriations Committee.
Sec. 323. Application and effect of changes in allocations
and aggregates
The Senate-passed resolution details the adjustment
procedures required to accommodate legislation provided for in
this resolution, and requires adjustments made to be printed in
the Congressional Record. For purposes of enforcement, the
levels resulting from adjustments made pursuant to this
resolution will have the same effect as if adopted in the
levels of Title I of this resolution. The Committee on the
Budget determines the budgetary levels and estimates required
to enforce budgetary points of order, including those pursuant
to this resolution and the Congressional Budget Act of 1974.
Sec. 324. Adjustments to reflect changes in concepts and
definitions
The Senate-passed resolution allows the Chairman of the
Committee on the Budget to adjust levels in this resolution
upon the enactment of legislation that changes concepts or
definitions.
Secs. 325 and 326. Debt disclosure
These sections reflect an amendment adopted in the
Committee on the Budget regarding the levels of debt assumed in
the budget resolution and to require budget resolutions to
contain a debt disclosure section.
Sec. 327. Exercise of rulemaking powers
This section of the Senate-passed resolution recognizes
that the provisions of this resolution are adopted pursuant to
the rulemaking power of the Senate, and also recognizes the
Constitutional right of the Senate to change those rules as
they apply to the Senate.
House-passed Resolution
Sec. 401. Adjustments for Direct Spending and Revenues
After the House has acted upon a measure to impose
statutory pay-as-you-go requirements, or when a bill listed in
a current policy reserve fund includes provisions to impose
statutory pay-as-you-go requirements, subsection (a) of this
section of the House resolution directs the chairman of the
Budget Committee to make current policy adjustments to the
baseline before evaluating the costs of certain measures for
compliance with House budget rules and procedures. The
adjustments may be made only for the purposes and in the
amounts provided in a current policy reserve fund. Four current
policy reserve funds appear in title III of the House
resolution as sections 314, 315, 316, and 317.
Subsection (b) allows the chairman of the House Budget
Committee to adjust the 302(a) allocation to the Appropriations
Committee if changes to the Low-Income Home Energy Assistance
Program (reflected in the House resolution's mandatory spending
totals) are not funded in an authorization bill and are
included instead in an appropriations measure.
Subsection (c) updates and reinstates a provision of the
Budget Enforcement Act of 1990. The chairman of the House
Budget Committee is directed to exempt from the calculation of
the cost of any measure any budgetary effects of legislative
provisions that affect the full funding of the federal deposit
insurance guarantee.
Sec. 402. Adjustments to Discretionary Spending Limits
Section 402 of the House resolution provides for specific
allocation adjustments for the Committee on Appropriations when
the Committee reports legislation that includes increased
appropriations for the following program integrity initiatives:
(1) program integrity initiatives at the Social Security
Administration; (2) Internal Revenue Service tax compliance;
(3) the health care fraud and abuse control program at the
Department of Health and Human Services; and (4) unemployment
insurance in-person reemployment and eligibility assessments
and improper payment reviews. In addition, a new program
integrity adjustment has been added this year to create the
Partnership Fund for Program Integrity at the Office of
Management and Budget for program integrity pilot initiatives
across federal agencies. This adjustment is intended to develop
new ideas to promote administrative efficiency gains and
reductions in erroneous payments.
The adjustments under this section are primarily intended
to provide additional administrative funding for current
program integrity activities to eliminate errors or fraud in
the operation of a number of federal programs and to promote
compliance with federal tax laws. For example, the adjustment
for unemployment compensation programs is provided to increase
limited administrative funding for current program integrity
activities, and not to finance other proposals that would
adversely affect workers who have received unemployment
benefits. The section outlines procedures for these allocation
adjustments.
This section also incorporates a procedure whereby
provisions or measures reported by the Committee on
Appropriations will be exempt in certain circumstances from
compliance with titles III and IV of the Congressional Budget
Act of 1974 and the budget resolution. Such an exemption
applies if: (1) the Committee on Appropriations determines and
designates that amounts appropriated are necessary for overseas
deployments and related activities; or (2) the Committee on
Appropriations provides discretionary appropriations and
designates those amounts as necessary to meet emergency needs.
Sec. 403. Advance Appropriations
Section 403 of the House resolution limits the amount and
type of advance appropriations for fiscal years 2011 and 2012.
Under this section, advance appropriations for fiscal year 2011
are restricted to $28.852 billion for the programs, projects,
activities, or accounts listed below. Advances for 2012 are
listed separately. The section defines advance appropriations
as any new discretionary budget authority provided in a bill or
joint resolution making general or continuing appropriations
for fiscal year 2010 that first becomes available for any
fiscal year after 2010.
Advance Appropriations for Fiscal Year 2011:
Employment and Training Administration
Office of Job Corps
Education for the Disadvantaged
School Improvement Programs
Special Education
Career, Technical and Adult Education
Payment to Postal Service
Tenant-based Rental Assistance
Project-based Rental Assistance
Advance Appropriations for Fiscal Year 2012:
The Corporation for Public Broadcasting
Sec. 404. Oversight of Government Performance
Section 404 of the House resolution encourages all
committees of the House to conduct rigorous oversight hearings
to root out waste, fraud, and abuse in federal programs, with
particular attention to issues raised by the Office of the
Inspector General or the Government Accountability Office.
Based on these oversight efforts, such recommendations should
be included in the views and estimates reports submitted to the
Budget Committee under section 301(d) of the Congressional
Budget Act of 1974.
Sec. 405. Budgetary Treatment of Certain Discretionary
Administrative Expenses
Section 405 of the House resolution provides that
administrative expenses of the Social Security Administration
and of the Postal Service shall be part of the annual
appropriations process by including those expenses in the
allocation to the Committee on Appropriations pursuant to
section 302 of the Congressional Budget Act.
Sec. 406. Application and Effect of Changes in Allocations
and Aggregates
Section 406 of the House resolution details the
allocation and aggregate adjustment procedures that are
required to accommodate legislation for the reserve funds and
program integrity initiatives in the House resolution. This
section provides that the adjustments shall apply while the
legislation is under consideration and take effect upon
enactment of the legislation. In addition, the section requires
the adjustments to be printed in the Congressional Record.
The section also notes that, for purposes of enforcement,
aggregate and allocation levels resulting from adjustments made
pursuant to the House resolution will have the same effect as
if adopted in the original levels of Title I of this budget
resolution. This section also provides that the Committee on
the Budget shall determine the budgetary levels and estimates
which are required to enforce points of order under the
Congressional Budget Act.
Sec. 407. Adjustments to Reflect Changes in Concepts and
Definitions
Section 407 of the House resolution requires the chairman
of the Committee on the Budget to adjust levels and allocations
in the budget resolution upon enactment of legislation that
changes concepts or definitions.
Sec. 408. Exercise of Rulemaking Powers
Section 408 of the House resolution provides that, once
adopted, the provisions of the budget resolution are
incorporated into the rules of the House of Representatives and
shall supersede inconsistent rules. The section recognizes the
constitutional right of the House of Representatives to change
those rules at any time.
Conference Agreement
Title IV contains the following budget process and
enforcement provisions:
Subtitle A--Senate Provisions
The FY2008 and FY2009 budget resolutions included many
important enforcement provisions which remain in effect in the
Senate. These include:
2008 Budget Resolution (S. Con. Res. 21)
The Senate pay-as-you-go point of order
(Sec. 201);
The 60-vote point of order against
reconciliation increasing the deficit (Sec 202); and
Continued 60-vote enforcement of
budgetary points of order in the Senate (Sec. 205).
2009 Budget Resolution (S. Con. Res. 70)
The 60-vote point of order against
legislation increasing long-term deficits (Sec. 311);
and
The 60-vote point of order against
provisions of appropriations legislation that
constitute changes in mandatory programs (Sec. 314).
Part I--Budget Enforcement
Sec. 401. Discretionary spending limits, program integrity
initiatives, and other adjustments (Sec. 301 of the
Senate-passed resolution, as modified)
Sec. 402. Point of order against advance appropriations
(Sec. 302 of the Senate-passed resolution, as
modified)

ACCOUNTS IDENTIFIED FOR ADVANCE APPROPRIATIONS IN THE SENATE

POLICY

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

SENSE OF THE SENATE, HOUSE AND CONGRESS

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

ECONOMIC ASSUMPTIONS

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

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

ALLOCATIONS

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

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

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

RULE XXVIII OF THE RULES OF THE HOUSE OF REPRESENTATIVES

The adoption of this conference agreement by the two
houses would result in the engrossment of a House joint
resolution changing the statutory limit on the public debt
pursuant to clause 3 of rule XXVIII of the Rules of the House
of Representatives. The rule requires a joint resolution in the
following form:

Resolved, by the Senate and the House of Representatives
of the United States in Congress assembled, that subsection (b)
of section 3101 of title 31, United States Code, is amended by
striking out the dollar limitation contained in such subsection
and inserting in lieu thereof $13,029,000,000,000.

Legislative jurisdiction over the public debt remains
with the Finance Committee in the Senate and the Committee on
Ways and Means in the House.
John M. Spratt, Jr.,
Rosa L. DeLauro,
Allen Boyd,
Managers on the Part of the House.

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