[Senate Report 112-79]
[From the U.S. Government Publishing Office]


                                                       Calendar No. 171
112th Congress                                                   Report
                                 SENATE
 1st Session                                                     112-79

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



 
  FINANCIAL SERVICES AND GENERAL GOVERNMENT APPROPRIATIONS BILL, 2012

                                _______
                                

               September 15, 2011.--Ordered to be printed

                                _______
                                

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

                                 REPORT

                         [To accompany S. 1573]

    The Committee on Appropriations reports the bill (S. 1573) 
making appropriations for financial services and general 
government for the fiscal year ending September 30, 2012, and 
for other purposes, reports favorably thereon and recommends 
that the bill do pass.



Amounts of new budget (obligational) authority for fiscal year 2012

Total of bill as reported to the Senate................. $44,640,384,000
Amount of 2011 appropriations...........................  44,688,058,000
Amount of 2012 budget estimate..........................  48,726,741,000
Bill as recommended to Senate compared to--
    2011 appropriations.................................     -47,674,000
    2012 budget estimate................................  -4,086,357,000


                                CONTENTS

                              ----------                              
                                                                   Page
Overview and Summary of Bill.....................................     5
Program, Project, and Activity...................................     5
Reprogramming Guidelines.........................................     5
Relationship With Budget Offices.................................     6
Congressional Budget Justifications..............................     7
Agency Reports...................................................     7
Title I: Department of the Treasury:
    Departmental Offices.........................................     8
        Department-wide Systems and Capital Investments Programs.    12
        Office of Inspector General..............................    12
        Treasury Inspector General for Tax Administration........    13
        Special Inspector General for the Troubled Asset Relief 
          Program................................................    15
    Financial Crimes Enforcement Network.........................    15
    Treasury Forfeiture Fund.....................................    17
    Financial Management Service.................................    17
    Alcohol and Tobacco Tax and Trade Bureau.....................    18
    United States Mint...........................................    19
    Bureau of the Public Debt....................................    19
    Community Development Financial Institutions Fund............    20
    Bureau of Engraving and Printing.............................    21
    Internal Revenue Service.....................................    22
        Taxpayer Services........................................    23
        Enforcement..............................................    27
        Operations Support.......................................    28
        Business Systems Modernization...........................    29
        Health Insurance Tax Credit Administration...............    31
        Administrative Provisions--Internal Revenue Service......    31
    Administrative Provisions--Department of the Treasury........    31
Title II: Executive Office of the President and Funds 
  Appropriated to the President:
    Compensation of the President................................    33
    The White House..............................................    33
    Executive Residence at the White House.......................    34
    White House Repair and Restoration...........................    34
    Council of Economic Advisers.................................    34
    National Security Council and Homeland Security Council......    35
    Office of Administration.....................................    35
    Office of Management and Budget..............................    36
    Government-wide Management Councils..........................    37
    Office of National Drug Control Policy.......................    37
    Funds Appropriated to the President:
        High Intensity Drug Trafficking Areas....................    39
        Other Federal Drug Control Programs......................    39
    Unanticipated Needs..........................................    41
    Partnership Fund for Program Integrity Innovation............    41
    Integrated, Efficient, and Effective Uses of Information 
      Technology.................................................    42
    Special Assistance to the President..........................    43
    Official Residence of the Vice President.....................    43
    Administrative Provisions--Executive Office of the President 
      and Funds Appropriated to the President....................    44
Title III: The Judiciary:
    Supreme Court of the United States...........................    45
    Care of the Building and Grounds.............................    46
    United States Court of Appeals for the Federal Circuit.......    46
    United States Court of International Trade...................    47
    Courts of Appeals, District Courts, and Other Judicial 
      Services...................................................    47
    Vaccine Injury Compensation Trust Fund.......................    48
    Defender Services............................................    49
    Fees of Jurors and Commissioners.............................    49
    Court Security...............................................    50
    Administrative Office of the United States Courts............    50
    Federal Judicial Center......................................    51
    Judicial Retirement Funds....................................    51
    United States Sentencing Commission..........................    52
    Administrative Provisions--The Judiciary.....................    52
Title IV--District of Columbia:
    Federal Funds:
        Federal Payment for Resident Tuition Support.............    53
        Federal Payment for Emergency Planning and Security Costs 
          in the District of Columbia............................    54
        Federal Payment to the District of Columbia Courts.......    55
        Federal Payment for Defender Services in District of 
          Columbia Courts........................................    56
        Federal Payment to the Court Services and Offender 
          Supervision Agency for the District of Columbia........    57
        Federal Payment to the Public Defender Service for the 
          District of Columbia...................................    58
        Federal Payment to the District of Columbia Water and 
          Sewer Authority........................................    59
        Federal Payment to the Criminal Justice Coordinating 
          Council................................................    59
        Federal Payment for Judicial Commissions.................    60
        Federal Payment for School Improvement...................    61
        Federal Payment for the D.C. National Guard..............    63
        Federal Payment for Housing for the Homeless.............    64
        Federal Payment for Redevelopment of the St. Elizabeths 
          Hospital Campus........................................    64
        Federal Payment for HIV/AIDS Prevention..................    65
        Federal Payment for D.C. Commission on the Arts and 
          Humanities Grants......................................    65
    District of Columbia Funds...................................    65
Title V--Independent Agencies:
    Administrative Conference of the United States...............    67
    Christopher Columbus Fellowship Foundation...................    67
    Civilian Property Realignment Board..........................    68
    Commodity Futures Trading Commission.........................    68
    Consumer Product Safety Commission...........................    70
    Election Assistance Commission...............................    73
    Federal Communications Commission............................    74
    Federal Deposit Insurance Corporation: Office of Inspector 
      General....................................................    75
    Federal Election Commission..................................    75
    Federal Labor Relations Authority............................    76
    Federal Trade Commission.....................................    76
    General Services Administration..............................    79
    Harry S Truman Scholarship Foundation........................    90
    Merit Systems Protection Board...............................    91
    Morris K. Udall and Stewart L. Udall Foundation..............    91
    National Archives and Records Administration.................    92
    National Credit Union Administration.........................    96
    Office of Government Ethics..................................    98
    Office of Personnel Management...............................    99
    Office of Special Counsel....................................   104
    Postal Regulatory Commission.................................   105
    Privacy and Civil Liberties Oversight Board..................   106
    Recovery Accountability and Transparency Board...............   107
    Securities and Exchange Commission...........................   108
    Selective Service System.....................................   111
    Small Business Administration................................   112
    United States Postal Service.................................   116
        Office of Inspector General..............................   119
    United States Tax Court......................................   120
Title VI--General Provisions--This Act...........................   122
Title VII--General Provisions--Government-wide...................   124
Title VIII--General Provisions--District of Columbia.............   128
Compliance With Paragraph 7, Rule XVI of the Standing Rules of 
  the Sen- 
  ate............................................................   130
Compliance With Paragraph 7(c), Rule XXVI of the Standing Rules 
  of the Senate..................................................   131
Compliance With Paragraph 12, Rule XXVI of the Standing Rules of 
  the Senate.....................................................   131
Budgetary Impact of Bill.........................................   141
Comparative Statement of New Budget Authority....................   142

                    OVERVIEW AND SUMMARY OF THE BILL

    The Financial Services and General Government 
appropriations bill provides funding for the Department of the 
Treasury, including the Internal Revenue Service; the Executive 
Office of the President; the Judiciary; the District of 
Columbia; and more than two dozen independent Federal agencies.
    The Committee recommends $44,640,384,000 in discretionary 
and mandatory appropriations. This represents a decrease of 
$47,674,000 below the fiscal year 2011 enacted level, and a 
decrease of $4,086,357,000 below the budget request. Of the 
total, $21,898,300,000 is provided in discretionary 
appropriations, including $167,300,000 for the Small Business 
Administration Disaster Loans Program Account designated by 
Congress as disaster relief pursuant to Public Law 111-25. This 
discretionary amount is $4,092,357,000 below the budget request 
of $25,990,657,000. Mandatory appropriations total 
$22,742,084,000. The Committee has made difficult but necessary 
decisions to craft a bill that is within strict fiscal 
limitations.

                     PROGRAM, PROJECT, AND ACTIVITY

    During fiscal year 2012, for the purposes of the Balanced 
Budget and Emergency Deficit Control Act of 1985 (Public Law 
99-177), as amended, with respect to appropriations contained 
in the accompanying bill, the terms ``program, project, and 
activity'' [PPA] shall mean any item for which a dollar amount 
is contained in appropriations acts (including joint 
resolutions providing continuing appropriations) or 
accompanying reports of the House and Senate Committees on 
Appropriations, or accompanying conference reports and joint 
explanatory statements of the committee of conference.

                        REPROGRAMMING GUIDELINES

    The Committee includes a provision (sec. 608) establishing 
the authority of agencies to reprogram funds and the limitation 
on that authority. The provision specifically requires the 
advance approval of the House and Senate Committees on 
Appropriations of any proposal to reprogram funds that: (1) 
creates a new program; (2) eliminates a program, project, or 
activity [PPA]; (3) increases funds or personnel for any PPA 
for which funds have been denied or restricted by the Congress; 
(4) proposes to redirect funds that were directed in such 
reports for a specific activity to a different purpose; (5) 
augments an existing PPA in excess of $5,000,000 or 10 percent, 
whichever is less; (6) reduces an existing PPA by $5,000,000 or 
10 percent, whichever is less; or (7) creates, reorganizes, or 
restructures offices differently than the congressional budget 
justifications or the table at the end of the Committee report, 
whichever is more detailed.
    The Committee retains the requirement that each agency 
submit an operating plan to the House and Senate Committees on 
Appropriations not later than 60 days after enactment of this 
act to establish the baseline for application of reprogramming 
and transfer authorities provided in this act. Specifically, 
each agency should provide a table for each appropriation with 
columns displaying the budget request; adjustments made by 
Congress; adjustments for rescissions, if appropriate; and the 
fiscal year enacted level. The table shall delineate the 
appropriation both by object class and by PPA. The report must 
also identify items of special congressional interest.
    The Committee expects the agencies and bureaus to submit 
reprogramming requests in a timely manner and to provide a 
thorough explanation of the proposed reallocations, including a 
detailed justification of increases and reductions and the 
specific impact the proposed changes will have on the budget 
request for the following fiscal year. Except in emergency 
situations, reprogramming requests should be submitted no later 
than June 30.
    The Committee expects each agency to manage its programs 
and activities within the amounts appropriated by Congress. The 
Committee reminds agencies that reprogramming requests should 
be submitted only in the case of an unforeseeable emergency or 
a situation that could not have been anticipated when 
formulating the budget request for the current fiscal year. 
Further, the Committee notes that when a Department or agency 
submits a reprogramming or transfer request to the Committees 
on Appropriations and does not receive identical responses from 
the House and the Senate, it is the responsibility of the 
Department or agency to reconcile the House and the Senate 
differences before proceeding, and if reconciliation is not 
possible, to consider the request to reprogram funds 
unapproved.

                    RELATIONSHIP WITH BUDGET OFFICES

    Through the years, the Committee has channeled most of its 
inquiries and requests for information and assistance through 
the budget offices of the various departments, agencies, 
offices, and commissions. The Committee has often pointed to 
the natural affinity and relationship between the budget 
offices and the Committee which makes such a relationship 
workable. The Committee reiterates its longstanding position 
that while the Committee reserves the right to call upon any 
office or officer in the departments, agencies, and 
commissions, the primary conjunction between the Committee and 
these entities must be through the budget offices. To help 
ensure the Committee's ability to perform its responsibilities, 
the Committee insists on having direct, unobstructed, and 
timely access to the budget offices and expects to be able to 
receive forthright and complete responses from those offices 
and their employees.
    The Committee has encountered growing difficulties in 
securing timely agency compliance with mandated reporting 
requirements and has experienced several situations in which 
deadlines for submission of reports were disregarded entirely. 
The Committee expects and directs all agencies from which 
reports are required to allow sufficient time to secure any 
necessary internal and external clearances of reports in order 
to satisfy congressional deadlines. The Committee strongly 
urges agencies to alert the Committee as far as possible in 
advance of any expected slippage in meeting a report delivery 
due date.

                  CONGRESSIONAL BUDGET JUSTIFICATIONS

    Budget justifications are prepared not for the use of the 
agency, but instead are the primary tool used by the House and 
Senate Committees on Appropriations to evaluate the resource 
requirements and fiscal needs of agencies. The Committee is 
aware that the format and presentation of budget materials is 
largely left to the agency within presentation objectives set 
forth by OMB. In fact, OMB Circular A-11, part 6 specifically 
states that the ``agency should consult with your congressional 
committees beforehand to ensure their awareness of your plans 
to modify the format of agency budget documents.'' The 
Committee expects all the budget justifications to adhere to 
this directive and provide the data needed to make appropriate 
and meaningful funding decisions.
    The Committee directs that justifications submitted with 
the fiscal year 2013 budget requests by agencies funded under 
this act must contain the customary level of detailed data and 
explanatory statements to support the appropriations requests 
at the level of detail contained in the funding table included 
at the end of the report. Among other items, agencies shall 
provide a detailed discussion of proposed new initiatives, 
proposed changes in the agency's financial plan from prior year 
enactment, and detailed data on all programs and comprehensive 
information on any office or agency restructurings. At a 
minimum, each agency must also provide adequate justification 
for funding and staffing changes for each individual office and 
materials that compare programs, projects, and activities that 
are proposed for fiscal year 2013 to the fiscal year 2012 
enacted level.
    The Committee is aware that the analytical materials 
required for review by the Committee are unique to each agency 
in this act. Therefore, the Committee expects that each agency 
will coordinate with the House and Senate Committees on 
Appropriations in advance on its planned presentation for its 
budget justification materials in support of the fiscal year 
2013 budget request.

                             AGENCY REPORTS

    Hereafter, as a measure to reduce costs and conserve paper, 
agencies funded by this act that currently provide separate 
copies of periodic reports (such as Performance and 
Accountability Reports) and correspondence to the chairs of the 
House and Senate Appropriations Committees and Subcommittees on 
Financial Services and General Government, and also to the 
ranking members of the committees and subcommittees, should 
send only one copy jointly addressed to the chairs of the 
Committee and subcommittee and one copy jointly addressed to 
the ranking members of the Committee and subcommittee (separate 
copies should be sent to the House and the Senate). This will 
reduce by one-half (from eight to four) the copies of periodic 
reports agencies send to the committees.

                                TITLE I

                       DEPARTMENT OF THE TREASURY

                          Departmental Offices

                         salaries and expenses

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2011....................................    $306,388,000
Budget estimate, 2012...................................     324,889,000
Committee recommendation................................     306,388,000

                          PROGRAM DESCRIPTION

    The Departmental Offices consist of the Office of the 
Secretary and Deputy Secretary, the Office of International 
Affairs, the Office of Domestic Finance, the Office of 
Terrorism and Financial Intelligence, the Office of Tax Policy, 
the Office of Economic Policy, the Office of the General 
Counsel, the Office of Legislative Affairs, the Office of 
Public Affairs, the Office of the Treasurer, and the Office of 
Management. The Secretary of the Treasury has the primary role 
in formulating and managing the domestic and international tax 
and financial policies of the Federal Government. The 
Secretary's responsibilities funded by the Salaries and 
Expenses appropriation include: recommending and implementing 
U.S. domestic and international economic and tax policy; 
formulating fiscal policy; governing the fiscal operations of 
the Government; executing the Nation's financial sanction 
policies; disrupting and dismantling terrorist financial 
infrastructure; protecting the United States and the 
international financial system from terrorist financing, money 
laundering, and other financial crimes; managing the public 
debt; managing international development policy; representing 
the United States on international monetary, trade, and 
investment issues; overseeing Department of the Treasury 
overseas operations; and directing the administrative 
operations of the Department of the Treasury. The majority of 
the Salaries and Expenses appropriation provides resources for 
policy formulation and implementation in the areas of domestic 
and international finance, terrorist financing and financial 
crimes, tax, economic, trade, financial operations and general 
fiscal policy. This appropriation also provides resources to 
support the Secretary, policy components, and departmental 
administrative policies in financial and personnel management, 
procurement operations, and information systems and 
telecommunications.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $306,388,000 for the Salaries and 
Expenses appropriation of the Departmental Offices account of 
the Department of the Treasury for fiscal year 2012. This 
amount is $18,501,000 below the budget request and the same as 
the fiscal year 2011 enacted level. The funding recommendations 
are made based on information included in the budget 
justification. The Committee recommends that the budget 
activity previously named ``economic policies and programs'' be 
renamed ``international affairs and economic policy'' and the 
budget activity previously named ``financial policies and 
programs'' be renamed ``domestic finance and tax policy'' as 
proposed in the budget request.
    The Committee directs the Department to prioritize 
resources within the Departmental Offices account for the 
Office of Terrorism and Financial Intelligence in order to 
support safeguarding financial systems against illicit use and 
combating rogue nations, terrorist facilitators, money 
launderers, proliferators of weapons of mass destruction, and 
other national security threats. The Committee also notes the 
importance of the Office of Domestic Finance and the Office of 
Tax Policy in developing and implementing policies for 
stabilizing the economy and creating jobs. The Committee 
supports the Department in expanding the capacity of these 
offices.
    The Committee makes the following findings:
    Office of Financial Education (Domestic Finance and Tax 
Policy).--The Committee is concerned about the low level of 
literacy and numeracy skills among the adult population of the 
United States, as one in seven adults do not have basic 
literacy skills to succeed in all but the most rudimentary 
literacy tasks. The Department's Office of Financial Education 
administers the National Financial Literacy Challenge and 
develops strategies to combat predatory lending. The Office of 
Financial Education also coordinates the efforts of the 
Financial Literacy and Education Commission, a group chaired by 
the Secretary of the Treasury and composed of representatives 
from 20 Federal departments, agencies, and commissions. The 
Commission works to improve financial literacy and education 
for people throughout the United States. The Committee 
encourages the Department to explore the degree to which 
current financial literacy programs benefit those individuals 
with less than basic literacy skills and to focus resources on 
financial education efforts, including to support the revision 
of the national strategy on financial literacy and the 
development of measurable goals and objectives for the 
Financial Literacy and Education Commission. Finally, the 
Committee urges the Department to explore opportunities to work 
with community-based adult and family literacy organizations to 
promote and implement future financial literacy initiatives.
    Foreclosure Crisis.--The Committee continues to be 
concerned that the Department's strategy to reduce mortgage 
foreclosures and keep American families in their homes has 
fallen far short of the goal of modifying 3 to 4 million 
mortgages. The Committee notes that the Home Affordable 
Modification Program [HAMP] June 2011 report shows that 657,044 
homeowners are in active permanent modification and have been 
able to remain in their homes because of HAMP. The Committee 
also notes that approximately 200,000 additional homeowners are 
in the process of obtaining assistance through HAMP. The 
Committee directs the Department to focus on how to induce 
servicers to consider and implement principal reductions to 
allow homeowners to remain in the home with a reduced monthly 
mortgage payment in order to avoid foreclosure which often 
results in vacant real-estate owned property that may 
negatively affect an entire neighborhood. The Committee also 
directs the Department to ensure mortgage servicers are 
properly complying with HAMP agreements and to provide ample 
technical assistance and outreach to properly educate servicers 
about their responsibilities under the program.
    The Committee supports the administration's goal of 
disposing of Real-Estate Owned [REO] properties held by Fannie 
Mae and Freddie Mac, including the objectives of returning 
often vacant REO properties to productive use to reduce 
taxpayer costs and stabilize neighborhoods and home prices. The 
Committee also supports disposition strategies that increase 
rental housing and affordable housing stock. The Committee 
notes that to truly reduce the number of REO properties held by 
Fannie Mae and Freddie Mac, it is necessary to prevent homes 
from foreclosure. The Committee urges the Department to better 
utilize programs like HAMP and the Hardest Hit Fund to reduce 
the foreclosure rate among homes financed through Fannie Mae 
and Freddie Mac.
    Economic Sanctions and Divestments.--The Committee 
recommendation includes resources for Terrorism and Financial 
Intelligence programs. With these funds, the Department will 
continue to issue and enforce economic and trade sanctions 
consistent with national security and foreign policy goals. 
These sanctions are a key tool for asserting U.S. policy toward 
countries and entities under sanction. The Committee directs 
the Department to fully implement all sanctions and divestment 
measures, particularly those applicable to North Korea, 
Belarus, Burma, Iran, Sudan, and Zimbabwe. The Committee 
directs the Department to promptly notify the Committee of any 
resource constraints that adversely impact the implementation 
of any sanctions program.
    Proceeds of Corruption.--Corrupt politicians, terrorists, 
and those involved in organized crime are often able to hide 
their identity behind a corporate veil, allowing them to enjoy 
the proceeds of corruption and bribery, including on U.S. soil. 
The Committee directs the Department to use its rulemaking 
authority to strengthen customer due diligence requirements for 
U.S. financial institutions, consistent with applicable 
statutory authorities and international standards, including by 
identifying the beneficial owner of corporate vehicles, where 
appropriate.
    The Committee also directs the Department, in consultation 
with the other members of the United States delegation to the 
Financial Action Task Force [FATF], to take a leadership role 
in prioritizing prevention of the illicit flow of corrupt 
funds, including by strengthening FATF anti-corruption 
requirements and by conducting an extensive typology exercise 
on foreign corruption. The typology exercise will inform 
financial institutions on how to recognize the proceeds of 
corruption and therefore help prevent the flow of illicit funds 
into the United States. The Committee also urges the U.S. 
delegation to work with other member states to assess the 
implementation of the FATF's 40+9 Recommendations in practice, 
as well as in law, to ensure that the task force's 
recommendations are being effectively implemented and enforced 
by all countries.
    The Committee directs the Department to provide a written 
report to the Committee on Appropriations and the Committee on 
Banking, Housing, and Urban Affairs within 180 days of 
enactment on activities related to preventing the flow of 
proceeds of corruption into the United States, specifically 
including activities related to identifying the beneficial 
ownership of corporate vehicles, where appropriate, and 
participation in FATF activities and initiatives.
    Stored Value Cards.--The Committee notes that the 
Department recently issued final regulations establishing a 
regulatory framework for prepaid access payment methods, 
including stored value cards [SVCs], as mandated by the Credit 
Card Accountability Responsibility and Disclosure Act of 2009 
(Public Law 111-24). The Committee is aware that a final rule 
has been promulgated that defines prepaid access in the context 
of funds transmission, rather than monetary instruments, 
allowing the Bank Secrecy Act to evolve with technology. This 
regulation addresses regulatory gaps that have resulted from 
the proliferation of prepaid access innovations over the last 
12 years and their increasing use as an accepted payment 
method. The Committee is disappointed, however, that the final 
regulation was issued more than a year after the deadline.
    The Committee is also aware that a separate notice of 
proposed rulemaking to redefine SVCs as monetary instruments 
for the purposes of international transport reporting is 
currently under review by the Office of Management and Budget 
but is concerned that it is unlikely to be finalized this year. 
The Committee is frustrated about the slow pace of this 
rulemaking. The Committee stresses the importance of finalizing 
this regulation in order to stop drug cartels and other 
criminal actors from smuggling ill-gotten gains across the 
border and encourages the administration to prioritize this 
critical regulation. The Committee directs the Department, in 
coordination with the Department of Homeland Security, to 
submit a written report to the Committee on the status of the 
regulation on the international transportation of stored value 
devices not later than 30 days after enactment of this act.
    Management of Capital Investments and Information 
Security.--The Treasury Office of Inspector General continues 
to cite the Department's management of capital investments and 
information security as a top management challenge. Treasury is 
currently planning and managing several capital investments, 
including the transition to a new telecommunications contract, 
the implementation of enhanced information security 
requirements, and a modernization of systems supporting the 
implementation of the Bank Secrecy Act. The Committee 
recognizes efforts the Department has made to emphasize capital 
investment management Department-wide.
    The Committee directs the Department to continue improving 
the management of capital investments, specifically focusing on 
integrating all of the Department's bureaus into improvement 
efforts and institutionalizing improvements so that taxpayers 
will benefit from better management of future capital projects. 
The Committee notes that section 117 of the bill requires the 
Secretary of the Treasury to develop an annual Capital 
Investment Plan, to be submitted to the Committees on 
Appropriations of the Senate and the House of Representatives 
within 30 days following submission of the President's annual 
budget request. The Committee directs the Office of the Chief 
Information Officer to ensure that adequate resources are 
devoted both to projects in the capital phase and to proper 
maintenance and modernization of existing systems and to ensure 
that all projects are tracked properly and described completely 
in the annual Capital Investment Plan.

        DEPARTMENT-WIDE SYSTEMS AND CAPITAL INVESTMENTS PROGRAMS

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2011....................................      $3,992,000
Budget estimate, 2012...................................................
Committee recommendation................................................

                          PROGRAM DESCRIPTION

    The 1997 Treasury and General Government Appropriations Act 
established this account, which is authorized to be used by or 
on behalf of Treasury bureaus at the Secretary's discretion to 
modernize business processes and increase efficiency through 
technology investments, as well as other activities that 
involve more than one Treasury bureau or Treasury's interface 
with other Government agencies.

                        COMMITTEE RECOMMENDATION

    The Committee does not recommend any new funding for 
Department-wide systems and capital investments programs 
[DSCIP] for fiscal year 2012 in accordance with the budget 
request. The recommendation is $3,992,000 below the fiscal year 
2011 enacted level.
    The Committee notes that the DSCIP account has been 
utilized to fund a wide variety of multi-year initiatives, many 
of which are ongoing despite the lack of need for new resources 
for fiscal year 2012. Given the complexity of these 
initiatives, the bill includes language in section 117 
directing the Department of the Treasury to submit an annual 
Capital Investment Plan to the Committees on Appropriations 
within 30 days after the President's budget submission.

                      OFFICE OF INSPECTOR GENERAL

                         SALARIES AND EXPENSES

Appropriations, 2011....................................     $29,641,000
Budget estimate, 2012...................................      29,855,000
Committee recommendation................................      29,641,000

                          PROGRAM DESCRIPTION

    As a result of the 1988 amendments to the Inspector General 
[IG] Act, the Secretary of the Treasury established the Office 
of Inspector General [OIG] in 1989.
    The OIG conducts and supervises audits, evaluations, and 
investigations designed to: (1) promote economy, efficiency, 
and effectiveness and prevent fraud, waste, and abuse in 
departmental programs and operations; and (2) keep the 
Secretary and Congress fully and currently informed of problems 
and deficiencies in the administration of departmental programs 
and operations. The audit function provides program audit, 
contract audit, and financial statement audit services. 
Contract audits provide professional advice to agency 
contracting officials on accounting and financial matters 
relative to negotiation, award, administration, repricing, and 
settlement of contracts. Program audits review and audit all 
facets of agency operations. Financial statement audits assess 
whether financial statements fairly present the agency's 
financial condition and results of operations, the adequacy of 
accounting controls, and compliance with laws and regulations. 
These audits contribute significantly to improved financial 
management by helping Treasury managers identify improvements 
needed in their accounting and internal control systems. The 
evaluations function reviews program performance and issues 
critical to the mission of the Department. The investigative 
function provides for the detection and investigation of 
improper and illegal activities involving programs, personnel, 
and operations.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $29,641,000 
for salaries and expenses of the Office of Inspector General. 
This amount is a decrease of $214,000 to the budget request and 
equal to the fiscal year 2011 enacted level. The Committee 
directs that the office shall focus resources, when practical, 
on audits of the Bank Secrecy Act Information Technology 
Modernization project currently being planned and implemented 
by Treasury's Financial Crimes Enforcement Network. The 
Committee directs that the Inspector General shall submit a 
written report to the Committee regarding this project, 
including contractor oversight and progress regarding budget 
and schedule, on March 31, 2012 and semiannually thereafter. In 
addition, the Committee directs the Inspector General to 
perform audits, when resources allow, on Treasury's anti-money 
laundering and terrorist financing activities, capital 
investment spending and planning, the Community Development 
Financial Institutions Fund, and areas identified by the 
Inspector General as presenting a high risk to taxpayer-funded 
spending.

           TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION

                         SALARIES AND EXPENSES

Appropriations, 2011....................................    $151,696,000
Budget estimate, 2012...................................     157,831,000
Committee recommendation................................     151,696,000

                          PROGRAM DESCRIPTION

    The Treasury Inspector General for Tax Administration 
[TIGTA] was established by the IRS Restructuring and Reform Act 
of 1998 (Public Law 105-206). TIGTA was created to provide 
independent audit and investigative services necessary to 
improve the quality and credibility of oversight of the 
Internal Revenue Service [IRS].
    TIGTA conducts audits, investigations, and evaluations to 
assess the operations and programs of the IRS and related 
entities, the IRS Oversight Board and the Office of Chief 
Counsel to (1) promote the economic, efficient and effective 
administration of the Nation's tax laws and to detect and deter 
fraud and abuse in IRS programs and operations; and (2) 
recommend actions to resolve fraud and other serious problems, 
abuses, and deficiencies in these programs and operations, and 
keep the Secretary and Congress fully and currently informed of 
these issues and the progress made in resolving them. TIGTA 
reviews existing and proposed legislation and regulations 
relating to the programs and operations of the IRS and related 
entities and makes recommendations concerning the impact of 
such legislation and regulations on the economy and efficiency 
in the administration of programs and operations of the IRS and 
related entities. The audit function provides program audit, 
limited contract audit, and financial audit services. Program 
audits review and audit all facets of the IRS and related 
entities in an effort to improve IRS systems and operations, 
while ensuring fair and equitable treatment of taxpayers. 
Contract audits focus on invoices/vouchers submitted to the IRS 
to determine whether charges are valid and to identify 
erroneous and improper payments. The investigative function 
provides for the detection and investigation of improper and 
illegal activities involving IRS programs and operations and 
protects the IRS and related entities against external attempts 
to corrupt or threaten the administration of the tax laws.
    During fiscal year 2010, TIGTA's combined audit and 
investigative efforts recovered, protected, and identified 
monetary benefits totaling more than $8,600,000,000 and 
identified cost savings of $2,820,000,000. TIGTA's Office of 
Audit completed 129 reports and its Office of Investigations 
closed 3,743 investigations.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $151,696,000 
for the Treasury Inspector General for Tax Administration. This 
amount is the same as the fiscal year 2011 enacted level and 
$6,135,000 below the budget request. The Committee appreciates 
the challenges TIGTA faces in adapting its oversight activities 
to address increasingly complex and high-risk issues associated 
with IRS operations, including detection and investigation of 
fraud and electronic crime, review of procurement activities, 
and safeguarding of taxpayer privacy. The Committee recognizes 
that growth in the size and workload of the IRS generates 
concomitant increased work for TIGTA.
    The Committee commends TIGTA for its ongoing review of the 
IRS's business systems modernization program and other 
information technology projects. The Committee shares TIGTA's 
ongoing concern that the IRS is developing and launching its 
modernized systems without adequately contemplating the 
security implications. The Committee also acknowledges the 
critical importance of the priorities TIGTA has identified in 
its strategic plan, including adapting to the IRS's 
continuously evolving operations and mitigating intensified 
risks associated with modernization, security, addressing the 
tax gap, and human capital challenges facing the IRS. In 
addition, TIGTA plays a pivotal role in responding to threats 
and attacks against IRS employees, property, and sensitive 
information.
    The Committee appreciates and expects TIGTA's continued 
vigilance in monitoring IRS efforts to implement the 56 tax 
provisions of the Recovery Act. The Patient Protection and 
Affordable Care Act (Public Law 111-148) represents the largest 
set of tax law changes in more than two decades with more than 
40 provisions that amend the tax code. Despite resource 
constraints, the Committee strongly urges TIGTA's vigilant 
oversight of the IRS's effective implementation and 
administration of the myriad new requirements involving 
taxpayer education and outreach, deliverance of tax credits, 
and development of information technology infrastructure to 
support all of these areas.
    The Committee would welcome future TIGTA work to evaluate 
the Return Preparer Program; examine ``phishing'' schemes and 
other external and electronic attempts that expose taxpayers to 
surrendering private information that could be used for 
identity theft and undermine tax administration; and identify 
best practices and safeguards to reduce and mitigate threats to 
the security of IRS employees and its data infrastructure and 
facilities.

    SPECIAL INSPECTOR GENERAL FOR THE TROUBLED ASSET RELIEF PROGRAM

                         SALARIES AND EXPENSES

Appropriations, 2011....................................     $36,227,000
Budget estimate, 2012...................................      47,374,000
Committee recommendation................................      41,800,000

                          PROGRAM DESCRIPTION

    The Emergency Economic Stabilization Act (Public Law 110-
343) established the Office of the Special Inspector General 
for the Troubled Asset Relief Program [SIGTARP] to perform 
audits and investigations of the Troubled Asset Relief Program 
[TARP].

                        COMMITTEE RECOMMENDATION

    The Committee recommends $41,800,000 for the SIGTARP for 
fiscal year 2012. The recommendation is $5,574,000 below the 
budget request because the SIGTARP will be able to utilize 
carryover balances to fund a portion of fiscal year 2012. This 
recommendation is $5,573,000 above the fiscal year 2011 enacted 
level because carryover balances are dwindling. The Committee 
is pleased with the quality of the audits and investigations 
conducted by the SIGTARP, particularly with regard to written 
materials provided to the Congress and the public.

                  Financial Crimes Enforcement Network


                         SALARIES AND EXPENSES

Appropriations, 2011....................................    $110,788,000
Budget estimate, 2012...................................      84,297,000
Committee recommendation................................     110,788,000

                          PROGRAM DESCRIPTION

    The Financial Crimes Enforcement Network [FinCEN], a bureau 
within the Treasury Department's Office of Terrorism and 
Financial Intelligence, is the largest overt collector of 
financial intelligence in the United States. FinCEN's mission 
is to safeguard the financial system from the abuses of 
financial crime, including terrorist financing, money 
laundering, and other illicit activity. FinCEN accomplishes its 
mission by administering the Bank Secrecy Act, a collection of 
statutes that form the Nation's anti-money laundering/counter-
terrorist financing regulatory regime. As the delegated 
administrator of the Bank Secrecy Act, FinCEN is responsible 
for the development and implementation of regulations, rules, 
and guidance issued under the Bank Secrecy Act. FinCEN also 
oversees the work of eight Federal agencies that have been 
delegated responsibility to examine various sectors of the 
financial industry for compliance with the Bank Secrecy Act's 
requirements. FinCEN is responsible for collecting, 
maintaining, and disseminating the information reported by 
financial institutions under the Bank Secrecy Act through a 
Government-wide access service. FinCEN is the United States' 
Financial Intelligence Unit [FIU] and a founding member of the 
Egmont Group of Financial Intelligence Units. As the United 
States' FIU, FinCEN routinely shares information and cooperates 
with other FIUs around the world to address the global problems 
of terrorist financing, money laundering, and other illicit 
activity.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $110,788,000 for the Financial 
Crimes Enforcement Network [FinCEN]. This amount is equal to 
the fiscal year 2011 enacted level and $26,491,000 above the 
budget request. The Committee rejects the proposal to fund a 
portion of FinCEN's needs in fiscal year 2012 using proceeds 
from the Treasury Forfeiture Fund. The amount recommended above 
the request reflects the Committee's recommendation to fund 
FinCEN exclusively through the account designated for FinCEN 
Salaries and Expenses.
    State and Local Access to Bank Secrecy Act [BSA] Data and 
Intelligence Support to External Agencies.--The Committee 
rejects the administration's proposal to decrease FinCEN's 
funding by $2,319,000 by reducing State and local and 
intelligence community access to BSA information. The data 
compiled and analyzed by FinCEN is a critical tool for 
investigating serious financial crimes, including money 
laundering, mortgage fraud, drug trafficking, and terrorist 
financing. Law enforcement agencies at all levels of government 
use the database not only in identifying, investigating, and 
ultimately prosecuting criminals, but also in preventing and 
deterring crime. FinCEN's support of State and local law 
enforcement and the intelligence community multiplies the 
strength of force of all levels of government in fighting such 
crimes. The Committee's recommended funding level is intended 
to ensure that BSA data is accessible to the appropriate State 
and local law enforcement personnel, field representatives, and 
the intelligence community.
    Information Technology Modernization.--The Committee 
recommendation supports FinCEN's efforts to modernize the 
technical environment for implementation of the Bank Secrecy 
Act [BSA]. The modernization will re-engineer the BSA data 
architecture, update antiquated infrastructure required to 
support data capture and dissemination, implement innovative 
Web services and enhanced electronic filing, and provide 
enhanced analytical tools. This system is used by banks, 
Federal law enforcement, State and local law enforcement, and 
other Federal intelligence agencies to report, gather, and 
analyze data to identify money laundering, terrorist financing, 
tax evasion, and vulnerabilities in the financial industry. The 
previous infrastructure is outdated and limits the capabilities 
of these users, which ultimately limits the capability of the 
Treasury and its partners to pursue money laundering, terrorist 
financing, and tax evasion.
    The Committee is pleased with the steps FinCEN has taken to 
strengthen its acquisition and project management competencies 
and directs the agency to continue to pursue employee education 
and training efforts in this area, including training on proper 
budget execution practices. The Committee also directs FinCEN 
to place a top priority on contractor oversight and on 
involving its wide variety of stakeholders in the development 
of the modernized system. FinCEN is directed to continue to 
submit a semiannual report to the Committee on Appropriations 
summarizing the agency's progress regarding the modernization 
effort, including milestones planned and achieved, progress on 
cost and schedule, management of contractor oversight, 
strategies to involve stakeholders, and acquisition management 
efforts.
    The Committee also directs FinCEN to focus efforts on 
improving the completeness and reliability of BSA data in 
accordance with recommendations by the Treasury Inspector 
General and the Government Accountability Office. The Committee 
notes that while a new BSA infrastructure will improve the 
capabilities of processing and analyzing BSA data, the 
accuracy, reliability, and timeliness of the data itself will 
ultimately determine the effectiveness of the system and 
related processes.

                        Treasury Forfeiture Fund


                              (RESCISSION)

    The Committee recommends a rescission of $750,000,000 of 
unobligated balances in the Treasury Forfeiture Fund.

                      Financial Management Service


                         SALARIES AND EXPENSES

Appropriations, 2011....................................    $232,786,000
Budget estimate, 2012...................................     218,805,000
Committee recommendation................................     217,805,000

                          PROGRAM DESCRIPTION

    In 1940, the Department of the Treasury established the 
Fiscal Service, which consisted of the Bureau of Accounts, the 
Bureau of the Public Debt, and the Office of the Treasurer. A 
1974 reorganization of the Fiscal Service created the Bureau of 
Government Financial Operations, which was formed from a merger 
of the Bureau of Accounts and most functions of the Office of 
the Treasurer. In 1984, the Bureau of Government Financial 
Operations was renamed the Financial Management Service [FMS].
    FMS implements payment policy and procedures for Federal 
agencies, issues and distributes payments, promotes the use of 
electronics in the payment process, and assists agencies in 
converting payments from paper checks to electronic funds 
transfer [EFT]. FMS provides debt collection operational 
services to client agencies, implements collections policy, 
regulations, standards, and procedures for the Federal 
Government, and assists agencies in converting collections from 
paper to electronic media.
    FMS provides financial accounting, reporting, and financing 
services to the Federal Government and the Government's agents 
who participate in the payments and collections process by 
generating a series of daily, monthly, quarterly, and annual 
Government-wide reports. FMS also works directly with agencies 
to help reconcile reporting differences.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $217,805,000 for salaries and 
expenses for FMS. This amount is $1,000,000 below the budget 
request and $14,981,000 below the fiscal year 2011 enacted 
level. An additional amount of $97,052,000 is also estimated to 
be available to FMS from reimbursable resources for debt 
collection activities.

                Alcohol and Tobacco Tax and Trade Bureau


                         SALARIES AND EXPENSES

Appropriations, 2011....................................    $100,798,000
Budget estimate, 2012...................................      97,878,000
Committee recommendation................................      99,878,000

                          PROGRAM DESCRIPTION

    The Homeland Security Act created the Alcohol and Tobacco 
Tax and Trade Bureau [TTB] within the Department of the 
Treasury and charged TTB with collecting revenue and protecting 
the public.
    TTB enforces certain Federal laws and regulations relating 
to alcohol and tobacco. TTB works directly and in cooperation 
with others to maintain a sound revenue management and 
collection system that continues to reduce the regulatory 
burden, improve service, collect the revenue due, and prevent 
tax evasion and other criminal conduct. TTB is also responsible 
for preventing consumer deception, ensuring that regulated 
products comply with Federal commodity, safety, and 
distribution requirements, and providing customer service.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $99,878,000 for TTB for fiscal 
year 2012. This amount is $2,000,000 above the budget request 
and $920,000 below the fiscal year 2011 enacted level.
    The Committee recommendation includes $2,000,000 for the 
costs of special law enforcement agents to target tobacco 
smuggling and other criminal diversion activities. The 
Committee directs the Department and TTB to place a high 
priority on conducting robust criminal enforcement activities 
at TTB.

                           United States Mint


               UNITED STATES MINT PUBLIC ENTERPRISE FUND

                          PROGRAM DESCRIPTION

    The United States Mint manufactures coins, sells numismatic 
and investment products, and provides for security and asset 
protection. Public Law 104-52 established the U.S. Mint Public 
Enterprise Fund (the Fund). The Fund encompasses the previous 
Salaries and Expenses, Coinage Profit Fund, Coinage Metal Fund, 
and the Numismatic Public Enterprise Fund. The Mint submits 
annual audited business-type financial statements to the 
Secretary of the Treasury and to Congress in support of the 
operations of the revolving fund.
    The operations of the Mint are divided into two major 
activities: Manufacturing and sales (including circulating 
coinage and numismatic and investment products); and 
protection. The Mint is credited with receipts from its 
circulating coinage operations, equal to the full cost of 
producing and distributing coins that are put into circulation, 
including depreciation of the Mint's plant and equipment on the 
basis of current replacement value. Those receipts pay for the 
costs of the Mint's operations, which include the costs of 
production and distribution. The difference between the face 
value of the coins and these costs is a profit, which is 
deposited as seigniorage to the general fund. In fiscal year 
2010, the Mint transferred $388,000,000 to the general fund. 
Any seigniorage used to finance the Mint's capital acquisitions 
is recorded as budget authority in the year that funds are 
obligated for this purpose and as receipts over the life of the 
asset.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a spending level of $20,000,000 
for circulating coinage and protective service capital 
investments for the Mint. This amount is a decrease of 
$6,700,000 below the fiscal year 2011 enacted level and is 
equal to the budget request.

                       Bureau of the Public Debt


                     ADMINISTERING THE PUBLIC DEBT

Appropriations, 2011....................................    $174,635,000
Budget estimate, 2012...................................     165,635,000
Committee recommendation................................     165,635,000

                          PROGRAM DESCRIPTION

    The Public Debt Service was formed in 1919 with the 
appointment of the first Commissioner of the Public Debt. The 
Public Debt Service took general charge of debt operations 
including debt accounting and securities issue and retirement, 
which had been conducted by several independent divisions 
within the Treasury. Acting under the authorization of the 
Reorganization Act of 1939, the President created the Bureau of 
the Public Debt, which was established as part of the Fiscal 
Service in the Department of the Treasury effective June 30, 
1940 (31 U.S.C. 306). In 1993, the Savings Bonds Division, a 
separate organization, was made part of the Bureau.
    This appropriation provides funds for the conduct of all 
public debt operations and the promotion of the sale of U.S. 
savings-type securities.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $165,635,000 for the Bureau of the 
Public Debt for fiscal year 2012. This amount is a decrease of 
$9,000,000 below the fiscal year 2011 enacted level and is 
equal to the budget request.

           Community Development Financial Institutions Fund


   COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND PROGRAM ACCOUNT

Appropriations, 2011....................................    $226,546,000
Budget estimate, 2012...................................     227,259,000
Committee recommendation................................     200,000,000

                          PROGRAM DESCRIPTION

    The Community Development Financial Institutions Fund makes 
investments in the form of grants, loans, equity investments, 
deposits, and technical assistance grants to new and existing 
community development financial institutions [CDFIs] through 
the CDFI program. CDFIs include community development banks, 
credit unions, venture capital funds, revolving loan funds, and 
microloan funds, among others. Recipient institutions engage in 
lending and investment for affordable housing, small business, 
and community development within underserved communities. The 
CDFI Fund administers the Bank Enterprise Award [BEA] Program, 
which provides a financial incentive to insured depository 
institutions to undertake community development financing 
activities.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $200,000,000 for the CDFI Fund, 
which is $26,546,000 below the fiscal year 2011 enacted level 
and $27,259,000 below the budget request.
    The Committee supports funding for the CDFI Fund because of 
the program's unique ability to leverage private sector 
investment in community development projects such as affordable 
housing, retail development, and community centers, as well as 
lending to small businesses. Funding for the CDFI Fund expands 
the power of CDFIs to improve urban and rural communities 
through sound, but patient investment. With just a small amount 
of seed financing from the CDFI Fund, CDFIs can transform 
communities. CDFIs often provide the ``last mile'' of financing 
to our Nation's most challenged areas. CDFIs also provide 
banking services to the un-banked and others targeted by 
predatory lenders. Nationwide in 2010, CDFIs leveraged an 
average of $13 for every Federal dollar invested and Federal 
grants helped create or maintain over 80,000 jobs.
    Bank on USA.--The Committee recommends $36,000,000 for the 
Bank on USA program to promote access to affordable financial 
services and basic consumer credit products for households 
without access to such products and services. These households 
face a number of problems, including high fees for alternative 
financial services such as check-cashing, barriers to saving 
and building credit, and increased exposure to risks such as 
fraud and theft. Many of these households also lack access to 
reasonably priced short-term consumer credit to meet emergency 
or regular needs, often turning to payday loans, refund 
anticipation loans, pawn shops and other high-priced 
alternatives for credit needs. The Committee directs the CDFI 
Fund to submit a detailed spending plan on the Bank on USA 
program to the Committee within 120 days of enactment.
    Healthy Food Financing Initiative.--The Committee 
recommends $22,000,000 for the Healthy Food Financing 
Initiative. The goal of the initiative is to increase the 
availability of affordable, healthy foods in underserved urban 
and rural communities. Many of these communities are only 
served by fast food restaurants and convenience stores that 
offer few healthy food options. Recommended funding will 
increase the availability of affordable financing for grocery 
store development, supplies and equipment to improve food 
production technology, and improvements and modernization of 
food distribution mechanisms and infrastructure.
    Native Programs.--The Committee recommends a set-aside of 
$12,000,000 for grants, loans, and technical assistance and 
training programs to benefit Native American, Alaskan Natives, 
and Native Hawaiian communities in the coordination of 
development strategies, increased access to equity investments, 
and loans for development activities.
    The Committee understands that many CDFIs are experiencing 
difficulty obtaining non-Federal funding due to the economic 
downturn. The Committee recommends continuing the temporary 
waiver of matching fund requirements for CDFI programs so that 
CDFIs can continue to invest in and assist underserved 
communities during the economic crisis. The Committee intends 
to reinstate matching fund requirements when capital markets 
return to normal function.

                    Bureau of Engraving and Printing


                          PROGRAM DESCRIPTION

    The Bureau of Engraving and Printing [BEP] has been the 
sole manufacturer of U.S. paper currency for almost 150 years. 
The origin of the BEP is traced to an act of Congress passed on 
February 25, 1862, 12 Stat. 345, authorizing the Secretary of 
the Treasury to issue a new currency--United States notes. 
While this law was the cornerstone authority for the operations 
of the engraving and printing division of the Treasury for many 
years, it was not until an Act of June 20, 1874, 18 Stat. 100, 
that the Congress first referred to this division as the 
``Bureau of Engraving and Printing.'' The Bureau's status as a 
distinct bureau within the Department of the Treasury was 
solidified by section 1 of the Act of June 4, 1897, 30 Stat. 
18, which placed all of the business of the BEP under the 
immediate control of a director, subject to the direction of 
the Secretary of the Treasury. The 1897 law is now codified in 
31 U.S.C. 303.
    The BEP designs, manufactures, and supplies Federal Reserve 
notes and other security documents issued by the Federal 
Government.
    The operations of the BEP are currently financed by means 
of a revolving fund established in accordance with the 
provisions of Public Law 656, August 4, 1950 (31 U.S.C. 181), 
which requires the BEP to be reimbursed by customer agencies 
for all costs of manufacturing products and services performed. 
The BEP is also authorized to assess amounts to acquire capital 
equipment and provide for working capital needs.
    No direct appropriation is required to cover the activities 
of the BEP.

                        Internal Revenue Service


                          PROGRAM DESCRIPTION

    The Internal Revenue Service [IRS] administers the Nation's 
tax laws and collects the revenue that funds more than 96 
percent of the Federal Government's operations and public 
services. The IRS's mission is to provide taxpayers with 
quality service by helping them understand and meet their tax 
responsibilities and by applying the tax law with integrity and 
fairness to all. The IRS focuses its enforcement programs 
toward increasing voluntary tax compliance by deterring 
taxpayers inclined to evade their tax obligations while 
vigorously pursuing those who violate the law. Each year, IRS 
employees deal directly with more American taxpayers than any 
other institution, public or private.
    During fiscal year 2010, the IRS processed more than 230 
million returns, provided over 109 million refunds, and 
collected over $2,345,000,000,000 for the Federal Government. 
Of the 141 million individual income tax returns processed, 
over 69 percent were filed electronically. This marks a 
significant increase in electronically filed returns compared 
to the 31 percent in fiscal year 2001. The IRS provided 
taxpayer assistance through more than 305 million visits to the 
IRS.gov Web site, over 35 million automated telephone calls, 
and 6.4 million walk-in Taxpayer Assistance Center contacts and 
through nearly 36.7 million telephone calls. The IRS employed a 
total work force of 95,425, including seasonal and part-time 
employees. In fiscal year 2010, the average cost of collecting 
$100 in tax revenue was 53 cents. An important focus for the 
IRS in recent years has been to undertake a major modernization 
of its systems, including expanding its Internet services, and 
business operations to better serve taxpayers and enforce the 
law.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a total of $11,663,042,000 for the 
Internal Revenue Service for fiscal year 2012. This is a 
decrease of $458,788,000 below the fiscal year 2011 enacted 
level and $1,620,865,000 below the budget request.
    Tax Gap.--The vast majority of Americans pay their fair 
share of taxes, yet there is still a ``tax gap.'' The tax gap 
is the difference between what taxpayers are supposed to pay 
and what they actually do pay.
    To reduce the $345,000,000,000 gross tax gap, experts 
recommend a number of approaches. These include improving 
information reporting, improving taxpayer services, increasing 
research on noncompliance, improving the partnership between 
the IRS and the tax administration community, and leveraging 
technology to improve IRS's systems. The Committee supports all 
of these approaches in combination.
    Tax Compliance.--The Committee remains concerned that 
absent a better understanding of the current sources of 
noncompliance, efforts to improve compliance may be hampered, 
misdirected, and difficult to measure. To gain meaningful 
insights into taxpayer behavior, the Committee strongly 
supports the work of the National Research Program.
    Operating Plan and Notification.--In addition to the normal 
operating plan requirements detailed in the introduction in 
this report, the Committee directs the IRS to include details 
on any planned reorganization, job reductions or increases to 
offices or activities within the agency, and modifications to 
any service or enforcement activity. The Committee also directs 
the IRS to obtain and include comments of the IRS Oversight 
Board as part of its operating plan submission to the 
Committee. Further, the IRS should promptly notify the 
Committee and the IRS Oversight Board of any substantial 
changes to these plans.
    Taxpayer Services in Alaska and Hawaii.--Given the remote 
distance of Alaska and Hawaii from the U.S. mainland and the 
difficulty experienced by Alaska and Hawaii taxpayers in 
receiving needed tax assistance by the national toll-free line, 
it is imperative that the Taxpayer Advocate Service Centers in 
these States are fully staffed and capable of resolving 
taxpayer problems of the most complex nature. The Committee 
directs the IRS to continue to staff each Taxpayer Advocate 
Service Center in each of these States with a Collection 
Technical Advisor and an Examination Technical Advisor in 
addition to the current complement of office staff. Staffing 
should be increased if, as the result of the IRS Restructuring 
and Reform Act of 1998, subsequent legislation, or other 
factors, the volume of cases or their complexity increases.

                           TAXPAYER SERVICES

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2011....................................  $2,274,272,000
Budget estimate, 2012...................................   2,345,133,000
Committee recommendation................................   2,195,522,000

                          PROGRAM DESCRIPTION

    The Taxpayer Services appropriation provides for taxpayer 
services, including forms and publications; processing tax 
returns and related documents; filing and account services; 
taxpayer advocacy services; and assisting taxpayers to 
understand their tax obligations, correctly file their returns, 
and pay taxes due in a timely manner.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $2,195,522,000 for Taxpayer 
Services, which is $78,750,000 below the fiscal year 2011 
enacted level, and $149,611,000 below the budget request. Bill 
language is included providing not less than $6,100,000 for the 
tax counseling for the elderly program, not less than 
$10,000,000 for low-income taxpayer clinic [LITC] grants, not 
less than $12,000,000, to be available for 2 years, for a 
community volunteer income tax assistance [VITA] matching grant 
program for tax return preparation assistance and $207,738,000 
for the Taxpayer Advocate Service.
    The Committee recognizes the significant service challenges 
requiring rapid implementation that the IRS has faced as a 
result of recent tax law provisions designed to assist 
taxpayers in difficult economic times.
    The Committee acknowledges that telephonic access to the 
IRS is critical to promoting voluntary compliance. In recent 
years, the IRS has experienced a decline in its level of 
service on its toll-free taxpayer service line due to increased 
volume. In the 2005 to 2007 span, about 57 million calls were 
received each year, and the level of service stood at 82 
percent. When the call volume spiked in 2008 as a result of 
inquiries about the economic stimulus payments, the level of 
service slipped to 53 percent. As a result of IRS initiatives, 
the level of service rebounded to around 72 percent in the last 
2 years. Call volume in these past 2 years has been around 77.5 
million per year, representing an over 35 percent uptick from 5 
years ago. The average waiting time for call response has been 
longer--11 minutes on hold in fiscal year 2010 compared to 4.5 
minutes in fiscal year 2007.
    The Committee encourages the IRS to continue to make steady 
progress in its telephonic response performance and work to 
sustain taxpayer service delivery in an atmosphere of fiscal 
austerity and budgetary rollbacks.
    E-Filing.--The Committee is heartened by the IRS's improved 
performance in increasing the number of tax filers who submit 
their returns electronically and without additional cost. 
Electronic filing benefits taxpayers and promotes effective tax 
administration because it decreases processing errors, 
expedites processing and payment of refunds, and allows the IRS 
to efficiently maintain up-to-date records. It costs the IRS 17 
cents to process an electronically filed return, compared to 
$3.66 to process a paper filed return.
    The Committee acknowledges that in the 2011 filing season, 
IRS achieved a major milestone as it passed the 1 billion mark 
for individual electronically filed tax returns processed 
safely and securely since the program was launched as a pilot 
test in 1986 and expanded nationwide in 1990. Prior to the 
April 18 deadline, IRS e-file surpassed another record with 
more than 100 million individual tax returns e-filed during the 
2011 filing season. Currently, more than 79 percent of 
taxpayers have used e-file to submit their tax returns so far 
this year.
    In 2009, Congress mandated use of e-filing by all tax 
preparers who file 10 or more tax returns. IRS is phasing in 
the requirement, with tax preparers who filed 100 or more 
returns in 2011 obligated to e-file, and for 2012, tax 
preparers who file 11 or more returns required to e-file.
    Impact on IRS of Healthcare Implementation.--As a prime 
example of the expanding tasks tied to legislative enactments, 
the Patient Protection and Affordable Care Act (Public Law 111-
148) includes several provisions that will significantly impact 
the workload of the IRS over the course of the next several 
years. IRS's new responsibilities include implementing a 
Medicare payroll tax on investment income, collecting an excise 
tax on high-cost insurance plans, and delivering hundreds of 
billions in subsidies for low-income Americans to buy 
insurance.
    The Committee strongly urges the administration, the 
Secretary of the Treasury, and the IRS Commissioner to evaluate 
the impact of healthcare mandates on the IRS's overall mission 
and take all appropriate actions to prevent decline in the 
quality and effectiveness of service or taxpayer perception. 
The Committee directs the IRS to specifically identify in its 
fiscal year 2013 budget submission and operating plan any 
proposed increases in spending to be designated to implement 
the healthcare mandates, as well as any proposed changes in 
spending or prioritization in other mission-critical IRS 
programs as a result of the healthcare responsibilities.
    The Committee directs the IRS to submit to the Committee, 
within 30 days of enactment, a detailed table and explanatory 
information reflecting the amounts, dates of receipt, and use 
of funds made available to the IRS by transfer from the 
Department of Health and Human Services for purposes of 
carrying out the Patient Protection and Affordable Care Act 
(Public Law 111-148) and the Health Care and Education 
Reconciliation Act of 2010 (Public Law 111-152).
    Taxpayer Assistance Blueprint.--In response to the 
Committee's directive in the fiscal year 2006 Treasury 
Appropriations Act, the IRS, in consultation with the IRS 
Oversight Board and the National Taxpayer Advocate, developed a 
``Taxpayer Assistance Blueprint'' to institute a 5-year 
strategic plan for taxpayer services. The Committee expects the 
Taxpayer Assistance Blueprint to be an integral and guiding 
component of delivering services. The Committee supports 
ongoing efforts to conduct research on taxpayer needs and 
taxpayer service performance.
    The Committee directs the IRS, the IRS Oversight Board, and 
the National Taxpayer Advocate to continue to submit to 
Congress annual updates to the Taxpayer Assistance Blueprint 
identifying any changes to its strategic plan for taxpayer 
service, including the results of any new research and relevant 
findings, and any open issues requiring additional research.
    Benefits of National Research Program.--The Committee 
believes that the IRS will deliver better taxpayer service, 
achieve improved compliance, and reduce the tax gap if taxpayer 
behavior is better understood and applied research is 
integrated into the development of taxpayer service and 
enforcement initiatives. Toward that end, the Committee 
supports the work of the National Taxpayer Advocate and the IRS 
Office of Research to examine factors that influence taxpayer 
compliance behavior, including how and the extent to which 
various factors influence such behavior, and how the 
establishment of a cognitive learning and applied research 
laboratory might facilitate continued evaluation.
    Community Volunteer Income Tax Assistance.--The Volunteer 
Income Tax Assistance [VITA] program is an important aspect of 
IRS efforts to provide income tax preparation assistance 
programs for low-income taxpayers.
    A grant program established in 2008 provides direct funds 
to enable VITA programs to extend services to underserved 
populations and hardest-to-reach areas, both urban and 
nonurban, as well as to increase the capacity to file returns 
electronically, heighten quality control, enhance training of 
volunteers, and significantly improve the accuracy rate of 
returns prepared by VITA sites.
    The Committee notes that of 321 eligible applicants in 
2011, 179 organizations were awarded VITA grants to serve 3,454 
sites across the country at which 964,297 returns were 
prepared. The Committee recognizes that the applications for 
these grants far exceed the available resources.
    The Committee provides that, within funds provided, 
$12,000,000 shall be available for 2 years for exclusive use as 
part of continuing a matching grant program established and 
administered by the IRS, in consultation with the Taxpayer 
Advocate Service, for not for profit organizations which 
provide volunteer income tax return preparation services for 
lower income individual taxpayers.
    The Committee strongly urges the IRS to make every effort 
to expand the quantity and funding level of VITA grants focused 
on serving persons with disabilities proportional to the 
growing disability population requiring tax assistance. The 
Committee understands that entities that are currently 
increasing their outreach efforts to better serve the needs of 
the disability population have experienced difficulty in 
applying for Federal grant assistance due to a lack of 
resources at the local level needed to complete the 
application. The Committee urges the IRS to allow national 
coalitions responsible for the coordination of local community 
partnerships focused specifically on the expanded provision of 
tax services for individuals with disabilities to compete in 
the VITA community matching grant processes.
    Fraudulent Abuse of Tax Credits.--Congress has enacted a 
series of legislative provisions that have enabled first-time 
homebuyers to claim a refundable credit on their 2008, 2009, or 
2010 individual Federal tax returns. In addition, the 
Residential Energy Tax Credit program rewards homeowners for 
making eligible energy-saving improvements to a principal 
residence.
    TIGTA has released a series of disturbing investigative 
reports describing a significant amount of fraudulent and 
erroneous payments in both the First-Time Homebuyer and the 
Residential Energy tax credit programs, including claims from 
ineligible incarcerated persons. The Committee directs the IRS 
to intensify its scrutiny of questionable claims for these and 
other credits, continue to improve the documentation 
requirements to substantiate eligibility, institute effective 
filters to screen-out ineligible claimants, and employ 
verification methods for distributing tax credits to diminish 
the incidence of fraud and erroneous payments in these 
beneficial programs.

                              ENFORCEMENT

Appropriations, 2011....................................  $5,492,992,000
Budget estimate, 2012...................................   5,966,619,000
Committee recommendation................................   5,228,613,000

                          PROGRAM DESCRIPTION

    The Enforcement appropriation provides for the examination 
of tax returns, both domestic and international; the 
administrative and judicial settlement of taxpayer appeals of 
examination findings; technical rulings; monitoring employee 
pension plans; determining qualifications of organizations 
seeking tax-exempt status; examining tax returns of exempt 
organizations; enforcing statutes relating to detection and 
investigation of criminal violations of the internal revenue 
laws; identifying underreporting of tax obligations; securing 
unfiled tax returns; and collecting unpaid accounts.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $5,228,613,000 for enforcement 
activities for fiscal year 2012. This amount is $264,379,000 
below the fiscal year 2011 enacted level and $738,006,000 below 
the budget request. Bill language is included to transfer not 
less than $60,257,000 to the Interagency Crime and Drug 
Enforcement [ICDE] program.
    The Committee supports the use and prioritization of 
enforcement resources to address business and individual 
international tax compliance by building upon steady multi-year 
investments in initiatives and activities to reduce offshore 
tax evasion, including the new special voluntary disclosure 
program. The Committee further endorses proposals to reduce the 
reporting compliance tax gap through increased examinations of 
business and high-income individual returns, increased coverage 
of the Automated Underreporter [AUR] Program, and increased 
audits involving flow-through entities.
    National Research Program.--As noted previously, the 
Committee strongly supports the work of the National Research 
Program [NRP] to increase understanding of the tax gap. The 
Committee acknowledges that the IRS and others have expressed 
concerns with the certainty of the overall tax gap estimate in 
part because some aspects of the estimate rely on data from the 
1970s and 1980s and in other areas, no estimates are available. 
The Committee agrees with GAO, TIGTA, the National Taxpayer 
Advocate, and the IRS Oversight Board, which have all 
recommended greater and more frequent data collection and 
studies of the tax gap including the portion of the tax gap 
attributable to international transactions.
    Misclassification of Contractors.--The Committee continues 
to be highly concerned with the misclassification of workers as 
independent contractors rather than as employees. This 
misclassification leads to the underreporting and underpayment 
of employment and payroll taxes by employers and individuals, 
which accounts for a substantial portion of the gross tax gap. 
The Committee is encouraged by IRS actions to develop an 
agency-wide plan and a worker classification team to assist 
external stakeholders. The Committee understands that the IRS 
has begun the random sampling selection to study worker 
classification and other employment tax issues, including the 
safe harbor provision. The Committee looks forward to reviewing 
the findings once the 3 years of examinations are complete.
    The Committee is concerned that staffing within the IRS's 
SS-8 program, responsible for making determinations as to a 
worker's Federal employment tax status, has not kept pace with 
the record and sustained SS-8 filings during the past three 
filing seasons. The Committee believes that the IRS SS-8 
program is critical to ensuring that workers are classified 
correctly, identifying leads for employment tax exams and 
criminal investigations, and combating the underreporting of 
employment taxes that contributes significantly to the tax gap. 
The Committee believes it is crucial, given the growing 
workload, that the IRS maintain sufficient staffing at SS-8 
processing locations. Prior to making any staffing reductions 
at the SS-8 processing locations, the Committee directs the IRS 
to provide a report to the Committee that details the past 5 
years of staffing levels and employee productivity, SS-8 
receipt volumes, and rationale for the proposed workforce 
changes.

                           OPERATIONS SUPPORT

Appropriations, 2011....................................  $4,075,716,000
Budget estimate, 2012...................................   4,620,526,000
Committee recommendation................................   3,893,216,000

                          PROGRAM DESCRIPTION

    The Operations Support appropriation provides for overall 
planning and direction of the IRS including shared service 
support related to facilities services, rent payments, 
printing, postage, and security; other support functions that 
are considered overhead but essential to the successful 
operation of IRS programs including resources for headquarters 
management activities, including IRS-wide support for strategic 
planning, communications and liaison, finance, human resources, 
EEO and diversity; research and statistics of income; and 
necessary expenses for information systems and 
telecommunication support, including developmental information 
systems and operational information systems.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $3,893,216,000 for Operations 
Support for fiscal year 2012. This amount is $182,500,000 below 
the fiscal year 2011 enacted level and $727,310,000 below the 
budget request. Bill language is included allowing up to 
$250,000,000 of these funds to remain available until September 
30, 2013, for information technology support and not to exceed 
$1,000,000 to remain available until September 30, 2014, for 
research; not less than $2,000,000 for the Internal Revenue 
Oversight Board; and $25,000 for official reception and 
representation expenses.
    Information Technology [IT] Management and Oversight.--The 
IRS has made significant strides in improving the management 
and oversight of its business systems modernization [BSM] 
program. The IRS needs to vigilantly address major systemic 
problems with its non-BSM portfolio of information technology 
projects. TIGTA has identified problems in several areas of IT 
management and oversight including, but not limited to, such 
areas as classification of investment projects, oversight and 
governance structure, risk management, contingency planning, 
and contractor performance and accountability. The IRS funds 
155 IT systems. Of these, 31 are major systems each having an 
overall life-cycle cost of greater than $50,000,000 or an 
annual budget of greater than $5,000,000.
    The Committee shares the concerns, cited by TIGTA and GAO, 
that the IRS lacks a comprehensive integrated system to provide 
accurate, relevant, and timely financial and operating data 
that can be used to evaluate performance measures, 
productivity, and the associated costs of IRS programs. This 
deficiency hinders IRS management decisionmaking as well as 
Congressional oversight of progress in achieving program goals.
    Although some progress has been made, the Committee is 
particularly concerned about chronic material weaknesses in 
IRS's internal controls over information security that expose 
systems to serious risk. The Committee expects the IRS to 
improve its efforts to fully address information security 
vulnerabilities, including promptly instituting corrective 
action in response to recommendations of TIGTA and GAO in this 
area.
    The Committee expects the IRS to monitor its entire non-BSM 
IT portfolio (regardless of tier classification) and make any 
changes as necessary to ensure that each project has--
  --been properly classified for investment decision and 
        management purposes;
  -- the appropriate governance structure in place (such as an 
        executive steering committee);
  --a risk management plan;
  --a contingency plan in case of breakdowns or failures in 
        scheduled deliverables;
  --adequate provisions in the contracts to ensure penalties 
        and repayment to the agency if performance is not met;
  --adequate contractor staffing and management in place to 
        fulfill the contract terms and deliverables; and
  --been certified by the head of the relevant IRS business 
        unit that the project is deemed necessary for its 
        operations and meets its requirements.
    The Committee directs the administration and the IRS to 
include within the fiscal year 2013 budget request a proposed 
long-term multiyear funding strategy and timetable within the 
Operations Support account to upgrade and modernize the aging 
legacy IRS information technology infrastructure. The Committee 
further directs the IRS to incorporate in its 2013 budget 
justification materials submitted to the Committee up-to-date 
cost and schedule performance measures for all major systems 
funded within the Operations Support account, as it has 
traditionally done for the Business Systems Modernization 
components.

                     BUSINESS SYSTEMS MODERNIZATION

Appropriations, 2011....................................    $263,369,000
Budget estimate, 2012...................................     333,600,000
Committee recommendation................................     330,210,000

                          PROGRAM DESCRIPTION

    The Business Systems Modernization account provides 
resources for revamping business practices and acquiring new 
technology. The IRS has undertaken a multi-year, multi-billion 
dollar effort to migrate from its antiquated legacy system to 
bring the IRS tax administration system to a level of public 
and private sector best practices. The IRS is using a formal 
methodology to prioritize, approve, fund, and evaluate its 
portfolio of business systems modernization investments. This 
methodology is designed to enforce a documented, repeatable, 
and measurable process for managing investments throughout 
their life cycle. The process is reviewed by the Government 
Accountability Office on a regular basis as part of the 
submission requirements for expenditure plans to the House and 
Senate Committees on Appropriations. The expenditure plan 
approval process prior to the use of appropriated funds 
continues for fiscal year 2012.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $330,210,000 for Business Systems 
Modernization [BSM] for fiscal year 2012. This amount is 
$66,841,000 above the fiscal year 2011 enacted level and 
$3,390,000 below the budget request. The Committee encourages 
the IRS to tap resources available through user fee revenues to 
augment the direct discretionary appropriation for the BSM 
program.
    The Committee continues to believe that BSM is the IRS's 
highest management and administrative priority. As one of the 
Federal Government's largest, most visible, and sensitive 
modernization efforts, managing the risks inherent in BSM 
require vigilant management attention. To the IRS's credit, the 
program has made steady progress over the past few years. The 
replacement of the aging, vintage 1969 individual master file 
will permit daily, rather than weekly, updating of individual 
tax accounts.
    Completion of the core taxpayer account database, with 
anticipated deployment for the 2012 filing season is the 
cornerstone of modernization and a foundational prerequisite 
upon which the success of other major initiatives depends. The 
daily processing cycle is expected to generate more timely, 
accurate, and complete data resulting in more rapid direct 
deposit of refunds for electronic filers, faster account 
adjustments, and expedited resolution of taxpayer account 
issues and transactions. It will fundamentally transform the 
IRS's relationship with its accounts, and promote opportunities 
for both taxpayer service delivery and enforcement.
    The Committee remains concerned that IRS systems 
modernization, by its nature, is a high-risk endeavor, and 
appreciates that the IRS has, in recent years, satisfied the 
majority of developmental milestones planned for completion 
early, under budget, or within 10 percent of cost and schedule 
estimates. Because of the tendency for certain projects or 
components to exceed schedule and cost estimates, the Committee 
urges IRS management to maintain close routine scrutiny of cost 
and schedule factors.

               HEALTH INSURANCE TAX CREDIT ADMINISTRATION

Appropriations, 2011....................................     $15,481,000
Budget estimate, 2012...................................      18,029,000
Committee recommendation................................      15,481,000

                          PROGRAM DESCRIPTION

    This appropriation provides operating funds to administer 
the advance payment feature of a refundable trade adjustment 
assistance health insurance tax credit program to assist 
dislocated workers with their health insurance premiums. The 
tax credit program was enacted by the Trade Act of 2002 (Public 
Law 107-210) and became effective in August 2003.

                        COMMITTEE RECOMMENDATION

    The Committee recommendation provides $15,481,000 for the 
Health Insurance Tax Credit Administration in fiscal year 2012. 
This amount is the same as the fiscal year 2011 enacted level 
and $2,548,000 below the budget request.

          ADMINISTRATIVE PROVISIONS--INTERNAL REVENUE SERVICE

    The Committee has included five administrative provisions 
carried in prior appropriations acts as follows:
    Section 101 continues a provision allowing the IRS to 
transfer up to 5 percent of any appropriation made available to 
the agency in fiscal year 2012 to any other IRS account, with 
the exception of the Enforcement account, which is limited to 3 
percent. The IRS is directed to follow the Committee's 
reprogramming procedures outlined earlier in this report.
    Section 102 continues a provision maintaining a training 
program in taxpayers' rights and cross-cultural relations.
    Section 103 continues a provision requiring the IRS to 
institute and enforce policies and procedures, which will 
safeguard the confidentiality of taxpayer information.
    Section 104 continues a provision directing that funds 
shall be available for improved facilities and increased 
staffing to support a 1-800 help line service for taxpayers.
    Section 105 continues a provision that prohibits the use of 
funds in this act to enter into, renew, extend, administer, 
implement, enforce, provide oversight of, or make any payment 
related to any qualified tax collection contract.

         Administrative Provisions--Department of the Treasury

    The Committee includes 12 administrative provisions carried 
over from prior appropriations acts. The administrative 
provisions are as follows:
    Section 106 authorizes certain basic services within the 
Treasury Department in fiscal year 2012, including purchase of 
uniforms; maintenance, repairs, and cleaning; purchase of 
insurance for official motor vehicles operated in foreign 
countries; and contracts with the Department of State for 
health and medical services to employees and their dependents 
serving in foreign countries.
    Section 107 authorizes transfers, up to 2 percent, between 
Departmental Offices, Office of Inspector General, Special 
Inspector General for the Troubled Asset Relief Program, 
Financial Management Service, Alcohol and Tobacco Tax and Trade 
Bureau, Financial Crimes Enforcement Network, and the Bureau of 
the Public Debt appropriations under certain circumstances.
    Section 108 authorizes transfers, up to 2 percent, between 
the Internal Revenue Service and the Treasury Inspector General 
for Tax Administration under certain circumstances.
    Section 109 requires that the purchase of law enforcement 
vehicles be consistent with departmental vehicle management 
principles.
    Section 110 prohibits the Department of the Treasury and 
the Bureau of Engraving and Printing from redesigning the $1 
Federal Reserve Note.
    Section 111 authorizes the Secretary of the Treasury to 
transfer funds from Salaries and Expenses, Financial Management 
Service, to the Debt Collection Fund as necessary to cover the 
costs of debt collection. Such amounts shall be reimbursed to 
the Salaries and Expenses account from debt collections 
received in the Debt Collection Fund.
    Section 112 extends the authority to conduct a personnel 
management demonstration project.
    Section 113 requires prior approval for the construction 
and operation of a museum by the United States Mint.
    Section 114 prohibits the merger of the United States Mint 
and the Bureau of Engraving and Printing without prior approval 
of the committees of jurisdiction.
    Section 115 authorizes the Department's intelligence 
activities.
    Section 116 permits the Bureau of Engraving and Printing to 
use $5,000 from the Industrial Revolving Fund for reception and 
representation expenses.
    Section 117 requires the Secretary of the Treasury to 
develop an annual Capital Investment Plan.

                                TITLE II

    EXECUTIVE OFFICE OF THE PRESIDENT AND FUNDS APPROPRIATED TO THE 
                               PRESIDENT

                     Compensation of the President

Appropriations, 2011....................................        $450,000
Budget estimate, 2012...................................         450,000
Committee recommendation................................         450,000

                          PROGRAM DESCRIPTION

    This account provides for the compensation of the 
President, including an expense allowance as authorized by 3 
U.S.C. 102.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $450,000 for 
compensation of the President, including an expense allowance 
of $50,000. This is the same as the fiscal year 2011 enacted 
level and the same as the budget request. The expense account 
is for official use as authorized by title 3, United States 
Code, and is not considered taxable to the President. The bill 
specifies that any unused amount shall revert to the Treasury 
consistent with 31 U.S.C. 1552.

                            The White House


                         SALARIES AND EXPENSES

Appropriations, 2011....................................     $58,435,000
Budget estimate, 2012...................................      58,374,000
Committee recommendation................................      57,851,000

                          PROGRAM DESCRIPTION

    The ``Salaries and Expenses'' account of The White House 
provides staff assistance and administrative services for the 
direct support of the President. The office also serves as the 
President's representative before the media. In accordance with 
3 U.S.C. 105, the office also supports and assists the 
activities of the spouse of the President.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $57,851,000 
for The White House, Salaries and Expenses. The recommendation 
is $584,000 less than the fiscal year 2011 enacted level and is 
$523,000 less than the budget request.
    The Committee directs the Executive Office of the President 
to allocate sufficient resources to continue the robust 
operation of the Office of National AIDS Policy. The Committee 
directs the administration to continue to coordinate a 
Government-wide effort to develop and implement a domestic AIDS 
strategy, including the development of targets for improved 
prevention and treatment outcomes.

                 Executive Residence at the White House


                           OPERATING EXPENSES

Appropriations, 2011....................................     $13,673,000
Budget estimate, 2012...................................      13,658,000
Committee recommendation................................      13,536,000

                          PROGRAM DESCRIPTION

    These funds provide for the care, maintenance, repair, 
alteration, refurnishing, improvement, air-conditioning, 
heating, and lighting of the White House and the official and 
ceremonial functions of the President.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $13,536,000 
for the Executive Residence at the White House. The Committee 
recommendation is $137,000 less than the fiscal year 2011 
enacted level and $122,000 less than the budget request. The 
bill also continues certain restrictions on reimbursable 
expenses for use of the Executive Residence.

                   White House Repair and Restoration

Appropriations, 2011....................................      $2,001,000
Budget estimate, 2012...................................       1,000,000
Committee recommendation................................         990,000

                          PROGRAM DESCRIPTION

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

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $990,000 for 
White House Repair and Restoration, $10,000 less than the 
budget request and $1,011,000 below the fiscal year 2011 
enacted level.

                      Council of Economic Advisers


                         SALARIES AND EXPENSES

Appropriations, 2011....................................      $4,192,000
Budget estimate, 2012...................................       4,403,000
Committee recommendation................................       4,192,000

                          PROGRAM DESCRIPTION

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

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $4,192,000 for 
salaries and expenses of the Council of Economic Advisers. This 
amount is $211,000 less than the budget request and is equal to 
the fiscal year 2011 enacted level.

        National Security Council and Homeland Security Council


                         SALARIES AND EXPENSES

Appropriations, 2011....................................     $13,048,000
Budget estimate, 2012...................................      13,074,000
Committee recommendation................................      13,048,000

                          PROGRAM DESCRIPTION

    The National Security Council advises the President in 
integrating domestic, foreign, and military policies related to 
national security and the Homeland Security Council advises the 
President in coordinating homeland security-related policies 
across the Government.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $13,048,000 
for the salaries and expenses of the National Security Council 
and the Homeland Security Council. This amount is $26,000 less 
than the budget request and equal to the fiscal year 2011 
enacted level.
    The budget requests that funding for the Homeland Security 
Council, previously funded within The White House Office 
account, be combined with funding for the National Security 
Council. The Committee does not oppose the proposed 
reorganization and recommends funding for the Homeland Security 
Council together with the National Security Council within a 
new account titled ``National Security Council and Homeland 
Security Council.''

                        Office of Administration


                         SALARIES AND EXPENSES

Appropriations, 2011....................................    $115,049,000
Budget estimate, 2012...................................     115,848,000
Committee recommendation................................     114,908,000

                          PROGRAM DESCRIPTION

    The Office of Administration's mission is to provide high-
quality, cost-effective administrative services to the 
Executive Office of the President. These services, defined by 
Executive Order 12028 of 1977, include financial, personnel, 
library and records services, information management systems 
support, and general office services.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $114,908,000 
for the Office of Administration for fiscal year 2012, a 
decrease of $141,000 to the fiscal year 2011 enacted level and 
$940,000 less than the budget request.
    The Committee's recommendation includes $10,670,000 to 
stabilize and modernize the information technology 
infrastructure within the Executive Office of the President. 
This funding supports the continuation of a major initiative 
that will refresh the aging information technology 
infrastructure, strengthen disaster recovery and information 
security capabilities, and transition the Executive Office of 
the President's communications architecture to integrate mobile 
devices while complying with security and records management 
requirements.
    The Committee directs the Office of Administration to place 
a top priority on the implementation of comprehensive policies 
and procedures for the preservation of all records, including 
electronic records such as e-mails, videos, and social 
networking communication, consistent with the requirements of 
the Presidential Records Act, the Federal Records Act, and 
other pertinent laws. The Office of Administration shall work 
closely with the National Archives and Records Administration 
[NARA] to ensure the full and complete maintenance and 
formatting of electronic records that will eventually be turned 
over to NARA. The Committee expects the Office of 
Administration to keep the Committee fully apprised of funding 
needs related to record preservation and retention.

                    Office of Management and Budget


                         salaries and expenses

Appropriations, 2011....................................     $91,750,000
Budget estimate, 2012...................................      91,660,000
Committee recommendation................................      90,833,000

                          PROGRAM DESCRIPTION

    The Office of Management and Budget [OMB] assists the 
President in the discharge of his budgetary, management, and 
other executive responsibilities.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $90,833,000 
for the Office of Management and Budget which is $917,000 below 
the fiscal year 2011 enacted level and $827,000 below the 
budget request.
    The Committee relies on all entities receiving Federal 
funds, including OMB, to provide detailed information about 
budget requests and activities conducted using previously 
appropriated funds. The Committee expects OMB to provide timely 
and complete responses to the Committee to all requests for 
information, including requests related to the budget request 
for OMB and the Executive Office of the President.
    The Committee directs OMB to submit a written report to the 
Committee within 120 days of enactment detailing the current 
capabilities of and deficiencies in the Federal Government's 
core budgeting system. This system is used Government-wide by 
all Federal agencies for documenting and estimating budget 
activities, ensuring data integrity with other financial and 
accounting systems, and transmitting a detailed budget request 
to the Congress. A robust system is an essential resource for 
providing data needed to support thorough budget analysis by 
both the administration and the Congress.

                  Government-wide Management Councils


                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2011....................................   ($17,000,000)
Budget estimate, 2012...................................    (20,000,000)
Committee recommendation................................    (17,000,000)

                          PROGRAM DESCRIPTION

    The Government-wide Management Councils provide forums for 
improving government performance by facilitating experience 
exchange and identification of best practices among leaders in 
Federal agencies. Interagency groups funded under this account 
include the President's Management Council for overall 
management improvement initiatives, the Chief Financial 
Officers Council for financial management initiatives, the 
Chief Information Officers Council for information technology 
initiatives, the Chief Human Capital Officers Council for human 
capital initiatives, the Chief Acquisition Officers Council for 
procurement initiatives, and the Performance Improvement 
Council for performance improvement initiatives. Funding is 
derived via transfer from the head of each executive department 
and agency.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $17,000,000 for Government-wide 
Management Councils, by transfer, which is equal to the fiscal 
year 2011 enacted level and $3,000,000 below the budget 
request. The Committee supports the activities of the 
Government-wide Management Councils and recognizes that regular 
communication among agency leaders can lead to improved 
performance. The Committee directs the Executive Office of the 
President to continue to include a budgetary justification for 
each council in the annual budget request and to clearly note 
in the budget justification any items requested in the budget 
for Government-wide initiatives led or coordinated through the 
councils.

                 Office of National Drug Control Policy


                         SALARIES AND EXPENSES

Appropriations, 2011....................................     $27,084,000
Budget estimate, 2012...................................      23,413,000
Committee recommendation................................      26,125,000

                          PROGRAM DESCRIPTION

    The Office of National Drug Control Policy [ONDCP], 
established by the Anti-Drug Abuse Act of 1988, and 
reauthorized by Public Law 109-469, is charged with developing 
policies, objectives, and priorities for the National Drug 
Control Program. In addition, ONDCP administers the High 
Intensity Drug Trafficking Areas program, the Drug-Free 
Communities Support Program, and several other related 
initiatives.
    This account provides funding for personnel compensation, 
travel, and other basic operations of the Office, and for 
general policy research to support the formulation of the 
National Drug Control Strategy.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $26,125,000 
for ONDCP's salaries and expenses. This amount is $959,000 
below the fiscal year 2011 enacted level and $2,712,000 above 
the budget request. The funding level prevents a reduction-in-
force of 20 FTE and maintains critical positions. Due to budget 
constraints, no funding is provided for policy research.
    The Committee remains interested in ONDCP's implementation 
of the study conducted by the National Academy of Public 
Administration [NAPA], in particular, fostering openness and 
participation by staff at ONDCP and ensuring that qualified 
individuals hold leadership positions at ONDCP. The Committee 
applauds efforts by top leadership to listen to stakeholders 
and applauds efforts with interagency working groups and their 
task forces. The Committee directs ONDCP to provide an updated 
report on further actions and improvements taken since the last 
ONDCP report on this topic, which shall be due 30 days after 
enactment of this act.
    The administration's new drug control strategy places an 
increased emphasis on demand reduction, therefore, staffing 
allocations within the Office of Supply Reduction and the 
Office of Demand Reduction should reflect that strategy. The 
Committee urges ONDCP to ensure that Office of Demand Reduction 
staff--both current and new--have expertise in prevention and 
making comprehensive community action a focal point.
    The Committee notes that often a lengthy clearance process 
at the Executive Office of the President [EOP] delays 
submission of information required by Congress in a timely 
manner and urges EOP to improve ONDCP's responsiveness and 
ability to provide information critical to the Committee's 
ability to make informed budgetary decisions. Language has also 
been included in this topic under the White House Office 
account.
    The Committee supports the goals of the Office of National 
Drug Control Policy's national action plan, ``Epidemic: 
Responding to America's Prescription Drug Abuse Crisis'', and 
encourages the Director to coordinate interagency efforts and 
partnerships with law enforcement to implement recommendations 
contained within the plan. The Committee requests quarterly 
reports on the Office's continued efforts to address 
prescription drug abuse and diversion based upon the plan's 
recommendations.

                  Funds Appropriated to the President


                     FEDERAL DRUG CONTROL PROGRAMS

                 HIGH INTENSITY DRUG TRAFFICKING AREAS

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2011....................................    $238,522,000
Budget estimate, 2012...................................     200,000,000
Committee recommendation................................     238,522,000

                          PROGRAM DESCRIPTION

    The High Intensity Drug Trafficking Areas [HIDTA] program 
was established by the Anti-Drug Abuse Act of 1988 (Public Law 
100-690) and the Office of National Drug Control Policy's 
reauthorization (Public Law 109-469) to provide assistance to 
Federal, State, and local law enforcement entities operating in 
those areas most adversely affected by drug trafficking.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $238,522,000 
for the HIDTA program, the same as the fiscal year 2011 level 
and $38,522,000 above the budget request. The Committee directs 
that funding shall be provided for the existing HIDTAs at no 
less than the fiscal year 2011 level.
    ONDCP is directed to consult with the HIDTAs in advance of 
deciding programmatic spending allocations for discretionary 
(supplemental) funding.
    The Committee recommendation specifies that up to 
$2,700,000 may be used for auditing services and associated 
activities, and up to $500,000 shall be used to ensure the 
continued operation and maintenance of the Performance 
Management System.
    The Committee directs that the HIDTA funds be transferred 
to the appropriate drug control agencies expeditiously and 
includes provisions in the bill to help prevent delay.
    The Committee recognizes the National HIDTA Assistance 
Center for providing programmatic support to the HIDTA program 
to include training, financial management/audit review, and 
other essential services.
    The Committee retains a provision allowing unexpended funds 
obligated prior to 2 years ago for programs addressing the 
treatment or prevention of drug use to be used for other 
approved HIDTA activities.
    The HIDTA funds should not be used to supplant existing 
support for ongoing Federal, State, or local drug control 
operations normally funded out of the operating budgets of each 
agency. ONDCP is directed to withhold all HIDTA funds from a 
State until such time as a State or locality has met its 
financial obligation.

                  OTHER FEDERAL DRUG CONTROL PROGRAMS

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2011....................................    $140,618,000
Budget estimate, 2012...................................     143,600,000
Committee recommendation................................     105,950,000

                          PROGRAM DESCRIPTION

    The Anti-Drug Abuse Act of 1988 (Public Law 100-690), and 
the Office of National Drug Control Policy Reauthorization Act 
(Public Law 109-469) established this account to be 
administered by the Director of the Office of National Drug 
Control Policy. The funds appropriated to the program support 
high-priority drug control programs and may be transferred to 
drug control agencies.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $105,950,000 
for Other Federal Drug Control Programs, which is $34,668,000 
below the fiscal year 2011 enacted level and $37,650,000 below 
the budget request. Within this amount, the Committee provides 
the following funding levels:

------------------------------------------------------------------------
                                                              Amount
------------------------------------------------------------------------
National Youth Anti-Drug Media Campaign.................  ..............
Drug-Free Communities Support Program...................      92,600,000
    National Community Anti-Drug Coalition training.....       2,000,000
Drug court training and technical assistance............       1,400,000
Anti-doping activities..................................       8,900,000
World Anti-Doping Agency [WADA].........................       1,900,000
Activities as authorized by Public Law 109-469, section        1,150,000
 1105...................................................
Performance Measures Development........................  ..............
------------------------------------------------------------------------

    National Youth Anti-drug Media Campaign.--The Committee has 
believed in the importance of maintaining anti-drug messaging 
to the Nation's youth. However, during the course of the Media 
Campaign, it has received mixed reviews from independent 
sources. During times of fiscal austerity such as the Nation is 
currently experiencing, funding even the best-performing 
programs is difficult. Therefore, the Committee reluctantly 
provides no funding for the Media Campaign.
    Drug-free Communities Support Program.--ONDCP directs the 
Drug-Free Communities Support Program [DFCSP] in partnership 
with the Substance Abuse and Mental Health Services 
Administration. DFCSP provides dollar for dollar matching 
grants of up to $125,000 to local coalitions that mobilize 
their communities to prevent youth alcohol, tobacco, illicit 
drug, and inhalant abuse. Such grants support coalitions of 
youth; parents; media; law enforcement; school officials; 
faith-based organizations; fraternal organizations; State, 
local, and tribal government agencies; healthcare 
professionals; and other community representatives. The DFCSP 
enables these coalitions to strengthen their coordination and 
prevention efforts, encourage citizen participation in 
substance abuse reduction efforts, and disseminate information 
about effective programs. The Committee provides $92,600,000 
for the continuation of the DFCSP.
    The Committee includes a provision in the bill directing 
ONDCP to provide $2,000,000 of DFCSP funds for training and 
related purposes as authorized by section 4 of Public Law 107-
82, as amended by Public Law 109-469.
    United States Anti-Doping Agency.--The United States Anti-
Doping Agency [USADA] is the independent anti-doping agency for 
Olympic sports in the United States, and is responsible for 
managing the testing and adjudication process for U.S. Olympic, 
Pan Am and Paralympic athletes. As a nonprofit corporation 
under the leadership of an independent Board of Directors, 
USADA has the authority to set forth guiding principles in 
anti-doping policy and to enforce any doping violations. In 
addition to managing collection and testing procedures, USADA 
is also responsible for enhancing research efforts and 
promoting educational programs to inform athletes of the rules 
governing the use of performance enhancing substances, as well 
as the ethics of doping and its harmful health effects. The 
Committee provides $8,900,000 for USADA.

                          Unanticipated Needs

Appropriations, 2011....................................        $998,000
Budget estimate, 2012...................................       1,000,000
Committee recommendation................................         988,000

                          PROGRAM DESCRIPTION

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

                        COMMITTEE RECOMMENDATION

    The Committee recommends $988,000, which is $10,000 less 
than the amount appropriated in fiscal year 2011 and $12,000 
below the budget request.

           Partnership Fund for Program Integrity Innovation


                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2011....................................................
Budget estimate, 2012...................................         $20,000
Committee recommendation................................................

                          PROGRAM DESCRIPTION

    The Partnership Fund for Program Integrity Innovation 
(Partnership Fund) was initiated in fiscal year 2010. The 
Partnership Fund supports pilot programs designed to reduce 
errors and improve efficiency and service of Federal programs 
administered by States. The pilot programs focus on 
coordinating State-administered Federal programs both within 
States and between State and Federal officials and on 
technology solutions that may serve as best practices in the 
future. The Director of the Office of Management and Budget 
[OMB] chairs an interagency council consisting of 
representatives of appropriate Federal agencies, States, and 
other stakeholders. The council analyzes and selects pilot 
programs for funding, develops strategies and goals for the 
overall program as well as for each pilot program, and develops 
methodologies for assessing the performance of the overall 
program and the pilot programs.

                        COMMITTEE RECOMMENDATION

    The Committee does not recommend additional funding for the 
Partnership Fund in fiscal year 2012. The Committee directs the 
administration to continue to leverage funds provided in fiscal 
year 2010 to continue the initiative during fiscal year 2012.
    The Committee is pleased with the proposed initiative to 
improve the operations of State-administered Federal programs. 
Efficiencies can be gained by better coordinating Federal 
programs, and technology may play a significant role in such 
improvements. The Committee reminds the interagency council of 
the semiannual progress reports that are required to be 
submitted to the Committees on Appropriations.
    The Committee notes that OMB does not administer or execute 
Federal programs. While the Committee expects OMB to continue 
to play a coordinating role in designing pilot programs, 
developing performance measures, and allocating funds, the 
Committee directs that the interagency council be the exclusive 
decisionmaking body for such activities. As Chair of the 
Interagency Council, the Committee directs the Director of OMB 
to seek consensus and input to the maximum extent possible from 
council members and participating Federal and State agencies.

  Integrated, Efficient, and Effective Uses of Information Technology


                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2011....................................................
Budget estimate, 2012...................................     $60,000,000
Committee recommendation................................................

                          PROGRAM DESCRIPTION

    The fiscal year 2012 budget request seeks $60,000,000 in 
dedicated funding for the Integrated, Efficient, and Effective 
Uses of Information Technology [IEEUIT] program. The goal of 
the IEEUIT is to turn around poorly performing information 
technology projects and to centralize key information 
technology [IT] services for Government agencies, saving 
taxpayer dollars in the future that would otherwise be spent on 
inefficient and duplicative IT services. The Executive Office 
of the President began a major IT reform effort in fiscal year 
2009 by leveraging existing resources provided for management 
improvements.

                        COMMITTEE RECOMMENDATION

    The Committee lauds the administration's comprehensive and 
innovative approach to improving IT development processes and 
maximizing efficiencies across the Federal IT portfolio. The 
Federal Government invests $80,000,000,000 a year in IT 
development for a wide variety of capabilities, spanning, for 
example, from basic desktop computing to a searchable database 
for investigating terrorist financing activity.
    Using resources provided for general management 
improvements, in 2009 the administration began a major IT 
reform effort focused on improving poorly performing IT 
projects, consolidating costly data centers, and consolidating 
common IT functions across Federal agencies. The administration 
estimates that taxpayer savings realized to date under the 
current IT reform initiative totals approximately 
$3,000,000,000.
    The Committee is unable to recommend additional dedicated 
funding for the IEEUIT at this time. The Committee directs the 
administration to continue current IT reform efforts during 
fiscal year 2012 using resources provided for the Executive 
Office of the President and other funding sources where 
appropriate. The Committee directs the administration to keep 
the Committee apprised of the results of such efforts.
    The Committee reminds the Executive Office of the President 
that the Committee expects to be regularly apprised of how 
Government-wide IT reform efforts affect agency-specific 
projects and missions on a case-by-case basis. The Committee 
directs that IT reform initiatives shall not be a substitute 
for the Committee's routine consideration of agency needs in 
accordance with the regular budget process. Finally, the 
Committee directs the Executive Office of the President to 
notify the Committee immediately upon any change in an agency 
spending plan pursuant to any efforts to modernize, streamline, 
or improve Federal IT projects.

                  Special Assistance to the President


                         SALARIES AND EXPENSES

Appropriations, 2011....................................      $4,549,000
Budget estimate, 2012...................................       4,328,000
Committee recommendation................................       4,328,000

                          PROGRAM DESCRIPTION

    This appropriation provides for staff and expenses to 
enable the Vice President to provide assistance to the 
President in connection with the performance of executive 
duties and responsibilities. These funds also support the 
official activities of the spouse of the Vice President. The 
Vice President also has a staff funded by the Senate to assist 
him in the performance of his legislative duties.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $4,328,000 for 
special assistance to the President. This amount is the same as 
the budget request and $221,000 below the fiscal year 2011 
enacted level.

                Official Residence of the Vice President


                           OPERATING EXPENSES

Appropriations, 2011....................................        $326,000
Budget estimate, 2012...................................         307,000
Committee recommendation................................         307,000

                          PROGRAM DESCRIPTION

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

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $307,000 for 
the official residence of the Vice President. This amount is 
the same as the budget request and $19,000 below the fiscal 
year 2011 enacted level.

Administrative Provisions--Executive Office of the President and Funds 
                     Appropriated to the President

    Section 201 continues a provision that provides flexibility 
in the use of funds in accounts under the Executive Office of 
the President.
    Section 202 requires a detailed financial plan by the 
Director of ONDCP prior to the obligation of funds in fiscal 
year 2012.
    Section 203 allows for the transfer of up to 2 percent 
among programs within ONDCP.
    Section 204 establishes reprogramming requirements for 
ONDCP.
    Section 205 rescinds unobligated balances from the 
Counterdrug Technology Assessment Center program.

                               TITLE III

                             THE JUDICIARY

                          PROGRAM DESCRIPTION

    Established under Article III of the Constitution, the 
judicial branch of Government is a separate but equal branch. 
The Federal judiciary consists of the Supreme Court, United 
States Courts of Appeals, District Courts, Bankruptcy Courts, 
Court of International Trade, Court of Federal Claims, and 
several other entities and programs. The organization of the 
judiciary, the district and circuit boundaries, the places of 
holding court, and the number of Federal judges are legislated 
by the Congress and signed into law by the President.
    The Committee's recommended funding levels support the 
Federal judiciary's role of providing equal justice under the 
law and include sufficient funds to support this critical 
mission. The recommended funding level includes the salaries of 
judges and support staff and the operation and security of our 
Nation's courts.
    The judicial branch is subject to the same funding 
constraints facing the executive and legislative branches. It 
is imperative that the Federal judiciary devote its resources 
primarily to the retention of staff. Further, it is also 
important that the judiciary contain controllable costs such as 
travel, construction, and other expenses.

                   Supreme Court of the United States

                         SALARIES AND EXPENSES

Appropriations, 2011....................................     $73,921,000
Budget estimate, 2012...................................      75,551,000
Committee recommendation................................      74,819,000

                          PROGRAM DESCRIPTION

    The United States Supreme Court consists of nine justices 
appointed under Article III of the Constitution of the United 
States, one of whom is appointed as Chief Justice of the United 
States. The Supreme Court acts as the final arbiter in the 
Federal court system.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $74,819,000 
for the Justices, their supporting personnel, and the costs of 
operating the Supreme Court, excluding the care of the building 
and grounds. The recommendation is $898,000 above the fiscal 
year 2011 funding level and consistent with the budget re-
estimate. As requested, funding is provided for 12 new police 
officers.

                    CARE OF THE BUILDING AND GROUNDS

Appropriations, 2011....................................      $8,159,000
Budget estimate, 2012...................................       8,504,000
Committee recommendation................................       8,159,000

                          PROGRAM DESCRIPTION

    Care of the Building and Grounds, for expenditure by the 
Architect of the Capitol, provides for the structural and 
mechanical care of the United States Supreme Court Building and 
Grounds, including maintenance and operation of mechanical, 
electrical, and electronic equipment.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $8,159,000 for 
personnel and other services related to the Supreme Court 
building and grounds, which is supervised by the Architect of 
the Capitol. The recommendation is the same as the fiscal year 
2011 funding level and $345,000 below the budget request.
    The Court shall continue to provide to the Committee 
detailed single-spaced quarterly reports on the Supreme Court 
modernization project, including descriptions; timeliness; 
milestones; and funding committed, obligated, and expended, as 
well as any unobligated balances of each major capital project. 
In addition, the report should include the identification, 
descriptions, and status of any contract claims.

         United States Court of Appeals for the Federal Circuit


                         salaries and expenses

Appropriations, 2011....................................     $32,511,000
Budget estimate, 2012...................................      35,139,000
Committee recommendation................................      31,913,000

                          PROGRAM DESCRIPTION

    The United States Court of Appeals for the Federal Circuit 
was established on October 1, 1982 under Article III of the 
Constitution. The court was formed by the merger of the United 
States Court of Customs and Patent Appeals and the appellate 
division of the United States Court of Claims. The court 
consists of 12 judges who are appointed by the President, with 
the advice and consent of the Senate. Judges are appointed to 
the court under Article III of the Constitution of the United 
States.
    The Federal Circuit has nationwide jurisdiction in a 
variety of subjects, including international trade, Government 
contracts, patents, certain claims for money from the United 
States Government, Federal personnel, and veterans' benefits. 
Appeals to the court come from all Federal district courts, the 
United States Court of Federal Claims, the United States Court 
of International Trade, and the United States Court of Veterans 
Appeals. The court also takes appeals of certain administrative 
agencies' decisions, including the Merit Systems Protection 
Board, the Board of Contract Appeals, the Board of Patent 
Appeals and Interferences, and the Trademark Trial and Appeals 
Board. Decisions of the United States International Trade 
Commission, the Office of Compliance of the United States 
Congress, and the Government Accountability Office Personnel 
Appeals Board are also reviewable by the court.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $31,913,000. 
The recommendation is $598,000 below the fiscal year 2011 
funding level, and $3,226,000 below the budget request.

               United States Court of International Trade


                         salaries and expenses

Appropriations, 2011....................................     $21,447,000
Budget estimate, 2012...................................      22,891,000
Committee recommendation................................      20,968,000

                          PROGRAM DESCRIPTION

    The United States Court of International Trade, located in 
New York City, consists of nine Article III judges. The court 
has exclusive nationwide jurisdiction over civil actions 
brought against the United States, its agencies and officers, 
and certain civil actions brought by the United States, arising 
out of import transactions and the administration and 
enforcement of the Federal customs and international trade 
laws.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $20,968,000. 
The recommendation is $479,000 below the fiscal year 2011 
funding level and $1,923,000 below the budget request.

    Courts of Appeals, District Courts, and Other Judicial Services


                         SALARIES AND EXPENSES

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2011....................................  $5,004,221,000
Budget estimate, 2012...................................   5,236,166,000
Committee recommendation................................   4,970,646,000

                          PROGRAM DESCRIPTION

    Salaries and Expenses is one of four accounts that provide 
total funding for the Courts of Appeals, District Courts, and 
Other Judicial Services. In addition to funding the salaries of 
judges and support staff, this account also funds the operating 
costs of appellate, district, and bankruptcy courts, the Court 
of Federal Claims, and probation and pretrial services offices.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $4,970,646,000 
for salaries and expenses. The recommendation is $33,575,000 
below the fiscal year 2011 funding level and $265,520,000 below 
the budget request.
    The Committee is aware that the Judicial Conference has 
communicated to judges and court staff the need to identify 
ways to reduce operational and administrative costs, given the 
current fiscal climate. The Committee endorses these efforts 
and urges all courts to review all options in order to help 
contain costs. The Committee applauds the Court of 
International Trade, which historically has managed its budget 
well as evidenced by its minimal funding requests year after 
year. On the other hand, the budget for Defender Services, 
currently funded at more than $1,000,000,000, has grown 
significantly in recent years. While the services provided by 
this program are essential, this trend is not sustainable, 
given fiscal realities.
    Perimeter Security Pilot Project.--The Judiciary submitted 
its report evaluating the Judicial Perimeter Security Pilot 
Program on October 20, 2010, and a follow-up report on 
execution of the Judicial Perimeter Security Pilot Program on 
August 8, 2011. The evaluation report concluded that having 
unity of command, CSO guards at all posts, and national 
standards for security coverage resulted in significant 
security improvements at the pilot sites. The follow-up report 
described how a Judicial Perimeter Security Program could be 
implemented at additional primary courthouses. While a 
meritorious program, given budget constraints, further 
implementation would be feasible only if cost neutral. The 
Judiciary is encouraged to identify such opportunities. Section 
306 authorizing the pilot is continued in order to allow the 
Judiciary to maintain the pilot at the seven existing locations 
and to allow for expansion of the pilot to new locations, if it 
can be done in a cost neutral manner.
    Capital Security Program.--Recognizing the impact of the 
Judiciary's rental expenses on its ability to maintain support 
of critical court requirements, the Committee supports the work 
of the Judiciary in revising its long-range planning process 
for facility needs. Budgetary realities, as well as new space 
design criteria for courtroom sharing, will result in fewer new 
courthouses recommended by the Judicial Conference for funding 
in the future.
    Security deficiencies in existing courthouses still must be 
addressed and can be accomplished in most instances with 
considerably less funding than would be required for a new 
facility. Therefore, funding is included within the General 
Services Administration's Federal Buildings Fund to establish a 
Judiciary Capital Security Program, which will address security 
deficiencies in existing buildings where physical, interior 
alterations are viable. The Judiciary and the GSA shall work 
collaboratively to assess the building conditions, viability of 
long-term use, and structural capacity for these stand-alone 
architectural solutions which may include: building additional 
corridors; adding or reconfiguring elevators; building visual 
barriers; moving air-intakes; and enlarging security screening 
areas.

                 VACCINE INJURY COMPENSATION TRUST FUND

Appropriations, 2011....................................      $4,775,000
Budget estimate, 2012...................................       5,011,000
Committee recommendation................................       4,775,000

                          PROGRAM DESCRIPTION

    Enacted by the National Childhood Vaccine Injury Act of 
1986 (Public Law 99-660), the Vaccine Injury Compensation 
Program is a Federal no-fault program designed to resolve a 
perceived crisis in vaccine tort liability claims that 
threatened the continued availability of childhood vaccines 
nationwide. The statute's primary intention is the creation of 
a more efficient adjudicatory mechanism that ensures a no-fault 
compensation result for those allegedly injured or killed by 
certain covered vaccines. This program protects the 
availability of vaccines in the United States by diverting a 
substantial number of claims from the tort arena.
    Not only did this act create a special fund to pay 
judgments awarded under the act, but it also created the Office 
of Special Masters within the United States Court of Federal 
Claims to hear vaccine injury cases. The act stipulates that up 
to eight special masters may be appointed for this purpose. The 
special masters expenditures are reimbursed to the judiciary 
for vaccine injury cases from a special fund set up under the 
Vaccine Act.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $4,775,000. 
The recommendation is the same as the fiscal year 2011 funding 
level and $236,000 below the budget request.

                           DEFENDER SERVICES

Appropriations, 2011....................................  $1,025,693,000
Budget estimate, 2012...................................   1,098,745,000
Committee recommendation................................   1,034,182,000

                          PROGRAM DESCRIPTION

    The Defender Services program ensures the right to counsel 
guaranteed by the Sixth Amendment, the Criminal Justice Act (18 
U.S.C. 3006A(e)) and other congressional mandates for those who 
cannot afford to retain counsel and other necessary defense 
services. The Criminal Justice Act provides that courts appoint 
counsel from Federal public and community defender 
organizations or from a panel of private attorneys established 
by the court. The Defender Services program helps to maintain 
public confidence in the Nation's commitment to equal justice 
under the law and ensures the successful operation of the 
constitutionally based adversary system of justice by which 
Federal criminal laws and federally guaranteed rights are 
enforced.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of 
$1,034,182,000. The recommendation is $8,489,000 above the 
fiscal year 2011 funding level and $64,563,000 below the budget 
request. This program is urged to scrutinize its costs and 
reduce expenses in the future.

                    FEES OF JURORS AND COMMISSIONERS

Appropriations, 2011....................................     $52,305,000
Budget estimate, 2012...................................      59,727,000
Committee recommendation................................      59,000,000

                          PROGRAM DESCRIPTION

    This account provides for the statutory fees and allowances 
of grand and petit jurors and for the compensation of jury and 
land commissioners. Budgetary requirements depend primarily 
upon the volume and the length of jury trials demanded by 
parties to both civil and criminal actions and the number of 
grand juries being convened by the courts at the request of the 
United States Attorneys.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $59,000,000. 
The recommendation is $6,695,000 above the fiscal year 2011 
funding level and $727,000 below the budget request.

                             COURT SECURITY

                     (INCLUDING TRANSFERS OF FUNDS)

Appropriations, 2011....................................    $466,672,000
Budget estimate, 2012...................................     513,058,000
Committee recommendation................................     500,000,000

                          PROGRAM DESCRIPTION

    The Court Security appropriation was established in 1983 
and funds the necessary expenses incident to the provision of 
protective guard services, and the procurement, installation, 
and maintenance of security systems and equipment for United 
States courthouses and other facilities housing Federal court 
operations, including building access control, inspection of 
mail and packages, directed security patrols, perimeter 
security provided by the Federal Protective Service, and other 
similar activities as authorized by section 1010 of the 
Judicial Improvement and Access to Justice Act (Public Law 100-
702).

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $500,000,000. 
The recommendation is $33,328,000 above the fiscal year 2011 
funding level and $13,058,000 below the budget request.

           Administrative Office of the United States Courts


                         SALARIES AND EXPENSES

Appropriations, 2011....................................     $82,909,000
Budget estimate, 2012...................................      88,455,000
Committee recommendation................................      82,000,000

                          PROGRAM DESCRIPTION

    The Administrative Office [AO] of the United States Courts 
was created in 1939 by an act of Congress. It serves the 
Federal judiciary in carrying out its constitutional mission to 
provide equal justice under the law. Beyond providing numerous 
services to the Federal courts, the AO provides support and 
staff counsel to the Judicial Conference of the United States 
and its committees, and implements Judicial Conference policies 
as well as applicable Federal statutes and regulations. The AO 
is the focal point for communication and coordination within 
the Federal judiciary and with Congress, the executive branch, 
and the public on behalf of the judiciary.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $82,000,000. 
This recommendation is $909,000 below the fiscal year 2011 
funding level and $6,455,000 below the budget request.

                        Federal Judicial Center


                         SALARIES AND EXPENSES

Appropriations, 2011....................................     $27,273,000
Budget estimate, 2012...................................      29,029,000
Committee recommendation................................      27,000,000

                          PROGRAM DESCRIPTION

    The Federal Judicial Center, located in Washington, DC, 
improves the management of Federal judicial dockets and court 
administration through education for judges and staff, and 
research, evaluation, and planning assistance for the courts 
and the Judicial Conference. The Center's responsibilities 
include educating judges and other judicial branch personnel 
about legal developments and efficient litigation management 
and court administration. Additionally, the Center also 
analyzes the efficacy of case and court management procedures 
and ensures the Federal judiciary is aware of the methods of 
best practice.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $27,000,000. 
The recommendation is $273,000 below the fiscal year 2011 
funding level and $2,029,000 below the budget request.

                       Judicial Retirement Funds


                    PAYMENT TO JUDICIARY TRUST FUNDS

Appropriations, 2011....................................     $90,361,000
Budget estimate, 2012...................................     103,768,000
Committee recommendation................................     103,768,000

                          PROGRAM DESCRIPTION

    The funds in this account cover the estimated future 
benefit payments to be made to retired bankruptcy judges and 
magistrate judges, claims court judges, and spouses and 
dependent children of deceased judicial officers.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $103,768,000 
for payments to the Judicial Officers' Retirement Fund and the 
Claims Court Judges Retirement Fund. The recommendation is 
$13,407,000 above the fiscal year 2011 funding level and 
consistent with the budget request.

                  United States Sentencing Commission


                         SALARIES AND EXPENSES

Appropriations, 2011....................................     $16,803,000
Budget estimate, 2012...................................      17,906,000
Committee recommendation................................      16,500,000

                          PROGRAM DESCRIPTION

    The United States Sentencing Commission establishes, 
reviews, and revises sentencing guidelines, policies, and 
practices for the Federal criminal justice system. The 
Commission is also required to monitor the operation of the 
guidelines and to identify and report necessary changes to the 
Congress.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $16,500,000. 
The recommendation is $303,000 below the fiscal year 2011 
funding level and $1,406,000 below the budget request.

                Administrative Provisions--The Judiciary

    The Committee recommends the following administrative 
provisions for the judiciary.
    Section 301 allows the judiciary to expend funds for the 
employment of experts and consultative services.
    Section 302 allows the judiciary, subject to the 
Committee's reprogramming procedures, to transfer up to 5 
percent between appropriations, but limits to 10 percent the 
amount that may be transferred into any one appropriation.
    Section 303 limits official reception and representation 
expenses incurred by the Judicial Conference of the United 
States to no more than $11,000.
    Section 304 requires the Administrative Office to submit an 
annual financial plan for the judiciary within 90 days of 
enactment of this act.
    Section 305 grants the judicial branch the same tenant 
alteration authorities as the executive branch.
    Section 306 provides continued authority for a court 
security pilot program.
    Section 307 extends for 1 year the authorization of a 
temporary judgeship in Hawaii and a temporary judgeship in 
Kansas.

                                TITLE IV

                          DISTRICT OF COLUMBIA

                            Federal Payments

                             FEDERAL FUNDS

    A total of $658,118,000 in Federal funds are estimated to 
be available to the District of Columbia government, the 
District of Columbia Courts, the District of Columbia Court 
Services and Offender Supervision Agency, and other D.C. 
entities. This is $40,600,000 below the fiscal year 2011 
enacted level and $58,582,000 below the budget request. A total 
of $1,015,449,000 in Federal funds will be received by the 
District government from the various Federal grant programs, 
including Federal reimbursements from such programs as Medicaid 
and Medicare.

              FEDERAL PAYMENT FOR RESIDENT TUITION SUPPORT

Appropriations, 2011....................................     $35,030,000
Budget estimate, 2012...................................      35,100,000
Committee recommendation................................      30,000,000

                          PROGRAM DESCRIPTION

    The Resident Tuition Support program was created by the 
District of Columbia College Access Act of 1999 (Public Law 
106-98), expanded through the District of Columbia College 
Access Improvement Act of 2002 (Public Law 107-157), and 
amended and reauthorized through Public Law 110-97. This 
program provides eligible college-bound District residents the 
opportunity to expand their higher education choices.
    Under the program, financial assistance is available to 
qualified District residents who attend public colleges outside 
of the District of Columbia, private postsecondary institutions 
in the District of Columbia, Maryland, or Virginia, or any 
historically black college or university. The private-school 
tuition grants are restricted to nonprofit institutions. 
Students who attend public schools receive assistance equal to 
the difference between the tuition paid by residents of the 
State in which the institution is located and the tuition 
charged to nonresident students, with an annual limit of 
$10,000 and a lifetime limit of $50,000. Private-school 
students receive a $2,500 maximum annual grant, with a lifetime 
limit of $12,500.
    Since its inception over a decade ago, the program has 
disbursed more than $265,000,000 through December 31, 2010 for 
the benefit of more than 16,265 District of Columbia residents, 
with grants averaging $6,449 per year. Sixty percent of the 
program grantees are the first in their families to attend 
college. Program participants have enrolled in more than 300 
colleges and universities in 48 States. This has brought an 
infusion of the District's students as well as Federal dollars 
to State university systems nationwide.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment of $30,000,000 
for the resident tuition support [DC TAG] program, $5,030,000 
below the fiscal year 2011 enacted level and $5,100,000 below 
the budget request. The Committee understands that the program 
will have an estimated $12,819,000 in carryforward funds 
available in fiscal year 2012.
    The Committee urges the Office of the State Superintendent 
of Education to continue its efforts to improve the student 
retention, persistence, and college graduation rate of program 
participants. The Committee acknowledges the challenges facing 
the students who do enroll in college to reach graduation. Data 
reveal that among program grantees, many students interrupt 
their enrollment or drop out entirely on their path to a 
degree, and just 47 percent graduate from college in 6 years. 
The Committee directs that the State Superintendent shall 
include, as a component of the fiscal year 2013 budget 
justification submission, an annual update of its efforts, 
including research findings, to enhance the retention, 
persistence, and graduation rates, including early awareness 
and readiness initiatives to promote academic college 
preparation, guidance, and other support mechanisms and 
partnerships. The Committee expects the program to work to 
improve its ability to meet its core premise of a full return 
on investment wherein every program participant earns a college 
degree.

   FEDERAL PAYMENT FOR EMERGENCY PLANNING AND SECURITY COSTS IN THE 
                          DISTRICT OF COLUMBIA

Appropriations, 2011....................................     $14,970,000
Budget estimate, 2012...................................      14,900,000
Committee recommendation................................      14,900,000

                          PROGRAM DESCRIPTION

    Due to the fact that the District of Columbia is the seat 
of the Federal Government and headquarters of many 
international organizations, District police, fire, and 
emergency personnel have had to provide security for a number 
of events. As the need for the District of Columbia to provide 
security increases, overtime costs for personnel escalate and 
divert local police from neighborhood patrols. The complexity 
and costs associated with these events, including unique needs 
for crowd control, surveillance, and protection against unusual 
threats, are high and growing, and demand effective and 
efficient coordinated operations. The President has supported 
reimbursing the District for these costs.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment of $14,900,000, 
for the District of Columbia for the costs of providing public 
safety at events related to the presence of the national 
capital in the District of Columbia, for the costs of providing 
support requested by the United States Secret Service Division 
in carrying out their protective duties under the direction of 
the Secretary of Homeland Security, and for the costs of 
providing support to respond to immediate and specific 
terrorist threats or attacks in the District of Columbia or 
surrounding jurisdictions. This is $70,000 below the fiscal 
year 2011 enacted level and the same as the budget request.
    In addition, the District may use any funds remaining from 
prior year appropriations under this heading. The District may 
use the payment to cover the costs of Executive transportation 
support including motorcades and helicopter landings. The 
Committee directs the District of Columbia to submit a detailed 
budget justification with its funding request for fiscal year 
2013, including specific information about the anticipated 
costs related to the January 2013 Presidential Inauguration. 
The Committee further directs the District of Columbia to 
submit, within 60 days of the end of fiscal year 2012, a report 
to the House and the Senate Committees on Appropriations 
detailing the purposes and amounts expended using the funds, 
particularly noting any deviation from the original proposed 
spending.

           FEDERAL PAYMENT TO THE DISTRICT OF COLUMBIA COURTS

Appropriations, 2011....................................    $242,933,000
Budget estimate, 2012...................................     229,068,000
Committee recommendation................................     230,319,000

                          PROGRAM DESCRIPTION

    Under the National Capital Revitalization and Self-
Government Improvement Act of 1997 (Public Law 105-33, title 
XI), the Federal Government is required to finance the District 
of Columbia Courts. This Federal payment to the District of 
Columbia Courts funds the operations of the District of 
Columbia Court of Appeals, Superior Court, the Court System, 
and the Capital Improvement Program. Capital improvement 
projects include implementation of the updated Facilities 
Master Plan, with particular focus on expansion of the Moultrie 
Courthouse to address space shortfalls. By law, the annual 
budget includes estimates of the expenditures for the 
operations of the Courts prepared by the Joint Committee on 
Judicial Administration as well as the President's 
recommendation for funding the Courts' operations.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment to the District 
of Columbia Courts of $230,319,000, which is $12,614,000 below 
the fiscal year 2011 enacted level and $1,251,000 above the 
President's budget request. This amount includes $12,830,000 
for the Court of Appeals, $111,687,000 for the Superior Court, 
$66,712,000 for the Court System, and $39,090,000 for capital 
improvements to courthouse facilities.
    The Committee recommendation for the District of Columbia 
Superior Court is $74,000 above the President's recommended 
funding of $111,613,000 in order to address a top priority of 
the Court. This increase will support the Fathering Court 
Initiative to help fathers, particularly those reentering the 
community following incarceration, to sustain employment in 
order to meet their financial obligations to and establish 
healthy parental relationships with their children.
    The Committee recommendation for the District of Columbia 
Court System is $192,000 above the President's recommended 
funding of $66,520,000 and will permit the Court System to 
support the enforcement of court orders by enhancing the 
collection of fines and fees.
    The Committee recommendation for capital improvements 
provides $985,000 above the President's recommendation of 
$38,105,000 to support continued implementation of the 
Facilities Master Plan, particularly the Moultrie Courthouse 
Addition (C Street Expansion), improved physical safety through 
perimeter security enhancements and lighting and signage 
upgrades, and infrastructure upgrades and maintenance. The 
Committee acknowledges that steady progress on the Facilities 
Master Plan should provide a cost-effective path to address 
deficiencies in the Courts' space needs. In addition to the 
recommended funding, the Committee includes new language as 
requested by the Courts under the Defender Services in the 
District of Columbia Courts account to permit transfer of funds 
for capital improvements to courthouse facilities.
    The Committee supports the Courts' request to maintain the 
current level of funds available for its official reception and 
representation purposes. These resources enable the Courts to 
meet various community outreach responsibilities including 
supporting legal education in the District of Columbia as the 
home of six law schools; work with the D.C. Bar committees; and 
host the significant number of international guests who visit 
the D.C. Courts to learn about legal systems in democratic 
societies. The Committee acknowledges that the current amount 
of the Courts' reception and representation funds is 
commensurate with small Federal agencies and considerably less 
than the comparative representation funds available to other 
District officials.

  FEDERAL PAYMENT FOR DEFENDER SERVICES IN DISTRICT OF COLUMBIA COURTS

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2011....................................     $54,890,000
Budget estimate, 2012...................................      55,000,000
Committee recommendation................................      55,000,000

                          PROGRAM DESCRIPTION

    The District of Columbia Courts appoint and compensate 
attorneys to represent persons who are financially unable to 
obtain such representation. The Defender Services programs 
provide counsel for indigent persons who are charged with 
criminal offenses, for family proceedings involving child 
abuse, neglect, and termination of parental rights, and for 
guardianship proceedings for protection of mentally 
incapacitated individuals and minors whose parents are 
deceased.
    In addition to legal representation, these programs provide 
indigent persons with services such as transcripts of court 
proceedings, expert witness testimony, foreign and sign 
language interpretation, and investigations and genetic 
testing.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment of $55,000,000 
for Defender Services in the District of Columbia Courts. This 
is $110,000 above the fiscal year 2011 enacted level and the 
same as the budget request.
    The Committee includes new language permitting the transfer 
of up to $10,000,000 to the District of Columbia Courts for 
capital improvements of courthouse facilities.
    To promote access to justice and ensure that high-quality 
legal representation is available to the indigent in the 
District of Columbia Courts, in fiscal year 2009, Congress 
financed an hourly rate increase for attorneys to $90 per hour. 
Increased funding provided in fiscal year 2010 permitted the 
adjusted compensation rate to be fully instituted.

 FEDERAL PAYMENT TO THE COURT SERVICES AND OFFENDER SUPERVISION AGENCY 
                      FOR THE DISTRICT OF COLUMBIA

Appropriations, 2011....................................    $211,983,000
Budget estimate, 2012...................................     216,846,000
Committee recommendation................................     212,983,000

                          PROGRAM DESCRIPTION

    The Court Services and Offender Supervision Agency [CSOSA] 
for the District of Columbia is an independent Federal agency 
created by the National Capital Revitalization and Self-
Government Improvement Act of 1997 (Public Law 105-33, title 
XI). CSOSA acquired the operational responsibilities for the 
former District agencies in charge of probation and parole, and 
houses the Pretrial Services Agency within its framework. The 
mission of CSOSA is to increase public safety, prevent crime, 
reduce recidivism, and support the fair administration of 
justice in close collaboration with the community. The CSOSA 
appropriation supports the Community Supervision Program which 
monitors or supervises approximately 16,200 offenders on a 
daily basis and the Pretrial Services Agency [PSA] which 
supervised 17,077 defendants during fiscal year 2010 and 
monitors approximately 7,000 defendants at any given time. In 
fiscal year 2010, the PSA placed more than 1,607 defendants 
into sanctions-based substance abuse treatment.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment of $212,983,000, 
which is $1,000,000 above the fiscal year 2011 enacted level 
and $3,863,000 below the budget request. Of this amount, 
$59,435,000 is designated for the Pretrial Services Agency and 
$153,548,000 is designated for the Community Supervision 
Program. The Committee notes that $1,000,000 of the resources 
recommended for the Pretrial Services Agency will support 
planning, design, and relocation of the Pretrial Services 
Agency Forensic Toxicology and Drug Testing Laboratory.
    The Committee is supportive of CSOSA's efforts to 
successfully return ex-offenders to their communities. For a 
number of years, CSOSA has worked with grassroots, nonprofit 
providers of transitional housing, including faith-based 
organizations, that offer counseling, mentoring, and life 
skills training to men and women returning home from prison. 
The Committee notes that this is a model program for the 
Nation.
    The Committee is encouraged that the Community Supervision 
Program reduced caseloads in the general supervision unit from 
44 per officer in fiscal year 2009 to 40 to per officer in 
fiscal year 2010, a significant improvement over the 100:1 
average ratios prior to the Agency's inception. The Committee 
acknowledges that funding for CSOSA for offender contract 
treatment, including substance abuse, halfway-back residential 
sanctions, mental health and sex offender assessments, and 
transitional housing is constrained.
    The Committee appreciates the efforts of CSOSA management 
to identify savings and other efficiencies through targeted 
cutbacks and strategic reorganization as the agency fulfills 
its critical mission and addresses high priority public safety 
needs amid Government-wide fiscal constraints.
    The Committee commends the collaborative efforts of the 
Community Supervision Program to continue to partner with the 
District of Columbia Government, the United States Parole 
Commission, and the Bureau of Prisons to implement the Secure 
Residential Treatment Program pilot. This program aims to 
provide a secure, residential substance abuse treatment 
intervention/sanction alternative to high-risk, chronic 
substance abusing and criminally involved male D.C. code 
offenders in lieu of revoking them to Bureau of Prisons 
custody. The Committee encourages CSOSA to keep the Committee 
regularly informed of how well this program is meeting its 
goals of increasing offenders' chances of successful community 
reintegration and breaking the cycle of recidivism.

  FEDERAL PAYMENT TO THE PUBLIC DEFENDER SERVICE FOR THE DISTRICT OF 
                                COLUMBIA

Appropriations, 2011....................................     $37,241,000
Budget estimate, 2012...................................      41,486,000
Committee recommendation................................      37,241,000

                          PROGRAM DESCRIPTION

    The Public Defender Service [PDS] for the District of 
Columbia, an independent organization established by a District 
of Columbia statute (16 D.C. Code 2-1601-1608), has a distinct 
mission to provide and promote quality legal representation 
services within the District of Columbia justice system. PDS 
provides legal representation to indigent adults and children 
facing loss of liberty and provides support in the form of 
training, consultation, and legal reference services to members 
of the local bar appointed as counsel in criminal, juvenile, 
and mental health cases involving indigent individuals.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment to the Public 
Defender Service for the District of Columbia of $37,241,000, 
which is the same as the fiscal year 2011 enacted level and 
$4,245,000 below the budget request.
    The Committee provides authority in section 818 of the bill 
for the PDS to obtain professional liability insurance for its 
attorneys, staff, and board members. The Committee understands 
that the cost for such coverage can be met within the funding 
provided.

 FEDERAL PAYMENT TO THE DISTRICT OF COLUMBIA WATER AND SEWER AUTHORITY

Appropriations, 2011....................................     $11,476,000
Budget estimate, 2012...................................      25,000,000
Committee recommendation................................      15,000,000

                          PROGRAM DESCRIPTION

    Approximately one-third of the District is served by a 
combined sewer system, constructed by the Federal Government in 
1890, in which both sanitary waste and storm water flow through 
the same pipes. When the collection system or the Blue Plains 
treatment plant reach capacity, typically during periods of 
heavy rainfall, the system is designed to overflow the excess 
water. This mixture of sewage and storm water runoff is 
discharged to the Anacostia and Potomac Rivers, Rock Creek, and 
tributary waters between 60 and 75 times each year. Under a 
judicial consent decree entered on March 23, 2005, the Water 
and Sewer Authority is undertaking a 20-year, $2,200,000,000 
sewer construction program to reduce combined sewer overflows 
[CSO]. The Clean Rivers Project includes deep underground 
storage tunnels, side tunnels to reduce flooding, pump station 
rehabilitation, and the elimination of over a dozen CSO 
outfalls along the Potomac and Anacostia Rivers and Rock Creek. 
When completed in 2025, this project is expected to vastly 
improve water quality and significantly reduce debris in our 
Nation's capital waterways as well as improve the health of the 
Chesapeake Bay.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment of $15,000,000, 
to be matched by at least $15,000,000 provided by the Water and 
Sewer Authority, to continue implementation of the Long-Term 
Combined Sewer Overflow Control Plan. This is an increase of 
$3,524,000 above the fiscal year 2011 enacted level and 
$10,000,000 below the budget request.

      FEDERAL PAYMENT TO THE CRIMINAL JUSTICE COORDINATING COUNCIL

Appropriations, 2011....................................      $1,796,000
Budget estimate, 2012...................................       1,800,000
Committee recommendation................................       1,800,000

                          PROGRAM DESCRIPTION

    The Criminal Justice Coordinating Council for the District 
of Columbia [CJCC] is the primary forum in which District of 
Columbia criminal justice agencies can identify and address 
interagency coordination issues. Its mission is to address 
coordination difficulties among District of Columbia criminal 
justice agencies and address criminal justice issues, such as 
illegal drugs, juvenile justice, halfway houses, information 
technology, and identification of arrestees.
    The CJCC was originally established pursuant to a 
memorandum of agreement in May 1998 and operates as an 
independent working group to foster cooperation among the more 
than a dozen Federal and local governmental agencies which have 
law enforcement responsibility in our Nation's capital. As part 
of a local enactment in August 2001, the CJCC was established 
as an independent agency within the District of Columbia.
    The CJCC maintains the Justice Integrated Information 
System [JUSTIS] using technology that allows for the seamless 
sharing of information at critical decision points throughout 
the justice system. JUSTIS connects Federal agencies, the 
District government, and court information systems, so that 
criminal activity can be easily monitored across an array of 
participating agencies. Agencies currently using JUSTIS include 
the Metropolitan Police Department, the D.C. Department of 
Corrections, D.C. Superior Court, the U.S. Park Police, the 
U.S. Capitol Police, the U.S. Bureau of Alcohol, Tobacco, 
Firearms, and Explosives, the Pretrial Services Agency, CSOSA, 
the U.S. Attorney's Office for the District of Columbia, and 
the D.C. and Maryland Public Defenders Service. No other system 
provides this range of access to Federal and local information 
in the District.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment of $1,800,000 to 
the Criminal Justice Coordinating Council [CJCC]. This is 
$4,000 above the fiscal year 2011 enacted level and the same as 
the budget request.
    Among the array of activities that the recommended Federal 
payment will support during fiscal year 2012 are enhancing the 
JUSTIS information system's report development, review, and 
approval capabilities; supporting the GunStat initiative; 
improved sharing of information on mental health and substance 
abuse to redirect persons to necessary support services; 
supporting record management, court-based release, court 
processing and papering reforms; developing clear business 
processes to help reduce the number of outstanding warrants; 
and providing a comprehensive approach to truancy prevention.
    The Committee directs the CJCC to submit annual performance 
measures in an annual report to accompany the fiscal year 2013 
budget justification, which should also describe progress made 
on individual CJCC initiatives.

                FEDERAL PAYMENT FOR JUDICIAL COMMISSIONS

Appropriations, 2011....................................        $499,000
Budget estimate, 2012...................................         500,000
Committee recommendation................................         500,000

                          PROGRAM DESCRIPTION

    The Commission on Judicial Disabilities and Tenure provides 
support to the District of Columbia Court of Appeals and 
Superior Court through reviewing and investigating allegations 
of judicial misconduct. The Judicial Nomination Commission 
recommends candidates to the President of the United States for 
nomination to judicial vacancies in these courts. In accordance 
with the National Capital Revitalization and Self-Government 
Improvement Act of 1997 (Public Law 105-33), the Federal 
Government is responsible for financing of the District of 
Columbia Courts, including the operations of the District of 
Columbia Court of Appeals, Superior Court, the Court System, 
and the Capital Improvement Program. Although independent of 
the Courts by design, these two Commissions provide important 
functions within the judicial branch of local government in the 
District of Columbia.

                        COMMITTEE RECOMMENDATION

    The Committee provides $500,000 as a Federal payment for 
the judicial commissions, of which $295,000 is designated for 
the Judicial Nomination Commission and $205,000 is designated 
for the Commission on Judicial Disabilities and Tenure. This 
amount is $1,000 above the fiscal year 2011 enacted level and 
the same as the budget request. The Committee continues to 
support the rationale of recognizing these commissions as local 
judicial branch agencies for which Federal support for the 
operations is necessary.

                 FEDERAL PAYMENT FOR SCHOOL IMPROVEMENT

Appropriations, 2011....................................     $77,545,000
Budget estimate, 2012...................................      67,000,000
Committee recommendation................................      60,000,000

                          PROGRAM DESCRIPTION

    The Committee continues its commitment to improving 
educational opportunities for the children of the District of 
Columbia. For the past 7 fiscal years, Congress has supported a 
three-sector funding arrangement to provide Federal resources 
for the District of Columbia Public Schools, public charter 
schools, and for a scholarship program for low-income students 
to attend private schools.
    For the last 4 years the District has charted a new 
management course for the District's troubled public school 
system in response to Public Law 110-33, which vested authority 
over the school superintendent, operating budget, and capital 
program in the Mayor beginning in 2007. The Committee 
acknowledges the daunting challenges this undertaking presents, 
given that District of Columbia public school students have 
chronically performed well below national averages in reading 
and mathematics. The Committee commends the progress that has 
been made to streamline bureaucracy, recruit new principals, 
expand course offerings available to students, expand pre-K 
classrooms, complete major renovations, and raise math and 
reading test scores. Last year marked the first time in 41 
years that enrollment increased in District of Columbia public 
schools. For the ensuing school year, 47,000 students are 
enrolled.
    Public charter schools in the District of Columbia have 
grown considerably since the first two opened in 1996 and 
served 160 students. In school year 2010-2011, 52 tuition-free, 
autonomous public charter schools on 93 campuses operated in 
the District, enrolling 29,366 students in every ward of the 
city, and serving nearly 40 percent of all District of Columbia 
public school students. The District of Columbia School Reform 
Act of 1995 (Public Law 104-134), one of the strongest charter 
school laws in the Nation, guarantees charter school autonomy 
from the District of Columbia Public Schools and from the 
District government and mandates uniform per student funding of 
all public school students, both traditional and charter.
    Congress established the private school scholarship 
(voucher) program as a 5-year pilot in 2003. In April 2011, the 
Opportunity Scholarship Program was reauthorized for 5 years 
through enactment of Public Law 112-10, division C. The intent 
of this program is to help increase the District of Columbia's 
capacity to provide parents, particularly low-income parents 
whose children attend low-performing schools, more options for 
quality education. In school year 2010-2011, 1,017 students 
participated in the program and were enrolled at 41 nonpublic 
schools.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment of $60,000,000, 
which is $17,545,000 below the fiscal year 2011 enacted level 
and $7,000,000 below the budget request. These funds are 
allocated as follows: $20,000,000 for the District of Columbia 
Public Schools to improve public school education, $20,000,000 
to expand quality charter schools and $20,000,000 for the 
Secretary of Education for private school scholarships under 
Public Law 112-10, division C.
    The Committee directs the District of Columbia Public 
Schools to submit a detailed spending plan outlining specific 
activities no later than 60 days after enactment of this act 
and that this spending plan should contain a particular 
emphasis on initiatives to improve the recruitment and 
retention of a high-quality teacher and principal workforce in 
District public schools.
    The District has 11,000 special needs students for whom the 
District must provide or secure educational services. As part 
of the increased Federal funds provided for the District of 
Columbia Public Schools for fiscal year 2012, the Committee 
expects the District to make substantial progress in achieving 
compliance with the 2006 Federal court-ordered consent decree, 
eliminating inadequacies in treatment and support for special 
needs students, and establishing more inclusive learning 
environments for these students within the District of Columbia 
Public Schools system.
    With respect to the recommended Federal payment for fiscal 
year 2012 for public charter schools, the Committee directs the 
District of Columbia Public Charter School Board to submit to 
Congress, through the Office of the State Superintendent of 
Education [OSSE], a detailed spending plan outlining specific 
activities no later than 60 days after enactment of this act. 
This spending plan should particularly emphasize enhancing the 
academic quality of existing charter schools, expanding the 
capacity of high-performing charter schools, and executing a 
robust performance management system to help identify low-
performing schools and close them. The Committee expects that 
funding provided for charter schools will be used in accordance 
with the plan submitted.
    Over the years, public charter schools have moved into and 
revitalized former DCPS school buildings that otherwise would 
have been developed into condominiums or used for other 
commercial purposes. These buildings, including several 
historic structures, often long-abandoned and severely 
blighting neighborhoods, have been converted to public charter 
schools.
    The Committee directs the Mayor of the District of Columbia 
to submit to the Committees on Appropriations, as part of the 
fiscal year 2013 Federal payment budget justification 
materials, a detailed fiscal year 2013-2017 public education 
facilities plan that will ensure public charter school access 
to surplus or underutilized DCPS space.
    Finally, the Committee reminds the government of the 
District of Columbia that students in public charter schools 
are to have access to the same publicly funded services that 
are offered to students in traditional public schools. These 
include school nurses, School Resource Officers, crossing 
guards, and mental health and other wrap-around services.
    The Committee believes that any school enrolling a 
scholarship participant under the Opportunity Scholarship 
Program should satisfy certain minimum reasonable expectations 
as an educational setting. The Committee directs the Secretary 
of Education to independently assess on an annual basis that 
participating schools are in full compliance with the statutory 
requirements of section 3007(a)(4) of Public Law 112-10, 
division C relating to valid certificates of occupancy, school 
accreditation, site inspections, financial stability, fiscal 
management controls, and teacher qualifications. The Committee 
directs the Secretary to take prompt action to remedy any 
determination of noncompliance, and to submit to the Committee 
an annual report summarizing the results of the assessment.

              FEDERAL PAYMENT FOR THE D.C. NATIONAL GUARD

Appropriations, 2011....................................        $375,000
Budget estimate, 2012...................................       2,000,000
Committee recommendation................................         375,000

                          PROGRAM DESCRIPTION

    The fiscal 2012 budget request seeks a Federal payment of 
$2,000,000 for the D.C. National Guard's D.C. Government 
Operations. The D.C. National Guard is a Federal, rather than a 
local, entity and responds to orders of the President of the 
United States who is the Commander-in-Chief of the D.C. 
National Guard pursuant to law [District of Columbia Official 
Code Sec. 49-409 and Executive Order No. 11485 (October 1, 
1969)]. Unlike a Governor of a State, the Mayor is not 
authorized to deploy the National Guard under any 
circumstances. The District of Columbia National Guard is 
specifically trained to support law enforcement during critical 
missions, such as demonstrations, Presidential inaugurations 
and funerals, and emergency services for weather-related 
contingencies. The D.C. Air Guard patrols the skies over the 
District on round-the-clock alert. However, residency 
restrictions preclude a significant number of Guard members 
from eligibility for tuition assistance programs, which has 
severely hampered recruitment and retention efforts.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a Federal payment of $375,000 for 
the D.C. National Guard designated for the Major General David 
F. Wherley, Jr. District of Columbia National Guard Retention 
and College Access Program, a tuition assistance program for 
nonresident District of Columbia National Guard members. This 
amount is the same as the fiscal year 2011 enacted level and 
$1,625,000 below the budget request.

              FEDERAL PAYMENT FOR HOUSING FOR THE HOMELESS

Appropriations, 2011....................................      $9,980,000
Budget estimate, 2012...................................................
Committee recommendation................................................

                          PROGRAM DESCRIPTION

    Under the Housing First Initiative, the District of 
Columbia has begun to transform the delivery of homeless 
services from an approach that simply meets the survival needs 
of individuals with blankets and shelter to a system designed 
to move chronically homeless individuals to permanent 
supportive housing with tightly linked support services. In the 
two most recent fiscal years, Congress provided special Federal 
payments totaling $26,980,000 to help boost the local intensive 
case management and scattered-site housing program through 
support for the costs of rent, utilities, and case management 
and respond to the particularly acute incidence of homelessness 
among veterans.

                        COMMITTEE RECOMMENDATION

    The fiscal year 2012 budget did not request and the 
Committee does not recommend a Federal payment for this 
program.

FEDERAL PAYMENT FOR REDEVELOPMENT OF THE ST. ELIZABETHS HOSPITAL CAMPUS

Appropriations, 2011....................................................
Budget estimate, 2012...................................     $18,000,000
Committee recommendation................................................

                          PROGRAM DESCRIPTION

    St. Elizabeths, established by Congress in 1855 as the 
Government Hospital for the Insane and officially renamed as 
St. Elizabeths Hospital in 1916, is presently divided into two 
campuses. The West Campus, owned by the Federal Government and 
under the custody and control of the General Services 
Administration, will be the new headquarters for the Department 
of Homeland Security. The East Campus, owned by the District of 
Columbia, is still in use as a mental health facility. The 
fiscal year 2012 budget request seeks a new Federal payment of 
$18,000,000 to support various redevelopment planning 
activities on the East Campus to stimulate economic and 
community revitalization in tandem with the transformation of 
the West Campus property.

                        COMMITTEE RECOMMENDATION

    The Committee acknowledges the importance of this 
development effort, but is unable to support the request for a 
new special Federal payment at this time.

                FEDERAL PAYMENT FOR HIV/AIDS PREVENTION

Appropriations, 2011....................................................
Budget estimate, 2012...................................      $5,000,000
Committee recommendation................................................

                          PROGRAM DESCRIPTION

    The District of Columbia is facing a daunting HIV epidemic. 
Based on the national HIV/AIDS case based reporting system, the 
District currently has the highest AIDS rate in the country, 
nearly twice as high as New York City and five times as high as 
Detroit. Estimates based on surveillance numbers suggest that 
between 3 and 5 percent of the adult residents in the District 
are currently living with HIV or AIDS, and HIV/AIDS is the 
leading cause of premature mortality in the city. The fiscal 
year 2012 budget request seeks a new Federal payment to bolster 
existing prevention, care, and support services on a city-wide 
basis to reduce the incidence of HIV and AIDS in the District 
of Columbia.

                        COMMITTEE RECOMMENDATION

    The Committee acknowledges the serious situation but is 
unable to support a new special Federal payment at this time, 
and urges the District of Columbia to explore and exhaust other 
Federal grant options and private sources to augment local 
investments to support this program in fiscal year 2012.

 FEDERAL PAYMENT FOR D.C. COMMISSION ON THE ARTS AND HUMANITIES GRANTS

Appropriations, 2011....................................................
Budget estimate, 2012...................................      $5,000,000
Committee recommendation................................................
    The budget requests a special Federal payment of $5,000,000 
to fund competitively-awarded grants for non-profit fine and 
performing arts organizations based in and primarily serving 
the District of Columbia. This request relates to a proposal to 
significantly reduce funding for the National Capital Arts and 
Cultural Affairs [NCACA] grants program and transfer 
administration of that program from the Commission on Fine 
Arts, a Federal entity funded under the Interior appropriation, 
to the District of Columbia Commission on Arts and the 
Humanities.

                        COMMITTEE RECOMMENDATION

    The Committee is unable to support the request for a new 
special Federal payment to the District of Columbia for grants 
for non-profit fine and performing arts organizations in fiscal 
year 2012.

                       District of Columbia Funds

    The Committee recommends a total of $10,911,966,000 for the 
operating expenses of the District of Columbia as contained in 
the fiscal year 2011 budget submitted to the Congress by the 
government of the District of Columbia. Of the total, 
$6,208,646,000 is from local funds, $1,015,449,000 is from 
Federal grant funds, $2,040,504,000 is from other funds, and 
$25,677,000 is from private funds. The Committee further 
recommends an additional $122,575,000 in appropriated Federal 
payments as set forth under this title. The Committee directs 
that any changes to the financial plan as submitted by the 
District must follow the reprogramming guidelines.

                                TITLE V

                          INDEPENDENT AGENCIES

             Administrative Conference of the United States

                         SALARIES AND EXPENSES

Appropriations, 2011....................................      $2,744,000
Budget estimate, 2012...................................       3,200,000
Committee recommendation................................       2,900,000

                          PROGRAM DESCRIPTION

    The Administrative Conference of the United States [ACUS] 
is an independent agency and advisory committee created to 
study administrative processes in order to recommend 
improvements to Congress and agencies.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $2,900,000 for ACUS, $300,000 
below the budget request and $156,000 above the fiscal year 
2011 enacted level.

               Christopher Columbus Fellowship Foundation


                         SALARIES AND EXPENSES

Appropriations, 2011....................................        $499,000
Budget estimate, 2012...................................................
Committee recommendation................................         450,000

                          PROGRAM DESCRIPTION

    The Christopher Columbus Fellowship Foundation is an 
independent agency established by Congress in 1992 (Public Law 
102-281) to encourage and support research, study, and labor 
designed to produce new discoveries in all fields of endeavor 
for the benefit of mankind. Its mission is accomplished through 
the sponsorship of national competitions designed to promote 
innovation in the fields of homeland security, life sciences, 
and education. Through its Frontiers of Discovery--Work in 
Progress and Discover the Future programs, the agency 
recognizes cutting edge innovations of worthy American 
scientists, student inventors, and exemplary teachers who 
inspire despite especially challenging educational environments 
or personal physical disabilities.
    Initial funding for the Christopher Columbus Fellowship 
Foundation was derived from the sale of three denominations of 
specially minted coins sold by the United States Mint from 
August 1992 through June 1993. Revenues from the coin sales 
surcharges were deposited in the Christopher Columbus 
Fellowship Fund at the Department of the Treasury, and made 
available to the Foundation. To address the fact that the coin 
sales revenues had been depleted, Congress authorized funding 
for the Christopher Columbus Fellowship Foundation in the 
Omnibus Appropriations Act, 2009 (Public Law 111-8).

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $450,000 for 
the Christopher Columbus Fellowship Foundation. This is $49,000 
below the fiscal year 2011 enacted level and $450,000 above the 
budget request.

                  CIVILIAN PROPERTY REALIGNMENT BOARD

Appropriations, 2011....................................................
Budget estimate, 2012...................................     $88,000,000
Committee recommendation................................................

    The Civilian Property Realignment Board, as proposed by 
section 735 of Government-wide General Provisions of the fiscal 
year 2012 Budget Appendix, would be an independent agency that 
assists the President and Congress in identifying ways the 
Government can eliminate unneeded assets and downsize its real 
property inventory. The purpose of the Board would be to create 
a fair process that will result in the timely disposal and 
realignment of Federal real property. The goals of the Board 
would be to sell unneeded property, reduce the operating costs 
of the Government, support and incentivize agency co-location, 
and improve the sustainability of the Government's operations.

                        COMMITTEE RECOMMENDATION

    Neither the Civilian Property Realignment Board nor the 
Civilian Property Realignment Act have been authorized by 
Congress. While certain elements of the Federal real property 
proposal may be appealing, other parts may have drawbacks, 
which Congress is in the process of reviewing. The Committee is 
unable to fund this proposed new Board at this time, noting the 
significant funding required, particularly at a time when the 
Committee's ability to adequately fund existing agencies and 
long-standing programs--which have been vetted and which 
receive overwhelming support--is severely constrained.

                  Commodity Futures Trading Commission


                         SALARIES AND EXPENSES

Appropriations, 2011....................................    $202,270,000
Budget estimate, 2012...................................     308,000,000
Committee recommendation................................     240,000,000

                          PROGRAM DESCRIPTION

    The Commodity Futures Trading Commission [CFTC] was 
established as an independent agency by the Commodity Futures 
Trading Commission Act of 1974 (88 Stat. 1389; 7 U.S.C. 4a).
    The Commission administers the Commodity Exchange Act, 7 
U.S.C. section 1, et seq. The 1974 Act brought under Federal 
regulation futures trading in all goods, articles, services, 
rights, and interests; commodity options trading; and leverage 
trading in gold and silver bullion and coins; and otherwise 
strengthened the regulation of the commodity futures trading 
industry. It established a comprehensive regulatory structure 
to oversee the volatile futures trading complex.
    The CFTC is the sole Federal regulator responsible for 
overseeing the futures markets by encouraging competitiveness 
and efficiency, ensuring market integrity, and protecting 
market participants against manipulation, abusive trading 
practices, fraud, and other unscrupulous activities. Effective 
oversight by the CFTC enables the markets to better serve their 
designated functions of providing a price discovery mechanism 
and a means to offset price risk.
    Programs in support of the overall mission include market 
surveillance analysis and research; registration, audits, and 
contract markets; enforcement; reparations; proceedings; legal 
counsel; agency direction; and administrative support services. 
CFTC activities are carried out in Washington, DC and in 
regional offices located in Chicago, New York City, and Kansas 
City.
    The enacted 2008 farm bill (Public Law 110-246) 
reauthorized the CFTC and made several amendments to the 
Commodity Exchange Act to:
  --clarify the CFTC's jurisdiction over retail financial 
        contracts based on foreign currencies;
  --make the CFTC's anti-fraud authority applicable to certain 
        off-exchange or over-the-counter derivatives contracts;
  --increase civil monetary and criminal penalties for 
        violations;
  --permit cross-margining of accounts in security futures and 
        options; and
  --establish CFTC regulation over certain exchange-like 
        trading facilities that are currently exempt from most 
        regulation.
    Under the Dodd-Frank Wall Street and Consumer Protection 
Act (Public Law 111-203), the CFTC faces the daunting added 
responsibility of comprehensive oversight of the once-
unregulated $300,000,000,000,000 over-the-counter U.S. 
derivatives market to protect and benefit end-users and the 
broader American public. This complex swaps market has a 
notional value of nearly eight times the size of that of the 
futures markets.
    New mandates for the CFTC include reviewing all swaps to 
determine whether the swap is exempt from the mandatory 
clearance requirement; requiring real-time reporting for all 
swaps; adopting rules for imposing capital and margin 
requirements on all non-cleared swaps; exercising dual 
regulatory authority, in conjunction with the SEC, over mixed 
swaps; promulgating rules defining the universe of swaps that 
can be executed on a swap execution facility; and exercising 
backstop enforcement authority if prudential regulators do not 
act after notification of a perceived violation.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $240,000,000 
for the Commodity Futures Trading Commission. This is 
$37,730,000 above the fiscal year 2011 enacted level and 
$68,000,000 below the budget request. The Committee supports 
the need for increased resources for the CFTC above the fiscal 
year 2011 enacted level to satisfy its substantially broadened 
regulatory workload and to ensure appropriate oversight of the 
futures markets, which are growing steadily in volume and new 
users, and rapidly evolving in their complexity and diversity. 
In addition to this recommended funding, the Committee directs 
the CFTC to use funds available within the Customer Protection 
Fund to establish an office and hire personnel for the 
necessary and incidental expenses of carrying out whistleblower 
incentive claims management and administering a customer 
education program.
    The Committee directs the CFTC to submit, within 30 days of 
enactment, a detailed spending plan for the allocation of the 
funds made available, displayed by discrete program, project, 
and activity, including staffing projections, specifying both 
FTEs and contractors, and planned investments in information 
technology.
    The Committee underscores the crucial need for the CFTC to 
make mission-critical investments in technology to sort through 
the millions of pieces of information generated daily by 
markets. The CFTC's responsibilities to integrate both swap and 
futures markets and perform required analysis and oversight 
requires a complete overhaul of the current systems and a 
greater attention to automating surveillance and market risk 
analysis. The amount and detail of trade data collected and 
analyzed at the CFTC is expanding with its new authority over 
swaps markets and can only be managed by completely automating 
the collection and analysis of market data.
    The Committee is pleased that the CFTC is taking steps to 
improve the transparency of market data to better inform market 
participants and the public.
    The Committee acknowledges the significant progress that 
the CFTC has achieved in the past year in publishing and 
eliciting important public comment on proposed rules. The 
Committee is concerned that until the CFTC completes its 
rulemaking process to bring the over-the-counter derivatives 
markets onto transparent exchanges or swap execution facilities 
and under agency oversight, the public remains unprotected from 
a risk of another financial crisis.
    The Committee stresses that with the enactment of Public 
Law 111-203, it is all the more critical for the CFTC, in 
collaboration with the SEC, to ensure optimum harmonization in 
executing the respective oversight responsibilities of each 
agency with respect to over-the-counter derivative products. 
The Committee expects the CFTC and the SEC to limit, to the 
greatest extent possible, inconsistent regulation of similar 
products and entities that could lead to opportunities for 
regulatory arbitrage. The Committee continues to support the 
use of funds to support the Joint SEC-CFTC Advisory Committee.

                   Consumer Product Safety Commission


                         salaries and expenses

Appropriations, 2011....................................    $114,788,000
Budget estimate, 2012...................................     122,000,000
Committee recommendation................................     114,500,000

                          program description

    The Consumer Product Safety Commission [CPSC] is an 
independent regulatory agency that was established on May 14, 
1973, and is responsible for protecting the public against 
unreasonable risks of injury from consumer products; assisting 
consumers to evaluate the comparative safety of consumer 
products; developing uniform safety standards for consumer 
products and minimizing conflicting State and local 
regulations; and promoting research and investigation into the 
causes and prevention of product-related deaths, illnesses, and 
injuries.
    In carrying out its mandate, the CPSC establishes mandatory 
product safety standards, where appropriate, to reduce the 
unreasonable risk of injury to consumers from consumer 
products; helps industry develop voluntary safety standards; 
bans unsafe products if it finds that a safety standard is not 
feasible; monitors recalls of defective products; informs and 
educates consumers about product hazards; conducts research and 
develops test methods; collects and publishes injury and hazard 
data; and promotes uniform product regulations by governmental 
units.
    On August 14, 2008, Congress reauthorized the Commission by 
enacting the Consumer Product Safety Improvement Act of 2008 
[CPSIA] (Public Law 110-314). CPSIA represents the most 
substantial change in the Consumer Product Safety Commission's 
authorities since the creation of the Commission. Among other 
things, it enhances the Commission's recall authority, 
streamlines the rulemaking process, provides for the creation 
of a new searchable database of consumer product complaints, 
and requires product certification.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $114,500,000 for the Consumer 
Product Safety Commission, which is $288,000 below the fiscal 
year 2011 funding level and $7,500,000 below the budget 
request.
    The Committee is encouraged by the implementation of the 
Consumer Product Safety Information Database as authorized by 
the Consumer Product Safety Improvement Act [CPSIA] which will 
aid in more quickly detecting hazardous or potentially 
hazardous or unsafe products. Since its launch in March of this 
year, the database has provided consumers with the type of 
transparency envisioned in CPSIA. SaferProducts.gov has posted 
more than 2,700 searchable reports, many of which include 
incidents of injury and even death. The concerns that industry 
has been predicting, such as the idea that the database would 
result in widespread misinformation that would needlessly 
malign innocent companies, have not materialized. Moreover, the 
recent enactment of a new law (Public Law 112-28) revising 
provisions in CPSIA has provided industry with additional 
safeguards that maximize the database's accuracy. Every effort 
will be made by CPSC to include in all incident reports either 
a model number, serial number, or photograph of the consumer 
product in question, and the Commission will have additional 
time to verify the accuracy of those reports that are 
contested. With a bipartisan majority's approval of this 
legislation, industry's concerns have been addressed and 
opposition to the database should be negligible. Moreover, the 
Government Accountability Office [GAO] is currently reviewing 
the database as required in Public Law 112-10 and a longer GAO 
study as required by CPSIA is underway, and those reports 
should be completed prior to further legislative action 
regarding the database. In sum, SaferProducts.gov has been 
shown to be quite successful in its first 6 months, even 
resulting so far in a recall of a children's product in July 
that was demonstrated to have caused serious laceration 
injuries to children.
    The Committee is appreciative of the monthly drywall 
reports provided by the Commission during the past year and for 
fiscal year 2012 requires that these reports be provided on a 
quarterly basis instead, although the Commission should update 
the Committee of notable developments immediately, should they 
occur outside the quarterly reporting schedule.
    From 2001-2008, 2,691 incidents associated with playground 
equipment were reported to the CPSC, 40 of which were deaths 
investigated by CPSC. The most recent report is from October 
2009. CPSC is encouraged to collect and report statistics 
pertaining to playground injuries and deaths annually, if 
possible.
    CPSC estimates that table saws used by hobbyists, shop 
class students, and other consumers amputate an average of 10 
fingers per day. The Committee is supportive of CPSC's actions 
and progress with regard to table saws, including the 
possibility of issuing a standard relating to table saw safety.
    Currently, CPSC has no means to compel the production of 
information relating to a product defect from a foreign 
manufacturer. The Commission must rely on the manufacturer to 
provide this information voluntarily--or on the Commission's 
ability to compel it from an importer or retailer located in, 
or with sufficient contacts to, the United States. This has 
been a major problem in some cases, such as the investigation 
of problem drywall imported from China, where manufacturers 
have openly refused to comply with Commission information 
requests. Therefore, a provision is included allowing CPSC to 
require foreign manufacturers, or a subset thereof, after 
notice and hearing, to register a U.S. agent for service of 
process involving Commission (but not private) information or 
document requests. This authority mirrors that of other 
consumer agencies.
    The Committee is aware that small, round, coin-shaped 
batteries, known as ``button cell batteries'' are increasingly 
present in consumer products, and pose a hazard--potentially 
fatal--to small children who ingest them. Between 2007 and 
2009, more than 3,400 button battery ingestion cases were 
reported to U.S. poison centers annually. The number of 
ingestions that result in serious injury or death have 
increased sevenfold since 1985 due to the higher voltage of 
newer batteries. Hundreds of children have been severely 
injured and six have died from these ingestions in the last 2 
years alone. If these batteries were securely enclosed in 
products (like the existing Federal safety rules that require 
toys that use batteries to have such compartments), with 
accompanying warning labels, this hazard could be greatly 
diminished. Accordingly, a provision has been included 
requiring CPSC to promulgate such a safety standard.
    CPSC has identified window coverings with cords as one of 
the top five hidden hazards in the home. CPSC is aware of 120 
fatalities and 113 serious injuries related to corded window 
blinds since 1999. About once a month, a child between 7 months 
and 10 years old dies from window cord strangulation and 
another child suffers a near strangulation. In recent years, 
CPSC has recalled tens of millions of window coverings, 
including Roman shades, roller and roll-up blinds, vertical and 
horizontal blinds. A voluntary standard exists for window 
blinds but it has proven to be inadequate to eliminate the 
strangulation risk posed by corded window coverings. After a 
year of working on a voluntary standard, even with consumer 
participation, the draft standard is unacceptably weak and 
fails to eliminate the strangulation hazards posed by corded 
window coverings. Accordingly, a provision has been included 
requiring CPSC to promulgate a rule that eliminates the 
strangulation hazard caused by cords on window coverings.

     ADMINISTRATIVE PROVISIONS--CONSUMER PRODUCT SAFETY COMMISSION

    Section 501 is a provision permitting Consumer Product 
Safety Commission staff serving abroad to be eligible for 
travel, leave, and other benefits similar to those authorized 
for foreign service officers.
    Section 502 provides authority for the Consumer Product 
Safety Commission [CPSC] to compel the production of 
information relating to a product defect from a foreign 
manufacturer.
    Section 503 requires CPSC to promulgate a safety standard 
for button cell batteries.
    Section 504 requires a GAO study of the potential risks 
associated with new and emerging consumer products.
    Section 505 requires a GAO study on compliance of voluntary 
industry standards for consumer products.
    Section 506 is a provision requires CPSC to promulgate a 
rule eliminating the strangulation hazard caused by cords on 
window coverings.

                     Election Assistance Commission


                         SALARIES AND EXPENSES

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2011....................................     $16,267,000
Budget estimate, 2012...................................      13,716,000
Committee recommendation................................      14,750,000

                          PROGRAM DESCRIPTION

    The Election Assistance Commission [EAC] was created by the 
Help America Vote Act of 2002 [HAVA] (Public Law 107-252). 
Under HAVA, the EAC's role is to promulgate voluntary State 
guidelines for election systems, develop a national 
certification program for voting equipment, and provide related 
guidance. The EAC is also charged with awarding grants to 
improve election administration and to enhance election 
equipment.

                        COMMITTEE RECOMMENDATION

    The Committee provides $14,750,000 for EAC's administrative 
expenses, which is $1,517,000 less than the fiscal year 2011 
enacted level and $1,034,000 above the budget request. The 
Committee bill requires that $3,250,000 of these funds be 
transferred to the National Institute for Standards and 
Technology for technical assistance related to the development 
of voluntary State voting systems guidelines.

                   Federal Communications Commission


                         SALARIES AND EXPENSES

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2011....................................    $335,794,000
Budget estimate, 2012...................................  \1\354,181,000
Committee recommendation................................     354,181,000

\1\The formal budget request specified an estimate of $358,801,000. The 
Federal Communications Commission subsequently notified the Committee 
that this estimate was erroneous and that the correct estimate is 
$354,181,000.

                          PROGRAM DESCRIPTION

    The Federal Communications Commission [FCC] is charged with 
regulating interstate and international communications by 
radio, television, wire, satellite, and cable. The FCC is also 
charged with promoting the safety of life and property through 
wire and radio communications. The mandate of the FCC under the 
Communications Act is to make available to all people of the 
United States a rapid, efficient, nationwide, and worldwide 
wire and radio communication service. The FCC performs five 
major functions to fulfill this charge: (1) spectrum 
allocation; (2) creating rules to promote fair competition and 
protect consumers where required by market conditions; (3) 
authorization of service; (4) enhancing public safety and 
homeland security; and (5) enforcement.

                        COMMITTEE RECOMMENDATION

    The Committee recommendation provides $354,181,000 for the 
salaries and expenses of the Federal Communications Commission 
[FCC], of which $354,181,000 is to be derived from the 
collection of fees. The recommendation is $18,387,000 above the 
fiscal year 2011 enacted level and equal to the budget request.
    The Committee understands the FCC is promulgating a rule to 
address compensation rates from the Universal Service Fund 
[USF]. The Committee recognizes the important service that 
local exchange carriers provide to rural America and encourages 
the Commission to maintain a reasonable intercarrier 
compensation system for rural local exchange carriers.
    The Committee has included language (sec. 510) to extend 
FCC's exemption from the Anti-deficiency Act [ADA] until 
December 31, 2013.
    The Committee has included language (sec. 511) that 
prohibits the FCC from enacting certain recommendations 
regarding universal service that were made to it by the Joint 
Board of FCC members and State utility commissioners. The 
recommendation would limit universal support to one line. This 
would be harmful to small businesses, especially in rural 
areas, which need a second line for a fax or for other business 
purposes.

                 Federal Deposit Insurance Corporation


                      OFFICE OF INSPECTOR GENERAL

Appropriations, 2011....................................     $42,942,000
Budget estimate, 2012...................................      45,261,000
Committee recommendation................................      45,261,000

                          PROGRAM DESCRIPTION

    The Federal Deposit Insurance Corporation [FDIC] Office of 
Inspector General [OIG] conducts audits, investigations, and 
other reviews to assist and augment the FDIC's contribution to 
the stability of, and public confidence in, the Nation's 
financial system. A separate appropriation more effectively 
ensures the OIG's independence consistent with the Inspector 
General Act of 1978 and other legislation.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $45,261,000 for the FDIC inspector 
general, the same as the budget request and $2,319,000 more 
than the fiscal year 2011 enacted level. Funds are to be 
derived by transfer from the Deposit Insurance Fund and the 
Federal Savings and Loan Insurance Corporation [FSLIC] 
resolution fund.

                      Federal Election Commission


                         SALARIES AND EXPENSES

Appropriations, 2011....................................     $66,367,000
Budget estimate, 2012...................................      67,014,000
Committee recommendation................................      66,367,000

                          PROGRAM DESCRIPTION

    The Federal Election Commission [FEC] was created through 
the 1974 Amendments to the Federal Election Campaign Act of 
1971 (Public Law 93-443). Consistent with its duty of executing 
our Nation's Federal campaign finance laws, and in pursuit of 
its mission of maintaining public faith in the integrity of the 
Federal campaign finance system, FEC conducts three major 
regulatory programs: (1) providing public disclosure of funds 
raised and spent to influence Federal elections; (2) enforcing 
compliance with restrictions on contributions and expenditures 
made to influence Federal elections; and (3) administering 
public financing of Presidential campaigns.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $66,367,000 for the Federal 
Election Commission, $647,000 less than the budget request and 
equal to the fiscal year 2011 enacted level.

                   Federal Labor Relations Authority


                         SALARIES AND EXPENSES

Appropriations, 2011....................................     $24,723,000
Budget estimate, 2012...................................      26,440,000
Committee recommendation................................      24,723,000

                          PROGRAM DESCRIPTION

    The Federal Labor Relations Authority [FLRA] is an 
independent administrative Federal agency created by title VII 
of the Civil Service Reform Act of 1978 (Public Law 95-454) 
with a mission to carry out five statutory responsibilities in 
relation to the Federal workforce: (1) determining the 
appropriateness of units for labor organization representation; 
(2) resolving complaints of unfair labor practices; (3) 
adjudicating exceptions to arbitrator's awards; (4) 
adjudicating legal issues relating to the duty to bargain; and 
(5) resolving impasses during negotiations.
    The FLRA's authority is divided by law and by delegation 
among a three-member authority and an Office of General 
Counsel, appointed by the President and subject to Senate 
confirmation; and the Federal Service Impasses Panel, which 
consists of seven part-time members appointed by the President.
    In addition, the FLRA is engaged in case-related 
interventions, training and facilitation of labor-management 
partnerships, and resolving disputes. FLRA promotes labor-
management cooperation by providing training and assistance to 
labor organizations and agencies on resolving disputes, 
facilitates the creation of partnerships, and trains the 
parties on rights and responsibilities under the Federal Labor 
Relations Management statute.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $24,723,000 
for the Federal Labor Relations Authority. This amount is 
$1,717,000 below the budget request and equal to the fiscal 
year 2011 enacted level.

                        Federal Trade Commission


                         SALARIES AND EXPENSES

Appropriations, 2011....................................    $291,363,000
Budget estimate, 2012...................................     326,000,000
Committee recommendation................................     311,563,000

                          PROGRAM DESCRIPTION

    The Federal Trade Commission [FTC] administers a variety of 
Federal antitrust and consumer protection laws. Activities in 
the antitrust area include detection and elimination of illegal 
collusion, anticompetitive mergers, unlawful single-firm 
conduct, and injurious vertical agreements. The FTC enforces 
consumer protection laws involving advertising, marketing, and 
financial practices; fights consumer fraud; and addresses 
privacy and identity protection concerns.

                        COMMITTEE RECOMMENDATION

    The Committee recommendation provides $311,563,000. The 
recommendation is $20,200,000 above the fiscal year 2011 
enacted level and $14,437,000 below the budget request.
    Of the amounts provided, $21,000,000 is derived from Do-
Not-Call fees and $149,000,000 is derived from Hart-Scott-
Rodino per-merger filing fees. Section 623 of the bill adjusts, 
for inflation, pre-merger filing fees. These fees have not been 
adjusted for inflation since 2001. Section 623 also establishes 
a new tier for merger transactions valued at over 
$1,000,000,000. The total amount of direct appropriations for 
this account is therefore $141,563,000.
    In addition to its headquarters building, the FTC is 
located in two satellite office buildings in Washington, DC. 
The recommendation includes $20,200,000 for the replacement of 
those satellite offices because the majority of the current 
space will no longer be available for occupancy after August 
2012.
    The Committee continues to place a high priority on the 
FTC's mission to protect consumers and preserve competition in 
the marketplace. The Committee is pleased that the FTC has 
effectively utilized resources provided in previous fiscal 
years to investigate fraud and misleading practices related to 
mortgage lending and other financial services, identity theft, 
data security, and healthcare and to preserve competition in 
the marketplace through education and enforcement of Federal 
laws related to anticompetitive practices. Over the past 3 
years, the FTC saved consumers more than $1,700,000,000 in 
economic injury by stopping illegal practices in the 
marketplace, and, in 2010 alone, the FTC took action against 
mergers likely to harm competition in markets with a total of 
$22,500,000,000 in sales. The Committee directs the FTC to 
robustly continue such activities and has approved the 
following significant program increases in accordance with the 
budget request:
    The Committee makes the following findings:
    Do-Not-Call Initiative.--The recommendation includes 
funding for the FTC Do-Not-Call initiative and implementation 
of the Telemarketing Sales Rule [TSR], of which the entire 
amount is to be derived from the collection of fees. The Do-
Not-Call initiative was launched pursuant to the FTC's amended 
TSR to establish a national database of telephone numbers of 
consumers who choose not to receive telephone solicitations 
from telemarketers. The Do-Not-Call initiative has received 
broad support from, and will provide significant benefits to, 
consumers from all corners of the United States.
    Gas and Diesel Prices.--The Committee continues to be 
concerned with the potential for market manipulation and 
anticompetitive behavior in the oil and natural gas industries. 
The FTC is encouraged to continue its investigations and other 
activities related to these concerns. The Committee directs the 
FTC to keep the Committee apprised of findings made regarding 
fuel prices, as well as other planned activities and 
investigations regarding the oil and gas industries.
    Payment Card Networks.--The Committee notes the important 
role that FTC has been assigned in enforcing the provisions of 
section 1075 of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act as they relate to payment card network 
companies. The FTC's enforcement role is critical to ensuring 
that payment card network companies do not take steps to 
undermine the small issuer exemption or the pro-consumer 
benefits contained in section 1075. The Committee directs FTC 
to provide a report 1 year after enactment of this act on steps 
that FTC has taken over the previous year to ensure compliance 
by payment card network companies with section 1075 of Dodd-
Frank and regulations promulgated thereunder. This report 
should explain whether FTC has identified any evidence that 
payment card network companies have taken steps to diminish the 
ability of small banks and credit unions to successfully 
compete with large financial institutions in the debit card 
issuance market, and if any such steps have been taken by the 
card network companies in coordination or collusion with large 
financial institutions.
    Childhood Obesity.--The Committee remains concerned about 
childhood obesity and emphasizes that while a number of factors 
contribute to children's poor diets and obesity, studies show 
that food marketing affects children's food choices, food 
preferences, diets, and health. While food and marketing 
companies have begun to reformulate some foods and amend some 
marketing practices, the majority of child-targeted marketing 
continues to be for products of poor nutritional value. In 
2009, consistent with the explanatory statement accompanying 
the Omnibus Appropriations Act, 2009 (Public Law 111-8), an 
Interagency Working Group [IWG] was established to develop 
voluntary nutrition standards and marketing definitions for 
foods marketed to children.
    The Committee recognizes the IWG's careful review of 
existing science, nutrition, and marketing standards as it 
developed the proposed voluntary marketing principles. The 
Committee encourages the IWG to thoroughly consider the 
comments submitted by stakeholders. The Committee further 
directs the IWG to submit the voluntary marketing principles in 
a final report to the Committee by December 15, 2011.
    FTC Headquarters Building.--The Committee is concerned 
about the cost to implement proposed legislation to transfer 
the FTC's headquarters building to the National Gallery of Art 
[NGA]. The proposal would provide the NGA with additional space 
to expand its exhibitions, education, and administrative 
offices. The Committee is concerned that this transaction will 
result in taxpayers surrendering a valuable asset without any 
compensation. The building would have significant value if sold 
on the market due to its prime location and good working 
condition. The Committee is concerned that this transaction 
would be unprecedented; other NGA buildings were constructed 
with private funds, not paid for by the taxpayer. Furthermore, 
while the NGA has indicated it would raise private funds to 
renovate the building, Federal spending would continue to be 
required for maintenance and repair of the building. The 
Congressional Budget Office [CBO] reports, ``Since the original 
buildings were donated to the NGA, all renovations and repairs 
to those facilities have been completed with appropriated 
funds.''
    The Committee is concerned that such a proposal also would 
require the Federal Government to buy or lease replacement 
space for a new FTC headquarters, which would require 
additional Federal spending. The CBO reports that the most 
cost-effective approach to acquiring additional real estate for 
permanent Federal use is purchasing or constructing new 
buildings rather than entering into long-term leases. The CBO 
estimates that constructing a large enough facility to 
accommodate the entirety of the FTC would cost roughly 
$300,000,000. The Committee expects that a smaller space to 
accommodate only the current headquarters staff could cost the 
taxpayers a smaller but still significant amount of money. The 
Committee finds these costs difficult to contemplate, 
especially at a time when existing top priority projects have 
been deferred due to severely limited funds. The Committee is 
also concerned about the significant costs associated with this 
proposal. Among these costs are: (1) the significantly greater 
cost of commerciallyleased space for the FTC should a new space 
not be built for its use; (2) the cost of moving the FTC (which 
would recur every 10 to 15 years if the FTC is moved into 
commercially-leased space); and (3) the ongoing Federal costs 
associated with the NGA's occupancy of the FTC headquarters 
building. Further, moving the FTC into existing Federal space 
(leased or owned) would require the Federal Government to find 
space for another Federal agency which could also impose 
significant additional costs on the Federal Government.
    Given the Committee's concerns, section 623 of the bill 
precludes the conveyance of the FTC headquarters building 
unless the Federal Government receives fair market value for 
the property. The Committee also directs the FTC and the 
General Services Administration to keep the Committee fully and 
regularly apprised of the cost of proposals related to the 
headquarters building.

                    General Services Administration


                          PROGRAM DESCRIPTION

    The General Services Administration [GSA] was established 
by the Federal Property and Administrative Services Act of 1949 
(Public Law 81-152) when Congress mandated the consolidation of 
the Federal Government's real property and administrative 
services. GSA is organized into the Public Buildings Service, 
the Federal Acquisition Service, the Office of Government-wide 
Policy, and the Office of Citizen Services.

                        COMMITTEE RECOMMENDATION

    National Antenna Program.--In light of the need to promote 
small business access to broadband technologies, particularly 
in rural and other underserved areas, the Committee expects 
that the General Services Administration, not later than 90 
days after enactment of this act, in consultation with the 
Federal Communications Commission, shall submit to the House 
and Senate Committees on Appropriations, a report detailing 
agency participation in the National Antenna Program, including 
the location and number of wireless towers deployed on Federal 
facilities. The Committee also expects the report to outline 
progress made in implementing recommendations from the Federal 
Communications Commission March 2010 National Broadband Plan on 
fee structures for access to Federal rights-of-way, as well as 
developing one or more master contracts for all Federal 
property and buildings covering the placement of wireless 
towers. The report should contain recommendations on 
opportunities for the Federal Government to improve broadband 
or wireless technology on Federal buildings in rural or 
underserved areas.
    Automated External Defibrillators [AEDs] in Federal 
Facilities.--GSA shall submit a report on the GSA's compliance 
with the most recent Guidelines for Public Access 
Defibrillation Programs in Federal Facilities as published in 
FMR Bulletin 2009-B2 regarding the deployment of AEDs in 
Federal facilities within 90 days of the enactment of this act.
    Use of Stairs.--Obesity levels have been increasing at 
alarming rates, with one-third of the population obese, and 
another one-third overweight and at risk of obesity. Lifestyle 
activities, such as choosing stairs over elevators, are 
increasingly being urged by public health experts to address 
this problem. These experts point to mounting evidence that 
small amounts of exercise accumulated throughout the day can 
provide significant health benefits. Research has found that 
men who climbed at least 20 floors per week had about a 20 
percent lower risk of stroke and of death from all causes 
during the study period. Benefits for women are also likely to 
be significant. Even two flights of stairs climbed per day can 
lead to 6 pounds of weight loss over 1 year. Studies in 
shopping centers and train stations have shown that poster-
prompts, placed between adjacent escalators and stairs, can 
significantly increase stair use. Such interventions have 
typically resulted in a 15 percent increase in the use of 
stairs. Encouraging employees to take the stairs is becoming a 
popular strategy at worksite wellness programs around the 
country. The Committee believes that the Federal Government 
should be a leader in encouraging workplace wellness. In 
addition, lessening the use of elevators by all will speed 
their movement for those who depend on them.
    The Committee believes that GSA has made some progress 
since the first effort to promote the use of stairs was 
initiated in the fiscal year 2006 appropriation bill; however, 
further effort is needed. The Committee directs that, to the 
greatest extent possible, GSA include in future GSA-owned and -
leased buildings signage displayed: (1) next to all banks of 
elevators or on elevator doors in GSA buildings; (2) at the 
entrance to all nonemergency use public stairwells; and (3) at 
the base of escalators, indicating the location of and 
encouraging use of the stairs. In addition, the Committee 
directs the GSA to ensure that design of new buildings promote 
the use of stairs. In order to ascertain precisely how much 
progress has been made and how much remains, GSA is directed to 
provide quarterly reports on the percentage of Federal 
buildings with such signage as well as on actions undertaken 
with regard to the design of new facilities, with a view to 
increasing the likely use of stairs.
    Cloud Computing.--The Committee supports GSA's cloud 
computing and data center consolidation activities and 
encourages the GSA to continue to assess and address the 
escalating costs, inefficiencies, and stove-piping related to 
the management of Federal data. The Committee urges GSA to 
administer funding for the Office of Citizen Services and 
Innovative Technologies in joint consultation with OMB, in a 
manner that enables agencies to consolidate at least 800 data 
centers by 2015. The Committee expects GSA to use any funds for 
related data center consolidation to enhance ongoing Government 
best-practices in infrastructure migration activities, 
including the consolidation, standardization, and optimization 
of data centers. For instance, the Department of Homeland 
Security has testified to the Committee that it expects to save 
approximately $5,000,000,000 in taxpayer funds over the next 20 
years due to recent data center consolidation efforts. Building 
on current successes across the Government will allow GSA to 
better demonstrate and measure the cost-savings potential of 
such activities and thus encourage other agencies to adopt such 
best practices.

     FEDERAL BUILDINGS FUND--LIMITATIONS ON AVAILABILITY OF REVENUE

Limitation on availability of revenue:
    Limitation on availability, 2011....................  $7,597,540,000
    Limitation on availability, budget estimate, 2012...   9,508,511,000
Committee recommendation................................   8,144,967,000

    The Federal Buildings Fund program consists of the 
following activities financed from rent charges:
    Construction and Acquisition of Facilities.--Space is 
acquired through the construction or purchase of facilities and 
prospectus-level extensions to existing buildings. All costs 
directly attributable to site acquisition, construction, and 
the full range of design and construction services, and 
management and inspection of construction projects are funded 
under this activity.
    Repairs and Alterations.--Repairs and alterations of public 
buildings as well as associated design and construction 
services are funded under this activity. Protection of the 
Government's investment, health and safety of building 
occupants, transfer of agencies from leased space, and cost 
effectiveness are the principal criteria used in establishing 
priorities. Primary consideration is given to repairs to 
prevent deterioration and damage to buildings, their support 
systems, and operating equipment. This activity also provides 
for conversion of existing facilities and nonprospectus 
extensions.
    Installment Acquisition Payments.--Payments are made for 
liabilities incurred under purchase contract authority and 
lease purchase arrangements. The periodic payments cover 
principal, interest, and other requirements on the debt 
incurred for construction of Federal buildings.
    Rental of Space.--Space is acquired through the leasing of 
buildings including space occupied by Federal agencies in U.S. 
Postal Service facilities. GSA provided 191 million square feet 
of rental space in fiscal year 2010. GSA expects to provide 198 
million square feet of rental space in fiscal year 2011 and 201 
million in fiscal year 2012.
    Building Operations.--Services are provided for Government-
owned and -leased facilities, including cleaning, utilities and 
fuel, maintenance, miscellaneous services (such as moving, 
evaluation of new materials and equipment, and field 
supervision), and general management and administration of all 
real property related programs including salaries and benefits 
paid from the Federal Buildings Fund.
    Other Programs.--When requested by Federal agencies, the 
Public Buildings Service provides building services, such as 
tenant alterations, cleaning and other operations, and 
protection services which are in excess of those services 
provided under the commercial rental charge. For presentation 
purposes, the balances of the Unconditional Gifts of Real, 
Personal, or Other Property Trust Fund have been combined with 
the Federal Buildings Fund.
    In fiscal year 2011, the Committee was forced to reduce 
Federal Building Fund program funding dramatically in order to 
help meet reduced spending targets. The Committee recognizes 
that this level cannot be sustained over time since Federal 
agencies and the Courts require adequate, safe, and appropriate 
space to conduct their important missions. Moreover, projects 
in the midst of construction and repair are especially 
adversely impacted when those efforts are disrupted, rendering 
these projects more expensive over time than necessary.
    The Committee is aware that the design-build project 
delivery method, which is conducted under one guaranteed 
contract, offers fast track aspects, cost savings, and 
decreased litigation claims. A study done by the Construction 
Industry Institute and Penn State University found that design-
build is 6 percent lower in cost, 12 percent faster in 
construction time, 33 percent faster in project completion, and 
higher quality in all measured categories. Therefore, the 
Committee encourages use of this method, when appropriate, in 
order to provide greater efficiency, lower life cycle costs, 
and expedite construction, repairs and alterations of Federal 
buildings.

                      CONSTRUCTION AND ACQUISITION

Limitation on availability, 2011........................     $82,000,000
Limitation on availability, budget estimate, 2012.......     839,642,000
Committee recommendation................................      65,000,000

                          PROGRAM DESCRIPTION

    The construction and acquisition fund shall be available 
for site, design, construction, management, and inspection 
costs for the construction of new Federal facilities.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation of $65,000,000 for 
construction and acquisition of facilities in fiscal year 2012.

                        REPAIRS AND ALTERATIONS

Limitation on availability, 2011........................    $280,000,000
Limitation on availability, budget estimate, 2012.......     868,902,000
Committee recommendation................................     280,000,000

                          PROGRAM DESCRIPTION

    Under this activity, the General Services Administration 
[GSA] executes its responsibility for repairs and alterations 
[R&A] of both Government-owned and -leased facilities under the 
control of GSA. The primary goal of this activity is to provide 
commercially equivalent space to tenant agencies. Safety, 
quality, and operating efficiency of facilities are given 
primary consideration in carrying out this responsibility.
    R&A workload requirements originate with scheduled onsite 
inspections of buildings by qualified regional engineers and 
building managers. The work identified through these 
inspections is programmed in order of priority into the 
Inventory Reporting Information System and incorporated into a 
5-year plan for accomplishment, based upon funding 
availability, urgency, and the volume of R&A work that GSA has 
the capability to execute annually. Since fiscal year 1995, 
design and construction services activities associated with 
repair and alteration projects have been funded in this 
account.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation of $280,000,000 for 
repairs and alterations in fiscal year 2012.
    The Committee has included $20,000,000 for a new judiciary 
capital security special emphasis program. This program is 
dedicated to improving physical security in buildings occupied 
by the judiciary in lieu of construction of brand new 
facilities, thereby providing cost savings and expedited 
delivery. Project priorities would be established 
collaboratively by the judiciary and the GSA. Funding provided 
through the judiciary capital security program will address the 
security deficiencies in existing buildings where physical, 
interior alterations are viable. The Committee expects the 
judiciary and the GSA to work collaboratively to assess the 
building conditions, viability of long-term use, and structural 
capacity for these stand-alone architectural solutions. Such 
solutions could include: constructing additional corridors, 
adding or reconfiguring elevators, building visual barriers, 
moving air-intakes, and enlarging security screening areas. A 
spending plan from GSA and the Judiciary is due to the 
Committee 90 days after enactment of this act. The plan shall 
also convey GSA's intentions for funding of any other special 
emphasis programs.

                    INSTALLMENT ACQUISITION PAYMENTS

Limitation on availability, 2011........................    $135,540,000
Limitation on availability, budget estimate, 2012.......     126,801,000
Committee recommendation................................     126,801,000

                          PROGRAM DESCRIPTION

    The Public Buildings Amendments of 1972 enable GSA to enter 
into contractual arrangements for the construction of a backlog 
of approved but unfunded projects. This activity provides for 
the payment of interest to the Federal Financing Bank related 
to facilities acquired pursuant to the Public Buildings 
Amendments of 1972 (40 U.S.C. 592).

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation of $126,801,000 for 
installment acquisition payments consistent with the budget 
request.

                            RENTAL OF SPACE

Limitation on availability, 2011........................  $4,830,000,000
Limitation on availability, budget estimate, 2012.......   5,285,198,000
Committee recommendation................................   5,285,198,000

                          PROGRAM DESCRIPTION

    GSA is responsible for leasing general purpose space and 
land incident thereto for Federal agencies, except in cases 
where GSA has delegated its leasing authority. GSA's policy is 
to lease privately owned buildings and land only when: (1) 
Federal space needs cannot be otherwise accommodated 
satisfactorily in existing Government-owned or -leased space; 
(2) leasing proves to be more efficient than the construction 
or alteration of a Federal building; (3) construction or 
alteration is not warranted because requirements in the 
community are insufficient or are indefinite in scope or 
duration; or (4) completion of a new Federal building within a 
reasonable time cannot be assured.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation of $5,285,198,000 for 
rental of space. The Committee recommendation is $455,198,000 
above the fiscal year 2011 enacted level and the same as the 
budget request.

                          BUILDING OPERATIONS

Limitation on availability, 2011........................  $2,270,000,000
Limitation on availability, budget estimate, 2012.......   2,387,968,000
Committee recommendation................................   2,387,968,000

                          PROGRAM DESCRIPTION

    This activity provides for the operation of all Government-
owned facilities under the jurisdiction of GSA and building 
services in GSA-leased space where the terms of the lease do 
not require the lessor to furnish such services. Services 
included in building operations are cleaning, protection, 
maintenance, payments for utilities and fuel, grounds 
maintenance, and elevator operations. Other related supporting 
services include various real property management and staff 
support activities such as space acquisition and assignment; 
the moving of Federal agencies as a result of space alterations 
in order to provide better space utilization in existing 
buildings; onsite inspection of building services and 
operations accomplished by private contractors; and various 
highly specialized contract administration support functions.
    The space, operations, and services referred to above are 
furnished by GSA to its tenant agencies in return for payment 
of rent. Due to considerations unique to their operation, GSA 
also provides varying levels of above-standard services in 
agency headquarters facilities, including those occupied by the 
Executive Office of the President, such as the east and west 
wings of the White House.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation of $2,387,968,000 for 
building operations. This amount is $117,968,000 above the 
fiscal year 2011 enacted level and the same as the budget 
request.

                         GOVERNMENT-WIDE POLICY

Appropriations, 2011....................................     $66,488,000
Budget estimate, 2012...................................     105,140,000
Committee recommendation................................      61,750,000

                          PROGRAM DESCRIPTION

    The Office of Government-wide Policy [OGP], working 
cooperatively with other agencies, provides the leadership 
needed to develop and evaluate policies associated with high 
performance green buildings and real property, acquisition 
policy, personal property, travel and transportation 
management, vehicles and aircraft, committee and regulations 
management, and management of Federal spending data. OGP 
collaborates with partner agencies and other stakeholders to 
improve public access to policy information and support data, 
and improve transparency in Government.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $61,750,000 
for Government-wide Policy. This amount is $4,738,000 below the 
fiscal year 2011 enacted level and $43,390,000 below the budget 
request.

                           OPERATING EXPENSES

Appropriations, 2011....................................     $69,882,000
Budget estimate, 2012...................................      70,022,000
Committee recommendation................................      70,000,000

                          PROGRAM DESCRIPTION

    Operating Expenses supports a variety of operational 
activities which are not feasible or appropriate for a user fee 
arrangement. Major programs include the personal property 
utilization and donation activities of the Federal Acquisition 
Service; the real property utilization and disposal activities 
of the Public Buildings Service; the activities of the Civilian 
Board of Contract Appeals; and the Management and 
Administration activities, including support of Government-wide 
emergency response and recovery activities, and top-level 
agency-wide management, administration, and communications 
activities.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $70,000,000 
for Operating Expenses. This amount is $118,000 above the 
fiscal year 2011 enacted level and $22,000 below the budget 
request.

                      OFFICE OF INSPECTOR GENERAL

Appropriations, 2011....................................     $58,882,000
Budget estimate, 2012...................................      62,358,000
Committee recommendation................................      58,000,000

                          PROGRAM DESCRIPTION

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

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $58,000,000 
for the Office of Inspector General. This amount is $882,000 
below the fiscal year 2011 enacted level and $4,358,000 below 
the budget request.
    Of the requested increases, funding is provided for the IT 
workflow management tool and the IT server system replacement.

                INFORMATION AND ENGAGEMENT FOR CITIZENS

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2011\1\.................................................
Budget estimate, 2012\2\................................................
Committee recommendation................................     $39,084,000

\1\In fiscal year 2011, $7,984,000 was provided for the Electronic 
Government Fund and $34,116,000 for the Federal Citizen Services Fund.
\2\The budget proposed funding separately with a request of $34,000,000 
for the Electronic Government Fund and $39,933,000 for the Federal 
Citizen Services Fund.

    The bill creates a new ``Information and Engagement for 
Citizens'' account by combining the ``Electronic Government 
Fund'' and ``Federal Citizen Services Fund''. While these funds 
were created at different periods of time and developed 
different programs, they share a common objective--making it 
easier for citizens to understand and interact with their 
Government. The purpose of this new office is to provide 
electronic or other methods of providing access and 
understanding of Federal information, benefits, and services to 
citizens, businesses, other governments, and the media.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $39,084,000, 
which is $39,084,000 more than fiscal year 2011 and $39,084,000 
more than the budget request. In fiscal year 2011, the 
``Electronic Government Fund'' was appropriated $7,984,000 and 
the ``Federal Citizen Services Fund'' was appropriated 
$34,116,000. While all program funding is provided to the 
Federal Citizen Services Fund, funding is intended for those 
purposes as well as for electronic government activities. The 
Committee expects the funds provided for these activities, 
combined with efficiency gains and resource prioritization, 
will result in increased delivery of information to the public 
and in the ease of transaction with the Government.
    All the income collected by the Office of Citizen Services 
and Innovative Technologies [OCSIT] in the form of 
reimbursements from Federal agencies, user fees for 
publications ordered by the public, payments from private 
entities for services rendered, and gifts from the public is 
available to the OCSIT without regard to fiscal year 
limitations, but is subject to an annual limitation of 
$90,000,000. Any revenues accruing in excess of this amount 
shall remain in the fund and are not available for expenditure 
except as authorized in appropriation acts.
    The Committee expects the Office of Management and Budget 
to submit a detailed expenditure plan prior to obligation of 
funds under this account. The plan should describe the projects 
selected, budget, timeline, objectives, and expected benefits 
and savings realized for each project.

                   ELECTRONIC GOVERNMENT [E-GOV] FUND

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2011....................................      $7,984,000
Budget estimate, 2012...................................      34,000,000
Committee recommendation\1\.............................................

\1\Funding is included under the Information and Engagement for Citizens 
account.

                          PROGRAM DESCRIPTION

    This program supports interagency ``electronic government'' 
or ``e-gov'' initiatives and projects that use the Internet or 
other electronic methods to provide individuals, businesses, 
and government agencies with simpler and more timely access to 
Federal information, benefits, services, and business 
opportunities. The program would also further the 
administration's implementation of the Government Paperwork 
Elimination Act [GPEA] of 1998, which calls upon agencies to 
provide the public with optional use and acceptance of 
electronic information, services, and signatures, when 
practicable.

                        COMMITTEE RECOMMENDATION

    Funding for this program has been subsumed into the new 
Information and Engagement for Citizens program.

           ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS

Appropriations, 2011....................................      $3,792,000
Budget estimate, 2012...................................       3,671,000
Committee recommendation................................       3,671,000

                          PROGRAM DESCRIPTION

    This appropriation provides pensions for office staffs, and 
related expenses for former Presidents Jimmy Carter, George 
H.W. Bush, William Clinton, and George W. Bush, and for the 
postal franking privileges for the widows of former Presidents 
Ronald Reagan and Gerald Ford.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $3,671,000 for allowances and 
office staff for former Presidents, $121,000 below the fiscal 
year 2011 funding level and the same as the budget request.
    Below is listed a detailed analysis of the Committee's 
recommendation for fiscal year 2012 funding:

                    FISCAL YEAR 2012 BUDGET ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                  Carter   G.H. Bush   Clinton   G.W. Bush    Widows     Total
----------------------------------------------------------------------------------------------------------------
Personnel Compensation........................         96         96         96        112  .........        400
Personnel Benefits............................          2         64        109        102  .........        277
Benefits for Former Presidents (pensions).....        205        205        217        217  .........        844
Travel........................................          2         56          5         60  .........        123
Rental Payments to GSA........................        106        171        440        392  .........      1,109
Communications:
    Telephone.................................         10         17          7         85  .........        119
    Postage...................................         15         13         14         20         14         76
Printing......................................          5         14         18         26  .........         63
Other Services................................         65        130         34        177  .........        406
Supplies......................................          5         15          2         40  .........         62
Equipment.....................................          7         63         36         86  .........        192
                                               -----------------------------------------------------------------
      Total Obligations.......................        518        844        978      1,317         14      3,671
----------------------------------------------------------------------------------------------------------------

             FEDERAL ACQUISITION WORKFORCE INITIATIVES FUND

Appropriations, 2011....................................................
Budget estimate, 2012...................................     $16,900,000
Committee recommendation................................................

                          PROGRAM DESCRIPTION

    This appropriation provides support for inter-agency 
initiatives and projects that will improve: (1) the ability of 
civilian agencies to assess the capacity and capability of the 
acquisition workforce necessary to develop and appropriately 
manage acquisitions; (2) the capacity, capability, and 
effectiveness of the civilian agency acquisition workforce to 
improve acquisition management; and (3) agencies' abilities to 
achieve the optimal mix of public and private sector resources 
to support agency operations. The activities supported through 
this fund are intended to foster and promote the development of 
the acquisition workforce and support the responsibilities 
provided for in the Office of Federal Procurement Policy Act.

                        COMMITTEE RECOMMENDATION

    While the Committee recognizes the important goals of the 
initiative, due to funding constraints, the Committee is unable 
to fund this initiative.

                     FEDERAL CITIZEN SERVICES FUND

Appropriations, 2011....................................     $34,116,000
Budget estimate, 2012...................................      39,933,000
Committee recommendation\1\.............................................

\1\Funding is included under the Information and Engagement for Citizens 
account.
---------------------------------------------------------------------------

                          program description

    The Federal Citizen Services Fund provides for the salaries 
and expenses of the Office of Citizen Services and Innovative 
Technologies [OCSIT]. OCSIT develops new ways for citizens, 
businesses, other governments, and the media to easily obtain 
information and services from the Government on the Web, via 
email, in print, and over the telephone. OCSIT leads several 
interagency groups to share best practices and develop 
strategies for improving the way Government provides services 
to the American public.
    OCSIT provides information and services to the public 
primarily through USA.gov and GobiernoUSA.gov, the official Web 
portal of the U.S. Government. OCSIT also operates 
pueblo.gsa.gov, consumeraction.gov and consumidor.gov, 
webcontent.gov, and kids.gov Web sites. OCSIT provides direct 
telephone (1-800-FED-INFO), e-mail and online assistance to 
citizens through the National Contact Center, and offers 
comprehensive and cost-effective contact center solutions to 
customer Federal agencies through the USA Services program. 
OCSIT also coordinates the publication and distribution of 
information through the Government Printing Office's Public 
Documents Distribution Center in Pueblo, Colorado.
    The Federal Citizen Services [FCS] Fund is financed from 
annual appropriations to pay for the salaries and expenses of 
OCSIT staff. Reimbursements from Federal agencies pay for the 
direct costs of information services OCSIT provides on their 
behalf. The FCS Fund also receives funding from user fees for 
publications ordered by the public, payments from private 
entities for services rendered, and gifts from the public. All 
income is available without regard to fiscal year limitations, 
but is subject to an annual aggregate expenditure limit as set 
forth in appropriation acts.

                        committee recommendation


                     (INCLUDING TRANSFER OF FUNDS)

                              (RESCISSION)

    Funding for this program has been subsumed into new 
Information and Engagement for Citizens office.

       ADMINISTRATIVE PROVISIONS--GENERAL SERVICES ADMINISTRATION

    Section 520 authorizes GSA to use funds for the hire of 
passenger motor vehicles.
    Section 521 authorizes GSA to transfer funds within the 
Federal buildings fund to meet program requirements.
    Section 522 requires that the fiscal year 2012 budget 
request meet certain standards.
    Section 523 provides that no funds may be used to increase 
the amount of occupiable square feet, provide cleaning 
services, security enhancements, or any other service usually 
provided, to any agency which does not pay the requested rate.
    Section 524 continues the provision that permits GSA to pay 
small claims less than $250,000 made against the Government.
    Section 525 provides that certain lease agreements must 
conform to an approved prospectus.
    Section 526 clarifies the authorized purposes of the 
Acquisition Workforce Training Fund.
    Section 527 provides for a land conveyance in San Joaquin 
County, California.
    Section 528 rescinds $4,600,000 in unobligated balances 
from Policy and Operations.
    Section 529 requires a report from the Administrator about 
programs, projects, or activities that are funded by 
appropriations to GSA but are not under the control or 
direction of the Administrator. Examples include, but are not 
limited to: the GSA Regulatory Information Service Center, the 
Federal Real Property Profile database, and various current and 
former Electronic Government projects. The report shall provide 
a description of each program, identify the organization 
approving management decisions and allocating funds, and the 
amount of GSA funds obligated by each program in fiscal years 
2005 through 2011 by GSA appropriation account.

                 Harry S Truman Scholarship Foundation


                         SALARIES AND EXPENSES

Appropriations, 2011....................................        $748,000
Budget estimate, 2012...................................................
Committee recommendation................................         700,000

                          PROGRAM DESCRIPTION

    The Harry S Truman Scholarship Foundation is an independent 
agency established by Congress in 1975 (Public Law 93-642) to 
encourage exceptional college students to pursue careers in 
public service through the Truman Scholarship program. The 
Truman Scholarship is a merit-based award available to college 
juniors who plan to pursue careers in Government or elsewhere 
in public service. Truman Scholars receive up to $30,000 for 
graduate or professional school, participate in leadership 
development activities, and have special opportunities for 
internships and employment with the Federal Government.
    The Foundation Trust Fund was established with a one-time 
$30,000,000 appropriation in 1976. The authorizing legislation 
directed that this endowment be invested solely in U.S. 
Treasury Securities, the interest from which has funded the 
Foundation's operating budget. With the decline in interest 
rates, the Foundation has experienced a significant decline in 
Federal financial support. From fiscal year 2002 to fiscal year 
2010, despite having cut expenditures by 27 percent, annual 
trust fund revenue has declined 68 percent. The Foundation 
anticipates a budget deficit of $1,400,000 without the 
requested appropriations.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $700,000 for 
the Harry S Truman Scholarship Foundation. This amount is 
$48,000 below the fiscal year 2011 enacted level and $700,000 
above the budget request. The appropriation is provided to 
offset the decline in trust fund revenues, to increase direct 
financial support to scholars, to ensure compliance with 
Government audit reporting requirements, and to invest in 
technology and financial development activities.

                     Merit Systems Protection Board


                         SALARIES AND EXPENSES

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2011....................................     $40,258,000
Budget estimate, 2012...................................      42,116,000
Committee recommendation................................      40,258,000

                          PROGRAM DESCRIPTION

    The Merit Systems Protection Board [MSPB] was established 
by the Civil Service Reform Act of 1978. MSPB is an independent 
quasi-judicial agency manifested to protect Federal merit 
systems against partisan political and other prohibited 
personnel practices and to ensure adequate protection for 
employees against abuses by agency management.
    MSPB assists Federal agencies in running a merit-based 
civil service system. This is accomplished on a case-by-case 
basis through hearing and deciding employee appeals and on a 
systemic basis by reviewing significant actions and regulations 
of the Office of Personnel Management [OPM] and conducting 
studies of the civil service and other merit systems. The 
intended results of MSPB's efforts are to assure that personnel 
actions taken against employees are processed within the law 
and that actions taken by OPM and other agencies support and 
enhance Federal merit principles.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $40,258,000 
for the Merit Systems Protection Board. This is equal to the 
fiscal year 2011 enacted level and a decrease of $1,858,000 to 
the budget request. The Committee makes available not more than 
$2,345,000 for adjudicating retirement appeals through an 
appropriation from the trust fund consistent with past 
practice.

            Morris K. Udall and Stewart L. Udall Foundation


            MORRIS K. UDALL AND STEWART L. UDALL TRUST FUND

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2011....................................      $2,495,000
Budget estimate, 2012...................................       2,200,000
Committee recommendation................................       2,200,000

                          PROGRAM DESCRIPTION

    The General Fund payment to the Morris K. Udall and Stewart 
L. Udall Trust Fund is invested in Treasury securities with 
maturities suitable to the needs of the Fund. Interest earnings 
from the investments are used to carry out the activities of 
the Morris K. Udall and Stewart L. Udall Foundation. The 
Foundation awards scholarships, fellowships, and grants, and 
funds activities of the Udall Center.
    The Morris K. Udall and Stewart L. Udall Foundation also 
supports training programs for professionals in health care 
policy and public policy, such as the Native Nations Institute 
[NNI]. NNI, based at the University of Arizona, provides Native 
Americans with leadership and management training, and analyzes 
policies relevant to tribes.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $2,200,000 for 
the Morris K. Udall and Stewart L. Udall Trust Fund. This 
amount is $295,000 below the fiscal year 2011 enacted level and 
equal to the budget request. The Committee includes language to 
allow up to 60 percent of the appropriation to be used for the 
expenses of the Native Nations Institute.

                 ENVIRONMENTAL DISPUTE RESOLUTION FUND

Appropriations, 2011....................................      $3,792,000
Budget estimate, 2012...................................       3,800,000
Committee recommendation................................       3,792,000

                          PROGRAM DESCRIPTION

    The U.S. Institute for Environmental Conflict Resolution is 
a Federal program established by Public Law 105-156 to assist 
parties in resolving environmental, natural resource, and 
public lands conflicts. The Institute is part of the Morris K. 
Udall and Stewart L. Udall Foundation and serves as an 
impartial, nonpartisan institution providing professional 
expertise, services, and resources to all parties involved in 
such disputes. The Institute helps parties determine whether 
collaborative problem solving is appropriate for specific 
environmental conflicts, how and when to bring all the parties 
together for discussion, and whether a third-party facilitator 
or mediator might be helpful in assisting the parties in their 
efforts to reach consensus or to resolve the conflict. In 
addition, the Institute maintains a roster of qualified 
facilitators and mediators with substantial experience in 
environmental conflict resolution and can help parties in 
selecting an appropriate neutral professional.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $3,792,000 for 
the Environmental Dispute Resolution Fund. This amount is equal 
to the fiscal year 2011 enacted level and is a decrease of 
$8,000 to the budget request.

              National Archives and Records Administration

    The National Archives and Records Administration [NARA] is 
the national recordkeeper, managing the Government's archives 
and records, and operating the Presidential libraries. NARA is 
an independent agency created by statute in 1934 and tasked 
with the unique mission to identify, access, protect, preserve, 
and make available for use the important documents and records 
of all three branches of the Federal Government. NARA 
administers the Information Security Oversight Office, is the 
publisher of the Federal Register, and makes grants for 
historical documentation through the National Historical 
Publications and Records Commission [NHPRC]. In addition, NARA 
is charged with additional responsibilities including mediating 
Freedom of Information Act disputes and coordinating controlled 
unclassified information.

                           OPERATING EXPENSES

Appropriations, 2011....................................    $339,090,000
Budget estimate, 2012...................................     403,742,000
Committee recommendation................................     378,845,000

                          PROGRAM DESCRIPTION

    This account provides for basic operations dealing with 
management of the Federal Government's archives and records, 
operation of Presidential libraries, review for 
declassification of classified security information, and other 
duties.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $378,845,000 for operating 
expenses of the National Archives and Records Administration 
for fiscal year 2012. This amount is $39,755,000 above the 
fiscal year 2011 enacted level and $24,897,000 below the budget 
request.
    The Committee's recommendation supports initiatives to 
strengthen NARA's record management leadership role; address 
archival storage needs; continue to develop, build, and expand 
the IT infrastructure to conduct the business of the National 
Declassification Center established in Executive Order 13526; 
and improve research room holdings protection.
    As requested, beginning in fiscal year 2012, the Operating 
Expenses account will also include resources for the operations 
and maintenance of the Electronic Records Archive, previously 
funded as a segregated account for purposes of the system 
development phase designated to cease as of the end of fiscal 
year 2011.
    The Committee notes that security of NARA's collections and 
holdings has been identified as a material weakness by the 
Archivist and cited as a management challenge by the Inspector 
General. The Committee directs and expects NARA to institute 
and enforce effective inventory controls and adequate levels of 
security within its facilities to reduce the risk of loss, 
damage, or destruction of irreplaceable historic documents and 
artifacts.

                      OFFICE OF INSPECTOR GENERAL

Appropriations, 2011....................................      $4,241,000
Budget estimate, 2012...................................       4,100,000
Committee recommendation................................       4,100,000

                          PROGRAM DESCRIPTION

    The mission of the Office of Inspector General [OIG] is to 
ensure that NARA safeguards and preserves the records of our 
Government while providing the American people with access to 
the essential documentation of their rights and the actions of 
their Government. The OIG accomplishes this by combating fraud, 
waste, and abuse through high-quality objective audits and 
investigations covering all aspects of agency operations at 45 
facilities nationwide. The OIG also serves as an independent, 
internal advocate for the economy, efficiency, and 
effectiveness of NARA and its operations.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $4,100,000 for the Office of 
Inspector General [OIG]. This amount is $141,000 below the 
fiscal year 2011 enacted level and the same as the budget 
request. The Committee supports a distinct account for the OIG 
in order to clearly identify the resources necessary to staff 
and operate the expanding mission-critical oversight and 
accountability functions performed by the OIG to ensure 
responsible NARA stewardship over public records. The Committee 
acknowledges that as the missions of NARA expand, including the 
establishment of the George W. Bush Presidential Library, the 
implementation of the Office of Government Information 
Services, and the start-up of the Controlled Unclassified 
Information Office, the OIG's audit and investigative 
responsibilities respectively grow.

                      ELECTRONIC RECORDS ARCHIVES

Appropriations, 2011....................................     $71,856,000
Budget estimate, 2012...................................................
Committee recommendation................................................

                          PROGRAM DESCRIPTION

    Since 2001, NARA has been developing an Electronic Records 
Archives [ERA] that will permit management of records 
electronically and ensure the preservation of and access to 
Government electronic records. With the rapid changes in 
technology today, the formats in which records are stored 
become obsolete within a few years, making records inaccessible 
even if they are preserved intact with the most modern 
technology. ERA will preserve electronic records generated in a 
manner that enables requesters to access them on computer 
systems now and in the future.
    In August 2010, OMB placed the ERA program on its list of 
26 high-risk Federal IT projects citing lack of detailed plans 
for the final two increments, low usage of the system, and a 
need for improved strategic planning, among other concerns. 
This ultimately led to a decision to halt further systems 
development at the end of fiscal year 2011. As a result, NARA 
will transition the ERA to ongoing operations and maintenance 
activities, incorporated within the Operating Expenses account.

                        COMMITTEE RECOMMENDATION

    The Committee supports the budget request that incorporates 
ERA into the NARA Operating Expenses account and authorizes the 
transfer to the Operating Expenses account of all remaining 
unobligated balances of funds made available for ERA 
development in prior fiscal years under the Electronic Records 
Archive heading.
    The Committee appreciates the complexity of building a 
system to accommodate the extensive and rapidly expanding 
volume of electronic records of the Government in past, 
present, and future formats and maintaining that system to 
preserve and provide reliable access to records of historic and 
intrinsic value.
    Over the past several years, the Committee has articulated 
its serious concerns, consistent with independent findings of 
the NARA Inspector General and the Government Accountability 
Office, about the sufficiency of ERA expenditure plans which 
hampered the Committee's ability to assess how particular 
investments would achieve specific system functionality and 
advance attainment of developmental milestones toward an 
operational system.
    The ERA project was scrutinized in an intensive TechStat 
session led by the Federal Chief Information Officer last year 
to evaluate at-risk IT projects to identify ways to fix 
performance, accelerate deliverables, and maximize efficiency 
and accountability. As a result, NARA and OMB mutually decided 
to discontinue the contractual developmental component at the 
close of fiscal year 2011. This will allow NARA to focus its 
attention on promoting Federal agency use of the current 
system's functionalities rather than making further investments 
in building a system that encountered cost increases, schedule 
slippage, and strategic management challenges.
    The Committee believes that providing reliable access to 
electronic records far into the future, regardless of 
advancements in technology, is of utmost importance. The 
Committee strongly urges NARA, as it operates and maintains the 
ERA, to ensure effective and efficient preservation, appraisal, 
scheduling, and routine transfer of electronic records by 
Federal agencies and to make efforts to accelerate user 
adoption of the ERA system a top priority.

                        REPAIRS AND RESTORATION

Appropriations, 2011....................................     $11,824,000
Budget estimate, 2012...................................       9,659,000
Committee recommendation................................       9,659,000

                          PROGRAM DESCRIPTION

    This account provides for the repair, alteration, and 
improvement of Archives facilities and Presidential libraries 
nationwide, and provides adequate storage for holdings. It will 
better enable NARA to maintain its facilities in proper 
condition for public visitors, researchers, and NARA employees, 
and also maintain the structural integrity of the buildings.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $9,659,000 for the repairs and 
restoration account. This amount is $2,165,000 below the fiscal 
year 2011 enacted level and the same as the budget request. The 
Committee is pleased to fully support the request, which 
restores funds for base requirements.
    The Committee supports removal of the restrictions on 
$6,000,000 provided under Public Law 111-8 and $341,000 
provided under Public Law 108-199 to fully fund base Repairs 
and Restoration requirements. This will permit NARA to devote 
unobligated balances remaining from the now-completed 
construction of John F. Kennedy Presidential Library and Museum 
improvements to other capital endeavors, particularly the top 
priority National Archives Experience Phase II project. It will 
also allow NARA to apply cost savings remaining from the 
Military Personnel Records Center requirements study funded in 
fiscal year 2004 to advancing critical facility repair, 
alteration, and improvement projects as outlined in the NARA 
Capital Improvements Plan.
    The Committee appreciates NARA's submission of an update of 
its comprehensive capital needs assessment for its entire 
infrastructure of Presidential libraries and records 
facilities, as part of the fiscal year 2012 budget submission 
and urges NARA to include an appropriate level of funding for 
repair of valuable historic Presidential libraries in the 
fiscal year 2013 budget request.

        NATIONAL HISTORICAL PUBLICATIONS AND RECORDS COMMISSION

                             GRANTS PROGRAM

Appropriations, 2011....................................      $6,986,000
Budget estimate, 2012...................................       5,000,000
Committee recommendation................................       5,000,000

                          PROGRAM DESCRIPTION

    The National Historical Publications and Records Commission 
[NHPRC] provides grants nationwide to preserve and publish 
records that document American history. Administered within the 
National Archives, which preserves Federal records, NHPRC helps 
State, local, and private institutions preserve non-Federal 
records, helps publish the papers of major figures in American 
history, and helps archivists and records managers improve 
their techniques, training, and ability to serve a range of 
information users. Since 1964, the NHPRC has awarded 
$207,000,000 to fund over 4,900 projects in all 50 States to 
connect Americans with the primary source materials of our 
history, culture, and democracy.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $5,000,000 for the National 
Historical Publications and Records Commission [NHPRC]. This 
amount is $1,986,000 below the fiscal year 2011 enacted level 
and the same as the budget request.
    The Committee supports the central role the NHPRC program 
plays in the preservation and dissemination of the Nation's 
documentary heritage and its success in leveraging private 
sector contributions.
    The Committee notes that the funding provided will enable 
NARA, through the NHPRC, to undertake a variety of initiatives, 
including advancing archives preservation, access, and 
digitization projects within the interlocking repositories of 
historic records and hidden collections; ensuring public access 
to some of the most important historical resources that are 
maintained outside of Federal repositories; and digitizing 
nationally significant historic records collections to 
facilitate round-the-clock Internet availability.

                  National Credit Union Administration


                       central liquidity facility


                          program description

    The National Credit Union Administration [NCUA] Central 
Liquidity Facility [CLF] was created by the National Credit 
Union Central Liquidity Facility Act (Public Law 95-630). The 
CLF is a mixed-ownership Government corporation managed by the 
National Credit Union Administration Board and owned by its 
member credit unions.
    The purpose of the CLF is to improve the general financial 
stability of credit unions by meeting their seasonal and 
emergency liquidity needs and thereby encourage savings, 
support consumer and mortgage lending, and provide basic 
financial resources to all segments of the economy. To become 
eligible for CLF services, credit unions invest in the capital 
stock of the CLF, and the facility uses the proceeds of such 
investments and the proceeds of borrowed funds to meet the 
liquidity needs of credit unions. The primary sources of funds 
for the CLF are stock subscriptions from credit unions and 
borrowings.
    The CLF may borrow funds from any source, with the amount 
of borrowing limited to 12 times the amount of subscribed 
capital stock and surplus.
    Loans are available to meet short-term requirements for 
funds attributable to emergency outflows from managerial 
difficulties or local economic downturns. Seasonal credit is 
also provided to accommodate fluctuations caused by cyclical 
changes in such areas as agriculture, education, and retail 
business. Loans can also be made to offset protracted credit 
problems caused by factors such as regional economic decline.

                        committee recommendation

    The Committee recommends that lending through the CLF be 
limited to the maximum level provided for by section 
307(a)(4)(A) of the Federal Credit Union Act. This limitation 
provides the NCUA maximum flexibility to assist with credit 
unions' financial liquidity during the economic downturn. The 
Committee also recommends the budget request of limiting 
administrative expenses for the CLF to $1,250,000 in fiscal 
year 2012.

               COMMUNITY DEVELOPMENT REVOLVING LOAN FUND

Appropriations, 2011....................................      $1,247,000
Budget estimate, 2012...................................       2,000,000
Committee recommendation................................       1,247,000

                          PROGRAM DESCRIPTION

    The Community Development Revolving Loan Fund Program 
[CDRLF] was established in 1979 to assist officially designated 
``low-income'' credit unions in providing basic financial 
services to low-income communities. Low-interest loans and 
deposits are made available to assist these credit unions. 
Loans or deposits are normally repaid in 5 years, although 
shorter repayment periods may be considered. Technical 
assistance grants [TAGs] are also available to low-income 
credit unions for improving operations as well as addressing 
safety and soundness issues. Credit unions use TAG funds for 
specific initiatives, including taxpayer assistance, financial 
education, home ownership initiatives, and training assistance.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $1,247,000 for technical 
assistance grants to community development credit unions. This 
funding level is $753,000 below the budget request and equal to 
the fiscal year 2011 enacted level. The Committee expects the 
CDRLF to continue making loans from available funds derived 
from repaid loans and interest earned on previous loans to 
designated credit unions.
    The Committee supports NCUA's outreach efforts to 
underserved rural and urban communities across America through 
technical assistance grants provided within CDRLF. The 
Committee encourages NCUA to continue its efforts to provide 
financial education, particularly regarding consumer credit and 
home mortgages, and to provide alternatives to predatory 
lending services through targeted technical assistance grants 
and support.

                      Office of Government Ethics


                         SALARIES AND EXPENSES

Appropriations, 2011....................................     $13,972,000
Budget estimate, 2012...................................      13,664,000
Committee recommendation................................      13,664,000

                          PROGRAM DESCRIPTION

    The Office of Government Ethics [OGE], a separate agency 
within the executive branch, was established by the Ethics in 
Government Act of 1978 (Public Law 95-521). The OGE is charged 
by law to provide overall direction of executive branch 
policies designed to prevent conflicts of interest and ensure 
high ethical standards for executive branch employers. The OGE 
carries out these responsibilities by promulgating and 
maintaining enforceable standards of ethical conduct for nearly 
4 million civilian employees and uniformed service members in 
more than 130 executive branch agencies and the White House; 
overseeing a financial disclosure system that reaches 28,000 
public and over 325,000 confidential filers; providing direct 
education and training products to 5,700 ethics officials; 
conducting outreach to the general public, the private sector, 
and civil society; and sharing good practices with and 
providing technical assistance to State, local, and foreign 
governments and international organizations.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $13,664,000 
for salaries and expenses of the OGE in fiscal year 2012. This 
amount is $308,000 below the fiscal year 2011 enacted level and 
the same as the budget request.
    Funds provided will enable the OGE to fulfill its core 
mission programs and its lead role in strengthening ethical 
culture within the executive branch, preventing conflicts of 
interest, and promoting good governance. The OGE has designed 
three budget priorities to support these goals.
    First, the OGE is advancing initiatives to modernize 
Government ethics laws, regulations, and programs, including 
fully implementing Executive Order 13490 and enhancing 
oversight of contractor ethics.
    Second, the OGE is harnessing technology to promote 
transparency, training, and oversight, of agency ethics 
programs, including initiating an electronic financial 
disclosure system for the more than 1,400 public and 
confidential financial disclosure filers whose reports OGE 
reviews and certifies, planning for and procuring a new agency 
Web site, replacing its deteriorating financial disclosure 
tracking system, and developing an information management 
system to manage requests for advice from executive branch 
ethics officials.
    Third, the OGE is working to promote continuity and 
succession planning in ethics programs, through four specific 
leadership initiatives, including preparing the executive 
branch ethics community for an anticipated increase in volume 
of financial disclosure filings by presidential nominees 
incident to the 2012 election; acquainting senior Government 
employees with the importance and scope of the executive branch 
ethics program; emphasizing continuity and succession planning 
as a major national training theme; and developing curriculum 
leading to an ethics official certification program. Experience 
has shown that public financial disclosure by nominees to 
Senate-confirmed Presidential appointments is a steady and 
uninterrupted process throughout an administration and that the 
OGE's transition workload responsibilities are ongoing.

                     Office of Personnel Management


                         SALARIES AND EXPENSES

Appropriations, 2011....................................     $97,774,000
Budget estimate, 2012...................................     100,027,000
Committee recommendation................................      97,774,000

                          PROGRAM DESCRIPTION

    The Office of Personnel Management [OPM] was established by 
Public Law 95-454, the Civil Service Reform Act of 1978, 
enacted on October 13, 1978. OPM is responsible for management 
of Federal human resources policy and oversight of the merit 
civil service system. Although individual agencies are largely 
responsible for personnel operations, OPM provides a 
Government-wide framework for human resources policy, advises 
and assists agencies (often on a reimbursable basis) with 
workforce planning and personnel matters, and ensures that 
agency operations are consistent with requirements of law on 
issues such as veterans preference and merit system compliance. 
OPM oversees examination of applicants for employment in the 
competitive service; issues regulations and policies on 
recruitment, hiring, classification and pay, training, and 
other aspects of personnel management; and manages the process 
for personnel security and background checks for suitability 
and national security clearances. OPM is also responsible for 
administering the retirement, health benefits, and life 
insurance programs affecting most Federal employees, retired 
Federal employees, and their families and survivors.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a general fund appropriation of 
$97,774,000 for the salaries and expenses of the Office of 
Personnel Management. This amount is the same as the fiscal 
year 2011 level and $2,253,000 below the budget request.
    The recommendation includes the requested funding for the 
Enterprise Human Resources Integration project, the Human 
Resources Line of Business project, and the workforce 
acquisition initiative.
    The Committee understands the importance of timely and 
effective implementation of the Office of Personnel 
Management's responsibilities under the Affordable Care Act, 
including the development of the multi-state health plans, 
support of the Federal Pre-existing Condition Insurance Plan, 
and the implementation of the requirement to allow tribal 
governments to participate in the Federal Employee Health 
Benefits and the Federal Employee Group Life Insurance 
programs.
    Retirement Processing.--The Committee is aware of efforts 
to address the backlog of retirement claims at OPM, including 
the hiring of 40 FTE during fiscal year 2011. As of May 2011, 
an employee filing for retirement receives an interim payment 
of 95 percent of the estimated annuity. The average case is 
processed fully in 117 days, with the maximum length of 
processing at 141 days for those cases involving a disability, 
court order, service credit, or survivor benefit. The Committee 
is supportive of efforts to expedite the backlog of claims and 
requests that OPM inform the Committee of developments as they 
occur.
    Retirement Modernization.--Modernization of the retirement 
records of Federal employees remains a high priority for the 
Committee. The Committee understands that work planned for 
fiscal year 2011 includes: modernizing critical calculator and 
retirement systems; automating manual paper-based retirement 
system through electronic data collection and applications; 
implementing automated tools to improve retirement case 
processing; and imaging incoming paper retirement records. The 
Committee appreciates receiving the quarterly reports and notes 
the importance of receiving status update briefings from OPM as 
developments and milestones occur and future plans are 
determined.
    Intergovernmental Personnel Act Mobility Program and 
Nursing Shortage.--In April 2010, OPM provided a report to 
Congress on nursing faculty and the Intergovernmental Personnel 
Act [IPA] Mobility Program, along with findings and 
recommendations. The Committee is pleased with OPM's initial 
efforts regarding the nurse and nurse faculty shortage, 
including the research conducted, the forum held, the 
recommendations provided, and the recognition that these 
efforts are a first step of a larger effort which OPM is 
leading. The Committee endorses the recommendations in the 
report and anticipates regular, 6-month updates on next steps, 
such as conducting additional forums, increasing program 
awareness, implementing efforts to use IPA to address the 
shortage, developing partnerships with accredited schools of 
nursing, and conducting outreach to academic institutions and 
key stakeholders on possible solutions, collecting and tracking 
data, as well as other specific recommendations outlined in the 
report.
    Inappropriate Use of Temporary Hiring Authority.--The 
Committee is aware that continuous and sustained inappropriate 
use of temporary hiring authority by Federal agencies occurs 
and that this remains unresolved. These problems date back to 
the early 1990s and were reported on by the Office of Personnel 
Management and the Merit Systems Protection Board (``Temporary 
Federal Employment: In Search of Flexibility and Fairness,'' 
Sept. 1994) and again in 2002 by the Government Accountability 
Office (GAO-02-296). The Committee directs OPM to report on 
options and recommendations to remedy the inequity no later 
than 90 days after enactment of this act. The report should 
include identification of agencies and types of positions where 
continuous and sustained inappropriate use of temporary hiring 
authority is occurring. Options to provide competitive status 
to employees performing regular and recurring work of a 
permanent nature under a series of temporary appointments 
should be explored and actions that can be taken to ensure that 
Federal agencies use appropriate hiring authorities in the 
future should be outlined in the report.
    Wellness.--In fiscal year 2010, the Committee provided 
$5,000,000 as requested in the budget, to conduct pilot 
programs which would serve as evaluation mechanisms for 
effective strategies to improve Federal employee health through 
targeted interventions in areas such as smoking cessation, 
disease management, prevention, and risk assessment. The 
purpose was to design a comprehensive policy to improve the 
health and wellness of Federal employees, leading to cost 
savings for all healthcare. OPM has been participating in the 
first pilot program, along with its neighbors, the General 
Services Administration and the Department of the Interior. The 
Committee directs OPM to report on the progress of this 
demonstration project, including measurements and outcomes 
within 90 days of enactment of this act.
    Consolidated Business Information System [CBIS].--The 
Committee is aware that the effort to replace the legacy 
financial system and manage OPM's trust funds has encountered 
defects in the hardware and software. This multi-year 
initiative began with an initial estimate of $141,000,000, now 
revised downward to $97,000,000. The Committee directs that OPM 
provide quarterly updates, reporting on milestone developments 
as well as any further problems, until the CBIS project is 
fully operational and problem-free.

                               limitation


                       (TRANSFER OF TRUST FUNDS)

Limitation, 2011........................................    $112,516,000
Budget estimate, 2012...................................     132,523,000
Committee recommendation................................     112,516,000

                          PROGRAM DESCRIPTION

    These funds will be transferred from the appropriate trust 
funds of the Office of Personnel Management to cover 
administrative expenses for the retirement and insurance 
programs, including the cost of automating the retirement 
recordkeeping systems.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation of $112,516,000, 
which is the same as the fiscal year 2011 level and $20,007,000 
less than the budget request.

                      OFFICE OF INSPECTOR GENERAL

                         salaries and expenses

Appropriations, 2011....................................      $3,142,000
Budget estimate, 2012...................................       3,804,000
Committee recommendation................................       3,142,000

                          PROGRAM DESCRIPTION

    The Office of Inspector General is charged with 
establishing policies for conducting and coordinating efforts 
which promote economy, efficiency, and integrity in the Office 
of Personnel Management's activities which prevent and detect 
fraud, waste, and mismanagement in the agency's programs. 
Contract audits provide professional advice to agency 
contracting officials on accounting and financial matters 
regarding the negotiation, award, administration, repricing, 
and settlement of contracts. Internal agency audits review and 
evaluate all facets of agency operations, including financial 
statements. Evaluation and inspection services provide detailed 
technical evaluations of agency operations. Insurance audits 
review the operations of health and life insurance carriers, 
healthcare providers, and insurance subscribers. The 
investigative function provides for the detection and 
investigation of improper and illegal activities involving 
programs, personnel, and operations. Administrative sanctions 
debar from participation in the health insurance program those 
healthcare providers whose conduct may pose a threat to the 
financial integrity of the program itself or to the well-being 
of insurance program enrollees.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $3,142,000 for 
salaries and expenses of the Office of Inspector General in 
fiscal year 2012. This amount is the same as the fiscal year 
2011 enacted level and $662,000 less than the budget request.

               (LIMITATION ON TRANSFER FROM TRUST FUNDS)

Limitation, 2011........................................     $21,174,000
Budget estimate, 2012...................................      21,559,000
Committee recommendation................................      21,174,000

                        COMMITTEE RECOMMENDATION

    The Committee recommends a limitation on transfers from the 
trust funds in support of the Office of Inspector General 
activities totaling $21,174,000 for fiscal year 2012. This 
amount is the same as the fiscal year 2011 enacted level, and 
$385,000 below the budget request.

      government payment for annuitants, employees health benefits

Appropriations, 2011.................................... $10,467,000,000
Budget estimate, 2012...................................  10,862,000,000
Committee recommendation................................  10,862,000,000

                          PROGRAM DESCRIPTION

    This appropriation covers the Government's share of the 
cost of health insurance for annuitants covered by the Federal 
Employees Health Benefits Program and the Retired Federal 
Employees Health Benefits Act of 1960, as well as 
administrative expenses incurred by OPM for these programs.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a mandatory appropriation of 
$10,862,000,000 for Government payments for annuitants, 
employees health benefits.

       government payment for annuitants, employee life insurance

Appropriations, 2011....................................     $50,000,000
Budget estimate, 2012...................................      52,000,000
Committee recommendation................................      52,000,000

                          PROGRAM DESCRIPTION

    Public Law 96-427, the Federal Employees' Group Life 
Insurance Act of 1980, requires that all employees under the 
age of 65 who separate from the Federal Government for purposes 
of retirement on or after January 1, 1990, continue to make 
contributions toward their basic life insurance coverage after 
retirement until they reach the age of 65. These retirees will 
contribute two-thirds of the cost of the basic life insurance 
premium, identical to the amount contributed by active Federal 
employees for basic life insurance coverage. As with the active 
Federal employees, the Government is required to contribute 
one-third of the cost of the premium for retirees' basic 
coverage. OPM, acting as the payroll office on behalf of 
Federal retirees, has requested, and the Committee has 
provided, the funding necessary to make the required Government 
contribution associated with annuitants' post-retirement life 
insurance coverage.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a mandatory appropriation of 
$52,000,000 for the Government payment for annuitants, employee 
life insurance.

        payment to civil service retirement and disability fund

Appropriations, 2011.................................... $10,076,000,000
Budget estimate, 2012...................................   9,979,000,000
Committee recommendation................................   9,979,000,000

                          PROGRAM DESCRIPTION

    The civil service retirement and disability fund was 
established in 1920 to administer the financing and payment of 
annuities to retired Federal employees and their survivors. The 
fund covers the operation of the Civil Service Retirement 
System and the Federal Employees' Retirement System.
    This appropriation provides for the Government's share of 
retirement costs, transfers of interest on the unfunded 
liability and annuity disbursements attributable to military 
service, and survivor annuities to eligible former spouses of 
some annuitants who did not elect survivor coverage.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a mandatory appropriation of 
$9,979,000,000 for payment to the civil service retirement and 
disability fund.

                       Office of Special Counsel


                         salaries and expenses

Appropriations, 2011....................................     $18,458,000
Budget estimate, 2012...................................      19,486,000
Committee recommendation................................      18,972,000

                          PROGRAM DESCRIPTION

    The U.S. Office of Special Counsel [OSC] provides a safe 
channel for Federal employees to report waste, fraud, abuse, 
and threats to public health and safety.
    The OSC was first established on January 1, 1979. From 1979 
until 1989, it operated as an autonomous investigative and 
prosecutorial arm of the Merit Systems Protection Board [MSPB]. 
In 1989, Congress enacted the Whistleblower Protection Act 
(Public Law 101-12), which made OSC an independent agency 
within the executive branch. In 1994, the Uniformed Services 
Employment and Reemployment Rights Act [USERRA] (Public Law 
103-353) became law. It defined employment-related rights of 
persons in connection with military service, prohibited 
discrimination against them because of that service, and gave 
OSC new authority to pursue remedies for violations by Federal 
agencies.
    The OSC continues to experience significant increases in 
its caseload. Overall, in fiscal year 2010, the OSC saw more 
than 8,270 instances of requests for assistance or action 
sought by Federal employees or other persons, marking an 
increase of 11 percent over the prior year. In fiscal year 
2010, the OSC's intake of cases totaled 3,950 new matters. This 
was an increase of 6 percent over the number of cases received 
in fiscal year 2009. Of the new matters received by OSC in 
2010, 66 percent of the cases were prohibited personnel 
practice complaints.
    The OSC also received 526 new Hatch Act complaints in 2010, 
representing a 6 percent increase from 2009. The OSC issued 
4,320 Hatch Act advisory opinions (including verbal and written 
advisory opinions) to persons who sought advice in 2010, an 
uptick of 15 percent over the number issued in 2009. In 
addition, the OSC's Disclosure Unit's whistleblower caseload 
increased to 961 cases in 2010, up over 32 percent from the 724 
cases in 2009 which itself was a 37 percent boost over 2008. 
During fiscal year 2010, the Disclosure Unit referred matters 
to agency heads for their review a total of 24 times.
    The OSC is also tasked with new USERRA case 
responsibilities pursuant to the Veterans' Benefits Act of 2010 
(Public Law 111-275) that directed a 3-year demonstration 
project involving the OSC and the Department of Labor designed 
to assess and compare agencies' performance in investigating 
and resolving claims against Federal executive agencies.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $18,972,000 
for the OSC. This amount is $514,000 above the fiscal year 2011 
enacted level and $514,000 below the budget request.
    The Committee acknowledges that the OSC continues to 
experience dramatic growth in its caseload, as a result of 
heightened awareness of the Hatch Act, a more vigorous focus on 
complaints under the Uniformed Services Employment and 
Reemployment Rights Act, and actions under the Whistleblower 
Protection Act.
    Moreover, the Committee is concerned that the OSC needs an 
increase of two additional staff in the USERRA Unit in order to 
ensure that the new pilot demonstration program authorized in 
2010 can be minimally viable. The Committee notes that the OSC 
budget request seeks only one new FTE for the USERRA 
Enforcement and Prosecution Program in addition to the three 
FTE currently on board. During the first Demonstration Project 
from 2005-2007, the OSC had 8-10 attorneys and investigators in 
the USERRA Unit, and staffing is now at 4. The Committee 
believes it is vital that the OSC have sufficient resources, 
and provides an additional amount above the fiscal year 2011 
enacted level to help the OSC succeed in its work to ensure 
high-corrective action rates for impacted veterans, prevent 
serious delays and backlogs in case processing, and 
expeditiously remedy USERRA violations.

                      Postal Regulatory Commission


                         SALARIES AND EXPENSES

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2011....................................     $14,304,000
Budget estimate, 2012...................................      14,450,000
Committee recommendation................................      14,304,000

                          PROGRAM DESCRIPTION

    The Postal Regulatory Commission is an independent agency 
that has exercised regulatory oversight over the United States 
Postal Service since its creation by the Postal Reorganization 
Act of 1970. For over three decades, that oversight consisted 
primarily of conducting public, on-the-record hearings 
concerning proposed rates, mail classification, and major 
service changes, and recommended decisions for action to the 
Postal Service Board of Governors.
    The Postal Accountability and Enhancement Act (Public Law 
109-435) assigned significant new responsibilities to the 
Commission. These enhanced authorities include providing 
regulatory oversight of the pricing of Postal Service products 
and services, ensuring Postal Service transparency and 
accountability, consulting on delivery service standards and 
performance measures, consulting on international postal 
policies, preventing cross-subsidization or other 
anticompetitive postal practices, and serving as a forum to act 
on complaints with postal products and services. The Commission 
provides leadership and recommends policies that foster a 
robust and viable postal system.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation, out of the 
Postal Fund, of $14,304,000 for the Postal Regulatory 
Commission. This amount is the same as the fiscal year 2011 
enacted level and $146,000 below the budget request. The funds 
will support 74 FTEs and enable the Commission to meet its 
mission of ensuring transparency and accountability in postal 
operations, services, and finances.
    The Committee notes that in fiscal year 2012, the 
Commission will be engaged in assessing the value of the 
universal service obligation to the Nation and the Postal 
Service's ability to continue to provide this service given its 
declining revenue; issuing an Annual Compliance Determination 
report assessing the Postal Service's compliance with the 
ratemaking regulations and applicable laws; conducting a 5-year 
review of the contribution share of Competitive Products, 
conducting a 5-year review and making recommendations on the 
Postal Accountability and Enhancement Act; continuing its 
active involvement in the Universal Postal Union [UPU], 
particularly in developing a modernized terminal dues system 
and promoting greater transparency and accountability; and 
pursuing special studies requested by the Postal Service, 
Congress, and as a result of Commission-initiated inquiries.

              Privacy and Civil Liberties Oversight Board


                         SALARIES AND EXPENSES

Appropriations, 2011....................................        $998,000
Budget estimate, 2012...................................       1,683,000
Committee recommendation................................       1,000,000

                          PROGRAM DESCRIPTION

    Recommended by the July 22, 2004 report of the National 
Commission on Terrorist Attacks Upon the United States (the 9/
11 Commission), the Privacy and Civil Liberties Oversight Board 
[PCLOB] was originally established through the Intelligence 
Reform and Terrorism Prevention Act of 2004 (Public Law 108-
458). The PCLOB was made a component of the White House Office 
within the Executive Office of the President.
    Under the Implementing Recommendations of the 9/11 
Commission Act of 2007 (Public Law 110-53), the PCLOB was 
reconstituted as an independent agency within the executive 
branch. The dual mission of the PCLOB is to:
  --analyze and review actions the executive branch takes to 
        protect the Nation from terrorism, ensuring that the 
        need for such actions is balanced with the need to 
        protect privacy and civil liberties; and
  --ensure that liberty concerns are appropriately considered 
        in the development and implementation of laws, 
        regulations, and policies related to efforts to protect 
        the Nation against terrorism.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $1,000,000 for 
the PCLOB. This amount is $2,000 above the fiscal year 2011 
enacted level and $683,000 below the budget request.
    The Committee strongly supports the mission of the PCLOB. 
The Committee notes that the former Board ceased operations on 
January 30, 2008 with the intention that a new, more 
independent Board would be instituted in its place. The 
Committee is seriously concerned that now, nearly 4 years 
later, the new PCLOB has not yet been reconstituted and staffed 
as required by Public Law 110-53. The Committee urges the 
administration to nominate qualified persons to the PCLOB as 
expeditiously as possible. The Committee urges the PCLOB, once 
it is reconstituted, to promptly provide a detailed budget 
justification to the Committee.

             Recovery Accountability and Transparency Board


                         SALARIES AND EXPENSES

Appropriations, 2011....................................................
Budget estimate, 2012...................................     $31,543,000
Committee recommendation................................      28,400,000

                          PROGRAM DESCRIPTION

    The Recovery Accountability and Transparency Board 
(Recovery Board) was established by the American Recovery and 
Reinvestment Act of 2009 (Recovery Act) to ensure 
accountability and transparency in the expenditure of Recovery 
Act funds and to minimize fraud, waste, and mismanagement. The 
Recovery Board analyzes Recovery Act projects for further in-
depth investigation or referral to Federal Inspectors General 
and operates a fraud hotline to allow individuals to report 
possible fraud, waste, and abuse. The Recovery Board also 
collects information from recipients of Recovery Act funds, 
compiles the information in a user-friendly format, and posts 
the information on its public Web site, Recovery.gov.
    Through fiscal year 2011, the expenses of the Recovery 
Board were funded by a Recovery Act appropriation. These funds 
are exhausted and new funding is required to continue the 
Recovery Board's responsibilities.

                        COMMITTEE RECOMMENDATION

    The Committee recommends $28,400,000. The recommendation is 
$28,400,000 above the fiscal year 2011 enacted level because 
the Recovery Board was operating using prior year balances 
during that year. The recommendation is $3,143,000 below the 
budget request due to the availability of unspent balances.

                   Securities and Exchange Commission


                         SALARIES AND EXPENSES

Appropriations, 2011....................................  $1,185,000,000
Budget estimate, 2012...................................   1,407,483,130
Committee recommendation................................   1,407,483,130

                          PROGRAM DESCRIPTION

    The Securities and Exchange Commission [SEC] is an 
independent agency responsible for administering many of the 
Nation's laws regulating the areas of securities and finance.
    The mission of the SEC is to administer and enforce Federal 
securities laws in order to protect investors, maintain fair, 
honest, and efficient markets, and promote capital formation. 
This includes ensuring full disclosure of financial 
information, regulating the Nation's securities markets, and 
preventing and policing fraud and malpractice in the securities 
and financial markets. The strength of the American economy and 
our Nation's financial markets is dependent upon investors' 
confidence in the financial disclosures and statements released 
by publicly traded companies.
    The SEC, as the investor's advocate, is responsible for 
overseeing approximately 35,000 entities, including 11,800 
investment advisers, 9,500 public companies, 4,200 mutual 
funds, and 5,400 broker-dealers with 175,000 branch offices. 
The SEC also oversees 600 transfer agents, 12 national 
securities exchanges, 10 clearing agencies, 10 nationally 
recognized statistical ratings organizations, as well as the 
Public Company Accounting Oversight Board, the Financial 
Industry Regulatory Authority, the Municipal Securities 
Rulemaking Board, and other self-regulatory organizations.
    The enactment of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act (Dodd-Frank Act) (Public Law 111-203) 
added significantly to SEC's responsibilities, including 
bringing transparency and accountability to over-the-counter 
derivatives market; registering and overseeing hedge fund and 
private equity advisers; enhanced supervision of nationally 
recognized statistical rating organizations and clearing 
agencies; heightened regulation of asset-backed securities; and 
creation of a new whistleblower program.

                        COMMITTEE RECOMMENDATION

    The Committee recommends a total budget (obligational) 
authority of $1,407,483,130 for the salaries and expenses of 
the SEC, to be fully derived from $1,407,483,130 in new fee 
collections. This total funding level is $222,483,130 above the 
fiscal year 2011 enacted level and the same as the budget 
request.
    Enactment of the Dodd-Frank Act altered the budgetary 
treatment of SEC fee receipts. For fiscal year 2012 and beyond, 
transaction fees receipts are to be treated as offsetting 
collections equal to the amount of the appropriation. This 
represents a wholesale transformation of how fee receipts have 
been historically available. In addition, the law established a 
``SEC Reserve Fund'' designated for necessary functions as 
determined by the SEC and drawn from registration fee receipts 
permitting the SEC to draw up to $50,000,000 per year, not to 
exceed a cumulative balance of $100,000,000 in a single year or 
annual spending in excess of $100,000,000. The Committee 
reminds the SEC of its obligation to notify Congress of the 
date, amount, and purpose of any obligation from the Fund 
within 10 days of such obligation.
    The Committee directs the SEC to submit, within 30 days of 
enactment, a detailed spending plan for the allocation of 
appropriated funds displayed by discrete program, project and 
activity, including staffing projections, specifying both FTEs 
and contractors, and planned investments in information 
technology.
    The Committee's recommended funding increase is expected to 
allow the SEC to more aggressively police the securities 
markets through examinations and enforcement actions, 
strengthen SEC's examination responsibilities, enhance risk-
based oversight of the investment management industry, expand 
inspections of credit rating agencies and permit SEC to conduct 
more comprehensive examinations, reach a broader universe of 
the entities it regulates, and improve its ability to uncover 
and prosecute fraud.
    In addition, the recommended increase supports urgent, 
critical investments in information technology upgrades so that 
SEC staff are equipped with cutting edge automation support 
tools to enhance their ability to promptly handle tips, 
complaints, and referrals as well as to better identify 
emerging risks using improved surveillance tools. The Committee 
expects the SEC to implement key controls to effectively 
safeguard the confidentiality, integrity, and availability of 
its financial and sensitive information and systems.
    The Committee strongly believes that fair and orderly 
markets are essential to restore public confidence in and 
bolster the integrity of our capital markets. The Committee 
emphasizes that with this significant recommended funding 
increase comes a concomitant responsibility on the part of the 
SEC to aggressively safeguard the investing public. The SEC 
must be vigilant in its enforcement of securities laws, and 
failures to properly investigate and take appropriate action 
will not be condoned.
    The Committee is highly concerned about a spate of audit 
and investigative reports issued by the SEC Inspector General 
in recent years revealing significant disturbing findings of 
waste or misuse of Government funds, inadequate management 
oversight of contracts and procurement, excessive costs and 
inefficiencies in real estate leasing and configuration of 
staff offices, and incidents of employee misconduct. 
Furthermore, the Committee notes with concern emerging reports 
concerning a serious lapse in preservation and retention of 
archival materials. It is imperative that the SEC use scarce 
Government resources wisely. These situations distract the SEC 
management from devoting full attention to its mission of 
protecting investors and maintaining fair, orderly, and 
efficient markets, particularly in tumultuous economic times. 
The Committee expects SEC management to continue to place a 
high priority on and invest sufficient resources in 
implementing and promptly completing corrective actions 
identified by the inspector general to ameliorate the problems 
identified to prevent recurrence.
    As required by the Dodd-Frank Act, the findings and 
recommendations of a comprehensive independent study of the 
SEC's organizational structure, personnel and resources, 
technology and resources, and the agency's relationship with 
self-regulatory organizations were released in March 2011. The 
Committee understands that in response to the issuance of the 
Boston Consulting Group's report, the SEC has instituted 
several internal working groups to address the recommendations. 
The Committee directs the SEC to submit to the Committee, 
within 90 days of enactment, a report summarizing the status of 
the internal assessments, describing actions taken and planned 
to institute administrative reforms, and identifying particular 
changes necessitating legislative action.
    The Committee stresses that with the enactment of the Dodd-
Frank Act, it is all the more critical for the SEC, in 
collaboration with the CFTC, to ensure optimum harmonization in 
executing the respective oversight responsibilities of each 
agency with respect to over-the-counter derivative products. 
The Committee expects the SEC and the CFTC to limit, to the 
greatest extent possible, inconsistent regulation of similar 
products and entities that could lead to opportunities for 
regulatory arbitrage. The Committee continues to support the 
use of funds to support the Joint SEC-CFTC Advisory Committee.
    The Committee remains concerned that American investors may 
be unwittingly investing in companies or organizations with 
ties to countries that sponsor terrorism or are linked to human 
rights violations. The Committee believes that a company's 
association with sponsors of terrorism and human rights abuses, 
no matter how large or small, can have a materially adverse 
result on a public company's operations, financial condition, 
earnings, and stock prices, all of which can negatively affect 
the value of an investment. Investors and consumers also have a 
reasonable right to know what activities their investments or 
purchases may be directly or indirectly supporting.
    In order to protect American investors' savings and to 
disclose these business relationships to investors, an Office 
of Global Security Risk was established within the Division of 
Corporation Finance. The Committee notes that under the Dodd-
Frank Act, public companies are required to provide disclosure 
to the SEC in matters involving conflict minerals, extractive 
industries, and mining safety matters. The Committee 
understands that the SEC will be implementing the requirements, 
as directed, in the coming months. The Committee expects the 
work of the Office to remain a high priority during fiscal year 
2012 and directs the SEC to continue to submit quarterly 
reports on its activities.
    The Committee is concerned that current SEC regulations 
leave broad discretion to companies to decide if disclosure of 
their activities is required with respect to business interests 
in or with a state sponsor of terrorism. Companies are only 
required to make disclosures in cases where the companies 
judges the information is ``material'' to investors or is 
necessary to ensure a required statement is not misleading. In 
November 2007, the SEC issued a concept release seeking comment 
about whether to develop a new mechanism to facilitate greater 
access to companies' disclosures concerning their business 
activities in or with state sponsors of terrorism. The comment 
period ended on January 22, 2008 and the SEC has taken no 
action since that time.
    The Committee believes that business conducted by a 
publicly traded company that could subject such company to 
sanctions should be considered material and disclosed. 
Therefore, the Committee directs the Commission to issue final 
rules that require each issuer to disclose activities that may 
subject it to sanctions under section 5 of the Iran Sanctions 
Act of 1996.
    Similarly, the human rights and sexual violence problems 
plaguing mineral rich Democratic Republic of Congo are long 
standing and well known. Industries using key minerals from 
this region have been aware of the problem and a number have 
already taken laudable steps to ensure their sourcing of 
minerals avoids fueling further violence. The Committee expects 
the clear congressional intent of section 1502 of the Dodd-
Frank Act to be implemented in a timely manner.
    The Committee directs the SEC to submit a report to the 
Committee, within 90 days of enactment, documenting the quality 
of public company reporting, under the February 8, 2010 
interpretive guidance on climate change disclosure obligations 
under Federal securities laws and regulations, on material 
physical and infrastructural risks, compliance with State, 
regional, Federal and international laws and policies 
addressing emissions, and business opportunities. The SEC is 
directed to include in the report a full description of its own 
initiatives to carry out the guidance, their efficacy, and the 
efforts it will implement in fiscal year 2012.
    Access to financial education, resources, services, and 
protections promotes better informed decisionmaking about 
investing and saving for long-term financial security. The 
Committee applauds the Office of Investor Education and 
Advocacy [OEIA] for its attention to and consideration of the 
views and interests of retail investors. The Committee 
encourages the OEIA to continue efforts, including financial 
literacy and education initiatives, to protect and advance the 
interests of retail investors.

                        Selective Service System


                         SALARIES AND EXPENSES

Appropriations, 2011....................................     $24,226,000
Budget estimate, 2012...................................      24,500,000
Committee recommendation................................      23,984,000

                          PROGRAM DESCRIPTION

    The Selective Service System is an independent Federal 
agency, operating with permanent authorization under the 
Military Selective Service Act (50 U.S.C. App. 451 et seq.). 
The agency is not part of the Department of Defense, but its 
basic mission is to be prepared to supply manpower to the Armed 
Forces adequate to ensure the security of the United States 
during a time of national emergency. Since 1973, the Armed 
Forces have relied on volunteers to fill military manpower 
requirements. However, the Selective Service System remains the 
primary vehicle by which personnel will be brought into the 
military if Congress and the President should authorize a 
return to the draft.
    In December 1987, Selective Service was tasked by law 
(Public Law 100-180) to develop plans for a post-mobilization 
healthcare personnel delivery system capable of providing the 
necessary critically skilled healthcare personnel to the Armed 
Forces in time of emergency. An automated system capable of 
handling mass registration and inductions is now complete, 
together with necessary draft legislation, a draft Presidential 
proclamation, prototype forms and letters, and other products. 
These products will be available should the need arise. The 
development of supplemental standby products, such as a 
compliance system for healthcare personnel, continues using 
very limited existing resources.

                        committee recommendation

    The Committee recommends an appropriation of $23,984,000 
for the Selective Service System. This amount is $242,000 below 
the fiscal year 2011 enacted level and $516,000 below the 
budget request.

                     Small Business Administration

Appropriations, 2011....................................    $729,738,000
Budget estimate, 2012...................................     985,439,000
Committee recommendation................................     955,387,000

    The Committee recommendation provides $955,387,000 for the 
Small Business Administration [SBA]. The recommendation is 
$225,649,000 above the fiscal year 2011 enacted level and 
$30,052,000 below the budget request. The recommendation 
includes $167,300,000 for the Disaster Loans Program Account 
designated by Congress as disaster relief pursuant to Public 
Law 111-25. Funding is distributed among the SBA appropriation 
accounts as described below.
    The Committee has been frustrated that recent SBA 
congressional justifications have been unnecessarily 
complicated. The Committee directs SBA to revise the format of 
the congressional justification for fiscal year 2013 so that 
the budget detail provided ties directly to enacted and 
requested appropriated amounts and information on SBA programs 
is accessible via an index.

                         SALARIES AND EXPENSES

Appropriations, 2011....................................    $432,571,000
Budget estimate, 2012...................................     427,296,000
Committee recommendation................................     404,202,000

    The Committee recommendation provides $404,202,000 for 
salaries and expenses of the SBA. The recommendation is 
$28,369,000 below the fiscal year 2011 enacted level and is 
$23,094,000 below the budget request.
    Noncredit Business Assistance Programs.--Within the amounts 
made available under this heading, the Committee recommendation 
provides $165,730,000 for the SBA non-credit business 
assistance programs. The recommendation is $5,480,000 above the 
budget request and $19,249,000 below the 2011 enacted level.
    The Committee recommendations for non-credit business 
assistance, by program, are displayed in the following table:

                                     NON-CREDIT BUSINESS ASSISTANCE PROGRAMS
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                    Fiscal year
                                                                    Fiscal year     2012 budget      Committee
                                                                   2011 enacted      estimate     recommendation
----------------------------------------------------------------------------------------------------------------
Small Business Development Centers..............................         112,774         103,000         112,774
Drug-free Workplace Grants......................................             998  ..............  ..............
SCORE...........................................................           6,986           7,000           6,986
Women's Business Centers........................................          13,972          14,000          13,972
Women's Business Council........................................             998           1,900             998
Microloan Technical Assistance..................................          21,956          10,000          21,956
Veterans Programs...............................................           2,495           2,500           2,500
PRIME...........................................................           7,984  ..............  ..............
Native American Outreach........................................           1,248           1,250           1,248
7(j) Technical Assistance.......................................           3,393           3,100           3,100
HUBZone.........................................................           2,196           2,500           2,196
Entrepreneurial Development Initiative..........................           9,980          12,000  ..............
Emerging Leaders................................................  ..............           3,000  ..............
                                                                 -----------------------------------------------
      Total, Non-credit Business Assistance Programs............         184,979         160,250         165,730
----------------------------------------------------------------------------------------------------------------

    The Committee directs that the amounts provided for SBA's 
Non-Credit Business Assistance Programs, as specified in the 
table above, shall be administered in the same manner as 
previous years and shall not be reduced, reallocated, or 
reprogrammed to provide additional funds for other programs, 
initiatives, or activities.
    The Committee continues to support the Small Business 
Development Center [SBDC] Program and recommends $112,774,000 
for fiscal year 2012, equal to the fiscal year 2011 enacted 
level and $9,774,000 above the budget request. The SBDC 
network--which encompasses over 900 service centers across the 
Nation--provides management and technical assistance to an 
estimated 1.2 million small business owners and aspiring 
entrepreneurs each year. As the economy struggles, SBDCs have 
reported a significant increase in demand for their expertise 
as businesses seek guidance on how to weather the economic 
downturn and as newly unemployed Americans look for advice on 
starting a small business as a new career path. Providing 
support for SBDCs is more critical than ever as our economy 
works to recover and grow.
    The Committee recommends $21,956,000 for grants to 
Microloan intermediaries under the Microloan program for 
marketing, management, and technical assistance provided to 
borrowers. An additional $3,678,000 is recommended under the 
heading ``Business Loans Program Account'' to support lending 
under the Microloan program. The Committee includes a provision 
that, for funding provided for fiscal year 2012, temporarily 
increases the maximum amount of grant funding eligibility for 
qualified Microloan intermediaries. This temporary condition 
will provide relief to Microloan intermediaries that are 
providing increased assistance to Microloan borrowers during 
the economic downturn.
    The Committee supports funding for veterans programs and 
veterans business outreach centers and provides $2,500,000 for 
veterans programs. When determining the allocation of the 
funding, the Committee strongly encourages SBA to consider 
centers with significant experience in conducting outreach to 
veterans.
    Operating Expenses.--Within the amounts made available 
under this heading, the Committee recommendation provides 
$238,472,000 for SBA's operating expenses. The recommendation 
is $9,120,000 below the 2011 enacted level to reflect the 
creation of a separate account for the Office of Advocacy; 
excluding that office, funding for operating expenses is equal 
to the 2011 enacted level. The recommendation is $28,574,000 
below the budget request.
    Within the amounts recommended for SBA's operating 
expenses, the Committee recommends $7,100,000 to continue the 
agency-wide effort to modernize SBA's loan management and 
accounting systems. The Committee commends SBA's decision to 
reformulate the planned modernization to reduce costs, shorten 
the time to completion, and reduce the risks associated with a 
long-term acquisition. SBA estimates that the costs under the 
new approach will total $43,000,000, a savings of $113,000,000 
from the original budget of $156,000,000. The Committee is 
concerned, however, about continued risks related to the 
acquisition and directs SBA to identify an executive-level 
staffer who shall be dedicated to agency-wide management, 
coordination, and implementation of the new system. The 
Committee directs SBA to continue to report quarterly to the 
Committees on Appropriations summarizing the agency's progress 
regarding the modernization effort and emphasizes the need for 
such reports to include plain language descriptions of the 
project in place of technical jargon.
    The Committee notes that section 1322 of the Small Business 
Jobs Act of 2010 (Public Law 111-240) requires prime 
contractors to utilize small business subcontractors included 
on Federal procurement bids unless such subcontractors are no 
longer in business or can no longer reasonably meet the 
requirements of the contract. The Committee directs SBA to 
submit a report within 180 days of enactment detailing the 
implementation of section 1322 and identifying further steps 
that can be taken to ensure that subcontractors listed on 
Federal procurement bids are included in work performed when 
appropriate.
    The Committee is concerned about instances where certain 
businesses are awarded small business prime contracts or 
subcontracts but a small business does not ultimately perform 
the work. The Committee urges SBA to work to ensure that only 
legitimate small business interests receive small business 
awards. The Committee directs SBA to submit a report within 180 
days of enactment identifying administrative, legislative, and 
regulatory steps that could be taken to address the practice of 
pass-throughs as it relates to Federal small business 
contracting.
    The Committee notes that the small business timber sale 
set-aside program is designed to serve many small rural 
communities and small timber mills. The Committee directs the 
Administrator to coordinate with the Forest Service and the 
Bureau of Land Management and provide a written report to the 
Committee within 60 days of enactment detailing SBA's current 
and planned activities related to communication with timber 
businesses in small rural communities.

                      OFFICE OF INSPECTOR GENERAL

Appropriations, 2011....................................     $16,267,400
Budget estimate, 2012...................................      18,400,000
Committee recommendation................................      16,267,400

    The Committee recommendation provides $16,267,400 for the 
Office of Inspector General. The recommendation is equal to the 
fiscal year 2011 enacted level and is $2,132,600 below the 
budget request.
    The Committee directs the Inspector General to continue 
routine analysis and reporting on SBA's modernization of its 
loan management and accounting systems, including acquisition, 
contractor oversight, implementation, and progress regarding 
budget and schedule.

                           OFFICE OF ADVOCACY

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2011\1\.................................................
Budget estimate, 2012...................................      $9,120,000
Committee recommendation................................       9,120,000

\1\Funding for the Office of Advocacy was included within funds provided 
under the heading ``Small Business Administration, Salaries and 
Expenses'' for fiscal year 2011.

    The Committee recommendation provides $9,120,000 for the 
Office of Advocacy. In fiscal year 2011 and prior years, 
funding for the Office of Advocacy was provided within SBA's 
Salaries and Expenses account. The Small Business Jobs Act of 
2010 (Public Law 111-240) required that the Office of Advocacy 
be funded through a separate appropriation. The Office of 
Advocacy, an independent office within SBA, solicits and 
represents the views, concerns, and interests of small 
businesses before Congress the White House, Federal agencies, 
---------------------------------------------------------------------------
Federal courts, and State policymakers.

                     BUSINESS LOANS PROGRAM ACCOUNT

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2011....................................    $235,528,000
Budget estimate, 2012...................................     363,323,000
Committee recommendation................................     358,498,000

    The Committee recommendation provides $358,498,000. The 
recommendation is $122,970,000 above the fiscal year 2011 
enacted level and is $4,825,000 below the budget request due to 
carryover balances.
    The recommendation provides $147,958,000 for administrative 
expenses, which may be transferred to and merged with SBA 
salaries and expenses to cover the common overhead expenses 
associated with the business loans programs.
    The recommendation provides $3,678,000 for the Microloan 
direct loan program. An additional amount of $21,956,000 is 
recommended under the heading ``Salaries and Expenses'' for 
technical assistance grants to Microlending intermediaries. The 
Committee directs SBA to continue to conduct outreach to 
existing financial entities that may be well-suited to 
participate in the Microloan program so that the program can 
grow and expand access to microcapital across the country. SBA 
shall submit a written report to the Committee on 
Appropriations within 90 days of enactment summarizing the 
agency's plans for expanding the reach of the Microloan 
program.
    The recommendation provides $206,862,000 to subsidize the 
7(a) and 504 guaranteed loan programs. For a typical year, 
estimated fees collected from lenders and borrowers fully 
offset estimated Government payments on losses under the 7(a) 
and 504 loan programs. However, the budget requests additional 
funding for fiscal year 2012 because fee collections are not 
expected to offset the cost to the Government for that year due 
to changes in assumptions related to the economic downturn. The 
recommended funding will allow SBA to continue operating the 
7(a) and 504 loan programs in fiscal year 2012. The Committee 
expects both programs to return to typical operation when the 
economy recovers.
    Data Collection on Small Business Lending.--The Committee 
is concerned that limited collection of timely, relevant data 
on small business lending has made it difficult to quantify the 
impact of the economic crisis, and the impact of various 
responses to the crisis, on small business access to credit. 
Sources of information are often limited to anecdotal evidence 
and survey data, particularly with regard to the demand for 
credit. Additionally, with regard to the supply of credit, the 
majority of current business lending data reflects bank 
inventory but not new loan originations.
    The need for timely, robust data to reflect both credit 
supply and demand has been widely noted, including in the May 
2010 Congressional Oversight Panel report titled ``The Small 
Business Credit Crunch and the Impact of the TARP.'' The 
Committee directs SBA, in coordination with the Federal 
Reserve, to submit a written report to the Committee within 90 
days of enactment on the feasibility and benefits of enhanced 
data collection on small business lending, including but not 
limited to data on loan origination and loan size.

                     DISASTER LOANS PROGRAM ACCOUNT

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2011....................................     $45,372,000
Budget estimate, 2012...................................     167,300,000
Committee recommendation................................     167,300,000

    The Committee recommends $167,300,000 for the 
administrative costs of the Disaster Loans program, 
$121,928,000 above the fiscal year 2011 enacted level. The 
recommendation is equal to the budget request. As always, SBA 
is urged to promptly notify the Committee of the status of 
disasters requiring loan assistance.

        ADMINISTRATIVE PROVISIONS--SMALL BUSINESS ADMINISTRATION

    Section 520 continues a provision concerning transfer 
authority and availability of funds.

                      United States Postal Service


                   PAYMENT TO THE POSTAL SERVICE FUND

Appropriations, 2011....................................     $86,681,000
Budget estimate, 2012...................................      78,153,000
Committee recommendation................................      78,153,000

                          PROGRAM DESCRIPTION

    The Post Office dates back to 1775. It became the Postal 
Service in 1971 as an independent establishment of the 
executive branch of the United States Government. The Postal 
Service's basic function and obligation is to provide postal 
services to bind the Nation together through the personal, 
educational, literary, and business correspondence of the 
people. Its mission is to provide prompt, reliable, and 
efficient services to patrons in all areas and render postal 
services to all communities. The Postal Service does not depend 
upon taxpayer subsidies through discretionary appropriations 
for its operations but generates nearly all of its more than 
$67,000,000,000 in annual gross revenue by charging users of 
the mail for the costs of postage, products, and services.

                        COMMITTEE RECOMMENDATION

    The Committee recommends appropriations totaling 
$78,153,000 for payment to the Postal Service Fund, a decrease 
of $8,528,000 below the fiscal year 2011 enacted level and the 
same as the budget request.
    This amount constitutes an advance appropriation for fiscal 
year 2013 to compensate for revenue forgone on free mail for 
the blind and for overseas voters. The Postal Service will have 
$74,905,000 available for fiscal year 2012 pursuant to section 
1569 of Public Law 112-10, division B.
    The Committee includes provisions in the bill that would 
ensure that mail for overseas voting and mail for the blind 
shall continue to be free; that 6-day delivery and rural 
delivery of mail shall continue without reduction; and that 
none of the funds provided be used to consolidate or close 
small rural and other small post offices in fiscal year 2012.
    Fiscal Health.--The Committee remains concerned about the 
poor fiscal health of the Postal Service. Decline in mail 
volume as a result of the economic recession and the diversion 
of letters and bill remittances to electronic modes of 
transmission continue to have a staggering impact on the Postal 
Service, which released its most recent financial data on 
August 8, 2011. The Postal Service experienced net losses for 
the 9 months ending June 30, 2011, of $5,700,000,000 in 2011 
compared to $5,400,000,000 in the same three quarter span of 
2010. The Committee recognizes the need for aggressive actions 
to reduce costs and better align the Postal Service 
infrastructure in the face of reduced customer demand.
    Mail Delivery.--The Committee believes that 6-day mail 
delivery is one of the most important services provided by the 
Federal Government to its citizens. Especially in rural and 
small-town America, this critical postal service is the 
linchpin that serves to bind the Nation together.
    Since fiscal year 1981, annual appropriations bills have 
each included language requiring 6-day per week postal 
delivery. The Postal Service has sought removal of this mandate 
to afford maximum delivery flexibility as an internal fiscal 
management tool.
    In response to the proposal, the Postal Regulatory 
Commission [PRC] conducted a fact-gathering evaluation, 
including hosting at least seven public field hearings, to 
solicit public input on the prospect of ending carrier street 
address delivery, collection at blue collection boxes, and most 
originating mail processing on Saturdays. In its advisory 
opinion issued in March 2011, the PRC opined that the Postal 
Service overestimated the annual net savings that might be 
realized from eliminating a delivery day. The PRC determined 
that eliminating one day's delivery would cause approximately 
25 percent of First-Class and Priority mail to be delayed by 2 
days and that the Postal Service did not evaluate the impact on 
customers who reside or conduct business in rural, remote, and 
non-contiguous areas.
    Postal Retail Network.--The Committee acknowledges that the 
Postal Service is undertaking significant reductions to its 
overhead, including the closure of postal retail facilities. 
Congress has given the Postal Service considerable discretion 
to decide how many post offices to erect and where to place 
them. The Committee notes that in fiscal year 2010, the Postal 
Service operated 31,871 retail facilities, nearly 26 percent 
fewer than the 43,112 operated in fiscal year 1970.
    Beginning in March 2011, the Postal Service began the 
process of closing as many as 2,000 post offices, in addition 
to nearly 500 others slated to be closed starting at the end of 
last year. In addition, the Postal Service is reviewing another 
16,000, effectively half of the Nation's existing post offices, 
which are operating at a deficit. In July 2011, the Postal 
Service announced a proposal to review whether to continue to 
service at over 3,650 under-utilized post offices across the 
country. Because of the implications for nationwide mail 
service, the PRC is evaluating the overall process of the 
Postal Service on the July proposal and will issue an advisory 
opinion when it concludes its work. The Committee appreciates 
the Postal Service's critical need to adjust its 
infrastructure, but emphasizes that it is imperative that the 
Postal Service strictly follow its discontinuance procedures 
and ensure open public participation for each facility under 
review.
    The Committee understands that the Postal Service has 
partnered with more than 63,000 locations such as supermarkets, 
drug stores, ATMs, and other retailers to sell postage and 
selected postal services. The online alternative at usps.com 
allows customers to conveniently access and obtain a diverse 
array of postal services, including tracking and confirmation, 
address changes, reservation and renewal of Post Office boxes, 
holding of mail, locating zip codes, obtaining shipping 
information, and purchasing and printing postage around the 
clock. In 2009, nearly 30 percent of postal retail transactions 
were conducted in locations other than a Post Office. The 
Committee strongly urges the Postal Service to continue to 
expand the co-location of postal services and other innovative 
approaches to serving communities, significantly grow its 
inventory of Automated Postal Centers for self-service access 
particularly in currently underserved areas, and widely 
disseminate information through national advertising promoting 
the benefits to postal customers of on-line and self-service 
options.
    Consolidating Area Mail Processing Facilities.--The 
Committee understands that as a way to reduce overhead expenses 
and achieve efficiency savings, the Postal Service is studying 
the economic feasibility of consolidating several area mail 
processing [AMP] facilities where mail is canceled and sorted 
across the country. While the Committee acknowledges that it 
may be costly for the Postal Service to continue to operate all 
of these large plants in its network given declining mail 
volume, the Committee has serious concerns about the potential 
impact on mail delivery service, jobs, and the local economy of 
the affected communities of the proposed shuttering of these 
facilities. The Committee directs the Postal Service to suspend 
any consolidations, closings, or job reductions at area mail 
processing facilities that have not had the benefit of a full 
AMP study and those where previous Postal Service analyses have 
found that no significant cost savings or efficiencies would be 
gained by such action. The Committee directs the Postal Service 
to include an economic impact assessment in its analyses.

                      OFFICE OF INSPECTOR GENERAL

                        (SALARIES AND EXPENSES)

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2011....................................    $243,908,000
Budget estimate, 2012...................................     244,397,000
Committee recommendation................................     241,468,000

                          PROGRAM DESCRIPTION

    The United States Postal Service Office of Inspector 
General [OIG] is an independent organization established in 
1996 and charged with reporting to Congress on the overall 
efficiency, effectiveness, and economy of Postal Service 
programs and operations. The OIG plays a key role in 
maintaining the integrity and accountability of America's 
postal service, its revenue and assets, and its employees. The 
OIG meets this responsibility by conducting and supervising 
objective and independent audits, investigations, and other 
reviews. In fiscal year 2010, the OIG efforts resulted in 378 
audits and evaluations being completed identifying potential 
monetary benefits of nearly $71,200,000,000, 3,983 completed 
investigative cases, 1,196 arrests and indictments, and 2,477 
administrative actions referred. These actions resulted in 
about $2,000,000,000 in monetary recoveries and cost avoidance 
in workers' compensation and contract fraud cost programs. As a 
result, the return-on-investment was $312.48, up from $46.41 in 
fiscal year 2009.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation, out of the 
Postal Fund, of $241,468,000 for the United States Postal 
Service Office of Inspector General. This amount is $2,440,000 
below the fiscal year 2011 funding level and $2,929,000 below 
the budget request. The Committee appreciates the efforts of 
the Inspector General to perform its exemplary audit and 
investigative work under severe spending constraints.

                        United States Tax Court


                         salaries and expenses

Appropriations, 2011....................................     $51,989,000
Budget estimate, 2012...................................      59,996,000
Committee recommendation................................      51,469,000

                          PROGRAM DESCRIPTION

    The U.S. Tax Court is an independent judicial body in the 
legislative branch established in 1969 under Article I of the 
Constitution of the United States. The Court was created to 
provide a national forum for the resolution of disputes between 
taxpayers and the Internal Revenue Service, resolve cases 
expeditiously while giving careful consideration to the merits 
of each matter, and ensure the uniform interpretation of the 
Internal Revenue Code. The matters over which the Court has 
jurisdiction are set forth in various sections of title 26 of 
the United States Code.
    The Court is composed of 19 judges, one of whom the judges 
elect as chief judge. Tax Court judges are appointed to 15-year 
terms by the President with the advice and consent of the 
Senate. In their judicial duties the judges are assisted by 
senior judges, who participate in the adjudication of regular 
cases, and by special trial judges, who hear small tax cases 
and certain regular cases assigned to them by the chief judge.
    The Court conducts trial sessions throughout the United 
States, including Hawaii and Alaska. Decisions by the Court are 
reviewable by the U.S. Courts of Appeals and, if certiorari is 
granted, by the Supreme Court.

                        COMMITTEE RECOMMENDATION

    The Committee recommends an appropriation of $51,469,000 
for the U.S. Tax Court. This amount is $520,000 below the 
fiscal year 2011 enacted level and $8,527,000 below the budget 
request. The Committee notes that the additional funding of 
$2,852,000 provided in section 1570 of Public Law 112-10, 
division B, was intended to help the Tax Court continue to 
comply with the Court Security Act of 2007 (Public Law 110-177) 
notably to address the costs for perimeter security 
improvements to the U.S. Tax Court headquarters.

                STATEMENT CONCERNING GENERAL PROVISIONS

    The Financial Services and General Government appropriation 
bill includes general provisions which govern both the 
activities of the agencies covered by the bill, and, in some 
cases, activities of agencies, programs, and general government 
activities that are not specifically covered by the bill.
    The bill contains a number of general provisions that have 
been carried in this bill for many years and which are routine 
in nature and scope. General provisions in the bill are 
explained under this section of the report. Those general 
provisions that deal with a single agency only are shown as 
administrative provisions immediately following that particular 
agency's or department's appropriation accounts in the bill. 
Those provisions that address activities or directives 
affecting all of the agencies covered in this bill are 
contained in title VI. General provisions that are Government-
wide in scope are contained in title VII of this bill. General 
provisions applicable to the District of Columbia are contained 
in title VIII of this bill.

                                TITLE VI

                      GENERAL PROVISIONS--THIS ACT

    Section 601 continues the provision prohibiting pay and 
other expenses of non-Federal parties intervening in regulatory 
or adjudicatory proceedings funded in this act.
    Section 602 continues the provision prohibiting obligations 
beyond the current fiscal year and prohibits transfers of funds 
unless expressly provided.
    Section 603 continues the provision limiting expenditures 
for any consulting service through procurement contracts where 
such expenditures are a matter of public record and available 
for public inspection.
    Section 604 continues the provision prohibiting funds in 
this act from being transferred without express authority.
    Section 605 continues the provision prohibiting the use of 
funds to engage in activities that would prohibit the 
enforcement of section 307 of the 1930 Tariff Act (46 Stat. 
590).
    Section 606 continues the provision prohibiting the use of 
funds unless the recipient agrees to comply with the Buy 
American Act.
    Section 607 continues the provision prohibiting funding for 
any person or entity convicted of violating the Buy American 
Act.
    Section 608 continues the provision authorizing the 
reprogramming of funds and specifies the reprogramming 
procedures for agencies funded by this act.
    Section 609 continues the provision ensuring that 50 
percent of unobligated balances may remain available for 
certain purposes.
    Section 610 continues the provision restricting the use of 
funds for the Executive Office of the President to request 
official background reports from the Federal Bureau of 
Investigation without the written consent of the individual who 
is the subject of the report.
    Section 611 continues the provision ensuring that the cost 
accounting standards shall not apply with respect to a contract 
under the Federal Employees Health Benefits Program.
    Section 612 continues the provision referencing nonforeign 
area cost of living allowances.
    Section 613 continues the provision waiving restrictions on 
the purchase of nondomestic articles, materials, and supplies 
in the case of acquisition by the Federal Government of 
information technology.
    Section 614 continues a provision on the acceptance by 
agencies or commissions funded by this act, or by their 
officers or employees, of payment or reimbursement for travel, 
subsistence, or related expenses from any person or entity (or 
their representative) that engages in activities regulated by 
such agencies or commissions.
    Section 615 continues a provision allowing the Public 
Company Accounting Oversight Board to obligate amounts 
collected from monetary penalties for the purpose of funding 
scholarships for accounting students, as authorized by the 
Sarbanes-Oxley Act of 2002 (Public Law 107-204).
    Section 616 is a provision rescinding $998,000 from 
unobligated balances of prior year appropriations made 
available for the Privacy and Civil Liberties Oversight Board.
    Section 617 continues a provision permitting the Securities 
and Exchange Commission and the Commodity Futures Trading 
Commission to fund a joint advisory committee to advise on 
emerging regulatory issues, notwithstanding section 708 of this 
act.
    Section 618 is a provision requiring the President to 
transmit proposed deficiency and supplemental appropriations 
requests to Congress on behalf of the judicial and legislative 
branches as is presently done for the executive branch.
    Section 619 is a provision permitting the Abraham Lincoln 
Bicentennial Foundation to be a recipient of matching funds 
distributed by the Treasury from revenue from the sale of the 
Lincoln bicentennial coin.
    Section 620 continues a provision related to agricultural 
trade with Cuba.
    Section 621 is a provision relating to publication in the 
Federal Register of Help America Vote Act State plans. The 
provision allows publication of a reference to the State plans, 
rather than publication of the complete State plans, thereby, 
creating a significant cost savings.
    Section 622 is a provision that adjusts, for inflation, 
fees related to mergers.
    Section 623 is a new provision that would prohibit the 
conveyance of the headquarters building of the Federal Trade 
Commission (located at 600 Pennsylvania Avenue, Northwest, in 
the District of Columbia) to any entity unless it is in the 
best interest of the taxpayer.
    Section 624 is a new provision related to sales of 
agricultural and medical goods to Cuba.

                               TITLE VII

                  GENERAL PROVISIONS--GOVERNMENT-WIDE

                Departments, Agencies, and Corporations

    Section 701 continues the provision requiring agencies to 
administer a policy designed to ensure that all of its 
workplaces are free from the illegal use of controlled 
substances.
    Section 702 modifies the provision setting specific limits 
on the cost of passenger vehicles purchased by the Federal 
Government with exceptions for police, heavy duty, electric 
hybrid, and clean fuels vehicles adding a new exception for 
commercial vehicles that operate on emerging motor vehicle 
technology.
    Section 703 continues the provision allowing funds made 
available to agencies for travel to also be used for quarters 
allowances and cost-of-living allowances.
    Section 704 continues the provision prohibiting the 
government, with certain specified exceptions, from employing 
non-U.S. citizens whose posts of duty would be in the 
continental United States.
    Section 705 continues the provision ensuring that agencies 
will have authority to pay the General Services Administration 
for space renovation and other services.
    Section 706 continues the provision allowing agencies to 
use receipts from the sale of materials for acquisition, waste 
reduction and prevention, environmental management programs, 
and other Federal employee programs.
    Section 707 continues the provision providing that funds 
for administrative expenses may be used to pay rent and other 
service costs in the District of Columbia.
    Section 708 continues the provision precluding interagency 
financing of groups absent prior statutory approval.
    Section 709 continues the provision prohibiting the use of 
appropriated funds for enforcing regulations disapproved in 
accordance with the applicable law of the United States.
    Section 710 continues the provision limiting the pay 
increases of certain prevailing rate employees.
    Section 711 continues the provision limiting the amount 
that can be used for redecoration of offices under certain 
circumstances.
    Section 712 continues the provision that permits 
interagency funding of national security and emergency 
preparedness telecommunications initiatives, which benefit 
multiple Federal departments, agencies, and entities.
    Section 713 continues the provision requiring agencies to 
certify that a schedule C appointment was not created solely or 
primarily to detail the employee to the White House.
    Section 714 continues the provision prohibiting the use of 
funds to prevent Federal employees from communicating with 
Congress or to take disciplinary or personnel actions against 
employees for such communication.
    Section 715 continues the provision prohibiting Federal 
training not directly related to the performance of official 
duties.
    Section 716 continues and updates the provision prohibiting 
the expenditure of funds for the implementation of agreements 
in certain nondisclosure policies unless certain provisions are 
included in the policies.
    Section 717 continues the provision prohibiting the use of 
appropriated funds for publicity or propaganda designed to 
support or defeat legislation pending before Congress.
    Section 718 continues the provision prohibiting the use of 
appropriated funds by an agency to provide home addresses of 
Federal employees to labor organizations, absent employee 
authorization or court order.
    Section 719 continues the provision prohibiting the use of 
appropriated funds to provide nonpublic information such as 
mailing or telephone lists to any person or organization 
outside of the Government without approval of the Committees on 
Appropriations.
    Section 720 continues the provision prohibiting the use of 
appropriated funds for publicity or propaganda purposes within 
the United States not authorized by Congress.
    Section 721 continues the provision directing agencies' 
employees to use official time in an honest effort to perform 
official duties.
    Section 722 continues the provision authorizing the use of 
current fiscal year funds to finance an appropriate share of 
the Federal Accounting Standards Advisory Board administrative 
costs.
    Section 723 continues the provision authorizing 
breastfeeding at any location in a Federal building or on 
Federal property.
    Section 724 continues the provision permitting interagency 
funding of the National Science and Technology Council, and 
requiring an OMB report on the budget and resources of the 
Council.
    Section 725 continues the provision requiring 
identification of the Federal agencies providing Federal funds 
and the amount provided for all proposals, solicitations, grant 
applications, forms, notifications, press releases, or other 
publications related to the distribution of funding to a State.
    Section 726 continues the provision prohibiting the use of 
funds to monitor personal information relating to the use of 
Federal Internet sites.
    Section 727 continues the provision regarding contraceptive 
coverage under the Federal Employees Health Benefits Plan.
    Section 728 continues the provision recognizing the U.S. 
Anti-Doping Agency as the official anti-doping agency for 
Olympic, Pan American, and Paralympic sports in the United 
States.
    Section 729 continues the provision allowing departments 
and agencies to use official travel funds to participate in the 
fractional aircraft ownership pilot programs.
    Section 730 continues the provision prohibiting funds for 
implementation of OPM regulations limiting detailees to the 
legislative branch and placing certain limitations on the Coast 
Guard Congressional Fellowship program.
    Section 731 continues the provision prohibiting the 
expenditure of funds for the acquisition of certain additional 
Federal law enforcement training facilities.
    Section 732 continues a provision prohibiting funds for E-
Government initiatives sponsored by OMB prior to 15 days 
following submission of a report to the House and Senate 
Committees on Appropriations and receipt of the Committees' 
approval to transfer funds. The section also prohibits funds 
for new e-government initiatives without the explicit approval 
of the Committees.
    Section 733 continues with modification the provision 
providing funding for the Midway Atoll Airfield.
    Section 734 continues a provision that prohibits the use of 
funds to begin or announce a study or a public-private 
competition regarding the conversion to contractor performance 
of any function performed by civilian Federal employees 
pursuant to Office of Management and Budget Circular A-76 or 
any other administrative regulation, directive, or policy.
    Section 735 continues a provision that prohibits executive 
branch agencies from creating or funding prepackaged news 
stories that are broadcast or distributed in the United States 
unless specific notification conditions are met.
    Section 736 continues the provision prohibiting funds used 
in contravention of the Privacy Act, section 552a of title 5, 
United States Code or section 522.224 of title 48 of the Code 
of Federal Regulations.
    Section 737 continues the provision requiring agencies to 
evaluate the creditworthiness of an individual before issuing a 
Government travel charge card and prohibits agencies from 
issuing a Government travel charge card to individuals with an 
unsatisfactory credit history.
    Section 738 continues a provision requiring OMB to submit a 
crosscut budget report on Great Lakes restoration activities 
not later than 45 days after the submission of the budget of 
the President to Congress.
    Section 739 continues a provision prohibiting funds in this 
or any other act from being used for a Federal contract with 
inverted corporations, unless the contract preceded this act or 
the Secretary grants a waiver in the interest of national 
security.
    Section 740 prohibits the Office of Personnel Management or 
any other agency from using funds to implement regulations 
changing the competitive areas under reductions-in-force for 
Federal employees.
    Section 741 makes technical modifications to a provision 
enacted in fiscal year 2010 requiring agency compilation of 
inventories of service contracts.
    Section 742 directs OMB to issue guidance relating to the 
ban on direct conversion to contract performance of work 
performed by Federal employees, absent public-private 
competition.
    Section 743 requires agencies to remit to the Civil Service 
Retirement and Disability Fund an amount equal to the Office of 
Personnel Management's average unit cost of processing a 
retirement claim for the preceding fiscal year ($101.23 per 
retirement in fiscal year 2011) to be available to the Office 
of Personnel Management for the cost of processing retirements 
of employees who separate under Voluntary Early Retirement 
Authority or who receive Voluntary Separation Incentive 
Payments.
    Section 744 prohibits certain personnel management 
constraints.
    Section 745 declares the inapplicability of these general 
provisions to title IV and title VIII.

                               TITLE VIII

                GENERAL PROVISIONS--DISTRICT OF COLUMBIA

    Section 801 continues the provision that specifies that an 
appropriation for a particular purpose or object shall be 
considered as the maximum amount that may be expended for said 
purpose or object.
    Section 802 continues the provision that permits funds for 
travel and payment of dues.
    Section 803 continues the provision that appropriates funds 
for refunding overpayments of taxes collected and for paying 
settlements and judgments against the District of Columbia 
government.
    Section 804 continues the provision that prohibits the use 
of the appropriation for publicity or propaganda purposes, and 
permits the use of local funds for carrying out lobbying 
activity.
    Section 805 continues the provision that establishes 
notification requirements for certain reprogramming and 
transfer requirements with respect to funds and specifies a 
timeframe for approval and execution of requests to reprogram 
and transfer local funds.
    Section 806 continues the provision that restricts the use 
of funds only for the objects for which the appropriations were 
made.
    Section 807 continues the provision that prohibits the use 
of Federal funds for salaries, expenses, or other costs 
associated with the offices of U.S. Senator or Representative 
under section 4(d) of the D.C. Statehood Constitutional 
Convention Initiatives of 1979.
    Section 808 continues the provision that restricts the use 
of official vehicles to official duties and not between a 
residence and workplace, except under certain circumstances.
    Section 809 continues the provision that prohibits the use 
of appropriated funds by the District of Columbia Attorney 
General or any other officer or entity of the District 
government to provide assistance for any petition drive or 
civil action which seeks to require Congress to provide for 
voting representation in Congress for the District of Columbia.
    Section 810 continues the provision that prohibits the use 
of Federal funds in this act to distribute, for the purpose of 
preventing the spread of blood borne pathogens, sterile needles 
or syringes in any location that has been determined by local 
public health officials or local law enforcement authorities to 
be inappropriate for such distribution.
    Section 811 continues the provision that includes a 
``conscience clause'' on legislation that pertains to 
contraceptive coverage by health insurance plans.
    Section 812 modifies and makes permanent a provision that 
requires the Mayor of the District of Columbia to submit annual 
reports on various indicators pertaining to the District of 
Columbia.
    Section 813 continues the provision prohibiting use of 
Federal funds to change the legality of marijuana use.
    Section 814 restricts the use of Federal funds for 
abortion, with certain exceptions.
    Section 815 continues a provision requiring the submittal 
of a revised appropriated funds budget that reflects the total 
amount of the approved appropriation and realigns all budget 
data for personal services and other-than-personal-services 
with anticipated actual expenditures.
    Section 816 continues a provision requiring the submittal 
of a revised appropriated funds budget for the District of 
Columbia Schools that aligns the schools' budgets to actual 
enrollment.
    Section 817 continues a provision authorizing the transfer 
of local funds to capital and enterprise funds.
    Section 818 is a new provision that permits the Public 
Defender Service for the District of Columbia to purchase 
professional liability insurance for its attorneys, staff, and 
board members.
    Section 819 is a new provision that modifies the frequency 
of management evaluations by the Government Accountability 
Office of the District of Columbia's chartering authority for 
public charter schools.
    Section 820 continues the provision which limits references 
to ``this Act'' as referring to only this title.

  COMPLIANCE WITH PARAGRAPH 7, RULE XVI OF THE STANDING RULES OF THE 
                                 SENATE

    Paragraph 7 of rule XVI requires that Committee reports on 
general appropriations bills identify each Committee amendment 
to the House bill ``which proposes an item of appropriation 
which is not made to carry out the provisions of an existing 
law, a treaty stipulation, or an act or resolution previously 
passed by the Senate during that session.''
    Items providing funding for fiscal year 2012 which lack 
authorization are as follows:
Department of the Treasury
    Departmental Offices
    Department-wide Systems and Capital Investments
    Office of the Inspector General
    Inspector General for Tax Administration
    Financial Crimes Enforcement Network
    Financial Management Service
    Alcohol and Tobacco Tax and Trade Bureau
    Bureau of the Public Debt
    Community Development and Financial Institutions Fund
    Internal Revenue Service:
        Taxpayer Services
        Enforcement
        Operations Support
        Business Systems Modernization
        Health Insurance Tax Credit Administration
Executive Office of the President
    Office of Management and Budget
    ONDCP: Training for drug court professionals
District of Columbia
    Federal Payment for the District of Columbia Water and 
Sewer Authority
    Federal Payment for Judicial Commissions
    Federal Payment for the D.C. National Guard
Independent Agencies
    Adminsitrative Conference of the United States
    Election Assistance Commission
    Federal Communications Commission
    Federal Election Commission
    Federal Trade Commission
    General Services Administration:
        Federal Buildings Fund\1\
---------------------------------------------------------------------------
    \1\Deposits into the Federal Buldings Fund are avilable for real 
property management and related activities in the amounts specified in 
annual appropriations laws, as provided by 40 U.S.C. 592.
---------------------------------------------------------------------------
    Merit Systems Protection Board
    National Archives and Records Administration, National 
Historical Publications and Records Commission
    National Credit Union Administration: Community Development 
Revolving Loan Fund
    Office of Government Ethics
    Office of Special Counsel

COMPLIANCE WITH PARAGRAPH 7(c), RULE XXVI OF THE STANDING RULES OF THE 
                                 SENATE

    Pursuant to paragraph 7(c) of rule XXVI, on September 15, 
2011, the Committee ordered favorably reported an original bill 
(S. 1573) making appropriations for financial services and 
general government for the fiscal year ending September 30, 
2012, and for other purposes, provided that the bill be subject 
to amendment and that the bill be consistent with its spending 
allocations, by a recorded vote of 16-14, a quorum being 
present. The vote was as follows:
        Yeas                          Nays
Chairman Inouye                     Mr. Cochran
Mr. Leahy                           Mr. McConnell
Mr. Harkin                          Mr. Shelby
Ms. Mikulski                        Mrs. Hutchison
Mr. Kohl                            Mr. Alexander
Mrs. Murray                         Ms. Collins
Mrs. Feinstein                      Ms. Murkowski
Mr. Durbin                          Mr. Graham
Mr. Johnson (SD)                    Mr. Kirk
Ms. Landrieu                        Mr. Coats
Mr. Reed                            Mr. Blunt
Mr. Lautenberg                      Mr. Moran
Mr. Nelson                          Mr. Hoeven
Mr. Pryor                           Mr. Johnson (WI)
Mr. Tester
Mr. Brown

 COMPLIANCE WITH PARAGRAPH 12, RULE XXVI OF THE STANDING RULES OF THE 
                                 SENATE

    Paragraph 12 of rule XXVI requires that Committee reports 
on a bill or joint resolution repealing or amending any statute 
or part of any statute include ``(a) the text of the statute or 
part thereof which is proposed to be repealed; and (b) a 
comparative print of that part of the bill or joint resolution 
making the amendment and of the statute or part thereof 
proposed to be amended, showing by stricken-through type and 
italics, parallel columns, or other appropriate typographical 
devices the omissions and insertions which would be made by the 
bill or joint resolution if enacted in the form recommended by 
the Committee.''
    In compliance with this rule, the following changes in 
existing law proposed to be made by this bill are shown as 
follows: existing law to be omitted is enclosed in black 
brackets; new matter is printed in italic; and existing law in 
which no change is proposed is shown in roman.

                      TITLE 15--COMMERCE AND TRADE


      Chapter 1--Monopolies and Combinations in Restraint of Trade


Sec. 18a. Premerger notification and waiting period

(a) Filing

           *       *       *       *       *       *       *


                Assessment and Collection of Filing Fees

    Pub. L. 101-162, title VI, Sec. 605, Nov. 21, 1989, 103 
Stat. 1031, as amended by Pub. L. 101-302, title II, May 25, 
1990, 104 Stat. 217; Pub. L. 102-395, title I, Oct. 6, 1992, 
106 Stat. 1847; Pub. L. 103-317, title I, Aug. 26, 1994, 108 
Stat. 1739; Pub. L. 106-553, Sec. (a)(2) [title VI, 
Sec. 630(b)], Dec. 21, 2000, 114 Stat. 2762, 2762A-109, 
provided that:
    ``(a) Five working days after enactment of this Act [Nov. 
21, 1989] and thereafter, the Federal Trade Commission shall 
assess and collect filing fees established in subsection (b) 
which shall be paid by persons acquiring voting securities or 
assets who are required to file premerger notifications by the 
[sic] section 7A of the Clayton Act (15 U.S.C. 18a) and the 
regulations promulgated thereunder. For purposes of said Act, 
no notification shall be considered filed until payment of the 
fee required by this section. Fees collected pursuant to this 
section shall be divided evenly between and credited to the 
appropriations, Federal Trade Commission, ``Salaries and 
Expenses'' and Department of Justice, ``Salaries and Expenses, 
Antitrust Division'': Provided, That fees in excess of 
$40,000,000 in fiscal year 1990 shall be deposited to the 
credit of the Treasury of the United States: Provided further, 
That fees made available to the Federal Trade Commission and 
the Antitrust Division herein shall remain available until 
expended.
    ``(b) [The filing fees] Subject to subsection (c), the 
filing fees referred to in subsection (a) are--
            ``(1) [$45,000] $60,000 if the aggregate total 
        amount determined under section 7A(a)(2) of the Clayton 
        Act (15 U.S.C. 18a(a)(2)) is less than $100,000,000 (as 
        adjusted and published for each fiscal year beginning 
        after September 30, 2004, in the same manner as 
        provided in section 8(a)(5) of the Clayton Act (15 
        U.S.C. 19(a)(5)) to reflect the percentage change in 
        the gross national product for such fiscal year 
        compared to the gross national product for the year 
        ending September 30, 2003);
            ``(2) [$125,000] $160,000 if the aggregate total 
        amount determined under section 7A(a)(2) of the Clayton 
        Act (15 U.S.C. 18a(a)(2)) is not less than $100,000,000 
        (as so adjusted and published) but less than 
        $500,000,000 (as so adjusted and published); [and]
            ``(3) [$280,000] $360,000 if the aggregate total 
        amount determined under section 7A(a)(2) of the Clayton 
        Act (15 U.S.C. 18a(a)(2)) is not less than $500,000,000 
        (as so adjusted and published)[.] but less than 
        $1,000,000,000 (as so adjusted and published); and''
            ``(4) $500,000 if the aggregate total amount 
        determined under section 7A(a)(2) of the Clayton Act 
        (15 U.S.C. 18a(a)(2)) is not less than $1,000,000,000 
        (as so adjusted and published).
    ``(c) For fiscal year 2013, and each fiscal year 
thereafter, the Federal Trade Commission shall publish in the 
Federal Register and increase the amount of each filing fee 
under subsection (b) in the same manner and on the same dates 
as provided under section 8(a)(5) of the Clayton Act (15 U.S.C. 
19(a)(5)) to reflect the percentage change in the gross 
national product for the fiscal year as compared to the gross 
national product for fiscal year 2011, except that the Federal 
Trade Commission--
            ``(1) shall round any increase in a filing fee 
        under this subsection to the nearest $5,000;
            ``(2) shall not increase filing fees under this 
        subsection if the increase in the gross national 
        product is less than 1 percent; and
            ``(3) shall not decrease filing fees under this 
        subsection.''
                                ------                                


Sec. 2053. Consumer Product Safety Commission

(a) Establishment; Chairman

           *       *       *       *       *       *       *

(g) Executive Director; officers and employees

    (1)(A) * * *

           *       *       *       *       *       *       *

    (4) The appointment of any officer (other than a 
Commissioner) or employee of the Commission shall not be 
subject, directly or indirectly, to review or approval by any 
officer or entity within the Executive Office of the President.
    (5) The Chairman may provide to officers and employees of 
the Commission who are appointed or assigned by the Commission 
to serve abroad (as defined in section 102 of the Foreign 
Service Act of 1980 (22 U.S.C. 3902)) travel, leave, and other 
benefits similar to those authorized for members of the Foreign 
Service of the United Service under chapter 9 of such Act (22 
U.S.C. 4081 et seq.).
                                ------                                


                      TITLE 31--MONEY AND FINANCE


                    SUBTITLE II--THE BUDGET PROCESS


   Chapter 11--The Budget and Fiscal, Budget, and Program Information


Sec. 1107. Deficiency and supplemental appropriations

    The President may submit to Congress proposed deficiency 
and supplemental appropriations the President decides are 
necessary because of laws enacted after the submission of the 
budget or that are in the public interest. The President shall 
include the reasons for the submission of the proposed 
appropriations and the reasons the proposed appropriations were 
not included in the budget. When the total proposed 
appropriations would have required the President to make a 
recommendation under section 1105(c) of this title if they had 
been included in the budget, the President shall make a 
recommendation under that section. The President shall transmit 
promptly to Congress without change, proposed deficiency and 
supplemental appropriations submitted to the President by the 
legislative branch and the judicial branch.
                                ------                                


TO ENACT CERTAIN LAWS RELATING TO PUBLIC CONTRACTS AS TITLE 41, UNITED 
      STATES CODE, ``PUBLIC CONTRACTS'', 2011, PUBLIC LAW 111-350


SEC. 3. ENACTMENT OF TITLE 41, UNITED STATES CODE.

    Certain general and permanent laws of the United States, 
related to public contracts, are revised, codified, and enacted 
as title 41, United States Code, ``Public Contracts'', as 
follows:

                       TITLE 41--PUBLIC CONTRACTS

                 Subtitle I--Federal Procurement Policy

            Division B--Office of Federal Procurement Policy


           Chapter 17--Agency Responsibilities and Procedures


Sec. 1703. Acquisition workforce

    (a) Description.--

           *       *       *       *       *       *       *

    (i) Training Fund.--
            (1) Purposes.--

           *       *       *       *       *       *       *

            (6) Amounts not to be used for other purposes.--The 
        Administrator of General Services, through the Office 
        of Federal Procurememt Policy, shall ensure that 
        amounts collected [for training] under this subsection 
        are not used for a purpose other than the purpose 
        specified in [paragraph (2)] subparagraphs (A) and (C) 
        to (J) of section 1122(a)(5) of this title.
                                ------                                


                      CONSUMER PRODUCT SAFETY ACT


  (Codified at 15 U.S.C. Sec. Sec. 2051-2089) (Public Law 92-573; 86 
                       Stat. 1207, Oct. 27, 1972)

SEC. 1. SHORT TITLE; TABLE OF CONTENTS

    This Act may be cited as the ``Consumer Product Safety 
Act.''

                           TABLE OF CONTENTS

Sec. 1. Short title; table of contents.
Sec. 17. Imported products.
Sec. 17A. Service of process.

SEC. 17. IMPORTED PRODUCTS

    (a) * * *

           *       *       *       *       *       *       *

    (h)(1) The Commission shall establish and maintain a 
permanent product surveillance program, in cooperation with 
other appropriate Federal agencies, for the purpose of carrying 
out the Commission's responsibilities under this Act and the 
other Acts administered by the Commission and preventing the 
entry of unsafe consumer products into the commerce of the 
United States.
    (2) The Commission may provide to the agencies with which 
it is cooperating under paragraph (1) such information, data, 
violator lists, test results, and other support, guidance, and 
documents as may be necessary or helpful for such agencies to 
cooperate with the Commission to carry out the product 
surveillance program under paragraph (1).
    (3) The Commission shall periodically report to the 
appropriate Congressional committees the results of the 
surveillance program under paragraph (1).

SEC. 17A. SERVICE OF PROCESS.

    (a) Designating Agents.--
            (1) In general.--The Commission may require a 
        manufacturer, or class of manufacturers, offering a 
        consumer product for import to designate an agent in 
        the United States on whom service of notices and 
        process in administrative and judicial proceedings may 
        be made.
            (2) Filing.--The designation shall be in writing 
        and filed with the Commission.
            (3) Modification.--The designation may be changed 
        in the same way originally made.
    (b) Service.--
            (1) Place of service.--An agent may be served at 
        the agent's office or usual place of residence.
            (2) Service on agent is service on manufacturer.--
        Service on the agent is deemed to be service on the 
        manufacturer.
            (3) No designated agent.--If a manufacturer does 
        not designate an agent, service may be made by posting 
        the notice or process in the office of the Commission.
                                ------                                


          JUDICIAL IMPROVEMENTS ACT, 1990, PUBLIC LAW 101-650


                      TITLE II--FEDERAL JUDGESHIPS

SEC. 203. DISTRICT JUDGES FOR THE DISTRICT COURTS.

    (a)  * * *

           *       *       *       *       *       *       *

    (c) Temporary Judgeships.--The President shall appoint, by 
and with the advice and consent of the Senate--

           *       *       *       *       *       *       *

Except with respect to the district of Kansas, the western 
district of Michigan, the eastern district of Pennsylvania, the 
district of Hawaii, and the northern district of Ohio, the 
first vacancy in the office of district judge in each of the 
judicial districts named in this subsection, occurring 10 years 
or more after the confirmation date of the judge named to fill 
the temporary judgeship created by this subsection, shall not 
be filled. The first vacancy in the office of district judge in 
the district of Kansas occurring [20 years] 21 years or more 
after the confirmation date of the judge named to fill the 
temporary judgeship created for such district under this 
subsection, shall not be filled. The first vacancy in the 
office of district judge in the western district of Michigan, 
occurring after December 1, 1995, shall not be filled. The 
first vacancy in the office of district judge in the eastern 
district of Pennsylvania, occurring 5 years or more after the 
confirmation date of the judge named to fill the temporary 
judgeship created for such district under this subsection, 
shall not be filled. The first vacancy in the office of 
district judge in the northern district of Ohio occurring 19 
years or more after the confirmation date of the judge named to 
fill the temporary judgeship created under this subsection 
shall not be filled. The first vacancy in the office of the 
district judge in the district of Hawaii occurring [17 years] 
18 years or more after the confirmation date of the judge named 
to fill the temporary judgeship created under this subsection 
shall not be filled. For districts named in this subsection for 
which multiple judgeships are created by this Act, the last of 
those judgeships filled shall be the judgeships created under 
this section.
                                ------                                


DEPARTMENTS OF COMMERCE, JUSTICE, AND STATE, THE JUDICIARY, AND RELATED 
         AGENCICES APPROPRIATIONS ACT, 1998, PUBLIC LAW 105-119


                     TITLE I--DEPARTMENT OF JUSTICE


               General Provisions--Department of Justice

  Sec. 122. (a) * * *

           *       *       *       *       *       *       *

  (g)(1) Notwithstanding any other provision of law and subject 
to paragraph (2), the Secretary of the Treasury is authorized 
to establish, for a period of [12 years] 14 years from date of 
enactment of this provision, a personnel management 
demonstration project providing for the compensation and 
performance management of not more than a combined total of 950 
employees who fill critical scientific, technical, engineering, 
intelligence analyst, language translator, and medical 
positions in the Bureau of Alcohol, Tobacco and Firearms.
                                ------                                


            HELP AMERICA VOTE ACT, 2002, PUBLIC LAW 107-252


                          TITLE II--COMMISSION

                    Subtitle D--Election Assistance

                     PART 1--REQUIREMENTS PAYMENTS

SEC. 253. CONDITION FOR RECEIPT OF FUNDS.

    (a) In General.-- * * *

           *       *       *       *       *       *       *

    (d) Timing for Filing of Certification.--A State may not 
file a statement of certification under subsection (a) until 
the expiration of the 45-day period (or, in the case of a 
fiscal year other than the first fiscal year for which a 
requirements payment is made to the State under this subtitle, 
the 30-day period) which begins on the date notice of the State 
plan under this subtitle is published in the Federal Register 
pursuant to section 255(b).

           *       *       *       *       *       *       *


SEC. 254. STATE PLAN.

    (a) In General.-- * * *
            (1) * * *

           *       *       *       *       *       *       *

            (11) How the State will conduct ongoing management 
        of the plan, except that the State may not make any 
        material change in the administration of the plan 
        unless notice of the change--
                    (A) * * *

           *       *       *       *       *       *       *

                    (C) takes effect only after the expiration 
                of the 30-day period which begins on the date 
                notice of the change is published in the 
                Federal Register in accordance with 
                subparagraph (A).

           *       *       *       *       *       *       *


SEC. 255. PROCESS FOR DEVELOPMENT AND FILING OF PLAN; PUBLICATION BY 
                    COMMISSION.

    (a) In General.-- * * *
    (b) Publication of Plan by Commission.--After receiving the 
State plan of a State under this subtitle, the Commission shall 
cause to have the plan posted on the Commission's website with 
a notice published in the Federal Register.
                                ------                                


   DISTRICT OF COLUMBIA APPROPRIATIONS ACT, 2005, PUBLIC LAW 108-335


                     TITLE III--GENERAL PROVISIONS

    Sec. 346. [Biennial] Evaluation of Charter School 
Authorizing Boards. (a) [Biennial management] Management 
evaluation of the District of Columbia Chartering Authorities 
for the District of Columbia Public Charter Schools shall be 
conducted by the Comptroller General of the United [States.] 
States every five years.
    (b) * * *
            (1) * * *

           *       *       *       *       *       *       *

            (6) Actual budget expenditures for the preceding 
        [2] 5 fiscal years;
                                ------                                


  ENSURING NEEDED HELP ARRIVES NEAR CALLERS EMPLOYING 911 ACT, 2004, 
                           PUBLIC LAW 108-494


                      TITLE III--UNIVERSAL SERVICE

SEC. 302. APPLICATION OF CERTAIN TITLE 31 PROVISIONS TO UNIVERSAL 
                    SERVICE FUND.

    (a) In General.--During the period beginning on the dateof 
enactment of this Act and ending on [December 31, 2011] 
December 31, 2013, section 1341 and subchapter II of chapter 15 
of title 31, United States Code, do not apply--

           *       *       *       *       *       *       *

    (b) Post-2005 Fulfillment of Protected Obligations.--
Section 1341 and subchapter II of chapter 15 of title 31, 
United States Code, do not apply after [December 31, 2011] 
December 31, 2013, to an expenditure or obligation described in 
subsection (a)(2) made or authorized during the period 
described in subsection (a).
                                ------                                


       ABRAHAM LINCOLN COMMEMORATIVE COIN ACT, PUBLIC LAW 109-285


SEC. 7. SURCHARGES.

    (a) In General.--All sales of coins issued under this Act 
shall include a surcharge of $10 per coin.
    (b) Distribution.--Subject to section 5134(f)(1), title 31, 
United States Code, all surcharges received by the Secretary 
from the sale of coins issued under this Act shall be promptly 
paid by the Secretary to the [Abraham Lincoln Bicentennial 
Commission to further the work of the Commission] Abraham 
Lincoln Bicentennial Foundation for the purposes of 
commemorating the bicentennial of the birth of Abraham Lincoln, 
and fostering and promoting the awareness and study of the life 
of Abraham Lincoln.
    (c) Audits.--The [Abraham Lincoln Bicentennial Commission] 
Abraham Lincoln Bicentennial Foundation shall be subject to the 
audit requirements of section 5134(f)(2) of title 31, United 
States Code.
                                ------                                


       CONSOLIDATED APPROPRIATIONS ACT, 2010, PUBLIC LAW 111-117

    Sec. 743. (a) Service Contract Inventory Requirement.--(1) 
Guidance.-- * * *

           *       *       *       *       *       *       *

    (3) Inventory contents.--Not later than December 31, 2010, 
and annually thereafter, the head of each executive agency 
required to submit an inventory in accordance with the Federal 
Activities Inventory Reform Act of 1998 (Public Law 105-270; 31 
U.S.C. 501 note), other than the Department of Defense, shall 
submit to the Office of Management and Budget an annual 
inventory of service contracts awarded or extended through the 
exercise of an option, and task orders issued under any such 
contract, on or after April 1, 2010, for or on behalf of such 
agency. For each service contract, the entry for an inventory 
under this section shall include, for the preceding fiscal 
year, the following:
            (A) * * *

           *       *       *       *       *       *       *

            (G) The number and work location of contractor and 
        subcontractor employees, expressed as full-time 
        equivalents for direct labor, compensated under the 
        contract, using direct labor hours and associated cost 
        date collected from contractors.

           *       *       *       *       *       *       *

    (e) Review and Planning Requirements.-- * * *
            (1) * * *
            (2) ensure that--
                    (A) * * *
                    (B) [the agency is giving special 
                management attention to functions that are 
                closely associated with inherently governmental 
                functions] the contracts exclude to the maximum 
                extent practicable functions that are closely 
                associated with inherently governmental 
                functions;

           *       *       *       *       *       *       *

    (g) Submission of Service Contract Inventory Before Public-
Private Competition.--Notwithstanding any other provision of 
law, beginning in fiscal year 2011, if an executive agency has 
not submitted to the Office of Management and Budget the 
inventory required under subsection (a)(3) for the prior fiscal 
year, the agency may not begin, plan for, or announce a study 
or public private competition regarding the conversion to 
contractor performance of any function performed by Federal 
employees pursuant to Office of Management and Budget Circular 
A-76 or any other administrative regulation or directive until 
such time as the inventory is submitted for the prior fiscal 
year.
    (h) Submission of Report on Actions Taken Before Public-
Private Competition May Occur.--An executive agency may not 
begin, plan for, or announce a study or public-private 
competition regarding the conversion to contractor performance 
of any function performed by Federal employees pursuant to 
Office of Management and Budget Circular A-76 or any other 
administrative regulation or directive until after that agency 
has submitted to the Office of Management and Budget a report, 
pursuant to subsection (f), that includes actions taken to 
convert from contractor to Federal employee performance 
functions that are not inherently governmental, closely 
associated with governmental functions, critical, or should not 
otherwise be reserved for performance by Federal employees. 
This subsection shall take effect beginning with the report 
required under subsection (f) that is included as an attachment 
to the annual inventory due by December 31, 2011.
    [(h)] (i) GAO Reports on Implementation.--
            (1) Report on guidance.--Not later than 120 days 
        after submission of the report by the Director of the 
        Office of Management and Budget required under 
        subsection (a)(2), the Comptroller General of the 
        United States shall report on the guidance issued and 
        actions taken by the Director. The report shall be 
        submitted to the Committee on Homeland Security and 
        Governmental Affairs and the Committee on 
        Appropriations of the Senate and the Committee on 
        Oversight and Government Reform and the Committee on 
        Appropriations of the House of Representatives.
            (2) Reports on inventories.--
                    (A) Initial inventory.--Not later than 
                September 30, 2011, the Comptroller General of 
                the United States shall submit a report to the 
                Committees named in the preceding paragraph on 
                the initial implementation by executive 
                agencies of the inventory requirement in 
                subsection (a)(3) with respect to inventories 
                required to be submitted by December 31, 2010.
                    (B) Second inventory.--Not later than 
                September 30, 2012, the Comptroller General 
                shall submit a report to the same Committees on 
                annual inventories required to be submitted by 
                December 31, 2011.
            (3) Periodic briefings.--The Comptroller General 
        shall provide periodic briefings, as may be requested 
        by the Committees, on matters related to implementation 
        of this section.
    [(i)] (j) Executive Agency Defined.--In this section, the 
term ``executive agency'' has the meaning given the term in 
section 4 of the Office of Federal Procurement Policy Act (41 
U.S.C. 403).
                        BUDGETARY IMPACT OF BILL


  PREPARED IN CONSULTATION WITH THE CONGRESSIONAL BUDGET OFFICE PURSUANT TO SEC. 308(a), PUBLIC LAW 93-344, AS
                                                     AMENDED
                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                  Budget authority               Outlays
                                                             ---------------------------------------------------
                                                               Committee    Amount  in   Committee    Amount  in
                                                               allocation      bill      allocation      bill
----------------------------------------------------------------------------------------------------------------
Comparison of amounts in the bill with Committee allocations
 to its subcommittees of amounts in the budget resolution
 for 2012: Subcommittee on Financial Services and General
 Government:
    Mandatory...............................................       21,455       21,455       21,450    \1\21,450
    Discretionary...........................................       21,731       21,898       25,920    \1\25,890
        Security............................................  ...........  ...........           NA           NA
        Nonsecurity.........................................       21,731       21,898           NA           NA
Projections of outlays associated with the recommendation:
    2012....................................................  ...........  ...........  ...........    \2\39,695
    2013....................................................  ...........  ...........  ...........        3,373
    2014....................................................  ...........  ...........  ...........          459
    2015....................................................  ...........  ...........  ...........           68
    2016 and future years...................................  ...........  ...........  ...........           26
Financial assistance to State and local governments for                NA          659           NA          451
 2012.......................................................

----------------------------------------------------------------------------------------------------------------
\1\Includes outlays from prior-year budget authority.
\2\Excludes outlays from prior-year budget authority.

NA: Not applicable.

Consistent with the funding recommended in the bill for disaster funding and in accordance with section
  251(b)(2)(D) of the BBEDCA and section 106 of the Deficit Control Act of 2011, the Committee anticipates that
  the Budget Committee will file a revised section 302(a) allocation for the Committee on Appropriations
  reflecting an upward adjustment of $167,000,000 in budget authority plus associated outlays.


  COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 2011 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL FOR FISCAL
                                                                        YEAR 2012
                                                                [In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                         Senate Committee recommendation
                                                                                                                             compared with (+ or -)
                                Item                                       2011       Budget estimate     Committee    ---------------------------------
                                                                      appropriation                     recommendation        2012
                                                                                                                         appropriation   Budget estimate
--------------------------------------------------------------------------------------------------------------------------------------------------------

                TITLE I--DEPARTMENT OF THE TREASURY

                        Departmental Offices

Salaries and expenses..............................................         306,388          324,889          306,388   ...............         -18,501
Terrorism and financial intelligence...............................  ...............  ...............  ...............  ...............  ...............
Department-wide systems and capital investments programs...........           3,992   ...............  ...............          -3,992   ...............
Office of Inspector General........................................          29,641           29,855           29,641   ...............            -214
Treasury Inspector General for Tax Administration..................         151,696          157,831          151,696   ...............          -6,135
Special Inspector General for TARP.................................          36,227           47,374           41,800           +5,573           -5,574
Financial Crimes Enforcement Network...............................         110,788           84,297          110,788   ...............         +26,491
Treasury forfeiture fund (rescission)..............................        -400,000         -600,000         -750,000         -350,000         -150,000
                                                                    ------------------------------------------------------------------------------------
      Total, Departmental Offices..................................         238,732           44,246         -109,687         -348,419         -153,933

Financial Management Service.......................................         232,786          218,805          217,805          -14,981           -1,000
Alcohol and Tobacco Tax and Trade Bureau...........................         100,798           97,878           99,878             -920           +2,000
Bureau of the Public Debt..........................................         174,635          165,635          165,635           -9,000   ...............

Community development financial institutions fund program account..         226,546          227,259          200,000          -26,546          -27,259
                                                                    ------------------------------------------------------------------------------------
      Subtotal.....................................................         226,546          227,259          200,000          -26,546          -27,259

Payment of government losses in shipment...........................           2,000            2,000            2,000   ...............  ...............
                                                                    ------------------------------------------------------------------------------------
      Total, Department of the Treasury, non-IRS...................         975,497          755,823          575,631         -399,866         -180,192

                      Internal Revenue Service

Taxpayer services..................................................       2,274,272        2,345,133        2,195,522          -78,750         -149,611

Enforcement........................................................       5,492,992        5,030,619        5,228,613         -264,379         +197,994
    Enhanced tax enforcement activities............................  ...............         936,000   ...............  ...............        -936,000
                                                                    ------------------------------------------------------------------------------------
        Subtotal...................................................       5,492,992        5,966,619        5,228,613         -264,379         -738,006

Operations support.................................................       4,075,716        4,299,526        3,893,216         -182,500         -406,310
    Enhanced tax enforcement activities............................  ...............         321,000   ...............  ...............        -321,000
                                                                    ------------------------------------------------------------------------------------
        Subtotal...................................................       4,075,716        4,620,526        3,893,216         -182,500         -727,310

Business systems modernization.....................................         263,369          333,600          330,210          +66,841           -3,390
Health Insurance Tax Credit Administration.........................          15,481           18,029           15,481   ...............          -2,548
                                                                    ------------------------------------------------------------------------------------
      Total, Internal Revenue Service..............................      12,121,830       13,283,907       11,663,042         -458,788       -1,620,865
                                                                    ====================================================================================

      Total, title I, Department of the Treasury...................      13,097,327       14,039,730       12,238,673         -858,654       -1,801,057
          Appropriations...........................................     (13,497,327)     (14,639,730)     (12,988,673)       (-508,654)     (-1,651,057)
          Rescissions..............................................       (-400,000)       (-600,000)       (-750,000)       (-350,000)       (-150,000)
      (Mandatory)..................................................          (2,000)          (2,000)          (2,000)  ...............  ...............
      (Discretionary)..............................................     (13,095,327)     (14,037,730)     (12,236,673)       (-858,654)     (-1,801,057)
                                                                    ====================================================================================

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

                          The White House

Salaries and expenses (including Office of Policy Development).....          58,435           58,374           57,851             -584             -523
    Compensation of the President..................................             450              450              450   ...............  ...............
        Sec. 628...................................................  ...............  ...............  ...............  ...............  ...............
                                                                    ------------------------------------------------------------------------------------
          Subtotal.................................................          58,885           58,824           58,301             -584             -523

Executive Residence at the White House:
    Operating expenses.............................................          13,673           13,658           13,536             -137             -122
    White House repair and restoration.............................           2,001            1,000              990           -1,011              -10
                                                                    ------------------------------------------------------------------------------------
      Subtotal.....................................................          15,674           14,658           14,526           -1,148             -132

Council of Economic Advisers.......................................           4,192            4,403            4,192   ...............            -211
National Security Counciland Homeland Security Council.............          13,048           13,074           13,048   ...............             -26
Office of Administration...........................................         115,049          115,848          114,908             -141             -940
                                                                    ------------------------------------------------------------------------------------
      Total, The White House.......................................         206,848          206,807          204,975           -1,873           -1,832

Office of Management and Budget....................................          91,750           91,660           90,833             -917             -827
Government-wide management Councils................................         (17,000)         (20,000)         (17,000)  ...............         (-3,000)

               Office of National Drug Control Policy

Salaries and expenses..............................................          27,084           23,413           26,125             -959           +2,712
    Rescission.....................................................  ...............         -11,328          -11,328          -11,328   ...............
High intensity drug trafficking areas program......................         238,522          200,000          238,522   ...............         +38,522
Other Federal drug control programs................................         140,618          143,600          105,950          -34,668          -37,650
                                                                    ------------------------------------------------------------------------------------
      Total, Office of National Drug Control Policy................         406,224          355,685          359,269          -46,955           +3,584

Unanticipated needs................................................             998            1,000              988              -10              -12
Partnership fund for program integrity innovation..................  ...............          20,000   ...............  ...............         -20,000
    Rescission.....................................................          -5,000   ...............  ...............          +5,000   ...............

Integrated, efficient and effective uses of information technology.  ...............          60,000   ...............  ...............         -60,000

Special Assistance to the President and Official Residence of the
 Vice President:
    Salaries and expenses..........................................           4,549            4,328            4,328             -221   ...............
    Operating expenses.............................................             326              307              307              -19   ...............
                                                                    ------------------------------------------------------------------------------------
      Subtotal.....................................................           4,875            4,635            4,635             -240   ...............
                                                                    ====================================================================================

      Total, title II, Executive Office of the President and Funds          705,695          739,787          660,700          -44,995          -79,087
       Appropriated to the President...............................
          (Mandatory)..............................................            (450)            (450)            (450)  ...............  ...............
          (Discretionary)..........................................        (705,245)        (739,337)        (660,250)        (-44,995)        (-79,087)
                                                                    ====================================================================================

                      TITLE III--THE JUDICIARY

                 Supreme Court of the United States

Salaries and expenses:
    Salaries of justices...........................................           2,197            2,197            2,197   ...............  ...............
    Other salaries and expenses....................................          71,724           73,354           72,622             +898             -732
                                                                    ------------------------------------------------------------------------------------
      Subtotal.....................................................          73,921           75,551           74,819             +898             -732

Care of the building and grounds...................................           8,159            8,504            8,159   ...............            -345
                                                                    ------------------------------------------------------------------------------------
      Total, Supreme Court of the United States....................          82,080           84,055           82,978             +898           -1,077

       United States Court of Appeals for the Federal Circuit

Salaries and expenses:
    Salaries of judges.............................................           2,502            2,513            2,513              +11   ...............
    Other salaries and expenses....................................          30,009           32,626           29,400             -609           -3,226
                                                                    ------------------------------------------------------------------------------------
      Total, United States Court of Appeals for the Federal Circuit          32,511           35,139           31,913             -598           -3,226

             United States Court of International Trade

Salaries and expenses:
    Salaries of judges.............................................           1,851            1,718            1,718             -133   ...............
    Other salaries and expenses....................................          19,596           21,173           19,250             -346           -1,923
                                                                    ------------------------------------------------------------------------------------
      Total, U.S. Court of International Trade.....................          21,447           22,891           20,968             -479           -1,923

  Courts of Appeals, District Courts, and Other Judicial Services

Salaries and expenses:
    Salaries of judges and bankruptcy judges.......................         332,565          327,707          327,707           -4,858   ...............
    Other salaries and expenses....................................       4,671,656        4,908,459        4,642,939          -28,717         -265,520
                                                                    ------------------------------------------------------------------------------------
      Subtotal.....................................................       5,004,221        5,236,166        4,970,646          -33,575         -265,520

Vaccine Injury Compensation Trust Fund.............................           4,775            5,011            4,775   ...............            -236
Defender services..................................................       1,025,693        1,098,745        1,034,182           +8,489          -64,563
Fees of jurors and commissioners...................................          52,305           59,727           59,000           +6,695             -727
Court security.....................................................         466,672          513,058          500,000          +33,328          -13,058
                                                                    ------------------------------------------------------------------------------------
      Total, Courts of Appeals, District Courts, and Other Judicial       6,553,666        6,912,707        6,568,603          +14,937         -344,104
       Services....................................................

         Administrative Office of the United States Courts

Salaries and expenses..............................................          82,909           88,455           82,000             -909           -6,455

                      Federal Judicial Center

Salaries and expenses..............................................          27,273           29,029           27,000             -273           -2,029

                     Judicial Retirement Funds

Payment to judiciary trust funds...................................          90,361          103,768          103,768          +13,407   ...............
    Sec. 628.......................................................  ...............  ...............  ...............  ...............  ...............

                United States Sentencing Commission

Salaries and expenses..............................................          16,803           17,906           16,500             -303           -1,406
    Rescission.....................................................  ...............  ...............  ...............  ...............  ...............
                                                                    ====================================================================================
      Total, title III, the Judiciary..............................       6,907,050        7,293,950        6,933,730          +26,680         -360,220
          (Mandatory)..............................................        (429,476)        (437,903)        (437,903)         (+8,427)  ...............
          (Discretionary)..........................................      (6,477,574)      (6,856,047)      (6,495,827)        (+18,253)       (-360,220)
                                                                    ====================================================================================

                   TITLE IV--DISTRICT OF COLUMBIA

                           FEDERAL FUNDS

Federal payment for resident tuition support.......................          35,030           35,100           30,000           -5,030           -5,100
Federal payment for emergency planning and security costs in the             14,970           14,900           14,900              -70   ...............
 District of Columbia..............................................
Federal payment to the District of Columbia Courts.................         242,933          229,068          230,319          -12,614           +1,251
Federal payment for defender services in the in District of                  54,890           55,000           55,000             +110   ...............
 Columbia Courts...................................................
Federal payment to the Court Services and Offender Supervision              211,983          216,846          212,983           +1,000           -3,863
 Agency for the District of Columbia...............................
Federal payment to the District of Columbia Public Defender Service          37,241           41,486           37,241   ...............          -4,245
Federal payment to the District of Columbia Water and Sewer                  11,476           25,000           15,000           +3,524          -10,000
 Authority.........................................................
Federal payment to the Criminal Justice Coordinating Council.......           1,796            1,800            1,800               +4   ...............
Federal payment for judicial commissions...........................             499              500              500               +1   ...............
Federal payment for school improvement.............................          77,545           67,000           60,000          -17,545           -7,000
Federal payment for the D.C. National Guard........................             375            2,000              375   ...............          -1,625
Federal payment for housing for the homeless.......................           9,980   ...............  ...............          -9,980   ...............
Federal payment for redevelopment of the St. Elizabeth's Hospital    ...............          18,000   ...............  ...............         -18,000
 campus............................................................
Federal payment for HIV/AIDS prevention............................  ...............           5,000   ...............  ...............          -5,000
Federal payment for D.C. Commission on the Arts and Humanities       ...............           5,000   ...............  ...............          -5,000
 grants............................................................
                                                                    ====================================================================================

      Total, Title IV, District of Columbia........................         698,718          716,700          658,118          -40,600          -58,582
                                                                    ====================================================================================

                TITLE V--OTHER INDEPENDENT AGENCIES

Administrative Conference of the United States.....................           2,744            3,200            2,900             +156             -300
Christopher Columbus Fellowship Foundation.........................             499   ...............             450              -49             +450

                Civilian Property Realignment Board

Salaries and expenses..............................................  ...............          23,000   ...............  ...............         -23,000
Asset Proceeds and Space Management Fund...........................  ...............          65,000   ...............  ...............         -65,000
                                                                    ------------------------------------------------------------------------------------
      Total, Civilian Property Realignment Board...................  ...............          88,000   ...............  ...............         -88,000

Commodity Futures Trading Commission...............................         202,270          308,000          240,000          +37,730          -68,000
    Financial regulatory reform contingent appropriations..........  ...............  ...............  ...............  ...............  ...............
                                                                    ------------------------------------------------------------------------------------
      Total, Commodity Futures Trading Commission..................         202,270          308,000          240,000          +37,730          -68,000

Consumer Product Safety Commission.................................         114,788          122,000          114,500             -288           -7,500

                   Election Assistance Commission

Salaries and expenses..............................................          16,267           13,716           14,750           -1,517           +1,034
                                                                    ------------------------------------------------------------------------------------

      Total, Election Assistance Commission........................          16,267           13,716           14,750           -1,517           +1,034

                 Federal Communications Commission

Salaries and expenses..............................................         335,794          358,801          354,181          +18,387           -4,620
Offsetting fee collections--current year...........................        -335,794         -358,801         -354,181          -18,387           +4,620
                                                                    ------------------------------------------------------------------------------------
      Direct appropriation.........................................  ...............  ...............  ...............  ...............  ...............

Federal Deposit Insurance Corporation: Office of Inspector General          (42,942)         (45,261)         (45,261)         (+2,319)  ...............
 (by transfer).....................................................
Federal Election Commission........................................          66,367           67,014           66,367   ...............            -647
Federal Labor Relations Authority..................................          24,723           26,440           24,723   ...............          -1,717

                      Federal Trade Commission

Salaries and expenses..............................................         291,363          326,000          311,563          +20,200          -14,437
Offsetting fee collections--current year...........................         -96,000         -108,000         -149,000          -53,000          -41,000
Offsetting fee collections, telephone database.....................         -21,000          -19,000          -21,000   ...............          -2,000
                                                                    ------------------------------------------------------------------------------------
    Direct appropriation...........................................         174,363          199,000          141,563          -32,800          -57,437

                  General Services Administration

                       Federal Buildings Fund

Limitations on availability of revenue:
    Construction and acquisition of facilities.....................          82,000          839,642           65,000          -17,000         -774,642
    Repairs and alterations........................................         280,000          868,902          280,000   ...............        -588,902
    Installment acquisition payments...............................         135,540          126,801          126,801           -8,739   ...............
    Rental of space................................................       4,830,000        5,285,198        5,285,198         +455,198   ...............
    Building operations............................................       2,270,000        2,387,968        2,387,968         +117,968   ...............
                                                                    ------------------------------------------------------------------------------------
      Subtotal, Limitations on availability of revenue.............       7,597,540        9,508,511        8,144,967         +547,427       -1,363,544

Repayment of debt..................................................          71,270           80,000           80,000           +8,730   ...............
Rental income to fund..............................................      -8,871,000       -9,303,000       -9,303,000         -432,000   ...............
Rescission.........................................................         -25,000   ...............  ...............         +25,000   ...............
                                                                    ------------------------------------------------------------------------------------
      Total, Federal Buildings Fund................................      -1,227,190          285,511       -1,078,033         +149,157       -1,363,544

Government-wide policy.............................................          66,488          105,140           61,750           -4,738          -43,390
Operating expenses.................................................          69,882           70,022           70,000             +118              -22
Office of Inspector General........................................          58,882           62,358           58,000             -882           -4,358
Electronic Government Fund.........................................           7,984           34,000   ...............          -7,984          -34,000
Sources of information and engagement for citizens.................  ...............  ...............          39,084          +39,084          +39,084
Allowances and Office Staff for Former Presidents..................           3,792            3,671            3,671             -121   ...............
Federal acquisition workforce initiatives fund.....................  ...............          16,900   ...............  ...............         -16,900
Federal Citizen Information Center Fund............................          34,116           39,933   ...............         -34,116          -39,933
Policy and operations (rescission).................................  ...............  ...............          -4,600           -4,600           -4,600
                                                                    ------------------------------------------------------------------------------------
      Total, General Services Administration.......................        -986,046          617,535         -850,128         +135,918       -1,467,663

Harry S Truman Scholarship Foundation..............................             748   ...............             700              -48             +700

                   Merit Systems Protection Board

Salaries and expenses..............................................          40,258           42,116           40,258   ...............          -1,858
Limitation on administrative expenses..............................           2,574            2,345            2,345             -229   ...............
                                                                    ------------------------------------------------------------------------------------
      Total, Merit Systems Protection Board........................          42,832           44,461           42,603             -229           -1,858

          Morris K. Udall and Stewart L. Udall Foundation

Morris K. Udall and Stewart L. Udall Trust Fund....................           2,495            2,200            2,200             -295   ...............
Environmental Dispute Resolution Fund..............................           3,792            3,800            3,792   ...............              -8
Morris K Udall and Stewart L. Udall Foundation.....................  ...............  ...............  ...............  ...............  ...............
                                                                    ------------------------------------------------------------------------------------
      Total, Morris K. Udall and Stewart L. Udall Foundation.......           6,287            6,000            5,992             -295               -8

            National Archives and Records Administration

Operating expenses.................................................         339,090          403,742          378,845          +39,755          -24,897
    Reduction of debt..............................................         -14,000          -15,000          -15,000           -1,000   ...............
                                                                    ------------------------------------------------------------------------------------
      Subtotal.....................................................         325,090          388,742          363,845          +38,755          -24,897

Office of the Inspector General....................................           4,241            4,100            4,100             -141   ...............
Electronic records archive.........................................          71,856   ...............  ...............         -71,856   ...............
Repairs and restoration............................................          11,824            9,659            9,659           -2,165   ...............
    Rescission.....................................................          -3,198   ...............  ...............          +3,198   ...............

National Historical Publications and Records Commission: Grants               6,986            5,000            5,000           -1,986   ...............
 program...........................................................
                                                                    ------------------------------------------------------------------------------------
      Total, National Archives and Records Admin...................         416,799          407,501          382,604          -34,195          -24,897

                National Credit Union Administration

Central liquidity facility:
    (Limitation on admin expenses, corporate funds)................          (1,250)          (1,250)          (1,250)  ...............  ...............
Community development credit union revolving loan fund.............           1,247            2,000            1,247   ...............            -753

Office of Government Ethics........................................          13,972           13,664           13,664             -308   ...............

                   Office of Personnel Management
Salaries and expenses..............................................          97,774          100,027           97,774   ...............          -2,253
    Limitation on administrative expenses..........................         112,516          132,523          112,516   ...............         -20,007

Office of Inspector General........................................           3,142            3,804            3,142   ...............            -662
    Limitation on administrative expenses..........................          21,174           21,559           21,174   ...............            -385

Govt Payment for Annuitants, Employees Health Benefits.............      10,467,000       10,862,000       10,862,000         +395,000   ...............
Govt Payment for Annuitants, Employee Life Insurance...............          50,000           52,000           52,000           +2,000   ...............
Payment to Civil Svc Retirement and Disability Fund................      10,076,000        9,979,000        9,979,000          -97,000   ...............
Sec. 628...........................................................  ...............  ...............  ...............  ...............  ...............
                                                                    ------------------------------------------------------------------------------------
      Total, Office of Personnel Management........................      20,827,606       21,150,913       21,127,606         +300,000          -23,307
          Mandatory................................................     (20,593,000)     (20,893,000)     (20,893,000)       (+300,000)  ...............
          Discretionary............................................        (234,606)        (257,913)        (234,606)  ...............        (-23,307)

Office of Special Counsel..........................................          18,458           19,486           18,972             +514             -514
Postal Regulatory Commission.......................................          14,304           14,450           14,304   ...............            -146
Privacy and Civil Liberties Oversight Board........................             998            1,683            1,000               +2             -683
    Rescission.....................................................          -1,500   ...............            -998             +502             -998
Recovery and Accountability Transparency Board.....................  ...............          31,543           28,400          +28,400           -3,143
Securities and Exchange Commission.................................       1,185,000        1,407,483        1,407,483         +222,483   ...............
Selective Service System...........................................          24,226           24,500           23,984             -242             -516

                   Small Business Administration

Salaries and expenses..............................................         432,571          427,296          404,202          -28,369          -23,094
Office of Inspector General........................................          16,267           18,400           16,267   ...............          -2,133
Office of Advocacy.................................................  ...............           9,120            9,120           +9,120   ...............

Business Loans Program Account:
    Direct loans subsidy...........................................           2,994            3,765            3,678             +684              -87
    Guaranteed loans subsidy.......................................          79,840          211,600          206,862         +127,022           -4,738
    Administrative expenses........................................         152,694          147,958          147,958           -4,736   ...............
                                                                    ------------------------------------------------------------------------------------
      Total, Business loans program account........................         235,528          363,323          358,498         +122,970           -4,825

Disaster Loans Program Account:
    Administrative expenses........................................          45,372          167,300   ...............         -45,372         -167,300
    Disaster relief category.......................................  ...............  ...............         167,300         +167,300         +167,300
                                                                    ------------------------------------------------------------------------------------
      Total, Small Business Administration.........................         729,738          985,439          955,387         +225,649          -30,052

                    United States Postal Service

Payment to the Postal Service Fund.................................          11,776   ...............  ...............         -11,776   ...............
    Advance appropriations.........................................          74,905           78,153           78,153           +3,248   ...............
                                                                    ------------------------------------------------------------------------------------
      Total, Payment to the Postal Service Fund....................          86,681           78,153           78,153           -8,528   ...............

Office of Inspector General........................................         243,908          244,397          241,468           -2,440           -2,929
                                                                    ------------------------------------------------------------------------------------
      Total, United States Postal Service..........................         330,589          322,550          319,621          -10,968           -2,929

United States Tax Court............................................          51,989           59,996           51,469             -520           -8,527
                                                                    ====================================================================================
      Total, title V, Independent Agencies.........................      23,279,268       25,936,574       24,149,163         +869,895       -1,787,411
          Appropriations...........................................     (23,234,061)     (25,858,421)     (23,909,308)       (+675,247)     (-1,949,113)
          Rescissions..............................................        (-29,698)  ...............         (-5,598)        (+24,100)         (-5,598)
          Disaster relief category.................................  ...............  ...............        (167,300)       (+167,300)       (+167,300)
          Advances.................................................         (74,905)         (78,153)         (78,153)         (+3,248)  ...............
          (by transfer)............................................         (42,942)         (45,261)         (45,261)         (+2,319)  ...............
      (Mandatory)..................................................     (20,593,000)     (20,893,000)     (20,893,000)       (+300,000)  ...............
      (Discretionary)..............................................      (2,686,268)      (5,043,574)      (3,256,163)       (+569,895)     (-1,787,411)
                                                                    ====================================================================================

                    TITLE VI--GENERAL PROVISIONS
Mandatory appropriations (Sec. 628)................................  ...............  ...............  ...............  ...............  ...............

Grand total........................................................      44,688,058       48,726,741       44,640,384          -47,674       -4,086,357
    Appropriations.................................................     (45,047,851)     (49,259,916)     (45,161,857)       (+114,006)     (-4,098,059)
    Rescissions....................................................       (-434,698)       (-611,328)       (-766,926)       (-332,228)       (-155,598)
    Disaster relief category.......................................  ...............  ...............        (167,300)       (+167,300)       (+167,300)
    Advances.......................................................         (74,905)         (78,153)         (78,153)         (+3,248)  ...............
    (by transfer)..................................................         (42,942)         (45,261)         (45,261)         (+2,319)  ...............
--------------------------------------------------------------------------------------------------------------------------------------------------------



